As longtime Los Angeles cannabis business attorneys, we help break down what legislators are after.

The new bill, introduced by Democrats and Republicans in both the House and Senate, is titled the, “Breakthrough Therapies Act.” It seeks to revise the U.S. Controlled Substances Act by establishing a procedure through which certain Schedule I narcotics can be considered “therapies” by the U.S. food & Drug Administration. Either that, or they could qualify for a waiver via the U.S. food, Drug, and Cosmetic Act (FDCA). This waiver would allow the drugs to be transferred under a lower-schedule classification to research facilities and pharmaceutical laboratories.

The bill says that drugs that meet certain criteria making them eligible for legitimate research could be rescheduled as Schedule II medications – which are heavily restricted, but accepted for certain medical uses.

The bill notes that substances like psilocybin (what’s found in so-called “magic mushrooms”) and MDMA (also known by the street name “ecstasy”) have already been identified as having potentially significant value in the treatment of conditions like addiction, depression, and post-traumatic stress disorder (PTSD). If Congress passes the bill, it would do away with rules and regulations that are unreasonably overbearing and either delay or outright prevent research that could be potentially very valuable for those struggling with serious and potentially fatal mental health conditions. Sen. Corey Booker (D-NJ) identified the patients who could benefit from this research as “urgently needing care.”

Across the aisle, Republican Senator Rand Paul (R-KY) said he was “proud to co-lead this legislation,” which he hopes will compel the government to take a backseat and allow doctors, scientists, and researchers to do the work necessary to determine whether these substances can prove a greater benefit to those grappling with mental health and addiction issues.

An older version of the same bill left out provisions that would have simplified the registration process and paperwork researchers needed to complete to request a reschedule of certain Schedule I narcotics.

As Los Angeles marijuana and CBD lawyers, we know that scientists and doctors have long lamented the burdensome process that accompanies research of drugs restricted by the U.S. Drug Enforcement Administration under the CSA – particularly Schedule I drugs, which marijuana still is. A bill addressing this issue with respect to marijuana – the “Medical Marijuana and Cannabidiol Research Expansion Act” – was signed by President Joe Biden last year.

The new measure contains a provision that indicates any drug that is rescheduled from a Schedule I to a Schedule II for a breakthrough therapy or via a waiver could still be reverted back to a the high-level Schedule I if it’s established that there isn’t any accepted medical use absent the strictest of regulations. The process for doing so would require a recommendation from the leadership of the U.S. Department of Health & Human Services to the U.S. Attorney General’s Office. From there, the AG’s office would have three months to issue a final ruling regarding the drug’s scheduling.

A separate bill introduced last year called the “Right to Try” law would have given very ill patients the opportunity to take Schedule I narcotics (including psychedelics) under the recommendation of a physician. That measure, however, did not gain enough support to pass.

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:

Cory Booker And Rand Paul File Revised Bill To Reschedule Psychedelic Breakthrough Therapies, March 7, 2023, By Kyle Jaeger, Marijuana Moment

More Blog Entries:

Can California Cannabis Patents Survive Illegality Doctrine? Feb. 20, 2023, Los Angeles Marijuana Business Lawyer Blog

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

One such company, Eaze, a San Francisco-based online cannabis shopfront and delivery service, noted an uptick of 81 percent more women purchasing marijuana related products from the company, between 2018 and 2019.

With this shift, women now make up 40 percent of the company’s total customer base. Eaze also shared, that in 2018, women also accounted for 38 percent of its first-time deliveries, and that that figure grew to 43 percent in 2019.

If you need help with your online cannabis shopfront, our Californian marijuana business lawyers can help.

Making Changes to Reach Women While the National Institute of Drug Abuse statistics tell us men have long been heavier users of marijuana than women, the margin appears to be shrinking. Once companies see such large increases in the purchasing power of women, they quickly recognize the value in actively striving to appeal to female customers. But if changes need to be made to win women over, proceeding delicately is key, so as not to alienate the existing customer base.

Sheena Shiravi, senior director of marketing at Eaze, said the company is very mindful of offering educational content relevant to women, in settings they already frequent and enjoy. One example of how Eaze does this, is by hosting informative events at local fitness centers and nail salons.

Shiravi added that making sure products women enjoy are easily available on the platform, is very important too.

Appealing to New Users The most successful online companies definitely offer products that appeal to new users. CBD products and microdose products, for example, offer a certain comfort level as they allow a new user to ease themselves into cannabis.

Cannabis Use by Women of Different Generations Eaze noted the following demographic breakouts when examining female cannabis purchases across its platform:

• Baby Boomer women account for 46 percent of the segment (granting this demographic the narrowest of gender divides);
• Gen Z follows closely behind, with women comprising 40 percent;
• Millennial women account for 37 percent; and
• Gen X women make up 35 percent.

Product Preferences Eventhough Eaze has tweaked its product line and marketing strategy to appeal to women, the company says product preferences across gender, differed only slightly.

According to past purchases at Eaze, women are more likely to purchase:

• Edibles (six percent more likely);
• Pre-rolls (four percent more likely); and
• Topicals and drops (each three percent more likely)

While men are more likely to purchase:

• Flower (five percent more likely); and
• Concentrates (three percent more likely).

White-Glove Service Another San Francisco-based online cannabis shopfront and delivery service, Juva, strives to provide its customers with what it calls “white-glove service,” basically going above-and-beyond to exceed customers’ expectations as it delivers cannabis right along the San Francisco Peninsula, from San Mateo to Mountain View.

Juva works hard to attract, and keep its customers, not only by offering top-notch purchasing, education and customer support throughout its customer experience, but also by rotating generous deals. Loyal customers are rewarded with points that convert to store credit, and are encouraged to come back often to see new discounts and deals as they post.

Examples of current deals, targeting:

• First Timers – offered to all new customers, via 20% off their first purchase.
• Experienced – offered to all customers 55 years and over, who receive 15% off all purchases.
• Veterans – offered to all current and ex-military service men and women, who receive 15% off all purchases.

Implications If a trend is emerging here, we see that online platforms are taking very seriously the responsibility of educating the public on the benefits of cannabis use, and then are taking that next step of making it a very easy, convenient and comfortable experience to get cannabis out to those who need it most.

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: National Institute of Drug Abuse

In December, California investigators also raided unregulated storefronts throughout Los Angeles and confiscated illegal vape products. According to state testing results, many of those products showed as far less potent than labeling suggested.

In some cases, the oil cartridges THC contents showed to be only a portion of that claimed and were diluted more than one-third by undisclosed but likely dangerous additives.

Los Angeles officials tested a sample comprising more than 10,000 randomly selected illegal vape pens confiscated in those raids. Results showed three in four vapes contained the thickening agent vitamin E acetate, which federal regulators blame for the majority of lung illnesses linked to the national vaping health crisis.

“The prevalence of dirty and dangerous vape pens at unlicensed cannabis stores demonstrate how important it is for consumers to purchase cannabis goods from licensed retailers, which are required to sell products that meet state testing and labeling standards,” said Lori Ajax, head of California’s Bureau of Cannabis Control (CBCC).

Regulated Vape Products Are Safe According to the CBBC, to date, not a single vape disease case in California has been linked to a state-regulated source. Our Orange County marijuana lawyers believe test results show the source of the vaping health crisis stems from illegal manufacturers contaminating unregulated products on the illicit market.

Some confusion may exist among consumers, however, as the Centers for Disease Control and Prevention (CDC) fell short of evaluating the safety of regulated vape products. Instead, 16 percent of vape lung illness cases were linked by the agency to “commercial” sources which it deemed to include all “dispensaries, vape and smoke shops, stores and pop-up shops” without making the clear distinction between state legal and regulated outfits from unlicensed, illicit operations.

The licensed cannabis industry responded promptly and responsibly to the vape health crisis by quickly calling for tighter vape product regulation.

Federal Laws Restrict Research Efforts Because federal laws dating back to the 1970’s restrict researchers from studying the medicinal benefits of cannabis — still classified as a Schedule 1 drug, which by definition possesses no currently accepted medical use, plus poses a high risk for abuse — should a researcher in California wish to conduct investigations on cannabis use, those researchers would be at risk of federal charges, even though the state of California permits the legal use of cannabis.

Scientists widely believe this stance prevents the research community from conducting the high level of research required to secure an FDA approval for cannabis, even though early research indicates marijuana might even serve as a favorable alternative to opioids and other medicines.

Legal Implications If the United States were to legally regulate marijuana vaping products, as do countries like the United Kingdom, then the vaping health crisis may well disappear.

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: California’s Bureau for Cannabis Control U.S. Controlled Substances Act (Title 21 U.S. Code)

Imitation vape pens are not only hurting brand profits, they’re also sending consumers to the hospital. The Centers for Disease Control and Prevention (CDC) recently noted “anyone who uses e-cigarette products should not buy these products off the street.” That’s because this year alone, several people have been hospitalized suffering from severe respiratory distress after using bootleg vape pens bought from illegal dispensaries, in California and across the Midwest.

Experts believe there are a number of ways cannabis companies can work to protect their products and brands from counterfeits, such as:

• Securing legal trademarks for all products and brand names – this should be every brand or manufacturer’s first step in defense against knock offs.
• Closely auditing the product development supply chain – double checking each stage from seed to store may unveil leaks in the chain.
• Aggressively pursuing counterfeits in court – once a trademark has been established, then law enforcement has jurisdiction to go after the counterfeiters.
• Investing in hard-to-replicate product packaging – companies like California-based AuthentiBrand, develop a number of unique authentication solutions, such as custom made holograms, to help brands block bootlegs.

If you need help securing a cannabis product trademark, issuing cease and desist letters, or pursuing counterfeits in court, our Southern California marijuana business attorneys are here for you.

New Technologies Can Give Consumers Piece of Mind Another new tool brands and retailers are using to offer consumers a heads up on subpar cannabis products, is an online marijuana community called Weedmaps. There, users can review and discuss cannabis strains, as well as local marijuana dispensaries. To date, Weedmaps has helped prevent more than 15,000 unverified cannabis products from making their way into the hands of unknowing consumers.

Weedmaps for Retailers Retailers can demonstrate their legitimacy for consumers by gaining a Weedmaps Verified seal on their profile. To do so, retailers must first upload a menu of brand items to their Weedmaps store listing, and request a verification from each brand to confirm they are authorized partners. Once a brand accepts the retailer’s request, the retailer’s profile page receives:

• A Weedmaps Verified seal on their listing;
• Official, brand developed product information and images, posted to their listing; and
• Verified placement on product and store locator maps.

To help consumers determine where they can purchase regulated, safe marijuana products, Weedmaps allows users to filter cannabis store locator maps by brand, and choose to view only cannabis products that carry the Weedmaps Verified label. By highlighting the quality of products retailers are selling in their stores, this simple process helps legitimate cannabis business owners win back consumer trust.

Weedmaps for Brands To help weed out illegal cannabis outfits and unregulated products, a brand’s profile page on Weedmaps will only show retailers who have been authorized as verified partners. Brands are also free to reject retailer requests for partner authorizations, as they see fit. That means, unlicensed dispensaries and counterfeit goods will not receive verification icons, nor will they appear on brand pages. Effectively helping to inform consumers about where to buy cannabis safely, and disrupting the sale of unsafe products. Legal Implications So many unregulated cannabis markets across the United States offer perfect conditions for counterfeits to emerge. Given the scale and sophistication of bootlegging we’ve seen to date, cannabis brands must act quickly and take proactive steps to thwart the assembly, and sale, of knock off products, if they are to aid consumer safety, maintain customer trust and defend their market share. About Cannabis Law Group The Los Angeles CANNABIS LAW Group represents growers dispensaries, ancillary companies, patients and those facing criminal marijuana charges. Call us at 949-375-4734. Additional Resources: Centers for Disease Control and Prevention – Emergency Preparedness and Response Weedmaps

The Orange County Register reports The Pentagon is reviewing the federal security clearance of California tech billionaire Elon Musk following an on-air marijuana toke on a comedian’s podcast last fall. Musk reportedly refiled the SF-86 security form required of federal contractors and/or employees who seek security clearance. The form requires filers to answer truthfully whether they have used any illegal drugs at any point in the previous seven years. Musk reportedly had a higher-level secret clearance, thanks to his position spearheading a company (Space Exploration Technologies Corp. – SpaceX for short) that is permitted launch of military spy satellites.

The company’s day-to-day operations aren’t overseen by Musk, and the company won several national security space launch contracts in the wake of the podcast, but the Register reports it’s only with the refiling that Musk may have some issues.

Employers, Contractors Allowed to Set Ground Rules for Off-the-Clock Cannabis Use

Los Angeles marijuana employment attorneys know that while most people aren’t grappling with billions of dollars or military spy programs and top-level security clearance, many ARE dealing with employers who are leery of cannabis use.

Some key points for employees to know are:

• Federal law places very few restrictions on employer drug testing of employees or prospective hires.
• The right to drug test employees/potential hires extends beyond just those in government jobs to those in the private sector too.
• California courts have held that the employer’s reason for drug testing does need to be balanced with the right of the employee for privacy.
• State courts have held it is lawful for employers in California to require applicants to pass a drug test as a condition of employment – so long as all applicants for a certain position are tested and there is no singling-out of applicants on an unlawful basis.

Although California law allows individuals to use marijuana for medicine or for recreation, there is no requirement that employers must hire a person who tests positive for marijuana. In fact, the California Supreme Court has held that employers are not required to do so – even if they are prescribed the drug for a disability.

Still, employers may be on less solid legal ground in drug-testing existing employees, absent some reason to suspect drug use.

In most cases, one’s off-the-clock use of the drug in California is increasingly less of an issue, as the stigma of marijuana use subsides. But as Musk found out, even billionaires aren’t necessarily immune from the impact in some cases, particularly considering marijuana use remains a federal crime, despite the fact that nearly three dozen states have taken measures to decriminalize it.

How On-Air Use of Pot Could Impact Musk’s Security Clearance

Musk’s decision to smoke marijuana during a podcast discussion with comedian Joe Rogan highlights the discrepancies between state and federal law pertaining to marijuana, but as many federal attorneys noted, the security clearance challenges should come as no surprise.

Although it’s possible the U.S. Defense Department could simply close the case and update Musk’s record without issue, it should be noted that smoking marijuana is considered a “serious breach of security protocol” and rounds for termination of a federal employee or loss of clearance for a contractor. A department spokesperson said the agency doesn’t comment on individual applications, reapplications and reviews for individual security clearances.

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

Additional Resources:

Elon Musk’s security clearance under review over pot use, March 7, 2019, Bloomberg

More Blog Entries:

San Bernardino Cannabis Landlord Arrested in Raid at Her Home, March 11, 2019, L.A. Marijuana Employment Attorney Blog

According to VOANews.com, a number of colleges have launched four-year degrees in in marijuana-related studies, such as medical plant chemistry, marijuana policy and law. Courses focus on the technical, horticultural, legal, social and political impacts of the plant in all areas of society.

As a law firm that has been focused on representing California marijuana businesses for nearly the last two decades, it’s been encouraging to see these areas of study morph from something of a joke to a field of studies that even Ivy League schools are taking very seriously, fully intent on preparing students for a blossoming career field.

Northern Michigan University kicked off its four-year degree in medical plant chemistry two years ago after one of the school’s chemists attended a conference wherein cannabis industry representatives spoke of the growing need for more analytical chemists in the field. Individuals in these positions earn upwards of $70,000 a year – just to start. Two years in, the school has 300 students from nearly all 50 states enrolled in its program. A similar career path is offered at a state school in North Dakota.

Meanwhile, students attending college in upstate New York in Morrisville can minor in marijuana studies through the school’s horticulture department.

Although some students report getting sly grins or wisecracks from peers and even parents, the reality is many area earning four-year degrees in tough subjects like organic chemistry – areas o study that will prepare them to make a good living in a fast-growing field.

Some of these deal help to prepare students to enter the legal recreational cannabis market in states like California, while others are more geared toward a medicinal marijuana track and still others are designed to ready students for trade in the hemp industry. Students are learning to cultivate, research, analyze, process and market marijuana – a move that in the end is going to create a more refined crop of cannabis entrepreneurs – from pharmaceutical researchers to quality assurance lab directors to marketing specialists and edible product developers.

It’s estimated by Arcview Market Research that the industry is poised to support nearly 470,000 cannabis professionals by 2022.

Los Angeles marijuana lawyers see something of a wild card in the in states where the drug still remains illegal, or still illegal at least for recreational purposes. In the case of many states in the latter category (namely Connecticut, New Jersey and New York), schools are still offering these types of courses in anticipation that legalization is going to happen. It’s not a matter of if, but when.

Agricultural schools are launching horticulture programs, business schools are launching dispensary management curriculum, nutritional and medical fields too are increasingly widening to allow room for this new field. Every state that opens its doors to marijuana widens the field of opportunity for new professionals. Our cannabis attorneys expect this is a field that will continue to expand for years to come.

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

Additional Resources:

Higher Education: Colleges Add Cannabis to Curriculum, March 4, 2019, Associated Press

More Blog Entries:

Cannabis Industry Safety & Health A Growing Priority, Feb. 26, 2019, Los Angeles Marijuana Business Lawyer Blog

Furthermore, frequent use of more potent pot strains heightens the danger for these individuals.

Sounds scary, right? Certainly, it’s something that businesses in the marijuana trade would want to be aware, as it creates the potential for a civil product liability lawsuit. With popular support of legal cannabis only swelling, it’s not clear a small percentage risk will make a huge dent in sales, but given the gravity of the alleged condition, it’s worth exploring. But before anyone gets too paranoid, marijuana attorneys in L.A. urge a bit closer look. What you don’t see at first glance is:

No. 1. It was marijuana prohibition that pushed the plant to contain higher concentrations of Tetrahydrocannabidinol (THC), the chemical that gets you high.

No. 2. The regulation of marijuana, which includes caps on potency and lowers the risk of criminal penalties for selling or possessing larger quantities means it should not (and does not need to be) so potent. Newer strains sold in dispensaries might be slightly “weaker” than what you’re used to on the street, but they also tend to contain more of the second major chemical, Cannabidiol (CBD), which counteracts psychosis AND has all sorts of medicinal properties.

Let’s rewind back to the turn of the 20th Century, which is the time at which cities in America first began enacting bans on the drug (El Paso was No. 1 in 1914). A few years later, the Drug Enforcement Agency was born, in charge of enforcing alcohol prohibition. We know how that ended, but the head of the DEA didn’t want to simply shutter the agency. He started lobbying for prohibition on marijuana, ultimately with success in 1937 with the Marijuana Stamp Act, which outlawed all uses except scientific. (The arguments against use were rooted in racism and misogyny and misunderstandings about those from different cultures.)

Three years later, researchers discovered the CBD element in weed and didn’t think it had any active pharmacological benefit at all. Years later, we know it actually service to help treat anxiety, psychosis and addiction. It also offsets the psychosis of THC.

But because the drug was illegal and federal and state laws set penalties by the gram (not the potency), growers, buyers and users alike had an interest in making higher potency plants. These smaller buds could be sold for top dollar, and they were easier to transport and would result in (hopefully) a lower-level drug crime if you were caught. It only got worse as demand rose.

The National Institute on Health reports black market marijuana in 1995 tested for an average THC potency of about 4 percent. Fast-forward 20 years to 2014, and the average THC potency had tripled to 12 percent.

But that’s where Los Angeles cannabis lawyers see that legalization comes in: The amount of THC in a given product can be capped and monitored through a reliable testing process.

California regulation on marijuana edibles require that doses be marked in 10-milligram increments of THC and capped at 100 milligrams of THC per package.

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

Additional Resources:

How Cannabis Prohibition Has Made Marijuana More Dangerous, Oct. 22, 2018, By Jordan Waldrep, Forbes

More Blog Entries:

AP: California Cannabis Safety Testing Rate Poor, Oct. 12, 2018, California Cannabis Attorney Blog

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:

benefits of added tax revenue from recreational marijuana businesses pouring into cities that have chosen to legalize marijuana under Proposition 64.

In addition to taxes flooding into communities, so too are jobs, and people are answering the call. Recently in Sacramento, the Cannabis Job Fair had people standing in lines out the door, waiting for up to two hours, according to KCRASacramento, prompting planners to already set their sites on a bigger event next time around.

With such a burgeoning industry, workers of all levels are needed for success. The marijuana industry offers opportunities for those with skills in cultivation, testing, distribution, horticulture, production, kitchen work, sales, management, and more. But they also need people savvy in the typical tent poles of any industry, including finances, accounting, analytical tracking, marketing, and social media. That’s on top of the farmers across the state investing their abilities and resources in the cannabis market. This creates a wealth of possibilities for a diverse cross-section of people across the socioeconomic spectrum.Our experienced marijuana business lawyers in Orange County know events like this are the perfect demonstration that marijuana goes far deeper than the ridiculous stereotypes about lazy people just wanting to get high and be reckless. While opponents keep trying to peddle these misconceptions, hard-working, dedicated, and skilled Californians are stepping up to grow this multi-billion-dollar industry. They understand the profound benefit cannabis has had on its users and seek to apply their vast array of skills to connecting people and product in a classic tale of supply and demand. And in doing so are helping themselves, their families, and their communities as a whole.

Many businesses reported they expected to double their staffs by the end of the year, further evidence of the progress being made by the marijuana industry. While the backward agenda of Attorney General Jeff Sessions is trying to roll back progress, California is marching forward, along with a continually growing number of other states. The current administration talks a lot about the importance of jobs, but the Cannabis Job Fair shows how marijuana is actually putting Americans to work in sustainable jobs for people at all skill levels. Continuing to fight against the industry is fighting against good-paying careers. And keeping marijuana classified as a Schedule I narcotic on the Controlled Substances Act, 21 U.S.C. Section 812 is putting a target on the backs of entrepreneurs, business owners, and otherwise law-abiding citizens.

Our team of skilled attorneys is proud to stand alongside marijuana business owners in California. It’s why our services include marijuana collective consultations, business licensing, business plans, legal compliance, and more. We are in the business of helping your business. By taking advantage of our expertise, you can save yourself a lot of potential heartache in the long run by addressing compliance issues up front and avoiding costly fines and legal trouble in the future. We stay on top of the continually changing laws and apply those laws to your business so you don’t have to.

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:

Hundreds Line Up for Sacramento’s Cannabis Job Fair, March 4, 2018, By Mike Luery, KCRA

More Blog Entries:

Marijuana Industry Poised to Generate Many New Jobs, Jan. 4, 2017, Marijuana Business Lawyers Blog

Although there are many regulations that are fairly standard, such as outlines for growing and testing, the crop-size limitations are the two that have raised the most ire.

Many are concerned about the scope of these regulations and what they will mean for cannabis businesses – particularly smaller ones. It was largely expected that crop size limits would occur to some degree, but the final regulation only limits medium-sized growers’ licenses. That could potentially open the door for smaller and larger marijuana grow farms, but because large companies have deep pockets, the concern is that smaller businesses (which will have a tougher time landing loans) will be pushed out too. Business Insider refers to this as a potential oligopoly. Mass production by these larger players could drive down marijuana prices in the short-term, but eventually, absent sharp competition, these prices would rise. Speculation is that the state will even more heavily tax the product by as much as 45 percent, a cost that will ultimately be passed onto consumers.

On the flip side, investors in marijuana businesses could see handsome profits. Investors in the legal marijuana trade have always been taking a huge risk, largely because the plant is illegal at the federal level, and therefore assets and profits are vulnerable to government seizure. Beyond that, though, the marijuana industry has long been heavily fragmented. Regulations vary from city-to-city, and the majority of the market at this juncture is comprised of mom-and-pop operations. If that shifted to become a smaller number of larger businesses, that could give investors incentive and a clear path to profits.

Still, if the costs become unattainable for the average consumer, there is concern that legal operations won’t be able to keep pace with the black market, which will be problematic for everyone on numerous levels. If the tax rate is too high and only large cannabis businesses have any real shot at success, consumers will flock to the cheaper black markets, which will deprive the state of tax revenue and legitimate businesses of profits.

The 2016 Marijuana Business Factbook indicates the average startup of a dispensary in the U.S. is $325,000. This is almost exclusively backed by the founders’ savings and personal debt. Making matters worse for smaller operations is that if anything goes wrong (fire, robbery, other losses), cannabis businesses will have a difficult time obtaining bankruptcy protection, per a new memo from the Justice Department, citing federal marijuana law.

Existing and prospective cannabis entrepreneurs should carefully consider these barriers to entry and discuss their marijuana business plans with an experienced cannabis attorney.

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 Lawmakers Are Pushing Back Against Legalization Regulations That Favor Big Weed, Dec. 9, 2017, By Zach Harris, Merry Jane

More Blog Entries:

New California Marijuana Regulations Finally Released, Nov. 26, 2017, Los Angeles Marijuana Lawyer Blog

Because marijuana is still illegal at the federal level (a fact that seems unlikely to change under the current administration), federally-backed banking institutions are vulnerable to potential seizure of funds by the FDIC if they accept money derived from criminal activity. Essentially, these financial firms can be prosecuted for money laundering. The result is that the majority of marijuana businesses – about 70 percent – don’t have a bank account. There are only a few banks that will accept marijuana business clients, and they rarely advertise it.

As an article in The Economist recently noted, this fact put some cannabis farmers in Northern California in serious financial jeopardy when the wildfires consumed not only their crops, but their cash. In one instance, a cannabis genetics consulting firm lost $250,000 that had been stashed in a cabinet. Another cannabis cooperative in Medicino County reported the loss of hundreds of thousands of dollars by some 20 members who buried their cash and gold stashes – only one of which was buried deep enough to survive destruction.

Although Proposition 64 broadened the legalized use and sale of marijuana in California, it did nothing to ease the federal banking regulations that have financial institutions reticent to take work with cannabis companies. The reality is unless there is some action on this front at the federal level, these kinds of issues will continue to occur.

Our cannabis business attorneys in Los Angeles know that this federal-state conflict sets off a number of other issues.

Because these firms operate primarily in cash, they are at risk of robbery. Cannabis business owners know that if they want to stay operational, they must invest in tight security measures. This is further underscored by the fact that California’s new recreational cannabis regulations require minimal security levels, though most already have some type of system in place.

Authorities have expressed concerns that because these businesses mostly deal with untraceable cash, they will be targets – or facilitators of – public corruption, specifically bribes or kickbacks for profitable licensing and permits.

Another common issue is insurance coverage. We saw this with the recent wildfires too. Although insurance coverage would provide security for natural disasters, many marijuana businesses can’t afford the coverage.

One alternative to which some businesses are turning are so-called “cryptocurrencies.” These are transaction forms such as bitcoin that many are banking on being safer from prosecution, theft or natural disasters. As noted by a Bloomberg analysis earlier this year, these kinds of digital coin services create an intermediary that allows cannabis companies to use bank-issued credit cards for transactions. These operations are still transparent, but don’t require access to traditional banking services. Customers can use their credit cards to buy digital credits for a transaction fee and cannabis companies that accept that type of currency. These digital currency services say they have taken a number of steps to ensure compliance with federal law, but it’s important to discuss your business practices with an experienced marijuana lawyer for maximum protection from federal and regulatory scrutiny.

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

Additional Resources:

Marijuana businesses, excluded from finance, are forced to use cash, Dec. 6, 2017, The Economist

More Blog Entries:

Federal Banking Regulations Make Dispensaries Robbery Targets, Nov. 18, 2017, L.A. Marijuana Business Attorney Blog

Published in the American Journal of Public Health, the research examined the link between the legalization of recreational use cannabis in Colorado and the number of opioid-related deaths. What study authors discovered was one of the only places in the nation so far to have experienced a reversal in the upward trend of opioid deaths. Following the opening of the first shops selling recreational use marijuana in 2014, Colorado’s opioid deaths dropped by 6 percent over the course of two years.

Researchers were careful to say these findings are preliminary, and examine the just two years of data in a single state. However, those results are promising, and echo the voices of support have been saying from the beginning: Marijuana – which has far fewer risks compared to opiates – can be used as a substitute for those who might otherwise turn to more powerful (and dangerous) prescription drugs.

The findings aren’t a total surprise. A number of previous studies revealed a causal connection between the legalization of medical marijuana and a reduction in fatal opioid overdoses. This study, however, is the first to examine the impact of recreational use marijuana laws and their effect on drug overdoses.

Opiates are often prescribed for chronic pain, but we know marijuana is also a highly effective means of treating that same kind of pain – and with far less risk. In fact, the chances of dying of a marijuana overdose are about zero. Meanwhile, the National Institute on Drug Abuse reports that from 2002 to 2015, the number of opioid deaths nearly tripled. The number attributed to prescription opioid pain relievers during that same time nearly doubled.

Researchers here examined monthly trends in opiate overdose deaths in Colorado both before and after recreational marijuana hit the market. In order to control for the effect medical use may have had on the numbers, study authors compared Colorado to Nevada, a nearby state that during that period allowed medicinal use but not recreational use. Even when controlling for this, researchers still noted a 6.5 percent decline in prescription opioid deaths.

It will be important to determine whether the trend is going to continue – and also whether similar trends will be noted in other states like California, where voters approved a measure for recreational marijuana last year. The first California marijuana businesses selling recreational marijuana are expected to open in early 2018.

It’s also important to take into account the potential for other risks marijuana could pose, primarily being on the roads. Drugged driving is a serious issue and there is evidence to suggest it’s on the rise. However, the actual extent is unknown because all that’s really been gleaned is that more drivers involved in fatal crashes have marijuana in their system. That doesn’t necessarily mean they were impaired at the time of the collision or that marijuana intoxication played any causal role in the crash.

Meanwhile, we can see the concrete evidence that marijuana is saving lives when people turn to pot over pills.

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

Additional Resources:

Legal marijuana is saving lives in Colorado, study finds, Oct. 16, 2017, By Christopher Ingraham, The Washington Post

More Blog Entries:

California Department of Public Health Launches Education Campaign Ahead of Recreational Marijuana Sales, Oct. 19, 2017, L.A. Marijuana Business Lawyer Blog

Brand infringement is a serious, and potentially costly, risk. Companies are increasingly being proactive against this damage by monitoring their brand name and competition – especially online. Protecting yourself from such action, as well as protecting your own brand from infringement, is important.

When competitors, affiliates or other third parties take advantage of your brand by using your trademarks, ideas, products and keywords to confuse similar aspects of your brand as their own, it can cost you business. 15 U.S.C. 1114 outlines provisions for trademark infringement, innocent infringement and remedies. Our marijuana business attorneys in California can help.

Recently, an Ohio company that makes adhesive took legal action against a marijuana grower in Nevada for trademark infringement. Although the two products are dissimilar and are sold in very different geographic markets, the product name is identical. Defendant produces a potent hybrid marijuana strain that it has coined, “Gorilla Glue #4,” and it’s sold in dispensaries in some 24 states that have legalized marijuana. But the family-owned glue maker in Ohio says the branding of the marijuana company creates an unwanted connection, which plaintiff firm says is likely to harm its good name and branding.

Plaintiff is seeking unspecified financial damages, including any and all profits that were generated as a result of defendant’s sale of the aforementioned product. Specific allegations are trademark infringement, dilution, unfair competition and “cybersquatting.” Defendant is accused of trading on the goodwill and reputation of the Ohio-run glue company by marketing products under a confusingly similar name.

In a press release, defendant argued the entire marijuana industry is jam-packed with cultural references, and their brand is no different. The name, they argued, has nothing to do with the glue-making company. Rather, it was derived when a grower trimming a new plant strain realized the resin on the flower caused his hands to stick to his phone like glue. The Gorilla Glue marijuana strain has grown immensely in popularity since it was launched in 2012.

Of course, this is isn’t the first time this kind of litigation has arisen in the cannabis industry. However, it is arising at a time when the industry has much more clout that in the past, when underground guerrilla marketing was the norm. Defendant argues a loss for them would set a poor precedent for cannabis industry intellectual property rights. Plaintiff says the complaint has nothing to do with any negative stance on marijuana use – medical or otherwise – but rather that it’s valuable brand has been intentionally heisted by a company that played on its reputation for high-quality “sticky” adhesives.

Many cannabis companies are closely watching the outcome of Gorilla Glue Co. v. GG Strains, weighed in the Ohio Southern District Court, which it is believed could directly impact future trademark cases and intellectual property rights within the cannabis industry.

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

Additional Resources:

Gorilla Glue to weed grower: Dude, quit using our name, Aug. 16, 2017, By Randy Tucker, Cincinnati.com

More Blog Entries:

What the State’s New Accela Software Means for Cannabis Business Licenses, Aug. 4, 2017, Los Angeles Marijuana Lawyer Blog

Many people assume this cannabis industry is little more than buying and selling plants. The reality is that as technology has evolved, we are seeing ever-more sophisticated means of processing the drug, which has led to a host of offshoot industries, such as distilling and extraction.

Marijuana can be distilled much the same as liquor, producing stronger forms that can be manufactured into smaller products, such as perfumes, creams, pens and battery kits. Extraction equipment allows the drug to be extracted and used in everything from waxes to oils. Potent extracts can also be used in vaporizers – which may have triple the strength of a typical marijuana cigarette you might have found on the street in the 1960s.

In fact, according to a recent analysis by Brightfield Group, a marketing research firm, there has been a marked shift in the industry away from the so-called “flower use” of the drug, which involves different ways to use the buds. Flower use was most popular when the drug was totally illicit. However, as marijuana has emerged from the shadows, becoming more mainstream and accepted by state and local laws, businesses are finding more and more sophisticated ways of processing it. That means concentrates, such as those used in edibles and other products, are becoming more popular, while flower use has been falling out of favor.

That doesn’t mean we’ll see sales of loose marijuana drop off completely. In fact, that same research firm anticipates sales of flower use marijuana is likely to double over the next handful of years. It’s just that sales of concentrated marijuana products are expected to triple.

Another reason for the evolution of the marijuana industry to one more focused on extracts and distilled options is the negative connotation associated with smoking. People are increasingly health conscious, and many people use the drug as much for its medicinal properties as for the psychoactive effects. Marijuana has in many ways benefited from the early association with health and wellness that medical marijuana afforded. But people still may be gun-shy when it comes to smoking it. Edibles, topical creams and vapors provide an attractive alternative.

These kinds of options mean public support and demand for marijuana that is accessible and available is higher than ever. A growing number of states are grappling with the fact that even if they don’t allow marijuana or concentrates, they may be surrounded by states that do. Utah is one example. Indiana is another.

In this environment, the extract cannabis business model is expected to grow. Cannabis concentrates that are legally produced and sold for consumption can be done in everything from capsules to lip balm, all of which gives people more options. Plus, concentrated cannabis offers a larger doses for those who find smoking unpleasant. Flavors tend to be cleaner and more pleasant. Home production is generally banned for health and safety reasons, even in states where it is legal, which is another reason specialized companies are gaining so much traction.

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

Additional Resources:

Is cannabis too lucrative to be illegal? Aug. 9, 2017, By Ed Leefeldt, Moneywatch

More Blog Entries:

New State Senate Bill Would Prohibit Cannabis Advertising, Aug. 10, 2017, Marijuana Business Attorney Blog