Now though, our marijuana business attorneys are seeing a new type of claim cropping up among cannabis companies: Employment litigation pursued by workers within the cannabis industry. One of the most recent is a marijuana employment lawsuit filed in the U.S. District Court for the District of Oregon.

Plaintiff was previously employed to provide expertise and labor to an investment company that owned a marijuana grow operation in Junction City. He alleges that despite being a non-exempt employee, in turn requiring the company to pay at least minimum wage plus overtime for all hours worked over 40 in a given week (which he claims he did frequently), the company failed to pay him for approximately 2,500 hours worth of pay. He further alleges the cannabis company failed to provide him itemized pay statements or establish a regular pay day, both in violation of state employment laws. He also incurred numerous expenses on behalf of the company, such as using his personal vehicle for work purposes with no reimbursement.

He’s seeking actual damages for unpaid minimum wages, overtime, travel reimbursement, penalties, attorney’s fees and costs. Although no specific number is cited, this amount could be well over $40,000, just based on claims related to violations of the U.S. Fair Labor Standards Act alone.

The outcome of this case could be influenced by another marijuana FLSA decision pending in the U.S. Court of Appeals for the Tenth Circuit, Kenney v. Helix TCS, Inc., originally weighed in the U.S. District Court for the District of Colorado. Although the Oregon case was filed within the Ninth Circuit, which isn’t obligated to follow the precedent in the Tenth Circuit, sister courts often do take rulings in similar cases to heart.

In the Kenny case, plaintiff previously worked for a company that provided security services to marijuana businesses and was classified as an exempt employee. That meant the security firm didn’t pay him overtime, as required by FLSA. Plaintiff alleges he was misclassified, should have been paid overtime and sued for it. The employer moved to dismiss the case, arguing the worker wasn’t entitled to federal labor law protections because marijuana was expressly forbidden by the U.S. Controlled Substances Act. The federal judge denied the motion, but then certified the question to the U.S. Court of Appeals for the Tenth Circuit: Are employees of cannabis companies entitled to federal labor law protections even though they are essentially engaged in drug trafficking, which is expressly forbidden by federal law?

California cannabis lawyers know these kinds of cases are increasingly going to arise so long as the drug is barred by federal law.

Generally speaking, it’s just good practice as an employer of a marijuana business – or any business – to make sure you’re properly labeling your employees (easier said than done as employee misclassification is California is tricky even when you’re trying to get it right). Consulting with an experienced Los Angeles marijuana business attorney with specific experience in employment law will help make sure you aren’t vulnerable to employment litigation – which will save you more in the long run.

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

Additional Resources:

Kenney v. Helix TCS, Inc., Jan. 15, 2018, U.S. District Court of Colorado

More Blog Entries:

Los Angeles Marijuana Lawyers Highlight 2018: Cannabis’ Biggest Year Yet, Dec. 31, 2018, Los Angeles Marijuana Attorney Blog

There is widespread understanding by those operating medical dispensaries that with the law allowing recreational use in place, they are not going to be able to survive peddling medical pot alone. Now that recreational marijuana dispensaries can sell to anyone over the age of 21, there is little incentive for consumers – or dispensaries – to go through the additional bureaucracy that medicinal marijuana requires – except in case where patients are under the age of 21. That could mean those patients will have a tougher time finding specialized strains or compounds.

The new regulation also comes with a provision that allows consumers to purchase more of the plant and pay lower sales taxes on it. However, at least for the next few months, they may find they have fewer venues from which to buy. That’s because dispensaries will be actively making the shift from medicinal operation to recreational sales.

Oregon has about 300 marijuana dispensaries currently, but it’s expected that number is going to fall this year as medical-only shops either make the switch to recreational or drop out of it all together.

Meanwhile, sales at some existing recreational marijuana dispensary sites is booming. At one location in Portland, a dispensary owner who solely distributes the drug to recreational buyers reported his sales shot up by 20 percent in a single week after the new regulation went into effect. Many of those new customers are reportedly individuals who previously used to patronize nearby medical marijuana dispensaries that are now without the proper licensing through the Oregon Liquor Control Commission.

The state has thus far gotten about 70 requests from dispensary owners who have cited their intention to drop out of the medical marijuana system. It’s expected most of those are going to transfer into recreational sales.

Portland has its own licensing for cannabis companies, with 41 recreational pot shops currently operational. Retail licenses are pending for another 17 locations and 32 others have been approved but haven’t yet gotten the final sign-off from state officials.

It’s estimated that ultimately there will be about 400 recreational marijuana dispensaries across the state, which has prompted vocal concerns about market saturation. Specifically, if the supply exceeds the demand, the worry is that the product will then seep into the underground market.

Recent inspections of the medical marijuana suppliers, though, doesn’t seem to indicate there has been any major breach of regulation. The state health authority, which is in charge of marijuana dispensary inspections, recently deployed five inspectors across the state, anticipating high rates of non-compliance. However, what they discovered was that of the 46 places inspected, only one had any type of violation. In that case, a civil penalty is pending. Serious violations of state regulations could result not only in fines but also loss of a facility’s registration. All medical marijuana dispensaries are expected to be audited by the end of the month to make sure they aren’t breaching the threshold into recreational sales without proper licensing.

Even though marijuana is much easier to get in Oregon than ever, the concern is that medical marijuana will be tougher to obtain, and that could be a problem for people who depend on it. Medical marijuana patients are allowed to shop tax-free at recreational stores, but they can no longer necessarily expect low cost product. This too leads to concern that there will be an opening for the illicit market.

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

Additional Resources:

Big change: Medical marijuana dispensaries no longer selling rec pot, Jan. 9, 2017, By Noelle Crombie, The Oregonian

More Blog Entries:

Marijuana Industry Poised to Generate Many New Jobs, Jan. 4, 2017, Portland Marijuana Lawyer Blog

According to The Oregonian, the first alert in mid-October concerned two strains sold by a Portland-area dispensary called New Leave that had high levels of an insecticide called spinosad. The marijuana was sold to some 130 consumers over two days. The strains were dubbed, “Dr. Jack” and “Marion Berry.” The Oregon Health Authority reported the spinosad levels in the former batch were 42 parts per million while the latter had 22 parts per million. The maximum allowable by health regulations is 0.2 parts per million.

The second alert came earlier this month when it was determined that three strains of marijuana flowers sold from dispensaries in North Bend, Eugene and Salem also had unsafe levels of spinosad. One of those batches, “Dutch Treat,” sold in Eugene to about 30 people, had 0.9 parts per million of the chemical. Meanwhile, two other strains – Dryzle and Pleeze – were sold to approximately 340 people at two dispensaries between mid-to-late October. Those strains had high levels of a chemical called piperonyl butoxide, which in itself is not a pesticide, but is a powerful and potentially dangerous ingredient that is only allowed to have 2 parts per million. In the Pleeze and Dryzl strains, there were between 15.39 and 16.24 parts per million, based on independent lab tests.

The state hasn’t released information regarding the identities of the growers, and it’s also not clear how these strains made it to store shelves after they reportedly flunked the lab testes. Health department officials are trying to piece together what happened. Producers are supposed to destroy products that fail to meet those stringent standards. Of course, cultivators would do so at a loss – and perhaps a substantial one – but it’s not clear if the product was cleared for distribution intentionally or if it was some kind of oversight. In either case, our L.A. and Oregon marijuana lawyers know this is something that requires closer examination.

Cultivators and distributors who follow the strict regulatory guidelines do so at a cost, but it ensures the safety and well-being of customers and the public. Businesses that may not follow the rules in turn have an unfair competitive advantage – at the expense of public safety. We’re hoping, though, that this was merely a procedural error that can be quickly identified and corrected.

It’s worth noting, however, that California may have a fair way to go in these regard. A company called Steep Hill labs, based in California, conducted research that concluded nearly 85 percent of marijuana products tested positive for residual pesticides. What’s more: These plants would have failed Oregon’s regulations. As the CEO of the lab stated, smoking a joint that is contaminated with pesticides could be potentially lethal. This is something that deserves our immediate attention and resources.

It was only in October that Oregon began regulation and monitoring of “accepted” levels of pesticide residue that is allowed to be on marijuana sold to the public. In investigation last year by The Oregonian revealed that relaxed state rules and minimal oversight resulted in laboratory practices that weren’t consistent, which meant test results were all over the map – and marijuana with pesticides was routinely on the shelves.

Today, the state health authority requires that any labs conducting marijuana testing must be state authorized.

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

Additional Resources:

Oregon issues health alert for three marijuana strains with pesticide residue, Nov. 3, 2016, By Molly Harbarger, The Oregonian

More Blog Entries: Report: Oregon Recreational Marijuana Sales Off to Strong Start, Oct. 27, 2016, Oregon Marijuana Lawyer Blog

Los Angeles marijuana lawyers know that legalization of marijuana for recreational use needs to come with laws that allow for effective regulation of sales and consumption. States have always been the laboratories for democracy, and as different locations move forward with legalization, it is important to consider the different frameworks they put into place to find out what works. If legalization of cannabis for recreational use is ever to occur on the federal level, it is likely it will adopt provisions of one or more state codes that have been effective at regulating recreational marijuana sales and use.

New Framework for Recreational Marijuana Sales Oregon Live reported on the newly-released rules, which were revised by the Oregon Department of Justice as well as by the Oregon Liquor Control Commission before final approval. The rules will take effect in January of 2016, when the state begins accepting applications for licenses for the sale of recreational marijuana.

The rules establish a seed-to-sale tracking system, with two different tiers based on where the marijuana is grown and based on the size of the operation. A tier 1 license permits indoor growers to cultivate up to 5,000 square feet of space and permits outdoor growers to cultivate up to 20,000 square feet, or just under half-an-acre. A tier 2 license allows indoor growers to produce between 5,001 and 10,000 square feet of marijuana and allows outdoor growers to cultivate between 20,001 and 40,000 square feet, which is just under an acre.

Some growers and some local government officials have expressed concern the limits are too low, with one Jackson County official arguing cities and counties should be permitted to sign off on larger grow sites. In response to this complaint, the commission added a provision to the rules allowing local governments to approve more expansive growth. However, local governments cannot reduce the limits set by the Liquor Control Commission.

The rules also mandate that only Oregon residents may be majority owners of in-state cannabis businesses, and restrict investors from outside of Oregon in controlling and managing marijuana companies. While state law imposes residency requirements, the rule related to majority ownership comes from the Commission. Some lawmakers have expressed concern that this state residency requirement could stifle growth in the new industry and there is an effort underway to remove the residency limitation from the law.

Other rules address on-site consumption by employees of marijuana facilities, the home delivery of marijuana, background checks on staff members, and packaging for edible marijuana. It remains to be seen how the new rules will work in practice and whether they are able to put in place an effective regulatory system in Oregon for legal recreational marijuana sales.

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: CA Legislative Aide Accepted Marijuana Gifts, July 15, 2015, Los Angeles Marijuana Attorney Blog

Historically, we could always count on certain groups to staunchly oppose greater access, including parents, prosecutors and law enforcement officers. But lately, we’ve begun to see a shift.

Parents now see how medical marijuana has worked to alleviate the symptoms of children suffering cancer. Prosecutors have noted the flood of non-violent drug offenders whose cases clog the courts. Law enforcement, though, had seemed the one staunch hold out. Perhaps no more.

According to a recent report in the Huffington Post, a coalition of law enforcement officers have spoken out in support of marijuana legalization in the state of Oregon.

The petition was made public less than one week before voters cast their ballots in Oregon. The letter details the benefits of legalization, articulating that criminalization of marijuana has failed. According to the officers, arresting and citing the thousands of marijuana users in Oregon is only a distraction for law enforcement departments, as well as a “misuse of taxpayer resources.” The officers say these resources would be better spent on other initiatives. According to the law enforcement officers who signed the petition, resources should go to tackling violent crimes, thieves and the cartels that distribute heroin, cocaine and other more dangerous drugs.

Despite the law enforcement support from officers in Oregon, California, and Washington State, individual users residing in states where pot has not been legalized for recreational use can still face criminal penalties.

Our Orange County marijuana attorneys are dedicated to protecting the rights of our clients and in challenging criminal allegations related to marijuana possession, distribution, cultivation, and sale. We represent individuals as well as dispensary owners who have been accused of violating local, state and federal drug laws.

As more states turn to voters to determine whether pot should be legalized for medical or recreational use, many states are in flux. The laws vary by local, city, and state, and all residents should be aware of the potential liabilities in their own state and when traveling out of state. In Oregon, Measure 91 would permit adults to possess up to 8 ounces of marijuana at home and up to 1 ounce in public. According to reports, the taxes on marijuana sales would fund schools, law enforcement departments, drug prevention measures and education programs throughout the state. If passed, marijuana use and sale would be regulated by the Oregon Liquor Control Commission. November 4 will also be a critical day in Alaska and Washington D.C., where voters are determining whether recreational cannabis should be legalized.

In Oregon, current polls indicate supporters have a slight lead, with 46 percent in favor of legalization and 44 percent against. In addition to the support from members of law enforcement, Governor John Kitzhaber has also made his support for legalization public. Many see the writing on the wall and the potential for federal legalization of marijuana use. Legalization by state first protects citizens while also ensuring a thoughtful regulatory system. Oregon predicts a tax revenue increase between $17 million and $40 million. 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: Getting Started in the Medical Marijuana Industry, May 15, 2014, Los Angeles Marijuana Lawyer Blog Colorado Pot Seized by U.S. Postal Service on the Rise, September 22, 2014, Los Angeles Marijuana Lawyer Blog

Taking the U.S. interstate and carrying marijuana can be a huge risk, given the varying degrees of legality, enforcement and penalties by state. Our Orange County marijuana law attorneys are dedicated to protecting the rights of our clients. In addition to providing strategic criminal defense, we also help marijuana distributors and other proprietors protect their rights and ensure compliance with California marijuana law. Our attorneys are abreast of the evolving marijuana market and the trends in marijuana law that could prevent charges or expose users and distributors to liability.

Even when a marijuana card holder can carry and possess the product in a home state, bringing the product, even with a card, can be dangerous and result in criminal liability. According to a Bloomberg report, a California marijuana card holder was pulled over in Oklahoma. After presenting his marijuana card and admitting to carrying marijuana, he was charged with felony possession and could face decades in prison. Even though the possession of recreational use marijuana is legal in Washington and Colorado, and medicinal marijuana is legal in 23 states, half the country still criminalizes marijuana use, possession and distribution.

For motorists who need to use the interstate, marijuana laws can be complicated and leave drivers vulnerable to liability. Many of these challenges may result in a U.S. Supreme Court case, but the current legal system leaves any traveler crossing state lines exposed to criminal liability. States like Idaho are surrounded by Washington, Oregon and Montana where pot is decriminalized. According to reports, Idaho authorities seized three times more pot this year than in 2011. While national advocates work towards a more comprehensive reform, individual travelers should be wary of the risks they take on when crossing stateliness.

According to the National Organization for the Reform of Marijuana Laws, 14% of Americans use marijuana. It is the third most popular recreational drug, just behind cigarettes and marijuana. While the majority of Americans do believe that cannabis should be legal, many states are reluctant to pass new marijuana laws, especially given the federal prohibition and classification of the drug. Thought the Justice Department has advised federal prosecutors against pursuing low-level marijuana crimes, it does require that states impose a clear, “strong and effective” regulatory system for controlling the use of marijuana.

Even though the majority of Americans believe in legalization for medical use and an increasing number believe in legalization for recreational use, conflict remains for those traveling across state lines. In states where marijuana card holders have been arrested and charged, many locals are already urging for legalization. Despite hopes for legalization, many defendants will be charged, convicted and sentenced before legislative changes take place.

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: D.C. Decriminalizes Marijuana, Federal Land Raises Legal Complications, July 16, 2014 Los Angeles Marijuana Lawyer Blog United States Marijuana Laws Influencing Other Countries, February 14, 2014, Los Angeles Marijuana Lawyer Blog

If the law passes, adults over 21 in Oregon would be allowed to possess up to 8 ounces of marijuana at home and one ounce of marijuana when in public. Our Orange County marijuana law attorneys are dedicated to protecting the rights of individuals and entities involved in the California legal marijuana business. In addition to compliance and regulatory matters, our firm is committed to staying abreast of marijuana law in the state and nationwide. We provide counsel, support, and advocacy to marijuana investors, business owners, and individuals who have the legal right to possess or use marijuana.

The initiative was submitted by a Portland-based marijuana policy reform group known as New Approach Oregon. The group collected more than 87,000 signatures before turning it over to the Secretary of State’s office who verified the signatures. If Oregon residents approve the measure, the Oregon Liquor Control Commission would be charged with regulating and monitoring the industry. Analysts see the initiative as running parallel to the legalization and regulatory model used in Washington State.

One of the benefits to legalization is the increase in tax revenues that can be collected on marijuana sales. The legalization measure mandates that tax revenues collected on marijuana would be distributed to schools, drug prevention and education programs, as well as increase revenue spent on law enforcement. Given the political climate in Oregon, analysts predict that the measure will pass. Recent polls show that 57% of voters in Oregon would support the legalization of recreational marijuana use.

Though recreational pot use is not legal yet in the state of Oregon, pot has already been decriminalized and legalized for medical use. John Kitzhaber, Democrat and Governor of Oregon has publicly stated his support for recreational marijuana use. Taking into consideration the positive reverberations from Washington and Colorado, the state is following the lead and entering into the legal and regulated marijuana market. Crafting comprehensive and thorough marijuana legislation can clarify rights and obligations, identify tax liabilities, and ensure that the state is not subject to federal intervention.

While most states are considering or have already passed some form of marijuana laws, Oregon, is one of a handful of states that is considering full-on legalization. In the fall, Alaska voters will determine whether recreational marijuana should be legalized for adults. In the biggest year of marijuana reform to date, the shift towards legalization has proven epic. With states following in the path of Colorado and Washington, it is likely that even more will follow in 2016. Some see the marijuana reform debate as a pivotal point in the 2016 presidential race.

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: D.C. Decriminalizes Marijuana, Federal Land Raises Legal Complications, July 16, 2014 Los Angeles Marijuana Lawyer Blog United States Marijuana Laws Influencing Other Countries, February 14, 2014, Los Angeles Marijuana Lawyer Blog

The politics have been shifting regarding marijuana for medicinal and even recreational use, but Los Angeles medical marijuana lawyers know that there is a long way to go to ensure that growers and distributors do not face federal action and that those who depend upon marijuana can realize the health benefits throughout the United States. A political action committee that lobbies for positive change may be able to help bring about important changes and aid in the creation of public policy that makes sense.

Marijuana Growers Super PAC To Advance Marijuana Rights Oregon Live reports that The Oregon Cannabis Growers PAC was registered in March and represents approximately 20 different growers in the state of Oregon. The committee also intends to reach out to growers in Southern Oregon who generally focus their efforts on growing outdoors. The PAC has hired the lobbyist who initially helped to draft the medical marijuana registry law for the state.

The goal of the PAC is to make it possible for more state oversight so that marijuana can start to move out of the gray market. Marijuana growers want a well-regulated and safe system that will allow for them to be treated just like the growers of any other crop. The growers want to be able to pay taxes, they are seeking the development of a licensing and compliance process, and they want legal protections.

Hopefully, the lobbyist will help the PAC to get legislation passed that applies throughout Oregon and that strengthens the system of medical marijuana rules in place. Oregon adopted medical marijuana use early, with voters approving the program back in 1998. The system, however, has changed and evolved and the laws need to change with it.

The original law envisioned a system where individual patients were able to link with growers who then produced cannabis for them. The growers would then be reimbursed for the expenses associated with growing the marijuana crop.

This is often a less practical solution than retail outlets, and the Oregon legislature has now sanctioned retail medical marijuana sales to better connect buyers and sellers. With the ability to sell to retail stores, growers can reach wider audiences. This has necessitated the need for logical common sense changes including protection from law enforcement. These changes may come if the PAC is successful.

The implications of new laws in Oregon could have a far-reaching impact as more states grapple with how to address taxation and regulation of medical or even recreational marijuana. If the PAC can shape the laws and if the new framework that is developed works in Oregon, other states may decide to adopt similar policies as their own marijuana industry grows.

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: Lawmakers Debate Tighter Marijuana Laws – In Colorado Too!, February 19, 2014, Los Angeles Marijuana Lawyer Blog

Our Oregon medical marijuana attorneys understand that House Bill 3460 is a significant measure for the state, which has allowed for legal possession and consumption of marijuana by qualified medical patients since 1998. However, prior to the passage of this law, patients were required to either grow the drug themselves or to designate an individual to grow it for them.

Dozens of dispensaries had cropped up throughout the state during that time, but none of them were technically legally allowed to operate. It was sort of a gray area in legal terms. There was nothing in the 1998 law that said they couldn’t operate, but nowhere were they granted permission either.

Toleration of the dispensaries varied significantly from region to region across the state. In some places, such as Multnomah County, the facilities were, for the most part, tolerated.

However, there were also a fair number of state and federal raids in Washington, Malheur, Lane and Jackson counties aimed at shutting down these facilities, which were unquestionably providing a valuable service to ill patients. In some of those locations, dispensary owners are still awaiting trial.

What the new law does is give the state the authority to license, inspect and audit stores that sell the drug.

Proponents of the measure say existing businesses need to be screened and monitored by the state in order to protect patients. There remains concern about whether the opening of dispensaries will make it easier for people to gain illicit access to the drug through abuse of the medical marijuana program. However, because the program itself was already overseen by the state, logically, that could have been happening for some time. Fortunately, that has not proven to be an issue of any significance.

The new law grants the Oregon Health Authority until March of next year to draft new rules on dispensary site security, marijuana testing and other important regulatory and licensing issues.

The measure requires dispensaries to apply for a license from the state’s Medical Marijuana Program – similar to the process patients are required to undergo. Operators will have to pass a criminal background check. They will also have to record the amount of marijuana being funneled in and out of their stores and they will have to verify that the drugs are being grown by cultivators who are registered with the state.

Additionally, there are a litany of regulations that involve limits on mold, mildew and pesticides – all of which the product must be regularly tested for to make sure the medicine isn’t contaminated.

Owners will need to shell out a registration fee of $4,000. The state is anticipating some 225 dispensaries will register over the next two years, generating approximately $900,000 for the state. Those funds will be used to offset the cost of establishing and operating the new system.

There are roughly 57,000 Oregonians enrolled as patients in the state’s program, while there are approximately 200 unlicensed cannabis distribution sites.

Any of those who wish to formalize their standing with the state should first seek the advice of an experienced marijuana attorney.

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

Additional Resources: Oregon Legalizes Marijuana Dispensaries, Aug. 14, 2013, By Jonathan J. Cooper, Associated Press More Blog Entries: Oregon Marijuana Petitioner Must Pay $65K Fine, Judge Rules, July 25, 2013, Oregon Medical Marijuana Lawyer Blog

As our Oregon marijuana lawyers understand it, the sponsor of the Oregon Marijuana Policy Initiative, which sought to have marijuana legalized for recreational purposes in the state, was fined for violating a state law barring sponsors from paying petitioners based on how many signatures they collect, as opposed to how many hours they worked.

The fine was first issued back in the spring of 2012 by the Oregon Secretary of State. The allegations involved two petitioners, who were reportedly improperly paid petitioners for 26 out of 30,000 signature sheets that were ultimately submitted by the campaign. The petitioners, per state law, should have been paid by the hour for their work.

The organization’s sponsor has said the two petitioners who accused him were reportedly “incapable of telling the truth.”

The $65,000 fine was the largest ever issued in the state for such a violation, nearly six times higher than the previous record. Prior to that, the biggest fine ever issued for a similar offense was back in 2008, for about $11,000.

The fine was appealed by the sponsor to a senior administrative law judge, who ultimately upheld the fine, saying she believed that the sponsor did in fact violate the law.

The sponsor vehemently denied this, pointing out that the case relied heavily on the testimony of the two petitioners. Only one of those reportedly showed up to the hearing and, according to the sponsor, that individual was found under cross-examination to have lied about numerous aspects of the case.

For example, this individual said he spent a number of hours collecting signatures at the busy market area in both January and February of 2012. However, later research would reveal that the market area wasn’t open during those times.

The other petitioner, who did not show up to court, had initially filed a wage-and-hour complaint with the state’s Bureau of Labor and Industries indicating that he had worked every day in the first two weeks of February. However, it was later revealed in a phone deposition that this individual was actually out-of-state during those dates.

The sponsor’s efforts would have asked voters in Oregon to green light a state constitutional amendment to legalize marijuana for recreational purposes. The measure needed 116,000 signatures to qualify for the ballot, and the sponsor was able to collect a total of 175,000. However, the measure didn’t make the ballot after the secretary of state’s office disqualified nearly half of the signatures. The sponsor sued, but the measure still never made it on the ballot.

A similar measure, the Oregon Cannabis Tax Act, also widely recognized as Measure 80, did make its way before voters in 2012. However, it was ultimately defeated by a narrow margin.

The sponsor has said he intends to appeal.

We absolutely support civil involvement, particularly as it regards marijuana rights. However, ensuring that all actions relating to the process are aligned with local, state and federal laws is critical. Individuals and organizations involved in such efforts should first consult with an experienced marijuana lawyer before embarking on their initiative.

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

Additional Resources: Judge Upholds $65,000 Fine Against Oregon Marijuana Legalization Petitioner, July 8, 2013, By Thomas H. Clarke, The Daily Chronic More Blog Entries: Oregon Medical Marijuana Bill Heads to the State Senate, June 29, 2013, Oregon Marijuana Lawyer Blog

As our Oregon medical marijuana dispensary lawyers understand it, prosecutors are pressing ahead based on the assertion that the actions committed by these owners and operators were illegal at the time they were carried out, regardless of the fact that they are legal now.

House Bill 3460 establishes a legal marketplace for medical marijuana. The state, which was one of the first to legalize access to medical marijuana back in 1998, never had a system by which patients could legally obtain the drug at a storefront. Of course, as the state’s 56,000 patients today now know, growing the drug has proven a major challenge. It’s a fickle plant that requires constant care and attention, particularly if you hope to breed strands of it that will reduce certain traits (intoxication) while boosting others (appetite stimulation).

In fact, one of the cases that stirred advocates into action, a raid leading to criminal charges against the owners of Washington County’s The Human Collective, is one of those that is still on track for trial. The owners are accused of manufacturing, possessing and distributing marijuana. One is also facing child neglect, by virtue of the fact that a child was in her home at the time that marijuana was present.

As the bill was originally written, there was a clause that would have protected existing establishments facing prosecution. However, the Oregon District Attorneys Association had pushed for a last-minute change to the law to alter that wording in a way that would allow pending cases to move forward. Prosecutors say they reserve the right to prosecute any dispensary that was in operation prior to the state’s issuance of registry cards, which isn’t expected to begin until early next year.

In some cases, certain organizations, such as the 45th Parallel in Malheur County, may not have been protected even if the law had been in place before. The law holds that retailers have to remain a separation from grow sites. So far in that case, ten people have pleaded guilty to charges of distribution and/or possession of marijuana. Charges are still pending against eight others.

Some legal scholars have speculated that even if prosecutors are on technically solid legal grounds in their prosecution, the passage of this bill complicates their work because there are many people who are going to be opposed to the agency spending its resources in this way. That could in turn lead to some resistance from jurors, should this pending cases make it to trial.

Some may say that jurors don’t have the right to “judge the law.” But the reality is, regardless of what the prosecutors or judge tells them, they can and sometimes very well do.

The specific charges against these individuals is that they received reimbursement for medical marijuana above and beyond supplies and utilities. The Oregon Medical Marijuana Act, prior to HB 3460, did not allow for compensation to be doled out for any other expenses.

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

Additional Resources: Prosecutions continue, despite legislation allowing medical marijuana retail outlets, July 12, 2013, By Noelle Crombie, The Oregonian More Blog Entries: Oregon Medical Marijuana Dispensaries Soon to be Regulated, July 11, 2013, Oregon Cannabis Lawyer Blog

Our Oregon marijuana lawyers understand that Gov. John Kitzhaber has expressed his intention to sign off on the measure, House Bill 3460 recently passed by both state legislative bodies, in spite of fierce opposition.

Although Oregon was one of the first states to legalize marijuana for medicinal purposes, like many of those other early pioneers, it failed to establish a clear system of regulatory guidelines under which dispensary operators should abide. This has not only left the door open to less-than-responsible enterprises, it has meant operators who wanted to run a clean facility weren’t sure exactly how they were to proceed. So many didn’t. Any dispensary that did dare to open was subject to state and of course federal sanctions.

The way the current law was originally drafted, patients with certain debilitating medical conditions are allowed to grow their own cannabis or designate someone else to help them. However, what legislators failed to recognize at the time was that marijuana is a fickle plant. Growing it can be time and labor intensive. Not everyone has a green thumb, and it can be especially tough if a person is already grappling with a serious disease. However, there was no provision in place that would have allowed marijuana patients to legally purchase the drug from a third-party establishment.

What HB 3460 allows is for a registration system of medical marijuana dispensaries that would be established under the umbrella of the Oregon Health Authority by sometime next year. These dispensaries will be given the express authority to delivery the drug and immature plants to ailing patients.

Supporters of the measure say this makes the most sense because it keeps patients from being forced to turn to the black market to obtain their medicine. The old system made criminals out of people who were simply trying to be well.

Opponents, however, argue that the bill won’t stop medical marijuana from seeping into the black market, and there wasn’t enough funding set aside to aid law enforcement in curbing those kind of issues. Some have urged the governor to set up a work group to further study the issue.

Similar bills tanked twice before, but safe access groups continued to press the issue.

This measure ultimately passed both the state House and Senate, albeit with split votes.

If and when the bill is signed into law, the measure would require each dispensary to pay a $4,000 registration fee. Assuming 225 dispensaries register, that will bring in an automatic $900,000 to the state over the course of the next two years. The bill’s authors expect this money will be used to offset the cost of setting up and maintaining the new registration system.

Medical marijuana dispensaries will be allowed to set their own prices and the option of using state-approved cultivators. Only Oregon residents may run Oregon dispensaries and all of the plants must be grown in-state. Law enforcement will reserve the right to conduct registry and compliance checks on any facility they deem suspicious.

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

Additional Resources:
Oregon House Passes Bill To Legalize Medical Marijuana; Roll Out Expected By March 2014, July 8, 2013, Staff Report, HNGN.com

More Blog Entries:
Oregon Medical Marijuana Bill Heads to the State Senate, June 29, 2013, Oregon Marijuana Lawyer Blog

However, like California, the state failed to enact protections for the marijuana dispensaries from which the plant could be distributed.

Now, our Oregon marijuana lawyers understand that could soon change. House Bill 3460 would effectively legitimize the state’s medical marijuana industry, providing patients with safe, reliable access without intermittently being forced to turn to the black market.

The bill passed narrowly in the state House by a margin of 31-27, primarily along party lines, with no Republicans voting in favor of the measures. Opponents say the bill doesn’t do enough to prevent the diversion of the drugs to the black market. Proponents maintains that safe access has been a problem since the state first legalized the drug for medical purposes back in 1998.

The law allows those who qualify for access to medical marijuana due to some debilitating condition to grow it on their own or to have someone do it for them. The problem is that marijuana can be a fickle plant. It’s not as easy to cultivate as one might think. For someone who is chronically or terminally ill, it’s skill and time they don’t have.

Finding someone who can grow it reliably, they say, is tough. Because storefront marijuana dispensaries aren’t legal, many end up turning to dealers who sell it illicitly.

There are currently about a dozen other states that have enacted legislation that specifically allows for medical marijuana dispensaries. This measure would make Oregon one of those.

There are medical marijuana collective and clubs checkered throughout the state, but the have been the subject of intense scrutiny, law enforcement raids and federal prosecutions. Some of the operators of those establishments are facing prosecution, namely in Washington, Malheur, Lane and Jackson counties.

It’s difficult to say exactly how many marijuana retailers and/or dispensaries there are in Oregon, though it is believed by lawmakers to be somewhere in the ballpark of 200. The problem is that because they are not licensed, they aren’t tracked or regulated by any government agency. Officials say this is a major problem because it’s unknown how much money or marijuana is coursing through the veins of these places.

Of course, it’s a lose-lose for the dispensaries too because they have no guidelines to go by. Those who strive to operate a legitimate facility to offer a public service could face criminal charges. While federal law has yet to change, a lack of even a state law for protection leaves these operations vulnerable to aggressive enforcement action from both local and federal authorities.

HB 3460 has received the endorsement of Oregon Attorney General Ellen Rosenblum and would establish a statewide registry of medical cannabis retailers. It would require owners to pass criminal background checks and it would track the amount of marijuana being distributed at each site, with assurances that the product is received by growers who are registered by the state. That product would also be required to undergo testing for purity.

The vote in the House was closer than some expected it might be, so we now eagerly await the outcome of the Senate vote.

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

Additional Resources: Medical marijuana retail outlet bill passes Oregon House; now heads to Senate, June 24, 2013, By Noelle Crombie, The Oregonian More Blog Entries: Colorado Hemp Regulation Law Signed by Governor, June 23, 2013, Oregon Marijuana Lawyer Blog