Congress is currently mulling the 2023 Farm Bill, while state lawmakers across the country are slated to hold their yearly sessions. Many are expecting hemp extract sales and shipments – particularly those happening online and across state lines – are likely to get attention from both federal and state lawmakers.

As our Los Angeles marijuana business lawyers can explain, the concern with delta-9 products is that they possess intoxicated properties, yet aren’t being taxed, overseen by safety regulators, and are being shipped across state lines with little oversight.

For those who may be unfamiliar, delta-9 products are different than delta-8. Delta-8 THC products are manufactured in labs. Lawmakers have set limits on delta-8 products. So now, some hemp manufacturers have concentrated the delta-9 THC that already exists in hemp plants, allowing them to make tinctures, edibles, and vapes that are intoxicating – and then sell those online. Delta-9 is the THC compound created when raw hemp is heated, but in smaller amounts than what one might find in a cannabis extract.

Some manufacturers doing this have gone on record to say that doing this allows them to operate in currently-underserved markets. Some marijuana businesses contend that purveyors of this practice are cutting corners unfairly by using hemp – which is legal at the federal level – to make THC – which is not. The intoxicating properties of THC are what led to prohibition of it in the first place, and what continues to be a sticking point for overturning stringent federal laws against marijuana sales.

The sudden popularity of hemp-derived delta-8 over the last few years was largely unanticipated. Hemp farm operators and retailers saw a sudden new potential in a part of the plant few had previously paid attention to.

Still, many hemp operators have been careful to remove any trace of intoxicating THC from their CBD products, for two main reasons:

• To avoid unwanted attention and oversight from federal authorities.
• To attract consumers who don’t want to be intoxicated/who may be drug tested.

Delta-9 has somewhat confused matters. A fair number of marijuana business advocates assailed D-8 products because they were made in a lab through a chemical conversion process that lacked health and safety oversight. It was those criticisms that largely fueled the delta-9 hemp extract market. Technically, a 5-gram gummy can contain more than 15-milligrams of delta-9 THC and still comply with federal regulations because it still comes in under 0.3 percent THC by dry weight. Being able to market it as both natural and legal was a compelling point for some hemp growers, manufacturers, and retailers. However, many California marijuana businesses have viewed this as unwelcome competition. Many had seen a bright-line partition between hemp and cannabis. Of course, hemp is cannabis – and always was (just like marijuana). But delta-8 and delta-9 products blur the lines between marijuana-derived products and hemp-derived products.

Those in the hemp industry may be enjoying something of a free ride for the moment, but that’s because they aren’t operating under the same crushing weight of taxes, regulation, and black market competition those in marijuana growth and sales.

Hemp industry insiders, however, insist they aren’t in competition with marijuana companies. Rather than respond to concerns by quickly imposing the same taxes on hemp-derived products, they urge an easing to the marijuana business taxes.

Those on all sides of the table will closely be following the discussions regarding the Farm Bill, as this will be the first time it’s been revised since it opened the doors to hemp and CBD in 2018.

It should be noted that even if the THC content meets the federal definition of hemp, states still have the authority to oversee the safety of ingestible products sold within their borders. Some have noted that if you change the composition of hemp, it may no longer be considered legal in certain states.

Those that are selling d-9 products should do so with great care, particularly if they’re doing so through online sales/the mail. Consult with an experienced cannabis law attorney to ensure you are in compliance.

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:

As hemp THC sales boom online and by mail, cannabis industry braces for crackdown, Feb. 9, 2022, By Kristen Nichols, Marijuana Business Daily

Recently, the Internal Revenue Service (IRS) issued tips for cannabis compliance. The federal agency noted that while it’s outside of the agency’s power to resolve many of the unique business predicaments that arise from federal prohibition, it wants to help support cannabis companies in becoming tax compliant. Even though marijuana continues to be classified as a Schedule I narcotic by federal authorities, these businesses are still required to shell out federal taxes.

In September, the agency released tips for tax compliance for cannabis businesses. Among those:

• Know your investors. Thousands of people are fighting to get into the industry, but working with investors may have some tax implications and repercussions for cannabis companies. Unregistered and “silent” financing and ownership arrangements, with investors sometimes being referred to as “beneficial owners,” get the benefits of ownership but avoid having the property title or activity in their name. That creates numerous challenges for the IRS, and it may result in issues for proper tax filing and accurate reporting of gross receipts. Also, cannabis business owners should be wary of nefarious investors who attempt to put their funds into a business like this, but jeopardize the entire operation with allegations of money laundering.
• Make sure you’re licensed. You can’t get federal licensing, but make sure you have proper state and local licensing for your operation.
• Timely file and pay your taxes. Even if your business operates with cash, you’re still responsible to file and pay your taxes on time. IRS code doesn’t parse out which income stems from legal vs. illegal sources. All income must be reported. Note that because you’re dealing with a Schedule I narcotic, you must abide by Section 280E – even if your business is 100 percent state legal. That section doesn’t bar you from reducing gross receipts by properly calculating the cost of goods sold to ascertain gross income, though you may not be able to deduct things like selling or advertising expenses. There aren’t any exemptions from employment tax. It may be beneficial to make quarterly payments. Late payments can result in interest and penalties. Non-filers are a priority enforcement for the IRS. So too are those who use cryptocurrency; it’s imperative to use a reputable exchanger.
• Report cash transactions. Your business may not use traditional banking, but you still need to report all cash transactions. Any company receiving $10,000 or more in cash (which is most California marijuana businesses) need to file Form 8300 within 15 days of receiving that payment. Failure to be diligent about this can cause major headaches for your business.
• Maintain good records. This is mission critical for a cannabis business. Keeping meticulous records – all receipts, canceled checks, any shred of documentation that can support income, deduction, or credit should be kept in some form. Keep these records even for expenses that aren’t legally deductible because it’s going to make it easier to prepare your returns and also answer a question quickly if one arises.

Despite the challenges, the IRS hopes to keep audits to a minimum by promoting voluntary compliance wherever possible, addressing unintentional non-compliance with proactive education. Companies that want to be proactive need to be working with an attorney and a qualified accountant.

Freeing up banks to work with state legal cannabis companies would obviously make working with the IRS (and so much more) a great deal easier. Federal regulators have repeatedly chastised Congress for failing to move forward on marijuana reform. The House of Representatives has five times now passed the Safe and Fair Enforcement (SAFE) Banking Act, but it’s been shot down each time by the Senate. Former U.S. Treasury Secretary Steve Mnuchin repeatedly pushed this issue, saying the existing policy has resulted in substantial problems for the IRS and financial regulators.

Some have gone so far as to call this a public safety issue, given the fact that marijuana businesses that deal almost solely in cash continue to be high-crime targets. Despite this, a recent defense bill that was passed failed to include cannabis banking protections – despite bicameral negotiations.

If you are a marijuana business in Southern California concerned about regulatory and tax compliance, our dedicated marijuana lawyers can help.

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:

Providing Resources to Help Cannabis Business Owners Successfully Navigate Unique Tax Responsibilities, Sept. 27, 2021, IRS

The California Cannabis Reform Project and Weed for Warriors organizations are working together to hammer out a ballot initiative that would, among other things, deprive local governments of the power to approve or deny licenses for cannabis business operators. They allege local governments have failed to wield that power effectively, in turn causing more harm than good, giving illegal operators a leg-up while making it harder for many law-abiding consumers in massive swaths of the state to obtain safe, legal cannabis.

As noted by analysis in the New York Times, roughly 8 in 10 of the state’s local governments have outlawed the sale of marijuana within their borders, effectively creating marijuana retail deserts. Local governments’ loss of control is effectively evidenced by the huge – and growing – illicit marijuana market.

Whether the ballot initiative has any hope of passing is questionable. As a Los Angeles attorney practicing cannabis law, I think it’s a fair assumption that local governments aren’t likely to cede any of the control they currently hold. A big part of the battle to pass Proposition 64 was gaining local government buy-in. Assurance of local control, while controversial, made it more digestible and was one of the only reasons some cities didn’t fight it harder.

However, five years in, it’s become clear that reform is necessary if we want to wrest control from the black market. Addressing issues of taxes and local control is going to be critical.

Organizations that represent cities so far haven’t commented on the effort, saying they don’t offer opinions on proposed ballot measures that have not officially qualified. Still, blanket statements were issued to the effect that local control of cannabis issues is something they still staunchly support.

Another element to the proposed ballot measure would be to restructure California cannabis taxes. The proposal would eliminate the cultivation tax, which is $9.65 per ounce of dry cannabis flower, $2.87 per ounce of dry cannabis leaves and $1.35 per ounce of dry weight for fresh cannabis plants. Further, it would reduce the existing excise tax, currently 15 percent of the average market price, to 5 percent. Further, it would bar local government entities from imposing any cannabis taxes. To compensate municipalities, it would grant local governments 1/5 of the total revenue of state excise taxes.

The effort of the cannabis activists is still in the early stages. Just getting the question in front of voters is estimated to cost $6 million on the low-side. The current planning phase involves discussions with lawmakers, lawyers and industry insiders and weighing whether such a measure would be best suited for presentation next year or in 2024.

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:

Should California reform its marijuana laws? Why advocates want cannabis back on the ballot, April 20, 2021, By Andrew Sheeler, Sacramento Bee

More Blog Entries:

California Cannabis Companies Should Expect More Audits, Taxes, March 30, 2021, Los Angeles Cannabis Lawyer Blog

As San Bernardino medical marijuana attorneys at The Cannabis Law Firm can explain, a medical marijuana prescription is the only means by which a person under 21 can lawfully obtain cannabis in California. HS 11361 prohibits anyone over 18 from “furnishing, administering or giving any cannabis to a minor” under the age of 14, with conviction warranting a state prison sentence of 3-5 years. Both parents of children considering pursuing a medical marijuana prescription for their child as well as doctors need to be aware of how the law is applied, under what conditions an adult can be considered in violation of the law and what steps are needed to ensure your legal protection.

The state medical board issued medical marijuana prescription guidelines last April for doctors.

The guidelines indicate:

• There must be an established physician-patient relationship, meaning they have taken responsibility for an aspect of the patient’s medical care, including diagnosis, treatment, counseling or referral.
• The physician conduct a medical examination of patient before recording in the patient’s chart whether he/she has a serious medical condition for which medical marijuana is appropriate.
• Recommendation for medicinal marijuana is at the doctor’s discretion, and may fall outside the the list of qualifying conditions outlined in the Compassionate Use Act (i.e., cancer, chronic pain, glaucoma, seizures, severe nausea, AIDS, arthritis, anorexia, etc.), but should his or her determination on the results of clinical trials, medical literature, reports and credible anecdotal evidence.
• B&P Code section 2525 prohibits physicians from recommending medical cannabis if the physician and/or immediate family has a financial interest in the facility where cannabis is obtained. No physician’s office should be located at a dispensary or cultivation center, and doctor’s should not hold a financial interest in these ventures. Cannabis clinics/dispensaries are barred from directly or indirectly employing doctors to provide recommendations for cannabis.

San Bernardino medical marijuana attorneys understand that in this particular case, the physician is alleged to have violated the standard of care by improperly diagnosing a 4-year-old with ADHD and Bipolar Disorder for which the cannabis was then prescribed. FOX News reports the Los Angeles doctor instead prescribed the drug for treatment of “temper tantrums.” The issue came to light when the child’s father, upon receiving a call from the school reporting bad behavior, told the staff to give the child a marijuana-laced cookie. Upon investigation, the board indicated the father reported “uncontrollable behavior and temper tantrums.”

The board noted that the doctor’s license was not revoked because he recommended marijuana to a small child. It was for his alleged “gross negligence” in failing to properly diagnose the condition before making that recommendation. The doctor did not personally observe the boy’s alleged behavior, did not review medical records for the child or refer him to a psychiatrist or seek information from the boy’s school. Reliance on family history alone, the doctor said, was not adequate grounds for diagnosis.

State law has allowed marijuana prescriptions for minors since the 1990s. However, it’s not allowed on school campuses, after a bill- named Jojo’s Act – that would have allowed it was vetoed last year by the governor. The medical board noted state law bars discipline of a doctor for recommendation of cannabis as a treatment for a serious medical condition, BUT the board will take action if the doctor “fails to comply with accepted medical standards… the same ones that a reasonable and prudent physician when follow when recommending any medication.”

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

Additional Resources:

Doctor who prescribed pot cookies to 4-year-old for ‘temper tantrums’ gets license revoked over diagnosis, Jan. 30, 2019, By Madeline Farber, FOX News

More Blog Entries:

California Growers Association Drops Lawsuit Over Large-Scale Cannabis Cultivation, Jan. 24, 2019, San Bernardino Medical Marijuana Attorneys Blog

recreational cannabis are legal in the state, the fight is not yet over. What can you do to help further marijuana legalization? As it turns out, quite a lot.

The passage of Proposition 64 and its predecessor, The Compassionate Use Act of 1996, were both clear examples of how civic participation could change the narrative for marijuana in California and the rest of the country. Many thought after those laws were passed, their work would be done. After all, California now has some of the most robust marijuana legalization efforts in the whole country.

For many in the state, however, it might barely feel like it’s legal at all. As our skilled attorneys can explain, that is because of parameters built into state law that allow local jurisdictions to enforce their own regulations or bans. Cities are not allowed to ban personal use or small personal grows in residents’ own homes, but everything else is pretty much fair game. Many cities have no sales and no cultivation … they won’t even allow testing labs or processing facilities within city lines. In fact, 40 percent of Californians have to drive at least 60 miles to find a legal dispensary. This simply is not a reflection of the will of the people.As we enter election season, this is an opportune time to talk to your representatives at every level. Even those who are politically engaged often forget how much impact their city councilors and county officials can have on their lives. Do a little homework on who your officials are in your precinct, especially those who are up for re-election this year.

If you live in a city where there are still strict cannabis bans in place, talk to your councilor or local representative about their stance on marijuana. Remain civil, calm, and open to listen to your councilor’s point of view. If they are against marijuana legalization, listen to their reasons why. This is an excellent opportunity to use the plentiful resources on all the benefits of cannabis to help educate and work around some of the many emotion-based hurdles that exist around the issue of marijuana.

Maybe you live in an area with ample cannabis liberties. This is a chance to set your sites on national representatives. Cannabis Voter Project offers a list of all of your representatives in the U.S. House of Representatives and Senate and where they stand on the issues most important to the cannabis industry. Remember, even the staunchest anti-marijuana politicians, such as John Boehner, have flipped over time when presented with the best information. For Boehner, it was the discovery of how many veterans preferred medical marijuana treatment over the many other options they had at their disposal. Taking time to understand where there are still misconceptions about marijuana is the key to bridging the gap.

Our experienced Riverside marijuana attorneys know how important it is to have strong advocates fighting for your rights as a cannabis user or business owner. We work hard every day to strengthen the cannabis business community in Southern California and defend people just like you in court. We need that same strong support in our city councils, state offices and federal government branches.

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’s ‘Pot Desert’ Problem, May 18, 2018, Green Entrepreneur

More Blog Entries:

Marijuana Wins Big on Election Night, Nov. 10, 2016, Cannabis Law Group

now officially the first former-Soviet Union nation to lift such a ban, according to a report from Newsweek. The change came down from a decision from the country’s constitutional court, which determined punishment for consuming marijuana is only applicable if a third party is at risk. By revoking the right of officials to punish individuals for consumption of marijuana, the court in essence made it legal.

The court did not appear to take a stance one way or another as to whether marijuana was dangerous or not. At the heart of the ruling, in fact, is the idea that it is not up to the law to punish people who are not hurting others. If the only person potentially experiencing harm by the use of cannabis is the user, then the government has no business interfering. The court deemed this to be a restriction of individual freedom. While this ruling still implies that there is harm that one could do to oneself by using marijuana, it does get to the heart of one of the many arguments in favor of legalization: Shouldn’t people be able to make personal decisions so long as they are not harming others?

This is the same thought process behind why we allow people to make bad food choices, even though heart disease is the leading cause of death for both men and women in the U.S. Food choices are an individual freedom, and moderation is up to the individual to monitor, even with studies that show some highly processed foods are intentionally engineered to be addictive in nature. Sugar has been shown to cause similar changes in the brain as addictive drugs, especially in regards to the release of dopamine. Yet we eat it regularly and even allow children to consume it with little thought. Alcohol is readily available to adults, even though we know 17.6 million people in the U.S. suffer from alcohol abuse or addiction. Each year, excessive alcohol use is attributed to the death of 88,000 in this country. National Council on Alcohol and Drug Dependence drew out the statistics even further: 40 percent of non-maternity hospital beds in the U.S. go to patients who need treatment for health conditions related to consuming alcohol. Meanwhile the number of marijuana overdoses documented in the U.S. is holding steady at zero, making it more perplexing why our leaders are still so hung up on outdated propaganda.

With cultivation and sales of marijuana remaining illegal in Georgia, our Riverside marijuana lawyers can explain there is still a legal gray area for those consuming cannabis, as there would be no way to obtain it other than illicit means. It is, however, the first big step toward broader legalization efforts. Once countries acknowledge there’s no compelling reason why people cannot use marijuana, it doesn’t take long to realize the benefits a cannabis economy could have. Uruguay lifted marijuana bans and implemented a heavily regulated marketplace in an attempt to gain control of increasingly violent criminal activity centered on drug trafficking. Canada has followed, allowing recreational use, cultivation, and sales nationwide beginning in October. Now that 30 states and Washington, D.C., have made at least medical marijuana legal in the U.S., it’s time for our country to follow suit and lift marijuana’s federal ban.

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:

5 Foods That are Actually Addictive — and How to Avoid Them, Oct. 2, 2017, By Keri Glassman, R.D., Today

More Blog Entries:

O, Cannabis: Canada Passes Adult-Use Marijuana, June 29, 2018, Cannabis Law Group

benefits, many parents and teachers are facing their next challenge: How do I talk to kids about marijuana? California has been tasked with establishing new education programs to effectively prevent children from consuming cannabis, while making them aware of the choices they will have to make as an adult in a post-legalization world. As such, we are seeing the classic “Just Say No” campaigns shift to a new message: “Delay.” According to an article from Brit + Co, the new strategies focus on lifelong health and good decision making.

Marijuana legalization has had major effects on the lives of adults across the country, with 30 states and the District of Columbia allowing for medical marijuana, and about a third of those states permitting recreational use. Many of the results of this legalization have been expected, including relief for debilitating medical conditions, such as chronic pain, epilepsy, and PTSD. Cannabis also has become an alternative to alcohol in social situations, without the same negative long-term health effects as alcohol. Also expected has been the boost for government coffers with an influx of marijuana tax revenue. The way legalization would come to effect the way we educate children was a bit unexpected. It makes a lot of sense, though, considering the way marijuana functions in our lives is entirely different than it was even 10 years ago.As our Riverside marijuana attorneys can explain, the “War on Drugs” shaped the way everyone spoke about cannabis. The propaganda being fed to adults trickled down into hardcore anti-marijuana education campaigns for children, as well. It’s true cannabis should not be consumed by kids, considering early research indicates it can stunt cognitive development in children. The answer, however, is far more complicated than outright prohibition. For example, the first cannabis derived drug approved by the FDA is Epidiolex, which is a liquid CBD formula specifically designed for children with severe seizures.

Furthermore, there have been no recorded deaths caused by marijuana overdose, so it is necessary to teach children about the drug in a similar way to alcohol. Instead of teaching solely about the dangers, the focus is on the proper time and place for consumption by equipping students with the facts. If we continue to try to convince children and teens that cannabis is evil and dangerous, they only need to look at the world around them to know they are being lied to. It is essential that they know why early consumption could be harmful to them specifically and how to make good decisions that will sustain them through adulthood. In other words: safety over scare tactics. As tax money continues to flood states and local governments from the sale of marijuana, funds will be flagged for more comprehensive drug education programs in schools. In the meantime, teachings are a bit inconsistent and unclear during this transitional time period.

Our legal team is supportive of all measures of education that expand understanding of marijuana while still keeping everyone safe. We have tried to demonize this beneficial plant for far too long. It is time for a common sense approach based on facts so that we can all move forward into a healthier 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:

Just Saying No to ‘Just Say No’: Drug Education is Evolving as Marijuana Becomes Legal, July 16, 2018, Marijuana.com

More Blog Entries:

Students Who Need Medical Marijuana Deserve Easier Access, Feb. 28. 2018, Cannabis Law Group

with a recent 4-3 vote that put a nail in the coffin for residents hoping to one day be able to legally purchase cannabis in their city. According to The Press-Enterprise, council’s decision effectively bans dispensaries, commercial cultivation, and any outdoor grow sites. Medical marijuana dispensaries were already banned by the city in 2007, and an intensive law enforcement strategy has kept illegal dispensaries at bay. Cannabis testing will, however, be permitted.

The tight vote is illustrative of how divided the city is over the issue. Riverside County was one that supported Proposition 64 by about 42,000 votes. Yet the county has banned cultivation, manufacturing, and retail, with individual cities also enforcing their own similar bans. When residents vote one way and their representatives vote in the opposite manner, it truly flies in the face of the will of the people. Try as they might, the city and county governments do not have the power to ban everything, though, no matter how many scare tactics they use to justify their agenda. Our Riverside marijuana business attorneys are familiar with all local, state, and federal laws regarding cannabis. As such, we can explain that Riverside is only permitted to ban certain marijuana activities under state law. Prop 64 stills allows adults 21 years and older to cultivate up to six plants indoors in a locked area of a private residence. They can process, possess, transport, or even give away limited quantities of cannabis (28.5 grams of marijuana or 8 grams of concentrates). Local governments can still implement regulations, but they cannot outright ban any of these activities.

City and local bans have created what are known as “pot deserts” throughout California, a term coined for areas that are 60 miles or more away from the nearest legal dispensary. Nearly 40 percent of the state falls into such a category. For those who perceive cannabis as a nuisance, this design is certainly intentional. Many, however, depend on cannabis to treat a variety of conditions, such as PTSD, Alzheimer’s Disease, as an alternative to opioids, and, yes, some people use it as a way to relax and have fun. Not everyone can grow the plant on their own, and some require it be processed in a specific way to best treat their condition. It’s a shame that the misconceptions of some are preventing so many from fully benefitting from statewide legalization.

All hope if not lost for Riverside residents, though. The county board of supervisors and planning commission are reviewing proposed regulations for cannabis commerce in the unincorporated communities in the county. If implemented, such provisions would potentially give Riverside residents easier access to dispensaries despite bans within city limits. Our legal team will be keeping a close watch on these developments with great anticipation. Our skilled marijuana business lawyers will be ready to help prepare local entrepreneurs for likely guideline they will be forced to adhere to, such as limitations on land size for cultivation, odor control, security, energy supplies, packaging, and a variety of regulations one might not even consider.

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:

Riverside County is Considering These Rules for Cannabis in Unincorporated Areas, April 9, 2018, By Jeff Horseman, The Press-Enterprise

More Blog Entries:

Unincorporated Areas of Riverside County Might Get Marijuana Businesses, March 31, 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

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

treatment from their vet?

A vast majority of rational Americans agree that the use of marijuana as a treatment for medical purposes is a decision that should be made between and doctor and patient. Recent polls show more than 90 percent of respondents favor medical marijuana with a doctor’s recommendation. And California has long been a defender of patient rights by leading the nation in medical marijuana legalization with the Compassionate Use Act of 1996.

So why should the decision be any different when it comes to animals and veterinary professionals?

As it stands, California law does not extend to veterinarians the ability to recommend marijuana as a treatment for animals. But AB-2215, introduced by Assemblymember Ash Kalra (D-27), is looking to change that. The bill would put the power in the hands of the Veterinary Medical Board by calling on them to set the standards for state-licensed veterinarians to discuss marijuana treatment for animal patient clients, and it would also prevent veterinarians from being punished for having such discussions.

That all sounds great, but the bill is receiving criticism from the Veterinary Medical Board for not being broad enough, according to American Veterinarian. The board recently voted 4-2 not to support the bill, citing a primary concern over the word “discuss.” Board members felt this language was too soft, and still didn’t empower vets to “recommend” marijuana for pets. They also voiced concerns over the disciplinary restrictions in the bill, asking that they still be given authority to punish a veterinarian who recommends a dangerously high dosage of cannabis for treatment.

Our Riverside medical marijuana attorneys hope this bill is revised to reflect the concerns of the board and that it paves the way for man’s best friend to get the best treatment. Without the board’s support, this bill is pretty much dead in the water. We know veterinarians are the ones best equipped to make these decisions and should be the ones setting the rules. We also know that all too often, without the guidance of vets, people will turn to the Internet for answers. This is an easy way to put animals in harm’s way by misdiagnosing their symptoms or giving them too high of a dose or allowing them to consume the wrong form of marijuana, all problems that could be avoided with the help of a veterinary specialist.

We also know the challenges that veterinarians face as the travel down this uncharted path. Even though we are learning more every day about the medical benefits of marijuana, there is still limited research due to the drugs classification as a Schedule I narcotic in the Controlled Substances Act, 21 U.S.C. Section 812. The research is even more limited when it comes to the effects on animals. But handing these decisions over to veterinary professionals is a good first step.

As laws continue to progress to expand medical marijuana use across the country, our team of trusted lawyers will be here to protect the rights of patients … even four-legged ones.

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 Bill Would Let Veterinarians to Discuss Cannabis with Clients, March 1, 2018, By Kerry Lengyel, American Veterinarian

More Blog Entries:

The Legality of Marijuana for Pets in Los Angeles, Oct. 29, 2017, Medical Marijuana Attorneys Blog

number of marijuana businesses, University of California San Francisco says the answer is right under our noses.

According to a study by the university published in the Journal of Psychoactive Drugs, regulators need look no further than the tobacco industry for inspiration to create best practices for adult-use marijuana. By using what the tobacco industry has learned by trial and error over the years, the marijuana industry can avoid early mistakes and take a proactive approach.

Examples in the study include implementing clear labeling with conspicuous warning labels, avoiding marketing that appeals to minors, and restricting product potency.While our Riverside marijuana business lawyers know there is much to be learned from the tobacco industry, we also know cannabis does not have the same health risks as tobacco, no matter how many officials want to skew the facts. The World Health Organization released a study in 1995 claiming that even with increased use, marijuana would not have the same negative health effects of tobacco or even alcohol, each of which can cause deadly diseases with repeated use. No such findings have been connected to marijuana. And a 1999 study by the National Academy of Sciences showed only 9 percent of marijuana users developed a dependency on the drug versus a whopping 32 percent of tobacco users (even more than heroin users in the study).

Therefore, labeling and marketing akin to tobacco would not only be sufficient, but would go above and beyond. Tobacco also does not have the health benefits of marijuana, though those properties would fall under medical marijuana guidelines rather than recreational.

UCSF analyzed edibles, concentrates, tinctures, and other products in comparison to tobacco control. Other recommendations from the study in regards to packaging include graphic warnings with rotating messages to deter minors and educate adults, reducing or eliminating logos or branding, avoiding packaging that mimics non-marijuana products (candies, cookies, etc…). For the cannabis products themselves, the study recommends not adding flavors to nonedible marijuana products, examining potential health risks of certain formulations and prohibiting high-risk products, and banning additives that would encourage addictiveness.

One of the paper’s authors addressed the current six-point warning labels for marijuana products. He encouraged a more overt approach, stating that the current labels are hard to read and could lead to trouble for the industry down the road. He also said public health needs to be considered first and foremost.

In the meantime, while regulations and rules evolve and settle, marijuana businesses can derive their own inspiration from these studies and previous regulated industries. By studying these industries and looking at history, businesses can begin to prepare themselves for regulations and best practices that could become mandatory down the road. Our experienced lawyers offer business consultations on how to set up your business with consideration for things like branding and legal compliance. We also will be there to help your business continue to thrive as the industry and laws continue to change.

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:

What Science Says About Marijuana, July 30, 2014, By Philip M. Boffey, New York Times

More Blog Entries:

CDC: Death from Marijuana Cookie Prompts Need for Warning Labels, July 24, 2015, Cannabis Law Group

ignore marijuana crimes so along as alleged violators were in compliance with state laws. This step gave states the space to figure out how they wanted to handle recreational and/or medical cannabis laws without interference from the federal government.

Sessions, however, has made it clear he intends to revive marijuana prosecutions based on the drug’s current Schedule I controlled substance designation under the Controlled Substances Act, 21 U.S.C. Section 812. By rescinding the 2013 order, Sessions has given federal officials the freedom to pursue charges against anyone for these violations – even if they follow state and local laws to the letter. Our marijuana attorneys in L.A. encourage all cannabis business owners in California to seek prompt legal counsel to best protect themselves and their livelihood.

Some don’t see this as an immediate threat, citing the lack of resources to go after so many operations. They also point to a lack of support among citizens to pursue such charges, meaning juries will be more reticent to convict. Others are less optimistic.This is especially true in states with brand new marijuana laws, such as Maryland, which only recently launched a medical marijuana program. When Sessions spoke out a few weeks later, many doctors in the state panicked, according to a Washington Post report. The Maryland State Medical Society even said some doctors who had already registered to offer marijuana to patients withdrew after Sessions’s announcement, despite the top prosecutor in Maryland stating he had no plan to go after participants in medical marijuana.

This hesitation by the medical community is nothing new though, especially on the east coast, where awareness and education on the benefits of marijuana are not as prevalent as they are here in California. In Massachusetts, for example, just over 200 doctors in the whole state have registered to recommend cannabis to patients. Perceptions in the state could change this year after it becomes legal for residents to have limited personal plants in their home and possess marijuana for personal use. Question 4, which was voted on by residents in November 2016, also allows for licenses for commercial sale. It is scheduled to go into effect July 1 of this year.

Our Riverside medical marijuana attorneys hope to continue to see the country push back on this unwarranted and outdated federal classification of marijuana. There is far too much evidence of its benefits medically to continue to treat it the same as drugs like heroin.

In the meantime, education is a top priority. Some doctors are hesitant to recommend marijuana not only because of federal oversight, but also based on lack of knowledge. Unlike other drugs, its treatment potential was not discussed during medical school, nor are there set dosages and guidelines for how to use it to best treat various ailments. In a field that prefers precision, doctors are often not so inclined to recommend trial and error to their patients if other options are available. Other doctors rely on dispensaries to know the best strain to offer the patient, but this puts a lot of pressure on dispensary owners, who are knowledgeable in the different strains, but not the different medical issues.

But for those doctors who are moving forward, many say the rewards of seeing the suffering of their patients alleviated has outweighed the risks. We hope more research and education will help move the medical field and the country forward.

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:

Doctors Backing Out of Recommending Medical Marijuana in Response to Sessions Memo, Feb. 2, 2018, By Steve Hendrix, Washington Post

More Blog Entries:

An Aging Population Trades in Pills for Marijuana, Sept. 8, 2017, Riverside Medical Marijuana Attorney Blog

years ago with the Compassionate Use Act of 1996, and more recently with recreational cannabis being legalized through the Adult Use of Marijuana Act, other states have not been as lucky.

Many hope to change that this coming year, with at least 12 states on deck to consider some form of cannabis legalization in 2018.

This is huge news, not only for those particular states, but also for California and other states that already have legalization in place. The more states rally behind legalization, the stronger we stand against outdated federal laws, which still classify cannabis as a Schedule I narcotic under the Controlled Substances Act, 21 U.S.C. Section 812. According to a recent report from Newsweek, more than 60% of Americans now support full legalization.Attorney General Jeff Sessions has been adamant about his opposition of state legalization, but our California marijuana legalization lawyers in Riverside know that a united voice from the states sends a strong and clear message that we as a country are ready to move forward.

The following states will potentially make moves toward legalization this year, according to the Newsweek report:

• Vermont: After the state legislature approved recreational marijuana legalization earlier in 2017, the governor said he first wanted to create studies on the effects legalization has had on public health issues. In December, the governor said he was comfortable moving forward. If things go as expected, this would be the first time a state government passed legalization laws rather than through a ballot initiative.
• New Jersey: New Jersey elected a new Democratic governor, who ran on marijuana legalization and promised to sign adult recreational use into law in his first 100 days, assuming the state legislature provides a bill.
• Michigan: Advocates gathered the required amount of signatures, pending confirmation, to get a recreational marijuana measure on the ballot in November.
• Delaware: A task force was assigned to study the impact of the legal marijuana industry. Results are expected back soon to help the state legislature determine how they want to move forward.
• Rhode Island: Rhode Island is eager to make a decision about legalization soon, with other New England States jumping on board. A study is out to help the statehouse determine recommendations, and int he meantime advocates hope to get a bill in place to decriminalize possession of small amounts of cannabis.
• Connecticut: A symbolic vote by the Hartford City Council to legalize recreational marijuana is expected to spark debate at the state level.
• Ohio: The advocacy group that led a failed ballot initiative in 2015 is ramping up for a second try for recreational marijuana in the 2018 election.
• Oklahoma: Medical marijuana will appear be up for a vote by citizens sometime this year.
• Kentucky: Momentum is building in the state government to get a bill through the state legislature legalizing medical marijuana.
• South Dakota: Signatures are under review to put a medical marijuana initiative on the November 2018 ballot.
• Utah: Advocates for medical marijuana are in the midst of collection necessary signatures, which would be due by April to make the cutoff for the November ballot.
• Missouri: Signatures are also being collected in Missouri in hopes of getting a medical marijuana initiative on the ballot in November.

Our Riverside lawyers look forward to more states joining California toward making marijuana accessible to people all over the country. With laws rapidly changing across the nation, it’s more important than ever for marijuana businesses to seek guidance from our experienced legal team.

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 Legalization 2018: Which States Might Consider Cannabis Laws This Year, Jan. 2, 2018, By Linley Sanders, Newsweek

More Blog Entries:

Medical Marijuana Expands to More States, Dec. 2, 2017, California Marijuana Lawyers Blog

, Calif., was forced to shutter its doors for good.

For years, the owner of the collective in question pushed for Upland to lift its ban against medical marijuana. But the city has repeatedly fought back, working aggressively to close illegal dispensaries. Upland spent roughly $4.5 million on legal fees since 2014 and closed 24 illegal operations along the way, according to an article from the Daily Bulletin.

This particular owner, though, was characterized as a thorn in the city’s side throughout the process. He helped lead the charge in getting Measure U on the city’s November 2016 ballot, which was designed to ease up restrictions and pave the way for three medical dispensaries in Upland.

He assisted in collecting signatures and fighting tough legal battles to get the measure on the ballot. The California Cannabis Coalition took the matter all the way up to the California Supreme Court, which ruled the city must put Measure U up to vote in a special election. However despite all those efforts, the voters of Upland did not get on board, voting down the measure.To add extra salt in the wound, voters passed Measure E in June 2017, which granted Upland officials the power to ban most cannabis-related activity.

Our Riverside marijuana dispensary attorneys admire the efforts of this owner and the California Cannabis Coalition to fight for marijuana access for patients and residents of Upland. We know the benefits dispensaries, like the ones that closed in Upland, brought those who depended on medical cannabis, as well as those who had hopes of more access after the passing of Proposition 64, which opened the gates for recreational marijuana in the state. Cities throughout California have begun the process of putting guidelines in place and screening applications for commercial marijuana businesses, while other cities, like Upland, have established citywide bans.

We also know it’s far better for marijuana businesses to work with local and state governments rather than against them in order to minimize damages and optimize success. Our Riverside attorneys are keeping a close eye on ordinances being passed throughout Southern California in the wake of the Adult Use of Marijuana Act as well as all of the restrictions surrounding medical sales and use.

We are well-equipped to guide you in choosing a location and establishing a collective the proper way to ensure success under the evolving laws. We can help you get the proper licenses, set up a business plan, or defend you should you find yourself in violation of the law. We also will keep you informed on the latest happenings on the federal level, where the future of the marijuana industry is much less certain under the current administration.

Meanwhile, the Upland owner agreed to shut down his dispensary Jan. 1 and pay the city $100,000 in exchange for the removal of two citations against him. He also agreed not to open and establishment at that location or anywhere else in the city in the future.

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

Additional Resources:

Upland Strikes Pact to Shutter Illegal Marijuana Dispensary, $100,000 Settlement, Dec. 24, 2017, By Liset Marquez, Inland Valley Daily Bulletin

More Blog Entries:

Cannabis Businesses Could be the Next Great American Industry, May 23, 2017, L.A. Marijuana Lawyer Blog

This meant that, in some cities, there would be no medical marijuana allowed and in others there would be. It also means that there were varying levels of regulations with respect to cultivation distribution, and sale or delivery. When the state decided it wanted to change this, there were varying proposals. In the proposal that ultimately was passed into law, a single agency was created to regulate medical marijuana. There were competing proposals that would have given the various regulatory functions to an already existing agency, but that proposal was not successful for a variety of reasons. The legislature dealing with medical marijuana is known as the Medical Cannabis Regulations and Safety Act (MCRSA).

However, once the enabling act for the marijuana agency was passed, there was still a lot of work to be done on drafting the actual regulations that the new agency was to be enforcing. This all changed again when Proposition 64, which is called the Adult Use of Marijuana Act (AUMA), was passed into law by the voters. This law, as everybody knows, allowed for adults to be able to recreationally use marijuana. However, this law came with its own set of regulations, which meant there were regulations for medical marijuana, and there would be a separate set of regulations for recreational use marijuana.

As our Riverside medical marijuana attorneys can explain, the legislature has been trying to streamline this process for both recreational and medical marijuana and, to that end, the governor has just passed a bill that is designed to combine the regulatory authority and to make a single source of laws for both medical and recreational marijuana.

This new law that was just passed is known as the Medical and Adult Use of Cannabis Regulation and Safety Act (MAUSCRSA) and is designed to combine the regulations under MCRSA and AUMA into a single set of laws that will control both sides of the marijuana industry in California. Both MCRSA and AUMA have requirements that the state regulate the sale of marijuana by January 2018. This new MAUCRSA Act will include the regulation of both medical and recreational use of marijuana, as discussed in a recent article East Bay Express.

There are many different laws and cannabis industry regulations in the new bill. For example, all products that leave a dispensary must be contained in an opaque plastic bag. This change will actually shift the regulation of industrial hemp back to Department of Food and Agriculture, so it can be handled used like any other income-generating crop. When growing any marijuana, there is sure to be a need for large amounts of water, and this can be a problem as we are constantly in a state of drought.

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 Took a Big Step Closer to Regulating the Cannabis Industry, July 5, 2017, BY Nate Sheildlower, East Bay Express

More Blog Entries: Report: Colorado Marijuana Laws May Not be Safe, Feb. 5, 2017, L.A. Marijuana Lawyer Blog

This means that for the time being, medical marijuana dispensaries are the only legal way to buy marijuana in the state. However, as discussed in a recent news article from The Daily Chronic, medical marijuana shops will largely become recreational marijuana shops, and this is why there are many more dispensaries opening up throughout the state in anticipation of the increasing market for cannabis products. This includes flowers, high-end concentrates like shatter and wax, edibles and tinctures, and even skin creams and bath beads. Much of this is because of the changing public perception and acceptance of marijuana in the past few decades. While we have seen that the majority of state residents now support legalizing marijuana, as they already did, it was not just voters that have begun to see marijuana differently. For the first time in history, New York Stock Exchange (NYSE) has approved a cannabis company to have its shares actively traded on the public market.

There is also a move to the online marketplace for marijuana. As marijuana is becoming legalized for recreational use in more states, companies are turning to an online merchant program, as well as on-demand delivery apps for smart phones. There will surely be more improvements to the delivery of marijuana, as the cannabis business has passed $5 billion in annual sales.

However, as the article mentions, there is some fear that the current presidential administration and the justice department will make things difficult once again for those in the industry, but that is a chance many seem willing to take, as there are billions of dollars at stake. There are also a lot of American jobs created, so that is an argument those in the industry are making as to why the federal government should not do a marijuana crackdown, as suggested by the president and the attorney general.

One thing you can do to minimize the risk of things going wrong is to speak with an experienced marijuana business attorney in Riverside, so you can make sure you are doing everything you can to stay out of trouble. While some are hesitant to spend any money on legal counsel with a new business, it is often much cheaper in the long run to make sure things are done right from the beginning instead of getting in trouble and then having to do anything possible to get out of trouble. There is also the chance of federal criminal charges if the attorney general does order the U.S. Drug Enforcement Administration (DEA) to start conducting raids again. This is certainly something you want to avoid. There are also many complications with respect to federal banking regulations, and you want to make sure your business is in full compliance, so you are not risking your assets being seized and your accounts being frozen.

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

Additional Resources: Dispensaries and the New Legal Niches of Marijuana in California, May 12, 2017, By William Smith, The Daily Chronic

More Blog Entries: Marijuana Sobriety Tests Still Elusive, Feb. 28, 2017, Marijuana Attorney Blog

That may soon change in Denver.

Back in November, Denver became the first city in the country to allow people to use marijuana at certain restaurants and other venues that want to allow it. That was Proposition 300, and it was approved at the same time eight other states – including California – passed laws to legalize marijuana for either recreational or medicinal purposes. The city measure allows bars and restaurants to apply to allow marijuana to be used by their patrons – so long as the drug isn’t smoked, although there could be some cases in which outside smoking areas could be designated.

Now, the city is working on implementing that provision, and it appears it will extend to places like yoga studios, art galleries and coffee shops. The law doesn’t offer up any guidelines for how marijuana can be consumed other than it can’t be smoked indoors and patrons have to be at least 21-years-old. Additionally, the state’s liquor control board has forbidden any company that has a liquor license from allowing patrons to use marijuana. That means bars would be excluded, as would restaurants that serve alcohol. WYFF4 reported a group of stakeholders – marijuana business owners, city regulators and opponents of legalized marijuana – are all meeting to begin hammering out suggestions of what this new law is going to look like.

There isn’t any deadline for when this new provision has to be implemented.

Proponents of the measure say it’s an important victory not just because it grants people the opportunity to use the drug socially, but because it carves out a respite for those who may have other restrictions and can’t use the drug at their residence. For example, many landlord policies prohibit smoking on their properties. Additionally, marijuana use and possession may be very problematic for those living in public housing. Because the drug is still illegal under federal law, users on those sites could risk jeopardizing their housing.

The only other state that allows any form of public consumption of marijuana is Alaska. But even there, public use of marijuana is limited to cannabis dispensaries.

Meanwhile in California, Proposition 64 gave California’s the right to possess and grow marijuana immediately, but users don’t have the right to light up wherever they please. The ballot measure specifically forbid smoking marijuana in public places – unless it is allowed by local ordinance. So far, no California cities have moved to open that door. On top of that, marijuana can’t be smoked in a place where smoking tobacco is already outlawed. That means no smoking in theaters or restaurants. Additionally, smoking marijuana within 1,000 feet of a daycare or school or youth center while kids are present.

Additionally, there are fines that can be imposed for smoking marijuana while operating a motor vehicle, aircraft or boat.

People who are caught smoking marijuana in public can expect to pay up to $100. If it’s done in a place where tobacco use is outlawed or near a school, the fine increases to $250. If there are minors caught in violation, they face up to four hours of drug education courses, plus 10 hours of community service.

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

Additional Resources:

Denver starts work on allowing marijuana in public, a first in US, Jan. 18, 2017, WYFF-4

More Blog Entries:

Prohibiting Teen Access to Marijuana a Top Priority for Politicians, Pot Distributors, Jan. 20, 2017, Riverside Marijuana Lawyer Blog

CNN Money reported that a real estate investment trust that plans to buy buildings to lease to medical marijuana growers went public on Wall Street – and the response was less-than-encouraging. On the NYSE, the Innovative Industrial Properties stock shares were priced at $20, inched upward to $20.52, and then finished the day by 4 percent less than where they started. Granted, this is just one of a few companies related to the marijuana trade that is traded on any major exchange. So in some sense, the fact that it’s being traded at all is something of an accomplishment. Another company out Britain, GW Pharmaceuticals, is listed on Nasdaq, and its stock is actually up more than 55 percent this year. However in the U.S., this has proven more the exception than the rule.

Meanwhile, Bloomberg Markets reports that a company called ICC International Cannabis Corp. debuted its first day on the Canadian stock market and closed 356 percent higher than where it started. The CEO of ICC, a company out of Uruguay, has called the Canadian market “perfect” for marijuana companies. The entire country is slated to legalize the use of recreational marijuana next year. If that event occurs on the timeline expected, there will be an estimated 4 million legal recreational users in Canada by 2021. That means there will be a potential for $4.5 billion in annual sales. Plus, it doesn’t hurt that legality at the federal level makes it a much more attractive option to investors.

In the U.S., both medical marijuana and recreational marijuana is illegal at the federal level under the U.S. Controlled Substances Act. It’s scheduled as a Class I narcotic, meaning it is considered to have no redeemable value as medicine and be highly addictive. This of course runs contrary to science and statistics, but our marijuana lawyers know that hasn’t seemed to stop the Drug Enforcement Administration in its refusal to budge on the issue as recently as October.

The fact that the drug is still illegal by federal law – and that President-Elect Donald Trump has put in place cabinet members who are decidedly anti-marijuana – has had a chilling effect on investments. This is almost certainly why stocks of ICC didn’t fare well.

Not that industry is completely stagnant. Most marijuana stocks in the U.S. are traded in a manner that is “over-the-counter,” and then tend to have silly names and ticker symbols (i.e., BUDZ, GrowLife, Pineapple Express, etc.). But this latest push from Innovative Industrial Properties was part of an effort to carve out a more serious niche. It currently has $67 million in assets, and the plan is to buy properties in states with legal marijuana and lease them to companies that cultivate, manufacture and distribute marijuana. At this point, though, it only has one deal to buy a property in New York state, and it doesn’t have any revenue or profits.

Meanwhile, Canadian investors and traders say the expectations for the industry are extremely high. There, the federal government’s Task Force on Marijuana Legalization and Regulation is due to deliver a report on national regulation early next year.

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 stock IPO goes up in smoke, Dec. 1, 2016, By Paul R. La Monica, CNN Money

More Blog Entries:

Workplace Prohibitions on Marijuana Still in Effect Despite Legalization, Nov. 23, 2016, Riverside Marijuana Lawyer Blog

This is a notable shift from what we saw a few years ago, when hundreds of cities across the state scrambled to ban medical marijuana dispensaries amid a furious crackdown by federal authorities. Of course, the drug remains illegal under federal law, but U.S. attorneys have eased their stance on the issue, prompting cities to craft their own measures to replace the ban or allow ballot initiatives that gives voters the chance to decide.

One of the most recent among these is Perris, where the council decided June 14th to approve a package of resolutions that will give voters a choice of not one but two medical marijuana dispensary November ballot initiatives to weigh.

One of those measures offers a framework for taxing dispensaries that operate within the city and the other offers a proposal for how medical marijuana dispensaries in Perris will be regulated and supervised. Both measures required at least a two-thirds majority of council members – or four of five – be on board with sending the proposals off to voters. Several said they held their own personal beliefs about the measure, which largely leaned toward NOT allowing dispensaries to operate in the city. However, in the end the leaders decided it was best to let the voters decide.

Councilwoman Rita Rogers was the single “No” vote on both matters, pointing out that medical marijuana dispensaries are operational in nearby Desert Hot Springs, Cathedral City and Palm Springs. She said Perris should resist the urge to become the first in the Inland Empire to climb aboard the bandwagon.

But again, we’re not talking about a measure that allows for recreational cultivation, sales or possession (though that may be before California voters in November). Rather, this is about providing reasonable access to those who rely on marijuana as medicine.

What’s more, Perris and Riverside County as a whole has seen the ill effects of the illicit drug trade. Take for example what was reported in Mead Valley not long ago, where an illegal marijuana cultivation operation was spotted just 50 yards from a playground. Such operations have been associated with high-powered weapons and in some cases, fatal shootings.

Sheriff officials told The Press Enterprise they were “well aware” of the increase in marijuana grow operations and were “aggressively” working to investigate and root them out. The county supervisor reported after receiving numerous complaints from residents, staffers tallied 300 marijuana grow operations just in a single district alone. He described neighbors as “frankly scared.”

And this is the kind of situation that makes reasonable, responsible marijuana laws so important. There will be a demand for the drug no matter what. That demand can be lessened – and the power of these cartels curbed – when we put control of it in the hands of the people rather than the criminals.

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

Additional Resources:

Perris: City Council Approves Marijuana Ballot Measures, June 14, 2016, By Tom Sheridan, The Press Enterprise

More Blog Entries:

San Bernadino Marijuana Dispensary Vote Seems Likely, June 19, 2016, Perris Marijuana Attorney Blog