While other dispensaries carried on with business as they always had done. They kept buds out and available for close-up inspection before being weighed, and a complimentary joint was often handed out to welcome first time purchasers. But if you shop at a dispensary of this kind today, chances are it’s an unregulated, illegal shop.

How Did it Come to This? Thanks to a host of bureaucratic challenges — including sky high permit application costs, stringent licensing requirements, limited product availability, and a host of other hurdles — moving a once legal medical marijuana dispensary into the legal realm of today’s marijuana marketplace, is neither cheap nor easy. As our Los Angeles cannabis attorneys can tell you, California is littered with marijuana businesses that were once legal for medicinal customers, but now are not.

Plenty of law abiding companies risked all they owned to secure and maintain state licenses and permits required to keep their businesses legal. Only to find their operations quickly losing market share to their much cheaper, and unlicensed, competitors.

A New Tool to Help Bolster Legal Businesses While the majority of California’s legal marijuana stores became compliant in the current era by updating their old stores and systems, there were also many who did not. So with both legal and illegal outfits looking much the same, it has been very difficult for customers to know the difference.

To help shoppers make the distinction quickly, the Bureau of Cannabis Control (BCC) has created a emblem to display in all legal marijuana businesses. Each one possesses a unique QR code, which quickly links customers to vital licensing information for that particular business. The QR code emblems are already being rolled out across the state, and will be complete in the coming months.

How Does the QR Code Work? To access information about a marijuana business, simply point a SmartPhone at a unique QR code, which generates a notification on your screen. Click that notification and you will see whether or not the store is licensed to conduct a cannabis business in the state of California. If not, it is an illegal store.

How Else Can You Tell if Your Store is Legal? Can’t find a QR Code in your store? You can also check CAPotCheck.com, which lists all legal marijuana businesses across California, and is searchable by business name, license type or location. When in store, customers can also learn quite quickly whether a store is licensed or not by asking questions of owners about product testing and taxes.

Alex Traverso, Assistant Chief of Communications at the BCC shared, “If you go into a shop and still see big bags and jars of cannabis on the shelves instead of individually packaged stuff, there’s a good change that it’s not a legal shop.”

Implications Launching the new QR program is proving a great way to help consumers determine quickly and easily whether they are shopping from a licensed store or not. From a product security standpoint, the unique code function of the QR code mechanism also serves as a tall hurdle for illegal businesses to replicate.

Business owners holding state permits are very much in favor of the new emblem. They want customers to know they are running a completely lawful business and that their products are safe, because to hold a state license, they can only sell highly regulated products. The QR codes and emblems themselves also serve as an accolade business owners can display, to tout all the hard yards they have committed to California’s legal cannabis industry.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Bureau for Cannabis Control – Search Form

A number of Californian municipalities are yet to meet the ideal cannabis social equity standings, largely due to cannabis businesses tussling with numerous other issues, like licensing hurdles, tax hikes and the continued strength of the illegal market.

That said, of late, a pressing for increased social equity within the state’s capital has emerged. A finite focus has been set on providing both business guidance and financial support for minority communities, as well as those disadvantaged by the war on drugs.

Equity applicants take note — the state’s capital aims to grant as many as 10 of its next dispensary licenses to applicants who meet the equity criteria.

If you need help preparing an equity dispensary license application, our Los Angeles marijuana business lawyers can help.

The precise number of licenses to be awarded is yet to be determined, and the Sacramento City Council will vote on the matter as early as March.

The CORE Commitment Officials in Sacramento are using the CORE program, established in August 2018, upon which to base their commitment to social equity licensing. The Cannabis Opportunity and Reinvestment and Equity Program provides guidance and funding to individuals who meet the social equity criteria, namely those with a prior drug-related arrest,, or living in a low-income community.

While none of the 30 businesses currently holding Sacramento dispensary licenses are run by minorities, Malaki Seku Amen, lead designer of the CORE program, said the city’s goal is to eventually grant half of all it’s licenses to social equity applicants.

Seku Amen is also the president and CEO of the Sacramento-based California Urban Partnership, which aims to build economic security within communities of color.

“It is our expectation that social equity applicants will be the exclusive owners of these next new licenses,’ Seku Amen said.

And making the distinction of “exclusive owners” is an important one. That’s because other cities have been shown to have granted social equity licenses in cases where non-minorities played dominant roles.

To safeguard against this, Brenda Davis, director of the CORE program at the Greater Sacramento League, which assists in the running of the program, explained recipients of the next 10 licenses must be graduates of the CORE program.

Amen also noted that prior to the CORE program’s launch, a focus on social equity was virtually non-existent.

“We will be satisfied when equity is real,” he said.

From Illegal to Licensed Businesses The main goal of social equity across the board is to add businesses that otherwise may only have existed on the illicit market, into the legal fold.

As an example, of the estimated 100 illegal delivery services and shop fronts in Fresno, California’s fifth-largest city, more than half are run by minorities.

Legal Implications Inviting those already familiar with the cannabis industry to join the regulated market makes much more sense than establishing a new industry for outsiders, and then having to regulate that.

Beyond the logical case, providing legal avenues for existing business owners is a win because not only does it build wealth for individuals, it also builds financial security for families, and uplifts entire communities.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: California Urban Partnership Cannabis Opportunity and Reinvestment and Equity Program

Since its passing in 2016, Prop 64 has earmarked its entire cannabis industry tax revenue, minus regulatory costs, to supporting public health, repairing the environment, and bettering public safety.

New parks, healthier children, broader educational opportunities, forest clean ups, drugged drivers removed from the roads, and criminal records cleared are just some of the areas already seeing big improvements thanks to Prop 64 tax revenue contributions.

And this is just the beginning. In mid January this year, Gov. Gavin Newsom proclaimed another $332.8 million in cannabis tax revenue would be allocated to social services for the 2020-2021 fiscal year.

The holistic Prop 64 picture is vast (its impact data spans more than a dozen state agencies, and countless local counterparts) and challenging to appreciate in its entirety. So with this article, our business cannabis lawyers aim to highlight some of the key initiatives already benefiting a great deal.

Recapping California’s Cannabis Tax Rates

• A 15% state retail sales excise tax
• A cultivation tax of $9.65 (raised from an initial $9.25)
• A state sales tax of 7.25% on retail cannabis sales, plus up to 1% local sales tax
• Local cannabis business taxes, ranging from 0% up to 15% (San Francisco has no local cannabis excise tax, whereas Oakland is 10%.)

Marijuana Tax Revenue Expenditures in California (Fiscal Year 2019-2020)

Once research and regulatory costs have been addressed, the remainder of funds are dispersed as follows:

• 60 percent to youth-focused anti-drug programs;
• 20 percent to environmental conservation; and
• 20 percent to public safety initiatives.

In year one alone (2019-2020), those disbursals totaled approximately $200 million. Given the cannabis tax increase introduced in 2019, fiscal year 2020-2021 allocations have also increased, now reaching $332.8 million.

$140.8 Million Covered Childcare for 11,000 Low-Income Children

The National Conference of State Legislatures states that for each dollar spent on child care and early education, society receives $17 in benefits.

In 2019-2020, 8,700 children in low income families received child care vouchers, allowing their parents to continue going to work. The 2019-2020 budget notes that this kind of initiative is so important because it helps keep kids engaged and occupied in a safe place, while mitigating the likelihood of their becoming involved with drugs.

Since the Great Recession, this program has suffered severe budget cuts on three separate occasions. With the help of Prop 64 funding, only now is the program returning to levels it maintained as far back as 2008.

A Quick List of Benefits Californians Enjoy Thanks to Prop 64 A snapshot of other sizable takeaways to note when recapping the impact Prop 64 tax revenue has already made, include:

• The scope of childcare assistance will increase in the 2020-2021 fiscal year, with Prop 64 providing $140 million to cover childcare for 11,000 children from low-moderate income families
• Cities that allow dispensaries will receive $44.8 million in grants to support public health and safety initiatives
• $39.9 million will be allocated to help combat illegal cannabis grows and to restore damaged wildlands
• In 2019 alone, Tulare County received $25.3 million to help facilitate the removal of meth, guns, herbicides and trash
• The DHCS is committed to countering health impacts for growing up a low-income minority. One program idea currently under consideration could see legal marijuana tax revenue used to employ released prisoners to help deter juvenile offenders.
• Social workers could see $30 million reinvested into their local communities
• $21.8 million has been earmarked to help establish safer roads
• Prop 64 asked the legal marijuana industry to pay its own costs, and it has. This year Prop 64 taxes paid for three state agencies. $57.8 million has been allocated to continue licensing and regulating the industry in fiscal year 2020-2021.
• $15 million has been carved out for science and policy research
• Through the 1 to 15 percent local cannabis business tax, legal cannabis taxes are also quietly paying for cop cars, new parks and ambulances throughout California. $100 million has been allocated to continue doing so in 2020-2021.

Legal Implications Its clear that many different sectors throughout the state of California have benefited greatly from the tax revenue generated by legalized marijuana.

It is important that the legal cannabis industry continues to receive support from legislators in making up ground on the illicit market. And the better the legal market does, the farther tax dollars generated can reach back to help improve day to day life for tens of thousands of people in local communities across the state.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Proposition 64

The 1996 Compassionate Use Act allowed growers and distributors to donate a portion of their marijuana crop to small, non-profit collectives (and later dispensaries) which in turn would pass them along for free to indigent medical marijuana patients. Many of these were suffering from conditions like epilepsy, AIDS, cancer, chronic pain and PTSD, and were able to avoid dangerous, addictive opioids and other powerful drugs.

But when Proposition 64 passed in 2016, legalizing marijuana for recreational use by adults in California, the crop started being taxed at virtually every stage of production and distribution. The compassionate use donations became virtually non-existent, as Prop. 64 called for a sunset on collectives by January 2019. (Today there are only a few dozen compassion programs through which a small number of patients receive free cannabis.) Although any adult over 21 can gift any other adult over 21 with up to one ounce of the drug at the time, dispensary owners risked breaking the law if they did so; it was considered illegal advertising. Those stores could lose their licenses. Therefore any cannabis that made its way into consumers’ hands was treated as a sale. Some suspect this is a significant part of what is driving black market sales.

Los Angeles marijuana business lawyers note however that there is a measure of relief in sight. In October, Gov. Gavin Newsom signed Senate Bill 34 making medical marijuana donations tax exempt. It goes into effect March 1st. State analysts estimate some $53 million in medical cannabis could be donated annually, enough to gift one gram of flower daily to 125,000 patients annually.

The new law will once again allow charitable cannabis giving by adding a special code for compassionate class cannabis. The law also extends growers a $9.25 per ounce cultivation tax break for what they donate to indigent medical marijuana patients. Retailers will be exempted from the 15 percent excise tax they pay for cannabis donated to patients.

What we don’t yet know is how many growers and retailers will participate. As it stands, many are already grappling with substantial losses, thanks to high taxes and testing costs and stiff competition from the black market. SB 34 allows cannabis companies to donate, but it still means they are in effect paying the state to make a donation. But even if state estimates are correct that only 1 percent of the existing legal crop is donated to needy patients, that would still work out to about $31 million worth of cannabis.

However, very few people have state-issued medical cannabis IDs these days. They are time-consuming and expensive to obtain. But one wouldn’t necessarily need to present a medical marijuana card to obtain a donation. Stores may establish their own policies for who qualifies. Some require proof of a doctor’s recommendation and some type of proof of disability, such as the stub of a welfare check.

In certain locations, like Berkeley, local laws require a certain portion of donations go to the needy. Prior to SB 34, many stores have launched fundraisers to make ends meet so they don’t fall short on their obligation. For many, SB 34 means they will no longer need to do so.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources: California Attempts to Revive Compassionate Cannabis Programs, Jan. 3, 2020, By Mark Kreidler, Los Angeles Sentinel

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.

The best way for brands and businesses to protect against counterfeits is to legally trademark cannabis products. Once cannabis companies have a trademark in place, Californian authorities then have jurisdiction to enforce against counterfeits. Without a trademark though, it’s very difficult to prosecute. If you need help trademarking your cannabis products, our marijuana business lawyers of Orange County can help.

A Budding Counterfeit Scene All across California, legitimate cannabis businesses are feeling the pinch. The problem is so wide spread that brazen bootleggers are even advertising counterfeit products on Instagram and Snapchat. An admin for DanksOfficial – a watchdog Instagram account cautioning marijuana users against buying THC cartridges on the black market – who prefers to remain anonymous, says unless consumers can test each cartridge, there’s no way to be sure a vaping cartridge is real or safe. Experts Warn of Health Risks Counterfeits Pose Just as vaping is increasing in popularity across the nation, associated long-term health risks are also becoming increasingly clear. The Center for Disease Control and Prevention (CDC) recently announced that 193 cases of severe lung illness, all possibly linked to vaping, have propped up across 22 states. While the CDC did not share exactly how many cases involved products containing THC, Dr. Illeana Arias, senior scientific advisor and acting deputy director for non-infectious diseases noted “in many cases” patients had confirmed using THC-containing products prior to feeling unwell.

Meanwhile, the California Department of Public Health (CDPH) recently stated as many as 28 cases of acute lung disease among people who recently vaped cannabis products, had been reported across the Golden State. Just this August, the CDPH issued a health alert in Kings County after a cluster of hospitalizations. Between July and August, seven healthy adults were admitted to county hospitals, all showing signs of severe pulmonary disease, after vaping THC products. Nancy Gerking, Kings County assistant director of public health, confirmed the products were all purchased from temporary, unlicensed pop-up shops in the local area.

At about the same time, we also saw the Bureau of Cannabis Control (BCC) launch a public awareness campaign warning consumers about the health risks associated with buying marijuana products from unlicensed dispensaries. That’s because knock off products are completely unregulated and avoid testing for pesticides or other contaminants, which can pose dangerous health risks.

Other industry insiders note, because licensed cannabis growers and businesses cannot distribute their goods to unlicensed stores without risk of suffering heavy fines from regulators, if big brand name products are showing up in unlicensed stores, then those products are almost always fake. Consumers can best protect themselves from subpar goods by buying all cannabis products from licensed, registered cannabis businesses. To check if a California cannabis dispensary is legitimate and meets the state’s high safely standards, enter their business name into the BCC online license search tool (www.CApotcheck.com). Be sure your retailer is listed there, before shopping.

Marked Down Knock Offs Bringing in Big Bucks The state’s registered marijuana operations are projected to make more than $3 billion combined this year. But that number is easily overshadowed by the $8.7 billion in revenue expected to be generated by the unregulated cannabis industry across California in the same time frame.

Legitimate cannabis business operators are at pains to compete. It is widely believed that counterfeits are boosting unlicensed dispensary sales, where business owners can afford to sell cannabis products at lower prices, because they’re skipping out on regulation costs and avoiding taxes.

Authority Clampdowns Showing Signs of Success The Los Angeles Police Department is making strides in limiting the rampant illegal cannabis trade. At the beginning of the year there were almost 300 illegal dispensaries operating in the Los Angeles area, compared to less than 200 today. With authorities primarily focused on closing unlicensed dispensaries, clamping down on counterfeit products is not yet a priority.

Rather than issuing search warrants that could lead to seizing knock off cannabis items, the LAPD is focused on first cutting water and power to properties hosting illegal cannabis activity. While this is a strong first step, some fear counterfeit products not seized when closing down illegal operations, can easily circulate somewhere else down the road.

Legal Implications The black market for cannabis activity is thriving, and counterfeits are boosting sales for unlicensed retailers across the United States. Without regulation, corners are being cut, product safety is in question and health risks are becoming a reality. Additionally, the sophisticated production of knock offs show little signs of slowing down.

In this climate, the best way for cannabis brands to protect the integrity of their products, their brand reputations and the well-being of their customers, is to secure product trademarks, invest in difficult to replicate product packaging, and aggressively pursue counterfeits.

Some industry stakeholders believe knock offs will abate as consumers become more informed over time, and others are frustrated that counterfeits are stoking unlicensed dispensaries, who are taking such a large portion of market share. Either way, legitimate cannabis outfits are working hard to stay licensed, and to keep their businesses running. It seems the longer it takes to clamp down on counterfeits, the harder it will become for legal businesses to continue trading. Let’s hope the ramped up authority crack downs continue to make inroads and pave a smoother path for legal cannabis business owners moving forward. About Cannabis Law Group The Los Angeles CANNABIS LAW Group represents growers dispensaries, ancillary companies, patients and those facing criminal marijuana charges. Call us at 949-375-4734. Additional Resources: The Center for Disease Prevention and Control California Department of Public Health Bureau for Cannabis Control California

would be difficult to tell. Thanks to some data analysis compiled by The Sacramento Bee, we can clearly see how local regulations have shaped the pot landscape in the state as a whole and how it is affecting people who live in more remote areas of California.

The report defined some regions of California as being “pot deserts” – areas where residents have to travel 60 miles or more to access legal marijuana at a licensed dispensary. An additional 29 percent have to drive 30 to 60 miles to the closest location. This disparity in cannabis access stems from the clause in Proposition 64 that allows local governments to establish their own set of recreational marijuana regulations or to ban sales altogether. While a majority of residents in the state clearly favor adult-use marijuana based on the 2016 vote, there is seemingly a desire among many districts to leave the actual growing, producing, and selling of the drug to other cities … cities far away from their own.From our years of experience, our Riverside recreational marijuana attorneys can say with certainty that much of this sentiment is rooted in outdated, outmoded, propaganda-riddled perspectives on marijuana. There’s a paranoia that expanding marijuana legalization in their towns will invite sketchy characters and create a seedy underbelly in their idyllic neighborhoods. Alas, by pumping the brakes on progress, they could be inviting the very thing they were afraid of right into their hometowns. Demand for marijuana, both medical and commercial, is increasing statewide as people learn more about it. By not providing a legal, regulated outlet for these people to access, local governments are making their communities vulnerable to black market sellers who very much still have a foothold in the state. The big cities are filling up with plenty of legal options for consumers to choose from, which could drive black market sellers to take advantage of these under-served pot deserts.

State Senator Ricardo Lara (D-Bell Gardens) recently introduced bill SB 1302 to try to allow delivery services to bring cannabis to these areas, giving a more practical option for patients who depend on medical marijuana as well as adult recreational users. The bill if passed into law would “prohibit a local jurisdiction from preventing delivery of cannabis or cannabis products on public roads, or to an address that is located within the jurisdictional boundaries of that local jurisdiction” so long as those involved in the delivery were in compliance with the Medicinal and Adult-Use Cannabis Regulation and Safety Act. Push-back from local governments is imminent, as well as overcoming the challenge of an extreme shortage of state-licensed delivery operations.

Our lawyers know the keystone to marijuana legalization is safe, affordable, and easy access to regulated cannabis. Any roadblocks give black market sellers room to grow, making it more difficult for licensed businesses to stay competitive. We hope state and local officials can quickly come to a compromise that allows cities to retain control, but also connects all of the voters of California with the marijuana they helped legalize. Perhaps in the process, those who are still in the dark about the benefits of marijuana will learn it’s not so bad after all.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients, defendants, workers and those facing criminal marijuana charges. Call us at 949-375-4734.

Additional Resources:

How Local Control is Creating Access Deserts in California, April 7, 2018, By Greg Zeman, Cannabis Now

More Blog Entries:

City-Level Marijuana Laws: Making Us Safer or Blocking Access?, March 13, 2017, Cannabis Law Group

compliance with state and local regulations. We are experienced in civil and criminal cannabis-related cases and fight hard for the rights of our clients. We support the continued expansion of marijuana legalization and hope to see a day soon when businesses are free to operate on a national scale.

Too often, we see hard-working cannabis business owners who may be niave or unclear about the state and local regulations and their obligations. In a recent case in U.S. District Court for the Central District of California, a former Congressional aid was recently convicted of taking advantage of a dispensary owner.

Recently Michael Kimbrew, a former Congressional aide, was found guilty of attempted extortion and bribery. He was convicted of taking a $5,000 bribe, which he allegedly elicited from a pot shop that at the time was operating illegally, according to the Associated Press. Prosecutors allege he approached the Compton dispensary in 2015, when it was still illegal to operate such a business in the city. He then allegedly told the owners they would be shut down unless they could work out a deal with him. That deal reportedly included a $5,000 payment to Kimbrew, even though he did not have the connections to get them proper medical marijuana permits that he allegedly claimed he did.

Prosecutors said he went as far as bringing the owners to Compton City Hall, where the representative he worked for had an office. That representative was not mentioned in the indictment. She said Kimbrew worked for her for a year and was fired in 2016.

The deal never went far. An undercover FBI agent, posing as a partner of the marijuana business, obtained video of Kimbrew talking about the bribe and accepting a $5,000 payment from the agent, making this a pretty open and shut case. He could face up to 18 years in prison.

Our trusted Los Angeles medical marijuana lawyers are glad to see the FBI go after the real criminals: People who take advantage of business owners. As laws continue to expand to make it possible for more cannabis businesses to operate legally, it will never be legal to extort owners or elicit bribes. We hope the laws increasingly offer protections to honest marijuana business owners and that eventually we will see cannabis declassified on the Controlled Substances Act, 21 U.S.C. Section 812.

We recommend business owners who are unsure if they are in compliance with local and state marijuana laws talk to our experienced legal team right away. Don’t leave yourself vulnerable to veiled threats or real legal ramifications. Take control of the future of your business with sound and credible legal guidance. Our lawyers can help you with everything from a business plan to obtaining business licenses to consulting. If you do happen to find yourself in trouble with the law, we’re there to assist with that, too. We have the real connections to help get your business on the right track.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients, defendants, workers and those facing criminal marijuana charges. Call us at 949-375-4734.

Additional Resources:

United States of America v. Kimbrew, July 21, 2017, U.S. District Court for the Central District of California

More Blog Entries:

Santa Fe Springs Mayor Sentenced for Marijuana Dispensary Bribery, Nov. 10, 2012, Cannabis Law Group

ignore marijuana crimes so along as alleged violators were in compliance with state laws. This step gave states the space to figure out how they wanted to handle recreational and/or medical cannabis laws without interference from the federal government.

Sessions, however, has made it clear he intends to revive marijuana prosecutions based on the drug’s current Schedule I controlled substance designation under the Controlled Substances Act, 21 U.S.C. Section 812. By rescinding the 2013 order, Sessions has given federal officials the freedom to pursue charges against anyone for these violations – even if they follow state and local laws to the letter. Our marijuana attorneys in L.A. encourage all cannabis business owners in California to seek prompt legal counsel to best protect themselves and their livelihood.

Some don’t see this as an immediate threat, citing the lack of resources to go after so many operations. They also point to a lack of support among citizens to pursue such charges, meaning juries will be more reticent to convict. Others are less optimistic.This is especially true in states with brand new marijuana laws, such as Maryland, which only recently launched a medical marijuana program. When Sessions spoke out a few weeks later, many doctors in the state panicked, according to a Washington Post report. The Maryland State Medical Society even said some doctors who had already registered to offer marijuana to patients withdrew after Sessions’s announcement, despite the top prosecutor in Maryland stating he had no plan to go after participants in medical marijuana.

This hesitation by the medical community is nothing new though, especially on the east coast, where awareness and education on the benefits of marijuana are not as prevalent as they are here in California. In Massachusetts, for example, just over 200 doctors in the whole state have registered to recommend cannabis to patients. Perceptions in the state could change this year after it becomes legal for residents to have limited personal plants in their home and possess marijuana for personal use. Question 4, which was voted on by residents in November 2016, also allows for licenses for commercial sale. It is scheduled to go into effect July 1 of this year.

Our Riverside medical marijuana attorneys hope to continue to see the country push back on this unwarranted and outdated federal classification of marijuana. There is far too much evidence of its benefits medically to continue to treat it the same as drugs like heroin.

In the meantime, education is a top priority. Some doctors are hesitant to recommend marijuana not only because of federal oversight, but also based on lack of knowledge. Unlike other drugs, its treatment potential was not discussed during medical school, nor are there set dosages and guidelines for how to use it to best treat various ailments. In a field that prefers precision, doctors are often not so inclined to recommend trial and error to their patients if other options are available. Other doctors rely on dispensaries to know the best strain to offer the patient, but this puts a lot of pressure on dispensary owners, who are knowledgeable in the different strains, but not the different medical issues.

But for those doctors who are moving forward, many say the rewards of seeing the suffering of their patients alleviated has outweighed the risks. We hope more research and education will help move the medical field and the country forward.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients, defendants, workers and those facing criminal marijuana charges. Call us at 949-375-4734.

Additional Resources:

Doctors Backing Out of Recommending Medical Marijuana in Response to Sessions Memo, Feb. 2, 2018, By Steve Hendrix, Washington Post

More Blog Entries:

An Aging Population Trades in Pills for Marijuana, Sept. 8, 2017, Riverside Medical Marijuana Attorney Blog

recreational marijuana businesses beginning Jan. 1, 2018.

Authority rests with local governments to decide whether to allow recreational marijuana sales to go into effect in their area, giving them power to either issue bans or develop policies for businesses to operate.

The Long Beach City Council is the latest to join the movement. The council recently voted to move ahead with developing policies for recreational marijuana businesses to operate in Long Beach. According to an article from the Long Beach Press Telegram, Long Beach has more than 100 pending applications for a wide range of marijuana businesses. Two of an allotted 32 dispensaries have opened so far in the area, in Rose Park and Belmont Shore.

In November 2016, the same time Prop. 64 passed, Long Beach repealed its medical marijuana ban in the city, as citizens voted in favor of Measure MM. Since then, the city has been ironing out the details of medical marijuana regulations and policies. Some of the council members objected to moving forward with recreational marijuana policies until the all of the issues with medical marijuana implementation had been settled.

The measure, however, passed. Supporters cited a desire for the city to have more control over implementation than they did with medical marijuana. After securing a medical cannabis dispensaries ban in the city, citizens and the industry took control with a ballot measure, and the city no longer had as much say.

The process for Long Beach creating regulations for commercial recreational businesses will not make the Jan. 1 rollout across the state. In the meantime, a 180-day temporary ban will be put in place until city council can vote on final regulations. Of course, nothing is final, and it is still possible the city will ultimately not continue forward with plans to allow businesses to establish there.

Among considerations during this time will be how many dispensaries will be permitted, where they will allow businesses to be located, conditions for approval, and labor provisions. Council is considering keeping the cap on dispensaries at 32 total and encouraging medical and adult-use dispensaries to operate jointly.

Other cities nearby have held firmly to their respective bans on commercial marijuana businesses. Some of those cities include Downey, Lakewood, and Cerritos. Carson has OK’d marijuana testing, growing, and manufacturing, as well as door-to-door delivery and personal use cultivation with restrictions, and limited indoor commercial operations, but still rejected commercial dispensaries in city limits.

Bellflower has approved up to a dozen licenses for cultivators, processors, and dispensaries, and has started taking applications.

Long Beach council members will be looking closely at regulations around the state as they make decisions on how to best craft policy for the city. And our Los Angeles recreational marijuana business lawyers are keeping an eye on all the latest developments in cities across the region. If you’re considering opening a cannabis business, whether it be commercial or medical, our attorneys can help you properly file business license applications and navigate local laws from city to city, while also keeping in mind state and federal regulations.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Long Beach wants to allow recreational cannabis businesses in 2018, Nov. 15, 2017, by Courtney Tompkins, Long Beach Press Telegram

Other Blog Entries:

Long Beach Wins Battle to Ban Medical Marijuana Dispensaries, July, 29, 2016, Cannabis Law Group

According to a recent news article from the Cannabist, a company that runs a major online crowdsource, has just pulled the plug on a campaign hosted on their platform to raise money for the farmers who lost a great deal to the massive wildfires in Northern California. There were already many donations on the site that totaled over $13,000 before the campaign was terminated.This campaign was organized by the California Growers Association, and it was done to help those hard working farmers and their families who lost everything. While these medical marijuana farmers were not the only farmers who lost their entire crop for the year, if they had been growing grapes, they would have been protected by a commercial or agricultural insurance policy, and other than the deductible, they would have gotten compensated for much of their respective losses. However, as discussed above, federal regulations prohibit insurance companies from writing policies to cover those in the medical marijuana business.

The company said that the growers association had violated the terms of their service agreement and that was why the site was being shut down at this time. PayPal and WePay, which handled the payment on the crowdfunding site also said they cannot allow their services to be used as the money comes from a criminal enterprise according to federal law.

As our Los Angeles medical cannabis industry lawyers can explain, these companies that shut down this campaign, or refuse to write insurance policies, or banks that will not let those in the cannabis industry maintain deposit accounts, are for the most part, doing some out of a fear of action and enforcement by the federal government. While some CEOs may be acting out of a belief that marijuana should not be legalized, most are happy to make money off the industry if they are allowed to do so, as they are in the interest of making money and showing increased quarterly grown to their shareholders.

The other part of the problem is that many businesses are not sure as to the current state of the law, and are in fear of having assets frozen and possibly even being prosecuted for one or more criminal offenses. The reality is that some of these fears are justified so the best thing anyone who is in the Los Angeles medical marijuana industry, or who desires to get into the recreational marijuana industry can do is to speak with an experienced marijuana industry lawyer as soon as possible. Your attorney can tell you the current state of the laws, and make recommendations based upon how things are moving in the near future. This is not to say that everything you wish to do with your business will be possible, but things may not be as bleak as they seem at first.

The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Crowdfunding site shuts down campaign for California cannabis farm fire victims, October 18, 2017, By Brooke Edward Staggs, The Cananbist

More Blog Entries:

New Bill: Police Must Return Seized Marijuana or Pay Compensation, May 15, 2014, by Cannabis Law Group

The San Diego Crackdown KPBS reports that San Diego law enforcement and prosecutors began targeting illegally-operated dispensaries in March 2017. More than sixty dispensaries have been shut down in this time. The San Diego Police Department also reports that dozens of property owners and operators have been fined, charged criminally, and prosecuted for operating medical marijuana businesses without a license. All employees of the business – not just owners – are subject to prosecution. In August 2017, the Police Department warned that even delivery drivers could face criminal charges. Two of the most recent raids indicate a shift in San Diego law enforcement policy. Prior to these operations, the San Diego PD had mostly avoided delivery services, focusing instead on dispensaries with physical retail locations. On August 2, 2017 two delivery services were raided. This may signal a shift toward prosecutions of delivery services which operate illegally. Northern California Crackdowns San Diego is not the only California locality looking to end illegal marijuana operations. According to U.S. News and World Report, Calaveras County Sheriff Rick DiBasilio has reported the largest marijuana raid in county history. The crackdown is reported to have affected more than a dozen farms over four days. More than 27,000 marijuana plants were seized and thirty-five people were arrested. $7000 in cash and eleven firearms were seized after the execution of twenty-three search warrants. Twenty-five tons of marijuana were ultimately destroyed after the raids. The National Guard, the district attorney’s office, the California Highway Patrol, and environmental offices for the state and county were all involved in the planning of the operation. It took six months of preparation to execute the crackdown. Six thousand plants were seized from one of the targeted farms, which is associated with the Sugarleaf Rastafarian Church. The church claims that it has a religious exemption for the cultivation of marijuana, which is used as sacrament for churchgoers. California law recognizes no such religious exemption. Not surprisingly, Calaveras County is one of the many California municipalities considering a complete ban on cannabis activities within its jurisdiction. Ensure Your Cannabis Business is in Compliance There are countless state, county, and local regulations which medical marijuana dispensaries must comply with in order to conduct business operations lawfully. It can be difficult to comply with all applicable regulations. This daunting task will be even further complicated when the state begins issuing business licenses for the sale of recreational marijuana in January 2018. Regulations, restrictions, state laws, and local ordinances will all affect the regulatory landscape dramatically. Consult with an experienced Los Angeles cannabis criminal defense lawyer to ensure that your business is in compliance with all current and upcoming laws. Improper recreational and medical use business licenses, financial operations, tax reporting, and other business operations can subject cannabis business owners to criminal liability. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: San Diego Police Raid 2 More Marijuana Dispensaries, August 17, 2017, by City News Service, KPBS More Blog Entries: Federal Judge Blocks California Marijuana Growers’ Prosecution. August 31, 2017 by Cannabis Law Group

The Proposed Bill According to Entrepreneur, Assembly Bill 64 proposes expansions to the Model State Trademark Law. These expansions would allow the state to issue trademarks to businesses which deal in medical cannabis and non-medical cannabis goods and services. Both Colorado and Washington have passed similar bills to protect cannabis business owners in their states. Interestingly, the bill also contains a provision to expand current prohibits on the advertisement of marijuana. Currently, such advertisements are banned on interstate highways, or state highways which cross the border of any state. Assembly Bill 64 would expand the prohibition to all state and interstate highways within California. Other Bills That Affect Marijuana Branding Cannabis business owners are also carefully tracking the progress of Senate Bill 162, which would prohibit the use of branded merchandise to advertise marijuana or marijuana-related products. The Advertising Specialty Institute reports that the bill was passed 40-0 by the State Senate. On September 1, 2017, the Appropriations Committee of the California Assembly placed a hold on the bill, which prevents it from proceeding to the full Assembly for a vote. The bill cannot become law until both houses of the state legislature have passed it. If passed, it will supplement existing restrictions on the advertisement of marijuana in California. These include prohibitions on signage, and advertising on broadcast, cable, print, radio, and digital communications in which less than 71.6 percent of the target audience can reasonably be expected to be 21 years of age or older. Of course, it is not just statewide legislation which affects cannabis business operations, and local legislation can have a far more dramatic effect. 23 ABC News reports that the Bakersfield City Council is moving forward with a ban on all commercial cannabis activity within the town limits. If passed, Bakersfield would be in the company of many other cities and counties across the state which have completely banned commercial cannabis operations – medical or otherwise – within their jurisdictions. An Orange County cannabis copyright and trademark lawyer can protect your legal rights with respect to all intellectual property issues, and ensure that your business is in compliance with all branding regulations. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: California Bill Provides Trademark Protection for Marijuana Industry, February 16, 2017, by Dispensaries.com for Entrepreneur

More Blog Entries: Marijuana Company Embroiled in Branding Dispute, September 4, 2017, Cannabis Law Group

The Transportation Niche Hardcar Security has found a way to help cannabis owners protect their assets. The Desert Sun reports that the armored car service has about twenty-five regular clients, mostly in Northern California, who hire their drivers to transport cash for payment of suppliers, taxes, and other expenses. The drivers are also hired to transport inventory for cannabis businesses. Hardcar anticipates its business will triple or quadruple in size in 2018 once business licenses are issued for legal sales of recreational marijuana. The company’s founders met while working in security technologies in China. The two closely followed the marijuana market, and decided to set up shop in California after observing the expanded cannabis market here. They prioritize the hiring of military veterans, due to veterans’ unique understanding of security needs, and their ability to respond to hostile threats and environments. Interestingly, the federal prohibition on marijuana even affected Hardcar’s business startup. Its founders were denied services from the federal Small Business Administration. They had to rely on private investors and loans instead of federal services (including traditional bank loans). The company reports that many other businesses refuse to work with Hardcar because of their affiliation with the marijuana industry. Yet, with the huge growth potential of the industry, the company has been able to thrive in spite of these challenges. Legal Protection from Seizure of Assets Of course, all the security technology in the world will not protect cannabis business owners from raids and seizures by federal authorities. Many landowners who rent space to marijuana collectives are receiving threats of property seizure from the Drug Enforcement Administration. Farms and dispensaries continue to be raided by federal authorities. Without the proper legal counsel, their assets are often seized and forfeited forever. Proper planning in the formation and operation of a marijuana business can both reduce the risk of facing a law enforcement raid, and also offer greater protection and legal defense in the event that assets are seized. Legal tools can be as important as security technologies in protecting the assets of a marijuana business. An experienced Los Angeles cannabis asset protection lawyer can business owners protect their cash and inventory. even with the logistical challenges presented by conflicts in state and federal law. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Meet the two guys using armored cars to move money and marijuana across California – legally, August 28, 2017, by Rosalie Murphy, the Desert Sun More Blog Entries: Cash Demanded for California Marijuana Dispensary Taxes, February 24, 2016, Cannabis Law Group