The Department of Cannabis Control, managed by state officials, designated the funds be sent to 17 cities and counties where there are a disparate number of provisional marijuana business licenses (as opposed to full year licenses). As our Los Angeles marijuana business lawyers can explain, those provision licenses were intended to help quickly prop up the adult-use market, but the entire category was set to expire Jan. 1, 2022. That deadline has since been extended, allowing more municipalities time to kick-start the permitting process, while also meeting stringent environmental requirements.

The $100 million in grant money is intended to further accelerate progress – in turn squeezing out black market operators. The thinking goes that the more competitive, state-legal operations there are in a district, the fewer opportunities there will be for underground pot purveyors.

Applications to receive money through the Local Jurisdiction Assistance Grant Program, opened four months ago. Municipalities that were awarded the additional funding were those that had significant license processing backlogs. Funding is also available to implement social equity programs.

Goals for funding were outlined as followed:

• Hire or designate additional staff to help wade through the sizable workloads necessary to transition businesses into a well-regulated local market.
• Create streamlined license processing with dedicated IT systems.
• Complete thorough environmental assessments to ensure water is protected and energy is renewable.

Municipalities can use their funds in other ways, but they must be approved by the state. One example is in Long Beach, where part of the funds are going to be used on website design, technology updates and training.

Other California Cannabis Business Funding

In addition to this program, cannabis companies may be eligible for other non-profit funding to help bolster operations. For instance, nearly $30 million in was awarded to nearly 60 non-profits focused on addressing the fallout of the ill-conceived war on drugs. The state’s Department of Fish & Wildlife solicited proposals for a program aimed at helping small cannabis growers on environmental clean up and restoration.

Elsewhere in the country, there have been hundreds of millions of dollars in public-private funds designated for the promotion of social equity in the marijuana business market.

Cannabis Companies Generate Billions in Tax Revenue

Although such programs are generous, it’s important to note that the legal market in this country have generated billions for state governments. According to the Marijuana Policy Project, states with legal cannabis have generated $10.4 billion in state sales taxes since adult-use marijuana first hit the legal market in Washington State and Colorado in 2014. That figure includes the more than $3 billion+ generated in sales taxes last year.

Bottom line: States with legalized marijuana for adult sale are seeing substantial financial benefits, which can help to fuel education, construction, conservation, and community reinvestment. Ensuring communities that want to introduce a thriving legal cannabis market to do so is in the best economic interests of not only the businesses, but also the state and local governments.

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 Awards $100 Million To Support Local Marijuana Business Development, Jan. 7, 2022, By Kyle Jaeger, Marijuana Moment

More Blog Entries:

California Cannabis Companies Eye Tax Revolt, Dec. 15, 2021, California Marijuana Business Attorney Blog

Los Angeles marijuana criminal defense lawyers understand it comes down to the way marijuana trafficking investigations are so often initiated around the country: The ever-objective nose test.

To be fair, cannabis does have its own distinct olfactory properties. As many defense attorneys will tell you in states where the drug is still either banned entirely or restricted to card-carrying medical users, a sizable percentage of marijuana arrests begin with a traffic stop, detection of that aroma and a warrantless vehicle search. (These searches often yield items unrelated, such as other narcotics, firearms, etc.)

Historically, it’s been difficult for marijuana defense lawyers to dispute an officer’s sense of smell, especially where marijuana was indeed later found.

But now, virtually all arrests stemming from that common scenario are going to be called into question, if a memo from one state attorney is correct.

State Attorney: No More Sniff-and-Search Arrests, Prosecutions

On July 1st, Florida law (which two years ago legalized medicinal marijuana) officially caught up with provisions of the 2018 U.S. Farm Bill requiring all states to adjust their statutes to align with the decriminalization of industrial hemp and low-THC CBD products (those containing less than 0.3 percent of the psychoactive THC). Outside of doctor-recommended use, the drug is still illegal under state law. Even in jurisdictions where it has been largely decriminalized, the smell of it still served as grounds for probable cause for conducting a vehicle search without a warrant.

The problem now? Marijuana smells just like hemp – which is fully legal. That unique odor is present not just in the leaves of both plants but also oils, edibles and other processed consumer goods.

Per the state prosecutor’s memo, the state “will no longer be able to prosecute any marijuana or THC oil cases without a test from an accredited lab indicating that the THC content is over 0.3 percent.”

A news article published by The Palm Beach Post characterized this directive as “devastating” to local marijuana trafficking cases.

In fact, the the sheriff of that county, which does have an accredited drug testing lab, instructed deputies to halt all marijuana drug arrests – at least until laboratory processes are established to make clear distinctions between marijuana and hemp. (At this time, they are not equipped to identify only the tiniest traces of THC, only whether its positive or negative presence.)

Even those narcotic-sniffing K-9 dogs? They’ll still be of use in other cases, including those involving other drugs. But where their noses detect pot? It’s pointless.

Furthermore, law enforcement officers were instructed to cease probable cause searches/arrests predicated on suspected cannabis-related offenses.

Public defenders across the state have begun the process of mass-filing motions to dismiss pending drug charges that fit this bill.

Does This Mean Anything for Californians?

Not exactly, though it’s worth noting if you plan to travel to South Florida anytime soon. Unlike Florida, California and half a dozen other states have legalized marijuana not just for medicinal but recreational use. By state law, possession of up to one ounce of cannabis is legal. When marijuana was first legalized in California, police associations throughout the state went through similar growing pains. As noted in a memo published by the California Police Officers Association, penned by a special investigations narcotics detective in Sacramento County, 11362.1 (c) of the Health and Safety Code makes it clear that all cannabis and related products that are lawful under state law are no longer considered the subject of valid search and seizure constituting the basis for detaining, searching or arresting someone. “The verbiage now dramatically effects the way we investigate marijuana crimes,” the detective wrote. Bottom line: If someone is at least 21 and in legal possession of marijuana as outlined in Proposition 64, the basis of a probable cause/search is no longer applicable. However, law enforcement can still technically make an arrest for marijuana possession – if a person isn’t just a recreational pot user or licensed business owner. That requires some reasonable suspicion/probable cause that the individual is growing/producing/selling/transporting/possessing marijuana outside the scope of Prop. 64. That, the officer noted, is no longer achieved with a simple smell test. 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:

With new hemp law, ‘sniff and search’ goes up in smoke, July 12, 2019, John Pacenti, The Palm Beach Post