The news impacts nearly 60 businesses with now-expired licenses.

The businesses faced a host of expensive consequences if the city chose to report them to the Los Angeles Police Department or other state agencies. Now, they will have until March 1st before such actions will be taken.

Any cannabis business struggling to comply with local or state licensing requirements or regulations should consult with an experienced Los Angeles cannabis business attorney who can help you work your way through the red tape.

In early December, a city councilman introduced a motion to give businesses until Feb. 28th to get their licenses renewed, something a DCR spokesperson said the agency supported.

L.A. Cannabis Businesses Cautiously Relieved

Response from local stakeholders in the industry was a mixed bag of relief but also trepidation. Some were quoted as saying they were grateful for the relief, but some unanswered questions remain. While the DCR has essentially said it’s going to look the other way for a few months, it’s unclear what exactly that means or whether there could still be penalties or other consequences for operating during that window unlicensed.

The DCR’s email expressly told those with expiring licenses that the agency’s decision was “in no way” meant it was abdicating its responsibilities or right to take action under local laws and regulations, and neither does it stop any other city or state agency from taking their own independent action.

Businesses that are technically operating on a local permit that is expired may be at risk of enforcement action from the California Bureau of Cannabis Control. If the agency initiated an inquiry into a certain operation, city regulators would have to be honest and say the business is operating without a license. That means these businesses are still potentially at risk of some enforcement action between now and March.

The hope is that the DCR and city council is acting in good faith, given that everyone realizes little good is going to come of it if these businesses are shuttered. If instead status quo can be maintained while cannabis businesses have a fair chance to catch up, there is less likely to be legal challenges and other costly action taken.

Some operators are considering relocating, considering the permit delays, confusion and other problems they’ve encountered operating in Los Angeles. They should make sure before they do that they’ve secured proper permitting in that locality. Our Los Angeles marijuana licensing attorneys are available to help answer your questions and be your advocate.

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

Additional Resources:

In reversal, L.A. says no enforcement against nearly 60 marijuana firms with expiring permits, Dec. 23, 2020, By John Schroyer, Marijuana Business Daily

As our Los Angeles marijuana business attorneys know, most of those in the industry are in favor of a statewide delivery option. However, 25 localities have formally objected to the policy. In response, the attorney general’s brief insisted that the BCC’s marijuana delivery policy aligns with state law.

The attorney general’s brief, a response to the local governments arguing pot delivery violates state law – including Proposition 64 and the Medicinal and Adult Use Cannabis and Regulation Safety Act. The local governments’ lawsuit alleges the BCC’s policy violates the provision of Prop. 64 that allows for local regulation of cannabis commerce. The brief calls the local governments’ argument against marijuana delivery “bizarre” because MAUCRSA specifically states that local jurisdictions “shall not prevent delivery of cannabis or cannabis products” – yet that is exactly what the local government agencies are arguing they should have unlimited power to do. Allowing localities to ban not only all sales but delivery of marijuana would defeat voters’ purpose and objectives of Prop. 64.

This statement was made in addition to numerous legal arguments against the local governments’ anti-marijuana delivery stance. Some of those include:

• The lawsuit isn’t based on an actual conflict between local and state law, but rather primarily on hypothetical what-ifs.
• Local police lack the power to prevent private individuals ordering legal product for delivery.
• Both Prop. 64 and MAUCRSA explicitly allow pot delivery throughout the state.
• The legal marijuana market is vulnerable to collapse if the court sides with the local governments on this.

To that last point, the state noted that if a city isn’t going to allow legal sales and it won’t even allow delivery from lawful companies operating in other jurisdictions, than the only choice people will have will be black market sales. If that’s the only option individuals have, then the whole purpose of a legal, regulated, statewide commercial marijuana market is defeated.

An attorney representing the local government agencies told one media outlet that community leaders only agreed to scale back their opposition of legalized recreational marijuana when they were given assurance they could continue regulation of the industry within their jurisdiction. The BCC, they argue, lacks the statutory authority to adopt regulation that allows delivery vans loaded with “millions of dollars worth” of products at all hours of the day and night and hand it out from door to door. (It’s worth noting the state cap that anyone can drive around with at any given time is $5,000.)

California Marijuana Attorneys Weigh Pot Delivery’s Fate

Our Orange County marijuana delivery attorneys know that whatever the court decides could have far-reaching impact on the state, considering that two-thirds of cities and counties across the state have marijuana business bans.

As for the strength of the cities’ argument, one question will certainly be whether cannabis deliveries fall within the cope of commercial cannabis activities that local government agencies have the power to ban. Another significant point is likely to be the issue of police powers.

But no matter what the superior court decides, it’s likely this matter will be unresolved for some time. An appeal is virtually a guarantee, and some expect this case will make it to the California Supreme Court, a prospect that could take several years.

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

Additional Resources:

County of Santa Cruz et al v. Bureau of Cannabis Control, June 8, 2020, Fresno County Superior Court

Think about champagne. Yes, it is an alcoholic drink. It’s also a grape-growing region in France. If you want to call a liquid beverage “champagne,” law requires that you must grow it in certain parts of France and only in accordance with very specific guidelines that cover everything from planting to pressing to packaging. That’s what allows sellers to charge top dollar for it.

So what does that mean for marijuana growers in California? Many were among the first in the U.S. to practice and perfect careful cultivation techniques when the drug first became legal for medicinal purposes. And unfortunately, while legalizing bud has been boom for consumers, it’s been a bust for growers. It has meant a near-crushing amount of oversight and safety testing. A virtual mountain of regulation, cannabis cultivators are finding that the laws meant to protect the consumer and the environment are being largely placed on their shoulders.

Our California marijuana cultivation attorneys know some of these firms have paid more than $120,000 in consults and fees. Although some can scrape by with money saved and the help of investors, it’s estimated some 10,000 marijuana growers in California may be poised to go up in smoke. By some educated guesses, fewer than 5 percent are going to make through in this era of legalized pot.

That’s why numerous growing are working with MAP, hoping to carve out a niche and a means of specializing and protecting the intellectual property of Northern California growers, whose unique methods of cultivation and strains that may only do well in certain climates.

Last year, the state senate approved a measure that would require the food and agriculture department to cook up a means by which cultivators who are licensed could found their own “appellation standards” and other processes that could be applied to marijuana grown in a very specific geographic place – and to do so within the next three years. Formalizing certain types of marijuana by region of growth, the idea would pay less mind to the city or county where the cannabis is cultivated, but more would be reflective of the communities that have been sewn together in the last two decades. Boundaries would be more cultural and environmental than the arbitrary lines recognized by the government – which in a way, is most appropriate.

However, there is concern this effort may not be feasible long-term as advancements in lighting and grow techniques mean that certain strains that may only thrive in a place near the Hindu Kush mountains of Afghanistan or the hot, humid climate of Jamaica can now be mostly engineered in a greenhouse. But we don’t know to what extent the chemistry is different unfortunately because federal law has prohibited most scientific research on the plant.

Geologists in Portland are studying the effects of how light, soil composition and air all impact the growth and production outcomes of certain strains. That could give us a good sense of whether MAP’s plan is feasible.

California marijuana cultivation lawyers at the Cannabis Law Group are committed to helping cannabis farmers protect their investment and their brand.

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

Additional Resources:

THE QUEST TO MAKE CALIFORNIA’S WEED THE CHAMPAGNE OF CANNABIS, October 2018, By Matt Simon, Wired

More Blog Entries:

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

marijuana after its city council voted overwhelmingly to regulate industry operations. The council passed a series of amendments that will set guidelines for cultivators, testing labs, distributors, and dispensaries in the city, according to an article from Press-Telegram. The 7-1 vote reflected a strong support from council, with the support of the mayor as well as the residents who voted for Proposition 64 in November 2016.

City staffers estimate the move could bring in about $750,000 in taxes from recreational sales next year and a whopping $4.5 million from medical marijuana taxes. City officials also hope to stimulate the economy with a clause that requires collective-bargaining agreements with United Food and Commercial Workers 324, the union that represents cannabis workers, raising the bar on the quality of jobs provided by local establishments. Long Beach also joins other California cities in creating social equity programs, designed to lift up communities most harmed in the past by reckless marijuana law enforcement policies. Those who qualify will have certain fees waived, have their applications fast-tracked for review, get access to special workshops, and qualify for tax deferrals. Restrictions for the program include meeting certain income requirements. More specifically, a person would need to have less than $250,000 net worth and fall below 80 percent of the local median income. They also would have to have an arrest, conviction, or citation spurred by a marijuana-related offense before recreational marijuana was passed in the state. In lieu of legal troubles, a person could also qualify if they lived in a census tract of Long Beach in which more than half the population lived below 80 percent of the median income.

The city also has a network of rules they are putting in place in regards to licensing, how many dispensaries are allowed to operate, and where all operations are allowed to set up shop. This is where the help of an experienced attorney can make a big difference in how you manage your business. If you’re thinking of opening a new shop, setting up a consultation with one of our skilled Los Angeles marijuana business lawyers is the first step toward success. Our legal team knows the ins and outs of state and local laws, keeping up with changes that occur day by day, and can help you stay in compliance with those laws. This service alone takes a huge weight off your shoulders so you can focus on running your business with confidence knowing you don’t have to look over your shoulder for compliance officers. We also help you with the licensing and application processes, which you might not even realize often require more than just paperwork. Depending on the city, you likely will also have to appear before city council and planning commission for application reviews, a process which is much more relaxed with a knowledgeable attorney by your side.

Smart business owners seek out these services upfront so their operations are built on a solid foundation. Otherwise you might be seeking our help down the road to undo costly mistakes made in the beginning that can cause damage to your reputation and your business’s bottom line.

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:

City Council Moves Forward With Recreational Marijuana Sales Regulations, June 20, 2018, By Chris Haire, The Grunion

More Blog Entries:

Long Beach Moves Forward with Recreational Marijuana Business Plans, Dec. 30, 2017, Cannabis Law Group

concrete relief from the oppressive federal law that continues to bind the hands of marijuana businesses despite state legalization. The STATES Act, Strengthening the Tenth Amendment Through Entrusting States, is a more formal way of declaring that state laws regarding cannabis usurp the federal government’s Schedule I classification under Controlled Substances Act, 21 U.S.C. Section 812.

According to a report from Leafly, the bill allows representatives who refuse to step into the 21st Century to support marijuana businesses without taking a stance on marijuana at all. It turns the matter purely into a states’ rights issue, which has become the great unifier in the cannabis debate. It also removes industrial hemp from the definition of “marijuana,” freeing many industries that create products unrelated to the psychoactive properties of cannabis.The bill would help marijuana businesses owners clear a key hurdle they face daily in running a proper business: lack of banking options. As our L.A. marijuana business lawyers can explain, banks are under federal jurisdiction, and therefore must be in compliance with federal rules. By housing funds for cannabis businesses, they would knowingly be engaging in criminal activity in the eyes of the federal government, regardless of the laws within the state. The STATES bill would establish a federal law that would act as a buffer, declaring that following state guidelines in regards to marijuana would not be considered trafficking, thus freeing the banks. The importance of this step cannot be stressed enough. Not only will it make it easier for businesses to function at a base level, but it also will make operations infinitely safer. No longer will owners have to haul massive amounts of cash down long stretches of highway trying to get funds to tax offices. Retail locations as well will not have safes with troubling amounts of cash on-site. These are legitimate businesses and it is about time they be allowed to operate as such.

The bill has garnered support from banks and business owners, as well as Democrats and Republicans. It was introduced by Sen. Elizabeth Warren (D-MA) and Sen. Corey Gardner (R-CO) and received backing from at least 12 governors petitioning for the bill to advance, including California Gov. Jerry Brown. Sponsors of the bill in the House of Representatives included Rep. Rep. Dave Joyce (R-OH), Rep. Carlos Curbelo (R-FL), Rep. Ken Buck (R-CO), Rep. Jared Polis (D-CO), Rep. Barbara Lee (D-CA), and Rep. Earl Blumenauer (D-OR). Blumenauer has long been a champion of states rights for cannabis, acting as one of the sponsors of the Rohrabacher-Blumenauer Amendment (originally Rohrabacher-Farr), the amendment that has passed each spending bill since 2014. It created a patch that forbid the Justice Department from using funds to go after medical marijuana operations and users in states where it was legal. If passed, the STATES Act would go much further by putting an official law on the books, rather than something that would need to be passed again and again. It also would give blessing to the state activities, rather than the current system which continues to position the activities as criminal and simply prevents punishment of those crimes.

Navigating the tangled web of local, state, and federal cannabis laws can be a challenge for business owners. Our skilled marijuana business attorneys are well-equipped to clear those challenges and help your operations meet compliance standards so you can focus on your business and your customers.

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 Marijuana is Going to Become Bipartisan, June 7, 2018, By Paul Waldman, Washington Post

More Blog Entries:

Federal Budget Protects State Medical Marijuana Businesses, For Now, Feb. 14, 2018, Cannabis Law Group

commercial sales. While the Adult Use of Marijuana Act made recreational sales legal in the state Jan. 1, it is still up to city and county governments to decide for themselves whether they will issue a ban or set up their own guidelines and regulations. Implementation of guidelines takes time, and some cities, Los Angeles included, were not able to get them in place before the rollout at the beginning of the year.

Los Angeles City Council approved commercial marijuana sales early in December, and by mid-January about two dozen businesses in the city had been granted temporary permits. Three of those businesses had state approval secured and were able to open for business that week, according to an NBC News report. More regulations will have to be met down the road to achieve legal status permanently, the Los Angeles Department of Cannabis Regulation told NBC.While this was happy news for the city, the delay was frustrating to some dispensaries, who wanted to follow proper legal channels but felt they were being punished while hundreds of unlicensed operations profited from recreational sales. Not only are these businesses operating without regulation, but they also are not paying taxes, those who have followed procedure complained. Officials in L.A. said they intend to tackle black market sales and shut down unlicensed operations.

That is why it is so crucial for serious owners to speak to our Los Angeles recreational cannabis business lawyers. Our experienced California marijuana attorneys are on top of all the latest laws and regulations to keep your business in compliance with local and state laws. While cutting corners might be tempting in the short term, such a decision can have devastating effects, potentially costing you your business, your hard earned revenue, and leading to possible legal ramifications. If you’re looking to start a business for the first time, we can walk you through all the necessary steps to establish your company and guide you through the licensing process with ease.

Recreational cannabis has been a longtime coming in the state of California, which was the first to usher in medical marijuana more than 20 years ago under the Compassionate Use Act of 1996. The state lagged behind a few others who have been reaping the benefits of adult use laws, with Colorado, Washington, Alaska, Oregon, and Washington, D.C., opening the recreational floodgates.

Illegal adult use has been prevalent in Los Angeles for some time, with residents taking advantage of black market availability. Others tried to stay above board by obtaining a medical marijuana card, though it is a not-very-well-kept secret among Californians that a recommendation for a card is easy to get from the right doctor, with little proof necessary of an ailment. Leaders in Los Angeles hope that through recreational marijuana legalization, they can weed out illegal distribution channels and smooth out the system for residents to have safe and easy access to cannabis. It also will clear the way for the city to collect tax revenue previously lost to an illegal economy that has been thriving under their radar.

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:

Los Angeles Marijuana Dispensaries Begin First Legal Recreational Sales, Jan. 20, 2018, By James Rainey, NBC News

More Blog Posts:

L.A. Slated to Become the Largest U.S. City With Legalized Recreational Marijuana, Dec. 7, 2017, Los Angeles Cannabis Lawyers Blog

One person who does not stand with the rest of the nation in its support for medical marijuana and recreational use of marijuana is U.S. Attorney General Jefferson “Jeff” Beauregard Sessions III. Sessions has repeatedly spoken out against the use of marijuana for any purpose and has said that “good people” do not use marijuana. He has vowed to enforce the federal laws against marijuana to the fullest extent possible. This is especially true with respect to recreational use of marijuana. One of his new targets is California, where voters recently legalized marijuana for recreational use. According to a recent news article from Politico, California state Attorney General Xavier Becerra, a former Democratic congressmen, has said he is willing to take on Jeff Sessions if he tries to go after California’s state legal marijuana program.

At one point during the interview that served as the basis for this article, Politico’s David Siders asked Becerra if he had ever personally used marijuana, and his response was that he tried it when the was much younger. In response, Siders chided Becerra by asking if it was legal when he tried, knowing that it wasn’t. However, Becerra aptly responded that he occasionally drives over the speed limit too, and this seemed to satisfy Siders.

While this exchange was done in a light-hearted manner, it is a good example of the public feelings and perception that surround marijuana. The first point is that many people, if not most people, have tried marijuana at some point in their lives. This is not to say that something is safe if everyone does it, but it does show that there is a lot of hypocrisy among those who claim to strongly oppose the legalization of medical marijuana. The other point is that by comparing it to driving over the speed limit, we see that the federal prohibition is not something most people strongly feel they must follow.

Although it should be noted that Becerra does not feel he will have to fight Sessions on the issue of marijuana legalization, because, as he puts it, “I’ll probably be the millionth person in line to fight Jeff Sessions on that.”

As our Los Angeles medical marijuana attorneys can explain, while there is not a high likelihood that Sessions could do much to actually stop California’s recreational marijuana business, just as the federal government could not prevent medical marijuana legalization back in the late 1990s, the feds do have the ability to make things very difficult by constantly harassing those in the industry, as also happened in the late 1990s and early 2000s. For this reason, if you are in the marijuana business, the best thing you can do is to speak with an experienced marijuana rights attorney to make sure you are doing everything possible to stay out of trouble.

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 AG defends state’s marijuana laws, May 11, 2017, By Bianca Padro Ocasio, Politico

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

For example, in Colorado, there is a system in place called the Radio-Frequency Identification, which uses microchips to follow plants from the time they are grown to the dispensary and sale. It is noted whether the plant is processed into an oil or edible or whether it is distributed as medicine. Having this type of a system ensures plants are legally grown and sold according to the law.

Beginning in February, a number of software companies will begin submitting proposals to the state, vying to be chosen as the company tapped to track California marijuana.

The goal is for marijuana businesses to be run like any other above-board, legitimate operation, as opposed to a clandestine one. Companies will have to bid on the state contract, which is expected to be a lucrative one.

Although many of these are smaller technology software firms and start-ups, there is evidence that some larger companies are looking to get some skin in the game. For example, last year, Microsoft teamed up with Kind Financial, an L.A.-based firm that is planning to submit its own bid for the state tracking system. The agreement involved Microsoft helping to market Kind’s Agrisoft software to a number of state government agencies. That partnership wasn’t just significant for Kind; it also was a good indicator that a lot of larger companies are testing the waters. They are likely to want to get into the “green rush” once they know the legal climate to do so is stable.

Software and technology firms are ancillary to the marijuana industry, which means they may prove vital to the operations, but they don’t involve actually growing, processing or selling the plant. As our L.A. marijuana attorneys know, ancillary companies are generally at lesser legal risks than those that work directly with the plant. Still, it’s telling that Microsoft agreed only to go so far as marketing the smaller tech firm’s services to the government – and not directly to the marijuana dispensaries that are going to need it. Plus, that decision came prior to the announcement that Donald Trump wanted to appoint Sen. Jeff Sessions as his U.S. attorney general. It’s well-known among those in the marijuana industry that Sessions holds a strong anti-marijuana stance.

Recently, Gov. Jerry Brown revealed his plan to budget more than $50 million for the regulation of marijuana, and a good portion of that is probably going toward that tracking system. The company that is ultimately awarded that contract is also going to be in a strong position to branch out those services to other states, so this is a big deal.

The regulation of marijuana is something that is likely to take some time to get right, but with a thorough plan and adequate investment, the goal is for an uneventful roll-out.

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

Additional Resources:

Cannabis Software Companies Seek to Legitimize the Marijuana Industry and Cash In, Jan. 16,2017, By Alex Halperin, L.A. Weekly

More Blog Entries:

Report: Legal Marijuana Sales Could be Delayed Until 2019, Jan. 12, 2017, L.A. Marijuana Business Lawyer Blog