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

Another major consideration that is coming into play is how to co-exist with other businesses. Partnerships between mutually beneficial businesses can be highly profitable for all parties involved. However forming such deals can be tricky given the perceptions around the cannabis industry as well as non-cannabis businesses wanting to remain compliant with all relevant laws.

Before joining forces with sister businesses, it’s important for cannabis entrepreneurs to speak with a marijuana lawyer with an expertise in laws to guide you in best practices for a partnership.

One such partnership has recently come into question in California’s neighbor state of Nevada, which voted to legalize the sale of recreational marijuana in 2016. However, according to the law, cannabis can only be consumed in a private residence. That means the abundance of tourists who pour into Las Vegas and the surrounding areas each year cannot use marijuana in casinos, hotels, or the many other attractions in the area.

That’s why the Nevada Gaming Policy Committee recently began reviewing ways for the casino industry to work with cannabis businesses, both recreational and medicinal, according to a report by casino.org. While many states with marijuana legalization on the books prohibit public use, the issue affects Nevada more than other states due to its massive tourist industry.

The 12-member panel, consisting of top government and business leaders in Nevada, will hear arguments as to why marijuana use should be allowed inside casinos from experts, including the CEO of Colorado’s Marijuana Business Daily, host of the Marijuana Business Convention & Expo.

However, Nevada’s Gaming Commission has already taken a strong stance against marijuana use in gambling resorts, reinforcing that it has no interest in changing the laws, but rather wants to interpret the current law and apply it accordingly. Thus far, the commission has ordered casinos to not only forbid marijuana use on property but also to refuse to host conventions and events related to the cannabis business industry. One resort took it a step further and has denied known representatives of the cannabis industry access to its rewards program.

This type of oversight is going too far, considering the economic boon available to casinos and resorts that play ball with the marijuana industry. Marijuana-related conventions and meetings could still be forced to comply with the laws regarding usage while resorts capitalize on the influx of attendees. For example, the most recent Marijuana Business Conference & Expo brought more than 10,000 visitors and 700 vendors into Las Vegas, a perfect opportunity for many cross-promotional benefits that could still comply with state law.

It is the hope of many cannabis business owners and convention operators that the committee will recommend the commission ease up on some of these restrictions, particularly the ones that seem to be overly cautious and not actually a reflection of the laws at hand. California marijuana attorneys will be watching these events very closely as the state continues to establish its own rules and regulations.

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 in Casinos? Nevada Gaming Policy Committee to Review Position, November 27, 2017, By Kevin Horridge, Casino.org

Nevada Marijuana Legalization, Question 2 (2016), November 8, 2016, Ballotpeedia

More Blog Entries:

Medical Marijuana Now Available in Las Vegas, August 22, 2015, by Cannabis Law Group

The Mercury News spoke with state Cannabis Czar Lori Ajax to learn what Californians can expect to happen with recreational cannabis business licenses come January 2. Ajax acknowledges that not every business license will be issued on Day 1, but claims that applications will be accepted, and the online system will be up and running. Ajax also claims that temporary licenses may be issued in order to facilitate a timely start to sales of recreational marijuana. Furthermore, medical marijuana business licenses will continue to be valid until the state makes final determinations about the regulation of medical marijuana licensees. Holders of medical marijuana cards will, therefore, be able to obtain cannabis from local dispensaries, regardless of the state of recreational business licenses on January 2, 2018. Los Angeles Follows Suit Like the state, the City of Los Angeles has also prepared for recreational marijuana regulation with the appointment of a Cannabis Czar. The Los Angeles Daily News reports that Cat Packer was confirmed by a City Council vote of 13-0. Packer will serve as executive director of the new Department of Cannabis Regulation. She previously served as policy director for the Drug Policy Alliance – an organization which lobbies states for changes to marijuana laws. Packer has been critical of the disparate effects that marijuana prohibitions and law enforcement actions have had on the black community and other minorities. In her confirmation hearings, Packer told the City Council that the “War on Drugs” has affected communities of color. She also pledged to bring a scientific and data-driven approach to the industry. What This Means for Recreational Marijuana Businesses in Los Angeles Like the state, it is far from certain that the City of Los Angeles will be prepared to grant every applicant a cannabis business license on January 2, 2018. However: it is clear that the City is putting regulation, executive management, and staffing in place in order to prepare for the transition. Cannabis business owners can best prepare for these changes by staying abreast to changes in the law and administration. By following the news, business owners can obtain applications in advance, fill them out properly, prepare supporting documentation, and be ready to submit their application packages as soon as possible. New recreational marijuana laws can bring regulatory challenges for new business owners. A dedicated cannabis business lawyer can help cannabis entrepreneurs access capital, form strategic plans, and build a profitable business from the ground up. The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734. Additional Resources: LA leaders OK cannabis czar as ‘new era’ of recreational marijuana approaches, August 16, 2017 by Elizabeth Chou, Los Angeles Daily News More Blog Entries: Can California Cannabis Companies Combat Racial Inequality? August 27, 2017, by Cannabis Law Group