Here in the western states, the conflict between strict federal marijuana laws and increasingly-permissive state marijuana laws has created much confusion. The public, government officials, and even police officers on the front lines of marijuana law enforcement seem unable to reach a consensus on what cases will be prosecuted and why. Now, more than ever, it is critical that defendants facing marijuana charges have a the advice of a criminal defense attorney who is skilled in cannabis-related offenses. Continue reading
Wedding Industry Says ‘I Do’ to the Marijuana Industry
It’s a new trend, but one that perhaps should not be surprising to Californians. More and more couples are choosing to make marijuana part of their special day. From cannabis buds in fl
oral arrangements to marijuana favors for guests, there are many ways to incorporate marijuana into the more classical wedding traditions. The Guardian reports on one wedding that featured a “pot sommelier”. Wearing a three-piece suit, the elegant professional presided over a “dab bar”, and gave guests guidance on the best marijuana pairings for their palettes. The Atlantic describes another couple who chose to share a “first toke” with their guests in lieu of a more traditional first toast to the newlyweds. Still other couples commissioned specialty versions of traditional wedding products, such as a four-foot ice bong, or a “unity bowl” with two mouthpieces, upon which the couple could share a ceremonial first toke together.
For wedding planners, caterers, florists, venue operators, and other wedding vendors, the legalization of recreational marijuana in California has created a vastly-expanded potential market of specialty services to offer their clientele. While the marijuana industry is still highly regulated, it is also very profitable. Wedding vendors can successfully execute business expansions with strategic operations, legal compliance, and other important business planning.
Business Taxes For Which Cannabis Entrepreneurs Must Prepare
Like business owners in any industry, cannabis entrepreneurs must prepare for the various taxes which will be levied by state and local governments. This can be an overwhelming task – especially in the current environment of unsettled regulations and uncertain administrative policies. However, strategic planning can devise tax strategies which reduce a company’s overall tax liability, and thereby improve its profitability. Prepare your business for the overhaul of the cannabis industry which has already started across California.
By consulting with a cannabis business attorney, you can prepare your business for profitable operations from Day One.
An Aging Population Trades in Pills for Marijuana
California has long been a pioneer of medical marijuana advocacy. It was, in fact, the first state to legalize the medical use of marijuana in 1996 with the passage of Proposition 215. This Act did suffer from technical defects. According to the Los Angeles Times, Senator Diane Feinstein famously said, “you’ll be able to drive a truckload of marijuana through the holes in it. Nonetheless, it demonstrated that Californians take seriously a person’s right to access the medical benefits of marijuana. That sentiment has been a part of California culture ever since, and it was instrumental in securing the passage of Proposition 64. The Adult Use of Marijuana Act legalized the use of recreational marijuana in California as of November 9, 2016.
While the recreational use of marijuana remains controversial, medical marijuana is finding advocates from many unexpected sources. According to Military.com, the American Legion is now making movements to support the medical use of marijuana. The Legion – an association of military veterans which has generally held conservative policies throughout its long history – has recognized the desperate needs of its new members returning from the campaigns in Iraq and Afghanistan. It has also recognized the tragedy of veterans who are prescribed vast amounts of medication instead of accessing the simple benefits of organic marijuana. Many of these veterans develop addictions to opioid painkillers, and this epidemic has been exacerbated by the mental health problems faced by returning veterans. The shifting policy of such a conservative organization demonstrates the scale of the epidemic facing both the mental and physical health of our country’s veterans. Continue reading
Los Angeles Prepares for Recreational Marijuana Sales With Appointment of Cannabis Czar
Local and state government agencies across California have a significant amount of work to do before January 2, 2018. Proposition 64 – The Adult Use of Marijuana Act – provided that the state would issue business licenses for recreational marijuana sales no later than January 1, 2018. (Because January 1 is a state holiday, the licenses are scheduled to begin issuing on January 2). Much of this work fell to the California Bureau of Medical Cannabis Regulation. The Bureau was formed by legislation enacted in 2015 to regulate medical marijuana in the state. Now, the bureau chief has been named California’s Cannabis Czar.
The Mercury News spoke with state Cannabis Czar Lori Ajax to learn what Californians can expect to happen with recreational cannabis business licenses come January 2. Ajax acknowledges that not every business license will be issued on Day 1, but claims that applications will be accepted, and the online system will be up and running. Ajax also claims that temporary licenses may be issued in order to facilitate a timely start to sales of recreational marijuana. Furthermore, medical marijuana business licenses will continue to be valid until the state makes final determinations about the regulation of medical marijuana licensees. Holders of medical marijuana cards will, therefore, be able to obtain cannabis from local dispensaries, regardless of the state of recreational business licenses on January 2, 2018. Continue reading
Marijuana Company Embroiled in Branding Dispute
There are many considerations to take into account when starting a marijuana business, and branding is one of those. The marijuana industry on the whole prides itself on branding that is bold, cheeky and perhaps a little more risque than most. But cannabis start-ups must be careful to research whether certain names are not only good for marketing, but whether they are actually available. Otherwise, owners may find themselves embattled in a lawsuit alleging trademark infringement or copyright infringement.
Brand infringement is a serious, and potentially costly, risk. Companies are increasingly being proactive against this damage by monitoring their brand name and competition – especially online. Protecting yourself from such action, as well as protecting your own brand from infringement, is important.
When competitors, affiliates or other third parties take advantage of your brand by using your trademarks, ideas, products and keywords to confuse similar aspects of your brand as their own, it can cost you business. 15 U.S.C. 1114 outlines provisions for trademark infringement, innocent infringement and remedies. Our marijuana business attorneys in California can help. Continue reading
California Leaders Discuss Bank Specifically to Serve Marijuana Industry
Recreational sales of marijuana in California will be legal by next year, yet most financial institutions refuse to allow marijuana companies to open up business accounts. Entrepreneurs remain uncertain of how to manage a legitimate business when they’ve got mountains of cash to manage. They are asking the state and/ or municipalities to get involved. Specifically: Start a public bank that would cater specifically to cannabis companies.
Some leaders and candidates are beginning to warm to the idea, which would involve a government-owned institution with the authority to take deposits, issue loans and be on board to work with business that derive profit from marijuana – even though it’s a Schedule I narcotic.
California Lt. Gov. Gavin Newsome, who is also vying for the governorship, has publicly backed the foundation of a government bank and held discussions with leading marijuana industry insiders. Recently, the L.A. City Council President called for an analysis into a city-owned bank that would be able to serve marijuana businesses.
Federal Judge Blocks California Marijuana Growers’ Prosecution
A federal judge in San Francisco has blocked the prosecution of two marijuana growers in Northern California, citing a Congressional prohibition on the Justice Department interfering with medical marijuana laws of the states.
In 2014, the two defendants pleaded guilty to marijuana possession and cultivation on Humboldt County farm. Each were facing down the possibility of a three-year prison term, per federal sentencing guidelines. However, a U.S. District Judge has suspended any further proceedings in the case, stating prosecutors were prohibited by Congressional restrictions imposed three years ago – and has renewed every year thereafter.
The restrictions were implemented as part of an amendment that was sponsored by two California representatives – one a Republican, one a Democrat. The rule does not allow the U.S. Justice Department to spend money in a way that would interfere with any state’s medical marijuana laws. In 2016, the U.S. Court of Appeals for the Ninth Circuit ruled in U.S. v. McIntosh issued a ruling that prohibited any federal prosecution of individuals who are in compliance with medical marijuana law in a given state – even though federal statute prohibits use or possession of the drug, which it considers a Schedule I narcotic. Continue reading
Legal Marijuana May Not Completely Quell Black Market Demand
Black market sales of marijuana thrived under a system that totally outlawed the drug. For decades, illicit sales lined the pockets of violent drug cartels and gangs. Legalizing marijuana, as California did with Prop. 64, would effectively quash this problem, or so it was believed. After all, when marijuana is sold in highly-regulated stores, it gives the government more control, it gives taxpayers a cut and it provides safe access for patients and users. However, recent analysis shows black market sales may not be completely eliminated.
The San Francisco Chronicle looked at this issue in weighing the makeup of the black market.
First, there is the fact the California grows more marijuana than is consumed by residents. Prop. 64 did nothing to effect the laws in other states, but interstate borders aren’t always policed to the point every person crossing from one state to the next with marijuana would be caught. Secondly, the law did not give a rubber stamp to all growers or sellers of marijuana. Sellers have to be licensed by a state agency, and they must comply with a long series of rules that detail everything from plant testing to packaging labels to tracking. Continue reading
Can California Cannabis Companies Combat Racial Inequality?
Here in Oakland, those convicted of marijuana trafficking are getting a new opportunity to launch California cannabis businesses under the city’s Equity Applicant system. The goal is provide longtime residents, typically those who live below the poverty level – including those who have prior convictions for marijuana sales – get assistance in starting a cannabis business.
City leaders say the goal of the Equity Applicant system is to right the fallout of many years of a failed “War on Drugs,” which hit poor minority communities especially hard. As USA Today recently reported, nearly 80 percent of those arrested for marijuana crimes in 2015 were black. Conversely, whites made up just 4 percent of those arrested. Meanwhile, the city’s population is evenly divided – 30 percent black and 30 percent white. What this shows, officials say, is a clear bias in policing, especially because we know that blacks and whites use marijuana at rates that are comparable.
Police received formal orders in 2004 to make the majority of marijuana offenses – particularly possession – the lowest priority in terms of enforcement. It’s even lower than jaywalking. Still, businesses that cultivate, manufacture and distribute the drug are overwhelmingly white. That’s true in Oakland and across California. City leaders want to change this. Continue reading