To explain the significance of this, we have to step back a bit to examine the historical context. Cannabis companies run into all kinds of legal stumbling blocks in the simple course of doing business. Matters like banking, transportation, real estate purchases/rental agreements, security, insurance, employment, etc. – all of these things are more complicated than they would be for typical businesses. Despite state-level laws that legalize marijuana cultivation, production, sales, and possession (such as California’s Proposition 64), the U.S. Controlled Substances Act still classifies cannabis as a Schedule I narcotic. This has resulted in much confusion about practical applications for state-legal cannabis companies just trying to conduct regular business.

One legal concern that has cropped up in the past couple years deals with the transport cannabis company cash – particularly when it involves crossing state borders. Because of federal banking regulations, cannabis companies tend to deal primarily in cash, which can pose some practical challenges. Moving that cash from one point to another is not as simple as a digital transfer. It may require physical transport. But in the course of doing so, several companies found themselves smack in the center of federal civil forfeiture cases wherein the government seized the cash, on the basis of it being tied to illegal drug trafficking.

Civil forfeitures, also sometimes called civil asset forfeiture or judicial forfeiture, is a highly controversial process whereby law enforcement/government agencies to seize – and keep – property and other assets that belong to persons suspected of committing a crime. Forfeitures can happen as part of a criminal case, but in civil forfeitures, no crime need be proven in a court of law in order for the government to keep those assets. Some have likened it to “highway robbery,” except it’s fully legal. The laws were written to target criminal organizations, fugitives, terrorists, etc., but have been used in many cases against state-legal cannabis companies.

As Los Angeles marijuana business lawyers can explain, these scenarios involving cannabis companies have puzzled legal scholars because they fall into something legal gray area – thanks to the patchwork of conflicting state and federal pot laws.

This brings us to the federal cannabis civil forfeiture case that was recently dismissed. About a year ago, an armored truck transporting $165,000 cash profits from legal medicinal marijuana sales in Missouri to a credit union in Colorado (which allows both medical and recreational marijuana) was stopped by authorities in Kansas (where marijuana is not legal for any purpose). The cash was confiscated, and federal prosecutors in Kansas City argued that civil forfeiture was lawful because the cash could be traced to marijuana sales, in violation of the U.S. Controlled Substances Act. Similar incidents were reported in California, too.

The company whose cash was seized fiercely contested the forfeiture, and actually filed a lawsuit to get their money returned. That lawsuit asserted that state and federal law enforcement acted illegally in initiated pretextual stops specifically to seize cannabis company vehicles, cash, and other assets for the purpose of civil forfeiture because they knew such actions would be lucrative. (Civil forfeiture allows for equitable sharing of the proceeds between federal and state authorities where they collaborate on such actions.)

Late last year, federal authorities in California agreed to return some $1 million seized from cannabis companies in a similar civil forfeiture action involving the same company. In return, the company agreed to drop its lawsuit against the government.

Now – and without any real explanation – federal prosecutors in Kansas are doing the same thing, which means the $165,000 seized will be returned. Prosecutors’ brief was just five sentences and did not elaborate on the decision to drop the case, but it was expected after the California case – with a nearly identical fact pattern – was dropped as well.

If you are a cannabis company doing any sort of business, advertising, or transport across state lines, it is imperative that you work with an experienced cannabis business lawyer who can review your policies and practices and make recommendations to ensure you’re protecting your products, your profits, and your people.

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:

DEA Asset Forfeiture, DEA.gov

Voters in Colorado recently passed a ballot initiative during the recent election that makes it lawful for adults to buy, possess, and use a number of psychedelic substances, including:

• Dimethylryptamine (DMT). Sometimes called DMT, Dimitri, or Spirit Molecule, this naturally-occurring tryptamine that occurs in many plants and animals. It can also be reproduced in a laboratory. It’s used recreationally in the U.S. and the U.K., but has a long history of use by various cultures for ritual purposes. It’s a Schedule I narcotic under the U.S. Controlled Substances Act.
• Ibogaine. This is a naturally-occurring psychedelic derived from a Central African shrub. It’s rarely used recreationally, but has shown some anecdotal success in helping treat conditions like post-traumatic stress disorder (PTSD) and addiction.
• Mescaline (excluding peyote). This is a naturally-occurring, hallucinogenic alkaloid found in a fast-growing cactus that has effects comparable to LSD and “magic” mushrooms. Despite its state-legal status, it remains on the list of Schedule I narcotics under the U.S. Controlled Substances Act.
• Psilocybin. This is the naturally-occurring psychedelic compound found in some 200 species of fungi.

The measure, Prop 122, was approved by 52 percent of Colorado voters – roughly 1.2 million people. That news comes just two years after 55 percent of voters in Oregon agreed to make recreational use of psychedelic substances legal. Beginning in 2023, people in Oregon will be able to use one of those – psilocybin – at licensed service centers, but not in their homes.

Prop 122 comes a decade after Colorado and Washington became the first states to legalize recreational marijuana for adults and 26 years after California became the first state to legalize medicinal marijuana. As it stands today, 21 states plus the District of Columbia offer legalized cannabis for adults. Five states had recreational marijuana on the ballot this year, with voters in two of them – Maryland and Missouri – approving those measures.

Growing Acceptance of Psychedelic Substances

Even though the federal government continues to cling to the Schedule I classification of these substances, research by many prominent universities has indicated psychedelics may hold very promising potential in larger treatment plans.Numerous studies in recent years have concluded that psychedelic substances can be beneficial for a broad range of mental health conditions (PTSD, chronic pain, anorexia, addiction, etc.). Even the U.S. Food & Drug Administration conceded in 2018 that psilocybin is a “breakthrough therapy” for treating severe depression.

A number of states have set aside funds in recent years to study the potentially therapeutic impacts of psychedelics – psilocybin in particular. Connecticut, Utah, Texas, Washington State, and Maryland are among those funding research. Several cities have approved decriminalization measures, including Oakland, California.

That’s not to say the conclusion is foregone. Last year, California Senate Bill 519, a measure that would have decriminalized possession and non-commercial sharing of psychedelics for those over 21, failed to gain sufficient traction. The author of that bill noted that trying to address drug use by arresting and incarcerating as many people as possible isn’t effective, and said a new approach is necessary.

This is almost certainly going to crop up again in California. Even if there are a few fits and starts, we anticipate an ultimately favorable outcome.

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:

Colorado just legalized ‘magic mushrooms,’ an idea that’s growing nationwide, Nov. 12, 2022, CNBC

Los Angeles athlete marijuana lawyers are aware now of a growing number of companies promoting cannabis as a means for recovery after a significant athletic feat. Whether it’s running a marathon or testing one’s endurance in a yoga session, cannabis has potential power to help the body heal from the strain such exertion can cause. A few sporting goods and activewear companies are teaming up with cannabis innovators to promote the use of cannabis in recovery.

In one case, as Los Angeles Magazine reports, one pop-up pot provider in Culver City incorporates the use of medicinal-grade marijuana with other rest and recovery techniques like yoga, hot stone massages and meditation. The anti-inflammatory effects of cannabis and CBD oil are touted as a means of easing pain and helping athletes get the rest they need to make a full recovery.

Most Sports Leagues Still Bar Athlete Cannabis Use

Athletes have long touted the medicinal recovery value of marijuana as part of their training routine. How widely it will catch on isn’t known because many colleges and professional sports teams routinely drug test, and marijuana isn’t on the list of prescribed pain medications.

Last year, USA Today reported on a survey of NBA players indicating an estimated 85 percent of teammates use marijuana. In the NFL, where physical exertion and serious injuries are higher, some put the rate of use at as high as 89 percent. Because marijuana is on the list of banned substances for the leagues, players who test positive for marijuana can be fined, suspended or even terminated. Yet players on record with the news outlet said even the general managers, coaches and presidents used the drug as well.

Kyle Turley, who spent a decade as an NFL offensive lineman, said publicly he became a vocal advocate for cannabis after incurring chronic traumatic encephalopathy as a result of more than 100 concussions he sustained while in the NFL. To treat his pain, he turned to legal opioids prescribed by doctors, but this quickly snowballed into addiction. He now says medical marijuana saved his life, and that he would not be where he is today were it not for that.

What Science Says About Weed and Athlete Recovery

Part of the problem with proving marijuana’s medicinal effects on recovery after athletic exertion is that researchers have not been given free range to study it. One of the major concerns is that marijuana is only beneficial if someone is chronically or terminally ill, otherwise it causes harm. But as Harvard medical doctors told Men’s Journal, there is strong evidence cannabis does have valuable medicinal properties. Proving this, though, is going to require scientific backup – and there is scan funding for such research when it might run afoul of federal law.

The effect of cannabis on muscle protein synthesis does not seem to be of note. There is some anti-inflammatory component, but what we don’t know is if it works at any sufficient magnitude to help heal muscle damage – which in turn would help an athlete return to their sport faster. It can also help with the side effects of delayed onset muscle soreness, which again, can get a person back into the gym faster. It’s also noted to help with chronic pain, per study conducted by the National Academies of Sciences Engineering and Medicine.

If an athlete from high school to professional runs afoul of their organization or league for testing positive for marijuana, an athlete cannabis lawyer can help represent players in meetings before state boards, employers and more.

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

Additional Resources:

This Pop-Up Is Helping Athletes Incorporate Cannabis into Post-Workout Recovery, March 2019, Los Angeles Magazine

More Blog Entries:

Legal Marijuana Toke Prompts Pentagon to Review Security Clearance of Tech Billionaire, March 21, 2019, California Athlete Marijuana Lawyer Blog

Los Angeles marijuana lawyers had seen many long-time operators on the California cannabis scene try to work their way into the newly-forged legal market to finally be legitimate, only to end up continuing to work the riskier – bit more lucrative – illicit market. This includes unlawful medical marijuana collectives, cannabis delivery services and cultivation farms that haven’t been properly vetted according to stringent state law.

Some of these individuals are focused on pursuing “OT” money, generated from “out-of-towners.” Of course, such sales are especially risky because, as our Los Angeles marijuana lawyers know, rules can vary from city to city and certainly from state-to-state and country-to country. Black market sales are playing with fire given the uncertainty of how federal authorities are going to handle future sales. Despite the Jan. 1st legalization of recreational use and sales in the Golden State, cannabis is considered an illegal crop from the top-down under the Controlled Substances Act, and as a Schedule I narcotic, it’s one of the most most heavily regulated – despite being one of the most commonly-cultivated and sold. And it’s going to be extremely difficult to move away from that given its history with illicit sales and use.

Earlier this year, Gov. Jerry Grown put forth a measure that would set aside an additional $14 million from the state budget to police illegal sales of marijuana in California. The idea was to give the state attorney general five teams that would focus on large-scale illegal marijuana operations with big financial and tax fraud schemes. However, it was ultimately tossed early in the summer when neither side could agree how they were going to pay for it.

Los Angeles marijuana lawyers have seen that six months since the city rolled out its own rules and became the largest legal marijuana market in the U.S., we’re still beset with unlawful marijuana sales and businesses. In fact, most agree it is the majority of the market.

Los Angeles Marijuana Lawyers Anticipated This Issue

This was not an unexpected problem. The primary reason for this issue is any would-be cannabis business in this community is beset by a host of daunting financial demands. These involve not just taxation, but the regulation for things like security and building code upgrades, product quality testing and, yes, attorneys’ fees to ensure compliance. (Though, we’d argue attorney’s fees are much more reasonable and cost efficient than coping with a criminal case.) They must pay for things like workers’ compensation and pesticide control. There are also additional regulations that must be sifted through that can vary from county-to-county, city-to-city. On top of that, there is a 15 percent excise tax plus a sales tax and certain local fees. Some say this encourages customers to look elsewhere for cheaper marijuana options (and Los Angeles marijuana businesses may go where margins are wider).

There was an effort in Sacramento that sought to lower the bar and make it easier for these unlawful operations to “get legal” by lowering the excise tax there to 11 percent, but it ultimately was put aside for the time being.

Our attorneys have read about some L.A. dispensaries trying to sidestep the issue of hefty taxation by operating an above-board store front on one end and selling black market stock for 40 percent less out of the back to help bolster their incomes. That is taking a huge risk, and those companies need to discuss their concerns with a dedicated marijuana attorney.

For some, it’s not even so much about the money as it is the disgust for cannabis corporatization, which rubs many of the industry founders the wrong way. As Los Angeles marijuana attorneys who have been invested and advising the L.A. cannabis industry since it was first forged, we certainly understand this. But what you do not want to do is toss caution to the wind and risk forever forfeiting your shot of operating fully above-board.

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’s Illegal Weed Industry Is Doing Better Than Ever, Sept. 6, 2018, By Hayley Fox, VICE News

More Blog Entries:

Los Angeles Logjam in Marijuana Business Licensing and Lawsuits, Nov. 10, 2018, Los Angeles Marijuana Lawyers Blog

Having an experienced Los Angeles marijuana attorney who understands not just the new law and local regulations but the complexity of this city’s history with the drug is imperative if you want to establish a successful business.

Technically, there are 169 licensed marijuana shops in the city of L.A. In reality, the L.A. City Controller estimates there are probably closer to 1,700 in operation. These operations may fly under the radar, but they’re taking a big risk. If there is one thing we’ve learned in our years of practicing California marijuana law, it’s that nothing is certain. However, your best hope is a cannabis law firm dedicated to helping you navigate the road map to success.

Los Angeles Marijuana Lawyers and the Regulatory Business Maze

Recently, online journalism outlet Curbed published an excellent, in-depth piece detailing the legal quicksand to which so many marijuana businesses in the city have fallen prey. This is well understood to be one of the most cutthroat, complicated and backlogged legal cannabis markets in the whole country. Part of that has to do with the fact that most of these entities clawed their way into this quasi-legal niche, coping with the burdens of serious security risks, cash-only enterprises and the constant threat of a federal government raid.

When other local cities were allowing medical dispensaries to operate openly many years ago, Los Angeles leadership stalled. That led to major problems, as businesses were placed directly in the cross-hairs of law enforcement and prosecutorial whims. As most cannabis businesses in California know, state sanction is important, but local government license is equally so. Any business owner in L.A. – marijuana or otherwise – knows how tough local regulations can be – the patchwork of ordinances, the ire of neighbors, approval from at least two separate local governing bodies (city and county) – not to mention that what most consider “L.A.” is in fact 88 different cities plus more than 2,600 square miles of unincorporated Los Angeles County. Each has their own people. Their own processes. A number of those want nothing at all to do with the cannabis industry. In addition to marijuana lawyers, it’s not uncommon for start-ups to bring on consultants, lobbyists and PR firms.

There was the 2010 ordinance stipulating only dispensaries operated by the same owners and managers who registered three years prior could keep shop. That was later tossed by a judge. A lottery the following year fell through after a state court judge held any city licensing businesses outlawed by federal government could themselves be subject to federal sanctions. Then the city voted the next year to ban all dispensaries, but then that was overturned months later. In 2013, the city council approved a ballot measure extended limited immunity for the 135 existing registered marijuana dispensaries. They weren’t exactly legal and they weren’t guaranteed protection from the feds, but if they toed the line, they had a decent shot at being left alone. The rest would be shuttered.

Looking back, most recognize that last move was an utter flop. For every site forced to close, two more cropped up. Those dispensaries on the protected list started flipping to cash out and exit the high-risk venture. Wealthy investors who could better afford to lose a few million dollars were the most likely to enter the fray and take the risk. Meanwhile, hundreds of small-time store owners were left to grapple with criminal charges, civil property forfeitures and financial ruin.

Further complicating matters are the complex racial undertones of the failed war on drugs – the one that decimated minority communities. City leaders have stated a desire to make good on remedying this ugly past by giving priority to minority marijuana businesses. (This shameful trend continued even when shops started coming above-board, as business owners of color more frequently went to prison for trafficking offenses, even though white dispensary owners were just as likely to have prior involvement in illicit drug trade.) Evening the playing field is a worthwhile goal, but one that undeniably has resulted in further bureaucratic slow-downs.

The end result of all this is that most marijuana businesses are still involved in what may be interpreted as criminal enterprises, while some of the less than 170 licensed cannabis stores, must run by companies of significant means, are shielded.

Even when Prop. 64 was introduced and widely expected to prevail, Los Angeles took a hands-off approach on regulatory framework. Only when cannabis businesses in L.A. successfully unified long enough to get a favorable measure on the ballot was the city moved to write its own. Passed last year, the law promised stores that registered nearly a decade ago would get top priority, but the rest wouldn’t be shut out. Still, most of the rest are waiting with no clear timeline on when additional licenses might be issued. The Department of Cannabis Regulation, the agency responsible for issuing new marijuana business licenses in L.A., has yet even to be funded. Until then, only a fraction in the city are legal.

Many place the blame on L.A.’s lack of progress on the two previous city attorneys, though realistically, there were numerous factors and interests at play.

So today, there is still a fair amount of guesswork. However, given the longevity of our firm, satisfaction of our marijuana business clients and successful track record is what sets our law firm and Los Angeles marijuana lawyers apart from the rest.

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

Additional Resources:

Los Angeles vs. legal weed, Oct. 24, 2018, By Amanda Chicago Lewis, Curbed.com

More Blog Entries:

California Cannabis Growers Grapple with Regulation, Oct. 8, 2018, Los Angeles. Marijuana Lawyer Blog

Approved by the majority in the California legislature and the governor on Sept. 30, the law (which creates creates Section 11361.9 to the California Health and Safety Code) is in direct response to the Control, Regulate and Tax Adult Use of Marijuana Act, and requires the Department of Justice by July 2019 to review state records and identify those prior convictions that may possibly be eligible for recall, dismissal of sentence, dismissal, sealing or redesignation under the new law. The state Justice Department will then be required to notify prosecutors of all cases in their jurisdiction that meet this requirement. Then prosecutors must, by July 2020, review all those cases to ascertain whether they wish to challenge the DOJ’s recommendation. If there is no challenge, the bill requires the department to modify the criminal history information in its database in accordance with the bill within 30 days (by July 31, 2020), and to update the post on its website. The state will be required to reimburse local agencies and school districts for whatever costs are incurred by the state as a result of putting this law into effect.

The state will prioritize cases of those individuals currently serving a sentence or who proactively petition for recall or dismissal of sentence, dismissal and sealing or redesignation (emphasis added). That means that if you take matters into your own hands to ask the state to make your case a priority – and complete the process sooner – you may well have your record cleared before the July 2020 deadline. That could be major for many people with existing criminal records, who may be prevented from important educational, career and housing opportunities, as well as those who may be in the midst of a child custody dispute during which a drug conviction could adversely impact the outcome.

California isn’t the first state to take legislative action to allow retroactive remedy for those with prior cannabis convictions. Oregon did so when it legalized marijuana four years ago. Similar laws exist too in Massachusetts, New Hampshire, Massachusetts and Maryland. Cities like San Francisco and San Diego also have laws that give those with prior convictions on certain marijuana crimes (possession, cultivation and manufacturing) to have avenues to have their records expunged or sealed. However, this is the first statewide measure that effectively automates that process. It’s estimated nearly 220,000 Californians will benefit from this process.

However, if you want a faster path to having your marijuana criminal record expunged, speaking with an Orange County marijuana lawyer with experience in criminal defense and evolving marijuana laws is your best option.

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

Additional Resources:

Marijuana reform: New California law gives people with records a do-over, Oct. 1, 2018, By Lindsay Schnell, USA Today

More Blog Entries:

Danger of ‘De Facto” Cannabis Legalization for California Neighbors, Oct. 7, 2018, Orange County Marijuana Defense Attorney Blog

The U.S. Food and Drug Administration (FDA) issued a release soliciting public comment regarding the potential or actual abuse, medicinal uses, trafficking dangers and impact of scheduling changes on its availability for medical use of marijuana (as well as a number of other substances that are currently being reviewed internationally) for information to put in its won review to the WHO.

Why Rescheduling Marijuana Matters L.A. marijuana attorneys recognize most of the legal challenges that the cannabis industry confronts – from banking to investment to insurance to property disputes – so much of it comes down to the fact that pot is illegal under U.S. federal law – plus international law, per global drug policy agreements. It is in the most restrictive category of scheduling, meaning even research is supposed to be severely restricted. Technically, countries signed on to the global drug treaties aren’t supposed to turn around and legalize the drugs on that list, but that didn’t stop Canada or Uruguay.

Comments gleaned from the public will be weighed by U.S. policy officials with the FDA in preparing comment to submit to the WHO, which intends to use this recommendation to decide whether it should adjust national or international controls.

WHO’s Expert Committee on Drug Dependence announced earlier this year that a component of cannabis, cannabidiol, that has medical benefits absent intoxicating effects, shouldn’t be classified as a Schedule I per international drug control conventions. It’s generally considered to have a positive safety profile, and there isn’t evidence to indicate that it is prone to abuse the way THC is, according to the agency. Preparations to de-schedule pure CBD were recommended.

The committee has agreed it will initiate an critical, in-depth review of the cannabis plant, resins and extracts, as well as the active ingredient THC. It was this review that sparked the FDA’s request for public comment. Similar comments were sought by the administration prior to an earlier pre-review on the drug by the UN.

Evidence-Based Policy for Marijuana

What Los Angeles marijuana attorneys and other marijuana advocates hope is that by turning a critical eye to the hard facts of marijuana’s effects, the federal government will inevitably conclude reform at home is necessary. As the deputy director of NORML stated, cautious analysis of pertinent scientific review has never resulted in support of a hard-line marijuana scheduling approach. In fact, compared to other legal substances like tobacco, prescription drugs and alcohol, the potential for marijuana abuse is minimal, and certainly doesn’t warrant the ongoing criminalization of the drug under either international or national law. Instead, prohibition is not a logical, impartial response to this type of public policy matter which – in the worst case scenario – is a public health concern (not even a risk). There hardly any justification for continued classification as a dangerous drug.

A spokesman for the Marijuana Policy Project agreed, saying it’s long past time federal drug schedules be revisited, particularly with regard to marijuana, which we know has significant value as a medicine and also is objectively less harmful than a number o medical products that are already legal.

True, pot is not not entirely harmless. But that’s true of pretty much any product. Given that the U.S. was the one who ushered in the era of marijuana prohibition, it seems only appropriate we be the one to take us out of it. If we were basing decisions on evidence-based policy, descheduling marijuana makes the most sense.

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

Additional Resources:

Trump Administration Seeks Public Comments On Marijuana Reclassification, Oct. 10, 2018, By Tom Angell, Forbes.com

More Blog Entries:

Danger of ‘De Facto” Cannabis Legalization for California Neighbors, Oct. 7, 2018, Los Angeles Marijuana Lawyer Blog