Cannabis Law Group's Medical Marijuana Legal Blog

September 26, 2018

Budding Minority-Owned California Cannabis Businesses Get a Boost

A new California law signed by Gov. Jerry Brown eases the way for those impacted hardest by the failed “War on Drugs” to launch a budding marijuana business. Senate Bill 1294 aims to counteract the disproportionate impact of the misguided drug ware on minority communities, allowing local jurisdictions in California to apply for a grant from the state’s Bureau of Cannabis Control to aid entrepreneurs who are also minorities in a number of ways, including providing financial support via waiver of license fees, providing technical assistance and more (with $10 million allocated to provide this support). cannabis business

The new law, supporters said, will directly go to helping those who have been more profoundly impacted by the criminalization of marijuana.

The California Cannabis Equity Act was sponsored by the Drug Policy Alliance, noting that cities that have local marijuana equity programs (Los Angeles, Oakland, San Francisco and Sacramento) will have access to the grant funds. Some opponents of this law argued prior to passage that giving marijuana growers a license and access to grants despite a prior marijuana conviction, something even some proponents of legal marijuana argue harms legitimate businesses because some would-be cannabis business owners got their prior convictions growing marijuana unlawfully on land that wasn’t designated for it, thereby harming the environment. Continue reading

September 25, 2018

Marijuana Business Breakup Heads to Court

By Cannabis Law Group

As the marijuana industry becomes more mainstream, our L.A. cannabis business lawyers are seeing many of these companies facing down similar legal challenges as other traditional companies. These include employment lawsuits, business partnership disputes, injury and premises liability litigation and more. However, many of these cases are even more complicated by the fact that the industry is so highly regulated at the state and local level, and of course the fact that their primary product is technically illegal under the federal Controlled Substances Act. business attorneys

Recently in Oregon, a marijuana business owner filed a lawsuit to ask his nephew and former business partner to halt harassment after the business relationship went downhill in the wake of major crop losses. According to Oregon Live, he is seeking $700,000 in damages. In a separate lawsuit filed by attorneys for the marijuana business itself, plaintiff alleges the nephew and one-time co-owner, of defamation and trademark infringement. The company alleges defendant’s inability to produce a marketable flower with any degree of consistency cost the company several million dollars, and is seeking $2.6 million in compensation.

Plaintiff alleges that the flowers grown under defendant partner’s care were total losses in terms of a shelf-worthy flower, and that this was the result of breach of contract on his part. The company owns and operates a production facility on more than 80 acres in Central Oregon, as well as a retail store in a downtown area. The company seeks to grow with retail locations in three other cities, including Portland, where it has applied for a license. Continue reading

September 23, 2018

Marijuana Business Lawsuits Allege Federal Racketeering

By Cannabis Law Group

Although a federal judge last month dismissed a racketeering lawsuit last month against numerous marijuana businesses, the plaintiff still has grounds to refile on the basis of a private nuisance claim. This matter in Oregon is noteworthy for our Southern California marijuana business lawyers because it’s one of several that take aim at cannabis industries and companies that are sanctioned by the state using a federal law that was passed for the purpose of tanking organized crime (drug cartels in particular). marijuana business attorney L.A.

The Racketeer Influenced and Corruption Organizations Act, commonly referred to as “RICO,” is a U.S. federal law providing criminal penalties as well as a civil cause of action for acts performed as part of an ongoing criminal organization. It was formed to target the mob.

According to one recent report, these lawsuits are part of a wider strategy nationally to “upend legal weed.” In Oregon, some law firms actually focus exclusively on suing marijuana businesses for racketeering under the RICO statute, 18 U.S.C. Chapter 96. As reported by Willamette Week, a single attorney represented a woman who has sued more than 200 businesses, all that had ever been involved with her neighbor, a single marijuana processing plant that squeezes the THC oil from the flower for use in cannabis-infused candies. That lawsuit alleged that every dispensary and grower that had ever done business with the neighbor conspired to commit crimes that damaged the value of plaintiff’s home. That crime was growing a product deemed illegal by federal law, specifically the Controlled Substances Act. Continue reading

September 20, 2018

Marijuana Lawyers Seek Reversal of Arizona Cannabis Conviction

By Cannabis Law Group

Arizona marijuana attorneys are asking the state supreme court to side with their argument that the state’s medical marijuana law makes no distinction between cannabis edibles, liquids, dried flowers or leaves. The appeal follows a decision by the Arizona Court of Appeals, which upheld the marijuana possession conviction of a man found with 0.05 ounces of hashish, for which he was sentenced to 3.5 years in prison (for drug possession and possession of drug paraphernalia). Defendant had obtained the hashish (cannabis plant resin) and jar from a legal dispensary in Maricopa County. criminal defense

The state allows regulated dispensaries to distribute medical edibles and liquids to be sold for medical use. The 2010 Arizona Medical Marijuana Act allowing one to obtain up to 2.5 ounces of marijuana twice a month, something more than 174,000 people qualify. Defendant’s attorneys are arguing that the active medicinal ingredient in the plant is the resin, and that the law doesn’t expressly exclude certain parts of the plant. There is no provision that says only the flower or only the leaves are allowed. The law defines marijuana broadly to include all parts of any plant of the genus cannabis, whether growing or not, and the seeds of such plants.

In State v. Jones, both sides disagreed as to whether hashish was included within the immunities of AMMA. Citing a previous state supreme court case from the late 1970s, the appeals court noted the legislature recognizes marijuana and hashish as two distinct forms of cannabis, and that the differing forms of treatment between marijuana and hashish have to do with its potency and rendering it susceptible to “serious and extensive abuse.” The state’s medical marijuana law makes no mention of hashish one way or another. Continue reading

September 15, 2018

Wild Wild West of Marijuana Businesses Coming to an End

By Cannabis Law Group

A major part of the work our legal team is involved with includes helping marijuana businesses establish themselves cannabis business while remaining in compliance with local and state regulations and laws. What happens, though, when a company is found to be in violation of one of those rules? Many businesses are beginning to find out as authorities ramp up efforts to wrangle illegal, unlicensed, and non-compliant marijuana operations in California. Recently more than 500 people were charged with misdemeanors in Los Angeles for their participation in illegal activity at 105 marijuana businesses in the city.

Those charged could face up to six months in jail and a $1,000 in fines for operating marijuana businesses without a license. The crackdown included not only dispensaries, but also extraction labs, cultivation sites, and delivery services, according to Los Angeles Times. Judges have been hearing cases associated with this series of investigations since May, and arraignments will carry into the end of October. So far, 21 have pleaded no contest or guilty and 11 have been dismissed. Other violations included not following security locations or not following rules regarding the business’s location, such as being too close to a school. With the proper future licensing and guidance, some of these businesses could still have a future, but major infractions like location will mean some will have to practically start over from scratch if they hope to continue in the industry.
Continue reading

September 14, 2018

“Think About the Children” Goes Both Ways When It Comes to Marijuana

By Cannabis Law Group

The issue of children and marijuana protections arose once again in the form of a proposed bill from California medical marijuana Senator Jean Fuller (R-Bakersfield). The senator wanted to get on the books more concrete ramifications for dispensaries who sold marijuana to underage clients. The bill proposed a tiered system in which first offenders would receive a 15-day license suspension, second-time offenders within a three-year period would receive a 25-day suspension, and a third offense in three years would lead to a full license revocation. SB-1451, however, was vetoed by Gov. Jerry Brown, who called the bill “not necessary,” according tot a report from High Times. Gov. Brown pointed to the Bureau of Cannabis Control and cited their power to suspend or revoke licenses based on these exact kinds of violations and said he would rather the bureau be able to use their own discretion in determining punishment.

In the numerous discussions surrounding the issue of cannabis laws in California and other states across the country, there has been an extraordinary amount of focus on children. Can they be recommended marijuana by a doctor? What is the punishment for selling to a minor? How can marijuana businesses advertise in a way that would not be seen by or not be appealing to children? How do we make the packaging child safe? How does cannabis affect developing brains and bodies? How far should a business be located from schools? The list goes on and on, and many of these issues can be addressed simply with the guidance of a skilled marijuana legal counsel. Continue reading

September 12, 2018

Workplace Deaths Go Down with Access to Medical Marijuana … By a Lot

By Cannabis Law Group

Recent research out of American University, Colorado State University, and Montana State University delved into a correlation between workplace fatalities and the legalization of medical marijuana, and the discoveries could be surprising to many. The data points compiled fly in the face of anti-marijuana rhetoric that has been peddled as “common sense” for decades and show, in fact, a sharp decline in fatal workplace accidents as access to medical marijuana increases. The research is set to be published in The International Journal of Drug Policy, and according to a report from Colorado Springs Independent, the connection the research demonstrated between continuous decreases in fatalities in the workplace and medical marijuana is compelling.

Researchers compiled data from 1992 to 2015, providing a set that included the several years leading up to the passage of the Compassionate Use Act of 1996, which legalized medical marijuana in California, making it the first state to do so. The study followed other states as well and found that deaths from workplace accidents would drop about 34 percent after medical marijuana had been legal in that state for five years. The connection was most notable in the age group of 25- to 44-year-olds, which demonstrated a 19.8 percent reduction. Continue reading

September 11, 2018

Is Marijuana on the Ballot in Your State This November?

By Cannabis Law Group

All eyes in the cannabis community will be on four states this November as ballot initiatives could add more states to marijuana lawyer the growing list of places where either recreational or medical marijuana is legal. Two of the states — Utah and Missouri — currently have no marijuana protections and would be looking to add medical. The inclusion of these two would bring the number of states with some form of legal cannabis to 32. Meanwhile, Michigan and North Dakota are no strangers to marijuana legislation, each one already having medical marijuana permissions in place while looking to move forward into recreational cannabis in November.

According to The Motley Fool, early polling shows Michigan is expected to be a close call in their ballot initiative to legalize recreational marijuana. Proposition 1 would permit use and possession of marijuana for those 21 and older as well as sales and taxation on those sales. Under the measure, 12 plants would be allowed for personal growth in private residences. Like California and other states, though, cities and local governments would have the right to ban or regulate businesses in their jurisdictions. A 10 percent excise tax on retail sales would go toward education and be divided among local coffers. Continue reading

September 10, 2018

Talking to Your Government Representative About Marijuana

By Cannabis Law Group

Californians have led the charge on marijuana legalization for decades, but even though both medical and marijuana law recreational cannabis are legal in the state, the fight is not yet over. What can you do to help further marijuana legalization? As it turns out, quite a lot.

The passage of Proposition 64 and its predecessor, The Compassionate Use Act of 1996, were both clear examples of how civic participation could change the narrative for marijuana in California and the rest of the country. Many thought after those laws were passed, their work would be done. After all, California now has some of the most robust marijuana legalization efforts in the whole country.

For many in the state, however, it might barely feel like it’s legal at all. As our skilled attorneys can explain, that is because of parameters built into state law that allow local jurisdictions to enforce their own regulations or bans. Cities are not allowed to ban personal use or small personal grows in residents’ own homes, but everything else is pretty much fair game. Many cities have no sales and no cultivation … they won’t even allow testing labs or processing facilities within city lines. In fact, 40 percent of Californians have to drive at least 60 miles to find a legal dispensary. This simply is not a reflection of the will of the people. Continue reading

September 8, 2018

Getting Blunt About Pesticides and Marijuana Cultivators

By Cannabis Law Group

Riverside County is empowering cultivators by teaming up with the state to provide training on pesticides, including marijuana cultivation proper use and regulations. The mid-September training is being provided by Riverside County’s Agricultural Commissioner’s Office and California Department of Pesticide Regulation, according to a release from the commissioner’s office. Commercial cultivation is banned in many parts of Riverside County, including the unincorporated areas, but the event is still open to anyone who wants to register.

Pesticides have become a hot-button issue in the marijuana industry, especially over the past few months. As of July 1, the transition period in which licensing authorities did not enforce certain regulatory provisions was no longer in effect. As our experienced attorneys can explain, mandatory laboratory testing was among those regulations that would be enforced. This has meant any cultivators not in compliance with pesticide use are now flagged during testing and their product is not able to make it to market. Even before July 1, pesticides were regularly in the news, with some unlicensed cultivators using toxic pesticides that have been killing off wildlife. Such behavior has had devastating effects on local ecosystems and given responsible cultivators a bad name. Continue reading