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Video 1 KTLA Channel 5 News Story June 18, 2010: Lake Forest Medical Marijuana Dispensary Appealing Injunction Order Video 2 KTTV Channel 11 News Story June 4, 2010: Los Angeles Medical Marijuana Dispensary Challenges LA's Ordinance Video 3 Cannabis Law Group's Attorney Damian Nassiri Sues the City of Los Angeles To Block It's Ban on Medical Marijuana as Featured on PBS's So Cal Insider - Part 1

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As medical marijuana legalization is becoming law of the land in states across the country, many states are California Medical Marijuana Lawyersstruggling with best practices and how to implement the laws quickly and correctly. It often falls to state departments, local legislatures, and other agencies to sort out licensing and sales practices.

Though this process can be difficult for the government agencies in charge of such oversights, it is the citizens of the state who suffer the most when provisions are dragged out unnecessarily.

This has led to lawsuits filed by those who allege they have experienced direct pain or damages due to the way states are implementing new laws. Continue reading

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The passing of Proposition 64 in 2016 legalizes recreational marijuana in California as of January 1, 2018. This will increase the opportunity for marijuana businesses to grow throughout the state.Marijuana regulations

According to an article from Forbes, California cannabis business owners are projected to make $5.2 billion in revenue in 2018, with about $1 billion in tax revenue lining state coffers.

But for every new road that is paved on the way to full legalization, there are numerous bumps along the road. California business owners expect plenty of marijuana regulations, with local governments in the state being given a great deal of jurisdiction over whether or not to allow commercial marijuana production and sales. Continue reading

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With the vote to begin recreational marijuana sales in California, cannabis business owners must navigate new waters to establish themselves with consideration of local and state laws. They also must circumvent federal laws, which still prohibit marijuana sales and use.cannabis business

Another major consideration that is coming into play is how to co-exist with other businesses. Partnerships between mutually beneficial businesses can be highly profitable for all parties involved. However forming such deals can be tricky given the perceptions around the cannabis industry as well as non-cannabis businesses wanting to remain compliant with all relevant laws.

Before joining forces with sister businesses, it’s important for cannabis entrepreneurs to speak with a marijuana lawyer with an expertise in laws to guide you in best practices for a partnership. Continue reading

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The owners of a marijuana dispensary in Colorado are challenging a provision of U.S. Tax Code that the Internal Revenue Service has interpreted to mean state-legal marijuana businesses should not be allowed to take deductions or claim credits.

marijuana tax lawyer

The couple asserts in a brief filed in U.S. Tax Court that the IRS’ determination of their taxes owed for 2010 through 2012 were unjust, and that they were unfairly taxed compared to other business owners. A marijuana attorney representing the pair characterized the specific section of the code as “absurd.”

Section 280E, deals with expenditures in connection with illegal sale of drugs. As noted in a 2015 internal memo within the IRS, although a marijuana business is illegal under federal law, it remains obligated to pay federal income tax because Section 61(a) doesn’t differentiate between income derived from legal sources and those derived from illegal sources (See the 1961 case of James v. U.S.).  Continue reading

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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

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While legal sales of recreational marijuana in California will be a reality in a matter of weeks, it’s also true that marijuana businesses face some major logistical hurdles. One of the most difficult among those challenges is being forced to do cash-only commerce.cannabis lawyer

Because marijuana is still illegal at the federal level (a fact that seems unlikely to change under the current administration), federally-backed banking institutions are vulnerable to potential seizure of funds by the FDIC if they accept money derived from criminal activity. Essentially, these financial firms can be prosecuted for money laundering. The result is that the majority of marijuana businesses – about 70 percent – don’t have a bank account. There are only a few banks that will accept marijuana business clients, and they rarely advertise it.

As an article in The Economist recently noted, this fact put some cannabis farmers in Northern California in serious financial jeopardy when the wildfires consumed not only their crops, but their cash. In one instance, a cannabis genetics consulting firm lost $250,000 that had been stashed in a cabinet. Another cannabis cooperative in Medicino County reported the loss of hundreds of thousands of dollars by some 20 members who buried their cash and gold stashes – only one of which was buried deep enough to survive destruction.

Although Proposition 64 broadened the legalized use and sale of marijuana in California, it did nothing to ease the federal banking regulations that have financial institutions reticent to take work with cannabis companies. The reality is unless there is some action on this front at the federal level, these kinds of issues will continue to occur. Continue reading

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Researchers in Colorado are exploring the ways in which “dabbing” – a form of rapid consumption of cannabis concentrates by vaporizing – can impair one’s ability to drive, and they’re doing it with iPods. marijuana lawyer

A group of researchers from the University of Colorado Boulder are teaming up with a researcher from Colorado State University to explore this highly potent method of using marijuana. CSU notes this study is a “first-of-its-kind,” and the hope is to eventually prevent instances of driving under the influence that endangers lives.

Our L.A. marijuana defense attorneys recognize that our state, like Colorado, has a vested interest in enforcing anti-impairment laws for motorists. After all, we know marijuana has the ability to impair one’s driving abilities and we know impaired drivers have slower reaction times and lowered inhibitions that can endanger passengers and other motorists. However, the problem specifically when it comes to marijuana impairment behind the wheel is that the determination is subjective.  Continue reading

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Marijuana business owners have many reasons to carefully manage their assets. Now, a recently-published article by the U.S. Department of Justice’s Executive Office for U.S. Trustees gives another: Marijuana businesses cannot expect help with liquidation or restructuring in the event of bankruptcy. The executive office for trustees is the watchdog agency over bankruptcy proceedings. marijuana business lawyer

Like so many complex legal issues for cannabis business owners, this comes down to the conflict between state and federal law. Although California voters approved the legalization of recreational marijuana with Proposition 64 last year (and medical marijuana more than 20 years prior), it is still an illegal Schedule I substance under 21 U.S.C. Section 811, the Controlled Substances Act.

Per the recent article Justice Department officials published in the ABI Journal, the bankruptcy system cannot be used by cannabis businesses because:

  • Bankruptcy cannot be used as an instrument in the ongoing commission of a crime, and thus reorganization plans that allow or require the continuation of illegal activity can’t be confirmed;
  • Bankruptcy trustees and other fiduciaries of estates cannot be made to administer asserts if the act of doing so would necessitate violation of federal criminal law.

Continue reading

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Last week, the state of California started accepting applications from marijuana businesses and start-ups seeking to operate within the state’s legalized marijuana industry in 2018. This is a major milestone from this burgeoning market, and it’s being furthered by a new online system that will allow retailers, distributors and product testing services to obtain the licensing necessary to engage in business under newly unveiled state regulations.marijuana business lawyer

Sales of recreational marijuana in California will begin Jan. 2nd. Although our state was the first to approve of medical marijuana with Proposition 215 in 1996, we have lagged when it comes to implementing recreational marijuana sales. Still, as the largest state to enact such a law, many other states following suit will be watching carefully. The state’s Bureau of Cannabis Control (the Bureau of Medical Cannabis Regulation prior to the passage of Proposition 64) announced that with applications beginning to be submitted, we’re one step closer to the issuance of the first commercial cannabis business approvals.

The launch of the online system appeared to be going well, with officials saying visitors were mostly just exploring the site as opposed to actually sending in full applications. Some got started on an application, submitting certain bits of information, and then saved it to finish later. Temporary licenses, which are effective for four months, won’t be effective until the beginning of the year, and businesses must first obtain a local permit before they can successfully apply for a state-issued license. These temporary licenses cost $1,000 per application fee. A background check requirement is to be waived.  Continue reading

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As everyone knows, medical marijuana is illegal under federal law because it is listed as a Schedule I drug. While a majority of states and the District the Columbia have legalized medical marijuana, the federal government could theoretically (though not practically) crack down on these states and their residents at any time because of the Supremacy Clause of the U.S. Constitution.

LA Medical Cannabis Lawyer The Supremacy Clause of the U.S. Constitution essentially states that if Congress creates a law under the enumerated or implied powers afforded to it by the Constitution, that law is supreme to any state or local law. Whether congress has the power to act on in certain area has been subject to much debate and judicial decisions, but for the purposes of this blog post, we understand that congress has the power to regulate the licensing of drugs sold in the U.S. Continue reading

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