marijuana business lawyer

December 24, 2018

Pall Cast Over Hemp Win as FDA Dubs CBD Products Illegal

The U.S. president’s signature on the major farm bill earlier this month was a big win for legalized hemp. However, our Los Angeles marijuana product sales attorneys have just learned the passage of that measure won’t necessarily grant blanket protection for CBD oil, after the U.S. Food and drug administration issued warnings to a number of cannabis product makers making certain health claims about products produced with CBD, formally known as cannabidiol. The hemp-derived extract is becoming increasingly popular in a range of products, including foods, lotions and medicines. Los Angeles CBD oil attorney

A week after the farm bill was passed, the FDA Commissioner issued a statement underscoring the department’s position on CBD oil and related products. The commissioner stated in plain terms that CBD oil is a drug ingredient, and thus is unlawful to put in food or health products absent any prior approval from the FDA, with the main concern being potential risk to patients when products haven’t been proven to be effective or safe.

Remember: CBD is the non-psychoactive compound found in hemp, which is a version of the cannabis plant that is very low in THC. It’s the THC infused naturally in marijuana that gives off the high. CBD is in a number of medications that are approved by the FDA for treatment of certain ailments. Epidiolex, a CBD-oil infused syrup used to treat seizures, is one, having just received its stamp of approval this past summer. Continue reading

October 8, 2018

California Cannabis Growers Grapple with Regulation

By Cannabis Law Group

Times have been tough for California cannabis growers, particularly in the northern region of the state. A recent report from The Cannabis Business Times reveals that since the regulated recreational marijuana market opened at the start of 2018, the amount of lawful, quality sinsemilla (flowers absent the seeds) has plummeted. In some regions, it’s almost completely dry. marijuana grower attorney

It begs the question: How is it possible that the No. 1 marijuana producer in the world suddenly be out of cannabis flowers?

As our Orange County marijuana business lawyers can explain, there are a number of natural and policy forces at play – namely the way the cannabis is grown, the damage caused by rampant wildfires and the introduction of stringent rules and regulations – including quality and purity testing protocols. Continue reading

June 19, 2018

Long Beach Finally Passes Recreational Marijuana Business Policies

By Cannabis Law Group

Long Beach will soon be the next city in Los Angeles County to embrace recreational marijuana business plan marijuana after its city council voted overwhelmingly to regulate industry operations. The council passed a series of amendments that will set guidelines for cultivators, testing labs, distributors, and dispensaries in the city, according to an article from Press-Telegram. The 7-1 vote reflected a strong support from council, with the support of the mayor as well as the residents who voted for Proposition 64 in November 2016.

City staffers estimate the move could bring in about $750,000 in taxes from recreational sales next year and a whopping $4.5 million from medical marijuana taxes. City officials also hope to stimulate the economy with a clause that requires collective-bargaining agreements with United Food and Commercial Workers 324, the union that represents cannabis workers, raising the bar on the quality of jobs provided by local establishments. Continue reading

May 25, 2018

Expect More Recreational Marijuana Events in Our Future

By Cannabis Law Group

In a big step toward the normalization of cannabis, the 2018 NorCal Cannabis Cup in Santa Rosa, Calif., has been granted a recreational marijuana license. In the past, the event was only a gathering of people who appreciated cannabis, with booths, activities, food, music, and marijuana-related products, but not the real deal. Now marijuana businesses and consumers alike can enjoy the thing they all have in common, allowing the community to share cannabis goods and knowledge on a new scale.

This is only the second event in the U.S. that allowed the sales and consumption of cannabis, according to a report from High Times, host of the event. The Central Valley Cannabis Cup in Sacramento in early May was the first event to receive such a license and was also hosted by High Times. While the first event was groundbreaking, in some ways it is the second event that is a sign of times to come. Attendees and marijuana businesses at the Central Valley Cannabis Cup proved that an event of this kind can be run safely and responsibly, making it possible for more events in the future. These gatherings can also have a major impact on local economies, bringing in tourists and vendors to the area. This is, of course, in addition to the publicity and money-making opportunities available to businesses inside the event. Continue reading

May 10, 2018

Napa Easing Up on Marijuana Business Restrictions

By Cannabis Law Group

Some local governments have appeared hell-bent on banning or strangling the budding cannabis industry. It’s encouraging in this light to see some leaders embracing the change and making strides to make this a more cannabis-friendly community. marijuana business

The Napa Planning Commission recently endorsed reducing the distance a cannabis business can set up shop to 600 feet from a school or place where children congregate, and even recommended easing up on that rule in instances where a natural barrier would prevent direct access, such as a waterway, according to Napa Valley Register.

For many people, change can be a very scary thing. Often, though, such fears are rooted in lack of education and the feeling of losing control. Once we see new ideas in action, we sometimes wonder why it took us so long to change in the first place, and realize we wouldn’t want things to go back. We see the effects of this sentiment throughout California. Since the passing of Proposition 64, there has been a great deal of caution on the part of cities to slow down change as much as possible. Prop 64 and the follow-up Medicinal and Adult-Use Cannabis Regulation and Safety Act very thoughtfully laid out guidelines that would allow marijuana businesses to begin sales of recreational cannabis, and, in the case of MAUCRSA, brought medical marijuana sales under the same umbrella of rules. These guidelines painstakingly established regulations that would encourage cannabis businesses to operate legally while easing fears of residents. Continue reading

April 11, 2018

Tourists Could Cause Marijuana Shortage in CA This Summer

By Cannabis Law Group

California marijuana supply shortages have been of mounting concern, stemming primarily from the introduction of legal cannabis Jan. 1st and the barrage of regulations that came with it. Marijuana businesses have varied reports on supply issues thus far, with some experiencing few supply chain problems, and others reporting major lapses. Many of these issues are typical growing pains associated with a budding new industry. These problems could become major snags this summer, though, when tourist season his, and we’re flooded with curious new customers.

In San Diego, for example, about 8 million tourists visit during the summer months, according to a recent report discussing the potential impending shortage from San Diego Union-Tribune. Lines are already out the door at stores in this city, so there is worry businesses may not be able to keep pace. The issue is not necessarily that overall supply can’t keep pace with demand, but more that businesses are grappling with supply bottlenecks due to erratic regulation across jurisdictions throughout California. Continue reading

March 12, 2018

Colorado Hopes to Bag Residency Requirements for Marijuana Businesses

By Cannabis Law Group

Despite appalling and misguided federal efforts to hold back marijuana businesses, the industry continues to blaze trails with expanded marijuana laws and opportunities, clearing away for progress and reason to prevail.

The latest example comes out of Colorado, where the state is looking to get rid of residency requirements for marijuana businesses. House Bill 18-1011 would allow non-Colorado residents and publicly traded companies own a stake in state-licensed businesses as well as make investments. Right now ownership for non-residents is limited to 15 people. A bi-partisan group of legislators is leading the charge on the bill, which they said will not only attract more investments in the state, but also allow local businesses to be publicly traded, according to The Cannabist.

Officials said Colorado law is causing the state to fall behind roughly a dozen other states that no longer have such limitations. Indeed, California already rid itself of residency restrictions with the creation of Medicinal and Adult-Use Cannabis Regulation and Safety Act in June 2017. The act combined the Adult Use of Marijuana Act and the Medical Cannabis Regulation and Safety Act in an effort to consolidate regulations and laws governing medical and recreational marijuana. Many regulations carried over from the two previous acts, but one notable change was the removal of a rule in AUMA to prohibit licenses from being issued to non-California residents until Dec. 31, 2019.

December 21, 2017

The Good and Bad of California’s New Cannabis Regulations

By Cannabis Law Group

Cultivation and sales of marijuana to recreational users will soon be legal in California, and ahead of that schedule, the Bureau of Cannabis Control (previously the Bureau of Medical Cannabis Regulation) has issued a regulatory framework that covers everything from concentration of edibles to zoning rules. Excitement in palpable as legal sales are expected to grow by 26 percent over the next five years (thanks in large part to Proposition 64), which would mean the establishment of a $22 billion industry. marijuana lawyer

Although there are many regulations that are fairly standard, such as outlines for growing and testing, the crop-size limitations are the two that have raised the most ire.

Many are concerned about the scope of these regulations and what they will mean for cannabis businesses – particularly smaller ones. It was largely expected that crop size limits would occur to some degree, but the final regulation only limits medium-sized growers’ licenses. That could potentially open the door for smaller and larger marijuana grow farms, but because large companies have deep pockets, the concern is that smaller businesses (which will have a tougher time landing loans) will be pushed out too. Business Insider refers to this as a potential oligopoly. Mass production by these larger players could drive down marijuana prices in the short-term, but eventually, absent sharp competition, these prices would rise. Speculation is that the state will even more heavily tax the product by as much as 45 percent, a cost that will ultimately be passed onto consumers.

On the flip side, investors in marijuana businesses could see handsome profits. Investors in the legal marijuana trade have always been taking a huge risk, largely because the plant is illegal at the federal level, and therefore assets and profits are vulnerable to government seizure. Beyond that, though, the marijuana industry has long been heavily fragmented. Regulations vary from city-to-city, and the majority of the market at this juncture is comprised of mom-and-pop operations. If that shifted to become a smaller number of larger businesses, that could give investors incentive and a clear path to profits. Continue reading

October 23, 2017

Study: Legal Marijuana is Saving Lives Amid Opioid Epidemic

By Cannabis Law Group

When Colorado became one of the first states to legalize marijuana, there were voices of opposition railing it would be the gateway to harder drugs. Now, a new study reveals legal marijuana may actually be saving lives. marijuana business lawyer

Published in the American Journal of Public Health, the research examined the link between the legalization of recreational use cannabis in Colorado and the number of opioid-related deaths. What study authors discovered was one of the only places in the nation so far to have experienced a reversal in the upward trend of opioid deaths. Following the opening of the first shops selling recreational use marijuana in 2014, Colorado’s opioid deaths dropped by 6 percent over the course of two years.

Researchers were careful to say these findings are preliminary, and examine the just two years of data in a single state. However, those results are promising, and echo the voices of support have been saying from the beginning: Marijuana – which has far fewer risks compared to opiates – can be used as a substitute for those who might otherwise turn to more powerful (and dangerous) prescription drugs. Continue reading

August 27, 2017

Can California Cannabis Companies Combat Racial Inequality?

By Cannabis Law Group

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. marijuana 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