Articles Tagged with California marijuana business attorneys

Californian cannabis consumers should be aware that the Golden State is now flooded with toxic vape pens sold at illegal marijuana stores. Recent tests run on cannabis vaporizer cartridges purchased at bootleg pot stores across California show frightening levels of contamination, both in the way of toxic pesticides and dangerous vitamin E oil.employment attorney

Amid a nationwide crisis that has seen more than 1,400 people sickened, and at least 33 dead from vaping-associated pulmonary injury (VAPI), counterfeit vape products sold on the black market are all too often a common denominator reported in VAPI related hospitalizations.
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marijuana bankingIn the nation’s first ever vote on a stand-alone marijuana bill, the House of Representatives voted to allow federally insured banks to serve cannabis businesses in states like California, where marijuana use is legal.

First introduced by Rep. Ed Perlmutter, D-Colorado, the Secure And Fair Enforcement (SAFE) Banking Act simply states that deposit insurance cannot be cut off by federal authorities, nor can “any other adverse action” be taken against a financial institution for working with cannabis businesses in states and territories where marijuana use is permitted.

A great number of Democrats from Southern California were among the 206 co-sponsors of the bill, as was GOP Rep. Duncan Hunter of San Diego. Rep. Katie Porter, D-Irvine, also introduced an amendment making it clear that new banks and credit unions would be protected by the bill too. Continue reading

marijuana dispensariesAs California’s legal marijuana industry continues to bloom, so too does a well-stocked black market, comprised of unlicensed, locally grown cannabis, and a plethora of counterfeit cannabis products.

Fake THC Cartridges Are Flooding California
Of all counterfeit cannabis products, refillable THC cartridges used inside vaping pens are currently most common. Surprisingly, states like California – where recreational cannabis use is legal – appear to be most flooded with counterfeit products. Big brands like Kingpen and Rove have tried to get ahead of counterfeits by repackaging their products, but counterfeits have shown they can keep pace, often reproducing new packaging almost as quickly as the legitimate brands.

And industry insiders unanimously agree, the fakes are getting better all the time. Many knockoff THC vape pens are comprised of illegally but locally grown cannabis, which producers then stuff into refillable cartridge pens, before attaching counterfeit labeling they’ve purchased online, and selling the finished counterfeit pens at discounted prices to illegal pop up shops. To most consumers and law enforcement officials alike, it’s very difficult to tell a real pen from a fake one.
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cannabis lawyerCalifornia’s unlicensed farmers in Humboldt County are on notice, with a new crackdown on cannabis growing now in effect. After issuing 1,500 provisional cannabis licenses, state and local authorities are increasingly pursuing farmers for operating without permits.

And it’s not what we’ve seen in years past. Growers need not fear raids from Sheriffs in Humboldt, as much as they should civil action. That’s right, fines are now being issued in the amount of $10,000 per day, for each violation, capping out only at $900,000. And if that isn’t deterrent enough, next comes property liens and forfeitures.
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As the black market for pot sales shows little sign of slowing, Californian authorities have notably increased enforcement action against illegal cannabis traders. Over the last 12 months, raids by law enforcement on black market pot businesses have increased threefold, when compared with similar activity conducted in the year prior. As a result, unlicensed pot growers and sellers have seen a total of $30 million worth of cannabis products seized. But even amid this additional ramp up, cannabis industry insiders say even more activity is needed to curb illegal pot sales across the Golden State.

For context, in 2018 local law enforcement worked in conjunction with the state Bureau of Cannabis Control, and together they served six unlicensed cannabis businesses with search warrants. These raids resulted in the seizure of more than 1,500 pounds of marijuana, said to carry a street value of $13.5 million.

Calilfornia Cannabis Business Licensing Lawyers

Comparatively, according to data release in July, within the first half of 2019 alone, the bureau had already served 19 search warrants to unlicensed sellers. Those raids were successful, and saw more than $16.5 million worth, or about 2,500 pounds of illicit marijuana, confiscated. Just shy of $220,000 cash was also seized from cannabis businesses operating illegally during this time.

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California cannabidiol (CBD) products are on the map, and investors are taking notice. But given that CBD-infused products are still relatively new to market, regulators continue to closely review the category. For this reason, acquisition strategies may be a ways off yet, but industry insiders predict consumer companies will see high minority investment interest in the short term.

CBD is naturally found in cannabis plants, and is widely known for its relaxing properties. But CBD won’t produce a ‘high,’ as it lacks the psychoactive tetrohydrocanabidiol (THC), found in marijuana.  CBD-derived products have quickly grown in popularity, thanks largely to a wide range of potential health benefits, including relieving pain, anxiety, seizures and brain injuries.

California Cannabis Investors

According to Michael Lux, partner at Crowe accounting firm, the next 6-12 months will involve strategic minority investments in the CBD space. He noted too that while the majority of CBD companies are of interest to investors, they are still less than five years old, so they’d likely need a little more time before preparing to engage in full exit strategies.

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California shoppers are about to see a brand new line of cannabidiol (or CBD)-infused beverages hit supermarket shelves this week, despite the fact such products are still illegal. Even though federal U.S. law now allows for the creation of CBD based products (in the form of tinctures, capsules, lotions and oils, etc.), FDA guidelines restrict CBD food and beverage interstate product sales.Los Angeles cannabis business attorney

Alternative health food observers can likely tell you that locally made CBD food products have been steadily propping up all across the country for a couple of years now. As functional foods, CBD products have grown in popularity thanks to their relaxing properties, but they won’t produce a ‘high’ as they lack the psychoactive tetrohydrocanabidiol (THC) found in marijuana.

To buy CBD products until now, consumers have typically had to seek out alternative health food stores, neighborhood dispensaries, or mom-and-pop market stalls. Now, the Oki brand is about to change that. With its CBD-infused, flavored water and iced tea lines, Phivida – the premium functional food and beverage manufacturers of the Oki brand – is among the first to mass produce CBD-infused beverages and is poised to make its 360,000 bottles already produced, available in mainstream grocery stores.
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Santa Cruz is a community that is known for its laid-back lifestyle – the redwoods, the shoreline and red wine vineyards. Just don’t mess with their pot shops. Los Angeles marijuana attorneys have learned the city is suing the state in an effort to fend of out-of-towners from nearby San Francisco and Oakland from cannabis from swiping customers from their home-grown cannabis companies.Los Angeles marijuana delivery driver

The city’s chair of the board of supervisors argues that local businesses are being undercut by these services because the playing field isn’t level, and further the city has no say in regulating the interlopers.

Santa Cruz Says State Backing Out on Its End of the Bargain

Recently, the state altered its regulations to permit state-licensed marijuana delivery companies to sell their product wherever consumers are. Santa Cruz isn’t the only city taking issue with this – 25 in all are suing the state, asserting this new stance is a work-around the provision of Proposition 64 (which legalized marijuana for recreational sales and use) that assured local governments would have authority to put a stop to brick-and-mortar sales. Continue reading

Legalization of marijuana has brought a number of enterprises and employees from the shadows of the black market. One of those includes the work of so-called “bud trimmers.” Los Angeles marijuana employment attorneys know that because so many of these workers are from other places, flocking in heavy numbers during harvest seasons, they are sometimes referred to as “trimmigrants.” These workers were historically subject to an outsized risk of the same sort of abuses many migrant workers face – unfair wages or wage theft, discrimination and sexual harassment.Los Angeles marijuana employment attorney

An article published two years ago in “Broadly” was written by a woman who worked for years during harvest season on illegal marijuana farms in rural California. The isolation of the site made it all the more dangerous for young female workers – not only because they risked jail time and felony charges for unregulated, untaxed income, but because they are frequently (especially on the black market) targeted for sexual harassment. One investigation by the Center for Investigative Reporting’s Reveal found in 2016 that the number of sexual assaults suffered by female trimmers was far underestimated.

Ideally, legalizing the drug would have brought these sort of elements of the industry to light, making workers safer. Perhaps to some degree, that is true. However, as Los Angeles marijuana attorneys with practice areas both in the budding cannabis law as well as California employment law, we recognize these workers may still be vulnerable, especially if the operation is still illegal (as a fair number still are, given the high taxation and testing requirements on legal marijuana and the limited number of cultivators and distributors allowed, which varies by jurisdiction. Trimmers are an inherent part of cannabis cultivation process, though the hours are long and the work tedious.  Continue reading

Banking for marijuana businesses has been fraught with legal perils. As Los Angeles marijuana business attorneys can explain, this stems primarily from the fact that no matter how many states allow marijuana, the Department of Justice continues to consider the drug unlawful according to federal law, which puts banks in the legal cross-hairs, thanks to money laundering statutes. That’s why despite being a multi-billion dollar industry, only 30 percent of cannabis businesses have access to banking.cannabis attorney blog

That may be changing, though the pace will truly depend on how aggressively the federal government pursues violators pursuant to federal law. The Anchorage Daily News reported a credit union plans to launch a pilot program intended to extend banking and checking services to marijuana-related businesses that otherwise operate largely in cash. As noted by the credit union’s CEO, the lack of financial services for cannabis companies has resulted in essentially a cash crisis for marijuana businesses as well as a safety issue for local communities, as these locations may be targeted for strong arm robberies.

Alaska, like California, allows marijuana cultivation, sale and possession for recreational purposes, and has done so since 2014. Yet as retailers have cropped up throughout the state, they face problems similar to those in this state, which is they must operate in cash and owners have even had their personal bank accounts abruptly closed. The credit union says it hopes to address this market need and also improve community safety by giving cannabis companies another option besides cash-only operation. Just in Alaska alone, the industry is handling some $1.5 million monthly – all in cash, according to local media. Continue reading

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