Cannabis remains illegal at the federal level, continuing to be one of the greatest sticking points for California marijuana companies. It is one our Los Angeles cannabis business attorneys expect to see changed sometime in the next few years.

As it stands, 36 states plus the District of Columbia have legalized marijuana for medical and recreational uses. Industry researchers report that last year, sales of legal cannabis climbed 45 percent. It’s estimated they’ll reach $41 billion in the next five years. Yet those who might most benefit from its use in the twilight of their lives have been denied due to the federal law that criminalizes marijuana and casts it in the same category of methamphetamine and heroin – highly addictive narcotics with no recognized medical purpose.

Clearly, that definition is outdated. Medical cannabis has been legal in California since 1996. Recreational use was approved by voters in 2016. Now, Senate Bill 311 is one step closer to turning the tide entirely.

While allowing cannabis to be administered by health care workers, it specifically prohibits vaping and smoking inside health care facilities. Supporters expect it will be administered mostly in pill form.

As for the hospitals and other health care centers, some have indicated support, saying the use of medical cannabis fits neatly into the pain management regimens they’ve been prescribing for terminally ill patients for years. Other facilities released canned statements of neutrality. The California Hospital Association, however, outright opposed the bill in letters to the governor before he signed it. Their reticence is mostly due to the official discrepancy between state and federal law where marijuana is concerned. The worry is that failure to comply with the strict letter of the law could jeopardize hospitals’ reimbursement from the Medicare and Medicaid programs, as well as federal contracts and grants.

Supportive lawmakers, asked whether they are worried the federal government would crack down on illegal cannabis administration in hospitals, said it is a possibility, but a very remote one. Our Los Angeles marijuana lawyers understand that there have been some facilities in the past that “made space for” terminally ill patients who were using cannabis, without directly endorsing or administering it. This law will grant those facilities more legal leeway. We expect cannabis use in health care facilities will be centered heavily in hospice centers. Although it’s expected there will be little, if any, backlash from federal authorities, we do recommend health care facilities considering onboarding cannabis treatments to patients to work with a civil attorney with years of practice in California medical marijuana law. 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: Senate Bill No. 311, Approved Sept. 28, 2021, California Legislature

The case, California v. Raybon, involves five inmates in a California state prison who were convicted on felony charges after being found with marijuana in their cells. The men appealed to the 3rd District Court of Appeal in Sacramento, which overturned their convictions after determining that while they could not legally eat or smoke pot in prison, possession of marijuana is no longer a criminal offense. As our Los Angeles marijuana defense lawyers can explain, this ruling conflicted with those of other appellate courts.

The state supreme court weighed in after a challenge from the state attorney general. In a split 5-2 ruling, the high court held that Prop 64, which legalized recreational marijuana in California, was not applicable to prison inmates. The majority opinion held that there as nothing in the ballot materials for the law that indicated voters had considered or were even aware of how this might impact possession of the drug in prison. The court stated, “it seems implausible that the voters intended to essentially decriminalize marijuana in prison.”

Had the public intended to alter the laws and policies regarding possession of cannabis in prison settings, they would have stated so explicitly, the court ruled. Further, it would make no sense that voters would wish to continue to criminalize the consumption of cannabis in prison, yet allow inmates to legally posses it.

The court stated it was sympathetic to the assertion that state law allows for a wide disparity in the way it treats possession of cannabis outside a correctional facility versus how it is managed inside, but noted the same is also true for other substances – alcohol included. These inmates were given an eight-year prison sentence for possessing less than one gram of cannabis. The court agreed that this could be viewed as “unduly harsh.” However, the court stipulated that it was not in the business of judging the wisdom of public policies. Instead, it’s the court’s responsibility to interpret the statutory language.

The two dissenting justices disagreed with the ruling in part. They did not take issue with the matter of the drug’s legality; in fact, they conceded that marijuana was not legal for prisoners under Prop. 64. The dissent was based on concern about how prosecutors might opt to file charges when statutes overlapped, favoring those that allowed for harsher penalties.

Still, the majority ruling was no real surprise. Many other state appellate courts have held the same, and arguing the legality of keeping marijuana in prison was always going to be something of a long shot.

Those who are charged for possession of marijuana in prison will require the services of an experienced marijuana criminal defense lawyer, as they will continue to face the harshest penalties on the books. Our dedicated team of L.A. marijuana lawyers can help.

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 v. Raybon, June 11, 2019, California Court of Appeals for the 3rd Appellate District

It’s called the Cannabis Administration and Opportunity Act. It’s similar to a bill passed by the House in December. The House’s approval of such a measure isn’t surprising, given its political makeup. The Senate, however, is much more conservative and a different story. How good of a chance does a measure like this actually have of becoming reality?

A poll conducted last year by the Pew Research Center reveals 6 in 10 Americans favor legalizing pot for both medicinal and recreational use. However, the majority party in the Senate has a lot on its plate, with presidential priorities being immigration, policing and infrastructure. Cannabis isn’t on that list, but that doesn’t necessarily mean it won’t have forward momentum.

Marijuana is Legal in Many States – Why Does Federal Legalization Matter?

Federal legalization matters a great deal, despite the fact that 18 states allow recreational use for adults and 37 allow medicinal marijuana. (California was the first to legalize medical marijuana in 1996 and recreational use in 2016).

The problem is that with cannabis designated as a Schedule I narcotic under the U.S. Controlled Substances Act, possession and sale for any reason remains a federal crime – and federal law supersedes state law. Although the federal government has largely stopped prosecuting violators of these laws so long as they are in compliance with state laws, the federal restrictions still throw a huge wrench in the logistics of things like banking, transport of goods and taxes – even in places like California, where it’s legal.

What Would New Federal Marijuana Bill Do?

Congress members of both the House and Senate (including now-Vice President Kamala Harris) have previously introduced legislation that would remove cannabis from its Schedule I classification and expunge the criminal records of those previously convicted for marijuana-related crimes. So far, those have failed.

The most recent effort to do this was last year. This new bill is partially based on that. It remove federal penalties for cannabis, expunge criminal records of non-violent offenders who broke U.S. marijuana laws, establish funding for restorative justice programs, set federal tax rates for cannabis products and allow individual states to decide whether they want to legalize cannabis or not.

So if marijuana is still illegal in one state, it will remain so unless the state government opts to change that. However, in places where the drug is legal, removal of federal prohibition will help resolve transport, banking and tax issues. If the drug isn’t outlawed at the federal level, states would not be allowed to halt interstate transport of the drug. So if a state like, say, Nebraska chooses not to legalize, possession and sales could remain unlawful there, but they could not prohibit the drug from being transported within its borders on the interstate between two states where it is legal.

What the regulation would not do is stop all regulation of the drug. The FDA and ATTTB would be responsible for regulation of the production, distribution and sale of cannabis at the federal level.

Most advocates support the bill, though some do recommend adding certain restrictions on potency, flavoring of products that could appeal to kids and certain types of ads. A few are raising questions about the potential for more DUIs and how that should be handled. If the drug was legalized, research on both the benefits and harms of the drug would be much more easily facilitated. As it now stands, most scientists can’t study the drug because they can’t gain access to it – or funding.

Does it Have a Shot?

As it stands, the bill remains in draft form, which means it could change quite a bit before it’s actually voted on. That said, most political analysts believe that as it’s currently written, it’s unlikely to pass – though it will obviously kickstart conversations.

Then again, last year’s bill surprised many by passing in the House in the middle of a pandemic – even if it ultimately died in the Senate. Schumer himself said at this point, he doesn’t have the votes that would be needed to overcome a filibuster.

President Joe Biden has expressed support for decriminalization of cannabis, but not full-scale legalization. If the bill did pass, it’s not clear whether Biden would sign off on it.

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:

Senate moves to legalize pot at federal level. What are the chances? Aug. 2, 2021, Los Angeles Times/Portland Press Herald

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

In December, California investigators also raided unregulated storefronts throughout Los Angeles and confiscated illegal vape products. According to state testing results, many of those products showed as far less potent than labeling suggested.

In some cases, the oil cartridges THC contents showed to be only a portion of that claimed and were diluted more than one-third by undisclosed but likely dangerous additives.

Los Angeles officials tested a sample comprising more than 10,000 randomly selected illegal vape pens confiscated in those raids. Results showed three in four vapes contained the thickening agent vitamin E acetate, which federal regulators blame for the majority of lung illnesses linked to the national vaping health crisis.

“The prevalence of dirty and dangerous vape pens at unlicensed cannabis stores demonstrate how important it is for consumers to purchase cannabis goods from licensed retailers, which are required to sell products that meet state testing and labeling standards,” said Lori Ajax, head of California’s Bureau of Cannabis Control (CBCC).

Regulated Vape Products Are Safe According to the CBBC, to date, not a single vape disease case in California has been linked to a state-regulated source. Our Orange County marijuana lawyers believe test results show the source of the vaping health crisis stems from illegal manufacturers contaminating unregulated products on the illicit market.

Some confusion may exist among consumers, however, as the Centers for Disease Control and Prevention (CDC) fell short of evaluating the safety of regulated vape products. Instead, 16 percent of vape lung illness cases were linked by the agency to “commercial” sources which it deemed to include all “dispensaries, vape and smoke shops, stores and pop-up shops” without making the clear distinction between state legal and regulated outfits from unlicensed, illicit operations.

The licensed cannabis industry responded promptly and responsibly to the vape health crisis by quickly calling for tighter vape product regulation.

Federal Laws Restrict Research Efforts Because federal laws dating back to the 1970’s restrict researchers from studying the medicinal benefits of cannabis — still classified as a Schedule 1 drug, which by definition possesses no currently accepted medical use, plus poses a high risk for abuse — should a researcher in California wish to conduct investigations on cannabis use, those researchers would be at risk of federal charges, even though the state of California permits the legal use of cannabis.

Scientists widely believe this stance prevents the research community from conducting the high level of research required to secure an FDA approval for cannabis, even though early research indicates marijuana might even serve as a favorable alternative to opioids and other medicines.

Legal Implications If the United States were to legally regulate marijuana vaping products, as do countries like the United Kingdom, then the vaping health crisis may well disappear.

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’s Bureau for Cannabis Control U.S. Controlled Substances Act (Title 21 U.S. Code)

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.

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.

While those 600 temporary cannabis business licenses all expired at the end of July, and many of those cannabis business owners await approvals on provisional or annual license applications (another story in and of itself), Lori Ajax, State Bureau of Cannabis Control (BCC) chief, recently said it’s a priority of the bureau to get all temporary licenses transitioned onto either provisional or annual licenses, as quickly as possible, so those businesses won’t have to halt their operations.

It’s true that when the provisional or annual licenses are approved, those marijuana business owners are immediately required to begin tracking-and-tracing. And as the CCTT is quite complicated, many companies already required to track-and-trace are hiring full-time employees to traverse the system.

Tagging Products Has Proven a Challenge One common complaint from marijuana retailers holding provisional or annual licenses, is that they must apply unique identification tags to all products. And because until very recently, many holders of temporary licenses weren’t held to those same standards, products would reach stores without said tags, leaving retailers having to sticker and tag products, at their own extra labor costs.

But the problem doesn’t stop there. Now with 600 odd businesses in line waiting for the state to approve their new license applications, and often a need to continue earning a living in the meantime, many are generating lots of paperwork for companies adhering to CCTT requirements while trading with businesses not yet in the system.

On the use of CCTT throughout the marketplace, Josh Drayton, communications director for the California Cannabis Industry Association (CCIA) says it’s a patchwork at present. “We’re not seeing it work it’s way all the way through the supply chain, which ultimately means it’s kind of a broken system at the moment,” he said.

Software Compatibility Also a Hurdle Another shared grievance is that CCTT is not properly set up to work smoothly with a common point-of-sale software system used by retailers. CCTT also does not account for businesses like growers or manufacturers awaiting provisional or annual licenses, who may have missing data. As a result, some retailers using that software are forced to simply ‘create’ information in order to move through to the next step within the CCTT platform.

So Was Track-and-Trace Just a Sweetener? One of the promises California’s 2016 Proposition 64 made, was that the state would always be able to locate every piece of marijuana sold, all the way ‘from seed to sale.’ Creating a tracking system then, was always going to be necessary to meet this promise.

Helping to prevent cannabis flowing out onto the black market was another reason. But so far, activity on the illicit market has shown little signs of slowing. One analyst estimates the underground cannabis market in California totals $3.7 billion per year, which outdoes the legal market fourfold.

Some believe the track-and-trace system was only offered up as a way of getting legalized marijuana over the line.

The Burden of Compliance Others believe that requiring compliance with an inventory control system places a needless burden on legal cannabis businesses committed to operating within the law. Amid the many opinions on the matter, one thing is certain, a slow transition to the new system has brought with it a whole lot of new red tape. And manufacturers and vendors may just have to prepare for further hiccups and delays as the industry presses ahead.

Legal Implications Thus Far Thankfully, marijuana businesses still getting up to speed with CCTT have been afforded some leeway. The BCC seems to understand this is a process, and hasn’t made an example of anyone as yet. But there are no assurances from the authorities that this is in fact the case. Most affected by this issue are businesses either moving to, or waiting on their, provisional and annual licenses following the expiration of their initial temporary licenses, as well as any new cannabis business operators coming into the fold. As a result, all industry stakeholders will watch carefully to see just how effective the CCTT system can be as it becomes more widely embraced in the coming months.

Need Legal Help Tracking and Tracing For Your Marijuana Business? Our California marijuana lawyers can help answer any questions you may have.

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: California’s Cannabis Track and Trace (CCTT) System Proposition 64

This same group was reportedly also involved in helping San Francisco expunge more than 9,000 marijuana convictions earlier this year – even though some of those date back to 1975. The Los Angeles D.A. has said she expects the same to be the case here, pointing out that Department of Justice records in cannabis cases go back more than seven decades.

Los Angeles marijuana expungement attorneys know the chances of someone with a 1940s cannabis conviction is both alive and has any real interest in having their name cleared, is unlikely. The D.A.’s office has said they aren’t necessarily starting with the oldest cases first, and will instead be prioritizing those individuals who are looking for:

• Housing
• Employment
• A fresh start

It’s also worth noting that not all prior convictions are going to be expunged. Those who most likely would not receive an expungement would include:

• Registered sex offenders (regardless of whether the cannabis offense was related);
• Those convicted of violent offenses;
• Individuals convicted of large-scale drug trafficking or habitual drug offenses

Although she did not break down the details of the priority list, she did indicate her office would most likely be starting with cannabis cases involving low-level, first-time non-violent offenders.

This doesn’t mean anyone whose prior offenses see to fit the bill of the former category should assume they have no shot at prosecutorial review, and neither does it mean those in the latter category should automatically presume they’re home-free. People who have a pressing and vested interest in having their Los Angeles cannabis conviction expunged, dismissed or reduced should promptly contact an L.A. marijuana criminal law firm skilled in defense and expungement. It’s possible with the benefit of a qualified marijuana attorney, it may be possible to request for a case to be expedited.

The D.A.’s office said that while it lacked the resources to pursue wiping clean all these convictions with its own resources, the algorithm supplied by the third-party non-profit allowed it to quickly identify which cases would be eligible to have cases would have been eligible for the benefit. Although an expedited process is always welcome, it’s not impossible that a case may have been deemed “ineligible” by mistake. That’s why it’s a good idea to have your old California marijuana conviction reviewed for expungement eligibility.

The way prosecutor’s were going about it initially would have-all-but-required a lawyer. Individuals interested in having old cannabis cases expunged – and doing it right – needed an attorney to help review the forms, prepare them, file them, file them in the correct court and then pay to obtain the record.

The system of automatic expungement in Los Angeles means basically that the state handles the entire process for you – and you need never go to the trouble. Again, this is great – but only if the system works as intended and there are no glitches.

Even if your criminal record has been expunged of cannabis convictions, you may not even know it. Although the agency is working on the best way of getting word to people that their records are clean, they’re also trying to be cautious of privacy and avoid inadvertently revealing the expunged information to a third party.

The non-profit agency points out there are 1/3 people in the U.S. with a criminal conviction and in California alone (one of the more relaxed states on this front) those people face 4,800 legal obstacles – in housing, employment, education, parenting time and more. Consulting with an experienced marijuana expungement attorney in L.A. might spare you the trouble of being denied last-minute on a rental, applying for next year’s school financial aid or landing the next big job.

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

Additional Resources:

Two More California Counties Will Use Tech To Expunge 54,000 Marijuana Convictions, April 1, 2019, By Kyle Jaeger, Marijuana Moment

More Blog Entries:

California Declares “War” on Illegal Marijuana Farmers, Retailers, April 3, 2019, Los Angeles Expungement Layer Blog

• Shops
• Lodging
• Tours (including bus tours)
• Marketing

Some tours offer scenic drives, glass-blowing demonstrations, food, a chance to smoke with Tommy Chong and more.

Los Angeles marijuana tourism attorneys know that some firms had a bit of a struggle making their way into the fray, given that legal marijuana is approximately 35 percent higher cost than what is available on the black market. Medical card recipients pay a bit less, given that they aren’t subject to the state excise tax. Aside from them, people who come to California specifically for this purpose don’t seem to mind too much paying the extra cost, given that they’ve come for the experience – and to revel in the ability to enjoy their buds without worrying about a bust.

Companies latching themselves to these opportunities have the potential to make decent profits – but only if they can establish themselves in a way that minimizes the risk of their own liability. That includes, firstly, the potential liability that any tour company catering the imbibing crowd might need to consider.

The possibility that someone with a pre-existing condition might suffer a health emergency on the tour as a result of consuming the drug, thereby leaving them susceptible to injury or permanent disability.

• Potential for slip-and-fall injuries, occurring either at the shop or while getting on/off the bus, etc.
• The risk of a motor vehicle accident while transporting customers from one place to another.
• The potential for food poisoning, whether related to the cannabis content of the edible or not.
• Someone under-21 manages to get on the tour and/or is somehow harmed.

Much of this would generally be covered in a carefully-written liability waiver.

But then there are concerns that may uniquely be within the realm of cannabis, due to its status as a Schedule I narcotic. For example, if you are a hotel that hosts individuals who are visiting for marijuana tours just as you would any other, that might not be anything for which you’d need anything more than a commercial general liability policy. But if you’re advertising your services expressly in concert with the Los Angeles cannabis tourism venture, the underwriter for the policy may be looking to exclude coverage for anything that is “marijuana-related” – for fear of reprisal from the federal government, given marijuana’s status under federal law as a Schedule I narcotic. Although hotels and other lodging lessors stand to make a lot of money by being “420-friendly” (thanks to California’s stringent rules that strictly limit places in which one can vape, smoke, or eat cannabis and the fact that most hotels in California are smoke-free), they will want to speak to a marijuana tourism attorney before adding their brand to the ads.

Another factor marijuana tourism companies will need to decide is setting policy with regard to employees consuming marijuana on-the-job. If that in any way results in harm to customers – particularly one that might have been foreseeable – a liability waiver may not be enough to insulate your firm.

Then there are questions of how you might accept payment. Most banks and credit card companies will not sanction purchases that will facilitate the sale of marijuana – again, thanks to the federal law.

These are the kinds of issues that marijuana tourism companies need to carefully discuss with an attorney experienced in California marijuana business law. Attorneys at our firm have been practicing marijuana law in this state for more than a decade.

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

Additional Resources:

Los Angeles for tourists: Hollywood, beaches … and pot? May 21, 2018, By Marjorie Miller, Associated Press

More Blog Entries:

L.A. Marijuana News: Bong Makers Tackle Alleged Trademark Infringement, Jan. 17, 2019, Los Angles Marijuana Tourism Attorney Blog

What complicates cases like this is that for now, marijuana remains illegal under federal law – specifically 21 U.S. Code Section 863. The company, which does possess a legitimate trademark, officially refers to its product as a bong, proudly advertises its awards from publications like High Times magazine and is open about its commitment to excellence in cannabis consumer goods and advocating for the expansion of marijuana legalization laws. The reason that is problematic is that products in violation of federal law cannot seek trademark protection, and many companies are reticent to go into a courtroom and testify that their primary product violates federal statute. However, the firm has managed some success in securing settlements from alleged counterfeit distributors.

Further, a company spokesman was quoted by The Associated Press as saying the firm is willing to go to court to defend these cases, and is seeking millions of dollars in damages.

Cannabis Copyright and Trademark Infringement Lawsuits Likely to Climb

As the market demand for legal and medicinal marijuana has risen steadily (currently at $8.5 million a year now in the U.S.), so too has the demand for ancillary cannabis products. Many, including pipe manufacturers, are venturing more brazenly into the waters of U.S. trademark law – with some success. It’s enough of an issue that our L.A. marijuana trademark attorneys know companies need to pay attention.

For a brief time in 2010, the U.S. Patent and Trademark Office announced a new category of trademarks for medical marijuana, and numerous firms jumped on the bandwagon for to secure their own. However, the “green rush” on patents was short-lived when, just a few months later, the federal agency declared that adding the category was error and and that no marijuana product would be eligible legally for trademark protection so long as the substance remained unlawful.

As if that wasn’t bad enough, the USPTO started regularly requiring applicants to declare in good faith they were not seeking copyright or trademark protection for any services to marijuana businesses. Fort his reason, it is critically important that you discuss any application for trademark or copyright protection for any dispensary, farm, physician’s office or ancillary products company with an experienced L.A. marijuana trademark attorney.

As the cannabis market continues to grow, we expect these claims will continue to expand. Our offices can help defend against marijuana trademark infringement allegations or help you assert trademark infringement rights.

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

Additional Resources:

Bogus bongs or bogus lawsuits? Pipe maker sues over fakes, Jan. 16, 2019, Tribune News Service

More Blog Entries:

Marijuana Pipe Maker Suing for Alleged Counterfeit Bongs, March 12, 2017, L.A. Marijuana Trademark Attorney Blog

Let’s start with the fact that recently, the California Bureau of Cannabis Control, California Department of Food and Agriculture and the California Department of Health just dropped a heap of proposed regulatory modifications on the industry. (Written comments must be in by Nov. 5 to be considered – which you should definitely do if you have a cannabis intellectual property licensing agreement or manufacturing deal you’d like to keep going because those could be directly affected.)

Specifically, the state’s proposed action would seemingly effectively ban all IP licensee agreements where the licensor (seller) isn’t licensed by the state. That could put a major crimp in existing deals involving:

• Separate IP-holding companies established by licensed operators to hold and license intellectual property back to the owner;
• Cannabis companies out-of-state looking to license their existing brand to manufacturers here, but don’t want to directly be involved in the manufacturing process in this state;
• Third-parties who aren’t licensed by have created some sort of tech to make a certain brand or marijuana product and want to license the rights to that IP to a licensed California marijuana firm.

Why Are Cannabis Industry Intellectual Property Licensing Agreements so Common?

Intellect property licensing agreements involve a contract to license all or some of their patents, trade secrets, proprietary information, registered designs, copyrights, trademarks, etc. to another company.

Many cannabis companies forge intellectual property licensing agreements, and it can be beneficial for both the licensor (seller) and licensee (buyer). Let’s say for example you create a unique marijuana cultivation method. You could choose to keep it exclusive to your operation, but you may also have the option of selling the rights to use that same method to cannabis farmers on the other end of the state. Another example would be if your business plans chance (so much is in flux in the California marijuana industry) and you end up with a major surplus of crops or products. You can extend your IP licensing to a third party to help you sell the overstock.

Cannabis companies hat clear state compliance hurdles may have an existing brand that’s strong (or choose to create a whole new one for a fresh start). Either way, they’ve got to be certain they have a valid claim to it. Problems can arise when other cannabis firms have the same name or if your former business partner or ex-spouse is claiming it is actually THEY who own the intellectual property rights. (That’s why all this should be carefully mapped in the early stages of the business licensing process or as soon as possible after you create a new unique system or alter your branding.)

This crops up a lot for a few reasons:

• The sheer size of the Los Angeles marijuana market (and beyond), with millions of clients, more than 10,000 workers and hundreds of legal stores (plus an estimated 1,700 locations still selling on the black market with no license). You’re bound to come across another gangapreneur whose had a similar stroke of creative genius. (Also, there are only so many ways to make a play on the same rotation of marijuana nicknames plus catchy parings of the “smoke,” green” “high” variety.)
• The previously tight-knit, communal feel many in the cannabis industry had prior to recreational legalization. Folks pretty freely shared their industry jargon, growing techniques and specific strain names. Some of those places ended up in generally the same region, now competitors, while others may have moved on to more far-flung areas.
• Legalization has meant cannabis business intellectual property become more closely guarded and legally protected. You need to make certain you aren’t going to be trampling on anyone’s trademark toes, and be certain no one will mistake you for someone else. If you have long sold a product or had a name that is almost an exact match to another, your cannabis business intellectual property attorney in L.A. can pursue a request for an IP licensing agreement so you won’t have to give it up.

The one other major complication is that pesky problem of the federal Controlled Substances Act that outlaws marijuana as a dangerous, Schedule I narcotic. The agency that oversees patents and trademarks – the U.S. Patent and Trademark Office – is federal. That means it’s not going to issue any trademark registrations for marks that are cannabis related.

But until this proposed measure, there was nothing in state law that would stop third-party cannabis companies from engaging in IP licensing deals. In fact, this practice is pretty widespread throughout the marijuana market and is a significant detour from established rules in other legalized recreational marijuana states.

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

Additional Resources:

BUREAU OF CANNABIS CONTROL, PROPOSED TEXT OF REGULATIONS, CALIFORNIA CODE OF REGULATIONS, TITLE 16,DIVISION 42. BUREAU OF CANNABIS CONTROL, October 2018, California Bureau of Cannabis Control

More Blog Entries:

California Marijuana Business Lawyers See Cultivation Take Root on Central Coast, Oct. 22, 2018, Los Angeles Marijuana Intellectual Property Licensing Agreement Attorney Blog

Approved by the majority in the California legislature and the governor on Sept. 30, the law (which creates creates Section 11361.9 to the California Health and Safety Code) is in direct response to the Control, Regulate and Tax Adult Use of Marijuana Act, and requires the Department of Justice by July 2019 to review state records and identify those prior convictions that may possibly be eligible for recall, dismissal of sentence, dismissal, sealing or redesignation under the new law. The state Justice Department will then be required to notify prosecutors of all cases in their jurisdiction that meet this requirement. Then prosecutors must, by July 2020, review all those cases to ascertain whether they wish to challenge the DOJ’s recommendation. If there is no challenge, the bill requires the department to modify the criminal history information in its database in accordance with the bill within 30 days (by July 31, 2020), and to update the post on its website. The state will be required to reimburse local agencies and school districts for whatever costs are incurred by the state as a result of putting this law into effect.

The state will prioritize cases of those individuals currently serving a sentence or who proactively petition for recall or dismissal of sentence, dismissal and sealing or redesignation (emphasis added). That means that if you take matters into your own hands to ask the state to make your case a priority – and complete the process sooner – you may well have your record cleared before the July 2020 deadline. That could be major for many people with existing criminal records, who may be prevented from important educational, career and housing opportunities, as well as those who may be in the midst of a child custody dispute during which a drug conviction could adversely impact the outcome.

California isn’t the first state to take legislative action to allow retroactive remedy for those with prior cannabis convictions. Oregon did so when it legalized marijuana four years ago. Similar laws exist too in Massachusetts, New Hampshire, Massachusetts and Maryland. Cities like San Francisco and San Diego also have laws that give those with prior convictions on certain marijuana crimes (possession, cultivation and manufacturing) to have avenues to have their records expunged or sealed. However, this is the first statewide measure that effectively automates that process. It’s estimated nearly 220,000 Californians will benefit from this process.

However, if you want a faster path to having your marijuana criminal record expunged, speaking with an Orange County marijuana lawyer with experience in criminal defense and evolving marijuana laws is your best option.

The Orange County CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Marijuana reform: New California law gives people with records a do-over, Oct. 1, 2018, By Lindsay Schnell, USA Today

More Blog Entries:

Danger of ‘De Facto” Cannabis Legalization for California Neighbors, Oct. 7, 2018, Orange County Marijuana Defense Attorney Blog

benefits, many parents and teachers are facing their next challenge: How do I talk to kids about marijuana? California has been tasked with establishing new education programs to effectively prevent children from consuming cannabis, while making them aware of the choices they will have to make as an adult in a post-legalization world. As such, we are seeing the classic “Just Say No” campaigns shift to a new message: “Delay.” According to an article from Brit + Co, the new strategies focus on lifelong health and good decision making.

Marijuana legalization has had major effects on the lives of adults across the country, with 30 states and the District of Columbia allowing for medical marijuana, and about a third of those states permitting recreational use. Many of the results of this legalization have been expected, including relief for debilitating medical conditions, such as chronic pain, epilepsy, and PTSD. Cannabis also has become an alternative to alcohol in social situations, without the same negative long-term health effects as alcohol. Also expected has been the boost for government coffers with an influx of marijuana tax revenue. The way legalization would come to effect the way we educate children was a bit unexpected. It makes a lot of sense, though, considering the way marijuana functions in our lives is entirely different than it was even 10 years ago.As our Riverside marijuana attorneys can explain, the “War on Drugs” shaped the way everyone spoke about cannabis. The propaganda being fed to adults trickled down into hardcore anti-marijuana education campaigns for children, as well. It’s true cannabis should not be consumed by kids, considering early research indicates it can stunt cognitive development in children. The answer, however, is far more complicated than outright prohibition. For example, the first cannabis derived drug approved by the FDA is Epidiolex, which is a liquid CBD formula specifically designed for children with severe seizures.

Furthermore, there have been no recorded deaths caused by marijuana overdose, so it is necessary to teach children about the drug in a similar way to alcohol. Instead of teaching solely about the dangers, the focus is on the proper time and place for consumption by equipping students with the facts. If we continue to try to convince children and teens that cannabis is evil and dangerous, they only need to look at the world around them to know they are being lied to. It is essential that they know why early consumption could be harmful to them specifically and how to make good decisions that will sustain them through adulthood. In other words: safety over scare tactics. As tax money continues to flood states and local governments from the sale of marijuana, funds will be flagged for more comprehensive drug education programs in schools. In the meantime, teachings are a bit inconsistent and unclear during this transitional time period.

Our legal team is supportive of all measures of education that expand understanding of marijuana while still keeping everyone safe. We have tried to demonize this beneficial plant for far too long. It is time for a common sense approach based on facts so that we can all move forward into a healthier future.

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:

Just Saying No to ‘Just Say No’: Drug Education is Evolving as Marijuana Becomes Legal, July 16, 2018, Marijuana.com

More Blog Entries:

Students Who Need Medical Marijuana Deserve Easier Access, Feb. 28. 2018, Cannabis Law Group

embedded in Proposition 64 became law. Although businesses knew the change was coming, it marked a major change in the supply chain for marijuana throughout the state. No longer was the focus solely on growers and dispensaries. These new regulations have shed light in a whole new way on the importance of testing labs.

According to an article from Leafly, the history of testing labs in the state has come a long way, evolving from van-based operations to highly sophisticated units protecting Californians from contaminants, pesticides, and helping measure strength and makeup of different strains and products. Until now, labs haven’t really been able to fully get off the ground. Like any production cycle, added steps are generally avoided wherever possible in order to cut down on costs. As such, not all cannabis products in California went through the lab-testing stage until laws absolutely mandated it, especially those produced by small businesses. Now labs are overwhelmed with work. Though lab workers did what they could to prepare for this day, it’s still difficult to operate a business at full capacity on profits that are not yet coming in, making it necessary to go from skeleton crew to all hands on deck in a matter of weeks.The new laws are pretty straightforward, as our Los Angeles marijuana regulations lawyers can explain. Essentially, there are standards Californians wanted to make sure their cannabis products met. These include the following:

• All cannabis goods must be tested. Retailers cannot send products on their shelves back for testing. Untested cannabis goods must be destroyed or sent back to the licensee, who then has the option to have the products tested and sent back to market.
• Cannabis goods must be packaged before arriving at the retail location. That packaging must meet all new standards. Retailers cannot package or re-package cannabis goods.
• The only packaging changes retailers can make is they are allowed to place a “For medical use only” sticker on products sold to qualifying medical marijuana patients if the package is not already marked as such.
• Packaging must be child resistant upon arrival at the retailer. Retailers can no longer place products in child-resistant containers upon purchase to fulfill state law.
• Edibles must have 10 mg of THC or less per serving, and cannot exceed 100 mg of THC in a single package. Non-edibles must contain 1,000 mg or less of THC per package for recreational use. For medical use, non-edibles can contain up to 2,000 mg of THC per package.

Many products were already on the market, however, because of the state’s medical marijuana laws. Growers, distributors, and dispensaries had already been functioning a certain way for years. Therefore a grace period was put in place after the launch of recreational marijuana legalization at the beginning of the year to allow marijuana businesses to establish a process by which to get their products in compliance, and also to clear out all product that did not meet new guidelines.

These new laws can be overwhelming for businesses who have settled into their ways of operating. That’s why our marijuana business lawyers offer our years of experience and knowledge of the law to help get your business in compliance. We are able to assist businesses all along the cannabis production cycle, helping establish testing labs and packaging companies that are in such high demand right now while ensuring they meet the state’s high standards.

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:

Transition Period Requirements, Bureau of Cannabis Control, California

More Blog Entries:

Budding Industry for Labs Testing Marijuana, Dec. 27, 2013, Cannabis Law Group