Articles Tagged with California cannabis attorney

Minors getting ahold of marijuana was a major sticking point in the lead up to the passage of Proposition 64, which legalized adult-use California cannabis. It’s also been cited as a reason to block cannabis business billboards on California highways. But as it turns out, licensed marijuana retailers are doing an excellent job keeping the substance out of the hands of youth. Los Angeles cannabis lawyers

You don’t need to take our Los Angeles marijuana business lawyers‘ word for it. This is according to a new study commissioned by the Insurance Institute for Highway Safety. Despite a few isolated incidents of state law violations (i.e., workers giving out free samples of edibles), the analysis revealed workers at cannabis retail locations are committed to following the rules, protecting minors and staying in business.

Study authors say the largest loophole through which minors obtain cannabis in California is through unlicensed vendors. Consider that black market bud sales are three times bigger than the legal market. They don’t have the regulations and taxes to contend with. They sell products that aren’t verified for safety or quality, but they can sell them cheaper – and they don’t always ensure the people to whom they’re selling are of legal age to do so.

The proliferation of the black market in this state has served as a lesson to other states preparing to oversee the unveiling of similar recreational cannabis industries. Continue reading

Trying to predict the California cannabis market was problematic even prior to an international pandemic that threw everything off course. Part of it is that this is the largest legal marijuana market in the world. Part of it is that it’s so new, being legalized for adult recreational use just three years ago. And part of it is the industry’s ongoing and fierce competition with a huge illegal market – all while the drug is considered illegal and highly addictive by the federal government.marijuana business lawyer

That said, our Los Angeles marijuana business lawyers have been fierce defenders of those involved in cultivating, manufacturing, selling, using, prescribing and advertising marijuana for more than a decade. We have become deft at examining the trends as we advise our clients, many of whom were better off than some other businesses due to their designation by the state as “essential.”

In looking at the year ahead, our marijuana lawyers see a handful of factors that will likely impact the future of the industry and the clients we serve.

Los Angeles marijuana tax lawyerRegulations were proposed by the California Department of Food and Agriculture (CDFA) last month, suggesting that appellations of origin are established for cannabis. As such, February 20 marked the beginning of the 45-day period required by Californian law, where the public can submit any comments it may have on the matter. The CDFA has continued to welcome and encourage all interested to submit their thoughts. The deadline to do so is April 6, 2020.

Background
Under Section 26063 of the Business and Professions Code, The Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), requires that the CDFA Cultivation Licensing Division, also known as CalCannabis:

  • Forms standards that allow licensed cannabis growers to elect a county of origin for their cannabis; and
  • Establishes a process that licensed cannabis growers can use to establish appellations.

The department has until January 1, 2021 to form the process of appellations of origin. In order to meet this statutory obligation and to fulfill MAUCRSA mandated responsibilities, the department has created what is now know as, the Cannabis Appellations Program (CAP).

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medical marijuana attorneyAs of March 1, 2020, California has allowed qualified medical marijuana patients and primary caregivers to receive free cannabis, donated by retailers. This welcomed update arose after the passing of Senate Bill 34, which is also responsible for exempting donated cannabis items from cultivation, sales and use, and excise taxes.

The bill states licensed growers, distributors, manufacturers, retailers and micro-businesses may allocate any already available inventory of cannabis and related marijuana products, for donation. Products set aside for donation can only be given by licensed retailers either directly to a medical patient, or to their primary caregiver.

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Marijuana companies are actively working to update their websites, business practices and internal policies in preparation for new directives under the California Consumer Privacy Act.California cannabis compliance lawyers

As Los Angeles marijuana business attorneys can explain, many cannabis companies don’t even fall under the jurisdiction of the landmark act. Still, they are motivated not only by a desire to prove their desire to be in compliance just like any other company. Plus, it’s something most of their customers want.

Most California marijuana businesses are facing enough legal scrutiny as it is. Although the new law applies only to those corporations that generate at least $25 million a year in revenue and glean data on 50,000 or more households, devices or residents, some believe it’s better to make a good faith effort than to skate on the excuse that they aren’t technically beholden to it. It’s a potential marketing opportunity as well as a way to show regulators they are working to be responsible business partners. Continue reading

Green begets green – at least insofar as the California cannabis industry is concerned.cannabis warehouse leasing

The growing legal marijuana market is driving demand for warehousing, retail and land space across the country. One analysis of some 600 commercial brokers last fall by the National Association of Realtors revealed that in states where marijuana was legalized prior to 2016, the demand for these properties was markedly higher than in those states where cannabis use remained against the law.

As our Los Angeles cannabis business attorneys have noted that real estate investors have been especially active in areas where marijuana and CBD trade is thriving. Many more investment firms have been scouring opportunities in states where legalization seems likely in the near future. Continue reading

Los Angeles cannabis business attorneyThe Californian pot industry has largely reacted with positive skepticism after Governor Gavin Newsom unveiled his new budget proposal, which includes significant updates for the cannabis industry. In essence, Newsom’s proposal seeks to merge three existing agencies regulating the state’s cannabis to establish a single, centralized Department of Cannabis Control, and to simplify and streamline the taxation of cannabis.

California voted to legalize cannabis use in adults aged 21 and older, three years ago now. And in that time, the legal marijuana industry has grown rapidly. Cannabis market research firm, BDS Analytics, predicts legal cannabis sales will exceed $3.1 billion this year alone, and forecasts sales will continue to grow to an estimated $7.2 billion by 2024.

Growth of this kind has come to fruition despite California’s complex legal structure, which incorporates in excess of twenty different cannabis license types, four varying  regulatory agencies, and exorbitant taxes that industry insiders say are driving customers to the illicit market for cheaper alternatives. Continue reading

marijuana businessCalifornia lawmakers, in late January, breathed new life into a proposal that could cut the state’s taxes on marijuana for the short term, to help boost the struggling legal market.

Gov. Gavin Newsom has shown his support for the bill, as he now takes aim at updating California’s cannabis regulations.

Assembly Bill 1948, introduced by Assembly Members Rob Bonta, Ken Cooley, Reggie Jones-Sawyer, Tom Lackey, and co-authored by Assembly Member Mark Stone, seeks for three years to:

  1. lower marijuana retail sales state tax from 15 percent to 11 percent; and
  2. eliminate the cultivation tax altogether.

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Los Angeles marijuana lawyerLos Angeles officials announced that cannabis vape cartridges seized from unlicensed storefronts late last month were tainted with potentially hazardous additives. These include an agent that is known to thicken substances, and is also blamed for causing the vaping lung illness sweeping the nation.

In December, California investigators also raided unregulated storefronts throughout Los Angeles and confiscated illegal vape products. According to state testing results, many of those products showed as far less potent than labeling suggested.

In some cases, the oil cartridges THC contents showed to be only a portion of that claimed and were diluted more than one-third by undisclosed but likely dangerous additives.

Los Angeles officials tested a sample comprising more than 10,000 randomly selected illegal vape pens confiscated in those raids. Results showed three in four vapes contained the thickening agent vitamin E acetate, which federal regulators blame for the majority of lung illnesses linked to the national vaping health crisis.

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After two years of licensed cannabis stores selling legalized marijuana across California, the industry has encountered numerous teething problems. Crippling regulation and licensing costs, rising local and state taxes, local city usage bans, and a strong illicit market that shows little sign of waning, have all proved to hinder industry growth. At this point, it is safe to say the Golden State’s legal marijuana industry is in need of a little prod, to help it move forward.

Calling for a Return to the Ballot
With lawmakers seemingly finding it difficult to pass any changes as quickly as the cannabis industry needs them, Cody Bass has floated another idea.
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