By the end of California’s second year permitting the legal sale of adult-use recreational marijuana, the state’s per-capita sales reached just $70 per consumer. Comparatively, Colorado’s year two per-capita sales came in at $99, closely followed by Oregon at $97, while even Washington state reached $89.

California’s Cannabis Market Pitfalls Industry insiders estimate that the Californian market could have delivered an additional $1 billion in sales during its second legal year, if it could only have kept pace with these other states.

Our Riverside County marijuana business attorneys note there are many factors contributing to the state’s cannabis market challenges, such as:

• The size and scope of California’s illicit marijuana market, continuing to secure a sizable piece of the state’s cannabis spend;
• The illicit market’s ability to undercut licensed retail store marijuana prices, particularly as illegal storefronts can dodge the 30% retail tax captured in most cities, plus the $9.65 per ounce tax on adult-use cannabis sold at wholesale; and
• The limits imposed throughout California a number of local municipalities prohibiting cannabis business operations within their boundaries.

Licensed Business Owners Los Angeles business owners have shared that they are yet to see big increases in bottom lines. Even though they have seen pickup in foot traffic through their stores after the California-based online marijuana advertising site, Weedmaps, ceased posting ads for any marijuana stores without state permits, it has not amounted to much. That’s because they typical amount each customer is spending in store has also nose-dived. As a result, even with more customers, store revenue has basically remained the same.

Some Cities Are Making Adjustments Amid warnings that high city and state imposed cannabis taxes are effectively stoking the underground marijuana market, and in response to industry-wide calls for help, Monterrey County and Oakland have lowered taxes on marijuana sales. Whether those tweaks will deem effective in the long term remains to be seen.

Implications There is still huge growth potential for the legal cannabis market in California. The sooner the state can seriously combat and discourage illicit market operators, the better for fully licensed, law-abiding cannabis businesses. If taxes could be relaxed and limitations on operations lifted in certain communities, the growth in California’s legal marijuana market could be huge.

But as it stands, California’s local and state taxes on marijuana sales are set so high that it’s virtually impossible for legal retailers to compete with the unregulated market on price. Safety is a different issue. Following the vaping crisis that has claimed many lives, consumers seeking vaping products appear to be more readily seeking out permitted shopfronts for those transactions. 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: How California’s Legal Marijuana Market Wound Up in Crisis Mode After Two Years — Marijuana Business Daily, (January 30, 2020)

CBD is naturally found in cannabis plants, and is widely known for its relaxing properties. But CBD won’t produce a ‘high,’ as it lacks the psychoactive tetrohydrocanabidiol (THC), found in marijuana. CBD-derived products have quickly grown in popularity, thanks largely to a wide range of potential health benefits, including relieving pain, anxiety, seizures and brain injuries.

According to Michael Lux, partner at Crowe accounting firm, the next 6-12 months will involve strategic minority investments in the CBD space. He noted too that while the majority of CBD companies are of interest to investors, they are still less than five years old, so they’d likely need a little more time before preparing to engage in full exit strategies.

US Farm Bill Opened the Gates Over the last eight months, a slew of beauty, personal care, and pet brand products have quickly become available across a variety of retail stores. In part thanks to the US Farm Bill, which was passed in December last year. This bill essentially relaxed restrictions, allowing licensed cannabis growers to produce hemp on an industrial scale, without fear of prosecution. It also relaxed restrictions around selling hemp-derived products interstate. The passing of the US Farm Bill was a tipping point, enabling CBD-derived products to go mainstream.

A recent Forbes report even projected the combined U.S. CBD sales market would likely exceed $20 billion by 2024.

Too Early for Buyouts Meanwhile, one industry banker noted it will be some time before makers of CBD products start to see buyouts from traditional consumer packaged goods (CPG) companies, especially with regard to food and beverage products. Mostly because the Food and Drug Administration (FDA) is still working to outline its CBD regulatory framework, and that tweaking will likely be ongoing. Just last month the FDA announced it has prioritized efforts to establish clearer CBD guidelines, and plans to publish a report this fall.

Until then, companies selling personal care CBD products are particularly well poised to attract strategic investments. That’s because regulators are far more comfortable with non-ingestible products, which significantly minimizes an investor’s risk.

Regulators Pave the Way Once the FDA clarifies its regulations on CDB-derived products, we can expect strategic buyers to show interest in acquiring CBD brands across consumer, pharmaceutical, and food and beverage industries. In the meantime, there are five key regulatory concerns most investors are monitoring before investing in CBD businesses:

1. Drug Enforcement Administration regulation of CBD – marijuana is currently considered a Schedule 1 drug and is not approved for medical use in the U.S.; but hemp is defined as the plant, or any part of the plant containing a THC concentration of no more than 0.3 percent.
2. FDA regulation of CBD products – advertising or using CBD as a dietary supplement is currently prohibited.
3. Some state laws restrict CBD product sales – North Carolina, Maine and New York restrict CBD products, just to name a few, and could severely impact overall CBD product sales.
4. FDA limits advertising and label claims made on CBD products – the agency will diligently pursue companies making unsubstantiated marketing claims.
5. Regulation of CBD products will continue to evolve – a specific internal agency working group will continue to explore options for dietary supplements containing CBD to be marketed lawfully.

Legal Implications Thus Far While CBD businesses continue to blossom, investors will become increasingly active in the growing CBD sector. Investors, like so many other industry stakeholders will watch closely on how ongoing regulations will impact the marketplace. It is clear that no matter how the industry progresses, regulators and legislators will play a large role in defining just how products are developed, where they can be sold, and what can be touted in advertising and marketing efforts.

Need Legal Help Investing in or Acquiring a Commercial Cannabis Business? Our California Hemp & CBD attorneys can help answer any questions you may have.

The Los Angeles CANNABIS LAW Group represents growers dispensaries, ancillary companies, patients and those facing criminal marijuana charges. Call us at 949-375-4734. Additional Resources: 2018 US Farm Bill FDA Guidelines

But as the market grows, our L.A. marijuana business attorneys cannot stress enough how important it is that whatever you niche, you need an attorney to help you navigate through the complex process of state law and local regulation. Failure to do so can end up costing you a substantial sum in the long run.

Although it seems everyone is finding a niche in the cannabis market, there are some main umbrellas under which most of these operations fall:

• Cultivation
• Infused products
• Retail sales

Grow operations tend to be heavily regulated, require large upfront investment and horticultural background. Infused products are produced for recreational users or medical marijuana patients who may prefer edible forms of marijuana, and safety of these products is paramount. Retail service stores are often the priciest and toughest to launch, but can be among the most lucrative.

With any of these, you need to be aware of the existing regulatory environment and potential uncertainties, given the fact that marijuana is still considered a Schedule I narcotic under federal law. One most consider costs, residency requirements, impact of prior criminal records, potential risk, timing (often months for a license) and how you will structure all this with partners and investors.

One will also need to determine the type of legal structure you’re going to use for tax purposes, such as:

• Sole proprietorship;
• General partnership;
• Limited liability company (LLC)
• Corporation

Note too that Proposition 64 requires that you be totally compliant with the Bureau of Marijuana Control (responsible for licensing and regulation of marijuana businesses in California) and that you be sure your licensing and compliance is fully intact before you begin operations. Failure to do so may result not only in shut down of your business, but also potentially criminal charges. Entrepreneurs wading into the L.A. marijuana industry have invested too much of their time, their money and creativity to leave these elements to chance.

If you have a marijuana facility that was already operating in compliance with local ordinances on or before Jan. 1, 2018, you are likely allowed to continue operation until such time as your license is approved or denied, per AB No. 266.

You should also know that dozens of California cities in the last year have updated or established new local policies on marijuana cultivation, manufacturing and retail. New changes are being made constantly. So whether you have an existing marijuana business or are planning to launch a new one or are thinking of expanding, you need to consult with an L.A. marijuana lawyer in California who has been involved in marijuana business strategy and legal solutions from the very beginning.

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

Additional Resources:

Budding Cannabis Business Expo Sprouts in Downtown Los Angeles, Sept. 27, 2018, By Aliya Jasmine, NBC-4

More Blog Entries:

“Think About the Children” Goes Both Ways When It Comes to Marijuana, Sept. 14, 2018, L.A. Marijuana Lawyer Blog

proper use and regulations. The mid-September training is being provided by Riverside County’s Agricultural Commissioner’s Office and California Department of Pesticide Regulation, according to a release from the commissioner’s office. Commercial cultivation is banned in many parts of Riverside County, including the unincorporated areas, but the event is still open to anyone who wants to register.

Pesticides have become a hot-button issue in the marijuana industry, especially over the past few months. As of July 1, the transition period in which licensing authorities did not enforce certain regulatory provisions was no longer in effect. As our experienced attorneys can explain, mandatory laboratory testing was among those regulations that would be enforced. This has meant any cultivators not in compliance with pesticide use are now flagged during testing and their product is not able to make it to market. Even before July 1, pesticides were regularly in the news, with some unlicensed cultivators using toxic pesticides that have been killing off wildlife. Such behavior has had devastating effects on local ecosystems and given responsible cultivators a bad name.

Medicinal and Adult-Use Cannabis Regulation and Safety Act appoints the Department of Pesticide Regulation as the authority on matters of maximum tolerances for pesticides, residue on harvested cannabis, applications, and types of pesticides permitted. Per MAUCRSA, Sec. 41, 26060 (d-g), Department of Food and Agriculture is to be consulted on how guidelines specific to the cannabis industry are set, though cultivators must also follow certain rules already in place, such as prohibition of certain pesticides in the state.

It’s clear to anyone close to the matter that education is the key to everything about the cannabis industry. Through the power of information, scientists have discovered medical breakthroughs involving marijuana. Researchers have gotten a better grasp on the effects of ingesting different doses of cannabis in different ways. This has led to better results for medical patients as well a better understanding for how to safely consume recreational marijuana. Now that experts are learning more about other aspects of the marijuana industry, pesticides and their health and environmental impact are no different. Topics covered in the training include operator identification numbers, pesticide use reporting, private applicator certificates, employer requirements, worker health and safety, and understanding pesticide labels.

In Riverside County, nine cities currently permit both recreational and medical commercial grow operations: Blythe, Cathedral City, Coachella, Desert Hot Springs, Lake Elsinore, Moreno Valley, Palm Desert, Palm Springs, and San Jacinto. Perris allows commercial grows, but only for medical marijuana.

As our Riverside marijuana cultivation lawyers know, pesticides are just one part of a more complicated web of regulations and guidelines necessary for cultivators to operate in compliance. Cultivators must be in compliance with waste disposal regulations, including pesticides, herbicides, irrigation runoff, soil disposal, erosion control, drainage features, chemicals, etc. They must use weighing and measuring devices that meet strict standards. Indoor grows must follow numerous building regulations. Even matters of water supply are under tight scrutiny, such as water suppliers, water diversion, irrigation, groundwater extraction, water discharge, with oversight coming from the Department of Fish and Wildlife and State Water Resources Control Board. Our skilled lawyers can guide your cultivation business through all of these issues and much more.

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:

What Are the Marijuana Laws in Your California City?, Jan. 3, 2018, Orange County Register

More Blog Entries:

Cannabis Cultivators Scouring Legal Ways to Grow, Feb. 4, 2017, Cannabis Law Group

with a recent 4-3 vote that put a nail in the coffin for residents hoping to one day be able to legally purchase cannabis in their city. According to The Press-Enterprise, council’s decision effectively bans dispensaries, commercial cultivation, and any outdoor grow sites. Medical marijuana dispensaries were already banned by the city in 2007, and an intensive law enforcement strategy has kept illegal dispensaries at bay. Cannabis testing will, however, be permitted.

The tight vote is illustrative of how divided the city is over the issue. Riverside County was one that supported Proposition 64 by about 42,000 votes. Yet the county has banned cultivation, manufacturing, and retail, with individual cities also enforcing their own similar bans. When residents vote one way and their representatives vote in the opposite manner, it truly flies in the face of the will of the people. Try as they might, the city and county governments do not have the power to ban everything, though, no matter how many scare tactics they use to justify their agenda. Our Riverside marijuana business attorneys are familiar with all local, state, and federal laws regarding cannabis. As such, we can explain that Riverside is only permitted to ban certain marijuana activities under state law. Prop 64 stills allows adults 21 years and older to cultivate up to six plants indoors in a locked area of a private residence. They can process, possess, transport, or even give away limited quantities of cannabis (28.5 grams of marijuana or 8 grams of concentrates). Local governments can still implement regulations, but they cannot outright ban any of these activities.

City and local bans have created what are known as “pot deserts” throughout California, a term coined for areas that are 60 miles or more away from the nearest legal dispensary. Nearly 40 percent of the state falls into such a category. For those who perceive cannabis as a nuisance, this design is certainly intentional. Many, however, depend on cannabis to treat a variety of conditions, such as PTSD, Alzheimer’s Disease, as an alternative to opioids, and, yes, some people use it as a way to relax and have fun. Not everyone can grow the plant on their own, and some require it be processed in a specific way to best treat their condition. It’s a shame that the misconceptions of some are preventing so many from fully benefitting from statewide legalization.

All hope if not lost for Riverside residents, though. The county board of supervisors and planning commission are reviewing proposed regulations for cannabis commerce in the unincorporated communities in the county. If implemented, such provisions would potentially give Riverside residents easier access to dispensaries despite bans within city limits. Our legal team will be keeping a close watch on these developments with great anticipation. Our skilled marijuana business lawyers will be ready to help prepare local entrepreneurs for likely guideline they will be forced to adhere to, such as limitations on land size for cultivation, odor control, security, energy supplies, packaging, and a variety of regulations one might not even consider.

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:

Riverside County is Considering These Rules for Cannabis in Unincorporated Areas, April 9, 2018, By Jeff Horseman, The Press-Enterprise

More Blog Entries:

Unincorporated Areas of Riverside County Might Get Marijuana Businesses, March 31, 2018, Cannabis Law Group

The Napa Planning Commission recently endorsed reducing the distance a cannabis business can set up shop to 600 feet from a school or place where children congregate, and even recommended easing up on that rule in instances where a natural barrier would prevent direct access, such as a waterway, according to Napa Valley Register.

For many people, change can be a very scary thing. Often, though, such fears are rooted in lack of education and the feeling of losing control. Once we see new ideas in action, we sometimes wonder why it took us so long to change in the first place, and realize we wouldn’t want things to go back. We see the effects of this sentiment throughout California. Since the passing of Proposition 64, there has been a great deal of caution on the part of cities to slow down change as much as possible. Prop 64 and the follow-up Medicinal and Adult-Use Cannabis Regulation and Safety Act very thoughtfully laid out guidelines that would allow marijuana businesses to begin sales of recreational cannabis, and, in the case of MAUCRSA, brought medical marijuana sales under the same umbrella of rules. These guidelines painstakingly established regulations that would encourage cannabis businesses to operate legally while easing fears of residents.Still, many municipalities were not appeased by the state guidelines and felt it necessary to set their own rules. Some banned sales and distribution of adult-use cannabis altogether. Others burdened businesses with added restrictions that were nearly impossible to work around. Such is the case in Napa, where city leaders originally prohibited marijuana businesses from opening shop less than 1,000 feet from a park, youth center, or school. This is 400 feet more than MAUCRSA Sec. 38 requires of licensed operations. While the decision was made with good intentions in mind, city officials learned quickly how wide an area 1,000 feet really is and how inhibitive it was to establishing a business. They also learned barriers, such as highways and the swampy area of the Napa River known as the Asylum Slough are preventative enough in keeping children away from cannabis businesses without an exact distance being enforced.

So far, two applications for marijuana businesses have been accepted by city leaders, but a third is pending, with this change in city law necessary in order to move forward. City Council would still need to vote on the planning commission’s recommendation. Our California marijuana business lawyers in Riverside are hopeful, though, for a positive outcome considering council members were the ones who tasked city officials to examine the possibility of shifting to the state minimum distance from youth centers. We are excited to see cities ease up on restrictions and recognize that everyone wants what is best for the city, its children, and its economic growth.

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:

Would-be Cannabis Sellers Seek Looser Boundaries in Napa, March 5, 2018, By Howard Yune, Napa Valley Register

More Blog Entries:

Students Who Need Medical Marijuana Deserve Easier Access, Feb. 28, 2018, Marijuana Business Lawyers Blog

of data about the cannabis industry. Our attorneys know one of the most difficult things about establishing any new industry is lack of concrete data. There can be a lot of growing pains as authorities and economic leaders gather a foundation of facts that help in making critical decisions about public safety, regulations, and taxation. This is particularly true when dealing with a controlled substance, like marijuana. Even though marijuana has been legal for medical purposes in California since the passing of the Compassionate Use Act of 1996, the switch to recreational legalization in the state as of Jan. 1 was a real game changer. MAUCRSA, Medicinal and Adult-Use Cannabis Regulations and Safety Act, was created to combine guidelines for medical marijuana with all the new stringent licensing rules for recreational cannabis, so all regulations lived under one umbrella.

The mission of the newly formed California Cannabis Authority is to “develop and manage a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource.” The more local governments that participate, the more compelling and significant the data will be for everyone who accesses it.

The group was created by the California State Association of Counties Finance Corp. The group started with San Luis Obispo, Humboldt, and Monterey Counties on board, with Mendocino following suit. According to a report by the Ukiah Daily Journal, the platform will make it easier to track tax payments, provide compliance information to county departments, and allow health officials to access product information. Our knowledgeable cannabis business attorneys in Riverside know this database is helpful for public officials, but also to the sustainability of cannabis businesses. Sharing this information can increase understanding between local governments and owners. Detailed tracking of finances, taxation, licensing and regulatory compliance could also pave the way for financial institutions to more easily work with cannabis-related businesses. Financial institutions must have an excessive amount of proof that a cannabis-related business is following all state guidelines before a relationship can form, so a database of this sort would be an excellent first step to easing this process significantly. In turn, this benefits the cannabis industry, which largely has to operate with cash. Any modern businessperson will tell you this is a gargantuan feat. The long-term stamina of the marijuana industry is dependent in part on allowing growers and distributors to move their platforms into the 21st century.

Cooperation between cannabis businesses and local governments is a positive thing, and the hope is we’ll soon see more of it in Southern California. Trust and communication are key factors to success going forward, which is why our marijuana attorneys work with cannabis businesses to establish a business framework that incorporates regulatory considerations and financial viability. We want to see your business start off on the right foot and continue to grow into the future.

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

Additional Resources:

California Cannabis Authority (CCA), California State Association of Counties

More Blog Entries:

Cash-Only System Tough on Marijuana Businesses When Paying Taxes, March 27, 2018, Cannabis Law Group

banning) marijuana businesses, growing operations, home cultivation, testing, sales, manufacturing and distribution. That same divide is reflected in the Riverside County Board of Supervisors in how to handle regulations in unincorporated parts of the county. But it looks like after a recent vote, the board will be moving forward on its own with those regulations, while also forgoing a tax ballot initiative in November, according to an article from The Press-Enterprise.

As our marijuana attorneys can explain, even though Proposition 64 passed in November 2016, and adult-use sales were permitted beginning Jan. 1, 2018, it did not mean an automatic free-for-all everywhere in California. The Medicinal and Adult-Use Cannabis Regulation and Safety Act was voted into place by state legislators in June 2017 to streamline the existing Compassionate Use Act of 1996 with the incoming recreational marijuana laws. MAUCRSA Section 18-26032(a)(2) outlines that the actions of marijuana businesses “are not unlawful under state law” so long as they are “permitted pursuant to local authorization, license, or permit issued by the local jurisdiction, if any.”Though this system allows local governments to retain control and make what they believe to be the best choices for their jurisdiction, it’s also leading to a lot of confusion among residents and business owners. Not to mention it leaves the door open for the continued propagation of myths and stereotypes about the marijuana industry to take root in these well-meaning but often misguided city-by-city debates. The confusion is heightened for what to do about the unincorporated areas that do not fall under the jurisdiction of a city, which is where county officials step in.

In Riverside County, cultivation has been illegal in the unincorporated areas under Ordinance No. 925, which passed the Board of Supervisors more than a year before Prop 64 went up for a vote. The ordinance allowed some exceptions for medical marijuana, with a limit of 12 plants that must be kept on the property of a qualified patient or their primary caregiver. But the recent decision by the board paves a path to set up regulations to negate the ordinance. One board member said this route made more sense than putting the measure up for a county-wide vote since the unincorporated areas contain only 379,000 of the 2.4 million residents in Riverside County. The board is opting instead to work directly with developers to set up agreements, including working out payments to pay for added law enforcement.

Our Riverside marijuana business lawyers find it refreshing to see decisive action being taken, especially since the possibility of legalized cultivation has been in the works for some time. An ad-hoc committee was established back in August of last year to start creating a regulatory structure for a pot economy in the county. We hope to see the county put some business-conscious rules in place that encourage a robust and legal marketplace sooner rather than later.

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:

Marijuana Regulations in Focus at Riverside Supervisors Meeting, March 19, 2018, KESQ3 News

More Blog Entries:

Riverside County Sheriff Still Cracking Down on Marijuana Grow Operations, May 11, 2015, Cannabis Law Group

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

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

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

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

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

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

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

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

Additional Resources:

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

More Blog Entries:

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

, Calif., was forced to shutter its doors for good.

For years, the owner of the collective in question pushed for Upland to lift its ban against medical marijuana. But the city has repeatedly fought back, working aggressively to close illegal dispensaries. Upland spent roughly $4.5 million on legal fees since 2014 and closed 24 illegal operations along the way, according to an article from the Daily Bulletin.

This particular owner, though, was characterized as a thorn in the city’s side throughout the process. He helped lead the charge in getting Measure U on the city’s November 2016 ballot, which was designed to ease up restrictions and pave the way for three medical dispensaries in Upland.

He assisted in collecting signatures and fighting tough legal battles to get the measure on the ballot. The California Cannabis Coalition took the matter all the way up to the California Supreme Court, which ruled the city must put Measure U up to vote in a special election. However despite all those efforts, the voters of Upland did not get on board, voting down the measure.To add extra salt in the wound, voters passed Measure E in June 2017, which granted Upland officials the power to ban most cannabis-related activity.

Our Riverside marijuana dispensary attorneys admire the efforts of this owner and the California Cannabis Coalition to fight for marijuana access for patients and residents of Upland. We know the benefits dispensaries, like the ones that closed in Upland, brought those who depended on medical cannabis, as well as those who had hopes of more access after the passing of Proposition 64, which opened the gates for recreational marijuana in the state. Cities throughout California have begun the process of putting guidelines in place and screening applications for commercial marijuana businesses, while other cities, like Upland, have established citywide bans.

We also know it’s far better for marijuana businesses to work with local and state governments rather than against them in order to minimize damages and optimize success. Our Riverside attorneys are keeping a close eye on ordinances being passed throughout Southern California in the wake of the Adult Use of Marijuana Act as well as all of the restrictions surrounding medical sales and use.

We are well-equipped to guide you in choosing a location and establishing a collective the proper way to ensure success under the evolving laws. We can help you get the proper licenses, set up a business plan, or defend you should you find yourself in violation of the law. We also will keep you informed on the latest happenings on the federal level, where the future of the marijuana industry is much less certain under the current administration.

Meanwhile, the Upland owner agreed to shut down his dispensary Jan. 1 and pay the city $100,000 in exchange for the removal of two citations against him. He also agreed not to open and establishment at that location or anywhere else in the city in the future.

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

Additional Resources:

Upland Strikes Pact to Shutter Illegal Marijuana Dispensary, $100,000 Settlement, Dec. 24, 2017, By Liset Marquez, Inland Valley Daily Bulletin

More Blog Entries:

Cannabis Businesses Could be the Next Great American Industry, May 23, 2017, L.A. Marijuana Lawyer Blog

This meant that, in some cities, there would be no medical marijuana allowed and in others there would be. It also means that there were varying levels of regulations with respect to cultivation distribution, and sale or delivery. When the state decided it wanted to change this, there were varying proposals. In the proposal that ultimately was passed into law, a single agency was created to regulate medical marijuana. There were competing proposals that would have given the various regulatory functions to an already existing agency, but that proposal was not successful for a variety of reasons. The legislature dealing with medical marijuana is known as the Medical Cannabis Regulations and Safety Act (MCRSA).

However, once the enabling act for the marijuana agency was passed, there was still a lot of work to be done on drafting the actual regulations that the new agency was to be enforcing. This all changed again when Proposition 64, which is called the Adult Use of Marijuana Act (AUMA), was passed into law by the voters. This law, as everybody knows, allowed for adults to be able to recreationally use marijuana. However, this law came with its own set of regulations, which meant there were regulations for medical marijuana, and there would be a separate set of regulations for recreational use marijuana.

As our Riverside medical marijuana attorneys can explain, the legislature has been trying to streamline this process for both recreational and medical marijuana and, to that end, the governor has just passed a bill that is designed to combine the regulatory authority and to make a single source of laws for both medical and recreational marijuana.

This new law that was just passed is known as the Medical and Adult Use of Cannabis Regulation and Safety Act (MAUSCRSA) and is designed to combine the regulations under MCRSA and AUMA into a single set of laws that will control both sides of the marijuana industry in California. Both MCRSA and AUMA have requirements that the state regulate the sale of marijuana by January 2018. This new MAUCRSA Act will include the regulation of both medical and recreational use of marijuana, as discussed in a recent article East Bay Express.

There are many different laws and cannabis industry regulations in the new bill. For example, all products that leave a dispensary must be contained in an opaque plastic bag. This change will actually shift the regulation of industrial hemp back to Department of Food and Agriculture, so it can be handled used like any other income-generating crop. When growing any marijuana, there is sure to be a need for large amounts of water, and this can be a problem as we are constantly in a state of drought.

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

Additional Resources:

California Took a Big Step Closer to Regulating the Cannabis Industry, July 5, 2017, BY Nate Sheildlower, East Bay Express

More Blog Entries: Report: Colorado Marijuana Laws May Not be Safe, Feb. 5, 2017, L.A. Marijuana Lawyer Blog

This means that for the time being, medical marijuana dispensaries are the only legal way to buy marijuana in the state. However, as discussed in a recent news article from The Daily Chronic, medical marijuana shops will largely become recreational marijuana shops, and this is why there are many more dispensaries opening up throughout the state in anticipation of the increasing market for cannabis products. This includes flowers, high-end concentrates like shatter and wax, edibles and tinctures, and even skin creams and bath beads. Much of this is because of the changing public perception and acceptance of marijuana in the past few decades. While we have seen that the majority of state residents now support legalizing marijuana, as they already did, it was not just voters that have begun to see marijuana differently. For the first time in history, New York Stock Exchange (NYSE) has approved a cannabis company to have its shares actively traded on the public market.

There is also a move to the online marketplace for marijuana. As marijuana is becoming legalized for recreational use in more states, companies are turning to an online merchant program, as well as on-demand delivery apps for smart phones. There will surely be more improvements to the delivery of marijuana, as the cannabis business has passed $5 billion in annual sales.

However, as the article mentions, there is some fear that the current presidential administration and the justice department will make things difficult once again for those in the industry, but that is a chance many seem willing to take, as there are billions of dollars at stake. There are also a lot of American jobs created, so that is an argument those in the industry are making as to why the federal government should not do a marijuana crackdown, as suggested by the president and the attorney general.

One thing you can do to minimize the risk of things going wrong is to speak with an experienced marijuana business attorney in Riverside, so you can make sure you are doing everything you can to stay out of trouble. While some are hesitant to spend any money on legal counsel with a new business, it is often much cheaper in the long run to make sure things are done right from the beginning instead of getting in trouble and then having to do anything possible to get out of trouble. There is also the chance of federal criminal charges if the attorney general does order the U.S. Drug Enforcement Administration (DEA) to start conducting raids again. This is certainly something you want to avoid. There are also many complications with respect to federal banking regulations, and you want to make sure your business is in full compliance, so you are not risking your assets being seized and your accounts being frozen.

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

Additional Resources: Dispensaries and the New Legal Niches of Marijuana in California, May 12, 2017, By William Smith, The Daily Chronic

More Blog Entries: Marijuana Sobriety Tests Still Elusive, Feb. 28, 2017, Marijuana Attorney Blog

CNN Money reported that a real estate investment trust that plans to buy buildings to lease to medical marijuana growers went public on Wall Street – and the response was less-than-encouraging. On the NYSE, the Innovative Industrial Properties stock shares were priced at $20, inched upward to $20.52, and then finished the day by 4 percent less than where they started. Granted, this is just one of a few companies related to the marijuana trade that is traded on any major exchange. So in some sense, the fact that it’s being traded at all is something of an accomplishment. Another company out Britain, GW Pharmaceuticals, is listed on Nasdaq, and its stock is actually up more than 55 percent this year. However in the U.S., this has proven more the exception than the rule.

Meanwhile, Bloomberg Markets reports that a company called ICC International Cannabis Corp. debuted its first day on the Canadian stock market and closed 356 percent higher than where it started. The CEO of ICC, a company out of Uruguay, has called the Canadian market “perfect” for marijuana companies. The entire country is slated to legalize the use of recreational marijuana next year. If that event occurs on the timeline expected, there will be an estimated 4 million legal recreational users in Canada by 2021. That means there will be a potential for $4.5 billion in annual sales. Plus, it doesn’t hurt that legality at the federal level makes it a much more attractive option to investors.

In the U.S., both medical marijuana and recreational marijuana is illegal at the federal level under the U.S. Controlled Substances Act. It’s scheduled as a Class I narcotic, meaning it is considered to have no redeemable value as medicine and be highly addictive. This of course runs contrary to science and statistics, but our marijuana lawyers know that hasn’t seemed to stop the Drug Enforcement Administration in its refusal to budge on the issue as recently as October.

The fact that the drug is still illegal by federal law – and that President-Elect Donald Trump has put in place cabinet members who are decidedly anti-marijuana – has had a chilling effect on investments. This is almost certainly why stocks of ICC didn’t fare well.

Not that industry is completely stagnant. Most marijuana stocks in the U.S. are traded in a manner that is “over-the-counter,” and then tend to have silly names and ticker symbols (i.e., BUDZ, GrowLife, Pineapple Express, etc.). But this latest push from Innovative Industrial Properties was part of an effort to carve out a more serious niche. It currently has $67 million in assets, and the plan is to buy properties in states with legal marijuana and lease them to companies that cultivate, manufacture and distribute marijuana. At this point, though, it only has one deal to buy a property in New York state, and it doesn’t have any revenue or profits.

Meanwhile, Canadian investors and traders say the expectations for the industry are extremely high. There, the federal government’s Task Force on Marijuana Legalization and Regulation is due to deliver a report on national regulation early next year.

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 stock IPO goes up in smoke, Dec. 1, 2016, By Paul R. La Monica, CNN Money

More Blog Entries:

Workplace Prohibitions on Marijuana Still in Effect Despite Legalization, Nov. 23, 2016, Riverside Marijuana Lawyer Blog