embedded in Proposition 64 became law. Although businesses knew the change was coming, it marked a major change in the supply chain for marijuana throughout the state. No longer was the focus solely on growers and dispensaries. These new regulations have shed light in a whole new way on the importance of testing labs.

According to an article from Leafly, the history of testing labs in the state has come a long way, evolving from van-based operations to highly sophisticated units protecting Californians from contaminants, pesticides, and helping measure strength and makeup of different strains and products. Until now, labs haven’t really been able to fully get off the ground. Like any production cycle, added steps are generally avoided wherever possible in order to cut down on costs. As such, not all cannabis products in California went through the lab-testing stage until laws absolutely mandated it, especially those produced by small businesses. Now labs are overwhelmed with work. Though lab workers did what they could to prepare for this day, it’s still difficult to operate a business at full capacity on profits that are not yet coming in, making it necessary to go from skeleton crew to all hands on deck in a matter of weeks.The new laws are pretty straightforward, as our Los Angeles marijuana regulations lawyers can explain. Essentially, there are standards Californians wanted to make sure their cannabis products met. These include the following:

• All cannabis goods must be tested. Retailers cannot send products on their shelves back for testing. Untested cannabis goods must be destroyed or sent back to the licensee, who then has the option to have the products tested and sent back to market.
• Cannabis goods must be packaged before arriving at the retail location. That packaging must meet all new standards. Retailers cannot package or re-package cannabis goods.
• The only packaging changes retailers can make is they are allowed to place a “For medical use only” sticker on products sold to qualifying medical marijuana patients if the package is not already marked as such.
• Packaging must be child resistant upon arrival at the retailer. Retailers can no longer place products in child-resistant containers upon purchase to fulfill state law.
• Edibles must have 10 mg of THC or less per serving, and cannot exceed 100 mg of THC in a single package. Non-edibles must contain 1,000 mg or less of THC per package for recreational use. For medical use, non-edibles can contain up to 2,000 mg of THC per package.

Many products were already on the market, however, because of the state’s medical marijuana laws. Growers, distributors, and dispensaries had already been functioning a certain way for years. Therefore a grace period was put in place after the launch of recreational marijuana legalization at the beginning of the year to allow marijuana businesses to establish a process by which to get their products in compliance, and also to clear out all product that did not meet new guidelines.

These new laws can be overwhelming for businesses who have settled into their ways of operating. That’s why our marijuana business lawyers offer our years of experience and knowledge of the law to help get your business in compliance. We are able to assist businesses all along the cannabis production cycle, helping establish testing labs and packaging companies that are in such high demand right now while ensuring they meet the state’s high standards.

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:

Transition Period Requirements, Bureau of Cannabis Control, California

More Blog Entries:

Budding Industry for Labs Testing Marijuana, Dec. 27, 2013, Cannabis Law Group

down, largely due to a scare campaign that positioned the 10 pre-designated cultivators as a monopoly. In 2016, HB-523 was signed into law by Gov. John Kasich that set up a process for medical marijuana in the state. Since then, however, the initial phase has been a lumbering one. Advocates remain optimistic, though, pushing now for a state constitutional amendment to legalize recreational marijuana.

On the medical front, Ohio’s program is under scrutiny in court, as a judge in the Franklin County Court of Common Pleas is determining whether or not to delay licensing for cultivators, and potentially the launch of the program. According to Cleveland.com, one grower applied for a license and sued the Ohio Department of Commerce after it was denied, claiming there was no appeals process as promised. Reported errors in the scoring of applicants and complaints about officials not following their own rules in the selection process have led to other lawsuits. With only 12 initial promised licenses for large-scale cultivators, the spots are highly coveted.The state is already behind its goal of having the program fully functional by Sept. 8, 2018. Officials are still moving forward, however, with the state medical board selecting the first 36 medical practitioners who will be certified to recommend cannabis to patients. Those who are chosen must complete a free two-hour course on approved medical conditions, how to treat them with cannabis, and drug interactions, the Associated Press reported. Few snags are anticipated in this part of preparations.

In spite of, or perhaps because of, the floundering medical marijuana program, talk of recreational marijuana is back in the forefront in Ohio. Ohio Attorney General certified language for a petition for a measure that would amend the state constitution to make recreational cannabis legal. This amendment does not include a limit on grow sites like the measure that failed in 2015, but it does have provisions for personal plants in private spaces and no limits on how much can be grown or purchased. On the other hand, it also gives power to landlords and employers to have a say in whether you can grow or use. Next steps include a trip to the Ohio Ballot Board, seeking almost 306,000 signatures, and finally (we hope) inclusion on a ballot for voters to decide. Deadline to be on this November’s ballot is July 4, so advocates think the 2019 ballot is a more likely goal.

It’s easy to forget looking around California how rocky the path to marijuana legalization has been in other states. We have experienced our own growing pains, for sure, but the more than 20-year gap between medical marijuana legalization and the implementation of recreational cannabis laws has given us a long time to learn and grow. We still have some mountains to climb, but with a solid foundation, the will of the people, and the experience of trusted legal counsel like our Los Angeles marijuana regulations lawyers, we can overcome obstacles that arise along the way.

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:

Ohio Recreational Marijuana Measure Certified by Attorney General Mike DeWine, May 10, 2018, By Jackie Borchardt, Cleveland.com

More Blog Entries:

More States Look to Legalize Marijuana in 2018, Jan. 21, 2018, By Los Angeles Marijuana Lawyers Blog

According to an article from Forbes, California cannabis business owners are projected to make $5.2 billion in revenue in 2018, with about $1 billion in tax revenue lining state coffers.

But for every new road that is paved on the way to full legalization, there are numerous bumps along the road. California business owners expect plenty of marijuana regulations, with local governments in the state being given a great deal of jurisdiction over whether or not to allow commercial marijuana production and sales.These marijuana regulations and many others were recently discussed during the Marijuana Business Convention & Expo (MJBizCon), according to the Sacramento Bee. Topics included local ordinances, mandates to test and track marijuana, packaging, and potency standards (such as serving sizes).

New regulations have also increased oversight through licenses and fees, as well as recommendations for inspections and advertising, speakers at the event said. All of that in addition to California state and local taxes of up to 45 percent have many in the industry concerned about the potential detrimental effects on profit margins.

Also on the minds of many at the convention was the issue of overproduction in California, which could continue to increase now that the state has decided not to cap growing sites at one acre. The California Growers Association says this disadvantages smaller farms. It also raises questions about where exactly the crops are traveling, with some estimates claiming only one-sixth of marijuana produced on California farms is actually consumed in the state.

Some in the cannabis industry are concerned these regulations and taxes make honest businesses vulnerable to unfair competition with the black market. While legitimate businesses are burdened with red tape and costly tests and reports, businesses operating illegally can disrupt the market. Panel members at the conference said they are hopeful, however, that as sales numbers start coming in and negative perception is quelled, regulations will ease up at least at the local level.

Once a company can get beyond those challenges, they may find profits are difficult to manage when a vast majority of banks will not take on known marijuana business clients due to the risk of losing their federal charter, according to the Forbes report. This is costing businesses extra money in safes and security measures. There are workarounds on the horizon, including systems and programs that keep banks in compliance with the 2014 Cole Memorandum, which was intended to protect cannabis companies who follow state laws from federal prosecution.

However this protection is not guaranteed. Everyone along the chain of California marijuana businesses feels a target on their back as the federal government continually threatens to crack down on states by enforcing national bans on cannabis. Speakers at the convention pointed out that comments by U.S. Attorney General Jeff Sessions have caused large companies to be cautious about investing.

Such marijuana regulations and burdens can make starting a cannabis business very costly. Even worse are the fines that can follow should these regulations not be implemented. Nevertheless, in the face of all of these obstacles, the sheer volume of potential customers, and thus profits, has many clamoring to join the marketplace.

With the proper guidance and full understanding of the marijuana business in California, there is plenty of room to thrive and profit. This is why is it essential to talk to a marijuana business attorney, who will make sure all regulations are addressed in the most cost-effective way possible, while avoiding future penalties that could prove very costly, or worse, ruin your business altogether.

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 regulations could snuff out profits for marijuana businesses, Nov. 21, 2017, By Brad Branan, The Sacramento Bee

California Weed Entrepreneurs Will Make $5.2B in 2018 With Almost No Banks To Put It In, Nov. 26, 2017, By Julie Weed, Forbes.com

Jeff Sessions Hints at a Coming Crackdown on Recreational Weed, Nov. 30, 2017, By Adam K. Raymond, New York Magazine

Proposition 64, Nov. 8, 2016, Prepared by Attorney General, ca.gov

More Blog Entries:

New California Marijuana Regulations Finally Released, Nov. 26, 2017, Orange County Marijuana Business Attorney Blog