There was a new agency created for medical marijuana which was then transitioned into the Bureau of Cannabis Control to regulate the cultivation, manufacturing, distribution, and retail sales of cannabis as well as provide for laboratory testing. As our Riverside cannabis business lawyers can explain, the new regulations were finally released and are discussed in a recent news article from San Francisco Gate. These rules were created by the Bureau of Cannabis Control as well as other agencies such as the Department of Health and the Department of Food and Agriculture, which have both retained some control of the cannabis industry including medical marijuana and now legalized recreational use marijuana.

One of the new regulations will allow massive cannabis farms to operate, though those will mainly be in Northern California where many large farms already exist. These farmers are looking forward to transitioning into the growing of marijuana because they are likely to be much more lucrative than other crops. There will also be independent and small delivery services operating legally. This is big step forward because their legal status was questionable at best for a long period of time. However, these smaller services help many medical marijuana patients and will also be very profitable in terms of the recreational marijuana market beginning in 2018.

The regulations did however prohibit the use of self-driving cars to deliver marijuana, and it cannot be delivered on bicycles. The marijuana bike messenger delivery method has been a mainstay in popular culture such as on shows like “High Maintenance” that started as web show before being picked up by HBO, and features a weed dealer interacting with his many clients.

These laws are only temporary as they were done under an emergency basis in that it will soon be 2018 and there are currently no regulations in place. There will be temporary business licenses issues pursuant to the emergency regulations so business can get started. We have seen delays as much as a decade in other jurisdictions in regulating the marijuana industry and that is something we do not want repeated in California as this is big business for everyone involved and there will also be a lot of tax revenue generated. However, there will be a great deal of confusion for those trying to figure out how the new laws apply to their respective business so the best thing one can do is to speak with experienced attorney who can explain what needs to be done.

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 releases long-awaited cannabis regulations, will allow huge farms, November 16, 2017, By Rachel Swan, SF Gate

More Blog Entries:

Report: Medical Cannabis Nuns Selling Products on the Internet, May 14, 2017, by Cannabis Law Group

Recently, the Los Angeles Times reported a new venue for advertising recently opened, though it’s not heavily-utilized at this point, and it’s unclear whether it will amount to a sizable business opportunity. U.S.-based air carrier Allegiant Air, headquartered in Las Vegas, NV, has become the first to agree to allow advertising from a marijuana dispensary.

It’s found on the airline’s in-flight magazine, Sunseeker, which ran an advertisement for a marijuana dispensary that produces THC-laden cookies and candies, sold just a few blocks from the strip in Las Vegas. A full view of the kitchen is displayed in bright, colorful pictures on the in-flight magazine.

The advertisement lets passengers know that marijuana is legal for recreational use in Nevada for adults over the age of 21, and has been since last year.

But this doesn’t mean advertising is going to be a simple matter, and those considering running marijuana advertisements – whether you are a dispensary, publication, billboard owner, etc. – should seek experienced legal counsel to make sure you understand your rights and responsibilities, given that marijuana is still a Schedule I narcotic outlawed by the federal government.

Recently, California lawmakers introduced SB-162 specifically aimed at addressing marijuana marketing. The measure, if passed, would ban marijuana dispensaries and producers from using promotional products to advertise their businesses. That would mean companies would be forbidden from using branded merchandise that would be sold on hats, clothing, bookbags or other gear that would display the name, logo or product. The bill passed in the U.S. Senate last month by a vote of 40-0. It’s now being considered by a state Assembly committee.

California law currently allows branded merchandise to be sold and distributed at certain events, but only where attendees are at least 21-years-old. Anyone who has ever attended a cannabis-related event knows it’s common for those in attendance to leave with a grip of bumper stickers, tote bags, t-shirts and more with marijuana business insignia. However, the passage of SB 162 would outlaw all of that.

If cannabis crews were unable to market themselves or capitalize on this secondary industry, that could curtail a significant revenue source. Promotional products industry leaders are taking a firm stance against this, arguing that such limitations could amount to First Amendment violations.

Still, the measure has plenty of supporters. For example, the American Academy of Pediatrics, California argues the bill would protect children from an onslaught of pro-marijuana advertisements, shielding them from skewed messages that might promote marijuana in a way that could be dangerous for young people.

But it’s not as if there aren’t already advertising restrictions on marijuana in California. As our marijuana business attorneys in Orange County can explain, the state already bars any signs or advertisements of the drug in any broadcast, print or digital medium where less than 72 percent of the audience is likely to be 21 or older (or conversely, where 28 percent or more is likely to be under 21). The law also does not allow any advertiser or marijuana business to run promotions that allow for a giveaway of marijuana products or accessories as part of a promotional campaign.

Because of the federal civil asset forfeiture program, which allows the U.S. Justice Department to seize assets of any real property used to manufacture or distribute drugs that are illegal under federal law, the typical boiler plate lease won’t cut it. That’s why in many cases, property leases that involve cannabis businesses use something known as an “escape clause,” for instances when there is federal intervention or enforcement action. This can help protect the property owner, but it’s likely to end – or at least halt – the marijuana business indefinitely, likely costing a great deal of money.

We must now also consider the recently-passed Medicinal and Adult Use Cannabis Regulation Safety Act (MAUCRSA). Structuring the business – and the commercial lease agreement – according to these provisions can help safeguard your financial investment and livelihood.

Our Orange County marijuana attorneys are committed to helping new cannabis businesses formulate a workable business model that will help them avoid some of the most common legal headaches – including as it relates to the lease.

Some considerations you’ll want to weigh:

• Landlord ownership in tenant marijuana business. Anyone who buys and sells shares in a privately-owned cannabis company could potentially trigger either state or federal securities laws, which could turn into a regulatory issue under the state’s licensing program for marijuana. You’ll want to keep this in mind if you’re asked about accepting ownership of shares from the tenant instead of rent. MAUCRSA identifies an “owner” as someone with 20 percent or more ownership in the licensed company, or any person or who exercises any degree of management, control or direction of the company. If a cannabis business wants to hang on to its business license, all “owners” must have background checks. If there is any alteration of control or ownership, it could jeopardize the business.
• Multi-tenant cultivation. It’s becoming increasingly common for “cannabis parks” to crop up around California. However, it’s unclear whether they’ll be allowed to stay. The new law indicates only one licensee or applicant is allowed to control the premises. What’s not certain yet is if state regulators will give the green light to licensees to open up several “premises” on a single parcel of land. So if there are multiple tenants, there could be potential problems.
• Profit sharing. Many commercial leases for ordinary tenants include a provision that tenant pay a percentage of profits in addition to the rent. However, as mentioned earlier, this type of arrangement could cause headaches in terms of landlord liability because of the de facto designation as an owner – particularly if the profit is equivalent to 20 percent or more.
• Considerations of local law. California has long been a patchwork of laws when it comes to marijuana regulation. Some have very stringent restrictions, and others don’t have any at all. If there is some type of conditional use permit or another type of local approval required, your marijuana lawyer can help you sort this out.

In addition to these, there are also concerns with security, access and future build-outs. Consulting with an experienced attorney specializing in cannabis law can help you avoid some of these common pitfalls in this ever-evolving area of law.

House committee members approved the measure 11-2 recently. If passed, this measure would reverse the country’s most generous allowance on in-home cannabis cultivation.

As it stands currently, Colorado’s recreational marijuana law allows medical marijuana patients to grow a maximum of 99 plants – way in excess of what other states allow. State law also gives a green light for recreational marijuana users to combine their six allotted marijuana plants into large co-ops. The result, lawmakers say, is that there are huge greenhouses where marijuana is grown, but neither tracked nor taxed.

There are, however, some individual counties and municipalities – Denver being one of them – that limits the number of in-home marijuana plants one can grow at 12.

Sponsors of this new measure say there needs to be a statewide cap that will deter people from growing, buying and selling on the black market. There are a total of 28 states now that have passed laws allowing medical marijuana. However, none of those allow patients to grow more than 16 plants – except Colorado.

There is concern, particularly by conservative politicians, that these home-grow laws attract a criminal element. Others cite concerns raised in some communities by neighbors who say the smell near some homes is noxious and overwhelming, and some fear fire hazards spurred by power supplies that are strained.

Local police detectives lending support to this measure say it’s not about denying medical marijuana to people who are sick, bur rather addressing the legitimate concerns raised in some neighborhoods. The measure would still allow larger-scale marijuana grow operations, just not on residential sites.

Legislators are also weighing another measure that would beef up law enforcement coffers to fight black-market marijuana grow operations and sales.

Gov. John Hickenlooper’s deputies testified recently before the state legislative committee that because it’s not certain what the Trump administration will do about marijuana, it’s imperative for states that are technically violating federal drug law to impose stringent limits that won’t invite federal prosecutors’ scrutiny and action. It’s been made abundantly clear that U.S. Attorney General Jeff Sessions, along with numerous other members of Trump’s team, don’t believe states should be allowed to so openly violate current federal law. And while there have been many calls to change those laws, that doesn’t seem to be on the horizon anytime soon.

The governor’s adviser on marijuana stated he believed it’s necessary in this current client especially to prove the state can regulate marijuana effectively on its own terms.

However, some marijuana advocates have already voiced staunch opposition to these measures. For example, Colorado NORML called it “re-criminalizing” what has already been de-criminalized.

As it now stands, Colorado has approximately 19,000 medical marijuana patients whose physicians have recommended a high number of plants necessary to produce certain kinds of cannabis oils and other treatments that are deemed medically necessary.

Our marijuana criminal defense attorneys understand lawmakers would make a misdemeanor, as opposed to a felony, for a first-time offender deemed in violation of having too many marijuana plants at home.

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

Additional Resources:

Colorado Moves to Limit Home-Grown Marijuana, March 6, 2017, By Kristen Wyatt, Associated Press

More Blog Entries:

Colorado Supreme Court Rules Cops Can’t be Compelled to Return Your Cannabis, March 1, 2017, Marijuana Attorney Blog

We do know the American public overwhelmingly supports legalizing recreational marijuana, and many lawmakers are eyeing it as a way to rake in millions of dollars in taxes that can be used for the greater good. As of today, we have a total of eight states – including California – that have legalized cannabis for recreational use. There was hope when Trump took office that, at the very least, Obama’s “hands-off” policy would continue, given Trump’s stated support for state’s rights. But then, he appointed Sen. Jeff Sessions (R-Ala.) to the post of U.S. Attorney General. Sessions has long been a vocal critic of recreational marijuana. On top of that, some in the Trump administration have warned that legal recreational marijuana could be the target of federal enforcement action, as the drug still remains outlawed under federal statutes.

All of this has left us with a great deal of uncertainty moving forward. It’s really not clear to marijuana businesses or even our marijuana lawyers what move the federal government and legislators may take next. While Republicans tend to be less favorable toward recreational marijuana on the whole, the issue is not split solely down party lines and a lot of Republicans support it.

The marijuana movement began in California some 20 years ago. Back in 1996, voters in California overwhelmingly passed Proposition 215, which was the start of legalizing marijuana for medicinal use. Since that time, 27 other states plus the District of Colombia have approved widely varying laws that legalize marijuana as medicine.

Despite the federal government’s stubborn classification of the drug as a Schedule I narcotic, there is ample evidence that marijuana can be of great medicinal value. A report released earlier this year by the National Academies of Sciences, Engineering and Medicine revealed substantial and conclusive proof that marijuana is effective in treating chronic pain, multiple sclerosis and nausea induced by chemotherapy.

Congress did pass a bill three years ago that prohibits the Department of Justice from using public money to pursue state-regulated medical marijuana programs – and that provision is still in place. However, what is not protected is recreational use and sales.

As of right now, eight states – including California – have legalized the cultivation, sale and possession of marijuana for people over 21. Those states with programs up-and-running are bringing in big dollars as a result. For example in Washington State, officials reported net profits of $256 million.

Trump likes big business and he’s not a fan of regulation. He said prior to the election he personally views it as a matter for the states to decide. But his attorney general despises marijuana, and has even called into question the morality of anyone who uses it. His White House Press Secretary compared marijuana users to opioid addicts.

So now, a number of state leaders are asking the government for further guidance on the issue. As of right now, most banks still won’t work with marijuana businesses, for fear of being accused of money laundering. Meanwhile, there are still more states that are hoping to legalize marijuana. What that will look like and the ultimate success of marijuana businesses involved will depend on how this administration decides to proceed.

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

Additional Resources:

What is the future of recreational marijuana in Trump’s America? March 7, 2017, By Kurtis Lee, The Los Angeles Times

More Blog Entries:

Report: Most Banks Still Reticent About Reefer, Feb. 26, 2017, Marijuana Lawyer Blog

You may recall the 2015 “American Sniper” trial wherein prosecutors successfully countered a claim by the defendant who fatally shot the sniper and then alleged he suffered from schizophrenia. Prosecutors opined he was simply high. Also in 2015, there was the case of a 49-year-old Denver man accused of killing his wife after eating marijuana-infused candy he had just purchased legally at a marijuana dispensary. Defense attorneys have argued defendant was so high, he did not intend to kill his wife. Then there was a death of a college student who jumped to his death after reportedly eating a potent marijuana cookie.

In each case, questions have arisen regarding the potency of these drugs. In the wake of this, researchers with King College’s London’s Institute of Psychiatry, Psychology and Neuroscience are urging regulators to fund scientific studies that will more accurately show how we can make marijuana safer.

Robin Murray, a professor at the institute, told London reporters at the briefing that we should expect that more people are going to be consuming marijuana globally – whether others support that choice or not – and the goal should be to explore if there are safer means and varieties.

There are some studies that show certain strains of the drug may be less likely to result in symptoms of psychosis, but further research is necessary to nail down exactly why that is and replicate it.

Murray and Amir Englund recently published a paper called, “Can we make cannabis safer?” which notes the average potency of THC in marijuana has doubled over the last four decades.

THC, or delta-9-tetrahydrocannabinol – is the primary active chemical compound in marijuana. The other is cannabidiol. Some forms of marijuana are extremely potent, containing high levels of THC, but lower levels of CBD. There is some research to suggest that CBD acts as a neutralizer in terms of potency, reducing problems with memory loss or paranoia.

Canada is preparing to legalize the drug for recreational use this year. Many states in the U.S. – including California – now allow for medicinal and recreational marijuana. In some areas where the drug isn’t tightly regulated, researchers said, the potency of the drug can reach up to 75 percent THC.

Lawmakers in both Uruguay and the Netherlands (where marijuana is also legal) have raised the question of whether to cap THC potency at 15 percent. Another idea that has been tossed around was to tax the drug according to the content of its THC, charging more for higher-potency marijuana.

The strategy of creating strains of the drug with higher CBD levels to offset some of the effects of the THC are promising, but we still need more study to determine whether that’s really going to address the issue. Such research has historically been challenging in the U.S., where federal drug laws have severely restricted who can study the drug and to what extent.

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

Additional Resources:

Regulate cannabis potency to reduce psychosis risk, experts say, March 2, 2017, Reuters

More Blog Entries:

White House Will Step Up Federal Marijuana Enforcement, Feb. 27, 2017, Marijuana Attorney Blog

The L.A. Times recently reported on a local businesswoman who alongside her partner launched a packaging company that caters to the cannabis industry. They produce containers, bags, logos, labels, custom-printed jars and boxes. They currently have about three workers and are preparing to bring on three more. They provide marketing and branding assistance to growers and distributors, and the owner describes it as “all very upscale.” The biggest problem, however, has been the banking.

She explained how she met with a single accountant last year who informed her she would likely only be paid in cash and that her workers and suppliers would need to be paid in cash as well. Payroll, sales and income taxes – all of it has to be done in cash. The accountant advised her to stash the cash under her mattress and then somewhere down the line find a time to make a large deposit into her bank account. When she told him that sounded illegal, he shrugged, saying that’s how everyone does it.

That kind of exchange is exactly why having a marijuana lawyer help you develop a business plan is so imperative. If you as a business owner get dragged into court for violating state guidelines or federal laws, it’s not going to be a valid defense to say, “But my accountant told me to do it.”

The fact is, marijuana is illegal at the federal level, and business owners need to proceed with appropriate caution. Operating everything safely and above board can be tricky when you don’t have a bank to keep your money safe.

Ultimately, this kind of conflict imposed on legal businesses by the federal government’s refusal to budge on the cannabis classification is not tenable long-term. As a direct result of this, there are about 70 percent of marijuana businesses that have no bank accounts.

This leaves businesses vulnerable to all kinds of issues, including crime. Five years ago, the owner of a medical marijuana dispensary in Orange County was kidnapped and tortured with genital mutilation when four men sought to rob him. Other dispensary owners have been robbed at gunpoint, and many pay a great deal of money for extensive security measures. In another case, a dispensary owner was pulled over by police while transporting about $30,000 to the company’s headquarters. She was able to produce all the right paperwork to show the money was legitimately sourced, but she still had to hire a marijuana lawyer to help her get it back.

There are also practical problems. For example, how do you physically store $250,000 in cash? How do you keep it organized and secure?

Recently, these stores were shared at the Cannabis Banking Working Group’s first meeting in December. The goal is to come up with recommendations for federal legislation that would allow marijuana businesses to access legal banking. The problem is that because cannabis is illegal under federal law, banks fear they will be violating federal drug and money laundering statutes.

Marijuana business owners want to abide by the applicable laws, but this kind of disconnect between state and federal laws is making it incredibly hard. Some companies estimate they are losing $1 million annually to the various burdens that being a “cash-only” business imposes.

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

Additional Resources:

Your business is legal, but you can’t use banks. Welcome to the cannabis all-cash nightmare, Jan. 29, 2017, By Robin Abcarian, Los Angeles Times

More Blog Entries:

SB 65 Would Ban Marijuana Use While Driving, Jan. 28, 2017, L.A. Marijuana Attorney Blog

There is reason to believe Donald Trump may lean toward favoring states’ rights on the issue. Others believe he may at the very least support medical marijuana rights. However, we also know that Trump has shown no problem walking back from several of the promises he made on the campaign trail, so it’s not illogical that he would shy away from statements in support of medicinal marijuana. On top of this, there is concern given that his U.S. attorney general pick Jeff Sessions is a vocal opponent of any form of marijuana legalization, refusing to concede even the benefits of the drug as a form of medicine.

Still, states have already taken incredible measures to pass laws and initiate regulation. What impact could Trump really have on the industry? It turns out a lot. Here are four scenarios we might see over the next four years.

• No. 1. The Trump administration takes on both recreational and medicinal marijuana in an attempt to eradicate both. Trump has expressed a desire to scrap pretty much anything and everything that was established by President Obama. That includes, apparently, a willingness to slash health insurance for 22 million people and upend the entire insurance industry. This tells us going after the marijuana industry isn’t likely to rattle him much. If the administration decided to do this, they could simply toss the Cole Memorandum that carved a path for recreational marijuana, which means we could once again be seeing marijuana dispensaries close shop, their assets subject to forfeiture. Something to keep an eye on is the Rohrbacher-Farr amendment, which prevents the government from spending money to target medicinal marijuana. But this amendment expires April 28th. If Congress does not renew it, that protection dissipates.
• No. 2. Recreational marijuana becomes the primary target. Government leaders could start by initiating raids on retailers of marijuana that cater to adults, seizing their money and assets – and not ever charging anyone formally with a crime. The majority of marijuana businesses at this point do not have the financial backing to battle the federal government in court, especially when there are very limited legal protections for those in the industry.
• No. 3. Nothing changes. It is possible the administration won’t do anything, allowing the Cole Memo to remain in place and allowing any state that has authorized legalization to proceed without government interference.
• No. 4. The new administration supports marijuana industry. We do know that Trump got his start as a businessman. Many of those who are operating his cabinet are businessmen as well. Marijuana as an industry has generated some 150,000 jobs across the country. De-scheduling marijuana could be an extremely popular move for the president, and he may yet make it.

If you are concerned about your marijuana business under the new administration, consult with an experienced L.A. marijuana lawyer.

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

Additional Resources:

5 Ways Trump Could Affect The Marijuana Industry, Jan. 20, 2017, By Debra Borchardt, Forbes.com

More Blog Entries:

Medical Marijuana Access in Florida Limited, For Now, Jan. 19, 2017, L.A. Marijuana Lawyer Blog

Once-illicit growers have been banking on some degree of legalization, investing millions in facilities and factors that can help in the growth and processing of the drug. But there has been stiff competition in the marketplace, and that has driven down the average cost that wholesalers are willing to pay – now down to about $1,300 a pound in Denver since January 2014, when sales to all over-21 adults became legal in Colorado. That’s a nearly 50 percent drop in a span of just two years.

As supply of the drug has ballooned, growers are now looking to invest in the latest-and-greatest technology to help them cut down on their turnaround time. Any marijuana business that can help growers focus on efficiency is going to find themselves an edge in the market.

Industry insiders say efficiency in production can result in costs that are slashed from roughly $1,000 a pound to about $300. Of course, retail prices are slipping too, but not nearly as fast as on the wholesale market. Colorado marijuana dispensaries were charging an average of $6.61 for every gram of marijuana as of last fall, which was a 25 percent drop from the first quarter after legalization.

Of course, there is money to be made still. It’s estimated North America sales of the drug could triple to about $20 billion just over the next five years. However, what it also means is that any marijuana business that wants to have a real shot at competing needs to be invested in good technology that helps bolster efficient production and sales. Companies that specialize in lights, fertilizers and other necessities for hydroponic growth (the method favored by indoor growers) are going to be in increasingly high demand.

There is also an increasing demand for companies that can help growers with outdoor crops. Although decades of anti-marijuana law has meant growers are most familiar with indoor production, outdoor growth – specifically greenhouse supplies – are going to be in greater demand. That’s because this method is generally deemed more efficient and lower cost. A greenhouse that features a glass ceiling, insulated walls and climate control could require half the energy costs of a typical warehouse production system. But getting there, of course, isn’t cheap. Some growers are investing tens of millions of dollars to create a top-notch facility that can be more efficient. That usually requires loans and investors.

Any marijuana business seeking to carve out an edge or a niche should consult with an experienced marijuana business lawyer who can help with navigation through any legal concerns. Run afoul of state statutes or regulations – not to mention federal laws – and it could quickly mean the end of the business, not to mention a risk of losing one’s freedom.

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

Additional Resources:

Why legal cannabis is becoming a major buzzkill for some growers, Jan. 17, 2017, By Jack Kaskey and Jennifer Kaplan, Bloomberg News

More Blog Entries:

Marijuana Industry Poised to Generate Many New Jobs, Jan. 4, 2017, L.A. Marijuana Lawyer Blog

The U.S. Postal Service employs some 500,000 people nationally, and most do their job with expedience and integrity – often despite having to deal with the public in their less-than-likable moments. Still, an investigation was launched by the service’s inspector general’s office after several reports of theft of so-called “pot mail” surfaced.

It’s important to point out here: The U.S. Postal Service controls the general mail and that is overseen by the federal government. Even though California, Colorado, Washington state and others have approved medicinal and recreational marijuana laws, it is illegal to mail these items via the postal service. Doing so could lead to a felony charge. Even private carriers, such as FedEx, refuse to ship items that would otherwise be banned for transportation under federal, state or local laws, rules or regulations. What’s more, these private carriers have the option of calling police to report if there is a package suspected to contain marijuana. Private courier services might be less discerning in the kinds of packages they deliver, but marijuana delivery – even in states where recreational marijuana is allowed – is usually still illegal unless it’s done on the site of a licensed marijuana dealer.

The recent U.S. Postal Service audit, conducted at seven sites in October, were prompted after a number of high-profile incidents in which postal workers were accused of stealing pot-containing parcels or using their positions to accept kickbacks from those trying to deliver such goods.

For example, there was a postal worker in Illinois arrested in September for allegedly delivering marijuana knowingly by mail. Earlier in the year, two other workers from Chicago were stopped when they reportedly tried to heist at least 16 marijuana-filled packages from O’Hare International Airport. Then in Washington, D.C., several postal workers were accused in the summer of accepting bribes to deliver marijuana packages.

The U.S. Postal Service’s narcotics program released a partial report recently, but said the full audit wouldn’t be released to the public due to the fear that some sensitive information might be revealed.

The agency indicated that in 2015, there were 34,000 pounds of marijuana seized from the mail stream. Our marijuana defense lawyers know these packages can be used as evidence in criminal proceedings.

Still, the service was willing to concede that there were practices that allowed postal workers discretion in certain areas and perhaps there should have been greater oversight. Specifically, the agency reported there were insufficient controls in the handling and tracking of packages suspected of containing marijuana, following the initial retrieval. There was a high risk that these packages would be lost, stolen, mishandled or undetected.

The inspector general recommended implementation of a national policy that would provide clearer guidelines for tracking and securing packages that were suspected of containing marijuana. Having a more streamlined approach – with clearly-defined roles and goals – would help to simplify the process and make it less likely that such packages will be stolen or otherwise fall through the cracks.

The U.S. Postal Service has said it cannot comment beyond what was released in the federal information request.

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

Additional Resources:

Postal Workers Put Marijuana at Risk of Theft By Coworkers, Audit Finds, Nov. 16, 2016, By Seven Nelson, U.S. News & World Report

More Blog Entries:

Report: Colorado Marijuana Potency Higher Than Most, Oct. 31, 2016, California Marijuana Lawyer Blog

July marijuana sales also soared past the previous record, set in April 2016 (during a month that includes the yearly 4/20 marijuana holiday), which was $117.4 million. Medical sales accounted for about $41 million of that total, while recreational marijuana sales totaled about $77 million.

Meanwhile this July, sales of recreational marijuana in Colorado spiked at $83.8 million, according to the state’s department of revenue.

So what’s going on? There are a few different theories. For one thing, marijuana is becoming more mainstream. More people are trying it. More people are feeling free to buy it legally. More people are traveling from other parts of the country – or even other parts of the globe – to sample some sensimilla. On top of that, it was July, which means it’s the height of the summer party season. People are having backyard parties, there are concerts, festivals and all different kinds of events. People tend to be out-and-about more. School is out. More people are taking vacations, time off and traveling.

In general, this kind of pattern has been seen with alcohol too, so it makes sense that we’re seeing it now also with marijuana.

Historically, we’ve seen the most marijuana sales occur in July, August and September, state revenue officials report.

Another driving force was almost certainly the fact that Colorado lifted its previous restriction allowing tourists access to only a quarter ounce of the drug at any given time. As of June – the month before the sales spike – tourists are now allowed to buy and possess just as much as residents – up to one ounce a day/ at a time.

Including the July sales increase, the Colorado marijuana industry drummed up a total of more than $720 million in sales just in the first seven months of 2016. That’s a 34 percent increase from 2015, when a total of $538 million in sales were counted in the first seven months.

Of the total marijuana sales in 2016 so far, $465 million was from recreational marijuana. This gives us an idea in California of what we stand to gain by passing pro-marijuana legislation, especially when you consider that so far this year, the state has raked in almost $106 million in taxes and fees. Those go to bolster educational efforts, roadway construction and health programs.

Of course, the year-end 2015 total of $135 million represents just a small slice of the state’s $10 billion general revenue coffers, and it only chips away at the K-12 educational funding deficit of more than $830 million. Still, it doesn’t hurt.

Analysts estimate marijuana taxes will flatten out around $150 million each fiscal year. The state also has to consider how sales may fall once other states start passing similar legislation. Colorado is in a unique position now because it’s one of just four states that allow recreational marijuana use. Two of those – Alaska and Washington State – are largely inaccessible to most of the country, particularly those on the East Coast. That could change if/ when California approves medical marijuana.

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

Additional Resources:

Colorado pot shops post record-breaking sales figures topping $122 million in July, Sept. 12, 2016, By Alicia Wallace, The Cannabist

More Blog Entries:

Medical Marijuana May be Best Solution to Painkiller Epidemic, Sept. 3, 2016, L.A. Marijuana Lawyer Blog