working with medical marijuana operations obtain compliance with the law. More recently, we’ve been on the forefront of helping recreational marijuana businesses align their operations with the regulatory parameters set forth in Proposition 64 Jan. 1, as well as those guidelines established by local governments.

However, the level of success a business owner can achieve requires help from all levels, including government officials setting regulations and tax rates. Many owners face a broad range of challenges when transitioning from medical to recreational sales or opening a business for the first time under the new adult-use standards.

Rob Bonta (D-Oakland) and Tom Lackey (R-Palmdale) want to ease some of those pains. They have introduced Assemblybill 3157, which would reduce the state marijuana excise tax to 11 percent for three years. The tax currently sits at 15 percent. The bill states: “The cumulative tax rate imposed by existing law is substantial and undermines the legal regulatory system if high taxes cause prices to far exceed that what is found on the black market.”

According to Leafly, Lackey said he hopes this bill will give relief to legal cannabis businesses, who currently have a lot of competition from black market sellers. Legislators also hope this will help make it easier for businesses to transition into legal sales and get on their feet.

The bill also suspends the cannabis cultivation tax, easing added expenses that occur along the marijuana production chain.

A breakdown of current cannabis taxes shows they create an unusually high burden (one of the highest in the country). When all of the state taxes are added up, it comes to about 25 percent. And this doesn’t include extra taxes imposed by local governments, though some cities are also considering their own tax decreases to do their part in supporting business owners.

Our skilled Los Angeles cannabis business lawyers know the bill, if passed, would be a victory for business owners and consumers alike. The burden of these taxes is often passed along the customers in the price of the final product. Experts say these few small changes will potentially drop consumer prices by 9 percent, making it closer in price to black market sources. This increases the incentive for customers to choose a legal retailer, which in turn helps out local legal business owners. And more sales also means more taxes going into city and state coffers to make up for the decreased tax rates. Lackey told Leafly that Washington actually saw a significant bump in tax revenue after simplifying the tax structure. It’s a cycle of success, but it must begin with government action.

Our experienced attorneys know there are always growing pains when new major legislation is released to the public. We stand beside marijuana business entrepreneurs as they get their start and help them understand the best course of action to move forward while following the law. We are keenly positioned to help navigate these challenges and keep our clients in compliance. We are thrilled to see legislators joining us in standing up for these hard-working Californians and hope to see more action designed to assist already legal owners and create incentives for more companies to join a thriving and robust marketplace.

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:

California Bill Would Temporarily Cut State Cannabis Taxes, March 15, 2018, Leafly

More Blog Entries:

Warning Letters Sent to Unlicensed Cannabis Businesses in California, Feb. 18, 2018, Cannabis Law Group

In Los Angeles and other areas in California, government employees are getting warning letters reminding them that they are not allowed to consume marijuana, even while off-duty, saying their employers strict no-drug policies have not changed, even as state laws have evolved into the 21st century, according to NBC Los Angeles.

The warnings were spurred by the passing of Proposition 64, which led to legalization of recreational marijuana in California as of Jan. 1. Los Angeles is one of the cities which has welcomed legalization efforts and cannabis businesses. Meanwhile, it is clear many will not be able to enjoy the same freedoms as their fellow residents.

No one is arguing the merits of such a policy when it comes to consuming anything that might impair a worker while on the clock. But prohibiting marijuana use on one’s own time is as ridiculous as forbidding an employee from enjoying a glass of wine after a long day at work.Our trusted cannabis legalization attorneys in Los Angeles know that many places of employment will continue to hide behind federal classification of marijuana as a Schedule I drug under Controlled Substances Act, 21 U.S.C. Section 812. That is why it is so important to keep pushing to declassify this beneficial drug, which science has proven time and again has no business being on the same list with drugs such as heroin. However, as things are highly unlikely to change under the current administration, it is crucial to seek legal guidance from knowledgeable attorneys like ours with the experience and know-how to help you navigate the landscape of cannabis laws should you find yourself in trouble, caught between state laws and federal grandstanding.

Metro transit employees were reminded that they are still held accountable by federal Department of Transportation rules, which abide by the Schedule I misclassification. Los Angeles Fire Department reinforced their rule to be a drug- and alcohol-free workplace, and that there would be ramifications for workers appearing on the job under the influence. Such rules are obviously necessary, especially among safety workers. But it is ludicrous that such policies should have any bearing on how an employee spends their personal time while not on-call.

Los Angeles Police Department issued the most pointed memo, explicitly stating marijuana use is not allowed “for any reason” even while off-duty. “Department policy is unaffected by the legalization of adult-use marijuana,” the memo said.

Other non-government businesses have also clung to federal law to guide company policies, including disciplining workers who test positive for marijuana during drug screenings, even without evidence that they were impaired while at work. Our marijuana attorneys have seen the tides changing, though, and are hopeful they will continue to shift. Smart businesses know that the world is moving forward, and in order to remain competitive and retain the best employees, company policies must adapt with the times. They can do so by dropping marijuana from random drug tests and screenings and focus more on performance and whether workers are impaired on the job.

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:

Local Agencies Warn Employees Against Using Recreational Marijuana, Even Off-Duty, Feb. 7, 2018, By Eric Leonard, NBC Los Angeles

More Blog Entries:

Employers Revisiting Policies on Marijuana, Jan. 1, 2018, Cannabis Law Group

The theory behind this program is that since marijuana laws have been proven to have had disproportionate effects on African Americans and the Hispanic community, and those who suffered should not also be excluded from being able to legally make money in the medical cannabis and recreational marijuana industries. This initiative will be aimed at helping those in communities that have been impacted by harsh marijuana laws, their family members, and companies who have a track record of helping those in undeserved communities gain a foothold into the medical marijuana business.

As our Los Angeles cannabis business attorneys can explain, while there is a lot of money to be made in the business, there are a lot of the of obstacles facing any entrepreneur, especially the ones who have previously had contact with the law regard marijuana.

One of the ways an experienced cannabis industry lawyer can help someone trying to get into the industry is with business licensing and conditional use permits (CUPs). This can include representing applicants at the hearing before the Los Angeles City Council as the council will be deciding whether the applicatant is issued a conditional use permit.

Pursuant to the Medical Marijuana Regulation and Safety Act (MMRSA), there are 17 different different types of business licenses involving the cultivation and distribution of recreational marijuana. While this law provides a way for people to legally (under California state law) participate in the recreational cannabis industry, there is a lot of red tape, and for applicants who do not get through the process successfully the first time, it can be very difficult to get a second chance. This is why it is best to speak with an experienced cannabis lawyer and make sure things are done correctly in the first place.

Many people are worried about paying for an attorney when they are first getting into business and figure they can take care of legal issues later. The problem is that if things go wrong, it is often more costly to try and go back to correct problems after they have occurred.

People hoping to get in the business should understand that marijuana is still illegal under federal law pursuant to the U.S. Controlled Substances Act of 1970 (USCSA). When the law was enacted and controlled substances were first scheduled on the list, marijuana was listed as a Schedule One controlled substance which means that congress considered it among the most dangerous illicit substances – even more dangerous than heroin. While this classification is absurd, it does not seem like it will be changing given the current administration and its stance on medical marijuana and recreational marijuana. This means that a lot of care must be taken to avoid any issues with federal laws.

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

Additional Resources:

LA Is Trying to Help People with Marijuana Convictions Get Into the Cannabis Industry, October 23, 2017, By Joseph Misulonas, Civilized

More Blog Entries:

California Formally Requests That the Federal Government Reclassify Marijuana, Oct. 17, 2017, L.A. Marijuana Attorney Blog

According to a recent news article from the Cannabist, a company that runs a major online crowdsource, has just pulled the plug on a campaign hosted on their platform to raise money for the farmers who lost a great deal to the massive wildfires in Northern California. There were already many donations on the site that totaled over $13,000 before the campaign was terminated.This campaign was organized by the California Growers Association, and it was done to help those hard working farmers and their families who lost everything. While these medical marijuana farmers were not the only farmers who lost their entire crop for the year, if they had been growing grapes, they would have been protected by a commercial or agricultural insurance policy, and other than the deductible, they would have gotten compensated for much of their respective losses. However, as discussed above, federal regulations prohibit insurance companies from writing policies to cover those in the medical marijuana business.

The company said that the growers association had violated the terms of their service agreement and that was why the site was being shut down at this time. PayPal and WePay, which handled the payment on the crowdfunding site also said they cannot allow their services to be used as the money comes from a criminal enterprise according to federal law.

As our Los Angeles medical cannabis industry lawyers can explain, these companies that shut down this campaign, or refuse to write insurance policies, or banks that will not let those in the cannabis industry maintain deposit accounts, are for the most part, doing some out of a fear of action and enforcement by the federal government. While some CEOs may be acting out of a belief that marijuana should not be legalized, most are happy to make money off the industry if they are allowed to do so, as they are in the interest of making money and showing increased quarterly grown to their shareholders.

The other part of the problem is that many businesses are not sure as to the current state of the law, and are in fear of having assets frozen and possibly even being prosecuted for one or more criminal offenses. The reality is that some of these fears are justified so the best thing anyone who is in the Los Angeles medical marijuana industry, or who desires to get into the recreational marijuana industry can do is to speak with an experienced marijuana industry lawyer as soon as possible. Your attorney can tell you the current state of the laws, and make recommendations based upon how things are moving in the near future. This is not to say that everything you wish to do with your business will be possible, but things may not be as bleak as they seem at first.

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

Additional Resources:

Crowdfunding site shuts down campaign for California cannabis farm fire victims, October 18, 2017, By Brooke Edward Staggs, The Cananbist

More Blog Entries:

New Bill: Police Must Return Seized Marijuana or Pay Compensation, May 15, 2014, by Cannabis Law Group

The Transportation Niche Hardcar Security has found a way to help cannabis owners protect their assets. The Desert Sun reports that the armored car service has about twenty-five regular clients, mostly in Northern California, who hire their drivers to transport cash for payment of suppliers, taxes, and other expenses. The drivers are also hired to transport inventory for cannabis businesses. Hardcar anticipates its business will triple or quadruple in size in 2018 once business licenses are issued for legal sales of recreational marijuana. The company’s founders met while working in security technologies in China. The two closely followed the marijuana market, and decided to set up shop in California after observing the expanded cannabis market here. They prioritize the hiring of military veterans, due to veterans’ unique understanding of security needs, and their ability to respond to hostile threats and environments. Interestingly, the federal prohibition on marijuana even affected Hardcar’s business startup. Its founders were denied services from the federal Small Business Administration. They had to rely on private investors and loans instead of federal services (including traditional bank loans). The company reports that many other businesses refuse to work with Hardcar because of their affiliation with the marijuana industry. Yet, with the huge growth potential of the industry, the company has been able to thrive in spite of these challenges. Legal Protection from Seizure of Assets Of course, all the security technology in the world will not protect cannabis business owners from raids and seizures by federal authorities. Many landowners who rent space to marijuana collectives are receiving threats of property seizure from the Drug Enforcement Administration. Farms and dispensaries continue to be raided by federal authorities. Without the proper legal counsel, their assets are often seized and forfeited forever. Proper planning in the formation and operation of a marijuana business can both reduce the risk of facing a law enforcement raid, and also offer greater protection and legal defense in the event that assets are seized. Legal tools can be as important as security technologies in protecting the assets of a marijuana business. An experienced Los Angeles cannabis asset protection lawyer can business owners protect their cash and inventory. even with the logistical challenges presented by conflicts in state and federal law. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: Meet the two guys using armored cars to move money and marijuana across California – legally, August 28, 2017, by Rosalie Murphy, the Desert Sun More Blog Entries: Cash Demanded for California Marijuana Dispensary Taxes, February 24, 2016, Cannabis Law Group