Articles Tagged with L.A. business attorney marijuana

Spice, K2, synthetic marijuana: whatever you call it, we know these alleged cannabis knockoffs have about as muchcannabis business in common with the natural drug as a circle to a square. Lawmakers have long been chasing down these dangerous substances, to no avail. But the Illinois State Senate is taking steps to close loopholes that manufacturers have been manipulating once and for all, according to Chicago Tribune.

SB-2341 would expand the list of Schedule I controlled substances to include all synthetic cannabinoids not approved by the U.S. Food and Drug Administration. This is a departure from current methods to control the substance, which has largely involved outlawing by formula. As our cannabis business attorneys can attest, this has so far been a fruitless system of control because each time a formula or chemical is outlawed, manufacturers alter it enough that it qualifies as a new substance. Just like that, a new synthetic cannabinoid is back on the market, but not necessarily any safer. The new law, if passed, would put the onus of proof on the manufacturer that a synthetic cannabinoid is safe rather than government officials proving the substances to be dangerous after they have already hit the market.  Continue reading

Marijuana business owners have many reasons to carefully manage their assets. Now, a recently-published article by the U.S. Department of Justice’s Executive Office for U.S. Trustees gives another: Marijuana businesses cannot expect help with liquidation or restructuring in the event of bankruptcy. The executive office for trustees is the watchdog agency over bankruptcy proceedings. marijuana business lawyer

Like so many complex legal issues for cannabis business owners, this comes down to the conflict between state and federal law. Although California voters approved the legalization of recreational marijuana with Proposition 64 last year (and medical marijuana more than 20 years prior), it is still an illegal Schedule I substance under 21 U.S.C. Section 811, the Controlled Substances Act.

Per the recent article Justice Department officials published in the ABI Journal, the bankruptcy system cannot be used by cannabis businesses because:

  • Bankruptcy cannot be used as an instrument in the ongoing commission of a crime, and thus reorganization plans that allow or require the continuation of illegal activity can’t be confirmed;
  • Bankruptcy trustees and other fiduciaries of estates cannot be made to administer asserts if the act of doing so would necessitate violation of federal criminal law.

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