would be difficult to tell. Thanks to some data analysis compiled by The Sacramento Bee, we can clearly see how local regulations have shaped the pot landscape in the state as a whole and how it is affecting people who live in more remote areas of California.

The report defined some regions of California as being “pot deserts” – areas where residents have to travel 60 miles or more to access legal marijuana at a licensed dispensary. An additional 29 percent have to drive 30 to 60 miles to the closest location. This disparity in cannabis access stems from the clause in Proposition 64 that allows local governments to establish their own set of recreational marijuana regulations or to ban sales altogether. While a majority of residents in the state clearly favor adult-use marijuana based on the 2016 vote, there is seemingly a desire among many districts to leave the actual growing, producing, and selling of the drug to other cities … cities far away from their own.From our years of experience, our Riverside recreational marijuana attorneys can say with certainty that much of this sentiment is rooted in outdated, outmoded, propaganda-riddled perspectives on marijuana. There’s a paranoia that expanding marijuana legalization in their towns will invite sketchy characters and create a seedy underbelly in their idyllic neighborhoods. Alas, by pumping the brakes on progress, they could be inviting the very thing they were afraid of right into their hometowns. Demand for marijuana, both medical and commercial, is increasing statewide as people learn more about it. By not providing a legal, regulated outlet for these people to access, local governments are making their communities vulnerable to black market sellers who very much still have a foothold in the state. The big cities are filling up with plenty of legal options for consumers to choose from, which could drive black market sellers to take advantage of these under-served pot deserts.

State Senator Ricardo Lara (D-Bell Gardens) recently introduced bill SB 1302 to try to allow delivery services to bring cannabis to these areas, giving a more practical option for patients who depend on medical marijuana as well as adult recreational users. The bill if passed into law would “prohibit a local jurisdiction from preventing delivery of cannabis or cannabis products on public roads, or to an address that is located within the jurisdictional boundaries of that local jurisdiction” so long as those involved in the delivery were in compliance with the Medicinal and Adult-Use Cannabis Regulation and Safety Act. Push-back from local governments is imminent, as well as overcoming the challenge of an extreme shortage of state-licensed delivery operations.

Our lawyers know the keystone to marijuana legalization is safe, affordable, and easy access to regulated cannabis. Any roadblocks give black market sellers room to grow, making it more difficult for licensed businesses to stay competitive. We hope state and local officials can quickly come to a compromise that allows cities to retain control, but also connects all of the voters of California with the marijuana they helped legalize. Perhaps in the process, those who are still in the dark about the benefits of marijuana will learn it’s not so bad after all.

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:

How Local Control is Creating Access Deserts in California, April 7, 2018, By Greg Zeman, Cannabis Now

More Blog Entries:

City-Level Marijuana Laws: Making Us Safer or Blocking Access?, March 13, 2017, Cannabis Law Group

Those in the marijuana industry have pushed for the sale of recreational use marijuana to be allowed in the same establishments that dispense medical marijuana. According to a recent news article from KTLA News 5, Governor Jerry Brown and several state representatives have proposed a law that would allow for the medical marijuana and recreational use marijuana to be legally sold at a single location. This is known as the co-location of marijuana sales.

As our Los Angeles marijuana business attorneys can explain, the reason those in the marijuana industry wanted co-location is because it will potentially reduce the cost of marijuana sales, as there will not be a need for redundant infrastructure. A spokesperson for the California Cannabis Industry Association who was interviewed as part of this article stated that co-location of medical marijuana and recreational use marijuana will be much more cost effective for those who operate medical marijuana retail shops.

It should be noted that there were some opposed to co-location, because the age to purchase marijuana for recreational use is 21, and medical marijuana is able to be sold to minors. They also argued that medical marijuana requires a doctor’s recommendation, and there is no such requirement for the sale of marijuana for recreational use.

With respect to the age requirement, it does not seem like that should be much of a problem. Anyone can walk into a grocery store, but only a person 21 or over can purchase alcohol. Additionally, everyone walking into a co-location establishment would be required to show a valid ID. If they are under 21, they would need a doctor’s recommendation. This would also address the issue with a doctor’s recommendation requirement. As we have seen in many other cases, those who are opposed to co-location, may simply be opposed to any sale of marijuana, whether we are talking about medical marijuana or recreational use marijuana.

One concern that is more relevant comes from those who already operate medical marijuana cooperatives who wish to help patients and are not primarily interested in profits. While we have come a long way since medical marijuana was first legalized in California more than 20 years ago, there are still many who are putting patients first. For them, one concern is that with the new taxes and increased focus on business and profits, low-income patients who depend on access to their much-needed medication will find themselves no longer able to afford it.

While this is certainly a realistic concern, there is also a lot that is being done to insure this doesn’t happen. For more information about how to structure your existing medical marijuana operation, you should speak with an experienced medical marijuana cooperative attorney as soon as possible.

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 Pot Shops Could Sell Both Recreational Weed and Medical Marijuana Under Proposal, June 12, 2017, KTLA News 5

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

The U.S. Court of Appeals for the Tenth Circuit reportedly took oral arguments in a case that consolidates several claims and argues the recreational marijuana law in Colorado violates U.S. racketeering and controlled substances law. Both Oklahoma and Nebraska joined the claim after the U.S. Supreme Court decided not to consider an earlier case they brought asserting Colorado’s pro-marijuana law was unconstitutional and illegally facilitated the industrialization of marijuana. The consolidated appeals also contain complaints from several county sheriffs offices as well as a horse ranch.

Plaintiffs assert that neighboring states have had to contend with federally-illegal substances crossing their borders, causing a strain on local law enforcement and other interested parties. The federal appellate court judges are now considering whether RICO or other federal statutes should have an impact on marijuana cultivation on properties (particularly those near Denver, where this case is being considered).

The attorney representing several marijuana businesses said he initially went into the matter believing the outcome would be a “slam dunk” in favor of his clients. However, following the oral arguments, he conceded it might be “more of a toss-up.”

Horse ranch plaintiff explained to the judges that the smell of the substance being grown nearby had resulted in property values plummeting. Additionally, he argued, construction of a green house on site also affected property values by obstructing the sight lines from his property.

As defendant’s attorney explained, if the justices ruled that the case should be remanded back to district court, it would result in opening the floodgates, making every dispensary in Tenth Circuit vulnerable to federal lawsuit under RICO laws.

For those unfamiliar, RICO stands for the Racketeer Influenced and Corrupt Organizations Act. It has been historically used to implicate fraudsters and crime families. It gives private individuals the right to sue “racketeers” whose actions damage their property or business. In this case, plaintiffs are asserting damage to their property values.

In effect, plaintiffs argue, the state has authorized breach of the U.S. Controlled Substances Act.

Another big reason for concern at this point is that this new presidential administration does not have a reputation of being kind to those with marijuana interests. In particular, the incoming U.S. attorney general Jeff Sessions has been extremely critical of legalized marijuana and of those who use the drug. As of right now, most marijuana dispensaries are leaning on the 2013 Cole Memo, in which the federal government outlined a road map for federal prosecutors to abide in states where marijuana is legal. Essentially, where state laws regulate the sale of marijuana, this was to be seen as a means of enforcement. But this memo did not legally solidify any protections, and it could just as easily be retracted by the new administration.

In the event the appellate court chooses not to send the case back to district court for trial, plaintiffs could appeal the matter to the U.S. Supreme Court. However, those involved say such a move would be unlikely.

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

Additional Resources:

Bid to take down Colorado marijuana laws revived in court, Jan. 17, 2017, By Alicia Wallace, The Cannabist

More Blog Entries:

Cannabis Business Licensing Woes in Portland Costing $22M/ Month, Jan. 18, 2017, L.A. Marijuana Lawyer Blog

Even prior to the election, industry analysis conducted by ArcView group and GreenWave Advisors tallied that the industry was worth somewhere between $4.8 billion and $5.4 billion in 2015, with projections that it would hit $6.5 billion to $6.7 billion this year. Both groups say the industry will surpass $20 billion nationally by 2020, while others, such as Marijuana Business Daily, is opining growth could be up to $40 billion over the next five years. Those estimates are only going up since the results of the November election, when eight states – including California – voting to legalize the drug in some capacity. Here, recreational use and possession is now permitted, and regulations are being worked out to determine the guidelines for production and sales.

Already, some individuals who got in early enough – when the field was still quite new and very risky – have struck a veritable gold mine. One entrepreneur in Denver opened a dispensary there in 2009 called Medicine Man. Now, several of his family members are on board, running nine businesses that employ over 100 workers in total. Employees at his country make anywhere from a starting salary of $13-an-hour, all the way up to six-figure positions for working in critical management roles.

The industry in general has some very unique problems and challenges to navigate in the course of bringing a black market into the light. It is still in its infancy and there will be growing pains. But for those individuals looking to hammer out a solid marijuana business plan, our experienced marijuana lawyers in L.A. can help. As many entrepreneurs recognize, every issue is actually an opportunity.

Still, both advocates and entrepreneurs watched closely as the U.S. Drug Enforcement Administration announced it wouldn’t alter marijuana’s current position as a Schedule I narcotic. That means that for now, the substance is still deemed illegal at the federal level. However, there were still 1 in 9 marijuana ballot initiatives that did pass in November. That means the marijuana industry is still going to grow pretty rapidly.

There does remain some uncertainty in so far as what a Trump administration will mean for the industry and how regulations will be handled. However, the political stakes to completely dismantle the industry at this point could not be higher. We’re talking about an industry that so far has created 150,000 jobs and is drumming up billions of dollars in revenues and tax dollars.

Last year, the legal marijuana industry in Colorado reportedly created 18,000 new full-time jobs and generated $2.4 billion in economic benefits. That’s just in one state. That figure also does not account for the other benefits, which include increased demands on local goods and services. For example, marijuana cultivation requires warehouse spaces and advanced lighting and irrigation systems. Marijuana retailers also rely on contractors, marijuana attorneys and book-keeping services. There are also nearby venues, such as bars and restaurants, that may benefit from having a dispensary in the community.

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

Additional Resources:

Weed business set to be one of fastest growing job generators in US, Dec. 2, 2016, By Kate Rogers, CNBC

More Blog Entries:

California Marijuana Law Erroneously Allows Tax-Free Marijuana Through 2017, Dec. 10, 2016, L.A. Marijuana Lawyer Blog

Unfortunately, no.

Although recreational use of the drug is now legal, the new law specifically holds that companies have the right to keep a drug- and alcohol-free workplace. They reserve the right to hang onto policies that disallow the use of marijuana by workers or prospective workers. Many employers in contact with cannabis advocacy group California NORML say they intend to keep their current drug screening policies, many of which do not allow the use of marijuana.

Companies say it’s not just that they are trying to be a stick in the mud. Those in human resources explain there are some legal concerns, first as far as federal law goes. Although California law now allows recreational and medicinal use, the federal government does not. The second concern stems from liability. A worker who is required to operate heavy machinery or be on high alert cannot be under the influence of any substance, including marijuana.

But drug testing for marijuana poses a lot of challenges that simply don’t exist for alcohol. What’s tricky about marijuana, as opposed to alcohol, is that one can drink alcohol on his or her off-time and not have it show up on any kind of drug test. However, marijuana remains in the bloodstream longer, which means a worker may be flagged for being a user of marijuana, even if he or she always comes to work completely sober. You can conduct an accurate roadside test for alcohol intoxication. The same is just not true for marijuana.

As noted by The Los Angeles Times, drug testing by employers really first gained steam in the 1980s during the Ronald Reagan era. That’s when federal workers were required to be screened as part of the president’s (now failed) War on Drugs. Other employers soon followed suit.

Today, even medicinal marijuana isn’t exempt under company drug testing policies. The California Supreme Court ruled on this very issue in 1996, holding that medical marijuana users won’t get an exemption so long as the drug remains illegal under federal law. That means employers are under no obligation to accommodate medical marijuana use by employees – even if that use occurs after hours.

Cannabis advocacy groups have been pressing for legislation that would change that fact, but employees need to know what their company’s drug policy is – and assume that hasn’t changed just because recreational marijuana is now legal in California.

Companies whose primary focus is safety (i.e., transportation, construction, etc.) are probably the least likely to alter their policies anytime soon. Employment attorneys are generally advising corporations to update their company handbooks to make it clear that marijuana screening can and will still be taking place.

Some company administrators say screening for marijuana has always been problematic, but the issue has become more acute now that the drug is becoming increasingly legal.

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 is now legal in California, but it can still keep you from getting a job, Dec. 9, 2016, By Samantha Masunaga, The Los Angeles Times

More Blog Entries:

Why Marijuana Sobriety Tests are So Unreliable, Dec. 12, 2016, L.A. Marijuana Lawyer Blog

As it still stands, Visa and Mastercard have made it explicitly clear they will not work with marijuana retail companies until the federal government changes the law and legalizes the drug. But that could mean opportunity for some other financial firms willing to take the risk.

Now, an app called CanPay has announced the creation of the very first debit payment solution available to buyers of cannabis in Colorado, Washington and Oregon.

This is an important adaptation for a few reasons. The first is that most people take for granted that they can use their credit or debit cards anywhere. That’s not true at marijuana dispensaries. At some locations, dispensaries will provide an on-site ATM so that customers can easily access immediate cash. However, those machines often charge $5 per use.

On top of that, because dispensaries and pot shops can’t maintain bank accounts, they have to deal in all-cash. That means there is a significant security risk, which requires a greater investment in staff and personnel.

Some dispensaries say they already accept debit and credit cards, but as the CanPay CEO pointed out, some are using MasterCard and Visa solutions not approved or endorsed by those firms. Marijuana businesses and dispensaries that have set up bank accounts often do so by misleading the bank as to the nature of the operation. This can be risky for all parties involved and if/ when the bank does discover it, they close down the account, which can cause business to come to a grinding halt.

Visa and MasterCard aren’t the only companies to reject marijuana merchants and customers. Google and Apple do as well. That means neither allowed CanPay to install its payment app in their mobile stores. For this reason, the company had to build a separate website to set up the app. The company says for this reason, the site is more secure than payments made by debit or credit card.

According to Forbes, the way it works is the customer pays for the transaction by accessing the site on their smart phone. The CanPay app then offers a single code or token. This is then offered to the retailer, who pays the transaction fee.

Our cannabis lawyers know all those who work in and near marijuana businesses face substantial challenges that most other industries don’t need to give a second thought. The issue of payment is a pain point for many cannabis operations, and if CanPay can solve it, that makes for a more effective business model.

The company reportedly only partners with financial institutions and depositories that already work in the marijuana industry. That ensures all parties know exactly who they are working with and that they are in compliance with all state regulations for each transaction.

CanPay executives say eventually, larger corporations will begin to enter the fray once the federal marijuana law changes (and there is confidence that it will). However, the hope is the business relationships established now will continue even when that time comes.

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

Additional Resources:

CanPay Debuts First Legitimate Debit Payment System For Cannabis Purchases, Nov. 17, 2016, By Debra Bochardt, Forbes.com

More Blog Entries:

LASD Seizes $7M Worth of Marijuana, Edibles in Canyon County Strip Mall, Nov. 4, 2016, L.A. Marijuana Dispensary Attorney Blog