Los Angeles marijuana business lawyers

February 8, 2019

California Ranks in Top 5 for Marijuana Business Entrepreneurs

Marijuana business entrepreneurs are increasingly striking green in the Golden State. If you’re looking to launch a new pot shop or any company ancillary to the cannabis industry: California is a prime location. Our Los Angeles marijuana business attorneys could have told you that, but this comes from a new report by FitSmallBusiness.com, which ranked California the No. 5 best state in the U.S. for cannabis start-ups. marijuana entrepreneur

The study analyzed numerous factors, including how easy it is for a new business owner to enter the market, what it costs to do so, how much you’ll pay in taxes, how many laws and regulations exist and the overall market opportunity.

Oregon wrestled the No. 1 spot, Colorado No. 2, Michigan No. 3 and Alaska No. 4.

The fact that we aren’t first – despite being the biggest legal marijuana market despite being the largest marijuana market – was attributed largely to our patchwork of laws and hefty taxes (15 percent excise and a sales tax for recreational product). There’s also a mid-range startup fee – $5,000 for business applications. Compare that to Oregon where the fee is a cheap $250 but then also to Illinois, where a cultivator licensing fee costs $200,000 – all but ensuring any prospective small business owners would be pushed out.

Still, California secured the most recreational marijuana revenue of any in 2018 – it’s very first year – at $2.75 billion. Continue reading

December 5, 2018

California Cannabis Insurance: Risks and Regulations

By Cannabis Law Group

Almost all California businesses know they’ll need to secure some type of insurance. Unfortunately, as our Los Angeles marijuana business attorneys know full well, companies that deal in cannabis face a host of major hurdles for this essential service. Although the California Insurance Commissioner has approved a handful of insurance carriers to offer insurance coverage to the cannabis industry this year, giving growers and distributors at least some options, there is a good argument to be made that cannabis companies need an insurer tailored to meet the unique needs of the industry – just like they require an attorney who specializes in marijuana law. Los Angeles marijuana lawyers

Although it has become easier this year for cannabis companies to find insurance coverage than ever before, Los Angeles marijuana business attorneys recognize the industry is still very under-served.

Most cannabis insurance primarily focuses on product liability coverage, as explained in a recent article by Insurance Journal. However, there are a number of other potential liabilities too for which cannabis companies likely could use insurance coverage. That’s an opportunity for insurance companies, but of course many are keenly aware of the risk, given federal laws pertaining to money laundering when doing business with any enterprise that derives income from illegal sale of cannabis. Continue reading

December 3, 2018

California Cannabis Testing Lab Shut Down Amid Reports of Doctored Lab Results

By Cannabis Law Group

Hundreds of batches of marijuana products may need to be recalled and retested after a California cannabis testing lab surrendered its license following a state inspection reportedly revealed falsification of product testing results over the last four months. Los Angeles marijuana business lawyers recognize this could have substantial impact on statewide supply and industry operations heading into the new year. That’s because come Jan. 1, 2019, a host of additional marijuana testing requirements go into effect, and cannabis oils, flowers and edibles are required to undergo more rigorous testing for certain toxins like heavy metals. This is bad news because bottlenecks at state-authorized testing labs were already beginning to form, slowing the process of getting these products from seed to sale. Los Angeles marijuana business lawyers

The lab in question, Sequoia Analytical Labs in Sacramento, was undergoing a routine inspection late last month when state investigators with the California Bureau of Cannabis Control noted that in testing for 66 pesticides required by law, tests for 22 of those were not correct, thanks to a “faulty instrument.” Furthermore, the bureau reported the lab director was aware the results were erroneous, and not only failed to intervene and take corrective action, but instead falsified lab results to indicate the products were safe when in fact they may not have been.

Safety Concerns for Faulty Testing Prompt Marijuana Business License Forfeiture Continue reading

October 22, 2018

California Marijuana Business Lawyers See Cultivation Take Root on Central Coast

By Cannabis Law Group

Situated right between the two biggest cannabis consumer hubs of Los Angeles and San Francisco, the Central Coast of California is poised to become potentially one of the core producers of the plant statewide (or nationally, though interstate sales are barred). This fertile region has long been ripe with vineyards, renowned for producing some of the country’s best wine. Orange County marijuana business lawyers understand that as cannabis cultivators have been cropping up in the spaces between, many farmers are beginning to see it not so much as competition but as a chance to reinvigorate the agricultural traditions that have lagged in recent decades. From Santa Barbara County to Monterey, more marijuana farmers have been licensed in the last year than anywhere else in the nation. Still, this promise is tempered by concerns that explosive unchecked growth could lead to serious problems. California marijuana business attorney

To be sure, the Emerald Triangle region of Northern California (comprised of Trinity, Mendocino and Humboldt Counties) grows the most marijuana by volume, hence the nod to greenery in its new moniker. However, if the pace of cannabis farming keeps up at the current clip, the Central Coast could soon surpass the northern neighbor region. And the region has a unique advantage over the Emerald Coast: No deep roots in the gray or black market.

Our Orange County marijuana business lawyers have been at the forefront of this industry, which has ballooned to an estimated $4 billion-a-year, and climbing. It’s been beneficial to the local tax base and also presents a new wave of opportunity for agricultural entrepreneurs seeking a legally sound yet lucrative opportunity. While the new law hasn’t entirely erased the stigma surrounding marijuana, the Central Coast lacks the cumbersome challenge of working to bring into compliance well-established underground growers transitioning into above-board – but heavily-regulated -operations. The risk of government raids is much lower (though not erased completely), but so are the profits, whittled by expensive new mandates and taxes. Operational, financial and legal concerns also persist as long as the drug remains illegal in the eyes of the federal government. Continue reading

August 25, 2018

Candidate Targeted by Bank for Support of Marijuana

By Cannabis Law Group

It is common knowledge among our marijuana business attorneys and our clients that banks are highly restricted in how they can interact with the cannabis industry. Wells Fargo, however, recently took those restrictions too far when the bank closed the account of a candidate in Florida who made cannabis legalization a tenant of her campaign platform. According to New York Times, Nikki Fried is running for Florida agricultural commissioner and said expansion of the state’s current program is her highest priority.

The candidate runs her campaign finances through Wells Fargo, who questioned her support of marijuana and whether or not she also was planning to take donations from marijuana businesses to fund her campaign. When her campaign workers confirmed she would take such donations, Wells Fargo made an unprecedented move in shutting down her account. Continue reading

June 19, 2018

Long Beach Finally Passes Recreational Marijuana Business Policies

By Cannabis Law Group

Long Beach will soon be the next city in Los Angeles County to embrace recreational marijuana business plan marijuana after its city council voted overwhelmingly to regulate industry operations. The council passed a series of amendments that will set guidelines for cultivators, testing labs, distributors, and dispensaries in the city, according to an article from Press-Telegram. The 7-1 vote reflected a strong support from council, with the support of the mayor as well as the residents who voted for Proposition 64 in November 2016.

City staffers estimate the move could bring in about $750,000 in taxes from recreational sales next year and a whopping $4.5 million from medical marijuana taxes. City officials also hope to stimulate the economy with a clause that requires collective-bargaining agreements with United Food and Commercial Workers 324, the union that represents cannabis workers, raising the bar on the quality of jobs provided by local establishments. Continue reading

June 11, 2018

STATES to Feds: Marijuana is None of Your Business

By Cannabis Law Group

A bipartisan blend of politicians has come together to support a bill that could finally offer some concrete relief from the oppressive federal law that continues to bind the hands of marijuana businesses despite state legalization. The STATES Act, Strengthening the Tenth Amendment Through Entrusting States, is a more formal way of declaring that state laws regarding cannabis usurp the federal government’s Schedule I classification under Controlled Substances Act, 21 U.S.C. Section 812.

According to a report from Leafly, the bill allows representatives who refuse to step into the 21st Century to support marijuana businesses without taking a stance on marijuana at all. It turns the matter purely into a states’ rights issue, which has become the great unifier in the cannabis debate. It also removes industrial hemp from the definition of “marijuana,” freeing many industries that create products unrelated to the psychoactive properties of cannabis. Continue reading

May 19, 2018

Marijuana Opponents Learn to Embrace Joint Efforts

By Cannabis Law Group

The fight for marijuana legalization is turning a corner in the U.S. Nowhere is the change more evident than in marijuana business Michigan, where recently an anti-marijuana action committee has flipped its stance in an attempt to try to gain control of state regulations, according to a Detroit Free Press report. The group, The Committee to Keep Pot Out of Neighborhoods and Schools, has been fighting a ballot proposal to legalize recreational marijuana in the state. However, as it is becoming more clear the initiative has growing support, the group is trying a different tactic: encouraging state legislators to fully legalize marijuana by passing an adult-use bill.

As our attorneys can explain, those opposing recreational cannabis in the state see the writing on the wall. They know if they allow the issue to appear on the November ballot, it has a strong chance of passing. However if group members can convince the Legislature to take up the initiative and amend it with strict regulations akin to the current medical marijuana guidelines, they are hoping to get a law on the books that is more restrictive than what voters might pass. One of the key differences would be how licenses are issued. Medical marijuana establishments currently obtain licenses through a board put in place by the governor, as well as House and Senate leaders. The ballot initiative would instead put licensing in the hands of the Licensing and Regulatory Affairs Department. Continue reading

May 14, 2018

Ohio Marijuana Legalization Struggling But Still Alive

By Cannabis Law Group

Marijuana laws in Ohio have experienced a bit of a failure to launch. In 2015 a legalization ballot measure was voted marijuana regulations down, largely due to a scare campaign that positioned the 10 pre-designated cultivators as a monopoly. In 2016, HB-523 was signed into law by Gov. John Kasich that set up a process for medical marijuana in the state. Since then, however, the initial phase has been a lumbering one. Advocates remain optimistic, though, pushing now for a state constitutional amendment to legalize recreational marijuana.

On the medical front, Ohio’s program is under scrutiny in court, as a judge in the Franklin County Court of Common Pleas is determining whether or not to delay licensing for cultivators, and potentially the launch of the program. According to Cleveland.com, one grower applied for a license and sued the Ohio Department of Commerce after it was denied, claiming there was no appeals process as promised. Reported errors in the scoring of applicants and complaints about officials not following their own rules in the selection process have led to other lawsuits. With only 12 initial promised licenses for large-scale cultivators, the spots are highly coveted. Continue reading

May 12, 2018

Fresno Law Enforcement Doesn’t Kid Around With Marijuana

By Cannabis Law Group

Despite legalization of recreational marijuana sales earlier this year, Fresno remains one of the communities wherein marijuana business cannabis-related activity is still banned: No recreational sales, no medical sales, no commercial growing, no testing, no distribution, no manufacturing. Residents can grow indoors for personal use or if they are a caretaker, but that’s it.

Still, officials know of more than 70 unlicensed sales operations in the city. Law enforcement agencies are stretched thin, however, so they have to prioritize their time and resources.

They recently focused their efforts on one specific dispensary, according to High Times, which was reported to be selling high-potency cannabis candy wrapped in packaging that was appealing to children. Agents seized 150 pounds of the candy and more than $200,000 after a two-month investigation of the dispensary. Six dispensary operators were given misdemeanor marijuana citations.

When it comes to sales of marijuana, which is still considered an illegal Schedule I narcotic under the federal Controlled Substances Act, 21 U.S.C. Section 812, it wouldn’t seem like packaging would be the top priority for law enforcement. However, keeping cannabis out of the hands of children has been a prevalent and important theme for everyone in the legalization process. No one on either side of the issue wants to see cannabis in the hands of children. Relevant restrictions have included keeping cannabis retailers a certain distance from parks, schools, and places where children regularly frequent, as well as making sure tax money is allocated for education and prevention programs geared at students. Further, regulations dictate that “packages and labels shall not be made to be attractive to children,” according to Medicinal and Adult-Use Cannabis Regulation and Safety Act Sec. 74. Continue reading