Fake THC Cartridges Are Flooding California Of all counterfeit cannabis products, refillable THC cartridges used inside vaping pens are currently most common. Surprisingly, states like California – where recreational cannabis use is legal – appear to be most flooded with counterfeit products. Big brands like Kingpen and Rove have tried to get ahead of counterfeits by repackaging their products, but counterfeits have shown they can keep pace, often reproducing new packaging almost as quickly as the legitimate brands.

And industry insiders unanimously agree, the fakes are getting better all the time. Many knockoff THC vape pens are comprised of illegally but locally grown cannabis, which producers then stuff into refillable cartridge pens, before attaching counterfeit labeling they’ve purchased online, and selling the finished counterfeit pens at discounted prices to illegal pop up shops. To most consumers and law enforcement officials alike, it’s very difficult to tell a real pen from a fake one.

The best way for brands and businesses to protect against counterfeits is to legally trademark cannabis products. Once cannabis companies have a trademark in place, Californian authorities then have jurisdiction to enforce against counterfeits. Without a trademark though, it’s very difficult to prosecute. If you need help trademarking your cannabis products, our marijuana business lawyers of Orange County can help.

A Budding Counterfeit Scene All across California, legitimate cannabis businesses are feeling the pinch. The problem is so wide spread that brazen bootleggers are even advertising counterfeit products on Instagram and Snapchat. An admin for DanksOfficial – a watchdog Instagram account cautioning marijuana users against buying THC cartridges on the black market – who prefers to remain anonymous, says unless consumers can test each cartridge, there’s no way to be sure a vaping cartridge is real or safe. Experts Warn of Health Risks Counterfeits Pose Just as vaping is increasing in popularity across the nation, associated long-term health risks are also becoming increasingly clear. The Center for Disease Control and Prevention (CDC) recently announced that 193 cases of severe lung illness, all possibly linked to vaping, have propped up across 22 states. While the CDC did not share exactly how many cases involved products containing THC, Dr. Illeana Arias, senior scientific advisor and acting deputy director for non-infectious diseases noted “in many cases” patients had confirmed using THC-containing products prior to feeling unwell.

Meanwhile, the California Department of Public Health (CDPH) recently stated as many as 28 cases of acute lung disease among people who recently vaped cannabis products, had been reported across the Golden State. Just this August, the CDPH issued a health alert in Kings County after a cluster of hospitalizations. Between July and August, seven healthy adults were admitted to county hospitals, all showing signs of severe pulmonary disease, after vaping THC products. Nancy Gerking, Kings County assistant director of public health, confirmed the products were all purchased from temporary, unlicensed pop-up shops in the local area.

At about the same time, we also saw the Bureau of Cannabis Control (BCC) launch a public awareness campaign warning consumers about the health risks associated with buying marijuana products from unlicensed dispensaries. That’s because knock off products are completely unregulated and avoid testing for pesticides or other contaminants, which can pose dangerous health risks.

Other industry insiders note, because licensed cannabis growers and businesses cannot distribute their goods to unlicensed stores without risk of suffering heavy fines from regulators, if big brand name products are showing up in unlicensed stores, then those products are almost always fake. Consumers can best protect themselves from subpar goods by buying all cannabis products from licensed, registered cannabis businesses. To check if a California cannabis dispensary is legitimate and meets the state’s high safely standards, enter their business name into the BCC online license search tool (www.CApotcheck.com). Be sure your retailer is listed there, before shopping.

Marked Down Knock Offs Bringing in Big Bucks The state’s registered marijuana operations are projected to make more than $3 billion combined this year. But that number is easily overshadowed by the $8.7 billion in revenue expected to be generated by the unregulated cannabis industry across California in the same time frame.

Legitimate cannabis business operators are at pains to compete. It is widely believed that counterfeits are boosting unlicensed dispensary sales, where business owners can afford to sell cannabis products at lower prices, because they’re skipping out on regulation costs and avoiding taxes.

Authority Clampdowns Showing Signs of Success The Los Angeles Police Department is making strides in limiting the rampant illegal cannabis trade. At the beginning of the year there were almost 300 illegal dispensaries operating in the Los Angeles area, compared to less than 200 today. With authorities primarily focused on closing unlicensed dispensaries, clamping down on counterfeit products is not yet a priority.

Rather than issuing search warrants that could lead to seizing knock off cannabis items, the LAPD is focused on first cutting water and power to properties hosting illegal cannabis activity. While this is a strong first step, some fear counterfeit products not seized when closing down illegal operations, can easily circulate somewhere else down the road.

Legal Implications The black market for cannabis activity is thriving, and counterfeits are boosting sales for unlicensed retailers across the United States. Without regulation, corners are being cut, product safety is in question and health risks are becoming a reality. Additionally, the sophisticated production of knock offs show little signs of slowing down.

In this climate, the best way for cannabis brands to protect the integrity of their products, their brand reputations and the well-being of their customers, is to secure product trademarks, invest in difficult to replicate product packaging, and aggressively pursue counterfeits.

Some industry stakeholders believe knock offs will abate as consumers become more informed over time, and others are frustrated that counterfeits are stoking unlicensed dispensaries, who are taking such a large portion of market share. Either way, legitimate cannabis outfits are working hard to stay licensed, and to keep their businesses running. It seems the longer it takes to clamp down on counterfeits, the harder it will become for legal businesses to continue trading. Let’s hope the ramped up authority crack downs continue to make inroads and pave a smoother path for legal cannabis business owners moving forward. 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: The Center for Disease Prevention and Control California Department of Public Health Bureau for Cannabis Control California

And it’s not what we’ve seen in years past. Growers need not fear raids from Sheriffs in Humboldt, as much as they should civil action. That’s right, fines are now being issued in the amount of $10,000 per day, for each violation, capping out only at $900,000. And if that isn’t deterrent enough, next comes property liens and forfeitures.

Do you need help with notices to abate, property leins and forfeiture or civil fines? Our Southern California cannabis business lawyers are only a phone call away.

Violations Escalate Quickly Once a violation is noted, recipients have ten days to remove their plants. And even if growers remove their plants that same day, they’ll still face a minimum $10,000 fine. Failing immediate removal, fines can run for up to 90 days, maxing out at $900,000, before growers face county collection action, and eventual property loss. Local industry insiders say a number of properties are now on the market simply because of their civil abatements.

This is not surprisingly having a wider effect, and breeding compliance, as no one wants to lose everything they’ve worked for.

Ramped Up Law Enforcement Activity As a further deterrent, a combined effort by local and state authorities has resulted in intensified clamp downs on illicit cannabis businesses right across the state. In June this year, a four-day raid lead by the Santa Barbara County Sherrif resulted in the seizure of 20 tons of illegal marijuana. But this was no overnight occurrence. The operation took place only after a two-month long investigation conducted by an assortment of agencies.

Illegal growers are not the only targets as retail stores are on the radar too. The cannabis regulations law, Assembly Bill 97, which was passed in Sacramento in July, allows for fines of $30,000 per day if operating a marijuana storefront without a license. These fines are intended to target illicit stores in Los Angeles competing with legitimate business owners who’ve paid hundreds of thousands of dollars to operate lawfully.

How the Game Has Changed These days, there’s nowhere for growers to hide. Satellite imagery spots grow structures from outer space and authorities use those images to determine who should be sent abatement notices for operating without cultivation licenses. In Santa Barbara, a newly created task force set up specifically for the purpose of combing through cannabis license applications, compares those applications to satellite images to check for possible license fraud. And if found, that is grounds for abatement.

Civil Charges – Cheaper and Quicker While criminal cases can be stretched out for years, often times to the advantage of a defendant, civil code violators have just ten days to appeal a notice to abate. If appeals are made, they are done so quickly, without a judge or jury, and with fairly loose rules surrounding evidence. So no matter how the case plays out, we see action and outcome affected almost immediately. Similarly, sending out 100 abatement letters could cost $49 in postage, while the overtime and man hours needed to carry out police raids can cost well into the millions of dollars.

Implications The outcome of a move toward quick, punitive civil fines being issued in place of long, drawn out criminal trials, means offenders are now avoiding prison time. But they are also getting hit where it hurts business folk most – the pocketbook. This new brand of civil action is leaving offenders bankrupt and without their properties. The fact that criminal charges are being replaced with civil ones, shows that while the war on drugs continues, it has been civilized. And this civil action is closing down California’s long time illegal cannabis operators in a way that criminal prohibition could not. Put simply, civil court cases are faster, cheaper, easier and more effective to pursue, so we can expect to see a lot more of this strategy implemented in future. 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: Assembly Bill 97 – The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA)

The catch though, the California Department of Food and Agriculture (CDFA) is yet to show its ability to approve those provisional or permanent licenses, at the same pace applications are being lodged.

The backlog on approvals may be due to the complexity of the licensing application process itself. Tellingly, by mid July 2019, only 2,053 provisional licenses and 230 permanent licenses had been granted. As it stands, when applying for prospective licenses, cannabis farmers are expected to demonstrate compliance with the stringent California Environmental Quality Act (CEQA), as well as submit:

• Background checks;
• Surety bonds;
• Real property documents;
• Detailed site plans;
• Farm management practices;
• Waste management protocols;
• Security procedures; and
• Pesticide measures.

Obviously once these detailed applications are submitted, someone then needs to review them, which is also a lengthy process. The lag time evident in securing updated license approvals is leaving 7,181 cannabis farmers with a dire choice – either cease operating until a new license is approved, or continue growing and selling, and risk fines as high as $30,000 a day for trading without a license. For many growers, who are low on resources, this is a perilous predicament.

As the cannabis industry continues to grow in California, on July 1 Governor Newsom signed Assembly Bill 97 into law. Essentially, AB 97 helps make way for additional provisional licenses and removes a previous barrier, requiring a cannabis farmer to first hold a temporary license before applying for a provisional license. AB 97 not only opens the doors for a new wave of marijuana growers to join the legal cannabis landscape, but a second function of AB 97 also enables the renewal of provisional licenses for growers who have already obtained these. This particular change gives cannabis farmers more time and some leeway to meet the stringent compliance requirements of the CEQA, before securing a permanent annual license.

But AB 97 does not help temporary license holders. Under the current law, temporary licenses cannot be renewed or extended. To assist farmers with expired temporary licenses who are still waiting for their prospective or permanent licenses, Senator Mike McGuire sponsored Senate Bill 67. It sought to extend and reinstate a grower’s temporary license until September 15, 2019, to help farmers continue operating legally, while waiting for the CDFA to grant their subsequent license approvals. In order to benefit from SB 67, growers must have obtained their temporary licenses and applied for a provisional or permanent license prior to the expiration of their temporary license.

Unfortunately for those 7,181 temporary cannabis license holders now needing new licenses, SB 67 has stalled and shows little signs of progressing any further. Legislators appear to believe AB 97 adequately addresses the majority of cannabis business license issues, meaning farmers yet to receive their updated license approvals, must merely wait it out, no matter how long that takes.

Legal Implications Thus Far State lawmakers are yet to offer any assurances of leeway for marijuana farmers now waiting on the CDFA to approval their provisional or permanent cannabis business license applications. Many will watch with interest to see whether examples are made by law enforcement in this area, amid city sanctioned crack downs and blitzes now in effect that target blatant black market cannabis business operations.

Need Legal Help Obtaining or Renewing a Commercial Cannabis Business License? Our Los Angeles cannabis business licensing lawyers can help answer any questions you may have.

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: California Department of Food and Agriculture Assembly Bill 97 Senate Bill 67

Orange County marijuana farming lawyers know this would be a substantial first step to decriminalizing cannabis at the national level, a move that could have significant implications for state-legal dispensaries. Because cannabis remains illegal under the U.S. Controlled Substances Act – especially in the highest-risk classification – California marijuana farms, production centers, labs, landlords and ancillary businesses know the Cole Memo is little more than a tenuous truce. They are largely at the mercy of political whims, and while it seems certain legalization (or at least lower classification) will be inevitable, the question is: When?

A Schedule I narcotic like marijuana is considered by law to be extremely dangerous, highly addictive and have no medicinal value. Even those opposed to federal legalization for recreation know this description is absurd. The problem is its classification has prevented reputable study for decades. Yet the government has argued it doesn’t have enough data to eschew the Schedule I categorization – so it becomes a catch-22.

Congressional Leaders Assert Prompt Action Needed on Pot Policy

As it stands, the federal government has approved just one grower to harvest all pot produced for government research. Lawmakers argued this was woefully inadequate, particularly as there is growing evidence the drug can be a powerfully effective means to treat an array of medical conditions. The process of quality, peer-reviewed study takes time, legislators note. As it stands, any federal research (which holds the most weight when it comes to policy change) must be approved by three separate federal bureaucracies. And that single, licensed grow operation? It’s in Mississippi, and many researchers say not only does it not produce enough, but the quality is sub-par. Even if it were great quality, there are currently so many different cannabis varieties and processing methods that any singular grower would be unable to keep up. The result is that some cannabis researchers take years to get government approval just to start their study. Lawmakers asked for the DEA and the DOJ to do what is necessary to expedite and improve the application process for researchers and expand research opportunities for cannabis in general.

One of those leading the charge was Rep. Eric Swalwell, a Democrat from California. The federal agencies addressed in the letter did not respond to comment by journalists.

As it stands, 33 states plus the District of Columbia have legalized marijuana for medicinal use. Ten, including California, have approved of legal sales for recreational use.

Changes to federal drug policy that would allow more research would ultimately allow us to craft smarter regulation that allows for streamlined and safe production and mutual benefit for businesses and taxpayers and maximum. Shedding the state-federal legal conflict will also help close safety and regulatory loopholes.

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

Additional Resources:

DOJ, DEA urged to expedite process for green-lighting marijuana growers, researchers, May 8, 2019, Associated Press

More Blog Entries:

USDA: Hemp Farmer Intellectual Property Rights Finalized, May 13, 2019, Orange County Marijuana Research Attorney 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

Let’s note firstly that Pennsylvania legalized medicinal marijuana in April 2016, and the drug is only available for those suffering from certain medical conditions. Unlike California, and numerous other states, it is not available for recreational sale, possession or use. Even with medicinal use being legal, the Philadelphia area has reported that marijuana arrests in the area have markedly increased in recent years. And yet, the spike being reported by the FBI’s Uniform Crime Reporting (UCR) program. The analysis reveals marijuana arrests as reflected in federal data may be inflated by as much as 70 percent.

Why the disparity? As our Orange County marijuana criminal defense attorneys understand it, it’s a result of local police agencies reporting every single situation in which people are caught with pot in – even if they aren’t ultimately arrested for that offense.

Both the police agencies and the FBI say there is nothing wrong with this, as it helps produce information that is both reliable and useful for administrators and managers in the law enforcement field. However, groups like the Women’s Law Project in Philadelphia are highly critical of this practice, saying fails to properly reflect accurate public data. This could lead to allocation of law enforcement resources where they may not be necessary.

Research revealed two-third of local police agencies were reporting marijuana arrests for every stop in which the drug was found, even if the individuals stopped weren’t ultimately arrested. So for instance, in four counties that had reportedly made 5,4000 marijuana arrests last year, court records revealed only 3,200 of those defendants actually faced criminal charges. More often than not, those individuals who weren’t charged with any crime were still issued a citation for a lesser offense, such as disorderly conduct. Philadelphia allows police in that jurisdiction to issue a $25 civil citation for minor marijuana possession.

Police chiefs say that while this option – in lieu of marijuana arrests – aligns with the fact that marijuana is now a socially-acceptable drug. The FBI backed this practice, saying local agencies had “wide latitude” with regard to how such offenses could be reported.

However, this does mean that we don’t have an accurate count – based on FBI data – of how many marijuana arrests there actually are in a given area. Orange County marijuana criminal defense attorneys believe this matters when we’re looking at crime statistics that appear to show a serious problem of widespread criminal cannabis possession that may not in fact be criminal. Even leading criminologists called the practice “terribly misleading,” given that arrests are not only legally much different than a civil citation, they are perceived much differently than the public as well.

The criminologist noted another motivation police might have for the skewed reporting: Appearing more aggressive than they are. For example, if you have scores of drug arrests, it can appear to the public that a police agency is out tackling a serious problem on our streets – particularly when we know that marijuana is largely decriminalized in many jurisdictions so the only people being “arrested” are those committing more serious marijuana crimes. But it turns out that may not actually be true, and police agencies recognize that a slew of arrests for “disorderly conduct” just doesn’t carry the same weight.

In one town, while some 229 “marijuana arrests” were reported, the reality was only 24 of those defendants faced misdemeanor marijuana charges.

Those who are facing criminal marijuana charges should discuss their legal options with an experienced Orange County marijuana criminal defense attorney. Meanwhile agencies whose statistics appeared skewed should commit to accurately reporting each offense for precisely what it is.

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

Additional Resources:

Study: Marijuana arrests overstated to FBI by nearly 70 percent, Oct. 11, 2018, By Craig R. McCoy, The Philadelphia Inquirer

More Blog Entries:

Marijuana Reclassification: Feds Seek Public Comment for WHO Report, Oct. 8, 2018, Orange County Marijuana Criminal Defense Attorney Blog

change the landscape of marijuana in the United States, possibly within the next month. Epidiolex contains an active ingredient of CBD found in marijuana, and was approved to treat severe forms of epilepsy in children. According to a report from The Philadelphia Inquirer, the CEO of the company responsible for Epidiolex said before the drug can be prescribed, it must be reclassified to be lower than it’s current Schedule I status, Controlled Substances Act, 21 U.S.C. Section 812. He said he expects this to happen within 90 days of the FDA approval. This means marijuana could very well be reclassified by late September. It doesn’t mean that there will be a total free-for-all on cannabis use, but a lower scheduling will mean that the federal government will finally acknowledge the plant has medicinal benefits, and medical marijuana programs across the country can be released from the grips of the federal ban.

As our trusted Orange County marijuana attorneys can explain, there are several reasons it has taken federal leaders so long to release their grip on cannabis prohibition. First of all, anti-marijuana propaganda has been deeply ingrained in the American psyche for decades through drug prevention programs and public service campaigns. The campaigns themselves have their own nefarious roots, as marijuana has a history of being used as a tool to target minority groups and political activists. Law enforcement agencies have legitimized their questionable arrest practices by exaggerating the effects of cannabis to a naive nation.

Second, these same law enforcement agencies soon learned this practice also meant extra funding for their departments. “War on Drugs” quickly became a buzz term that got people worked up into a fervor over scary drug lords and sketchy dealers preying on our children. While those things certainly exist, it’s much more difficult to crack down on meth houses and massive cartels than it is to round up average marijuana users. On paper, though, incarcerating someone with a personal bag of marijuana looks the same as the arrest of a cocaine trafficker, and racking up big numbers of drug-related arrests keeps “War on Drugs” funding flowing into police departments.

Third, and this is perhaps the biggest factor, is massive lobbying money coming in from pharmaceutical companies. We are learning more and more each day how many potential health benefits cannabis holds. So why wouldn’t pharmaceutical companies want to capitalize off of this miracle drug? The answer is shockingly simple and terribly sad: cannabis is fairly inexpensive to cultivate and can even be grown at home. Many treatments involving cannabis require little processing. Education and medical assistance can help patients learn the difference between indica and sativa strains and also understand how the right balance of THC and CBD will help their ailments. There is certainly room for pharmaceutical companies to get involved with crafting precise balances of cannabis oils, lotions, and pills to treat specific conditions. For example, Epidiolex will cost $32,500 per year before insurance, leaving little room to imagine why there is the sudden interest in legalization. The fact is, though, with the right medical guidance many people can skip the middle man of the drug companies all together and have been doing so for years.

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:

FDA Approves First Drug Comprised of an Active Ingredient Derived from Marijuana to Treat Rare, Severe Forms of Epilepsy, June 25, 2018, U.S. Food & Drug Administration

More Blog Entries:

FDA Approval Could Change Everything for Medical Marijuana, July 1, 2018, Cannabis Law Group

While legalized possession and use of recreational marijuana throughout the state, it left a great deal of power to the local governments to dictate regulations and sales. As our marijuana business attorneys can explain, this meant even though citizens were allowed to carry and use cannabis, cities and counties had the right to ban various aspects of commercial cannabis activity, including sales.

While 57 percent of voters approved Prop. 64, local laws have made it so 75 percent of consumers cannot easily access marijuana, according to an article from SFGate. While it is important for local governments to maintain control over their jurisdictions, this disparity does not reflect the will of the people. A vast majority of Californians understand the benefits of cannabis. Many have seen its positive effects through medical use, which has been legal in California since 1996 through the Compassionate Use Act. Others have come to learn that it can be an alternative to alcohol in social situations, without many of the long-term health effects of drinking, particularly when it is consumed in ways other than smoking, such as edibles and vaping. This positive perception of the drug has led to big advancements in legislation. However some of the stigma of the past still lingers, causing local leaders to overly restrict out of fear and misunderstanding.SB-1302 seeks to keep in place the rights of local jurisdictions, but hopes to clear up some confusing language in the Medicinal and Adult-Use Cannabis Regulations and Safety Act that has prevented delivery businesses from operating freely. According to MAUCRSA Sec. 63, the “A local jurisdiction shall not prevent delivery of cannabis or cannabis products on public roads by a licensee acting in compliance with this division and local law as adopted under Section 26200.” While some thought this permitted cannabis deliveries to any location, many have interpreted this to mean that public roads can be used to deliver marijuana … elsewhere. The actual delivery of the product can still be restricted in a city if the local officials so choose; they just can’t stop delivery services from driving through a city to their end destination.

The new bill would allow local governments to continue to ban businesses from setting up shop within their borders, but would prevent the passage of any ordinances that would prohibit deliveries to residents.

Our Orange County marijuana business lawyers recognize this as a commonsense compromise allowing citizens to access a drug that is totally legal to them while allowing cities to retain control over their own lands and zoning laws.

Local marijuana company owners and operators often find it difficult to navigate this complex array of state and local provisions. There are many potential legal and regulation snags companies can hit, and there is a significant risk of investment loss on the line – even if you’re held up for “only” a few weeks or days. Having a marijuana attorney on retainer can help ensure you are meeting all your obligations (and that all your rights are respected) is an imperative.

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:

Will Cannabis Delivery Survive in California’s Legal Market?, Feb. 6, 2018, By Peter Hecht, Leafly

More Blog Entries:

New Regulations Require Cannabis Delivery Services to Rethink Their Business Models, Oct. 8, 2017, Cannabis Law Group

federal officials to back off of prosecuting those selling, distributing, growing, or using marijuana, so long as the offenders were following state laws. The memo was issued to reconcile the federal Controlled Substances Act, 21 U.S.C. Section 812, which classifies marijuana as a Schedule I narcotic, with the wave of state laws that allow cannabis sales and use, either medically or recreationally. The move gave hope to the growing number of Americans in favor of full cannabis legalization nationwide.

However, the U.S. recently took a big step backward when current Attorney General Jeff Sessions rescinded the directive, re-opening the door for federal prosecutors to allocate resources at their discretion for cracking down on marijuana operations.

Leaders in states that have legalized marijuana have no intention of going down without a fight, though. With many more making moves to legalize cannabis in state legislatures or on ballots this year, they might have even more allies by their side.In California, leaders are proposing methods to protect the state’s thriving cannabis economy, which has only grown stronger since the Adult Use of Marijuana Act went into effect January 1, 2018. These tactics include writing letters, potential new laws, and federal lawsuits, according to a report from Orange County Register.

Rep. Lou Correa (D-Santa Ana) has called for Congress to refuse to confirm any future appointments to the Justice Department until the administration reverses its current stance on cannabis. He calls the issue a states rights issue, not partisan.

Rep. Barbara Lee (D-Oakland) said this isn’t just a fight for the status quo, but a chance to move forward. She proposed a bill to permanently block funding for the DOJ and other federal agencies to be used for pursuing states where cannabis is legal. HR 4779 also builds in protections for banks that work with the marijuana industry. Banks currently face massive hurdles in legally being able to work with marijuana businesses due to the illegal status of the companies at the federal level.

Banking with cannabis businesses is also on the mind of Xavier Becerra, attorney general in California, who joined a bipartisan group also pushing for the federal government to ease up off of banks.

A dozen mayors from cities across the country, including Long Beach and San Leandro, joined together to compose a letter to vocalize displeasure in Sessions’ aggressive stance against marijuana, citing the safe and highly regulated systems already in place and pointing out the will of the voters.

Other leaders have said they don’t believe the federal powers have the resources or much interest in targeting operations that are abiding by state laws. While our Orange County marijuana business lawyers hope this is true, we also know that hopes are not enough to protect the people of California and their businesses. It is urgent that representatives continue to fight for the best interests of the voters of California. It is also crucial for marijuana businesses to seek counsel from knowledgeable attorneys like ours, who will guide you and your business through these uncertain times to make sure that you are up to date on the latest laws and agile to changes at the federal level.

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:

How California Leaders Are Fighting Back Against Sessions’ Marijuana Crackdown – And What Could Get in Their Way, Jan. 17, 2018, By Brooke Staggs, Orange County Register

More Blog Entries:

Jeff Sessions Intends to Crackdown on Medical Marijuana Where It Is Legal, Dec. 10, 2017, Cannabis Law Group

Lack of information on the purity and potency of marijuana products distributed to U.S. consumers is of major concern, according to the U.S. Senate Appropriations Committee. That’s why its members are asking that federal agencies work together to develop a standard, national testing program for Schedule I products made from marijuana.

The appropriations committee’s recent report instructed qualified scientists at the National Institute on Drug Abuse as well as those working with the U.S. Drug Enforcement Administration to start work on samples of marijuana in order to give the federal government better data that could be used to provide better policy solutions to help protect consumers.

Up until three years ago, the NIDA provided funds for a program that tested samples of cannabis law enforcement seized. However, the federal agency has never formally researched marijuana products legally sold to consumers under an increasing number of state legalization laws.

The Senate committee reported that if research on illegal marijuana could be used alongside research on legal products, it could bolster efforts to prevent abuse and ensure products being sold legally to customers conform to certain safety standards. It could ultimately inform public health and law enforcement policy, the agency said.

Still, our marijuana research attorneys not clear how the program would be carried out. Historically, research on marijuana products has either been forbidden or severely restricted by the federal government, which under the Controlled Substances Act considers cannabis to be a dangerous Schedule I narcotic with no medicinal value. This was noted in the appropriations’ committee’s report, citing concern the CSA would inhibit valuable research on Schedule I drugs – marijuana in particular. The committee opined it was important for federal researchers to glean as much information as possible about these substances, particularly marijuana, its derivatives and its synthetics.

Senators asked the NIDA to provide some type of an update on the types of barriers that exist to researching Schedule I narcotics and compounds. The Schedule I classification, given to those drugs deemed to have a high value for potential abuse, are the most severely restricted in terms of research. The scientific community has long griped about the fact that this classification makes it particularly difficult to study drugs that warrant more study – not less.

The committee also noted that marijuana and its derivatives could help in the fight against the growing opioid addiction crisis. There is already some evidence to support this theory, but more research is needed. Lowered addiction and overdose rates among those who use marijuana and its derivatives grabbed lawmakers’ attention.

This is the same panel that previously gave the green light to a measure that would protect state medical cannabis laws from interference from the federal government and also allow members of the U.S. military to receive medical marijuana recommendation via the U.S. Department of Veterans Affairs.

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 San Francisco Chronicle looked at this issue in weighing the makeup of the black market.

First, there is the fact the California grows more marijuana than is consumed by residents. Prop. 64 did nothing to effect the laws in other states, but interstate borders aren’t always policed to the point every person crossing from one state to the next with marijuana would be caught. Secondly, the law did not give a rubber stamp to all growers or sellers of marijuana. Sellers have to be licensed by a state agency, and they must comply with a long series of rules that detail everything from plant testing to packaging labels to tracking.

Marijuana has been illegal for so long, there is uncertainty about the exact scope of marijuana production and sales. We do have some educated guesses though from state-hired economists. They believe farms in California produce around 13.5 million pounds of pot every year, while residents in the state only consume about 2.5 million pounds of that. Where does the other 11 million pounds go?

According to the California Department of Food and Agriculture (the agency in charge of regulating marijuana cultivation), probably out-of-state. Further, even the cannabis consumed within state borders isn’t all bought in shops that are sanctioned by the state. It’s estimated about half of that will still be sold illegally. Part of the issue is that more than 8 in 10 growers vying for a marijuana business license to grow, process and sell the drug aren’t able to get one. In a survey conducted recently by the California Growers Association, 40 percent of respondents said if they were unable to secure a license or permit, they would still continue to operate as they had previously – which is to say, on the black market.

Factor in too the fact that permitting fees are extremely high. For example in Costa Mesa, the city charges $50,000 in permit fees. That can be a huge barrier to would-be law-abiding business owners.

Of course, some longtime growers may simply find themselves out of business. But if they can offer the product at a price lower than marijuana that is state-regulated, they could still turn a decent profit. However, they run the very real risk of facing down state regulators and potentially federal authorities. Marijuana businesses that operate outside of state-sanctioned rules are taking a huge chance, and they may face not just fines and civil forfeiture, but potential prison time.

The California Narcotics Officers Association, which staunchly opposed Prop. 64, said there would be aggressive enforcement by police agencies to stop this state from becoming a staging area for national drug trafficking.

Those who support Prop. 64 say the intention was never to completely decriminalize marijuana, but rather to extend an opportunity to growers and sellers who want to be responsible and law-abiding. A spokesman for the Prop. 64 effort said promising an elimination of the black market would be like promising surveillance cameras could do away with shoplifting. Although it doesn’t completely get rid of it, it does help to reduce it.

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

Additional Resources:

Even with legalized weed, California’s black market will thrive, Aug. 6, 2017, By Laurel Rosenhall, San Francisco Chronicle

More Blog Entries:

San Luis Obispo County Considers Marijuana Growth Ban in the California Valley, Aug. 6, 2017, Orange County Marijuana Business License Lawyer Blog

California is known around the world to have some of the best soil for farming all types of agriculture. We grow some of the greatest grapes, winter vegetables, garlic, olives and almonds. But the biggest item produced? Cannabis.

The Register reports that not only is marijuana the most valuable crop in the nation’s No. 1 agricultural producer state, but we grow so much of it here that it blows the other goods out of the water. Reporters looked at figures from the California Department of Food and Agriculture for crops and production estimates. What they found was that estimated marijuana crop production was more than the other five leading agricultural commodities – combined.

In terms of billions of dollars, here’s what they found in terms of annual production value:

• Marijuana – $23.3 billion
• Milk – $6.28 billion
• Almonds – $5.33 billion
• Grapes – $4.95 billion
• Cattle/ calves – $3.39 billion
• Lettuce – $2.25 billion

To put this into perspective, that $23 billion figure is almost three times when industry investors had anticipated the state’s legal market would be once the drug was openly available to all adults in the state.

But of course, the report is being challenged because, after all, how can we know what was being grown and sold illegally for years? The newspaper has an answer for this. It looked at the seizures of marijuana plants, which on average was more than two million annually for the last five years. Reporters then noted that the U.N. Office on Drugs and Crime’s common refrain that seizures of marijuana plants (of all drugs, really) account for only between 10 and 20 percent of what is produced. That lead researchers to conclude there were approximately 13.2 million marijuana plants grown in California in 2015 (given that we know 2.6 billion were destroyed), and that’s based on the higher-end 20 percent figure. That means this could even be a conservative estimate.

They then presumed each plant had the potential to produce one pound of marijuana at a market price of about $1,800 a pound. (It should be noted that plants grown outdoors usually produce more than a pound, but those grown inside bear less, so that figure is deemed to be fairly safe – and likely conservative. However, indoor marijuana often garners less money than outdoor pot plants.)

And even if we consider that California’s law enforcement is very good at rooting out illegal marijuana grows, seizing, let’s say double what the U.N. estimates, and let’s say those plants only generated $1,000 per pound, we’re still talking about an $8 billion crop.

By comparison, some researchers peg the state’s legal medical marijuana market at generating slightly less than $3 billion in 2015. Legalization is expected to boost it to $6.5 billion by 2020. What these figures suggest is that we could be seeing a demand that is far higher.

Now, all of this also raises the question of where all this illegally-grown product has been going. If law enforcement busts on the highway are any indication, we can safely bet a lot of it is traveling out-of-state, probably to states that don’t allow legal access to marijuana. That tells us that it’s unlikely that these underground operations are going to totally cease now that it’s legal in marijuana. So long as it remains illegal elsewhere, the demand will not subside.

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 marijuana production is already mind boggling, Dec. 29, 2016, Orange County Register

More Blog Entries:

Study: Marijuana Reduces In-Hospital Mortality Risk, Jan. 10, 2017, Orange County Marijuana Lawyer Blog

The Michigan study is an ongoing, four-decades-long research on the use of tobacco, alcohol and drugs. In this most recent analysis of the data, we find that those who are in the 40s and 50s used drugs in their youth far more frequently than the teens and 20-somethings of today. Excluding marijuana, more than 7 in 10 individuals who are in their 50s used illicit drugs at some point in their lives. When you include marijuana, that figure spikes to 85 percent – the vast majority.

When this cohort was in college, approximately half were actively using illegal drugs. Today, about 40 percent of adults who are of college age are using illegal drugs.

When researchers looked at college students in 1980 versus college students in 2015, they found:

• 36.2 percent of college students in 1980 were smoking cigarettes, compared to 20.1 percent today;
• 22.4 percent of college students in 1980 were using amphetamines, compared to 9.7 percent today;
• 16.8 percent of college students in 1980 were using cocaine, compared to 4.3 percent today.

Cigarette use in particular is at the lowest it’s ever been. Flashback just 15 years ago to 1999, and 44.5 percent of college students were smoking cigarettes. That has been more than halved to 20 percent today.

And when we look college students’ use of prescription painkillers, there has also been a dramatic decline. Whereas 9 percent of college students in 2003 were using prescription opioids, today, that figure has dropped to 3 percent. This is true even though we know the use and abuse of these types of drugs has grown exponentially in recent years, meaning most of that growth can be attributed to older users.

Part of this decline could be the fact that awareness of the dangers of some of these substances is becoming more clear. This theory also explains why we’ve likely seen an uptick in marijuana use around young people. Legal marijuana, both for recreation and as medicine, has done a lot to lessen the perceived danger of the drug. In addition to studies that show marijuana is less risky in many ways than alcohol, negative messages about marijuana on social media are uncommon.

Compare that to the messages being received about synthetic marijuana, sometimes referred to as spice. When this family of drugs started to become popular, we began to see a flood of Twitter and YouTube videos revealing the horrifying effects of some of those drugs. That undoubtedly played a role in the reduction of spice use among college students from 8.5 percent in 2003 to 1.5 percent in 2015.

Researchers are careful to say this doesn’t necessarily mean we are moving to becoming a drug-free society. It’s possible that this period of overall declining drug use could be met with a surge, as we saw from the 1980s to the 1990s. However, there is also a fair amount of evidence to suggest that an uptick in marijuana use is associated with declining rates of opioid use. Marijuana is known to be safer and far less addictive than opioid substances, and this fact will likely dictate future use patterns to some extent.

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

Additional Resources:

College High: Students Are Using More Marijuana, Fewer Opioids, Sept. 9, 2016, By Angus Chen, NPR More Blog Entries: Federal Appeals Court: License Plate Profiling Illegal, Sept. 7, 2016, Orange County Marijuana Lawyer Blog

But for a long time, the industry didn’t weigh in much on individual candidates because frankly, no one was seeking their support. It was seen as risky and potentially political suicide.

Today, attitudes have shifted. The majority of Californians – and now even Americans – support safe access to medical marijuana. Most people are even beginning to warm to the idea of recreational marijuana, an issue slated to be before voters once again this November. With all that, the industry has grown – as has its voice and political clout.

Recently, the Orange County Register reported California Rep. Loretta Sanchez, vying for the seat of outgoing U.S. Sen. Barbara Boxer, was proud to receive a “glowing endorsement” from the legal marijuana industry.

Specifically, the top brass at the first medical marijuana dispensary in Orange County penned a missive that was sent to more than 800,000 customers in the region, encouraging them to vote for Sanchez, a Democrat. She is competing against Attorney General Kamala Harris for the seat. It’s a heated competition, so every bit of support helps.

In the letter, the CEO of the dispensary wrote that Sanchez’s history was one of unwavering support for medical marijuana in California. Specifically, she fought to stop the federal raids on dispensaries throughout the state and also championed the state’s right to regulate cultivation, distribution and use. He wrote that she did all of this “before it was a popular thing to do.”

An adviser for Sanchez’s campaign conceded later to a reporter that the endorsement was unconventional, but she welcomed it nonetheless.

On the other hand, Harris may be receiving her own political endorsements from top pot leaders. She has reportedly been a longtime supporter of medical marijuana and has petitioned the federal government to reclassify marijuana on its schedule of controlled substances. She also generally supports recreational legalization – with proper regulation.

Again, industry insiders have been advocating for legal marijuana in the political sector for years. But this type of campaigning – weighing in on individual candidates and taking on an active and influential role – that’s not something we have historically seen. Fred Smoller, a political science professor at Chapman University, told the Register that we can expect to see more of this, as marijuana is now recognized as a fully legitimate industry. In this country, industries get involved in the political process.

Will it make much of a difference in the Harris v. Sanchez race? It remains to be seen. However, it’s not likely to hurt the candidates the way an endorsement from, say, the tobacco or oil industry would. It also will not help them as much as an endorsement from a police union.

Nonetheless, we are likely to see an uptick in marijuana advocates weighing in on political races, bills 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:

Pot gets political: Santa Ana marijuana dispensary endorses Loretta Sanchez, June 1, 2016, The Orange County Register

More Blog Entries:

City of Los Angeles Targets Another Marijuana Delivery Service, May 21, 2016, Orange County Marijuana Lawyer Blog

Today, law enforcement groups and individuals are divided.

As The Los Angeles Times reports, many in law enforcement do still staunchly oppose making the drug available for recreational use, others recognize it could be a benefit to the state.

The conflict starts right here in Los Angeles. Take L.A.P.D. Chief Charles Beck. Although he says he’s still looking over the 62-page recreational marijuana ballot initiative proposed for the November election, he said his basic stance is there are enough problems with intoxicating alcohol and drugs that are already legal. He noted the substance causes significant physical and mental impairment, and he worries about the impact that will have on many aspects of daily life here in L.A. Plus, with the drug still outlawed by the federal government, marijuana dispensaries in L.A. are forced to operate as cash-only enterprises, which tends to attract crime.

On the reverse side, former L.A.P.D. officer Democratic Gov. Gavin Newsom has taken a different stance, coming out strong in support of the measure. So too did former LAPD deputy chief Steve Downing, who stated flatly that the “War on Drugs” was a failure.

“I should know as I once led it,” Downing said, adding that police policies concerning drugs have done more to harm to individuals and the community than they did to attack marijuana use. So many were unnecessarily and unfairly criminalized. Plus, we have the evidence now that shows us marijuana isn’t the “gateway drug” many proclaimed for so long.

By continuing to criminalize it, Downing said, we are putting money in the hands of the street gangs and the cartels. He explained that when we ended prohibition on alcohol, consumption of it didn’t go up. What changed was that it got safer, and the businesses of men like gangster Al Capone died off rapidly.

Downing said police are wasting thousands of hours with things like small-time marijuana possession. That takes away time and resources that could instead be devoted to serious crime.

The proposed ballot measure, “Adult Use of Marijuana Act” would give those over the age of 21 the right to possess, transport and use up to one ounce of the drug for purposes of recreation. It would also allow individuals to grow up to a half dozen plants. A proposed 15 percent retail tax on the drug is suggested, and there would be an outright ban on public use or use while driving (driving under the influence of any intoxicating substance is already illegal under current law).

In San Francisco, District Attorney George Gascon said as a former police chief there and a former LAPD assistant, he does support the legalization of marijuana in general. However, he urges caution to avoid certain mistakes that were made in Colorado and Washington state.

He insists any system would need to have the ability to test motorists for being under the influence and similar intoxication levels would need to be set. Our L.A. marijuana lawyers have written extensively on this issue. In theory, what Gascon proposes makes sense. However in practice, we know that marijuana behaves differently in the body and that intoxication is not as easily measured with marijuana is it is with alcohol. That means we’re going to end up punishing regular users of the drug – which stays in the human body for days or weeks after consumption – for impairment, even though they may not actually be under the influence.

Still, most rank-and-file officers have expressed the opinion that pursuit of marijuana prosecutions is “a waste of time,” Gascon said. For those who pledge to serve, protect and help, many question the harm that such action has on a community, versus the nominal or non-existent benefit.

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

Additional Resources:

Just Say Yes: Some California Law Enforcement Leaders Support Legalizing Recreational Pot, May 5, 2016, By Richard Winton, Los Angeles Times

More Blog Entries:

Pending Marijuana Ruling Could Limit Federal Prosecutions, May 6, 2016, California Marijuana Lawyer Blog