California marijuana lawyers

July 28, 2023

More California Cannabis Employment Protections Likely On the Way

Good news for California employees who also happen to be cannabis enthusiasts: A bill that would bar companies from asking job candidates about previous marijuana use has already passed the state senate and has sailed through its second California Assembly committee. The bill would expand existing worker protections that were passed last year prohibiting employers from discriminating against employees who are shown (either by drug test, admission, or some other means) to have used marijuana off-the-clock. (There are some exceptions, such as workers in building and construction trades or those that require federal background checks or a certain level of security clearance.) California cannabis employment lawyer

Our Los Angeles cannabis business lawyers also practice employment law, so this is doubly good news.

After Senate Bill 700 cleared the state senate, it passed the Labor and Employment Committee, and then also the Judiciary Committee by a margin of 8-2. Now, it goes to the Appropriations Committee. If it passes there, it can advance to the floor. If the Assembly approves the measure, it will then be sent to the governor’s office for consideration. If it does manage to pass, its effective date would be Jan. 1, 2024.

But why was such a bill even necessary? Continue reading

October 14, 2021

California Cannabis Company Wins Industry’s First Anti-Trust Case

By Cannabis Law Group

The cannabis industry’s first anti-trust case to reach trial was decided in favor of pot shop owners who alleged they’d been illegally edged out of the market by a would-be competitor’s unfair business practices. Jurors awarded $5 million (tripled to $15 million under the Cartwright Act) plus attorney’s fees. Los Angeles cannabis business lawyer

In Richmond Compassionate Care Collective v. 7 Stars Holistic Foundation, an independently-owned dispensary, RCCC, in Contra Costa County, sued the owners of the Richmond Patients’ Group (RPG) over allegations of conspiring to block RCCC from opening a new shop. Evidence presented at trial included evidence the defendant impeded access to the finite amount of commercial property zoned for medical marijuana distribution.

Plaintiffs argued the defendant, a potential competitor, intentionally thwarted their opportunities by submitting fraudulent letters of intent, leases, and purchase agreements to landlords of commercial properties, effectively tying up those spaces until RCCC’s permits became expired. (Local ordinance in Richmond, Calif. requires cannabis shop permit holders open up a shop within six months or lose their permit.) The defendants reportedly even went door-to-door, trying to persuade landlords to avoid leasing to RCCC. Defendants also made efforts to compel a change in city ordinance that would reduce the number of cannabis permits available (in this, they were successful). RPG was also accused of trying to influence city officials to deny RCCC’s licensing permit.

As our Los Angeles cannabis attorneys can explain, trying to compel a change in local ordinance or state law isn’t illegal. But the plaintiffs underscored it as evidence of the defendant’s purpose and intention with regard to the other actions.

RCCC alleged RPG’s efforts ensured they were closed off at every turn by RPG’s actions and eventually lost their permit – and millions of dollars in investments and potential profits. This, they allege, was in direct affront to the California Cartwright Act, the state’s antitrust law prohibiting efforts to block fair competition in the free market. Continue reading

November 10, 2019

Cannabis Now a Step Closer to Federal Legalization

By Cannabis Law Group

An all-encompassing cannabis reform bill inches the nation’s marijuana industry ever closer to federal legalization, as the U.S. House Judiciary Committee voted 24-10 in favor of the bill carried by California-Dem. Kamala Harris in the Senate.

The MORE Act
Should the bill become law, the 2019 Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) has the potential to extend vast business opportunities for licensed cannabis outfits, especially in states like California where legal operations have already had time to become well established.

However, the bill is not expect to be reviewed by the full House until at least 2020. And in the event that the full House does pass the measure, the current Republican-controlled senate will likely be a difficult obstacle for the Democrat lead bill to overcome prior to next year’s federal election. Marijuana policy
Continue reading

December 29, 2018

2019 to Bring Boom of Multi-State Cannabis Companies, Mergers and Acquisitions

By Cannabis Law Group

Most of the marijuana businesses in California and across the country run by small, independent entities operating in a limited regional network within their own state. Los Angeles marijuana business attorneys have seen several indications we might see a major shift on this front in 2019. There are already four large multi-state marijuana businesses in operation, and as more national and international companies enter the fray, we’re likely to see a boom of large cannabis business growth – partially or primarily through mergers and acquisitions. Los Angeles marijuana business merger

Historically, cannabis business ventures have been small as federal law has hindered businesses from stretching across state lines. While the states control trade within their borders, the federal government has jurisdiction over interstate sales – and cannabis is still under federal law considered a Schedule I dangerous narcotic. But with the drug legalized in some form now by 33 states and available for recreational use in 10, legal in Canada and poised for legitimacy in Mexico, this is probably going to change (though it’s tough to say exactly when). State and local governments are embracing the tax revenue these companies rake in and they’re spending less on police resources to bust people for petty marijuana possession charges. A legal marijuana industry analyst with Forbes opined next year will see an explosion of cannabis mergers and acquisitions.

Still, expanding the tentacles of one’s marijuana business into other states is still very risky and could result in millions of dollars in losses if they overreach or fail to follow the stringent regulations set forth by each state. There are personnel issues, regulatory issues and sometimes just rotten luck. But even for smaller cannabis businesses in Southern California, staying competitive in this rapidly expanding and evolving market may require it. If you’re thinking about branching out – whether into the next county or across state borders, you can begin strategic business plan discussion with an experienced Los Angeles marijuana lawyer who can help you maximize your odds of success and minimize the liability risk. Continue reading

December 27, 2018

Report: California Banking for Bud Businesses is a Bust

By Cannabis Law Group

Hopes of a public bank to serve California cannabis companies appear to have fizzled with an extensive marijuana banking report from the state Treasury Department explaining that as long as marijuana remains a Schedule I narcotic per U.S. Code, any publicly-funded banking intended for companies that sell it would put tax money at risk. Los Angeles cannabis banking attorney

When you’re working with a Los Angeles marijuana business lawyer to get your cannabis business plan, licensing, permits, insurance and quality compliance in order, inevitably, one issue that will arise is how you plan to manage your money. Cannabis companies can’t just open a business checking or savings account like any other because technically, selling marijuana is still against federal law, thus proceeds are “dirty money,” and any banker who works with these firms knowing what they do could be found guilty of money laundering. That would cost the financial firms their banking charters and effectively put them out of business.

Of course, it’s utterly ridiculous given that the plant is legal now in most states in some form or another. Los Angeles marijuana lawyers suspect U.S. law will eventually catch up to the science and times. For now, though, California pot shop owners slog through major logistical hurdles of operating almost exclusively in cash, leaving them vulnerable to robbery, thwarting growth and denying additional tax revenue to both the state and local governments. Continue reading

October 25, 2018

California Marijuana Lawyers Watch Local Elections for New Regulations

By Cannabis Law Group

The statewide legalization of marijuana for adult recreational use as of January 1st thanks to Prop. 64 wasn’t the end of California’s cannabis conversation. Far from it. Long-time California marijuana lawyers, businesses and policymakers are paying close attention to this November election, particularly in several local conservative strongholds set to decide whether to commercial cannabis should be given the green light to set up shop in their communities. Because while the Control, regulate and Tax Adult Use of Marijuana Act of 2016 gave the statewide blessing, it didn’t automatically open the floodgates. Local counties, cities and towns were given the option whether to allow the cannabis industry to operate inside their own borders. Los Angeles marijuana business lawyer

Many leaders saw the passage of Prop. 64 as a major hurdle clearance to legitimizing a promising, lucrative market. While most have let go of the long-debunked reefer madness hysteria of the past, the stigma still remains for some. As marijuana lawyers, we can’t wholly discount all of their concerns, though most have been met with reasonable regulatory response (though some argue certain restrictions go too far). One of the biggest compromises was to allow local control. California marijuana business lawyers and economic experts mostly concur that communities outright refusing cannabis industry access are likely to be at an economic disadvantage, though the extent isn’t yet clear.

Some examples of the dozens of cities set to weigh the future of local cannabis commerce via ballot measures Nov. 6 are rural areas like El Dorado County east of Sacramento and Hemet, a town in the Inland Empire less than an hour south of Riverside. Most areas where the issue is up for vote are expected to pass it by a wide margin, according to The Mercury News in San Jose, but in the more right-leaning regions, predictions are a toss-up. Continue reading

January 1, 2018

Employers Revisiting Policies on Marijuana

By Cannabis Law Group

California was the first state to legalize medical marijuana in 1996 through ballot initiative Proposition 251. Since then, the topic of drug policies in workplaces has been an ongoing debate, with many questions as to whether California marijuana lawyers employers could (or should) enforce zero-tolerance drug policies against employees with medical cannabis prescriptions.

These debates culminated in the 2008 California Supreme Court decision stating that Proposition 251, known as the Compassionate Use Act of 1996, did not protect employees who have been tested positive for marijuana in their system, even with a prescription. Some legislators have tried to implement protections for employees since then, but for the most part, employers have final say.

But with the tides turning on perception of cannabis use and Proposition 64 going into effect statewide Jan. 1, 2018, making recreational marijuana legal in California, it is time once again for employers to re-evaluate their stances.

September 6, 2017

Los Angeles Prepares for Recreational Marijuana Sales With Appointment of Cannabis Czar

By Cannabis Law Group

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. California marijuana lawyers

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

August 31, 2017

Federal Judge Blocks California Marijuana Growers’ Prosecution

By Cannabis Law Group

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. marijuana lawyer

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

August 23, 2017

From Ghost Town to Green Town: Marijuana Business Buys Community for Cannabis Tourism

By Cannabis Law Group

The town of Nipton, California is a small, unincorporated community in San Bernardino County bordering the Mojave National Preserve. An old cattle-loading and mining town, its population today fluctuates somewhere between 6 and 30. About three decades ago, a gold miner from Malibu purchased the ghost town. As The New York Times reported, the goal was to a community that could run on clean energy entirely of its own making. It was this foundation that recently attracted the business eye of a cannabis technology firm, which purchased the town for $5 million. ghosttown

Now, owners of American Green Inc. say the goal is to turn the 80-acre community into an eco-tourism destination for conscious cannabis consumers. The fact that the city runs totally on a self-sufficient, off-the-grid energy system from a solar farm is likely to be attractive to many marijuana enthusiasts across the country. Already existing in the town is old western hotel, an RV park, a coffee shop and a handful of homes. American Green plans to expand the farm to manufacture and sell marijuana-infused water from the town’s aquifer. The company is also in talks with others in the marijuana industry business, in hopes of interesting them to relocate and bring more jobs to the tiny town.

As for whether it will be renamed, that’s not yet clear. Continue reading