Articles Posted in California marijuana business lawyers

There are many reasons California cannabis industry entrepreneurs these days might feel their situation a bit bleak. The ever-present threat of black market sales are encroaching on their profits. Excessive regulations and taxation have left many companies stretched incredibly thin. A patchwork of confusing local laws have proven difficult to navigate. Some large cannabis companies have been enacting mass layoffs to help cope with the fact that revenue has fallen far short of initial projections. All the while, the drug remains an illegal Schedule I narcotic at the federal level. California marijuana lawyer

And yet, there is a fair bit of good news on the horizon for new pot shop owners.

The marijuana legalization movement continues to gain significant ground both in the U.S. and abroad. Investors, manufacturers and researchers are paying close attention, with more than a few continuing to take on the potential risks. The legal marijuana industry was estimated to be worth some $10.4 billion last year, employing more than 250,000 workers nationally. There are now 33 states that have moved to legalize the plant for medicinal purposes and 10 states – including California – have legalized the drug for recreational sales and use. Continue reading

The Federal Bureau of Investigations is examining possible public corruption tied to the local marijuana industry in Sacramento after federal prosecutors indicted four for reportedly directing overseas money into both campaign coffers and cannabis companies. Did public officials accept bribes in return of favorable licensing to entrepreneurs in a fiercely competitive legal marijuana market?cannabis corruption attorney

That’s the question being asked of marijuana industry insiders in the region. High Times reported the FBI has declined to confirm or deny the existence of such an investigation. Yet in an FBI podcast broadcast titled “Corruption Threat Emerges in Marijuana Industry” in mid-August, supervisory special agents indicated unequivocally they had noted an increasing threat of public corruption in the burgeoning marijuana market in Southern California. They explicitly sought tips that might help direct such investigatory efforts.

Another investigation by city officials in Sacramento is examining how one cannabis company owner and those associated with him were able to score eight marijuana dispensary licenses in the city – roughly one-third of the allowable number of sellers within city limits. The man reportedly donated handsome sums to numerous local politicians in the city while they were running for election and re-election. Continue reading

The chemistry of cannabis is something about which we still have much to learn. That point was underscored again recently when chemists testing the THC content of marijuana edibles revealed there is something about chocolate that seems to skew the potency tests. cannabis chemist lawyer

The California Bureau of Cannabis Control requires not only that edible cannabis products be tested for the presence of pesticides and other contaminants, but also that their THC content be tested and accurately labeled on the project. Single-serving edibles sold in California can contain no more than 10 milligrams of THC, per the BCC. Packages can contain no more than 100 milligrams of the psychoactive ingredient.

But if your edible product contains chocolate, the labels on your marijuana products may not be accurate. Chocolates labeled as containing 10 milligrams of THC may in fact contain far more, which is a possible public health concern, as well as a liability for marijuana edible manufacturers and retailers.

The newest research on how chocolate interferes with the pot potency tests was recently presented at a conference in San Diego, representing just one of the ways in which chemistry is increasingly a factor in marijuana product manufacturing and sales. Continue reading

Drive-thru cannabis dispensaries are banned in California, but thanks to a small loophole in the law, Southern California is getting its first in, in Desert Hot Springs. It is the second one in the entire state. Los Angeles marijuana lawyer

The state’s recreational cannabis law does expressly prohibits marijuana drive-thru operations – unless a dispensary applied for a permit prior to June 2018, when Prop. 64 rules were finalized. Harborside cannabis dispensary filed its application for a drive-thru shop earlier that year, so it’s allowed to proceed with its marijuana business plan.

Approaching customers will have the benefit of a large, electronic menu, where they can place orders for edibles, vape cards and pre-rolled joints – the same way one might order a Happy Meal (except you will have to show ID to prove you are of age). Passengers, however, will not need to produce identification.

Desert Hot Springs, located in the Coachella Valley geographic region of Riverside County, is a great place to start, considering it was one of the first to welcome legal recreational marijuana with open after Prop. 64 passed in 2016. (Eighty percent of California jurisdictions have decided not to allow cannabis to be sold in their jurisdictions.) Continue reading

Washington State has imposed a temporary ban on flavored THC vaping products in emergency legislation passed rapidly after the U.S. Centers for Disease Control and Prevention reported to have found a link to vaping and serious illness.thc vape attorney

The emergency rule, following an executive order from the governor, was made the same day the CDC announced there was a possibility of a breakthrough in the effort to ascertain the cause of vape-related illnesses.

As reported by The Spokesman-Review, the ban is in place for the next 120 days. One cannabis vaping company filed a lawsuit against the state department of health, seeking at least a temporary restraining order to halt the ban. A judge denied the request, and it’s unclear whether the plaintiff vaping business will file an appeal. The next hearing in the case isn’t slated until February. Continue reading

State regulators have suspended hundreds of marijuana business permits, in effect halting some 5 percent of the state’s legal cannabis business operations, disrupting supply chains and retail/distribution networks statewide. Los Angeles cannabis business licensing

Some 400 companies have been ordered to halt all transactions until they ensure their licenses are brought up to “active” status.

The notices were issued by the California Bureau of Cannabis Control on Nov. 1st, directed to delivery services, retailers, microbusinesses and distributors, informing them they will no longer be allowed to lawfully conduct business until they implement the appropriate track-and-trace system credentialing and training mandated by the state.

The state agency oversees more than 2,500 marijuana businesses, each of which hold either an annual or provisional license. Meanwhile, the California Department of Public Health is in charge of handling oversight of more than 930 marijuana manufacturers and the California Department of Food and Agriculture is responsible for managing regulations and oversight of more than 3,800 cannabis farmers. Continue reading

The “stoner” stereotype has plagued California cannabis businesses since before the drug was legal as medicine in the late 1990s. But many Los Angeles marijuana businesses are looking to re-brand their images in the hopes of better reflecting the type of business they do. marijuana advertising

Branding is valuable for any business, but in the case of marijuana, the benefits are industry-wide because it can help to combat archaic conventional perceptions about marijuana as a product. Formulating a professional, unified brand can help address this – and allow companies to carve a name and a niche in a fiercely competitive market.

On the flip side, even where it’s legal to sell marijuana, it’s tough to advertise it. As our Los Angeles marijuana advertising attorneys can explain, marketing cannabis brands and marijuana dispensaries is rife with hurdles.

Hurdles to California Cannabis Advertising

A recent poll from Pew Research Center reveals nearly 7 in 10 Americans think marijuana should be legal. There’s a broad market of potential consumers within your reach. But when it comes to advertising, marijuana businesses need to tread carefully. Continue reading

Cannabis business attorneyState regulators recently suspended some 400 Californian marijuana business licenses, for failure to participate in compulsory tracking and tracing system trainings, and weeks later, approximately four per cent of the state’s permits still remain in limbo.

While a vast number of permits remain suspended, the total number has fallen. State licensing data shows that of those 407 permits initially put on hold, 277 are yet to have their status returned to “active.”
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In a move that has shocked the cannabis industry, California is hiking legal marijuana business taxes. This decision comes on the heels of many licensed marijuana companies imploring the state to reduce such taxes.

But with legal storefronts now set to face cannabis taxes nearing 50 per cent beginning January 1, the move is being seen by some as another reason pot customers will choose the Golden State’s already thriving black market. Cannabis business analysts estimate that for every dollar spent in California’s legal pot market, $3 are being spent on the illicit market.Cannabis business attorneys

In a statement released by the California Cannabis Industry Association, members are said to be both outraged and stunned by the decision. The group believes increased cannabis business taxes will only make trading even more difficult for those operating legally, who are already fraught with heavy fees, stringent regulation, local community bans on cannabis cultivation and sales, and a flourishing black market.
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police lineCalifornia vaping brand, Kushy Punch, has had its cannabis license revoked after state cannabis regulators raided its premises and found the company to be conducting business from a facility that it was not licensed to use.

Last month, California cannabis regulators received a tip off suggesting the company was running illegal business activity, and on inspection of the unlicensed Canoga Park facility, authorities seized cannabis products worth $21 million. The products were held by a company called Verticle Bliss, also operating as Kushy Punch when manufacturing and distributing cannabis products.

The Bureau of Cannabis Control (BCC) reported that approximately 7,200 unregulated vape cartridges were seized in the raid.
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