Articles Posted in California Marijuana Dispensaries

For 22 years, medical marijuana was the only kind of legal cannabis sold in California, until the state went on to legalize recreational cannabis in 2018. Within the months immediately following that addition, a number of medical marijuana dispensaries shifted away from leaving pot out on counters for customers to view and smell, to exclusively stocking pre-packed cannabis in already sealed bags. Prices went through the roof, welcome deals for new customers dried up, and hiked taxes raised product prices even more.

Marijuana dispensaries

While other dispensaries carried on with business as they always had done. They kept buds out and available for close-up inspection before being weighed, and a complimentary joint was often handed out to welcome first time purchasers. But if you shop at a dispensary of this kind today, chances are it’s an unregulated, illegal shop. Continue reading

Cannabis business attorneySacramento, California could lead the way in showing other cities throughout the state how to institute new, and broaden existing, marijuana social equity plans.

A number of Californian municipalities are yet to meet the ideal cannabis social equity standings, largely due to cannabis businesses tussling with numerous other issues, like licensing hurdles, tax hikes and the continued strength of the illegal market.

That said, of late, a pressing for increased social equity within the state’s capital has emerged. A finite focus has been set on providing both business guidance and financial support for minority communities, as well as those disadvantaged by the war on drugs.

Equity applicants take note — the state’s capital aims to grant as many as 10 of its next dispensary licenses to applicants who meet the equity criteria.

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marijuana bankingThe state of California has now permitted the legal use of marijuana for two years. And tax dollars collected from the cannabis industry are already showing great impact across a variety of sectors.

Since its passing in 2016, Prop 64 has earmarked its entire cannabis industry tax revenue, minus regulatory costs, to supporting public health, repairing the environment, and bettering public safety.

New parks, healthier children, broader educational opportunities, forest clean ups, drugged drivers removed from the roads, and criminal records cleared are just some of the areas already seeing big improvements thanks to Prop 64 tax revenue contributions.

And this is just the beginning. In mid January this year, Gov. Gavin Newsom proclaimed another $332.8 million in cannabis tax revenue would be allocated to social services for the 2020-2021 fiscal year.

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It’s been nearly 25 years since California became the first state in the U.S. to approve medicinal marijuana. As of this month, all but 16 states allow legal sales and possession of the drug in some form, with California being among the 11 plus Washington D.C. that allow recreational sales for adults. But along with that, California’s compassionate use collectives dried up. medical marijuana lawyer

The 1996 Compassionate Use Act allowed growers and distributors to donate a portion of their marijuana crop to small, non-profit collectives (and later dispensaries) which in turn would pass them along for free to indigent medical marijuana patients. Many of these were suffering from conditions like epilepsy, AIDS, cancer, chronic pain and PTSD, and were able to avoid dangerous, addictive opioids and other powerful drugs.

But when Proposition 64 passed in 2016, legalizing marijuana for recreational use by adults in California, the crop started being taxed at virtually every stage of production and distribution. The compassionate use donations became virtually non-existent, as Prop. 64 called for a sunset on collectives by January 2019. (Today there are only a few dozen compassion programs through which a small number of patients receive free cannabis.) Although any adult over 21 can gift any other adult over 21 with up to one ounce of the drug at the time, dispensary owners risked breaking the law if they did so; it was considered illegal advertising. Those stores could lose their licenses. Therefore any cannabis that made its way into consumers’ hands was treated as a sale. Some suspect this is a significant part of what is driving black market sales. Continue reading

Californian payment provider, Linx Card, has fielded a spate of lawsuits from cannabis businesses in recent months, who claim the primary provider of debit merchant services to marijuana retail stores, owes them millions.

Linx offers customers a platform where they can purchase Linx gift cards, or pre-paid debit cards, that can then be used to make in-store cannabis product purchases using those cards. Terminals within select retail stores sell the Linx gift cards, as does the Linx website.

marijuana bankingCourt Filing Woes
Court filings made across the country allege that Linx owes at least four marijuana businesses money. Those sums include:

  • $40,092 to Universal Herbal Center and Pineapple Express (who operate marijuana stores in California);
  • $114,962 to Colorado retailer, Silver Stem Fine Cannabis;
  • $939,010 to Las Vegas superstore retailer, Planet 13; and
  • $1.5 million to Arizona and Nevada Reef Dispensaries.

In a statement, Linx CEO Patrick Hammond, acknowledged the company is working to resolve these issues and plans to ensure retailers are paid in full.

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cannabis lawyerCalifornian marijuana industry members are in distress, and an urgent cry for help has been made to state leaders. Legal cannabis companies in California say they are simply unable to keep pace with illicit marijuana business operators who don’t pay licensing fees, skip state taxes and fail to meet state mandated industry regulations. Licensed marijuana businesses warn the state’s largest emerging industry is at risk of going up in smoke, unless lawmakers quickly usher in regulatory changes.

If you need legal advice regarding your commercial cannabis business, our Orange County cannabis business lawyers are here for you.
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Los Angeles cannabis business lawyerFollowing a slew of vaping related lung disease cases, a Los Angeles City Council member calls for a year-long ban on all vaping sales.

The proposed ban has many in the industry rushing to cut the motion off before it becomes law. The major concern is that such a ban could mean the end for countless vaping companies who are solely in business to sell vape pens and cartridges. Continue reading

marijuana dispensariesAs California’s legal marijuana industry continues to bloom, so too does a well-stocked black market, comprised of unlicensed, locally grown cannabis, and a plethora of counterfeit cannabis products.

Fake THC Cartridges Are Flooding California
Of all counterfeit cannabis products, refillable THC cartridges used inside vaping pens are currently most common. Surprisingly, states like California – where recreational cannabis use is legal – appear to be most flooded with counterfeit products. Big brands like Kingpen and Rove have tried to get ahead of counterfeits by repackaging their products, but counterfeits have shown they can keep pace, often reproducing new packaging almost as quickly as the legitimate brands.

And industry insiders unanimously agree, the fakes are getting better all the time. Many knockoff THC vape pens are comprised of illegally but locally grown cannabis, which producers then stuff into refillable cartridge pens, before attaching counterfeit labeling they’ve purchased online, and selling the finished counterfeit pens at discounted prices to illegal pop up shops. To most consumers and law enforcement officials alike, it’s very difficult to tell a real pen from a fake one.
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cannabis defense lawyersEver since cannabis was legalized in California in January 2018, a flood of marijuana businesses have opened, hoping to take their share of the pot market. But it’s no secret that many industry stakeholders are unhappy with the current state of affairs.

Today there are 182 licensed marijuana dispensaries operating throughout Los Angeles, and many of those business have paid well into the tens of thousands of dollars to operate legally. First by registering their companies and covering licensing fees, then paying city taxes and continually meeting strict safety standards imposed by the state.

Meanwhile, there are countless other outfits operating slightly more under the radar. They are able to skip paying licensing fees and, as predominantly cash run businesses, also avoid paying taxes. To the frustration of legal business owners, rouge pot shops attract a slew of customers with undercut pot prices, prices that legal outfits have a hard time matching given their higher operating costs.

While regulation of cannabis use and sale continues to undergo assessment and tweaking in the state of California, many licensed cannabis business owners have reached boiling point. The biggest reason, illegal pot shops continuing to operate comfortably, with little pressure from state authorities requiring them to toe the line.
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marijuana dispensariesCalifornia has kicked off a multi-lingual public awareness campaign, urging cannabis users throughout the state to ensure they’re purchasing from legal dispensaries.

Amid growing calls from licensed cannabis dispensaries, The California Bureau of Cannabis Control’s “Get#weedwise” program aims to educate consumers on the risks they face when buying from unlicensed retailers. It also advises that safest pot purchases are made with licensed dispensaries and warns illegal business operators of consequences they can expect if they continue to trade without a license.
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