California business lawyers - Cannabis Law Group

25 Cities Sue California to Block Unfettered Marijuana Delivery

Cannabis Law Group — Fri, 05 Apr 2019 23:58:48 GMT

More than two dozen cities that restrict legal cannabis sales are suing California over the issue of legal pot delivery. Los Angeles marijuana delivery business attorneys are paying close attention to this litigation, wherein plaintiff cities argue that by allowing home deliveries in cities where it is restricted, the state is breaking key provisions of Prop. 64, the legislation that opened the door to legalized recreational marijuana in California.

The California Bureau of Cannabis Control and its chief are named defendants in the case, which was filed in the Fresno County Superior Court. The dispute over marijuana deliveries comes shortly after the regulation adopted by state bureau earlier this year, holding that businesses licensed by the state have permission to deliver marijuana – even in municipalities that have expressly banned the operation of marijuana retail locations.

Cities Make the Case for Local Authority to Restrict Cannabis Deliveries

Among the most significant concerns cited about a free-for-all on cannabis home delivery:

Public safety risks, particularly robbery, given the cash-only model of legal marijuana sales;
An influx of illicit marijuana delivery/sales that may be difficult for law enforcement to identify/shut down.

City officials point to the specific provision of Prop. 64 that was woven into the statute with the purpose of appeasing police chiefs and city leaders: That which offers significant local control of California marijuana sales. Plaintiff asserts local control was baked into the ballot proposition with the express intent of allowing local governments to regulate activities related to marijuana sales, and that the state lacks authority to insist on allowing cannabis deliveries against local ordinances because state law guarantees local veto power within those respective jurisdictions.

Approximately 80 percent of the state’s 482 cities have barred cannabis retailers from either setting up shop or selling the drug for recreational purposes.

However, not all plaintiff cities have prohibited recreational sales. Instead, they want assurance that the only marijuana delivery services allowed to operate in their district will be those that are not only state-approved, but locally-screened and licensed. For example, Beverly Hills prohibits marijuana retailers, but restricts deliveries to medical cannabis patients with a valid prescription.

In Riverside, city leaders say it should be local leaders with authority to regulate if deliveries can be made and by whom in order to protect residents’ quality of life.

Plaintiffs in the case aren’t collectively opposed to allowing deliveries to continue in cities where the practice is sanctioned, but the state’s updated policy on marijuana delivery goes back on the promise that Prop. 64 made to cities that went neutral on the issue.

CA Cannabis Allies Insist Home Marijuana Delivery Safer, Aligned With Voter Intent

Ongoing state efforts to expand retail sales are in jeopardy if the cities are victorious, and Los Angeles marijuana delivery lawyers know this could have big implications for dispensaries throughout the state. The retail marijuana market in California last year was estimated to be worth approximately $1 billion.

A spokesman for the California Cannabis Industry Association stated the cities’ success in this effort would strip consumers throughout the state of their right to a legal product and would force retail locations far and wide to fold. For many consumers, delivery is the only realistic way they can access the product – particularly in areas that prohibit storefront sales.

Proponents of statewide legal deliveries point out that if cities are going to deprive people in their communities of the only realistically lawful way to purchase cannabis, those communities are going to lose two-fold:

Consumers will be driven to the black market, which has a far higher crime risk than legal sales by delivery;
Local and state taxpayers miss out on potential revenue.

State regulators insist that allowing a means for safe, legal home delivery by vetted companies, they are following the intent of the law, and assert that while cities do have the authority to govern commercial marijuana sales in their jurisdiction, they cannot impose their authority to limit general consumer access.

Los Angeles marijuana home delivery attorneys recognize the significant of this lawsuit goes beyond this issue and represents the first time Prop. 64 has faced a real legal challenge in California. It’s certainly not the first showdown over interpretation of the law or who has jurisdiction over what, but this one has the potential to make it to the California Supreme Court.

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

Additional Resources:

25 cities suing California over marijuana policy that allows unrestricted delivery statewide, April 5, 2019, Associated Press

More Blog Entries:

Can California Cannabis Market Avoid Abundance Crash-and-Burn?, March 19, 2019, Los Angeles Marijuana Lawyer Blog

Upland Shuts Down Illegal Marijuana Dispensaries

Cannabis Law Group — Sat, 06 Jan 2018 14:34:52 GMT

On the same day many recreational marijuana dispensaries in California opened for business, one medical collective in Upland

, 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

Startup Capital Flows as Legal Marijuana Businesses Prepare to Do Business in California

Cannabis Law Group — Fri, 15 Sep 2017 12:40:01 GMT

California is poised to soon experience a Green Rush. Like its history of industry formed around the Gold Rush, California entrepreneurs are seeking ways to capitalize on the expansive market created by the legalization of recreational marijuana use. Stat News reports that investors are “pouring tens of millions of dollars” into the budding cannabis industry.

Marijuana Technologies Abound It is not entirely surprising that much of this startup capital comes from the technology industry. Experienced in the art of setting attainable goals to realize a profitable return on investment, venture capital firms have begun to fund a wide variety of marijuana-related technologies. From cannabis-infused skin patches to impaired driving indicators, to the “PotBot” (a “budtender” app which helps users find the perfect strain for their tastes and needs), the research and development is expansive. The sheer size of California’s economy leaved open the possibility for countless business opportunities. Just last year, Reuters reported that California had surpassed France to become the sixth-largest economy on Earth. California news outlets such as the Mercury News temper this finding with claims that the costs of living and doing business in California actually place doubt upon that figure, but the fact remains: California has a massive economy, and it’s about to get a lot bigger. Preliminary estimates place the California recreational cannabis industry at between $5 and $6.5 billion every year. Sustaining Business Growth Like the Gold Rush before it, it will be easy for the Green Rush economy to quickly dry up once the initial growth of recreational marijuana tapers off. Cannabis entrepreneurs who plan to sustain their business growth must have a plan to do so effectively. Attorneys, accountants, tax professionals, and business advisors can help owners achieve their goals by addressing a wide variety of needs.

What is your initial go-to-market strategy? How will that change in the year, two years, five years, and ten years after recreational business licenses are issued?
Does your business plan include investments in research and development? If not, how do you plan to expand business growth in the coming years?
What is your target market? How do you plan to corner that market? What can you offer that other cannabis businesses do not?
Are you prepared for rapidly-changing legal regulations? The regulatory environment for cannabis businesses in California is highly volatile. Business owners must be prepared to adapt to changes quickly and seek legal advice as necessary.
Will you be able to hold reserves of capital and inventory? If sudden regulatory changes temporarily suspended your business operations, would you have a backup plan to keep your business afloat?
How do you plan to manage banking and financial services? Federal regulations make it highly difficult for cannabis businesses to access traditional banking services. Carrying cash on hand can be a dangerous and difficult solution.

With successful business planning and adequate startup funding, new cannabis companies can capitalize on the business opportunities presented by California’s imminent sales of recreational marijuana. A cannabis business attorney can help cannabis entrepreneurs access capital, form strategic plans, and build a profitable business from the ground up. 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-name tech investors pour millions into marijuana – both medicinal and not, August 28, 2017 by Charles Piller, Stat News More Blog Entries: Preparing the California Cannabis Industry for Recreational Use Regulations, July 9, 2017, by Cannabis Law Group