Articles Posted in California marijuana business lawyers

Wildfires raging in California are devastating lives and promise to have major effects on marijuana businesses marijuana businessthroughout the state. Many are saying the rampant fires are some of the worst in the state’s history, and are particularly devastating considering it was just last year that 1.3 million acres were annihilated by fires. An article from Rolling Stone is reporting so far there are 16 major fires tearing mostly through Northern California, with more than 14,000 firefighters battling the blazes. Northern California, of course, is a region replete with cannabis farms, making these fires particularly devastating to the state’s recreational marijuana industry, still in its first year.

Two of the blazes, which combined are dubbed the Mendocino Complex Fire, are at the heart of cannabis country. The Mendocino Complex Fire has already been declared the largest in California’s history. The previous record was set just last year, and at that time it was estimated 30 to 40 percent of the cannabis growers in the state were affected by the wildfires. It is unknown how a second round of fires will impact the industry, but it certainly is not positive. Within the last few weeks, More than 283,000 acres have been destroyed, including at least five greenhouses and countless outdoor crops. To the northwest the Carr Fire has taken out more than 173,000 acres, including several buildings belonging to one of the leading growers in the state. Continue reading

A new first for cannabis businesses recently took place, with the first initial public offeringcannabis business on a U.S. stock exchange by a marijuana producer. Ontario, Canada-based cannabis conglomerate Tilray went public on New York NASDAQ recently. The stock price spiked 30 percent in one day proving what we have been saying all along: cannabis is very, very good for business. According to a report from Quartz, investors rated the value of Tilray at time at $2.65 billion. Continue reading

When life hands you lemons, make lemonade … or in this case cannabis-infused water. Amarijuana business brewery in northern California called Lagunitas is doing just that with a line of sparkling waters it plans to sell in dispensaries. Drinks with cannabis are not common, but the brewery was able to achieve what other marijuana businesses have been afraid to tackle thanks to some creative thinking and close consideration of the law.

As our cannabis attorneys can explain, many in the beverage industry have been nervous to dabble in cannabis drinks out of concern for Controlled Substances Act, 21 U.S.C. Section 812. Because the law bans marijuana and lists it as a Schedule I narcotic, brewers worry that crossing the federal government could put their alcohol licenses at risk, even if they are abiding by state laws. That’s where ingenuity, creative problem solving and help from a knowledgeable legal team can help. Continue reading

U.S. Senate overwhelmingly voted to pass HR-2 Agriculture and Nutrition Act of 2018, also known as the Farm Bill, which contains (among standardcannabis business food policy legislation) measures to legalize industrial hemp sales, cultivation, and processing, according to a report from Forbes. Hemp is a variety of cannabis popular for its lower concentrations of THC and higher levels of CBD, the non-psychoactive component of marijuana. This has made it ideal for creating a variety of products, from plastics to biofuel to animal feed to yarn.

The federal ban on marijuana has made no distinction between these strains of cannabis and THC-laden versions, which has caused Americans to seek out everyday products that happen to include hemp from other countries. Finally, a bipartisan group of politicians, led by Mitch McConnell (R-KY), is standing up for this common sense action. Continue reading

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