Articles Posted in California marijuana business lawyers

California could learn a thing or two from those who paved the way for cannabis legalization. For example, Uruguay cannabis lawyerwas the first country to fully legalize marijuana, and the South American country has learned much as a result of trial-by-error. Cannabis was legalized there five years ago, but it wasn’t until last year that legal sales began. Since then, Uruguay has experienced a number of supply problems. Residents report having to travel long distances to licensed pharmacies, and sometimes once they arrive, the supply is dry.

According to a report from High Times, the issues are two-fold. First an excess in government oversight is creating supply chain issues. Only registered pharmacies can sell cannabis, and there have only been 14 licenses issued out of the 1,200 pharmacies in Uruguay. The government is also in charge of cultivation of marijuana, but only two cultivators have received licenses. Much like in California, when too many restrictions come between buyers and their marijuana, many consumers will choose black market options, even though there are legal options.

Second, the head of the Uruguay National Drug Council said there is an issue of farming capacity. Farming cannabis on such a large scale was not common, and there certainly was not a guidebook available. This led to a learning curve for cultivators to catch up on technology and processing on a mass scale. The two cultivators have just recently reached the allowed capacity of 4 metric tons per year. Continue reading

Time is almost up for marijuana business owners to achieve full compliance of testing and packaging regulations. Forcannabis business six months, businesses have enjoyed a grace period that allowed them to sell marijuana products that were not in total compliance so long as they included a label indicating any safety standards the product did not meet. As of July 1, owners must clear their shelves of all product that does not meet regulations, resulting in an influx of cannabis sales in the month of June and could lead to an impending shortage, according to the Orange County Register.

When Proposition 64 went into effect Jan. 1, it brought with it new sets of rules in regards to recreational marijuana sales. Because marijuana products were already in production long before then, having served the medical marijuana market for almost 20 years, California imposed a grace period in which production and labeling regulations could catch up. This led to retailers bulking up on less expensive products that were not in total compliance at the end of 2017 to keep their stores well stocked in the first half of the year. Now they will need to clear their shelves of any remnants of that stock. Meanwhile, owners will be clamoring to replace that inventory with new products that meet regulations.  Continue reading

One of the biggest obstacles for any farming community is how to best control pests. Each plant attracts a differentcannabis business set of insects and animals and requires special care to deter wildlife from harming crops. Farmers must also take into consideration how pest-control methods could harm natural surroundings and affect the people who will consume the product. Cannabis farms are no different, though they lack the years of shared wisdom other farmers have gathered. In fact, cannabis farmers have to be even more thoughtful in some ways about what they use because their end product isn’t easily washable like an apple. Although it wouldn’t seem a cannabis attorney would be your first consult on this front, it’s worthwhile to review it with your counsel so you are sure you’re abiding local and state environmental regulations.

The California Department of Pesticide Regulation, has been tasked by California’s Medicinal Adult-Use Cannabis Regulation and Safety Act to provide guidelines for pesticide use in cannabis farming. The department said there is not a pesticide product federally registered for use specifically for cannabis farmers. However, there are plenty of pesticides that can legally be used on cannabis so long as they meet certain criteria. Continue reading

It’s time for California to take a serious look at taxes that state and local governments are imposing on cannabis cannabis business lawyersbusiness owners. Some legislators agree, but others think the higher taxes should stand, at least for a while longer. For now, the current tax rate will remain, as an assembly bill addressing cannabis taxation failed to advance out of committee, according to an Associated Press report.

AB-3157 seeks to amend The Control, Regulate and Tax Adult Use of Marijuana Act, which currently sets the excise tax rate at 15 percent of the average market price. The new proposal would drop the excise tax rate to 11 percent and suspend the cultivation tax, with each expiring June 21, 2021. Right now, when excise and cultivation taxes are combined with sales tax, county, and city taxes the total tax rate can be almost 50 percent. Some fear this high of a tax rate is driving people to purchase marijuana on the black market, instead. There is some compelling evidence to back that claim. Continue reading

In a big step toward the normalization of cannabis, the 2018 NorCal Cannabis Cup in Santa Rosa, Calif., has beenmarijuana business granted a recreational marijuana license. In the past, the event was only a gathering of people who appreciated cannabis, with booths, activities, food, music, and marijuana-related products, but not the real deal. Now marijuana businesses and consumers alike can enjoy the thing they all have in common, allowing the community to share cannabis goods and knowledge on a new scale.

This is only the second event in the U.S. that allowed the sales and consumption of cannabis, according to a report from High Times, host of the event. The Central Valley Cannabis Cup in Sacramento in early May was the first event to receive such a license and was also hosted by High Times. While the first event was groundbreaking, in some ways it is the second event that is a sign of times to come. Attendees and marijuana businesses at the Central Valley Cannabis Cup proved that an event of this kind can be run safely and responsibly, making it possible for more events in the future. These gatherings can also have a major impact on local economies, bringing in tourists and vendors to the area. This is, of course, in addition to the publicity and money-making opportunities available to businesses inside the event. Continue reading

The fight for marijuana legalization is turning a corner in the U.S. Nowhere is the change more evident than inmarijuana business Michigan, where recently an anti-marijuana action committee has flipped its stance in an attempt to try to gain control of state regulations, according to a Detroit Free Press report. The group, The Committee to Keep Pot Out of Neighborhoods and Schools, has been fighting a ballot proposal to legalize recreational marijuana in the state. However, as it is becoming more clear the initiative has growing support, the group is trying a different tactic: encouraging state legislators to fully legalize marijuana by passing an adult-use bill.

As our attorneys can explain, those opposing recreational cannabis in the state see the writing on the wall. They know if they allow the issue to appear on the November ballot, it has a strong chance of passing. However if group members can convince the Legislature to take up the initiative and amend it with strict regulations akin to the current medical marijuana guidelines, they are hoping to get a law on the books that is more restrictive than what voters might pass. One of the key differences would be how licenses are issued. Medical marijuana establishments currently obtain licenses through a board put in place by the governor, as well as House and Senate leaders. The ballot initiative would instead put licensing in the hands of the Licensing and Regulatory Affairs Department.  Continue reading

The continued expansion of legalized marijuana in states is leading to one surprising result: overproduction of cannabis businesscannabis. Oregon in particular is reporting an excess in cannabis production, which is driving down the price of marijuana at dispensaries across the state, according to Associated PressAs a result, growers are exploring more options, including hemp (a low-THC strain of cannabis used in industrial goods) and CBD oil (made from the non-psychoactive compound in marijuana, cannabidiol).

It’s hard not to recognize the irony in this latest advancement: while hemp is a benign, useful resource that makes excellent, durable fabric, paper products, and oils, it was marijuana that helped usher it back into the spotlight. Marijuana has now been legalized in 29 states and Washington, D.C., at least for medical use with a handful also allowing recreational. This is in defiance of federal regulations prohibiting the sale or use of marijuana. California was the first to allow medical use with the Compassionate Use Act of 1996. It wasn’t until 2014, however, that the Agricultural Act, Sec. 7606 allowed agricultural departments and higher learning institutions to start cultivating hemp for research. Senate Majority Leader Mitch McConnell (R-KY) recently spoke in favor of a bill that would give power over hemp regulation to the states. Continue reading

Marijuana laws in Ohio have experienced a bit of a failure to launch. In 2015 a legalization ballot measure was votedmarijuana regulations down, largely due to a scare campaign that positioned the 10 pre-designated cultivators as a monopoly.  In 2016, HB-523 was signed into law by Gov. John Kasich that set up a process for medical marijuana in the state. Since then, however, the initial phase has been a lumbering one. Advocates remain optimistic, though, pushing now for a state constitutional amendment to legalize recreational marijuana.

On the medical front, Ohio’s program is under scrutiny in court, as a judge in the Franklin County Court of Common Pleas is determining whether or not to delay licensing for cultivators, and potentially the launch of the program. According to Cleveland.com, one grower applied for a license and sued the Ohio Department of Commerce after it was denied, claiming there was no appeals process as promised. Reported errors in the scoring of applicants and complaints about officials not following their own rules in the selection process have led to other lawsuits. With only 12 initial promised licenses for large-scale cultivators, the spots are highly coveted. Continue reading

Spice, K2, synthetic marijuana: whatever you call it, we know these alleged cannabis knockoffs have about as muchcannabis business in common with the natural drug as a circle to a square. Lawmakers have long been chasing down these dangerous substances, to no avail. But the Illinois State Senate is taking steps to close loopholes that manufacturers have been manipulating once and for all, according to Chicago Tribune.

SB-2341 would expand the list of Schedule I controlled substances to include all synthetic cannabinoids not approved by the U.S. Food and Drug Administration. This is a departure from current methods to control the substance, which has largely involved outlawing by formula. As our cannabis business attorneys can attest, this has so far been a fruitless system of control because each time a formula or chemical is outlawed, manufacturers alter it enough that it qualifies as a new substance. Just like that, a new synthetic cannabinoid is back on the market, but not necessarily any safer. The new law, if passed, would put the onus of proof on the manufacturer that a synthetic cannabinoid is safe rather than government officials proving the substances to be dangerous after they have already hit the market.  Continue reading

Some local governments have appeared hell-bent on banning or strangling the budding cannabis industry. It’s encouraging in this light to see some leaders embracing the change and making strides to make this a more cannabis-friendly community.marijuana business

The Napa Planning Commission recently endorsed reducing the distance a cannabis business can set up shop to 600 feet from a school or place where children congregate, and even recommended easing up on that rule in instances where a natural barrier would prevent direct access, such as a waterway, according to Napa Valley Register.

For many people, change can be a very scary thing. Often, though, such fears are rooted in lack of education and the feeling of losing control. Once we see new ideas in action, we sometimes wonder why it took us so long to change in the first place, and realize we wouldn’t want things to go back. We see the effects of this sentiment throughout California. Since the passing of Proposition 64, there has been a great deal of caution on the part of cities to slow down change as much as possible. Prop 64 and the follow-up Medicinal and Adult-Use Cannabis Regulation and Safety Act very thoughtfully laid out guidelines that would allow marijuana businesses to begin sales of recreational cannabis, and, in the case of MAUCRSA, brought medical marijuana sales under the same umbrella of rules. These guidelines painstakingly established regulations that would encourage cannabis businesses to operate legally while easing fears of residents. Continue reading