Los Angeles Marijuana Dispensaries

August 29, 2018

Report: California Recreational Marijuana Stores Lacking

Economics 101 teaches us about supply and demand, but you don’t need a business degree to see that the supply of marijuana business lawyers recreational marijuana retailers is way lower than the demand in California. For every 100,000 residents, there is less than one store available that sells adult-use product, according to recent data released by Marijuana Business Daily. Furthermore, most of those stores are crammed into a few select areas, due to the fact that Prop 64 allows local governments to opt out of allowing sales or cultivation, though they are not allowed to ban personal use. To be more precise, there are 482 cities in California, and to date, only 70 of those cities allow retailers to sell recreational marijuana.

Comparatively speaking, this puts California not only behind its own estimates for store fronts and sales figures, but also behind its peers. It’s been nine months since recreational marijuana sales began in the state. At the nine-month mark in Colorado, the state had awarded 242 licenses. Considering the state has a smaller population than California, this put the total at 4.3 stores per 100,000 residents. Now, Colorado has 10 times the amount of stores per capita, while Oregon currently has 15 times more recreational marijuana stores per person. Continue reading

June 19, 2018

Long Beach Finally Passes Recreational Marijuana Business Policies

By Cannabis Law Group

Long Beach will soon be the next city in Los Angeles County to embrace recreational marijuana business plan marijuana after its city council voted overwhelmingly to regulate industry operations. The council passed a series of amendments that will set guidelines for cultivators, testing labs, distributors, and dispensaries in the city, according to an article from Press-Telegram. The 7-1 vote reflected a strong support from council, with the support of the mayor as well as the residents who voted for Proposition 64 in November 2016.

City staffers estimate the move could bring in about $750,000 in taxes from recreational sales next year and a whopping $4.5 million from medical marijuana taxes. City officials also hope to stimulate the economy with a clause that requires collective-bargaining agreements with United Food and Commercial Workers 324, the union that represents cannabis workers, raising the bar on the quality of jobs provided by local establishments. Continue reading

May 29, 2018

The Taxman Cometh: California Cannabis Businesses Unlikely to See Relief

By Cannabis Law Group

It’s time for California to take a serious look at taxes that state and local governments are imposing on cannabis cannabis business lawyers business 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

May 14, 2018

Ohio Marijuana Legalization Struggling But Still Alive

By Cannabis Law Group

Marijuana laws in Ohio have experienced a bit of a failure to launch. In 2015 a legalization ballot measure was voted marijuana 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

May 13, 2018

Illinois Putting Stop to So-Called Synthetic Cannabis

By Cannabis Law Group

Spice, K2, synthetic marijuana: whatever you call it, we know these alleged cannabis knockoffs have about as much cannabis 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

May 12, 2018

Fresno Law Enforcement Doesn’t Kid Around With Marijuana

By Cannabis Law Group

Despite legalization of recreational marijuana sales earlier this year, Fresno remains one of the communities wherein marijuana business cannabis-related activity is still banned: No recreational sales, no medical sales, no commercial growing, no testing, no distribution, no manufacturing. Residents can grow indoors for personal use or if they are a caretaker, but that’s it.

Still, officials know of more than 70 unlicensed sales operations in the city. Law enforcement agencies are stretched thin, however, so they have to prioritize their time and resources.

They recently focused their efforts on one specific dispensary, according to High Times, which was reported to be selling high-potency cannabis candy wrapped in packaging that was appealing to children. Agents seized 150 pounds of the candy and more than $200,000 after a two-month investigation of the dispensary. Six dispensary operators were given misdemeanor marijuana citations.

When it comes to sales of marijuana, which is still considered an illegal Schedule I narcotic under the federal Controlled Substances Act, 21 U.S.C. Section 812, it wouldn’t seem like packaging would be the top priority for law enforcement. However, keeping cannabis out of the hands of children has been a prevalent and important theme for everyone in the legalization process. No one on either side of the issue wants to see cannabis in the hands of children. Relevant restrictions have included keeping cannabis retailers a certain distance from parks, schools, and places where children regularly frequent, as well as making sure tax money is allocated for education and prevention programs geared at students. Further, regulations dictate that “packages and labels shall not be made to be attractive to children,” according to Medicinal and Adult-Use Cannabis Regulation and Safety Act Sec. 74. Continue reading

April 2, 2018

Medical Marijuana Study in Israel Lights Way for Cancer Treatments

By Cannabis Law Group

Here in California, we have more than 20 years of anecdotal evidence of the ways medical marijuana can be used to treat a variety of ailments. Thanks to the Compassionate Use Act of 1996, patients have been reaping the benefits of cannabis for everything from glaucoma to anxiety and chronic pain. Unfortunately, the research that would help independently establish these things has largely been stifled in the U.S., owing largely to the federal policy that classifies marijuana as a Schedule I narcotic. Meanwhile, as reported by U.S. News & World Report, Israel has become a leader in marijuana research – and one of the latest findings of Israeli researchers underscores the medicinal properties of marijuana for cancer patients.

Published in the European Journal of Internal Medicine, the study analyzes the effects of cannabis on symptoms related to cancer and cancer treatments. These include nausea, vomiting, headaches, weakness, pain, and more. According to the study, 1,046 out of 1,742 reported success in overcoming these symptoms after six months. This total did not include participants who passed away, switched cannabis providers, or did not respond to questionnaires. The study looked mostly at patients who were at an advanced stage of cancer and on average 60-years-old. These factors meant a quarter of patients died before the study was over, but even many of those patients reported having the pain of their condition eased by cannabis.

March 27, 2018

Cash-Only System Tough on Marijuana Businesses When Paying Taxes

By Cannabis Law Group

In the midst of tax season, the paradox of tax-paying marijuana business owners being treated like criminals takes center stage. The San Francisco Chronicle recently described the scene as marijuana retailers brought bags of cash to tax administration offices. Some retailers reported bringing in up to $80,000 at a time.

But what other choice did they have? California has opened the door for legal recreational sales with the implementation of Proposition 64 this year, which is bringing a new wave of money-making opportunities for cannabis entrepreneurs. And where there is money-making, there are also taxes. These businesses want to pay their taxes, but without the option of processing transactions and savings in a bank like a normal business, cannabis companies end up paying taxes with cash out of bags.

As our marijuana attorneys can explain, at the heart of this issue is Controlled Substances Act, 21 U.S.C. Section 812. According to the federal government, marijuana is classified as a Schedule I narcotic under this act. A Schedule I classification means that a drug “has high potential for abuse” and has no accepted medical use in the United States. And even under medical supervision, it would not be considered safe to consume. Obviously, nothing could be further from the truth when it comes to marijuana. For more than 20 years, cannabis has been offering relief to patients in California for everything from cancer to arthritis to anxiety thanks to the Compassionate use Act of 1996. Continue reading

March 1, 2018

Los Angeles Zones Where Cannabis Businesses Can Operate

By Cannabis Law Group

There are many questions that have been answered with the legalization of recreational marijuana in California. cannabis business

What? Proposition 64 was approved by voters and made legal adult-use marijuana.
Who? Residents 21 years or older.
When? As of Jan. 1, 2018.
Where? Now, that’s a trickier matter.

Firstly, the state law did not automatically go into effect everywhere. From county to county, city to city, local governments have been making decisions about whether to maintain a ban on recreational cannabis or to legalize and set up regulations. Some of the big cities, like Los Angeles, San Francisco and San Diego have permitted recreational sales. Some areas, like Orange County, cultivation is allowed with restrictions, but manufacturing and retail are banned. Los Angeles took a different route, allowing retail but not cultivation or manufacturing. Other counties, like San Bernadino, don’t permit any recreational cannabis activity.

February 26, 2018

Privacy Protections Necessary for Recreational Marijuana Users in California

By Cannabis Law Group

While many Californians are finally enjoying the freedom to use recreational marijuana, some are questioning how safe their private information is when 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