cannabis-related activity is still banned: No recreational sales, no medical sales, no commercial growing, no testing, no distribution, no manufacturing. Residents can grow indoors for personal use or if they are a caretaker, but that’s it.

Still, officials know of more than 70 unlicensed sales operations in the city. Law enforcement agencies are stretched thin, however, so they have to prioritize their time and resources.

They recently focused their efforts on one specific dispensary, according to High Times, which was reported to be selling high-potency cannabis candy wrapped in packaging that was appealing to children. Agents seized 150 pounds of the candy and more than $200,000 after a two-month investigation of the dispensary. Six dispensary operators were given misdemeanor marijuana citations.

When it comes to sales of marijuana, which is still considered an illegal Schedule I narcotic under the federal Controlled Substances Act, 21 U.S.C. Section 812, it wouldn’t seem like packaging would be the top priority for law enforcement. However, keeping cannabis out of the hands of children has been a prevalent and important theme for everyone in the legalization process. No one on either side of the issue wants to see cannabis in the hands of children. Relevant restrictions have included keeping cannabis retailers a certain distance from parks, schools, and places where children regularly frequent, as well as making sure tax money is allocated for education and prevention programs geared at students. Further, regulations dictate that “packages and labels shall not be made to be attractive to children,” according to Medicinal and Adult-Use Cannabis Regulation and Safety Act Sec. 74. This is similar to cases involving cigarettes and branding that were deemed appealing to children, such as Joe Camel on Camel Cigarettes. The intent is to reduce the allure of cannabis to children or teens, or like it might be something they would enjoy. In the case of the cannabis candy, the packaging featured cartoon characters with silly names. Unlike cigarettes, candy is something children already consume, so there’s a real risk a child might eat the candy not knowing its true contents, which is something no one wants to see happen. Further, it was determined the candy was above the legal limit of THC for edibles.

If there’s one thing our Los Angeles marijuana business lawyers want our clients to know, it’s that you must, must, MUST run your business cleanly and in compliance with all laws. We understand this can be difficult to do with city laws constantly in flux and a sometimes complex combination of state and local regulations, but naiveté is not a viable defense. We also know marijuana has a playful air to it, so silly packaging might seem harmless or in line with your brand, but that doesn’t mean it’s allowed. Our lawyers stay on top of the law as it forms, and we have extensive knowledge of regulations. We can guide you through basic business decisions so you don’t make simple, but costly, mistakes. Remember, cutting corners on compliance early on can cost you big time down the road.

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:

Fresno Police Raid Marijuana Dispensary and Seize Candy on Concern Children Might Eat It, May 2, 2018, By Lewis Griswold, The Fresno Bee

More Blog Entries:

Los Angeles Medical Cannabis Candy Makers Speaks to Parents about Concerns, Oct. 12, 2016, Marijuana Business Lawyers Blog

After Proposition 64 passed, much of the regulation of both medical marijuana and recreational marijuana sales feel into the hands of several state agencies, including a newly created marijuana agency. However, the cities and local municipalities still get to decide on various issues related to the recreational cannabis industry. This includes regulations that pertain to licensing stores within their respective jurisdictions, whether they should apply a local tax to the sale of marijuana for recreational use, and various other issues.

As our Los Angeles recreational marijuana business attorneys can explain, the local municipality will also have the right to decide if on-site consumption will be allowed. This is a big deal, because many people are interested in the coffee shops that have become famous in Amsterdam where you can order marijuana from your budtender and smoke a joint while sitting at the bar. This would obviously be great for marijuana tourism, which is also becoming big business. This will also affect whether restaurants will be able to serve cannabis edibles for consumption on the property.

Marijuana edibles have come a long way since the humble days of the pot brownie and are a concern. These days, we have five-star chefs making gourmet meals that use cannabis oils as ingredients. There is an area where the right investors can make a lot of money, but any time you are dealing with prepared food for sale, there are additional requirements from the health department that must be followed in addition to the marijuana related regulations.

Another area that the local government has the right to regulate deals with whether home delivery of marijuana will be allowed and whether marijuana can be stored in warehouses in city limits. This is important, because there are a lot of complaints about the smell from warehouses full of marijuana, and there is a risk of crime, as some of these businesses have become targets for robberies. Part of this problem is because the federal government does not allow marijuana business owners to store their money in banks, so many of these businesses will commonly have a lot of cash on hand, and this makes them targets for burglary and robbery.

This is due to the fact that, because medical marijuana or recreational marijuana is still illegal on the federal level, any money made from these industries can still be called proceeds of a crime. Any bank that knowingly takes money that is proceeds of a crime can be fined or shut down if FDIC or FCUA insures them, which is pretty much every bank in America.

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

Additional Resources: WeHo City Council Contemplates Regulations for Recreational Marijuana Shops, May 2, 2017, By James Mills, WEHO Ville

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