Articles Tagged with Los Angeles cannabis business lawyers

The continued expansion of legalized marijuana in states is leading to one surprising result: overproduction of cannabis businesscannabis. Oregon in particular is reporting an excess in cannabis production, which is driving down the price of marijuana at dispensaries across the state, according to Associated PressAs a result, growers are exploring more options, including hemp (a low-THC strain of cannabis used in industrial goods) and CBD oil (made from the non-psychoactive compound in marijuana, cannabidiol).

It’s hard not to recognize the irony in this latest advancement: while hemp is a benign, useful resource that makes excellent, durable fabric, paper products, and oils, it was marijuana that helped usher it back into the spotlight. Marijuana has now been legalized in 29 states and Washington, D.C., at least for medical use with a handful also allowing recreational. This is in defiance of federal regulations prohibiting the sale or use of marijuana. California was the first to allow medical use with the Compassionate Use Act of 1996. It wasn’t until 2014, however, that the Agricultural Act, Sec. 7606 allowed agricultural departments and higher learning institutions to start cultivating hemp for research. Senate Majority Leader Mitch McConnell (R-KY) recently spoke in favor of a bill that would give power over hemp regulation to the states. Continue reading

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

cannabis businessOnline media giant YouTube has enacted a host of more stringent enforcement guidelines, seemingly at random, restricting and even shutting down many channels its representatives claim violate its policies. Gun-related channels in particular have come under scrutiny. A bit more perplexing, however, is the site’s more aggressive stance against cannabis-related videos recently, sending warnings, flagging content, and shutting down entire channels, particularly those that seek to educate and advocate. Even after complying with warnings, channel owners said they were suspended. Many of the channels had been around for years, some almost since the beginning of YouTube, according to a Leafly article.

In the early days of legalization, before marijuana reached the popularity it is enjoying today, the Internet was the best place for cannabis advocates, business owners, and medical practitioners to learn and to share information. YouTube has always played a big part in that. The highly visual platform was an ideal way to show growing methods and techniques to people on the other side of the country. Today, a bounty of resources exists, but these ground floor YouTube channels still have a wealth of experience to offer. Continue reading

For many cannabis businesses, social media seems like the ideal place to advertise. Facebook provides many tools forcannabis business advertisers that allow them to focus their audience in a way that would be extraordinarily beneficial for marijuana products and dispensaries. They would be able to narrow down the viewers to only include people in states where cannabis is legal. They would also be able to add age restrictions, ensuring as much as possible that minors would not be exposed to the ads. It’s really a win-win, except for one very annoying catch.

Marijuana businesses are prohibited from advertising on Google or Facebook.

A recent report from Washington Post examined the challenges marijuana businesses face advertising to their customers while pot remains illegal under federal Controlled Substances Act, 21 U.S.C. Section 812. The act outlines guidelines by which to classify certain drugs based on how dangerous a risk they pose, whether they have any medical benefits, and if they are addictive. Currently, marijuana is Schedule I, the most restricted classification on the list, despite no evidence it fits any of those qualifiers. That very same act (under Section 843) states “It shall be unlawful for any person to place in any newspaper, magazine, handbill, or other publications, any written advertisement knowing that it has the purpose of seeking or offering illegally to receive, buy, or distribute a Schedule I controlled substance.”

So how are there so many marijuana ads out there?

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For many years now, attorneys with the Cannabis Law Group in California have beencannabis business working with medical marijuana operations obtain compliance with the law. More recently, we’ve been on the forefront of helping recreational marijuana businesses align their operations with the regulatory parameters set forth in Proposition 64 Jan. 1, as well as those guidelines established by local governments.

However, the level of success a business owner can achieve requires help from all levels, including government officials setting regulations and tax rates. Many owners face a broad range of challenges when transitioning from medical to recreational sales or opening a business for the first time under the new adult-use standards.

Rob Bonta (D-Oakland) and Tom Lackey (R-Palmdale) want to ease some of those pains. They have introduced Assemblybill 3157, which would reduce the state marijuana excise tax to 11 percent for three years. The tax currently sits at 15 percent. The bill states: “The cumulative tax rate imposed by existing law is substantial and undermines the legal regulatory system if high taxes cause prices to far exceed that what is found on the black market.”

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