Articles Posted in California marijuana business lawyers

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

The Cannabis Law Group is prepared for the onslaught of challenges that face the residents and cannabis businessquestion-3-1146620-639x830-231x300 owners of California with the implementation of the Adult Use of Marijuana Act at the start of this new year, legalizing recreational marijuana.

Commercial sales were legalized in California as of Jan. 1, but the exact date of implementation varies from region to region based on local laws and ordinances. Some areas have even decided to maintain a ban on recreational use, such as Kern County, while others have not yet decided the fate of their particular city or region yet.

Officials such as Lori Ajax, chief of the Bureau of Cannabis Control, explain that this complicates the rollout process, making it unclear to citizens as to what to expect throughout the state in the months ahead. Continue reading

While there are lingering concerns around the cannabis industry, with the federal government scrutinizing statemarijuana attorney legalization measures and uncertainty about the effects of tax reform and unemployment rates, there is still a lot of optimism surrounding marijuana industry stocks in the U.S.

Cannabis stocks saw a spike around the holiday season, bolstered by an increase in spending overall in November of 2017. Some reports even indicated marijuana and marijuana products were a popular gift this year. Our marijuana attorneys urge you to check local laws and only purchase, give and transport commercial products legally.

With reports showing possible economic growth in the U.S., it could mean a continued upswing for an ever-expanding marijuana market. The right factors seem to be in place to potentially see more people investing in the industry and more consumers with expendable income to buy recreational marijuana and related products.

This trend is expected to continue with California recently opening up legal recreational marijuana sales in the state, thanks to the Adult Use of Marijuana Act, ushering in the potential for a great deal of commerce in one of the nation’s biggest markets. Cities across the state were able to decide for themselves whether to participate and how, with major markets such Los Angeles throwing their hats in the ring.

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Thanks to Prop. 64, the state of California is considering applications for licenses forLos Angeles Recreational Marijuana Business Lawyers recreational marijuana businesses beginning Jan. 1, 2018.

Authority rests with local governments to decide whether to allow recreational marijuana sales to go into effect in their area, giving them power to either issue bans or develop policies for businesses to operate.

The Long Beach City Council is the latest to join the movement. The council recently voted to move ahead with developing policies for recreational marijuana businesses to operate in Long Beach.  Continue reading

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

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

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

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.

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