business entrepreneurs.

Many in California have been in the marijuana industry for years on the medical side of things. California was the first state to legalize medical marijuana with the Compassionate Use Act of 1996, also known as Proposition 215.

Still, with the passing of Proposition 64, allowing adult use of recreational marijuana Jan. 1, and its steady rollout in areas of California, many new businesses have been eager to join the marketplace. Sometimes too eager.In Ventura County, two men were recently arrested on allegations of running an illegal marijuana dispensary. Marijuana was allegedly being peddled out of a smoke shop in Port Hueneme owned by one of the suspects. Police claim a nearby post-traumatic stress counseling facility was being used for storage.

According to city police, eight pounds of marijuana and $2,000 were confiscated from the premises.

In an ironic twist of fate, just 10 days after the arrests, the Port Hueneme City Council passed an ordinance that would make it legal to operate medical and recreational marijuana dispensaries in the city.

Cities in California have the right to determine whether they will participate in statewide legalization efforts, with some like Port Hueneme joining later than others. This has caused confusion and a restlessness among some marijuana business owners who are sometimes willing to take great risks to join in the burgeoning marketplace, regardless of local laws.

The ordinance in Port Hueneme of course would not have made any dispensary immediately legal, so it would not have been helpful to the suspects in this case. It still would be mandatory to obtain the proper licenses from the city as well as the state and to be in compliance with all regulations. But it is one step closer to making it legal to sell and obtain marijuana in regions where there is clearly a demand.

Our marijuana defense lawyers in Los Angeles know all too well it can take time to go through the application process and make sure the business meets all regulations and guidelines put in place by local and state governments. And with Los Angeles only recently accepting applications for dispensaries and other related businesses, we don’t want to see anyone end up arrested when we are so close to opening legal operations in the city.

That’s why we help cannabis businesses with all of the necessary steps to set up shop. Having an expert like one of ours on your side will ease your transition to compliance. The cost of operating outside of the law is too high to risk yourself and your business.

Our team is also experienced in criminal defense should you find yourself in an unfavorable situation with law enforcement. We are prepared to defend clients who have been charged for illegal possession for use and sale. as well as cultivation and transportation violations. In addition to Los Angeles, we help clients in San Bernadino, Orange County, San Diego and Riverside.

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

Additional Resources:

Pot Dispensary Found in Port Hueneme Weeks Before It Becomes Legal, Dec. 23, 2017, By Megan Diskin, VC Star

Other Blog Entries:

Report: California Arrested 500k People in 10 Years for Marijuana, Sept. 5, 2016, L.A. Marijuana Arrest Attorney Blog

California, the first state to legalize medical marijuana in 1996, has legalized recreational sales and use as of the beginning of the year thanks to the Adult Use of Marijuana Act.

Our legal team at the Cannabis Law Group of Orange County is closely familiar with the regulations necessary to make such legalization possible, and the many variations of permits and guidelines required to operate from city to city, county to county, and of course, state to state, with considerations for the bans that still exist on the federal level.

Now Massachusetts is joining the great state of California on the path to recreational marijuana legalization with a new draft of cannabis regulations being approved by the state’s Cannabis Control Commission. Voters passed Question 4 in 2016, and An Act to Ensure Safe Access to Marijuana was signed into law by the governor of Massachusetts in summer of 2017.While the regulations are not final, some were given preliminary approval during the recent vote. The more than 100-page set of regulations will have to be discussed at public hearings before final approval, due by March 15.

If everything goes as planned, commercial cannabis sales are set to rollout in the state July 1.

According to an article from the Associated Press, there were several hot-button issues in the commission’s discussions of the regulations, such as:

• where to allow social marijuana use and how to regulate it,
• how to encourage diversity in the industry,
• rules for home delivery, and
• challenges regarding research facilities.

The commission hopes diversity efforts would help lift up economically struggling areas as well as minority groups who historically have frequently found themselves as targets of anti-drug campaigns.

For home delivery, a proposed rule would require drivers to check ID, confirm the recipient is 21 or older, and obtain a signature. A marijuana advocacy group in the state is seeking to remove the signature portion of the rule. Overall, with a few such exceptions, the group called the proposed regulations sensible and strong.

As for research facilities, the commission would like to see any human testing first approved by an institutional review board. They would need a license that allowed them to purchase and cultivate cannabis that would differ from those seeking sales. Test subjects would have to be at least 21 years of age, if the rule goes through.

While Massachusetts is just beginning to iron out these commercial marijuana regulations, California is neck deep in the process. The state government put their rules into place and, like Massachusetts, gave power to individual cities to establish their own guidelines or bans as they saw fit. This can be a challenging, but rewarding, time for those seeking to open a new marijuana business or to expand medical-focused operations to recreational.

With the help of an Orange County marijuana regulation attorney, we do the heavy lifting sorting through the numerous rules and regulations. This allows you to focus your efforts on running your business with peace of mind knowing that you are in compliance.

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

Additional Resources:

Massachusetts Panel OKs Draft Cannabis Regulations, Dec. 21, 2017, The Associated Press

More Blog Entries:

Marijuana Wins Big on Election Night, Nov. 10, 2016, L.A. Marijuana Lawyer Blog

According to an article from Forbes, California cannabis business owners are projected to make $5.2 billion in revenue in 2018, with about $1 billion in tax revenue lining state coffers.

But for every new road that is paved on the way to full legalization, there are numerous bumps along the road. California business owners expect plenty of marijuana regulations, with local governments in the state being given a great deal of jurisdiction over whether or not to allow commercial marijuana production and sales.These marijuana regulations and many others were recently discussed during the Marijuana Business Convention & Expo (MJBizCon), according to the Sacramento Bee. Topics included local ordinances, mandates to test and track marijuana, packaging, and potency standards (such as serving sizes).

New regulations have also increased oversight through licenses and fees, as well as recommendations for inspections and advertising, speakers at the event said. All of that in addition to California state and local taxes of up to 45 percent have many in the industry concerned about the potential detrimental effects on profit margins.

Also on the minds of many at the convention was the issue of overproduction in California, which could continue to increase now that the state has decided not to cap growing sites at one acre. The California Growers Association says this disadvantages smaller farms. It also raises questions about where exactly the crops are traveling, with some estimates claiming only one-sixth of marijuana produced on California farms is actually consumed in the state.

Some in the cannabis industry are concerned these regulations and taxes make honest businesses vulnerable to unfair competition with the black market. While legitimate businesses are burdened with red tape and costly tests and reports, businesses operating illegally can disrupt the market. Panel members at the conference said they are hopeful, however, that as sales numbers start coming in and negative perception is quelled, regulations will ease up at least at the local level.

Once a company can get beyond those challenges, they may find profits are difficult to manage when a vast majority of banks will not take on known marijuana business clients due to the risk of losing their federal charter, according to the Forbes report. This is costing businesses extra money in safes and security measures. There are workarounds on the horizon, including systems and programs that keep banks in compliance with the 2014 Cole Memorandum, which was intended to protect cannabis companies who follow state laws from federal prosecution.

However this protection is not guaranteed. Everyone along the chain of California marijuana businesses feels a target on their back as the federal government continually threatens to crack down on states by enforcing national bans on cannabis. Speakers at the convention pointed out that comments by U.S. Attorney General Jeff Sessions have caused large companies to be cautious about investing.

Such marijuana regulations and burdens can make starting a cannabis business very costly. Even worse are the fines that can follow should these regulations not be implemented. Nevertheless, in the face of all of these obstacles, the sheer volume of potential customers, and thus profits, has many clamoring to join the marketplace.

With the proper guidance and full understanding of the marijuana business in California, there is plenty of room to thrive and profit. This is why is it essential to talk to a marijuana business attorney, who will make sure all regulations are addressed in the most cost-effective way possible, while avoiding future penalties that could prove very costly, or worse, ruin your business altogether.

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 regulations could snuff out profits for marijuana businesses, Nov. 21, 2017, By Brad Branan, The Sacramento Bee

California Weed Entrepreneurs Will Make $5.2B in 2018 With Almost No Banks To Put It In, Nov. 26, 2017, By Julie Weed, Forbes.com

Jeff Sessions Hints at a Coming Crackdown on Recreational Weed, Nov. 30, 2017, By Adam K. Raymond, New York Magazine

Proposition 64, Nov. 8, 2016, Prepared by Attorney General, ca.gov

More Blog Entries:

New California Marijuana Regulations Finally Released, Nov. 26, 2017, Orange County Marijuana Business Attorney Blog

How Delivery Services Are Adapting Their Business Models Marijuana delivery services in California have taken many creative approaches to the question of how to develop a business strategy around delivery restrictions and regulations. TechCrunch reports that Eaze – a marijuana delivery service – has recently raised $27 million in Series B financing after spending $24.5 million in venture capital. This large influx of cash is supporting an aggressive growth strategy. When questioned about the wisdom of spending $1 million per month in cash, CEO Jim Patterson responded that the company is investing in growth before the imminent legalization of sales of recreational marijuana. Patterson also dismissed concerns over large delivery logistics companies, such as Amazon, getting into the marijuana delivery market, citing the complications of marijuana regulations at the federal level. Delivery services have particular business opportunities in geographic areas where marijuana sales are only permitted via delivery. According to the North Bay Business Journal, Marin County is considering an ordinance that would allow delivery-only medical cannabis businesses to operate within the county. Other cannabis businesses are prohibited from the county entirely. This, too, raises larger issues of how delivery services can sustain both short and long-term business growth. In developing successful business plan, the first and most important step is to ensure compliance with all state, county, city, and other local regulations. NBC San Diego reports that thousands of unlicensed delivery services are learning this lesson the hard way. After spending the past eighteen months targeting unlicensed retail marijuana stores, the San Diego Police Department’s Narcotics Unit has now shifting its focus to unlicensed marijuana delivery services. NBC’s investigation revealed that less than 5% of the San Diego marijuana delivery services it found were properly licensed. Now, those business owners face criminal charges, seizure of their assets, fines, and other costly penalties. Successful businesses must comply with myriad regulations at the state and local levels while avoiding federal prosecutions. They must also compete with larger retailers and delivery logistics companies, as well as new and developing technology in the sector.An Orange County cannabis business licensing lawyer can help marijuana delivery services stay compliant with upcoming changes in recreational use laws, while also creating business plans that will sustain profitable operations. 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 to Ban Legal Cannabis Delivery By Robot, Drone, Bicycle or Boat, September 14, 2017, by Janet Burns, Forbes More Blog Entries: California: No Marijuana Delivery With Drones, September 17, 2017, by Cannabis Law Group

In the midst of feverish work and complicated legal structures, the City of Los Angeles is garnering worldwide interest in the efficacy of its new cannabis regulations. Learn more about the system that could save taxpayers millions of dollars in regulatory costs and ensure a smooth transition into legal sales of recreational marijuana. The L.A. Plan According to Forbes, Los Angeles voters overwhelmingly passed Proposition M in March 2017. The legislation, which was carefully crafted with input and support from the cannabis industry, utilizes a four-pronged approach to create enforceable and stable regulations for the cannabis industry. First, it emphasizes sensible regulation which addresses the realities of the cannabis industry. This became a priority after advocates witnessed the “disaster” of the old Prop D, which ineffectively regulated medical marijuana without meeting the needs of the industry. Second, Prop M creates a licensing mechanism, enabling cannabis entrepreneurs to obtain physical business licenses for the operation and ownership of recreational cannabis businesses. Third, the legislation takes a pragmatic approach to the taxation of cannabis operations. Business taxes – currently the lowest in the nation at 1% to 2% – will be gradually raised to more sustainable rates. At the same time, taxes for marijuana collectives will be slightly lowered from 6% to 5%, in order to level the competitive playing field with marijuana cultivators and distributors. And finally, the fourth prong of Proposition M focuses on enforcement, which is made easier and more cost-effective by clear guidelines in the other provisions of Proposition M. Why Proposition M is Making a Splash The highly researched and developed legislation is getting attention worldwide, as other states and nations consider the best regulatory mechanisms for marijuana businesses. The Southern California Coalition reports that it has received inquiries from legislators across the United States and North America, and even Europe. In developing the mechanisms of Proposition M, enforcement was specifically designed as the last element and legislative priority. This is because effective enforcement can only be made after clear laws are in place. Federal, state, and local law enforcement agencies have spent billions of dollars in recent decades in an attempt to enforce marijuana laws. Unfortunately, because the laws are unclear, these resources are often wasted entirely. Cases are dismissed because of conflicts between state and federal law. Confusing technicalities make it difficult for officers to know whom to arrest and what evidence to seize. Prosecutors and defense attorneys argue over these legal technicalities in court, effectively wasting more taxpayers dollars on unclear regulations. All of these problems could be avoided by having clear guidelines to enforce without the need for excessive or wasted police raids or endless court battles. An experienced Los Angeles cannabis business licensing lawyer can help business owners ensure they are in compliance with all federal, state and local regulations. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: A California Plan to Save Millions on Cannabis Regulation Is Getting Props Worldwide, June 7, 2017, by Janet Burns, Forbes More Blog Entries: Preparing the California Cannabis Industry for Recreational Use Regulations, July 9, 2017 by Cannabis Law Group