Articles Tagged with Los Angeles cannabis business attorney

marijuana businessCalifornia lawmakers, in late January, breathed new life into a proposal that could cut the state’s taxes on marijuana for the short term, to help boost the struggling legal market.

Gov. Gavin Newsom has shown his support for the bill, as he now takes aim at updating California’s cannabis regulations.

Assembly Bill 1948, introduced by Assembly Members Rob Bonta, Ken Cooley, Reggie Jones-Sawyer, Tom Lackey, and co-authored by Assembly Member Mark Stone, seeks for three years to:

  1. lower marijuana retail sales state tax from 15 percent to 11 percent; and
  2. eliminate the cultivation tax altogether.

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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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In January, the state of California kicked off an online rollout of its marijuana inventory tracking system. At a glance, marijuana businesses across the Golden State appear to be successfully reporting product inventory each day, via the California Cannabis Track-and-Trace (CCTT) system. But not without some growing pains.

To start, the idea of tracking marijuana traveling throughout the supply chain sounds simple enough. In theory, all cannabis products would be given unique identification numbers, noting from which ‘batch’ or ‘lot’ they were born. Products would then be sent to labs for testing. Next, approved products would be passed from producer to distributor, and finally to retailers for sale. At each step, the state should be able to track each piece of marijuana as it moves through the chain, making sure nothing is being redirected out of state, and ensuring everybody is paying their required taxes.

California Cannabis Lawyers

But in practice, a few hiccups quickly come to light. First up, only businesses holding ‘provisional’ or ‘annual’ licenses are required to subscribe to the track-and-trace system. And until last month, there were more than 600 marijuana businesses operating on ‘temporary licenses,’ who would not have had to track-and-trace. This means, there was no way regulators could comprehensively account for every legal product moving about the state.

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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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marijuana businessMarijuana supporters in California rejoiced late last month as legislation passed by the U.S. House of Representatives could afford the industry more freedom to grow. Currently, the recreational use and sale of marijuana is legal in California, along with 10 other states, and Washington D.C. But federal law continues to classify cannabis as a Schedule 1 narcotic. While it is yet to happen, this makes folks in the cannabis industry weary, as the door remains open for the federal government to prosecute against cannabis related businesses, even in states that have legalized marijuana.

The Blumenauer-McClintock Amendment
The lauded legislation, known as the Blumenauer-McClintock amendment, would prohibit the Department of Justice from using federal funds to interfere with California state laws, or the laws in any state or district, legally permitting the regulated adult-use of cannabis.

Supporters for marijuana law reform are praising the legislation. Justin Strekal, Political Director for pro-marijuana organization, NORML, called it “the most significant vote on marijuana reform policy that the House of Representatives has ever taken.” That’s because the cannabis industry would certainly welcome extended protections within states that already permit the legal use and sale of marijuana.
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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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The State of Nevada is facing a series of cannabis lawsuits alleging the process for awarding pot licenses is shrouded in secrecy. The litigation doesn’t allege that public officials are getting any sort of kickbacks from the firms awarded licenses, but say the state should nonetheless be more transparent about its processes. Los Angeles marijuana business lawyer

Since recreational cannabis became legal in Nevada two years ago, our Los Angeles marijuana attorneys understand the state has released only trickles of information about the state criteria for the new market. TIME Magazine in a recent report flat-out stated, “No one knows for sure” how state officials are awarding new licenses, only that they are being awarded because dispensaries are opening without complaint from the state.

Several plaintiffs are seeking to learn more about how the state chose the companies it did in awarding 61 licenses out of 462 vendors to sell recreational marijuana to adults. Continue reading

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

When starting a cannabis business, there are obvious considerations, such as product, employees, and location. Anmarijuana business equally important, but less discussed, element is security. Considering some security measures are actually built into the regulations for marijuana businesses, this is certainly not something to be taken lightly. Cannabis Business Times recently broke down security recommendations and requirements for marijuana cultivators, and our experienced legal team can expand on these tips and explain the rules other types of businesses must also understand.

It may seem basic, but one of the most important steps the report outlined was assessing risk. You don’t want to be reactive to your security needs, only putting measures in place after a problem presents itself. It’s important to be proactive, and identify all the risk areas, particularly any touch-points where product could be removed from your facility without your knowledge.

Video surveillance is one of the top methods of security in any type of marijuana business, but there are many aspects that must be taken into consideration before choosing the system that’s right for you. Is the video quality high resolution enough? CA Code of Regulations Div. 42, Ch. 1, Sec. 5044 states that minimum camera resolution must be 1280 x 720 pixels. The ability to identify any person recorded must be clear and certain. Your system cannot be in-house only; it must be accessible through the Internet. Continue reading

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

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