Articles Posted in Marijuana delivery services

As of Jan. 1, 2023, cannabis delivery in California rules have expanded to allow authorized vehicles to carry more pot products – and under fewer restrictions – than was previously allowed. Also, by next year, cities will be expected to take certain measures to improve access to medicinal marijuana by guaranteeing delivery options for patients and caregivers.California cannabis delivery lawyer

While this is good news for many cannabis companies, our Los Angeles marijuana business consulting lawyers urge leadership to initiate meticulous review of internal standards in contrast with the state’s most up-to-date standards. Marijuana delivery companies should do this with the aid of an experienced legal team, just to ensure all products and processes – from labeling to employee screening to vehicle maintenance to product testing to insurance coverage to order fulfillment – are above-board and perfectly aligned with state law. Doing so can go a long way toward maintaining public trust, securing customer loyalty, and avoiding costly delays and product losses if any aspect of your operation comes into question.

The new California cannabis delivery standards stem from number of bills signed by Gov. Gavin Newsom last fall. Among those:

  • SB 1186 , the Medicinal Cannabis Patients’ Right of Access Act, expands medical cannabis delivery availability in communities that would otherwise ban it. The new law requires that by January 2024, cities must adopt new ordinances to allow for medical cannabis delivery to patients and their primary caregivers. For some communities, this is going to mean rewriting laws to allow for non-storefront retail licensing within their jurisdiction. This was a very hotly-contested bill when it was first introduced. The law bars local governments from de facto bans on medical marijuana delivery services (done through severe restrictions on things like hours of operation or frequency of sales or physical retail location requirements.) State grant money is available for local government agencies that need some assistance complying with the law.
  • Expanding cannabis delivery allowable amounts and processes. Prior to the start of this year, authorized cannabis delivery vehicles were only allowed to carry $5,000 worth of cannabis at any time – and no more than $3,000 of that could be “un-ordered,” or not spoken for by a specific customer. Now, as of Jan. 1st, regulations handed down by the California Department of Cannabis Control (DCC) allow up to $10,000 in cannabis to be in an authorized cannabis delivery vehicle at any given time, and up to $5,000 of that can be un-ordered, meaning it isn’t sp0ken for by a particular customer when they load it up. This is what is sometimes referred to as the “ice cream truck model.” The provisions also give a green light to permanent curbside pickup options, and allows cannabis products to be distributed directly from the premises where they’re being stored (simplifying the supply chain and keeping costs in check).

Different Cannabis Delivery Models

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Since the right of California cannabis delivery services was cemented late last year with the state supreme court’s ruling in County of Santa Cruz v. Bureau of Cannabis Control, the market seems poised for growth. Still, the clarity of some issues remains clouded. For example, when, where and under what conditions can a licensed retail operator in the state deliver goods to cannabis consumers in outside jurisdictions?Los Angeles cannabis delivery lawyer

As the cannabis delivery market represents a ripe post-pandemic opportunity, those companies considering adding cannabis delivery to their roster of services should have a Los Angeles marijuana business lawyer on retainer.

The mass shutdowns of the COVID-19 pandemic saw huge spikes in all kinds of delivery services, as the public was eager to avoid shopping center crowds. Grubhub, DoorDash, UberEats, Instacart and Drizly soared. Meanwhile on the cannabis front, the CA-based cannabis delivery app Eaze saw its customer base jump by 70 percent. In the last 12 months, Eaze execs estimate a California cannabis order was placed every eight seconds. Our state accounts for the lion’s share of the $17 billion in legal pot sold in the U.S. last year. Continue reading

A key ruling in the fight to allow marijuana delivery everywhere in the state – regardless of local restrictions on marijuana retailers – was issued partially in the industry’s favor. Still, our Los Angeles marijuana business lawyers recognize it wasn’t all good news, and likely is just the beginning of what could be numerous, protracted legal battles.marijuana delivery lawyer

The Fresno County Superior Court earlier this month upheld the California law allowing licensed marijuana delivery companies to offer services anywhere in the state. Further, the ruling affirmed that while cities and counties can forbid these operations, enforcement is up to local government agencies.

What does this mean for marijuana delivery businesses? As our attorneys see it, they have one of two options:

  • Take the risk of battling with local governments trying to enforce their local bans on cannabis companies (including delivery services).
  • Cease delivery services to those areas.

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A superior court judge tentatively ruled against cities pushing to overturn the government rule allowing California marijuana deliveries everywhere in the state. But the case isn’t over yet.L.A. marijuana delivery lawyers

In the ruling, the judge expressed doubt that some of the cities that filed the complaint even have legal standing to bring the action. Some have no local ordinances in place that expressly conflict with the California Bureau of Cannabis Control‘s marijuana delivery rule. If they lack legal standing, there is nothing to dispute.

This is a case that will likely have far-reaching implications for legal marijuana sales statewide. The question is whether it’s the state or local governments who maintain control over marijuana cultivation and sale within different jurisdictions. Continue reading

The California marijuana delivery services lawsuit was originally scheduled for April, but was pushed back because of the novel coronavirus outbreak. It is now on track to be heard next month in the Fresno County Superior Court. The California Attorney General’s Office, filing a brief on behalf of the state’s Bureau of Cannabis Control, used the word “bizarre” to describe the effort to overturn state policy permitting marijuana deliveries regardless of local bans or rules. Orange County marijuana delivery attorney

As our Los Angeles marijuana business attorneys know, most of those in the industry are in favor of a statewide delivery option. However, 25 localities have formally objected to the policy. In response, the attorney general’s brief insisted that the BCC’s marijuana delivery policy aligns with state law. Continue reading

employment attorneyAs marijuana use becomes more widely accepted, California market research breakouts show online cannabis purchase demographics now include higher participation among women. And companies are quickly adapting their strategies to woo them.

One such company, Eaze, a San Francisco-based online cannabis shopfront and delivery service, noted an uptick of 81 percent more women purchasing marijuana related products from the company, between 2018 and 2019.

With this shift, women now make up 40 percent of the company’s total customer base. Eaze also shared, that in 2018, women also accounted for 38 percent of its first-time deliveries, and that that figure grew to 43 percent in 2019. Continue reading

Last year, the California Bureau of Cannabis Control adopted a controversial policy allowing marijuana deliveries everywhere in the state – even in locations where city officials formally banned adult use retail sales, as is their express right under Proposition 64. Our Los Angeles marijuana delivery attorneys recognize this provision as key to the future success of the legal cannabis market in California. That’s why we’ll be closely following the developments in the case of County of Santa Cruz et al v. Bureau of Cannabis Control, slated to be heard in the Superior Court in Fresno in April 2020. A countersuit filed against the county by a marijuana retailer out of Salinas is slated to be heard by the Superior Court in Santa Cruz in July 2020. Los Angeles marijuana delivery lawyer

If this challenge to marijuana’s delivery law succeeds, it would not only threaten the many marijuana delivery services that rely on the state’s protection, it would also be yet another significant threat to the success of California’s struggling legal market by giving black market vendors a major inroad to under-served consumers.

The lawsuit was filed by 24 cities and Santa Cruz County, all of them contending that the state regulatory agency crossed the boundaries of its authority when it made the rule pertaining to marijuana deliveries. They assert that Prop. 64 expressly imbued local governments with the authority to restrict and even prohibit cannabis sales and activity inside their own districts, and the bureau’s policy is a direct affront to that right. Continue reading

Los Angeles marijuana delivery driverCalifornian officials are stepping into an escalating court battle surrounding cannabis home deliveries. The move comes as the state’s counties and cities are at odds with companies delivering cannabis to customers’ homes, within communities that have either banned or restricted marijuana sales.

In early November, Atty. Gen. Xavier Becerra and the Bureau of Cannabis Control (BCC) filed a motion to help bolster a suit brought by Eden Cannabis Co. against Santa Cruz County, which had banned unlicensed marijuana companies from making deliveries within the county. The county’s suit states that the California regulation directly and irreconcilably conflicts with Proposition 64, which “preserves the right of local jurisdictions to regulate commercial cannabis activity at the local level.”

Becerra, meanwhile, told the court the state has acted appropriately in determining where cannabis can be delivered and sold. He went on to argue that banning deliveries from outside companies is ‘inconsistent’ with state regulations that permit deliveries by licensed marijuana companies, anywhere within the state of California. The Santa Cruz court has set a hearing date for Jan. 2 to determine whether the state bureau can intervene in the case.
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In what is being considered a big win for all California cannabis companies after the federal government declined to proceed with civil forfeiture action initiated by the California Highway Patrol following a traffic stop of two marijuana delivery drivers, and the court ordered the money returned. cannabis company delivery

Attorneys for the cannabis businesses say these traffic stops targeting state-legal cannabis companies – and then calling in the feds to seize whatever goods and cash they found – were part of a systematic effort to undercut the burgeoning cannabis industry.

Although these companies are operating under the guidelines set forth by Prop. 64 the Adult Use of Marijuana Act, the cultivation, production, sale and use of marijuana remains illegal under the U.S. Controlled Substances Act. Federal and state justice agencies alike have, in the course of the failed War on Drugs, also availed themselves of a civil procedure known as civil forfeiture, designed to curb organized criminal activity (gangs, drug dealers, etc.).

State law enforcement agencies in California can no longer do this because marijuana is no longer flatly outlawed. So instead, it appears they were forwarding this means to undercut cannabis operations to the federal government. Continue reading

So much weed is being grown in California, it could create a bubble that will soon leave us set up for bust. There are too many marijuana farms, too much product and not enough demand. It has the potential, according to Vessel Logistics, to result in an an industry collapse. This is obviously something to which marijuana businesses and our Los Angeles marijuana business lawyers are paying close attention. cannabis lawyer L.A.

The research firm/marijuana distribution company, crunched the numbers to learn nearly 1,150 acres of cannabis farms have a permit by the state. Those farms can generate an estimated 9 million pounds of the crop annually, yet the wholesale marked for the drug in the state – just realistically at this point – is about 2.2 million pounds. That means even if cannabis farms cut their production by half – we would STILL have an overstock.

In a typical trade situation, we’d look to offload that excess to markets in other states selling less. But we’re forbidden to do that by federal and state law. The drug remains a Schedule I narcotic, which our Los Angeles marijuana lawyers know that neither farmers nor distributors can ship this product across state or international lines without breaking serious felony drug trafficking laws – even when those states allow the drug to be used and sold legally.

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