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Economics 101 teaches us about supply and demand, but you don’t need a business degree to see that the supply ofmarijuana 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

When starting a cannabis business, there are obvious considerations, such as product, employees, and location. Anmarijuana business equally important, but less discussed, element is security. Considering some security measures are actually built into the regulations for marijuana businesses, this is certainly not something to be taken lightly. Cannabis Business Times recently broke down security recommendations and requirements for marijuana cultivators, and our experienced legal team can expand on these tips and explain the rules other types of businesses must also understand.

It may seem basic, but one of the most important steps the report outlined was assessing risk. You don’t want to be reactive to your security needs, only putting measures in place after a problem presents itself. It’s important to be proactive, and identify all the risk areas, particularly any touch-points where product could be removed from your facility without your knowledge.

Video surveillance is one of the top methods of security in any type of marijuana business, but there are many aspects that must be taken into consideration before choosing the system that’s right for you. Is the video quality high resolution enough? CA Code of Regulations Div. 42, Ch. 1, Sec. 5044 states that minimum camera resolution must be 1280 x 720 pixels. The ability to identify any person recorded must be clear and certain. Your system cannot be in-house only; it must be accessible through the Internet. Continue reading

It is common knowledge among our marijuana business attorneys and our clients that banks are highly restricted inmarijuana business how they can interact with the cannabis industry. Wells Fargo, however, recently took those restrictions too far when the bank closed the account of a candidate in Florida who made cannabis legalization a tenant of her campaign platform. According to New York Times, Nikki Fried is running for Florida agricultural commissioner and said expansion of the state’s current program is her highest priority.

The candidate runs her campaign finances through Wells Fargo, who questioned her support of marijuana and whether or not she also was planning to take donations from marijuana businesses to fund her campaign. When her campaign workers confirmed she would take such donations, Wells Fargo made an unprecedented move in shutting down her account.  Continue reading

To assist California cannabis growers establish their regions as brands, the California Department of Food and cannabis businessAgriculture is working on a system of regulations for naming craft cannabis strains. According to a report from Ganjapreneur, this is similar to the way the system of naming works for wines, in which a wine must actually be from the Napa region in order to carry that moniker on its label. CalCannabis Cultivation Licensing, the arm of CDFA that controls marijuana growers, is planning workshops in September to gather feedback and provide more information to cultivators.

The area known as the Emerald Triangle in Northern California has earned its name due to its high rate of cannabis cultivation. In fact, it’s the largest marijuana-producing area in the country. Growers in the region would like to capitalize on their world-renowned status to help give their product recognition and increase its desirability. They pride themselves on creating interesting, high-quality strains and growing in top-notch environments, and they want to make sure that random grow operations from some other region can’t use their regional names on their own labels.
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It’s about time. The Drug Enforcement Administration is moving to increase the amount of cannabis to be legallymedical cannabis grown for research purposes in the U.S. and decrease the amount of opioid drugs produced under the group’s watch. You heard that right. The same organization whose leaders for years have been wringing their collective hands over marijuana, who said we simply did not know enough about its effects, who defended its Schedule I classification, might finally be waking up to smell the coffee the rest of the country has been happily sipping for some time now.

According to a report from Forbes, a new Federal Register filing shows the agency increasing allowance of cannabis plants to 5,400 pounds in 2019, more than five times the 1,000 pounds the department OK’d this year. Representatives of the department said the move was necessary to meet the demands of the medical and scientific communities for research purposes. Of course this demand is nothing new. Health care providers, laboratories, and medical schools have been desperate for proper research on cannabis for decades. California medical practitioners have been using limited studies, anecdotal evidence, and trial and error to treat patients since medical marijuana was legalized in the state in 1996 under Proposition 215. Continue reading

Constellation Brands has made the biggest investment the marijuana industry has ever seen with a mighty $4 billionmedical marijuana going to Canopy Growth. Canopy Growth, a Canadian company, was already considered one of the giants of the cannabis industry, and this investment will only further their global footprint, according to a report from Esquire. Meanwhile, Constellation is diversifying its portfolio, which currently consists of major alcohol brands, such as Modelo and Corona.

The relationship between Constellation and Canopy Growth is not a new one. Last year, Constellation made an investment in the company of $191 million to develop a drink infused with cannabis. Now, with Canada passing full legalization of marijuana, Constellation executives are getting on board one of most anticipated industries in the world in a more substantial way; they now hold a 38 percent stake in Canopy Growth. The most recent investment won’t just go to beverage research, but also into edibles, new medical marijuana advancements, and worldwide growth. Continue reading

Two recent cannabis product recalls have some marijuana businesses concerned about such scenarios becoming amarijuana business widespread issue, particularly with more stringent testing regulations recently becoming mandatory. According to a report from Marijuana Business Daily, though, several testing labs have said there is little to be concerned about, especially as these regulations continue to balance out and become more integrated.

The testing labs noted first of all that the two instances of recalls, both in late July, were self-imposed by the companies who manufacture the product. Thousands of marijuana products have passed lab tests and have moved along to retailer shelves. The data from these tests is double checked by the Bureau of Cannabis Control to help ensure product that should have failed the tests does not make it into stores. For the most part, companies have been able to keep up with the new regulations, and the recalls were reportedly a precautionary move by those particular businesses. As understanding of all regulations continues to grow stronger, incidents of product testing failures will continue to decline. Continue reading

More than four years after recreational marijuana became legal in Colorado, the state is continuing to post bigmarijuana business numbers as a result of the blossoming cannabis economy. According to The Denver Post, Denver’s dispensaries recorded $587 million in sales in 2017, a record high, with sales continuing to rise into 2018. This was an increase of 16 percent over 2016. Sales throughout the state totaled $150.8 billion during the same time period, a 15 percent increase over 2016.

When broken down by recreational and medical marijuana, both the city of Denver and Colorado as a whole actually saw a decrease in medical cannabis sales, but the increase in recreational sales made up for the losses and then some. In Denver, medical sales dropped from $212 million to $206.4 million, while recreational retail sales spiked from $291.5 million to $377.5 million. Statewide, medical sales were $445 million in 2016 and $416.5 million in 2017, while recreational sales jumped from $861.6 million to $1.09 billion. When examined by location, while sales in Denver continue to climb, other regions in the state are starting to take a bigger percentage of the overall pie, which good news for those who live outside the big city. Continue reading

The company that produced the first ever cannabis-derived medicine to be approved for use by the U.S. Food & Drug medical cannabisAdministration has revealed to investors the cost of the drug: $32,500 per year. This is reportedly on the low-end of original estimates between $30,000 and $60,000. Epidiolex, made with CBD and used to treat rare forms of childhood epilepsy, is said to be priced competitively with other epilepsy drugs on the market. This, however, is not other epilepsy drugs.

One of the reasons, among many, that marijuana has become so popular for medicinal use is that it is relatively inexpensive compared to other treatments, even without the help of insurance companies to cover the costs. Some markup by pharmaceutical companies is to be expected to cover testing, research, and ensure consistency and purity of the product. The disparity between cost and price in this instance seems specifically designed to prey on desperate families already prepared to pay top dollar to help their children. In fact, the price was set with the consultation of insurance companies, according to a Business Insider report.

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In late June, the Food & Drug Administration for the first time approved a cannabis-derived drug, and it could marijuana lawchange the landscape of marijuana in the United States, possibly within the next month. Epidiolex contains an active ingredient of CBD found in marijuana, and was approved to treat severe forms of epilepsy in children. 

According to a report from The Philadelphia Inquirer, the CEO of the company responsible for Epidiolex said before the drug can be prescribed, it must be reclassified to be lower than it’s current Schedule I status, Controlled Substances Act, 21 U.S.C. Section 812. He said he expects this to happen within 90 days of the FDA approval. This means marijuana could very well be reclassified by late September. It doesn’t mean that there will be a total free-for-all on cannabis use, but a lower scheduling will mean that the federal government will finally acknowledge the plant has medicinal benefits, and medical marijuana programs across the country can be released from the grips of the federal ban. 

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