As the cannabis delivery market represents a ripe post-pandemic opportunity, those companies considering adding cannabis delivery to their roster of services should have a Los Angeles marijuana business lawyer on retainer.

The mass shutdowns of the COVID-19 pandemic saw huge spikes in all kinds of delivery services, as the public was eager to avoid shopping center crowds. Grubhub, DoorDash, UberEats, Instacart and Drizly soared. Meanwhile on the cannabis front, the CA-based cannabis delivery app Eaze saw its customer base jump by 70 percent. In the last 12 months, Eaze execs estimate a California cannabis order was placed every eight seconds. Our state accounts for the lion’s share of the $17 billion in legal pot sold in the U.S. last year.

The Snoop Dogg-backed Eaze has more than 800,000 customers and has made millions of deliveries since its founding seven years ago. However, it’s far from the only delivery service option. An increasing number of these centers offer delivery to smaller regions.

However, as our Los Angeles marijuana business lawyers know, there can still be significant red tape.

Legal Considerations of California Cannabis Delivery

For example, California drivers delivering cannabis products direct to consumers must be W2 employees of the dispensaries. Further, vehicles are required to be open, like a scooter. Other states require cameras. It’s also prohibited to delivery cannabis with food or with alcohol.

Despite the challenges, companies like Uber are apparently already considering their options, anticipating marijuana legalization at the federal level at some point. Uber recently acquired Drizly, an alcohol delivery service whose sister company, Lantern, manages cannabis delivery. Lantern, now an independent subsidiary, was the first cannabis delivery service in Colorado.

But one definite upside to the founding of new cannabis delivery services is the potential for smaller firms to gain hold due to reduced financial barriers – something that could allow more minorities to enter the market.

Cannabis Delivery Logistics

Many dispensaries are smaller businesses, mom-and-pop-type operations. They may not have the capabilities internally to facilitate logistics.

As noted by logistics magazine FreightWaves.com, the biggest barrier thus far to cannabis delivery logistics is the block on banking. Rules making traditional banking platforms inaccessible, as well as a patchwork of laws from state-to-state, prevent economies of scale and require all sales and delivery remain local. For the time being, cannabis companies remain mostly cash-based enterprises.

Federal legalization could allow companies to branch into the online marketplace and connect with third-party logistics partners that could assist with supply chain management and last-mile delivery of orders.

3PL operators might have the ability off the bat to better integrate existing retailers into the delivery market, with real-time tracking ability and experience in managing supply chains.

It’s imperative that when the time comes, any such contract should be drafted and reviewed by an experienced cannabis lawyer.

As far as when federal legalization might happen, it seems increasingly likely. Some are pinning hopes that President Joe Biden will sign an executive order decriminalizing, descheduling or rescheduling marijuana. If he does not, there is still the potential of the SAFE Banking Act, which is still pending.

The bottom line is that as restrictions to cannabis soften and legal obstacles fall, the prime focus will increasingly be on distribution.

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:

Uber and the delivery war could be headed to cannabis dispensaries, May 30, 2021, By Cameron Costa, CNBC

The Fresno County Superior Court earlier this month upheld the California law allowing licensed marijuana delivery companies to offer services anywhere in the state. Further, the ruling affirmed that while cities and counties can forbid these operations, enforcement is up to local government agencies.

What does this mean for marijuana delivery businesses? As our attorneys see it, they have one of two options:

• Take the risk of battling with local governments trying to enforce their local bans on cannabis companies (including delivery services).
• Cease delivery services to those areas.

Those that want to take their chances and continue operating in markets where cannabis shops are banned may need to be prepared to litigate this – one local government at a time. That spells particular trouble for mom-and-pop operations, which have already been struggling with cumbersome regulation, taxing, lack of banking/credit services and black market competition.

The lawyer for the 25 local government plaintiffs in the case declared the ruling a victory for their side, saying it “clearly” underscores the rights of counties and cities to ban or regulate cannabis deliveries from outside companies.

Even though the ruling was first reported as a “victory” for marijuana delivery services, this was a bit misguided. The fact is, the ruling was a hair-splitting one that essentially stated the state law regulates licenses and not local jurisdictions, so the court did not find a conflict. That doesn’t necessarily mean delivery services can operate anywhere regardless of local law. They can try, but they are risking a lawsuit.

It will be imperative for delivery operators to invest the time, money and legal resources ensuring that delivery is legal in every location where they operate if they want to avoid run-ins with police and local government agencies. If you plan to operate a marijuana delivery company in California, you will need to know the specific local law in each city to the letter.

California has 540 city and county governments. As of last month, just 187 of them allowed licensed marijuana retail businesses. Another 42 allow for delivery services established outside of their jurisdiction to operate within their borders.

That said, it’s well-known that delivery bans are extremely difficult to enforce. Marijuana delivery services are barred by state law from advertising their cannabis company on the exterior of their vehicle. That means delivery service vehicles essentially look like any other. Police would have a difficult time distinguishing them from any other driver. Plus, whatever product is being delivered must be kept out of sight during delivery. If a stop is initiated, there will need to be reasonable suspicion that a crime has been committed. To search a vehicle without consent, law enforcement will need probable cause.

That’s not to say delivery drivers will be in the clear. We could expect to see sting operations set up. Penalties for violation of local ordinances may vary from city to city. In some localities, there may be a ticket, fine or other civil penalty. In others, we may see ordinances define violation as a criminal offense.

One hope we have is that this might be resolved through legislation. If state lawmakers approved a bill unequivocally granting marijuana delivery services the right to operate anywhere – regardless of local prohibitions – that could resolve the issue. It’s tough to say, however, whether that’s politically feasible.

More likely, a well-funded delivery service will need to poise themselves to challenge a local ban in court, the hope being the court would declare the ban unconstitutional or in violation of state regulation.

The bottom line is that licensed delivery operators (there are roughly 300 statewide) will need to decide – after careful consideration and consultation with their marijuana lawyer – whether to discretely continue normal operations or avoid the risk of a run-in with local law enforcement and halt operations in certain cities altogether.

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

Additional Resources:

Court rules in favor of California’s statewide cannabis delivery policy, Nov. 19, 2020, Marijuana Business Daily

In the ruling, the judge expressed doubt that some of the cities that filed the complaint even have legal standing to bring the action. Some have no local ordinances in place that expressly conflict with the California Bureau of Cannabis Control‘s marijuana delivery rule. If they lack legal standing, there is nothing to dispute.

This is a case that will likely have far-reaching implications for legal marijuana sales statewide. The question is whether it’s the state or local governments who maintain control over marijuana cultivation and sale within different jurisdictions.

The 25 local government plaintiffs filed the lawsuit last spring. They are seeking a court order invalidating the BCC’s home delivery rule, which allows marijuana sold commercially to be delivered to any physical address in the state. City and county governments say this is a problem because they say Prop. 64, the law that legalized the growth and sale of marijuana for recreational users, gave them the exclusive right to decide whether to allow cannabis cultivation or sales to take place within their jurisdiction. Further, allowing unrestricted home deliveries would essentially result in a gray market that will be both chaotic and concealed.

But while the 2016 law did give local government agencies the authority to prohibit non-medical marijuana enterprises, state regulators point to another provision of the business and professions code that prohibits local governments from preventing the delivery of cannabis or derivative products on public roads.

The state further argues that because numerous plaintiffs don’t even have a marijuana delivery ordinance, the court is being asked to decide hypothetical scenarios.

Our L.A. marijuana delivery lawyers would point out that by cutting off retail sales at both brick-and-mortar stores and online, these communities have effectively created “pot deserts,” areas where residents are effectively cut off from purchasing marijuana. This in turn helps facilitate black market marijuana sales.

The case will have another hearing in mid-November, but the judge’s tentative order largely echoed the state attorneys’ position: That these matters aren’t appropriate for court resolution because so much of what plaintiffs allege is hypothetical. The court would have to make significant assumptions about events that might – or might not – happen at some later point. Courts don’t decide hypothetical questions. They need to know there is an actual.

Only local governments that already have an ordinance in place contrary to the state’s regulation will be allowed to remain on the case. The others will be dismissed.

Representatives for online marijuana delivery services support the state’s decision, which they say will improve not only access to cannabis but more jobs and higher tax revenues – all things that were part of voters’ intent when they passed Prop. 64.

Marijuana cannot be mailed through the U.S. Postal Service as long as it remains unlawful on the federal level, which has made marijuana delivery services that much more vital. BCC rules require marijuana delivery services to be conducted by employees of businesses that are specially licensed. The Associated Press reports there are roughly 400 marijuana delivery services licensed to operate in California.

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, cities battle over marijuana home-delivery rule, Aug. 6, 2020, By Michael Blood, Associated Press

As our Los Angeles marijuana business attorneys know, most of those in the industry are in favor of a statewide delivery option. However, 25 localities have formally objected to the policy. In response, the attorney general’s brief insisted that the BCC’s marijuana delivery policy aligns with state law.

The attorney general’s brief, a response to the local governments arguing pot delivery violates state law – including Proposition 64 and the Medicinal and Adult Use Cannabis and Regulation Safety Act. The local governments’ lawsuit alleges the BCC’s policy violates the provision of Prop. 64 that allows for local regulation of cannabis commerce. The brief calls the local governments’ argument against marijuana delivery “bizarre” because MAUCRSA specifically states that local jurisdictions “shall not prevent delivery of cannabis or cannabis products” – yet that is exactly what the local government agencies are arguing they should have unlimited power to do. Allowing localities to ban not only all sales but delivery of marijuana would defeat voters’ purpose and objectives of Prop. 64.

This statement was made in addition to numerous legal arguments against the local governments’ anti-marijuana delivery stance. Some of those include:

• The lawsuit isn’t based on an actual conflict between local and state law, but rather primarily on hypothetical what-ifs.
• Local police lack the power to prevent private individuals ordering legal product for delivery.
• Both Prop. 64 and MAUCRSA explicitly allow pot delivery throughout the state.
• The legal marijuana market is vulnerable to collapse if the court sides with the local governments on this.

To that last point, the state noted that if a city isn’t going to allow legal sales and it won’t even allow delivery from lawful companies operating in other jurisdictions, than the only choice people will have will be black market sales. If that’s the only option individuals have, then the whole purpose of a legal, regulated, statewide commercial marijuana market is defeated.

An attorney representing the local government agencies told one media outlet that community leaders only agreed to scale back their opposition of legalized recreational marijuana when they were given assurance they could continue regulation of the industry within their jurisdiction. The BCC, they argue, lacks the statutory authority to adopt regulation that allows delivery vans loaded with “millions of dollars worth” of products at all hours of the day and night and hand it out from door to door. (It’s worth noting the state cap that anyone can drive around with at any given time is $5,000.)

California Marijuana Attorneys Weigh Pot Delivery’s Fate

Our Orange County marijuana delivery attorneys know that whatever the court decides could have far-reaching impact on the state, considering that two-thirds of cities and counties across the state have marijuana business bans.

As for the strength of the cities’ argument, one question will certainly be whether cannabis deliveries fall within the cope of commercial cannabis activities that local government agencies have the power to ban. Another significant point is likely to be the issue of police powers.

But no matter what the superior court decides, it’s likely this matter will be unresolved for some time. An appeal is virtually a guarantee, and some expect this case will make it to the California Supreme Court, a prospect that could take several years.

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:

County of Santa Cruz et al v. Bureau of Cannabis Control, June 8, 2020, Fresno County Superior Court

One such company, Eaze, a San Francisco-based online cannabis shopfront and delivery service, noted an uptick of 81 percent more women purchasing marijuana related products from the company, between 2018 and 2019.

With this shift, women now make up 40 percent of the company’s total customer base. Eaze also shared, that in 2018, women also accounted for 38 percent of its first-time deliveries, and that that figure grew to 43 percent in 2019.

If you need help with your online cannabis shopfront, our Californian marijuana business lawyers can help.

Making Changes to Reach Women While the National Institute of Drug Abuse statistics tell us men have long been heavier users of marijuana than women, the margin appears to be shrinking. Once companies see such large increases in the purchasing power of women, they quickly recognize the value in actively striving to appeal to female customers. But if changes need to be made to win women over, proceeding delicately is key, so as not to alienate the existing customer base.

Sheena Shiravi, senior director of marketing at Eaze, said the company is very mindful of offering educational content relevant to women, in settings they already frequent and enjoy. One example of how Eaze does this, is by hosting informative events at local fitness centers and nail salons.

Shiravi added that making sure products women enjoy are easily available on the platform, is very important too.

Appealing to New Users The most successful online companies definitely offer products that appeal to new users. CBD products and microdose products, for example, offer a certain comfort level as they allow a new user to ease themselves into cannabis.

Cannabis Use by Women of Different Generations Eaze noted the following demographic breakouts when examining female cannabis purchases across its platform:

• Baby Boomer women account for 46 percent of the segment (granting this demographic the narrowest of gender divides);
• Gen Z follows closely behind, with women comprising 40 percent;
• Millennial women account for 37 percent; and
• Gen X women make up 35 percent.

Product Preferences Eventhough Eaze has tweaked its product line and marketing strategy to appeal to women, the company says product preferences across gender, differed only slightly.

According to past purchases at Eaze, women are more likely to purchase:

• Edibles (six percent more likely);
• Pre-rolls (four percent more likely); and
• Topicals and drops (each three percent more likely)

While men are more likely to purchase:

• Flower (five percent more likely); and
• Concentrates (three percent more likely).

White-Glove Service Another San Francisco-based online cannabis shopfront and delivery service, Juva, strives to provide its customers with what it calls “white-glove service,” basically going above-and-beyond to exceed customers’ expectations as it delivers cannabis right along the San Francisco Peninsula, from San Mateo to Mountain View.

Juva works hard to attract, and keep its customers, not only by offering top-notch purchasing, education and customer support throughout its customer experience, but also by rotating generous deals. Loyal customers are rewarded with points that convert to store credit, and are encouraged to come back often to see new discounts and deals as they post.

Examples of current deals, targeting:

• First Timers – offered to all new customers, via 20% off their first purchase.
• Experienced – offered to all customers 55 years and over, who receive 15% off all purchases.
• Veterans – offered to all current and ex-military service men and women, who receive 15% off all purchases.

Implications If a trend is emerging here, we see that online platforms are taking very seriously the responsibility of educating the public on the benefits of cannabis use, and then are taking that next step of making it a very easy, convenient and comfortable experience to get cannabis out to those who need it most.

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: National Institute of Drug Abuse

If this challenge to marijuana’s delivery law succeeds, it would not only threaten the many marijuana delivery services that rely on the state’s protection, it would also be yet another significant threat to the success of California’s struggling legal market by giving black market vendors a major inroad to under-served consumers.

The lawsuit was filed by 24 cities and Santa Cruz County, all of them contending that the state regulatory agency crossed the boundaries of its authority when it made the rule pertaining to marijuana deliveries. They assert that Prop. 64 expressly imbued local governments with the authority to restrict and even prohibit cannabis sales and activity inside their own districts, and the bureau’s policy is a direct affront to that right.

This could effectively upend most cannabis delivery operations as we know them. By some estimates, three-fourths of some delivery service models business rely on services to neighboring regions where the possibility of brick-and-mortar pot shops have been nixed. The reality is that too few legal marijuana dispensaries exist as it is because so many cities and counties – two-thirds of the state – have banned them. Yet the drug is decriminalized at the state level, making enforcement of black market sales tricky.

As it stands, there are only about 260 cannabis delivery operations servicing the entire state.

In an interesting and significant move, California’s attorney general has asked to join as a party to the initial case – in defense of the cannabis bureau’s delivery policy. Some have speculated that had this action not been taken, the bureau might have faced a much steeper uphill battle. But the state’s policy is widely recognized as a game-changer for delivery companies that are trying to carve out a successful – and legal – niche in a cannabis market with potential for immense growth.

When state-legal adult use sales were first permitted in early 2018, delivery services were confined to the municipality that had issued them a local license. Those areas tended to be more cannabis-friendly to start, so there was less of a need for them in the first place. They were a convenience in those locations (perhaps more where medicinal patients were concerned). However, where delivery services were truly needed were in those so-called “pot deserts,” where buyers would otherwise have to travel extensive distances to make a purchase. Delivery services have been shown to undercut black market operators in these areas.

Los Angeles marijuana delivery businesses are banking on success in this case, though we anticipate no matter which way it goes, there will be appeals to follow.

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:

Statewide delivery policy ‘critical’ to cannabis industry success, California insiders say ahead of key court case, Dec. 19, 2019, By John Schroyer, Marijuana Business Daily

As our California cannabis attorneys know, some smaller marijuana dispensaries and delivery services are making the fatal mistake of assuming these huge, name-brand firms won’t take note if they piggyback on the larger firm’s brand recognition. This could not be farther from the truth. Marijuana trademark infringement is taken quite seriously by these big companies. Some have entire legal departments dedicated to identifying and addressing copyright and trademark infringement.

Although trademark infringement can be somewhat of a tricky area of legality for marijuana businesses because, as noted in a recent Los Angeles Cannabis Law Group blog, the U.S. Trademark Act has a specific clause requiring trademark registrants to attest their mark isn’t used to sell illegal goods. As it stands currently, marijuana is still illegal per the U.S. Controlled Substances Act.

Some cannabis companies can get around this provision by instead pursuing a copyright infringement case (depending on the circumstances), but a company like UPS taking action against a marijuana delivery service doesn’t have this problem.

It’s imperative for Southern California marijuana companies to discuss their branding and advertising strategies with an experienced Los Angeles marijuana attorney even before launching them because many of these issues can be subverted before they ever become a painfully expensive problem. We do recognize it can be difficult to overcome the intense challenges of markets across the country that are saturated (making wholly original names and logos increasingly difficult to generate) and disparately regulated (making finding which names are already in use tough).

For something like this, however, using a large brand name and logo like UPS and its iconic shield was doomed almost from the start. It is not a fight this tiny marijuana delivery upstart is likely to win. However, an experienced marijuana trademark infringement attorney may be able to help negotiate much lower penalties and perhaps work out a deal to avoid the need to close shop entirely.

Here, in UPS v. Kennedy, UPS is seeking several relief actions. These include:

An immediate injunction on using any copy or imitation marks similar to the UPS family of trademarks for any advertising, manufacture, sale, etc. of respondent’s products.

An injunction on any representation – direct or indirect – that UPS in any way is involved or endorses respondent’s products or services.

Requirement that respondent turn over any and all merchandise, logos, packaging, promotional materials, products, to UPS so that they cannot be used in the future.

Respondent transfer ownership and control of its website domain names bearing all marks, symbols, name or likenesses to the UPS brand of marks to UPS. (The company counted three domain names total.)

Repay plaintiff for actual damages, enhanced damages (per 15 U.S.C. § 1117 for willful violation of a registered trademark) and attorney fees.

Again, an experienced Los Angeles marijuana trademark attorney may or may not help a client prevail in such a case, but they can almost always help negotiate a better outcome than what would have been possible if the company chooses to go it alone. Do not discount the fact that simply closing shop will not be enough if a court decides a case in favor of a plaintiff and places a lien not only on one’s business but personal accounts.

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

Additional Resources:

UPS v. Kennedy, Feb. 13, 2019, U.S. District Court for the Central District of California

More Blog Entries:

Cannabis Copyright in California: Protecting Your Budding Brand, Feb. 13, 2019, Los Angeles Marijuana Trademark Attorney Blog

Los Angeles marijuana retail attorneys recognize the ways in which this illustrates the many ways in which ancillary companies can break into the bud-tending business. Because marijuana is such a versatile plant – used in everything from medicine for seizures and anxiety to shampoo – we’re likely to see more of these non-traditional dispensaries on the horizon.

These companies need the advice and guidance of a dedicated Los Angeles retail marijuana lawyer to help them navigate the complex legal landscape, ensuring they can offer their products in a way that aligns with state and local regulations – to protect their brand and their assets.

The partnership between Barneys New York with a Los Angeles cannabis company will be called,”The High End,” slated for launch in March. A spokesperson for Barneys noting many customers have made cannabis a part of their lifestyle, and they intend to offer them a range of products that align with that lifestyle – everything from leather ashtrays, gold rolling paper and custom glass blown pipes to grinder necklaces and scent products. Top name designers are going to be launching their own individual creations for sale. Online sales will also be allowed, with white-glove delivery service in California.

Creative New Cannabis Ventures Require Marijuana Business Lawyer Input

Many are entering the California cannabis market with creative new approaches. No matter what your business model or product, it’s imperative to discuss your ideas and business plans with a dedicated Los Angeles marijuana business lawyer. Our attorneys are familiar with every aspect of California cannabis law and the state and local regulations necessary to launch your company. The same goes for businesses ancillary to the cannabis industry. You need to cover your bases – even if your firm isn’t directly involved in cultivation, manufacturing or sale of marijuana products.

Legal marijuana in California is heavily regulated, and protecting your investment necessitates legal compliance with state and local marijuana law.

The Cannabis Law Group in L.A. can assist you with:

• Cannabis labeling, disclosures and compliance with advertising statutes
• Structuring plans for financial transactions, including electronic transfers
• Occupancy and use stipulations
• Local and state zoning requirements
• Business use pertaining specifically to cannabis in California
• State licensing and registration renewals through the California Cannabis Bureau
• Required ongoing education mandates
• Evaluation of online sales
• Taxation and reporting requirements specific to California cannabis businesses

Almost all new businesses need an attorney on consult to ensure they are properly navigating the complex and evolving system of marijuana laws. Legal services are also necessary to protect your firm and ensure you’re poised for success with ongoing compliance. Failure to do so can result in significant fines, penalties and possibly revocation of your license and/or seizures of your assets through civil forfeiture and potentially criminal penalties. Your marijuana business lawyer will actively evaluate and monitor the long list of regulatory obligations handed down by the state and make certain your firm is meeting all criteria.

Because California’s recreational marijuana law is so new and specific to each state – while also conflicting with federal law – it’s necessary to only place your trust in a legal firm with extensive knowledge and experience not only at the federal and state level but specific to your community of operation.

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

More Blog Entries:

Barneys New York To Launch “The High End” Luxury Cannabis Lifestyle Shop in Beverly Hills Flagship and Barneys.com, Feb. 11, 2019, Barneys.com

Additional Resources:

California Cannabis Asset Protection When Commerce is All Cash, Feb. 11, 2019, Los Angeles Marijuana Business Attorney Blog

Meanwhile, amid a spate of arrests by the California State Highway Patrol of marijuana delivery drivers and seizure of their cannabis company goods, the California Office of Administrative Law issued a ruling last week issued a ruling clarifying how marijuana distributors should move about the state. This new rule affirmed the BCC’s regulation indicating these operators can deliver to any jurisdiction, provided the delivery is conducted in compliance with all the BCC’s delivery provisions in place at the time.

It’s been over one year since California opened the largest U.S. retail market for recreational marijuana. Nobody disputes that limited personal possession and private use of the drug is legal almost anywhere (with some restrictions allowable for federal buildings and property, landlords and private property owners). However, the restriction of cannabis sales is within the purview of local communities, per Prop 64 (the measure voters approved in legalizing recreational use marijuana). The question is where deliveries fall in all of this because while it does equate to distribution, actual sales occur elsewhere.

And of of course, as our L.A. marijuana delivery attorneys know, rules for marijuana delivery are likely to be hard-fought as well.

In addition to the California League of Cities, others opposed include state-organized local police chiefs and others in law enforcement. Some say they’d support deliveries for medicinal patients, but not recreational users.

Meanwhile, state-sanctioned marijuana delivery was an important provision pushed hard by cannabis companies and consumers precisely because of the fact so many had banned commercial marijuana activity or hadn’t set up rules necessary to allow legal sales. According to the North Bay Business Journal, advocates on either side are mulling whether to pursue a lawsuit, legislation or both to address the marijuana delivery dispute.

Marijuana Delivery Services Vulnerable to Law Enforcement Stop, Search, Seizure

Meanwhile, other legal woes relating to California cannabis delivery include a class action lawsuit, Goldman et al v. California Highway Patrol, filed in a California Superior Court in San Francisco, asking a state judge to bar the highway patrol from seizing cash and other properties from employees of a marijuana delivery company based in Hubmolt County to the Los Angeles area last year. In the course of those traffic stops, an estimated $257,000 in cash was seized by the state agency. The claim is brought on behalf of cannabis businesses, cannabis medical patients, California taxpayers, alleging unreasonable search and seizure and violation of civil rights. The lawsuit asks for a preliminary and permanent injunction to bar the agency from turning over assets seized from these stops to federal authorities (from whom claimants will have virtually no hope of getting a return).

The hope by plaintiffs is not only recovery of their assets, but also a clear rule that state and local governments should

At least two separate civil rights lawsuits have also been filed in response to these incidents, with drivers alleging their arrests were unlawful.

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

Additional Resources:

Marijuana is legal in California. So why is the CHP arresting delivery drivers? Jan. 21, 2018, By Andrew Sheeler, Sacramento Bee

More Blog Entries:

Cannabis Companies’ Success in Combating RICO Lawsuits, Jan. 8, 2018, California Cannabis Delivery Attorney Blog

Recently, city police arrested a 28-year-old cannabis delivery company employer and his employee on illegal drug charges after investigators allegedly discovered 50 pounds of high-concentration edibles and buds, plus $3,500 in cash. Business logs and other records were also seized as evidence in the criminal case. Police cited and released the employee while booking the owner (also charged with child endangerment for the fact two young children lived in the home out of which the allegedly illicit marijuana delivery firm operated).

Although marijuana grown, processed, dispensed or possessed for personal recreational use by adults isn’t unlawful in California as of the beginning of this year, companies involved still must be licensed. Cannabis delivery business attorneys in Los Angeles and throughout Southern California can advise entrepreneurs of the extensive rules and ordinances you can’t overlook if you’re hoping to launch a cannabis delivery service. Marijuana delivery services run out of personal vehicles, garages, single-family homes and apartment complexes are almost certainly not in compliance. Much of it depends on the exact location and mode of operation.

Police and prosecutors say the raids are legally justified, and furthermore help officials tackle unfair competition. These companies have an economic leg-up because they aren’t shelling out the same dough for city permits, taxes and product quality and safety testing. In under a year, police in San Diego have shuttered nearly one cannabis delivery business a month, racking up almost three dozen arrests and seizing 230 pounds of marijuana and more than $60,000 in cash.

The city police narcotics unit lieutenant recently briefed city council on the issue, saying cannabis couriers require a different approach. The San Diego Tribune quoted the narcotics officer as saying that when raids focused on unlicensed storefronts, they only needed to go after a handful (with mixed prosecutorial results) and the rest took the initiative to close themselves “kind of like a domino effect.” Delivery services, though, are harder to halt because they are mobile. Many use multiple vehicles and may have dozens or more pickup and drop-off locations.

Criminal law enforcement on cannabis delivery services usually happens like this, the official said:

• Police receive a complaint, usually an anonymous tip OR find a listing for an unlicensed service in a newspaper or website like weedmaps.com.
• Narcotics detectives observe alleged delivery or storage location and determine who owns the property.
• Investigators verify the business is illegal and determine who owns and operates it.
• Search and arrest warrants can be filed and issued.

One of the department’s six Vice Division teams is dedicated wholly to enforcement of local and state marijuana laws.

Some opponents have expressed skepticism that it’s possible to shut down delivery services because many had prior unlicensed marijuana shops and don’t need to advertise because they’ve got an existing customer base of thousands. Given the fact that some of the 18 shops that ARE licensed by the city aren’t even operational yet and even if they were, it’s unlikely they would meet the full demand, some marijuana advocates are pressing the city to allow for more licenses.

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 struggling to shut down illegal marijuana delivery services, August 4, 2018, By David Garrick, The San Diego Tribune

More Blog Entries:

Facebook Lifts Marijuana Business Pages Ban, Oct. 11, 2018, California Marijuana Delivery Business Attorney Blog

California cannabis users while stirring up the same old fear-based tropes from the anti-marijuana camp. The California Bureau of Cannabis Control is reviewing a set of proposed regulations that would allow licensed marijuana businesses to deliver cannabis products to any California private address, according to a report from Associated Press. The new regulation would cover even cities and local jurisdictions where sales have been banned.

According to the proposed amendment, CA Code of Regulations, Title 16, Div. 42, Ch. 3, Sec. 5146 (d), “A delivery employee may deliver to any jurisdiction within the State of California.” This is a slightly more clear direction than previous verbiage which stated that deliveries could be made using any public roads, which could be (and was) interpreted to mean that drivers could pass through, but not necessarily stop and make a delivery in a jurisdiction in which a sales ban was in place.It’s clear to our legal team that this proposal is an effective way to bridge the deep divide between Californians who support cannabis and their inadequate access to medical and recreational products. Residents 21 and older in all jurisdictions have been permitted to consume cannabis in a private residence since the implementation of Proposition 64 earlier this year. Deliveries simply give all Californians, even those in cities with sales bans, an option. Instead of picking up marijuana at a dispensary and driving it back to their home, someone else would do the transporting. It seems rather simple, and yet some local officials and law enforcement are portraying this as complete meltdown of law and order.

Based on the ridiculous theatrics of critics in regards to this proposal, it is obvious their local bans never had anything to do with the alleged negative effects of allowing marijuana retailers and cultivators to locate in their city. It was their way of making it as difficult as possible for law-abiding citizens to have access to products that, when consumed properly, are perfectly safe for both medical and recreational use.

There’s a reason California did not allow cities to ban personal use or growing a limited number of plants in their private residences. The state, and the citizens who voted in favor of Proposition 64, believe consuming cannabis should not be a crime. It seemed right, though, for local governments to have autonomy in how to regulate businesses in their own city limits. They have abused this freedom, though, to the point that about 40 percent of Californians have an hour or more drive to even find a legal dispensary. Cities know this ludicrous burden could be lifted by allowing businesses licensed by the state to deliver to homes. The fact is, though, for many cities, the burden is intended to be a makeshift prohibition on the drug entirely.

Our Orange County marijuana delivery business attorneys know even living in a state with some of the best cannabis laws in the country does not make us immune from attacks on the industry. Some will do anything to undermine what liberties have been achieved. Our experienced lawyers are here to help delivery companies and other marijuana businesses navigate the gray areas of the law and help protect you from unnecessary attacks.

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:

Santa Clarita Marijuana Delivery Services In ‘Legal Limbo’ As California Regulates Weed, By Devon Miller, Sept. 6, 2018, KHTS Santa Clarita

More Blog Entries:

New Regulations Require Cannabis Delivery Services to Rethink Their Business Models, Oct. 9, 2017, Cannabis Law Group

While legalized possession and use of recreational marijuana throughout the state, it left a great deal of power to the local governments to dictate regulations and sales. As our marijuana business attorneys can explain, this meant even though citizens were allowed to carry and use cannabis, cities and counties had the right to ban various aspects of commercial cannabis activity, including sales.

While 57 percent of voters approved Prop. 64, local laws have made it so 75 percent of consumers cannot easily access marijuana, according to an article from SFGate. While it is important for local governments to maintain control over their jurisdictions, this disparity does not reflect the will of the people. A vast majority of Californians understand the benefits of cannabis. Many have seen its positive effects through medical use, which has been legal in California since 1996 through the Compassionate Use Act. Others have come to learn that it can be an alternative to alcohol in social situations, without many of the long-term health effects of drinking, particularly when it is consumed in ways other than smoking, such as edibles and vaping. This positive perception of the drug has led to big advancements in legislation. However some of the stigma of the past still lingers, causing local leaders to overly restrict out of fear and misunderstanding.SB-1302 seeks to keep in place the rights of local jurisdictions, but hopes to clear up some confusing language in the Medicinal and Adult-Use Cannabis Regulations and Safety Act that has prevented delivery businesses from operating freely. According to MAUCRSA Sec. 63, the “A local jurisdiction shall not prevent delivery of cannabis or cannabis products on public roads by a licensee acting in compliance with this division and local law as adopted under Section 26200.” While some thought this permitted cannabis deliveries to any location, many have interpreted this to mean that public roads can be used to deliver marijuana … elsewhere. The actual delivery of the product can still be restricted in a city if the local officials so choose; they just can’t stop delivery services from driving through a city to their end destination.

The new bill would allow local governments to continue to ban businesses from setting up shop within their borders, but would prevent the passage of any ordinances that would prohibit deliveries to residents.

Our Orange County marijuana business lawyers recognize this as a commonsense compromise allowing citizens to access a drug that is totally legal to them while allowing cities to retain control over their own lands and zoning laws.

Local marijuana company owners and operators often find it difficult to navigate this complex array of state and local provisions. There are many potential legal and regulation snags companies can hit, and there is a significant risk of investment loss on the line – even if you’re held up for “only” a few weeks or days. Having a marijuana attorney on retainer can help ensure you are meeting all your obligations (and that all your rights are respected) is an imperative.

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:

Will Cannabis Delivery Survive in California’s Legal Market?, Feb. 6, 2018, By Peter Hecht, Leafly

More Blog Entries:

New Regulations Require Cannabis Delivery Services to Rethink Their Business Models, Oct. 8, 2017, Cannabis Law Group

Delivery businesses specializing in cannabis have a unique set of rules to follow. They must abide by the laws in the local jurisdiction in which their home base is located. But they also have to take into consideration laws that dictate transport. This has led to a particular set of challenges in Sacramento County, according to the Sacramento Bee.

While adult-use marijuana was legalized in the state Jan. 1, under Proposition 64, each local government was allowed to set its own terms. Under the law, deliveries can only be made between cities that allow it. This can be a real disadvantage to patients, some who have difficulty leaving their homes, and business owners. And product must be kept in the city where the business has a license.

In Sacramento County, as of now only the city of Sacramento has plans to receive deliveries. The city has not issued any permits yet, but eight delivery companies have registered while the permit program is being established. Meanwhile Sacramento’s pot czar says many businesses are operating without licenses, and he is on a mission to rein them in. A recent tally on a marijuana delivery website showed about 200 delivery businesses in the county.Our experienced marijuana delivery business service attorneys in Los Angeles know it’s difficult establishing a new company with numerous laws and regulations to consider. We know the challenge intensifies when you have to follow regulations that span across multiple city lines. And when your business is just getting off the ground, fees and taxes can be intimidating. Further, when you see peers skipping these important steps, it might be tempting to follow suit. But doing so can not only get you in trouble, it can hurt the marijuana industry as a whole, hurting other businesses that are in compliance.

Some delivery services might think they fall under the umbrella of a collective, which would allow them to operate without a permit until next year. But there are specific requirements that must be met to be considered a collective, namely that it must be a nonprofit. They would also need to be registered with the California Department of Tax and Fee Administration.

Regardless, the days of operating permit-free won’t last for long. Sacramento marijuana regulators are working with city police to establish an enforcement plan. Warning letters have already gone out to operations across the state.

It’s important that businesses who are not operating with a permit or who aren’t sure they are in compliance get legal counsel to advise them on how to move forward. Our experienced attorneys have the know-how to advise you on business plans, assist you with business licensing, and offer guidance on establishing collectives. Otherwise owners could face fines, lose their business, or more. Avoiding these regulations might not seem like a big deal now, but any money being saved in the short term could cost your business big time in the long run.

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:

Are You Getting Marijuana Delivered to You? If So, It’s probably Illegal, Feb. 16, 2018, By Brad Branan and Phillip Reese, The Sacramento Bee

More Blog Entries:

City of Los Angeles Targets Another Marijuana Delivery Service, May 21, 2016, Cannabis Law Group

Many cities especially are passing regulations in order to limit the influence of the state on how the city chooses to oversee marijuana delivery services, growers, collectives, and edible and concentrate producers. Delivery services in particular must navigate a continually growing list of rules, ranging from methods by which the businesses can make deliveries to where they are allowed to set up. In Hesperia, California, for example, the city council approved an amendment that expands the area approved for establishing delivery services and affirms cannabis activity regulations, according to an article from The Daily Press. Marijuana delivery businesses in the cannabis Commercial Industrial Business Park zone district of Hesperia must be located at least 600 feet away from residential and agricultural zones, schools, day cares, playgrounds and parks, places of worship, among other restrictions. These rules are in line with regulations on other restricted businesses in the city, such as adult businesses, residential care units, and liquor stores. The majority of the city council voted in favor of expanding the area in which delivery services could operate, citing medical marijuana use and a desire to show compassion and offer relief to residents who are suffering. But the one dissenting councilperson brought up a recurring concern that such expansions not only increase accessibility for medical users, but could also open up the possibility for more irresponsible marijuana use. He cited an alleged increase of homelessness and a leap in drug violations in schools in Colorado in the five years since legalization occurred in that state. He pointed the finger at an increase in drivers involved in fatal crashes testing positive for marijuana use, though it’s not clear if it is correlation or causation that has led to this jump. While the compassionate response toward medical cannabis users has helped to further the cause in a positive way, there are still many negative perceptions and misunderstandings that have led to a myriad of added regulations and restrictions. This is why it is so important for entrepreneurs looking to set up marijuana delivery services to speak to a cannabis lawyer. It is challenging enough to keep up with California state laws, but when laws differ from city to city, it’s extremely difficult to keep up. An experienced marijuana business lawyer can give you the guidance you need to prevent potential future legal trouble that can be very costly or endanger your business. Not to mention, it’s essential for business owners to remember that marijuana is still a Schedule One substance on the U.S. Controlled Substances Act of 1970 (USCSA), opening the door to many more legal considerations when properly setting up your marijuana delivery business. Our cannabis business attorneys will show you how to navigate potential federal legal obstacles while also being compliant with state and city 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:

Hesperia council votes to expand cannabis business zone, November 26, 2017, By Rene Ray De La Cruz, The Daily Press

More Blog Entries:

New Regulations Require Cannabis Delivery Services to Rethink Their Business Models, October 9, 2017, by Cannabis Law Group

This would be a major victory for parents of children grappling with conditions that require medical marijuana. Some of these children have been diagnosed with conditions like autism and epilepsy, and marijuana has helped to reduce their symptoms, focus and possibly even participate in a class as any typical child would.

But of course, allowing children to use marijuana as medicine has long been a subject of controversy. It has grown increasingly accepted as there have been a number of anecdotal success stories, as well as studies that suggest children with autism, cancer, epilepsy and other conditions may have a better quality of life if they have access to marijuana therapy. In a lot of cases, it only requires a tiny amount of cannabis oil given over the duration of the day to have a substantial impact on the lives and futures of these children.

Two years ago, New Jersey Gov. Chris Christie signed a measure that gave parents or guardians of minors with a medical marijuana recommendation to administer the drug to their child while on school grounds. That measure was significant not only for the fact that it was important for parents in that state, but because Christie has never been a strong supporter of marijuana whatsoever. Further, he never had any intention of broadening the medical marijuana program that was in place when he took office. It was surprising and set a precedent that was soon followed by Colorado.

Both Washington state and Colorado were the first in the nation to approve marijuana for recreational purposes. However, giving the drug to children – even those for whom it is medically necessary – has long been a controversial subject. That’s why even in Colorado after the state law was passed allowing schools to do so, many schools haven’t determined yet whether they will give the green light to let parents do it.

For now, that means parents who need to administer the drug to their child throughout the day have to go to the trouble of going to the school, pulling their child out of class, taking them off campus, administering the drug somewhere else, and then signing them back in to school. The schools that have been so far cooperative have mostly designated a private room for the medicine to be given.

If the bill in Washington state passes, it will mark a significant improvement in the medical marijuana program in the state, as it will offer more children the chance to get the most out of their education. Our L.A. marijuana lawyers believe no child should be denied that opportunity, regardless of what kind of medicine they require in order to function on a day-to-day basis.

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

Additional Resources:

Washington Lawmakers Move to Allow Medical Marijuana in Schools, Jan. 19, 2017, By Julia Granowicz, The Marijuana Times

More Blog Entries:

Cannabis Business Licensing Woes in Portland Costing $22M/ Month, Jan. 18, 2017, L.A. Marijuana Lawyer Blog