Articles Posted in California marijuana business lawyers

California marijuana supply shortages have been of mounting concern, marijuana businessstemming 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

For many years now, attorneys with the Cannabis Law Group in California have beencannabis business working with medical marijuana operations obtain compliance with the law. More recently, we’ve been on the forefront of helping recreational marijuana businesses align their operations with the regulatory parameters set forth in Proposition 64 Jan. 1, as well as those guidelines established by local governments.

However, the level of success a business owner can achieve requires help from all levels, including government officials setting regulations and tax rates. Many owners face a broad range of challenges when transitioning from medical to recreational sales or opening a business for the first time under the new adult-use standards.

Rob Bonta (D-Oakland) and Tom Lackey (R-Palmdale) want to ease some of those pains. They have introduced Assemblybill 3157, which would reduce the state marijuana excise tax to 11 percent for three years. The tax currently sits at 15 percent. The bill states: “The cumulative tax rate imposed by existing law is substantial and undermines the legal regulatory system if high taxes cause prices to far exceed that what is found on the black market.”

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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.marijuana business

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.

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Californians have known for decades the benefits of marijuana, especially as a treatment for certain medical ailments. Now the state is reaping themarijuana business benefits of added tax revenue from recreational marijuana businesses pouring into cities that have chosen to legalize marijuana under Proposition 64.

In addition to taxes flooding into communities, so too are jobs, and people are answering the call. Recently in Sacramento, the Cannabis Job Fair had people standing in lines out the door, waiting for up to two hours, according to KCRASacramento, prompting planners to already set their sites on a bigger event next time around.

With such a burgeoning industry, workers of all levels are needed for success. The marijuana industry offers opportunities for those with skills in cultivation, testing, distribution, horticulture, production, kitchen work, sales, management, and more. But they also need people savvy in the typical tent poles of any industry, including finances, accounting, analytical tracking, marketing, and social media. That’s on top of the farmers across the state investing their abilities and resources in the cannabis market. This creates a wealth of possibilities for a diverse cross-section of people across the socioeconomic spectrum. Continue reading

Cannabis business owners want to be able to operate in full compliance with California law and function as a legitimatecannabis business business. They are open to paying taxes and following the rules. However, they are facing many barriers to achieving this end goal while operating a successful business – one of the biggest being the law itself.

This message was delivered loud and clear at a recent meeting in Ukiah, Calif., which included government officials and Northern California marijuana industry leaders in the first gathering of its kind, according to The Press Democrat.

The Sonoma County agriculture commissioner used this forum to address the seemingly endless patchwork mix of state and local regulations to which marijuana businesses must adhere and how detrimental they have been to established cultivators who want to operate legally under Proposition 64. Known as the Adult Use of Marijuana Act, Prop 64 went into effect earlier this year and allows adult-use marijuana legal in the state – but only for counties and cities whose leaders chose to adopt the law. Local governments have the right to continue to ban adult-use marijuana and to regulate it as they see fit.

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While many Californians are finally enjoying the freedom to use recreational marijuana, some are questioning how safe their private information is recreational marijuanawhen they make a purchase. When Proposition 64 went into effect Jan. 1, adult-use marijuana became legal in the state, with local governments able to set up their own regulations or bans.  But there are currently loopholes that threaten the privacy of customers.

Assembly Bill 2402 seeks to tighten those loopholes. Assemblyman Evan Low (D-Silicon Valley) introduced the bill, which would prevent cannabis retailers from selling customer information to third parties. It would also protect customer information from employers looking to investigate employee use, according to Capital Public Radio. It mirrors similar rules that are currently in place for medical marijuana users.

Because you must be 21 or older to purchase cannabis in California, dispensaries require a valid ID to prove your age. Though it is not mandatory, some dispensaries will keep a record of the information on file. Some use this information for marketing purposes. Many also keep such records in order to monitor how much someone is purchasing in a day, according to Politifact. This could be necessary if a business needed to prove they are in compliance with state law, which caps individual recreational marijuana sales to one ounce per day. Continue reading

While many politicians and other leaders continue to wring their hands, hemming and hawing ad nauseum over the best way to regulate the growing marijuana businessnumber of marijuana businesses, University of California San Francisco says the answer is right under our noses.

According to a study by the university published in the Journal of Psychoactive Drugs, regulators need look no further than the tobacco industry for inspiration to create best practices for adult-use marijuana. By using what the tobacco industry has learned by trial and error over the years, the marijuana industry can avoid early mistakes and take a proactive approach.

Examples in the study include implementing clear labeling with conspicuous warning labels, avoiding marketing that appeals to minors, and restricting product potency. Continue reading

One of the beacons of hope for medical marijuana businesses during these uncertain times has been Rohrabacher-Blumenauer, an amendment thatmedical marijuana lawyers blocks the Justice Department’s ability to spend money on prosecuting medical marijuana operations that are compliant with their state’s relevant laws.

However, this amendment is not a permanent structure and is put in peril every time the government shuts down and Congress must pass a spending measure. Given the tumultuous nature of the current budget debates at the federal level, this has already happened multiple times this year. Each time Congress goes for a vote, the medical marijuana community must hold its breath and wait to see if the amendment will be included in the next budget parameters. That’s no way to treat respectable business owners.

So far it has survived each round, but with another vote coming up in March, we’re not in the clear just yet, according to Leafly.

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Three weeks after recreational cannabis sales officially became legal in California, select Los Angeles businesses were allowed to open their doors for Los Angeles recreational cannabis businesscommercial sales. While the Adult Use of Marijuana Act made recreational sales legal in the state Jan. 1, it is still up to city and county governments to decide for themselves whether they will issue a ban or set up their own guidelines and regulations. Implementation of guidelines takes time, and some cities, Los Angeles included, were not able to get them in place before the rollout at the beginning of the year.

Los Angeles City Council approved commercial marijuana sales early in December, and by mid-January about two dozen businesses in the city had been granted temporary permits. Three of those businesses had state approval secured and were able to open for business that week, according to an NBC News report. More regulations will have to be met down the road to achieve legal status permanently, the Los Angeles Department of Cannabis Regulation told NBC. Continue reading

As of January 1, California rolled out Proposition 64, The Adult Use of Marijuana Act, making recreational marijuana legal in the state. However, themarijuana legalization attorneys new law did not automatically make cannabis legal everywhere in California. It is still up to local governments to regulate, restrict, and ban as they see fit or to open the floor to residential votes. Therefore, many Californians have been disappointed to discover their local laws are prohibitive to using, growing, or distributing marijuana.

Even more disappointing, though, is when the law changes in a region that initially legalized marijuana, especially for citizens who have already made significant investments in the cannabis industry.

This is the case in Calaveras County in Northern California, where the board of supervisors voted 3-2 to ban commercial marijuana. The board included four newly elected members who campaigned last year on promises of banning marijuana, according to an article from Associated Press. The decision will have broad-sweeping effects on some 200 cannabis farms that will now have only three months to shut down operations. Continue reading