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Video 1 KTLA Channel 5 News Story June 18, 2010: Lake Forest Medical Marijuana Dispensary Appealing Injunction Order Video 2 KTTV Channel 11 News Story June 4, 2010: Los Angeles Medical Marijuana Dispensary Challenges LA's Ordinance Video 3 Cannabis Law Group's Attorney Damian Nassiri Sues the City of Los Angeles To Block It's Ban on Medical Marijuana as Featured on PBS's So Cal Insider - Part 1

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Lawmakers in California are exploring ways to ease the financial pressure many pot companies are under, with many saying lowering taxes on cannabis products being one of the best ways to facilitate real competition against the black market. Our Los Angeles marijuana lawyers know this has resulted in serious struggle for some shops in the last year since recreational marijuana hit the market. The AP reports a number of marijuana industry-backing state legislators have proposed a measure that would cut taxes for these firms and offer a much-needed jump-start needed to get back in the game.Los Angeles marijuana lawyer

Assembly Bill 286 proposes to:

  • Temporarily lower from 15 percent to 11 percent the tax legal buyers pay when they purchase from a California dispensary
  • Ax the nearly $150 tax applied per pound on farmers – at least for the next three years.

Analysts say sales of legal marijuana in the last year from $3 billion in 2017 to $2.5 billion in 2018. This is of huge concern because in 2017, the only kind of marijuana available for purchase was medicinal. Recreational marijuana wasn’t available for retail until Jan. 1, 2018.

Legislators opined the high taxes were hurting the companies that are trying to follow the law by creative cash incentive for consumers to seek black market retailers. This was the incentive for the Temporary Cannabis Tax Reduction bill.  Continue reading

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The California marijuana industry and those who advocate on its behalf have fought tooth and nail for every inch of its legitimacy. Now, our Los Angeles marijuana lawyers know we may be facing the biggest hurdle yet: Getting legal buyers in the door. Los Angeles marijuana lawyer

The New York Times recently reported anticipated tax revenue drawn in by the California legal pot market were disappointing. Although the industry generated more than $2.5 billion last year, the state still overshot its anticipated take by more than $100 million. Even worse – that figure was half a billion less than sales in 2017 – when recreational marijuana wasn’t even legal in California yet.

It’s not that pot shops don’t want to pay the piper. The problem is that at rates that high ($150 per pound on cultivators and 15 percent by recreational retail buyers) it creates incentive for consumers to buy their buds from elsewhere. It also doesn’t help that the regulatory requirements laid out by the Bureau of Cannabis Control require extensive testing of products, which also costs a pretty penny. This two combined are taking a financial toll that has meant that buyers of recreational marijuana are paying significantly more for legal cannabis – and most would rather not if there is an alternative.  Continue reading

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A lawsuit by the California Growers’ Association over the stacking of licenses by small-scale cannabis farmers to allegedly create large-scale grow sites, thereby subverting the intent of Prop 64, will be dismissed. Although neither the association, nor the California Department of Food and Agriculture (case defendant) have commented publicly on the motive for moving for dismissal, a couple of the growers who were the subject of litigation, having some 200 licenses each, say California is big enough to support small and large operations alike. Smaller growers, they say, can carve a cult-like following by capitalizing on the artisanal. Commercial production for things like medical-grade CBD and related products, however, can’t be produced practically for a profit by small-scale operations, they said.growoperations-300x169

As our Los Angeles marijuana attorneys can explain, the state’s Department of Food and Agriculture published its final rules for awarding marijuana grow licenses per Proposition 64, with licenses granted according to the size of the farm.

Licenses for “medium-sized” cannabis farms would allow one person or entity a maximum 1 acre outside or 22,000 square feet indoors. “Large” marijuana grow farms (larger than 1 outdoor acre or 22,000 feet of indoor space) aren’t being awarded until 2023, the idea being smaller, mom-and-pop grow operations will get a head start before the large agricultural companies can come storming in. There was, however, no designated license for “small” farms, at least initially. Continue reading

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A final rule from the California Bureau of Cannabis Control went into effect this month permitting delivery of cannabis anywhere in the state – even in cities where cannabis has banned. It was no secret the California League of Cities was majorly opposed to this, and last summer submitted an open letter to the cannabis control regulation office arguing the regulation – Section 5416(d) – undermined the ability of local agencies to set their own community standards. The BCC moved forward with the proposed rule anyway, and now our L.A. marijuana delivery attorneys are monitoring the situation, as cities appear poised to duke it out in court.

Meanwhile, amid a spate of arrests by the California State Highway Patrol of marijuana delivery drivers and seizure of their cannabis company goods, the California Office of Administrative Law issued a ruling last week issued a ruling clarifying how marijuana distributors should move about the state. This new rule affirmed the BCC’s regulation indicating these operators can deliver to any jurisdiction, provided the delivery is conducted in compliance with all the BCC’s delivery provisions in place at the time. L.a. marijuana delivery lawyer

It’s been over one year since California opened the largest U.S. retail market for recreational marijuana. Nobody disputes that limited personal possession and private use of the drug is legal almost anywhere (with some restrictions allowable for federal buildings and property, landlords and private property owners). However, the restriction of cannabis sales is within the purview of local communities, per Prop 64 (the measure voters approved in legalizing recreational use marijuana). The question is where deliveries fall in all of this because while it does equate to distribution, actual sales occur elsewhere.

And of of course, as our L.A. marijuana delivery attorneys know, rules for marijuana delivery are likely to be hard-fought as well.

Continue reading

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Standalone CBD shops – those selling oils or other products made solely from cannabidiol (a chemical compound found in the cannabis plant that does not contain the psychoactive elements of THC) – are not expansive in California, but they have gained footing in some cities that have otherwise banned full marijuana dispensaries. They are also proving popular options in states where the drug itself may not yet be legal, particularly in light of the recent passage of the federal Farm Bill, which included provisions that legalized hemp, from which CBD oil can be obtained. L.A. CBD business attorney

Los Angeles CBD shop attorneys understand that while these little stores are outnumbered by the full-service cannabis dispensaries in the city hundreds-to-one, these store owners say they were drawn to the business primarily for the health benefits and variety of products (salves, tinctures, creams, edibles, soft gels, tinctures and more), but also for the reduced legal risk and ease in securing insurance and funding. One in L.A., for instance, sells only hemp-made CBD oil expressly for this purpose Shops that sell only CBD aren’t required to have the pricey licensing, as is required by legal cannabis dispensaries in California.

Such stores have also opened in Missouri, Texas, Kansas, Arkansas, North Carolina, Minnesota, Louisiana, Florida, Georgia, Mississippi and Ohio. What the Farm Bill, signed in December by the president, did was remove hemp from the list of controlled substances, allowing states to freely allow permanent cultivation programs, and farmers can be eligible for crop insurance and grants.  Continue reading

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Let’s talk pot shop. As long-time L.A. marijuana lawyers, we’ve seen the industry in California morph from its early days as the first state in the U.S. to legalize medical marijuana in the 1990s to joining a growing number of cannabis companies celebrating legal recreational use of the drug, officially allowable after Jan. 1, 2018. However, the passage of this measure did not open the market floodgates. In fact, certain rules are fairly strict and you must be mindful of them when in public, engaging in business with marijuana companies and especially if starting one yourself. L.A. marijuana lawyers

For those who may be new to California, just landed a job here, have an upcoming visit or perhaps are just now interested in testing the THC waters, here are the main things you need to know.  Continue reading

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A rose by another name might smell as sweet, but turns out the name of your bong does matter, and allegations of brand heisting are turning into a big buzzkill. Companies from California to Florida have found themselves named defendants in trademark lawsuits, filed by a luxury brand German water pipe manufacturer and its licensed U.S. seller. The firms allege that their products – which can go for thousands of dollars – have become verified smoker status symbols, the benchmark for cannabis cool – and that it’s being illegally hawked by head shops across the country. L.A. marijuana trademark lawyers understand that at the the heart of these dozens of claims just in California over the pricey pipes are the ways in which the alleged infringement cost the company sales and and diluted its brand.marijuana trademark attorney

What complicates cases like this is that for now, marijuana remains illegal under federal law – specifically 21 U.S. Code Section 863. The company, which does possess a legitimate trademark, officially refers to its product as a bong, proudly advertises its awards from publications like High Times magazine and is open about its commitment to excellence in cannabis consumer goods and advocating for the expansion of marijuana legalization laws. The reason that  is problematic is that products in violation of federal law cannot seek trademark protection, and many companies are reticent to go into a courtroom and testify that their primary product violates federal statute. However, the firm has managed some success in securing settlements from alleged counterfeit distributors.

Further, a company spokesman was quoted by The Associated Press as saying the firm is willing to go to court to defend these cases, and is seeking millions of dollars in damages.

Continue reading

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It’s not only pot smokers who line outside California’s cannabis dispensaries. Personal injury attorneys may be lurking nearby as well, watching for the opportunity to pounce on a possible product liability claim if an marijuana product makes someone sick or results in an injury. This is particularly true because many states allow punitive damages (up to three times one’s actual damages, intended to penalize the defendant for egregious wrongs rather than simply compensate the plaintiff) for injuries an intoxicated person causes to others. product;iability

Marijuana product liability attorneys in Los Angeles have concluded cannabis companies with perhaps the greatest vulnerability are those that produce edible products. Soda, gummies, truffles, cookies, truffles, brownies, potato chips, wines – the list is endless. But the waters of marijuana product liability lawsuits aren’t well-tested.

Such lawsuits will assert that marijuana products are defective, dangerous, mislabeled and/or the makers and distributors failed to issue adequate warnings about these risks. Continue reading

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A federal lawsuit against the U.S. Drug Enforcement Administration and the U.S. Department of Justice, challenging the constitutionality of the federal law designating marijuana a Schedule I controlled substance proceeded recently to the next level with oral arguments before the U.S. Court of Appeals for the Second Circuit. As our Los Angeles marijuana patient attorneys can explain, the crux of the argument by plaintiffs of the claim, first filed in 2017, is that the designation ignores the merits of the drug for medicinal purposes. The appeal was heard last month by the three-judge panel. Los Angeles cannabis lawyer

Plaintiffs in the lawsuit include a 12-year-old epilepsy patient, an 8-year-old Leigh’s syndrome patient, an Iraq war veteran and sufferer of post-traumatic stress disorder, a former NFL player who heads a hemp company hawking sports performance products and a non-profit that helps minorities get ahead in the legal cannabis market. Defendants are acting-Attorney General Matthew Whitaker, the acting director of the DEA and the federal government.

The appeal, limited to presentations of just a few minutes per side, rests on a dispute of the assertion that the Controlled Substances Act violates the 5th Amendment, which guarantees the right of citizens to preserve life and health.  Continue reading

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As marijuana legalization continues throughout North America, there is still significant public and private interest resistance to its proliferation. One of the legal ground on which these cases have been tested throughout the country is a federal law known as the Racketeer Influenced and Corrupt Organizations Act of 1970, also known as RICO. As our Los Angeles marijuana defense lawyers can explain, this was a law intended to battle organized crime and the mafia. However, it’s been used in several recent federal cases to intervene with legal marijuana businesses and users – one of the most recent in Petaluma, California, marking what is believed to be the first time this legal argument has been used against marijuana businesses in the state. marijuana RICO attorney

But in that case, as in many of the cannabis company RICO civil lawsuits pursued nationally, a federal judge has ruled against the plaintiffs.

According to The Argus Courier, a U.S. District Judge held that neighbors of a cannabis company and its lead grower can’t be sued under RICO anti-corruption laws because nuisances related to noise and bad smells don’t cause the same kind of tangible financial losses intended to be addressed under RICO. Continue reading

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