Articles Tagged with California marijuana

When the voters of California passed Proposition 64, it allowed for the legal use, sale and distribution of marijuana for anyone 21 years of age and over.  The Proposition also allowed the state to tax  the sale of marijuana and to enact regulations over the cultivation and sale of cannabis. There was much debate over whether the many separate agencies already in existence would each do their part in regulating the growing, sale and distribution, or if there would be a new agency created.

cannabis business lawyersThere was a new agency created for medical marijuana which was then transitioned into the Bureau of Cannabis Control to regulate the cultivation, manufacturing, distribution, and retail sales of cannabis as well as provide for laboratory testing. Continue reading

While voters in 26 states plus the District of Columbia have given the green light to laws that legalize marijuana in some form, questions still remain about the legality of certain cannabis advertising campaigns.cannabis Lawyer Riverside

Recently, the Los Angeles Times reported a new venue for advertising recently opened, though it’s not heavily-utilized at this point, and it’s unclear whether it will amount to a sizable business opportunity. U.S.-based air carrier Allegiant Air, headquartered in Las Vegas, NV, has become the first to agree to allow advertising from a marijuana dispensary.

It’s found on the airline’s in-flight magazine, Sunseeker, which ran an advertisement for a marijuana dispensary that produces THC-laden cookies and candies, sold just a few blocks from the strip in Las Vegas. A full view of the kitchen is displayed in bright, colorful pictures on the in-flight magazine. Continue reading

Cannabis businesses have many legal issues with which to contend, from banking to bud-tending. Commercial leases for cannabis businesses raise special concerns for both landlords and tenants.marijuana business

Because of the federal civil asset forfeiture program, which allows the U.S. Justice Department to seize assets of any real property used to manufacture or distribute drugs that are illegal under federal law, the typical boiler plate lease won’t cut it. That’s why in many cases, property leases that involve cannabis businesses use something known as an “escape clause,” for instances when there is federal intervention or enforcement action. This can help protect the property owner, but it’s likely to end – or at least halt – the marijuana business indefinitely, likely costing a great deal of money.

We must now also consider the recently-passed Medicinal and Adult Use Cannabis Regulation Safety Act (MAUCRSA). Structuring the business – and the commercial lease agreement – according to these provisions can help safeguard your financial investment and livelihood.  Continue reading

State lawmakers in Colorado are pressing forward with a proposal that would limit marijuana cultivation on residential properties, capping the maximum number of plants at 12. marijuana

House committee members approved the measure 11-2 recently. If passed, this measure would reverse the country’s most generous allowance on in-home cannabis cultivation.

As it stands currently, Colorado’s recreational marijuana law allows medical marijuana patients to grow a maximum of 99 plants – way in excess of what other states allow. State law also gives a green light for recreational marijuana users to combine their six allotted marijuana plants into large co-ops. The result, lawmakers say, is that there are huge greenhouses where marijuana is grown, but neither tracked nor taxed.  Continue reading

Recreational marijuana seemed like an all-but-certain prospect just a few months ago. Certainly in California, the results of the November election helped to solidify the where its future would lie in The Golden State. But that same day came the unexpected election of Donald J. Trump, which in turn has meant uncertainty for the future of legal marijuana.questionmark

We do know the American public overwhelmingly supports legalizing recreational marijuana, and many lawmakers are eyeing it as a way to rake in millions of dollars in taxes that can be used for the greater good. As of today, we have a total of eight states – including California – that have legalized cannabis for recreational use. There was hope when Trump took office that, at the very least, Obama’s “hands-off” policy would continue, given Trump’s stated support for state’s rights. But then, he appointed Sen. Jeff Sessions (R-Ala.) to the post of U.S. Attorney General. Sessions has long been a vocal critic of recreational marijuana. On top of that, some in the Trump administration have warned that legal recreational marijuana could be the target of federal enforcement action, as the drug still remains outlawed under federal statutes.

All of this has left us with a great deal of uncertainty moving forward. It’s really not clear to marijuana businesses or even our marijuana lawyers what move the federal government and legislators may take next. While Republicans tend to be less favorable toward recreational marijuana on the whole, the issue is not split solely down party lines and a lot of Republicans support it.  Continue reading

There is a worldwide trend toward liberalization and increasing consumption of marijuana. One of the only real harmful side effects of the drug (not withstanding use by motorists) is the potential for transient symptoms of psychosis, particularly among novice users. crazy run

You may recall the 2015 “American Sniper” trial wherein prosecutors successfully countered a claim by the defendant who fatally shot the sniper and then alleged he suffered from schizophrenia. Prosecutors opined he was simply high. Also in 2015, there was the case of a 49-year-old Denver man accused of killing his wife after eating marijuana-infused candy he had just purchased legally at a marijuana dispensary. Defense attorneys have argued defendant was so high, he did not intend to kill his wife. Then there was a death of a college student who jumped to his death after reportedly eating a potent marijuana cookie.

In each case, questions have arisen regarding the potency of these drugs. In the wake of this, researchers with King College’s London’s Institute of Psychiatry, Psychology and Neuroscience are urging regulators to fund scientific studies that will more accurately show how we can make marijuana safer. Continue reading

When your business is legal, but you can’t access a bank for everyday functions, you have no choice but to become an all-cash venture. There is perhaps no industry that knows this woe better than those in the business of marijuana. But some are now finding that even those businesses that never actually touch marijuana may have banking headaches. money

The L.A. Times recently reported on a local businesswoman who alongside her partner launched a packaging company that caters to the cannabis industry. They produce containers, bags, logos, labels, custom-printed jars and boxes. They currently have about three workers and are preparing to bring on three more. They provide marketing and branding assistance to growers and distributors, and the owner describes it as “all very upscale.” The biggest problem, however, has been the banking.

She explained how she met with a single accountant last year who informed her she would likely only be paid in cash and that her workers and suppliers would need to be paid in cash as well. Payroll, sales and income taxes – all of it has to be done in cash. The accountant advised her to stash the cash under her mattress and then somewhere down the line find a time to make a large deposit into her bank account. When she told him that sounded illegal, he shrugged, saying that’s how everyone does it.  Continue reading

The marijuana industry in the U.S. is slated to become a $20 billion industry in the next four years. However, we could change course on that very rapidly depending on the approach taken by our new new commander-in-chief and those he has placed in top positions of power. There are millions of dollars and many businesses at stake. newspaper

There is reason to believe Donald Trump may lean toward favoring states’ rights on the issue. Others believe he may at the very least support medical marijuana rights. However, we also know that Trump has shown no problem walking back from several of the promises he made on the campaign trail, so it’s not illogical that he would shy away from statements in support of medicinal marijuana. On top of this, there is concern given that his U.S. attorney general pick Jeff Sessions is a vocal opponent of any form of marijuana legalization, refusing to concede even the benefits of the drug as a form of medicine.

Still, states have already taken incredible measures to pass laws and initiate regulation. What impact could Trump really have on the industry? It turns out a lot. Here are four scenarios we might see over the next four years.  Continue reading

Legal marijuana has resulted in an uptick in supply, which, as Bloomberg News recently reported, has dampened the profits of marijuana growers, who are seeing the price of pot plunge. However, as the report indicated, this may be an opportunity for companies that are able to carve out a niche by cutting production costs for cultivators. greenhouse

Once-illicit growers have been banking on some degree of legalization, investing millions in facilities and factors that can help in the growth and processing of the drug. But there has been stiff competition in the marketplace, and that has driven down the average cost that wholesalers are willing to pay – now down to about $1,300 a pound in Denver since January 2014, when sales to all over-21 adults became legal in Colorado. That’s a nearly 50 percent drop in a span of just two years.

As supply of the drug has ballooned, growers are now looking to invest in the latest-and-greatest technology to help them cut down on their turnaround time. Any marijuana business that can help growers focus on efficiency is going to find themselves an edge in the market.  Continue reading

A recent audit of the U.S. Postal Service indicates there are few safeguards to prevent against internal theft of packages containing marijuana. box

The U.S. Postal Service employs some 500,000 people nationally, and most do their job with expedience and integrity – often despite having to deal with the public in their less-than-likable moments. Still, an investigation was launched by the service’s inspector general’s office after several reports of theft of so-called “pot mail” surfaced.

It’s important to point out here: The U.S. Postal Service controls the general mail and that is overseen by the federal government. Even though California, Colorado, Washington state and others have approved medicinal and recreational marijuana laws, it is illegal to mail these items via the postal service. Doing so could lead to a felony charge. Even private carriers, such as FedEx, refuse to ship items that would otherwise be banned for transportation under federal, state or local laws, rules or regulations. What’s more, these private carriers have the option of calling police to report if there is a package suspected to contain marijuana. Private courier services might be less discerning in the kinds of packages they deliver, but marijuana delivery – even in states where recreational marijuana is allowed – is usually still illegal unless it’s done on the site of a licensed marijuana dealer. Continue reading

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