California cannabis business lawyers

February 15, 2023

DEA Declares Delta-8-THC-O & Delta-9-THC-O Illegal, Not Hemp

Los Angeles cannabis business lawyer Despite being widely labeled as hemp-derived novel cannabinoids, Delta-8 THC-O and Delta-9-THC-O have been declared illegal by the U.S. Drug Enforcement Administration. In a letter to a law firm dated Feb. 13, 2023, the agency stated in no uncertain terms that these popular products – referred to collectively under the title THCO – are legally considered “controlled substances.” This directly contradicts with previous federal court rulings that determined delta-8 products could be considered “hemp” and thus lawful under the 2018 Farm Bill.

Note: Delta-8-THC-O and Delta-9-THC-O are different than delta-8-THC and delta-9-THC. While the latter both exist naturally in the hemp plant, THC acetate (better known as THC-O) doesn’t. That’s the underlying basis for the DEA’s position.

THC acetate is most typically a component of products like edibles and vapor cartridges. As Los Angeles cannabis business lawyers, we want to ensure any companies that currently produce, transport, stock, and sell these products take immediate note. It’s not immediately clear how this will impact the market, so it’s a smart idea to immediately consult with a cannabis lawyer on how best to proceed and ensure you’re on the right side of the law.

How the Farm Bill Factors

The 2018 Farm Bill opened the door to a number of cannabinoid products that are known to also have intoxicating properties. This has drawn the attention and ire of some politicians and interest groups. The additional scrutiny has led to legal challenges that have wound up in court. Continue reading

December 10, 2022

Federal Prosecutors Drop Cannabis Company Cash Forfeiture Case

By Cannabis Law Group

In a case that may signal good news for future interstate cannabis transactions, federal prosecutors in Kansas have agreed to drop a civil forfeiture case pertaining to pot shop profits being ferried across state lines. Los Angeles marijuana lawyers

To explain the significance of this, we have to step back a bit to examine the historical context. Cannabis companies run into all kinds of legal stumbling blocks in the simple course of doing business. Matters like banking, transportation, real estate purchases/rental agreements, security, insurance, employment, etc. – all of these things are more complicated than they would be for typical businesses. Despite state-level laws that legalize marijuana cultivation, production, sales, and possession (such as California’s Proposition 64), the U.S. Controlled Substances Act still classifies cannabis as a Schedule I narcotic. This has resulted in much confusion about practical applications for state-legal cannabis companies just trying to conduct regular business.

One legal concern that has cropped up in the past couple years deals with the transport cannabis company cash – particularly when it involves crossing state borders. Because of federal banking regulations, cannabis companies tend to deal primarily in cash, which can pose some practical challenges. Moving that cash from one point to another is not as simple as a digital transfer. It may require physical transport. But in the course of doing so, several companies found themselves smack in the center of federal civil forfeiture cases wherein the government seized the cash, on the basis of it being tied to illegal drug trafficking.

Civil forfeitures, also sometimes called civil asset forfeiture or judicial forfeiture, is a highly controversial process whereby law enforcement/government agencies to seize – and keep – property and other assets that belong to persons suspected of committing a crime. Forfeitures can happen as part of a criminal case, but in civil forfeitures, no crime need be proven in a court of law in order for the government to keep those assets. Some have likened it to “highway robbery,” except it’s fully legal. The laws were written to target criminal organizations, fugitives, terrorists, etc., but have been used in many cases against state-legal cannabis companies.

As Los Angeles marijuana business lawyers can explain, these scenarios involving cannabis companies have puzzled legal scholars because they fall into something legal gray area – thanks to the patchwork of conflicting state and federal pot laws. Continue reading

June 2, 2018

Fighting Pests on Cannabis Farms the Legal Way

By Cannabis Law Group

One of the biggest obstacles for any farming community is how to best control pests. Each plant attracts a different cannabis business set of insects and animals and requires special care to deter wildlife from harming crops. Farmers must also take into consideration how pest-control methods could harm natural surroundings and affect the people who will consume the product. Cannabis farms are no different, though they lack the years of shared wisdom other farmers have gathered. In fact, cannabis farmers have to be even more thoughtful in some ways about what they use because their end product isn’t easily washable like an apple. Although it wouldn’t seem a cannabis attorney would be your first consult on this front, it’s worthwhile to review it with your counsel so you are sure you’re abiding local and state environmental regulations.

The California Department of Pesticide Regulation, has been tasked by California’s Medicinal Adult-Use Cannabis Regulation and Safety Act to provide guidelines for pesticide use in cannabis farming. The department said there is not a pesticide product federally registered for use specifically for cannabis farmers. However, there are plenty of pesticides that can legally be used on cannabis so long as they meet certain criteria. Continue reading

May 2, 2018

Cannabis Businesses, Local Governments to Benefit from New Group

By Cannabis Law Group

Mendocino County is the latest to sign an agreement with the California Cannabis Authority in an effort to help local governments with regulatory compliance and assist in creating a rich pool cannabis business of data about the cannabis industry. Our attorneys know one of the most difficult things about establishing any new industry is lack of concrete data. There can be a lot of growing pains as authorities and economic leaders gather a foundation of facts that help in making critical decisions about public safety, regulations, and taxation. This is particularly true when dealing with a controlled substance, like marijuana. Even though marijuana has been legal for medical purposes in California since the passing of the Compassionate Use Act of 1996, the switch to recreational legalization in the state as of Jan. 1 was a real game changer. MAUCRSA, Medicinal and Adult-Use Cannabis Regulations and Safety Act, was created to combine guidelines for medical marijuana with all the new stringent licensing rules for recreational cannabis, so all regulations lived under one umbrella.

The mission of the newly formed California Cannabis Authority is to “develop and manage a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource.” The more local governments that participate, the more compelling and significant the data will be for everyone who accesses it.

The group was created by the California State Association of Counties Finance Corp. The group started with San Luis Obispo, Humboldt, and Monterey Counties on board, with Mendocino following suit. According to a report by the Ukiah Daily Journal, the platform will make it easier to track tax payments, provide compliance information to county departments, and allow health officials to access product information. Continue reading

October 21, 2017

How California Marijuana Growers Are Rebuilding Their Businesses After Devastating Wildfires

By Cannabis Law Group

Throughout October 2017, devastating wildfires have taken lives and caused millions of dollars in damage all across California. While the destruction is tragic for all Californians who have been affected, one particular group of small business owners have been hit especially hard by damage. Marijuana growers are generally prohibited from insuring their businesses. This has left many Northern California marijuana growers with vast amounts of property damage and destruction, but no manner of recouping their losses. Worse, the losses come just as legal marijuana sales are set to begin in January. cannabis business lawyers

Why Marijuana Farmers Cannot Insure Their Businesses

Marijuana is entirely prohibited under federal law. There are no provisions for personal or even medicinal usage. Because of this, insurance carriers – most of whom are subject to federal regulations – are prohibited from insuring the businesses, products, or assets of marijuana businesses. Even when businesses are cultivating cannabis lawfully under the state’s Medical Marijuana Program (California Health and Safety Code §11362.7 to 11362.85), they are not able to access insurance coverage. These business losses have been even greater due to the timing of these wildfires. Salon reports that many business owners have spent “their life savings” getting permits and preparing their crops for legal sales on January 2, 2018. Continue reading