Articles Posted in California hemp farmer attorney

As Los Angeles hemp lawyers, we fully recognize that California, despite being the first state in the country to legalize marijuana, has not historically been the friendliest to hemp producers, distributors, and retailers. We began seeing a real shift on this front last year with the passage of AB-45, which sought clear rules for the regulation of CBD manufactured goods and sales. A few months ago, the California Department of Public Health issued its proposed regulations under the new law. And now, it seems we have a clear set of approved hemp industry regulations in California, and the state is prepared to accept applications to become licensed operators.hemp manufacturing

The CDPH’s Food & Drug Branch issued notice earlier this month to industrial hemp product manufacturers and extractors that it would be accepting applications and fees for the production of in-state hemp products, as well as in-state and out-of-state extracts.

Permission to legally manufacture, pack, or hold industrial hemp products and extracts requires:

  • Authorization from the Industrial Hemp Enrollment and Oversight agency.
  • Registration with the department for the applicable food, cosmetic product, or processed pet food.

Those who are making inhalable hemp products are solely required to obtain authorization from the IHEO department.

As our Los Angeles hemp lawyers can explain, hemp growers, producers, distributors, and retailers need to know that their products are going to be subject to strict regulations governing production, testing, labeling, and warehousing to ensure the safety of the products. State law (specifically, HSC 110140) authorizes inspection of any industrial hemp facility or operation by the health department in order to ensure state law and regulation compliance.

Companies that are submitting their applications to the FDB may want to consider having their attorney do it for them, or at least review all materials before submission. You don’t want your application to be turned down on a technicality, but there are many technical considerations that apply. Businesses must submit not only their application and the appropriate fees to the correct authority, but also provide a wealth of supporting documentation. Continue reading

A growing number of U.S. companies selling hemp products and hemp-derived CBD products are forming international partnerships with suppliers. These business agreements, which frequently include arbitration clauses, must be carefully drafted by an experienced corporate CBD attorney. As a recent ruling by the U.S. Court of Appeals for the Eleventh Circuit showed, arbitration agreements and awards are likely to be enforced. Los Angeles corporate CBD lawyer

Why Cannabis Companies, CBD Corporations Use Arbitration Agreements

As our Los Angeles corporate CBD lawyers can explain, many cannabis company contracts contain arbitration clauses. Some examples include sales contracts, operating agreements, employment contracts and intellectual property licenses. Dispute resolution should never be an afterthought, so this provision is important. Continue reading

In 2018, the federal government took several steps to legalize the manufacture and distribution of industrial hemp, the part of the cannabis plant that only contains trace amounts of THC (the psychoactive component) and which has a number of industry uses from food to clothing to building materials. Unfortunately, thanks to bureaucracy in the rulemaking process, there remains a fair amount of confusion that leaves drivers and carriers that ship hemp from state-to-state vulnerable to legal trouble.hemp lawyer Los Angeles

As noted by the Commercial Carrier Journal, drivers face potential criminal action if they navigate through a state that doesn’t have clear hemp rules in place that align with the Farm Bill of 2018. If a state law does not allow hemp, our Los Angeles hemp lawyers would advise farmers and carriers to map their routes accordingly.

There are published cases of at least half a dozen drivers over the last 18 months being arrested and charged with felony counts of marijuana trafficking and distribution. There are also many cases of drivers hauling hemp that is mistaken for marijuana. Continue reading

California’s hemp industry is a complex one, regulated by a patchwork of rules that can vary dramatically  from county-to-county.hemp farming attorneys

As Orange County hemp business lawyers can explain, despite Congress’s legalization of non-psychoactive hemp (and its CBD derivative) by way of the 2018 U.S. Farm Bill, allowances for actual production of the crop remains in the hands of local jurisdictions.

California, despite being on track to have the largest legal marijuana market sales in the world, remains one of the last remaining strongholds against production of legal hemp, which, like marijuana, is derived from the cannabis plant. Across the state, entrepreneur efforts to grow hemp are in full force, and the good news is several counties have passed ordinances that will give farmers the permission they need to kick start their hemp-growing ambitions. 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 lawyerCalifornia’s unlicensed farmers in Humboldt County are on notice, with a new crackdown on cannabis growing now in effect. After issuing 1,500 provisional cannabis licenses, state and local authorities are increasingly pursuing farmers for operating without permits.

And it’s not what we’ve seen in years past. Growers need not fear raids from Sheriffs in Humboldt, as much as they should civil action. That’s right, fines are now being issued in the amount of $10,000 per day, for each violation, capping out only at $900,000. And if that isn’t deterrent enough, next comes property liens and forfeitures.
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California marijuana farmers are facing a crisis. Currently, all 9,464 state issued temporary cannabis cultivation licenses, have expired. Meant to be replacing those, for businesses continuing to meet the required regulations, are either provisional or permanent annual cannabis business licenses.

The catch though, the California Department of Food and Agriculture (CDFA) is yet to show its ability to approve those provisional or permanent licenses, at the same pace applications are being lodged.

California Cannabis License Attorney

The backlog on approvals may be due to the complexity of the licensing application process itself. Tellingly, by mid July 2019, only 2,053 provisional licenses and 230 permanent licenses had been granted. As it stands, when applying for prospective licenses, cannabis farmers are expected to demonstrate compliance with the stringent California Environmental Quality Act (CEQA), as well as submit:

  • Background checks;
  • Surety bonds;
  • Real property documents;
  • Detailed site plans;
  • Farm management practices;
  • Waste management protocols;
  • Security procedures; and
  • Pesticide measures.

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Could hemp wood become the next market revolution in sustainable products? Some assert it could be manufactured as an alternative – perhaps even a superior one – to polymers, fabrics, paper, soy, corn, wood – maybe even motor vehicle components.hemp lawyer California

Los Angeles hemp business attorneys know it may be something of a misnomer to refer to these uses as revolutionary, as the fibers derived from industrial hemp (one of two forms of the cannabis sativa plant) have been used for many thousands of years by civilizations for production of paper, cloth materials and even fuel. Unlike it’s cousin marijuana, neither hemp nor its derivative CBD contains the psychoactive ingredient tetrahydrocannabinol (THC) known for producing the “high.” That is the primary reason it was removed from the list of narcotics banned per the U.S. Controlled Substances Act, while marijuana remains.

Production of hemp materials has been a mainstay in parts of Europe and China, though in U.S. and many other parts of the world, its use slowed or halted entirely thanks to widespread marijuana prohibition. The current shift is not only due to the “green rush” set off by the 2018 U.S. Farm Bill that legalized industrial hemp, but also by the extreme ecological damage inflicted by polymers and fossil fuels.

Hemp cultivators and manufacturers will need to be cautious as they enter this new domain not only to ensure quality but also compliance with relevant state and federal regulations, including in marketing. Continue reading

Dozens of bipartisan Congressional leaders signed onto a letter pressing top law enforcement agencies for faster action in approving marijuana cultivation for government research. The Associated Press reports the letter advocated for more analysis of the medicinal properties, benefits and potential risks of the drug.marijuanaresearch-300x200

Orange County marijuana farming lawyers know this would be a substantial first step to decriminalizing cannabis at the national level, a move that could have significant implications for state-legal dispensaries. Because cannabis remains illegal under the U.S. Controlled Substances Act – especially in the highest-risk classification – California marijuana farms, production centers, labs, landlords and ancillary businesses know the Cole Memo is little more than a tenuous truce. They are largely at the mercy of political whims, and while it seems certain legalization (or at least lower classification) will be inevitable, the question is: When?

A Schedule I narcotic like marijuana is considered by law to be extremely dangerous, highly addictive and have no medicinal value. Even those opposed to federal legalization for recreation know this description is absurd. The problem is its classification has prevented reputable study for decades. Yet the government has argued it doesn’t have enough data to eschew the Schedule I categorization – so it becomes a catch-22. Continue reading

So much weed is being grown in California, it could create a bubble that will soon leave us set up for bust. There are too many marijuana farms, too much product and not enough demand. It has the potential, according to Vessel Logistics, to result in an an industry collapse. This is obviously something to which marijuana businesses and our Los Angeles marijuana business lawyers are paying close attention. cannabis lawyer L.A.

The research firm/marijuana distribution company, crunched the numbers to learn nearly 1,150 acres of cannabis farms have a permit by the state. Those farms can generate an estimated 9 million pounds of the crop annually, yet the wholesale marked for the drug in the state – just realistically at this point – is about 2.2 million pounds. That means even if cannabis farms cut their production by half – we would STILL have an overstock.

In a typical trade situation, we’d look to offload that excess to markets in other states selling less. But we’re forbidden to do that by federal and state law. The drug remains a Schedule I narcotic, which our Los Angeles marijuana lawyers know that neither farmers nor distributors can ship this product across state or international lines without breaking serious felony drug trafficking laws – even when those states allow the drug to be used and sold legally.

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