Articles Tagged with California cannabis business attorneys

The importance of residency has become a complicated ongoing issue for marijuana business owners in the state ofcannabis regulation Washington, where requirements for marijuana businesses are strict, yet muddled. What started as a residency restriction meant to control big outside mega corporations from putting local businesses at a disadvantage has led to corporations researching ways to exploit residency loopholes and limiting who longtime residents can bring on as partners. Now, due to unclear definition of what qualifies a person for residency, some are concerned how to prove their status.

You see, according to RCW 69.50.331(1)(b), one must be a resident of the state for six months to apply for a marijuana business license. Not only that, all members of the business, no matter how small the stake, must meet the same residency requirement. Further, a “partnership, employee cooperative, association, nonprofit corporation, or corporation” must be formed in Washington according to state laws and meet the above outlined residency requirements in order to be issued a license. Lastly, licensees must comply with residency requirements throughout the duration of the license. Without a firm definition on what constitutes residency, though, some businesses have been in the lurch. 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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Two monoliths of cannabis advocacy have joined forces in California, aiming to protect what many estimate to be thecannabis lawyers world’s largest marijuana market. California Growers Association, based in Northern California, is merging with Southern California Coalition out of Los Angeles to leverage their combined strength when voicing needs of the cannabis industry to political representatives, according to Los Angeles Business Journal. A headquarters location for the far-flung group has not yet been selected.

Anyone who is familiar with the cannabis industry knows there are major cultural differences across the board — from the numerous farmers working the fertile lands of the “Emerald Triangle” in Northern California to posh dispensaries in L.A, and all of the laboratory testers, drivers, and processors in between. Each faction of the industry has different priorities, which has often kept the groups and their interests separate. Many in the state, however, are learning that more can be accomplished when we work together. The new CalGrowers-SoCal Coalition Collaboration is now 1,600 members strong, making the group a force to be reckoned with. Continue reading

A new first for cannabis businesses recently took place, with the first initial public offeringcannabis business on a U.S. stock exchange by a marijuana producer. Ontario, Canada-based cannabis conglomerate Tilray went public on New York NASDAQ recently. The stock price spiked 30 percent in one day proving what we have been saying all along: cannabis is very, very good for business. According to a report from Quartz, investors rated the value of Tilray at time at $2.65 billion. Continue reading

U.S. Senate overwhelmingly voted to pass HR-2 Agriculture and Nutrition Act of 2018, also known as the Farm Bill, which contains (among standardcannabis business food policy legislation) measures to legalize industrial hemp sales, cultivation, and processing, according to a report from Forbes. Hemp is a variety of cannabis popular for its lower concentrations of THC and higher levels of CBD, the non-psychoactive component of marijuana. This has made it ideal for creating a variety of products, from plastics to biofuel to animal feed to yarn.

The federal ban on marijuana has made no distinction between these strains of cannabis and THC-laden versions, which has caused Americans to seek out everyday products that happen to include hemp from other countries. Finally, a bipartisan group of politicians, led by Mitch McConnell (R-KY), is standing up for this common sense action. Continue reading

Time is almost up for marijuana business owners to achieve full compliance of testing and packaging regulations. Forcannabis business six months, businesses have enjoyed a grace period that allowed them to sell marijuana products that were not in total compliance so long as they included a label indicating any safety standards the product did not meet. As of July 1, owners must clear their shelves of all product that does not meet regulations, resulting in an influx of cannabis sales in the month of June and could lead to an impending shortage, according to the Orange County Register.

When Proposition 64 went into effect Jan. 1, it brought with it new sets of rules in regards to recreational marijuana sales. Because marijuana products were already in production long before then, having served the medical marijuana market for almost 20 years, California imposed a grace period in which production and labeling regulations could catch up. This led to retailers bulking up on less expensive products that were not in total compliance at the end of 2017 to keep their stores well stocked in the first half of the year. Now they will need to clear their shelves of any remnants of that stock. Meanwhile, owners will be clamoring to replace that inventory with new products that meet regulations.  Continue reading

The American people have known for years that times are changing when it comes to marijuana. Now, it seems somecannabis business politicians at the federal level are starting to wise up and take this issue seriously as well. Senate Minority Leader Chuck Schumer (D-New York) is introducing a bill to remove marijuana from the list of Schedule I narcotics as part of Controlled Substances Act, 21 U.S.C. Section 812. He said he also wants to leverage this issue as a way to bolster women and minority cannabis business owners.

Politicians have been slow to take a stance in favor of cannabis, even though most of us know it can be a life-changing, medically useful drug. Some have supported passive measures here and there trying to give states some freedom without themselves taking a stand. For example, the Rohrenbacher-Blumenauer Amendment, which has to be renewed annually by Congress into the spending bill, prevents the Department of Justice from using federal funds to seek action against medical marijuana activity that has been legalized in that state. Some have tried to inaccurately portray cannabis as a partisan liberal issue, but even democrats have been shy to give full support. However, as The Washington Post reported, Sen. Schumer has acknowledged that the American people have evolved on this issue and it’s time for a big change. Continue reading

For many cannabis businesses, social media seems like the ideal place to advertise. Facebook provides many tools forcannabis business advertisers that allow them to focus their audience in a way that would be extraordinarily beneficial for marijuana products and dispensaries. They would be able to narrow down the viewers to only include people in states where cannabis is legal. They would also be able to add age restrictions, ensuring as much as possible that minors would not be exposed to the ads. It’s really a win-win, except for one very annoying catch.

Marijuana businesses are prohibited from advertising on Google or Facebook.

A recent report from Washington Post examined the challenges marijuana businesses face advertising to their customers while pot remains illegal under federal Controlled Substances Act, 21 U.S.C. Section 812. The act outlines guidelines by which to classify certain drugs based on how dangerous a risk they pose, whether they have any medical benefits, and if they are addictive. Currently, marijuana is Schedule I, the most restricted classification on the list, despite no evidence it fits any of those qualifiers. That very same act (under Section 843) states “It shall be unlawful for any person to place in any newspaper, magazine, handbill, or other publications, any written advertisement knowing that it has the purpose of seeking or offering illegally to receive, buy, or distribute a Schedule I controlled substance.”

So how are there so many marijuana ads out there?

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If you are a marijuana cultivator in California, you might be reluctant to buy insurance on your business. But our experienced cannabis business cannabis businessattorneys know there are many good reasons to invest in insurance.

A recent article from Santa Barbara Independent reveals a big payout one cannabis farmer in Carpinteria received due to losses caused by the Thomas Fire in December, the largest wildfire in the state in recent history. The farm got more than $1 million dollars from their insurance company after thousands of marijuana plants on property were destroyed. This equated to about market value for the plants. While the farm’s crops did not burn in the fire, white ash blew into the greenhouses and tainted the plants. The plants tested positive for lead, arsenic, asbestos, and magnesium. This type of damage was covered under the policy’s clause covering changes in atmospheric conditions.

Meanwhile, most of the other cannabis farms in Northern California were not so fortunate. Many opted out of insurance policies to keep costs low. This money-saving tactic is typical among farmers of all kinds, who often skip this expense to keep profit margins higher. But this is a big gamble, particularly in an area so prone to fires. Continue reading

Cannabis business owners want to be able to operate in full compliance with California law and function as a legitimatecannabis business business. They are open to paying taxes and following the rules. However, they are facing many barriers to achieving this end goal while operating a successful business – one of the biggest being the law itself.

This message was delivered loud and clear at a recent meeting in Ukiah, Calif., which included government officials and Northern California marijuana industry leaders in the first gathering of its kind, according to The Press Democrat.

The Sonoma County agriculture commissioner used this forum to address the seemingly endless patchwork mix of state and local regulations to which marijuana businesses must adhere and how detrimental they have been to established cultivators who want to operate legally under Proposition 64. Known as the Adult Use of Marijuana Act, Prop 64 went into effect earlier this year and allows adult-use marijuana legal in the state – but only for counties and cities whose leaders chose to adopt the law. Local governments have the right to continue to ban adult-use marijuana and to regulate it as they see fit.

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