Cannabis Law Group's Medical Marijuana Legal Blog

August 7, 2019

Twitter, Snapchat Ads Can Land California Sativa Sellers in Hot Water

Navigating the rules of advertising isn’t easy for California marijuana businesses, and some have turned to more fleeting mediums like Twitter and Snapchat – presuming there is considerably less risk. Los Angeles marijuana advertising lawyers know that while it’s certainly possible to post your pot shop posters in these mediums, it’s not without potential liability. cannabis company advertising

Federal and state regulations on marijuana advertising are murky – and there can be possible repercussions both for cannabis corporations and publishers of that material. Social media giants aren’t likely to open themselves up to federal or state regulatory action if they can avoid it, especially when they can do just fine without the income.

Specific legal strategies should be formulated in close coordination with your cannabis company attorney (and if you don’t already have one, in this industry, you should get one). Generally speaking though, there are a few ways you can capitalize on social media marketing – if you’re careful. This is especially true considering these platforms are evolving to require more “pay-to-play” advertising, rather than putting as much emphasis on organic likes or hits. Continue reading

August 5, 2019

Growing Pains for California’s Weed Tracking System

By Cannabis Law Group

In January, the state of California kicked off an online rollout of its marijuana inventory tracking system. At a glance, marijuana businesses across the Golden State appear to be successfully reporting product inventory each day, via the California Cannabis Track-and-Trace (CCTT) system. But not without some growing pains.

To start, the idea of tracking marijuana traveling throughout the supply chain sounds simple enough. In theory, all cannabis products would be given unique identification numbers, noting from which ‘batch’ or ‘lot’ they were born. Products would then be sent to labs for testing. Next, approved products would be passed from producer to distributor, and finally to retailers for sale. At each step, the state should be able to track each piece of marijuana as it moves through the chain, making sure nothing is being redirected out of state, and ensuring everybody is paying their required taxes.

California Cannabis Lawyers

But in practice, a few hiccups quickly come to light. First up, only businesses holding ‘provisional’ or ‘annual’ licenses are required to subscribe to the track-and-trace system. And until last month, there were more than 600 marijuana businesses operating on ‘temporary licenses,’ who would not have had to track-and-trace. This means, there was no way regulators could comprehensively account for every legal product moving about the state.

August 5, 2019

Report: $30 Million Seized From Accused Black Market Cannabis Companies

By Cannabis Law Group

Raids on black market marijuana dealers have become increasingly more frequent. However, many say it’s not enough to have a measurable impact on the scourge. cannabis lawyer

Over the past year, authorities in California have tripled the number of raids on unlicensed marijuana shops, according to the Bureau of Cannabis Control. In the last year, the BCC has targeted unlicensed, black market growers throughout the state by:

Working with local sheriff’s agencies and police departments to serve half a dozen search warrants over the course of a year, yielding some 1,600 pounds of marijuana valued at nearly $14 million.
Using its own agents to serve 20 search warrants on unlicensed marijuana sellers, confiscating more than 2,500 pounds of the cannabis products valued at nearly $17 million.
Seizing more than $200,000 in cash from illegal stores.

Los Angeles cannabis business attorneys have noted too that the governor just approved a maximum daily fine of $30,000 for growers, distributors and sellers who are not properly licensed. And while authorities work to get a handle on the problem, many say even with bolstered enforcement, it isn’t enough – despite the fact that this is exactly the sort of thing that Proposition 64 was passed in 2016 to prevent. Continue reading

August 3, 2019

California Cannabis Growers at Pains as License Renewals Drag

By Cannabis Law Group

California marijuana farmers are facing a crisis. Currently, all 9,464 state issued temporary cannabis cultivation licenses, have expired. Meant to be replacing those, for businesses continuing to meet the required regulations, are either provisional or permanent annual cannabis business licenses.

The catch though, the California Department of Food and Agriculture (CDFA) is yet to show its ability to approve those provisional or permanent licenses, at the same pace applications are being lodged.

California Cannabis License Attorney

The backlog on approvals may be due to the complexity of the licensing application process itself. Tellingly, by mid July 2019, only 2,053 provisional licenses and 230 permanent licenses had been granted. As it stands, when applying for prospective licenses, cannabis farmers are expected to demonstrate compliance with the stringent California Environmental Quality Act (CEQA), as well as submit:

Background checks;
Surety bonds;
Real property documents;
Detailed site plans;
Farm management practices;
Waste management protocols;
Security procedures; and
Pesticide measures.

August 1, 2019

California Marijuana Industry Bracing for Potential DoJ Crackdown

By Cannabis Law Group

The California Department of Justice recently released a summary review of the state’s marijuana laws, leaving cannabis industry insiders are anticipating a crackdown on the black market. cannabis regulations

Attorney General Xavier Becerra’s 16-page document is being referred to as California’s Marijuana Bible summarizes state laws and draws clearer lines as to what is legal – and what’s not – when it comes to medical cannabis. The guidelines are especially focused on the growth, enforcement, transportation and use of medicinal marijuana, and they come after significant changes in the state’s laws pertaining to recreational cannabis.

The record scans through two decades of state law, regulations and guidelines of the growth, sale and transport of medicinal marijuana. Although the Attorney General’s Office referred to it as a reflection on the evolution of the state’s laws, many cannabis lawyers and others see it as a warning shot to unlicensed marijuana operations. Continue reading

July 31, 2019

California Clamps Down on Black Market Pot Operations

By Cannabis Law Group

As the black market for pot sales shows little sign of slowing, Californian authorities have notably increased enforcement action against illegal cannabis traders. Over the last 12 months, raids by law enforcement on black market pot businesses have increased threefold, when compared with similar activity conducted in the year prior. As a result, unlicensed pot growers and sellers have seen a total of $30 million worth of cannabis products seized. But even amid this additional ramp up, cannabis industry insiders say even more activity is needed to curb illegal pot sales across the Golden State.

For context, in 2018 local law enforcement worked in conjunction with the state Bureau of Cannabis Control, and together they served six unlicensed cannabis businesses with search warrants. These raids resulted in the seizure of more than 1,500 pounds of marijuana, said to carry a street value of $13.5 million.

Calilfornia Cannabis Business Licensing Lawyers

Comparatively, according to data release in July, within the first half of 2019 alone, the bureau had already served 19 search warrants to unlicensed sellers. Those raids were successful, and saw more than $16.5 million worth, or about 2,500 pounds of illicit marijuana, confiscated. Just shy of $220,000 cash was also seized from cannabis businesses operating illegally during this time.

July 29, 2019

Investment Interest in California CBD Companies is Rising

By Cannabis Law Group

California cannabidiol (CBD) products are on the map, and investors are taking notice. But given that CBD-infused products are still relatively new to market, regulators continue to closely review the category. For this reason, acquisition strategies may be a ways off yet, but industry insiders predict consumer companies will see high minority investment interest in the short term.

CBD is naturally found in cannabis plants, and is widely known for its relaxing properties. But CBD won’t produce a ‘high,’ as it lacks the psychoactive tetrohydrocanabidiol (THC), found in marijuana. CBD-derived products have quickly grown in popularity, thanks largely to a wide range of potential health benefits, including relieving pain, anxiety, seizures and brain injuries.

California Cannabis Investors

According to Michael Lux, partner at Crowe accounting firm, the next 6-12 months will involve strategic minority investments in the CBD space. He noted too that while the majority of CBD companies are of interest to investors, they are still less than five years old, so they’d likely need a little more time before preparing to engage in full exit strategies.

July 27, 2019

California City’s Marijuana Delivery Rule Sparks Lawsuit by Cannabis Co.

By Cannabis Law Group

A California city is facing litigation brought by a cannabis company claiming the rule barring deliveries from out-of-county retailers into unincorporated areas violates state statute. marijuana delivery

In East of Eden Cannabis Co. v. Santa Cruz County, filed in the local Superior Court, the Salinas-based firm is fighting for the right to be allowed to deliver to these regions. Los Angeles cannabis attorneys know that precedence set in this case could potentially impact how other courts decide similar cases in the future.

In particular what is interesting about this case is not so much the substance of the complaint, but the fact that it echoes a familiar refrain echoed following the passage of Prop. 64, which gave local governments broad discretion in regulating marijuana growth, sales and distribution in their jurisdictions. This has led to a patchwork of laws that can be as confusing as they are frustrating.

What is allowable in county or city may not be in those neighboring. The onus is on the company or individual to know what the rules are – which is why consulting with an attorney in the course of your business planning is imperative.

July 27, 2019

Teen Marijuana Use is Troubling, Experts Say

By Cannabis Law Group

As a growing number of states follow California’s leap and legalize marijuana, new research shows cannabis use among U.S. teens is more widespread now than it was just a generation ago.

A study published in the June 20 issue of American Journal of Public Health, looked at U.S. federal health data for more than 200,000 high school students between 1991-2017. The results show marijuana use among teens within that time frame, has increased tenfold.

LA Cannabis Attorney

Study author, Hongying Dai, of University of Nebraska’s College of Public Health in Omaha, noted the “surge” in teens using marijuana is troubling, and “highlights the importance of marijuana prevention among youths.”

To date, a plethora of studies have investigated the long-term effects of marijuana use in teens. Concern often centers around effects of the drug on the prefrontal cortex areas of the brain, which control judgment and decision-making, and continue to develop well into a person’s early 20’s. Marijuana use in such studies, has also been linked to an increased incidence of mental health disorders, including depression, psychosis and other long-term psychiatric effects.
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July 25, 2019

Los Angeles Marijuana Industry at Boiling Point

By Cannabis Law Group

cannabis defense lawyers Ever since cannabis was legalized in California in January 2018, a flood of marijuana businesses have opened, hoping to take their share of the pot market. But it’s no secret that many industry stakeholders are unhappy with the current state of affairs.

Today there are 182 licensed marijuana dispensaries operating throughout Los Angeles, and many of those business have paid well into the tens of thousands of dollars to operate legally. First by registering their companies and covering licensing fees, then paying city taxes and continually meeting strict safety standards imposed by the state.

Meanwhile, there are countless other outfits operating slightly more under the radar. They are able to skip paying licensing fees and, as predominantly cash run businesses, also avoid paying taxes. To the frustration of legal business owners, rouge pot shops attract a slew of customers with undercut pot prices, prices that legal outfits have a hard time matching given their higher operating costs.

While regulation of cannabis use and sale continues to undergo assessment and tweaking in the state of California, many licensed cannabis business owners have reached boiling point. The biggest reason, illegal pot shops continuing to operate comfortably, with little pressure from state authorities requiring them to toe the line.
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