while remaining in compliance with local and state regulations and laws. What happens, though, when a company is found to be in violation of one of those rules? Many businesses are beginning to find out as authorities ramp up efforts to wrangle illegal, unlicensed, and non-compliant marijuana operations in California. Recently more than 500 people were charged with misdemeanors in Los Angeles for their participation in illegal activity at 105 marijuana businesses in the city.

Those charged could face up to six months in jail and a $1,000 in fines for operating marijuana businesses without a license. The crackdown included not only dispensaries, but also extraction labs, cultivation sites, and delivery services, according to Los Angeles Times. Judges have been hearing cases associated with this series of investigations since May, and arraignments will carry into the end of October. So far, 21 have pleaded no contest or guilty and 11 have been dismissed. Other violations included not following security locations or not following rules regarding the business’s location, such as being too close to a school. With the proper future licensing and guidance, some of these businesses could still have a future, but major infractions like location will mean some will have to practically start over from scratch if they hope to continue in the industry. Many have argued excess regulation, monstrously high taxes, and difficulty acquiring licensing have driven marijuana business owners to operate without being in full compliance. In some areas, after state and local taxes are combined, the amount cannabis product is being taxed is up to 50 percent. Business owners who had licenses back when just medical marijuana was legal in California found themselves having to reapply for licenses once the Medicinal and Adult-Use Cannabis Regulation and Safety Act was passed, consolidating guidelines for both medical and recreational marketplaces. Some struggled to align with the new law, even though they had already had been operating for years. While our skilled L.A. marijuana business lawyers agree there is too much red tape holding local business owners back, we also know that citing burdensome rules is not an affirmative defense in court should you get busted.

As Los Angeles City Attorney Mike Feuer has pointed out, clamping down on unregulated and illegal activity is not just about punishing non-compliant businesses. It’s about creating a fair environment for the 165 businesses operating with licenses in the city. They, too, are facing the same challenges as all of the other businesses, but additionally must compete with operators who are padding out their bottom line by cutting corners. This is why our marijuana business attorneys focus so much of our efforts on helping business owners with licensing, business plans, consulting, and compliance. We have said from the beginning that the best way to ensure the strong and successful longevity of your business is to build compliance into your foundation, and a consultation with our firm is the best first step in building that foundation. We want to help businesses before they find themselves in court.

Our marijuana arrest lawyers also have the experience you need, though, should you not take these steps find yourself in trouble with the law.

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:

Over 500 Charged in LA in Connection to Unlicensed Marijuana Businesses, by Nick Lindsey, Sept. 7, 2018, High Times

More Blog Entries:

Unlicensed Marijuana Firms in L.A. Face Wrath of City Police, Prosecutors, June 4, 2018, Cannabis Law Group

Sales of recreational marijuana in California will begin Jan. 2nd. Although our state was the first to approve of medical marijuana with Proposition 215 in 1996, we have lagged when it comes to implementing recreational marijuana sales. Still, as the largest state to enact such a law, many other states following suit will be watching carefully. The state’s Bureau of Cannabis Control (the Bureau of Medical Cannabis Regulation prior to the passage of Proposition 64) announced that with applications beginning to be submitted, we’re one step closer to the issuance of the first commercial cannabis business approvals.

The launch of the online system appeared to be going well, with officials saying visitors were mostly just exploring the site as opposed to actually sending in full applications. Some got started on an application, submitting certain bits of information, and then saved it to finish later. Temporary licenses, which are effective for four months, won’t be effective until the beginning of the year, and businesses must first obtain a local permit before they can successfully apply for a state-issued license. These temporary licenses cost $1,000 per application fee. A background check requirement is to be waived.

Those who wish to cultivate marijuana need to apply for a license via the California Department of Food and Agriculture. That application process is slated to begin by the end of this month. Businesses looking to cash in on the manufacturing of marijuana products will need to apply for their licenses through the California Department of Health, which will launch the application process next month.

Our marijuana business lawyers in Los Angeles advise the best course of action is to consult with The Cannabis Law Group about how to best go about the process. As marijuana attorneys with many years of experience, we have been on the forefront of the state’s ever-evolving marijuana statutes and regulations. Our in-depth knowledge of these systems and city-by-city ordinances and operations gives our clients a unique advantage as they navigate this new process.

Although these are all exciting developments in the California marijuana industry, it is expected there may be some snags. Some economists are predicting record-breaking prices (thanks to heavy taxation of the product), shortages of product, difficulties with the supply chain and a host of other issues that may crop up as the boundaries of new regulations are tested. It’s unclear whether the pricing issue – by some estimates 40 percent to 60 percent higher costs for the plant – could mean a resurgence of black market pot.

Although previous barriers to industry entry were relatively low (most needed only to form a collective), now a state license is a requirement. Every person/ business in the supply chain has to be licensed, and the high cost of doing so may impose hardships that smaller cannabis businesses in California may find crippling. Having an attorney who can help point you away from the pitfalls and help you determine the best way to save costs and ensure you don’t make an expensive mistake.

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 opens online system to license new pot industry, Dec. 8, 2017, Associated Press

More Blog Entries:

Expanding Cannabis Business Zones Means More City Regulations to Consider, Nov. 28, 2017, L.A. Marijuana Business Lawyer Blog