By the end of California’s second year permitting the legal sale of adult-use recreational marijuana, the state’s per-capita sales reached just $70 per consumer. Comparatively, Colorado’s year two per-capita sales came in at $99, closely followed by Oregon at $97, while even Washington state reached $89.

California’s Cannabis Market Pitfalls Industry insiders estimate that the Californian market could have delivered an additional $1 billion in sales during its second legal year, if it could only have kept pace with these other states.

Our Riverside County marijuana business attorneys note there are many factors contributing to the state’s cannabis market challenges, such as:

• The size and scope of California’s illicit marijuana market, continuing to secure a sizable piece of the state’s cannabis spend;
• The illicit market’s ability to undercut licensed retail store marijuana prices, particularly as illegal storefronts can dodge the 30% retail tax captured in most cities, plus the $9.65 per ounce tax on adult-use cannabis sold at wholesale; and
• The limits imposed throughout California a number of local municipalities prohibiting cannabis business operations within their boundaries.

Licensed Business Owners Los Angeles business owners have shared that they are yet to see big increases in bottom lines. Even though they have seen pickup in foot traffic through their stores after the California-based online marijuana advertising site, Weedmaps, ceased posting ads for any marijuana stores without state permits, it has not amounted to much. That’s because they typical amount each customer is spending in store has also nose-dived. As a result, even with more customers, store revenue has basically remained the same.

Some Cities Are Making Adjustments Amid warnings that high city and state imposed cannabis taxes are effectively stoking the underground marijuana market, and in response to industry-wide calls for help, Monterrey County and Oakland have lowered taxes on marijuana sales. Whether those tweaks will deem effective in the long term remains to be seen.

Implications There is still huge growth potential for the legal cannabis market in California. The sooner the state can seriously combat and discourage illicit market operators, the better for fully licensed, law-abiding cannabis businesses. If taxes could be relaxed and limitations on operations lifted in certain communities, the growth in California’s legal marijuana market could be huge.

But as it stands, California’s local and state taxes on marijuana sales are set so high that it’s virtually impossible for legal retailers to compete with the unregulated market on price. Safety is a different issue. Following the vaping crisis that has claimed many lives, consumers seeking vaping products appear to be more readily seeking out permitted shopfronts for those transactions. 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: How California’s Legal Marijuana Market Wound Up in Crisis Mode After Two Years — Marijuana Business Daily, (January 30, 2020)

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

Agriculture is working on a system of regulations for naming craft cannabis strains. According to a report from Ganjapreneur, this is similar to the way the system of naming works for wines, in which a wine must actually be from the Napa region in order to carry that moniker on its label. CalCannabis Cultivation Licensing, the arm of CDFA that controls marijuana growers, is planning workshops in September to gather feedback and provide more information to cultivators.

The area known as the Emerald Triangle in Northern California has earned its name due to its high rate of cannabis cultivation. In fact, it’s the largest marijuana-producing area in the country. Growers in the region would like to capitalize on their world-renowned status to help give their product recognition and increase its desirability. They pride themselves on creating interesting, high-quality strains and growing in top-notch environments, and they want to make sure that random grow operations from some other region can’t use their regional names on their own labels. As anyone in business knows, sometimes a remarkable product isn’t enough. When a market is saturated with a great deal of product that all appears to be the same, at least on the surface, branding becomes essential to help certain products stand out. Cannabis businesses are no different. This is especially true when you consider the average cannabis consumer is accustomed to just accepting whatever was available to them. In an era of recreational legalization, choices are far more plentiful, and it takes more to stand out among the crowd. Consumers need as much information as they can get about the type of cannabis they are purchasing, the strain, and what makes one product different than another. The right marketing can achieve just that.

Our cannabis business attorneys in Riverside are well-accustomed with the marketing considerations of marijuana businesses. We have experience guiding entrepreneurs and investors in how to best protect their market identity in a cutthroat business environment. Our legal team is well versed in trademark and copyright laws that will give you ownership over your unique brand and help customers distinguish you from the competition. Solid, distinctive branding helps customers establish recognition and trust for your product as they begin to connect your branding with quality experiences.

Many small farms and luxury manufacturers look to branding to help set them apart from mega-farms that have taken root in California, seeking to dominate the market. CDFA is taking a page out of the wine country playbook, looking to its regulatory agencies in how to create an “appellation of origin” system. CalCannabis has been tasked with establishing regulations for regional titles by Jan. 1, 2021. In the meantime, it is important to secure your branding copyrights and trademarks to protect your business immediately. Our skilled attorneys can help you with the necessary steps and considerations to protect your brand under the law. We also can help protect your company in the future from other businesses infringing on your protected branding or intentionally trying to cause customer confusion.

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

Additional Resources:

CDFA’s CalCannabis Appellations Program Survey, July 26, 2018, California Cannabis Portal

More Blog Entries:

Smaller Cannabis Business Operations Need More Support, March 9, 2018, Cannabis Law Group

food policy legislation) measures to legalize industrial hemp sales, cultivation, and processing, according to a report from Forbes. Hemp is a variety of cannabis popular for its lower concentrations of THC and higher levels of CBD, the non-psychoactive component of marijuana. This has made it ideal for creating a variety of products, from plastics to biofuel to animal feed to yarn.

The federal ban on marijuana has made no distinction between these strains of cannabis and THC-laden versions, which has caused Americans to seek out everyday products that happen to include hemp from other countries. Finally, a bipartisan group of politicians, led by Mitch McConnell (R-KY), is standing up for this common sense action.

The bill would open the door to hemp farming nationwide, not just states with legalized marijuana, and would allow those plants to be insured just like other crops. As the bill stands, it also would legalize other products, such as CBD oil, which is used for many medical purposes, including pain, anxiety, and seizures. It has been touted as a useful resource in weaning people off of opioids and acting as an effective pain relief substitute.

Champions of cannabis watch in wonder as a plant the federal government has gone out of its way to demonize and criminalize has continually been given special exceptions. Legislators have attached an amendment to Congressional spending bills preventing federal prosecutors from using funding to go after operations that are following their own state’s laws. From state to state, opinions vary as to whether cannabis should only be used to treat very serious diseases, or if it can be recommended for any ailment a doctor so chooses, or if it can help friends relax and enjoy a good Saturday night. Debates rage over what levels of THC versus CBD should be allowed in products. Now hemp, an obviously innocent victim in the battle over cannabis, is finally back on the table in serious public debate. We have wasted so much time nit-picking which elements of the cannabis plant are good and which should be regulated, and we can mince words all we want. In doing so, however, we keep dodging the most relevant question: why on earth is this clearly beneficial plant still banned?

The answer, like many things, is political. Controlled Substances Act, 21 U.S.C. Section 812 put cannabis on the list of Schedule I narcotics, with the ludicrous claim that the drug is addictive, has no medical benefits, and is harmful even with supervision of a medical professional. The “evidence” to support these claims is dubious at best; yet supporters of marijuana have had to move mountains to prove its worth. This line of thinking has laid waste to many cannabis by-products, such as hemp papers, yarns, and fabrics, and CBD oil, none of which cause the high sensation that has ruffled so many feathers. In fact, hemp used to be a major crop in the U.S. before all the unnecessary hysteria over cannabis began. Instead of recognizing the nuances of the plant and its myriad uses, our country doubled down on banning it in every way possible until states started to fight back in recent years.

Our cannabis business attorneys in Riverside are very interested to see how developments regarding hemp and all its possible products play out. We are here to assist any business owners interested in the hemp industry figure out how changes to federal, state, and local laws could impact your business and potentially help it grow.

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:

Removing Hemp From Controlled Substances List Is Overdue, Farmer Says, June 28, 2018, By Esther Honig, NPR

More Blog Entries:

Too Many Weed Farms? No Such Thing with Hemp and CBD Oil, May 15, 2018, Cannabis Law Group

set of insects and animals and requires special care to deter wildlife from harming crops. Farmers must also take into consideration how pest-control methods could harm natural surroundings and affect the people who will consume the product. Cannabis farms are no different, though they lack the years of shared wisdom other farmers have gathered. In fact, cannabis farmers have to be even more thoughtful in some ways about what they use because their end product isn’t easily washable like an apple. Although it wouldn’t seem a cannabis attorney would be your first consult on this front, it’s worthwhile to review it with your counsel so you are sure you’re abiding local and state environmental regulations.

The California Department of Pesticide Regulation, has been tasked by California’s Medicinal Adult-Use Cannabis Regulation and Safety Act to provide guidelines for pesticide use in cannabis farming. The department said there is not a pesticide product federally registered for use specifically for cannabis farmers. However, there are plenty of pesticides that can legally be used on cannabis so long as they meet certain criteria. According to the department, the state permits certain pesticides for use on cannabis crops that are “exempt from residue tolerance requirements and the product is either exempt from registration requirements or registered for a use that is broad enough to include use on cannabis.” Examples of substances exempt from registration would be food-grade essential oils, such as peppermint and rosemary. A full list of legal pesticides for cannabis farms is provided by the department. Warning labels on pesticide packaging also must be adhered to in regards to how much pesticide is used and how frequently it is applied to maintain safe levels.

Officials are voicing concerns over an increased use of Carbofuran, a highly toxic pesticide that’s illegal in the U.S. This type of pesticide has become popular with unlicensed marijuana farmers because of its effective pest control, but it has extremely adverse effects on wildlife and the end product. While strong pest control can be appealing, this is not a corner cannabis farmers can afford to cut. Consider this: the reason the chemical is so effective is that a single teaspoon can kill a bear. There’s a reason this pesticide is illegal and should not be trifled with. The Department of Pesticide Regulation also provides a list of pesticides, including Carbofuran, that are not permitted for use on cannabis crops.

Not only is using proper pesticides the right thing to do for the environment and your customers, it’s also the best thing for you and your business. Attorney McGregor Scott, the top prosecutor for northeastern California, has stated he intends to leave the state’s new legal recreational marijuana market alone, according to an article from The Sacramento Bee, but has his sights on those who are skirting key regulations. On a short list of his top concerns are organized crime, farming on public lands, interstate trafficking, and use of Carbofuran.

Making a quick buck today isn’t worth harming animals, putting the safety of people in jeopardy, losing your business, and facing criminal prosecution tomorrow. That’s why it’s essential that cannabis businesses learn about proper regulations, obtain licenses, and form a business plan that has longevity with the help of our skilled Riverside cannabis business attorneys. We’ll show you how to stay out of the way of the law and keep safety a top priority while still making money.

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:

Use of Toxic Pesticides Increased in California’s Illegal Weed Farms, May 30, 2018, By Nick Lindsey, High Times

More Blog Entries:

One California Sheriff Warns Marijuana Users About Pesticide Dangers, June 3, 2016, Cannabis Law Group

of data about the cannabis industry. Our attorneys know one of the most difficult things about establishing any new industry is lack of concrete data. There can be a lot of growing pains as authorities and economic leaders gather a foundation of facts that help in making critical decisions about public safety, regulations, and taxation. This is particularly true when dealing with a controlled substance, like marijuana. Even though marijuana has been legal for medical purposes in California since the passing of the Compassionate Use Act of 1996, the switch to recreational legalization in the state as of Jan. 1 was a real game changer. MAUCRSA, Medicinal and Adult-Use Cannabis Regulations and Safety Act, was created to combine guidelines for medical marijuana with all the new stringent licensing rules for recreational cannabis, so all regulations lived under one umbrella.

The mission of the newly formed California Cannabis Authority is to “develop and manage a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource.” The more local governments that participate, the more compelling and significant the data will be for everyone who accesses it.

The group was created by the California State Association of Counties Finance Corp. The group started with San Luis Obispo, Humboldt, and Monterey Counties on board, with Mendocino following suit. According to a report by the Ukiah Daily Journal, the platform will make it easier to track tax payments, provide compliance information to county departments, and allow health officials to access product information. Our knowledgeable cannabis business attorneys in Riverside know this database is helpful for public officials, but also to the sustainability of cannabis businesses. Sharing this information can increase understanding between local governments and owners. Detailed tracking of finances, taxation, licensing and regulatory compliance could also pave the way for financial institutions to more easily work with cannabis-related businesses. Financial institutions must have an excessive amount of proof that a cannabis-related business is following all state guidelines before a relationship can form, so a database of this sort would be an excellent first step to easing this process significantly. In turn, this benefits the cannabis industry, which largely has to operate with cash. Any modern businessperson will tell you this is a gargantuan feat. The long-term stamina of the marijuana industry is dependent in part on allowing growers and distributors to move their platforms into the 21st century.

Cooperation between cannabis businesses and local governments is a positive thing, and the hope is we’ll soon see more of it in Southern California. Trust and communication are key factors to success going forward, which is why our marijuana attorneys work with cannabis businesses to establish a business framework that incorporates regulatory considerations and financial viability. We want to see your business start off on the right foot and continue to grow into the future.

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:

California Cannabis Authority (CCA), California State Association of Counties

More Blog Entries:

Cash-Only System Tough on Marijuana Businesses When Paying Taxes, March 27, 2018, Cannabis Law Group

politicians at the federal level are starting to wise up and take this issue seriously as well. Senate Minority Leader Chuck Schumer (D-New York) is introducing a bill to remove marijuana from the list of Schedule I narcotics as part of Controlled Substances Act, 21 U.S.C. Section 812. He said he also wants to leverage this issue as a way to bolster women and minority cannabis business owners.

Politicians have been slow to take a stance in favor of cannabis, even though most of us know it can be a life-changing, medically useful drug. Some have supported passive measures here and there trying to give states some freedom without themselves taking a stand. For example, the Rohrenbacher-Blumenauer Amendment, which has to be renewed annually by Congress into the spending bill, prevents the Department of Justice from using federal funds to seek action against medical marijuana activity that has been legalized in that state. Some have tried to inaccurately portray cannabis as a partisan liberal issue, but even democrats have been shy to give full support. However, as The Washington Post reported, Sen. Schumer has acknowledged that the American people have evolved on this issue and it’s time for a big change.

As our trusted Riverside cannabis business attorneys can explain, by removing the Schedule I status, the federal government would not be legalizing marijuana per say. That would require Congress to create and pass regulations and rules for how the cannabis industry would function nationwide. Rather by removing it from the list, marijuana becomes decriminalized and whatever laws are established by each state would become the highest authority unless Congress takes further action. It would also acknowledge that marijuana has no business being classified Schedule I, a designation given to drugs that have no medical benefits, are addictive, and are harmful. Examples of other drugs on this list are heroin and LSD. Removing this classification would also open the doors to much needed funding for medical marijuana testing and research, that previously has been restricted.

It is to be expected that there would still be some fringe people who would still be clinging to archaic ideas about marijuana. After all, the rampant anti-marijuana propaganda of the past century was pretty powerful and is difficult to deprogram from the American psyche. But it is unconscionable that those politicians who know the evidence and science would continue to stand by and allow so many constituents to be branded as criminals in the eyes of the Department of Justice. Attorney General Jeff Sessions is one of the people more persuaded by propaganda than evidence on this issue and has vowed to enforce marijuana’s Schedule I status. This is why declassification is more important now than with the past administration, whose DOJ was more sympathetic on the matter.

It’s remarkable to look around at how far we’ve come since 1996 when California was the first state to pass medical marijuana protections with Proposition 215. Now there are now 29 states as well as the District of Columbia that have legalized medical marijuana. Of those states, eight also allow recreational use. That means the majority of people in this country live where marijuana has been legalized by the state. Our attorneys support federal declassification of marijuana as a vital step in the protections of the rights of patients and responsible recreational users in California.

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:

On 4/20, Chuck Schumer to Introduce Bill to Decriminalize Marijuana, April 20, 2018, By April Davis, NPR

More Blog Entries:

Medical Marijuana Advocates Take Aim at Goliath Department of Justice in Court, Feb. 17, 2018, Cannabis Law Group

banning) marijuana businesses, growing operations, home cultivation, testing, sales, manufacturing and distribution. That same divide is reflected in the Riverside County Board of Supervisors in how to handle regulations in unincorporated parts of the county. But it looks like after a recent vote, the board will be moving forward on its own with those regulations, while also forgoing a tax ballot initiative in November, according to an article from The Press-Enterprise.

As our marijuana attorneys can explain, even though Proposition 64 passed in November 2016, and adult-use sales were permitted beginning Jan. 1, 2018, it did not mean an automatic free-for-all everywhere in California. The Medicinal and Adult-Use Cannabis Regulation and Safety Act was voted into place by state legislators in June 2017 to streamline the existing Compassionate Use Act of 1996 with the incoming recreational marijuana laws. MAUCRSA Section 18-26032(a)(2) outlines that the actions of marijuana businesses “are not unlawful under state law” so long as they are “permitted pursuant to local authorization, license, or permit issued by the local jurisdiction, if any.”Though this system allows local governments to retain control and make what they believe to be the best choices for their jurisdiction, it’s also leading to a lot of confusion among residents and business owners. Not to mention it leaves the door open for the continued propagation of myths and stereotypes about the marijuana industry to take root in these well-meaning but often misguided city-by-city debates. The confusion is heightened for what to do about the unincorporated areas that do not fall under the jurisdiction of a city, which is where county officials step in.

In Riverside County, cultivation has been illegal in the unincorporated areas under Ordinance No. 925, which passed the Board of Supervisors more than a year before Prop 64 went up for a vote. The ordinance allowed some exceptions for medical marijuana, with a limit of 12 plants that must be kept on the property of a qualified patient or their primary caregiver. But the recent decision by the board paves a path to set up regulations to negate the ordinance. One board member said this route made more sense than putting the measure up for a county-wide vote since the unincorporated areas contain only 379,000 of the 2.4 million residents in Riverside County. The board is opting instead to work directly with developers to set up agreements, including working out payments to pay for added law enforcement.

Our Riverside marijuana business lawyers find it refreshing to see decisive action being taken, especially since the possibility of legalized cultivation has been in the works for some time. An ad-hoc committee was established back in August of last year to start creating a regulatory structure for a pot economy in the county. We hope to see the county put some business-conscious rules in place that encourage a robust and legal marketplace sooner rather than later.

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:

Marijuana Regulations in Focus at Riverside Supervisors Meeting, March 19, 2018, KESQ3 News

More Blog Entries:

Riverside County Sheriff Still Cracking Down on Marijuana Grow Operations, May 11, 2015, Cannabis Law Group

attorneys know there are many good reasons to invest in insurance.

A recent article from Santa Barbara Independent reveals a big payout one cannabis farmer in Carpinteria received due to losses caused by the Thomas Fire in December, the largest wildfire in the state in recent history. The farm got more than $1 million dollars from their insurance company after thousands of marijuana plants on property were destroyed. This equated to about market value for the plants. While the farm’s crops did not burn in the fire, white ash blew into the greenhouses and tainted the plants. The plants tested positive for lead, arsenic, asbestos, and magnesium. This type of damage was covered under the policy’s clause covering changes in atmospheric conditions.

Meanwhile, most of the other cannabis farms in Northern California were not so fortunate. Many opted out of insurance policies to keep costs low. This money-saving tactic is typical among farmers of all kinds, who often skip this expense to keep profit margins higher. But this is a big gamble, particularly in an area so prone to fires. Our Riverside cannabis business attorneys know that some owners avoid insurance policies in order to keep a low profile. This is rooted in years of living in fear of government crack downs and the failed “War on Drugs,” which is charade used to control and oppress certain communities. A huge weight has been lifted with the implementation of Proposition 64 this year, making both medical and recreational marijuana legal in California.

But the shift in power at the federal level and the insistence of Attorney General Jeff Sessions to enforce marijuana’s Schedule I classification under Controlled Substances Act, 21 U.S.C. Section 812. Owners are unsure who to trust and feel vulnerable with each new relationship they have to form to keep their operation afloat. However, given that insurance is already required for other aspects of business, such as liability, building protection, and workers compensation, insurance to protect the crops so vital to your profits just makes good sense. These good business practices are all the more reason marijuana finally deserves to be declassified at the federal level and be officially legalized nationwide.

Others may not even know that there are options to insure crops, since insurance companies must abide by federal regulations. But recent workarounds have opened up options.

The uncertainty owners feel right now is why it is so important to rely on the legal guidance of a skilled law firm to guide your cannabis business. Our business counseling services help you make essential choices for your business and keep you in compliance, while keeping a watchful eye on happenings on the federal level. We know how stressful staying current on regulations can be while managing a farm, dispensary, or production facility. That’s why we do the heavy lifting for you.

We also know fear of the government should not prevent you from doing what’s best for your business. We can advise you on the best decisions to protect your assets, resources, and profits, while remaining compliant with state and local laws.

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:

Cannabis Farmer Gets Over $1 Million Insurance Payout, March 19, 2018, By Kelsey Brugger, Santa Barbara Independent

More Blog Entries:

California Department of Insurance has First Filing for Cannabis Coverage, Nov. 11, 2017, Cannabis Law Group

business. They are open to paying taxes and following the rules. However, they are facing many barriers to achieving this end goal while operating a successful business – one of the biggest being the law itself.

This message was delivered loud and clear at a recent meeting in Ukiah, Calif., which included government officials and Northern California marijuana industry leaders in the first gathering of its kind, according to The Press Democrat.

The Sonoma County agriculture commissioner used this forum to address the seemingly endless patchwork mix of state and local regulations to which marijuana businesses must adhere and how detrimental they have been to established cultivators who want to operate legally under Proposition 64. Known as the Adult Use of Marijuana Act, Prop 64 went into effect earlier this year and allows adult-use marijuana legal in the state – but only for counties and cities whose leaders chose to adopt the law. Local governments have the right to continue to ban adult-use marijuana and to regulate it as they see fit.

Our experienced Riverside cannabis business attorneys know hyper-local regulations on top of the state regulations have become an onerous obstacle for smaller business owners. As such, the rules inherently favor larger corporations, which have the infrastructure and capital to adapt to the ever-growing list of guidelines and laws. Farmers at the meeting shared anecdotes of mega-operations nabbing licenses in bulk, while smaller cultivators struggle to meet the requirements to obtain one. Big corporations have been taking advantage of a loophole in state regulations that capped the size of an operation per license, but did not limit how many licenses one owner can obtain. And now the state is opening the doors to large-scale farms, something that was supposed to be restricted until 2023, making it even easier for big business to take root.

These stifling policies are having effects throughout the supply chain as well. Without more licensed cultivators, there is not enough inventory to go to distributors, dispensaries, and retailers.

Part of the problem, participants said, is that many of the rules have been made to appease those who fear cannabis. They are looking to leaders to help dispel the myths that have kept marijuana underground for far too long. Of course some rules are necessary, but others are only meant to soothe the apprehension of those who don’t want to trust the evidence right under their noses. We need to limit regulations to those that actually help the environment, communities, employees, and the safety of consumers, rather than those that are based on fairytales.

Until that time, our knowledgeable team of attorneys can help you understand current laws and regulations and decipher what you need and don’t need to get your business in compliance. We streamline the process so you can focus on what you do best: running a great cannabis business that serves the people of California. We want to see your business succeed and can equip you with the tools to put you on the right path.

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:

Smaller Pot Growers in State Feel Stifled, March 1, 2018, Julie Johnson, The Press Democrat

More Blog Entries:

Small Marijuana Farmers Take State to Court, Feb. 7, 2018, L.A. Marijuana Lawyer Blog