As a general rule of thumb, employers are not allowed to discriminate against employees with disabilities. Both federal and state laws provide this protection. This means that an employer cannot take an adverse employment action against an employee because of the employee’s disability. Again, this is a “general” rule of thumb: In the cannabis context, things are always a bit different.
Some states have passed legislation protecting medical marijuana users off work marijuana use. Employers in those states cannot terminate an employee or refuse to hire an applicant because of their off-work medical marijuana use. Historically, however, the big problem with these laws is that state and federal courts have readily determined the Controlled Substance Act (CSA) preempts state law, and that employers may terminate medical marijuana patients for off-work use. Recently, for the first time, a federal court sided with an employee who brought a claim against her employer for termination for off-work use of marijuana.
According to the lawsuit filed in Connecticut, Katelin Noffsinger is a registered medical marijuana user. In 2016, Noffsinger applied for a job with Bride Brook Nursing & Rehabilitation (“Bride Brook”). Bride Brook offered her the job contingent on passing a pre-employment drug test. Noffsinger informed her potential employer that she was a medical marijuana patient and likely would …
Anxiety is a crippling mental disorder that affects more and more people every day. Even though this condition originates in the brain, it can have profound effects on the body as well. Anxiety can result in:
Numb or tingling hands.
Decreased blood flow.
And that’s just the tip of the anxiety-induced iceberg. Thankfully, treatments do exist for this crippling disease. But to add insult to serious injury, many of the treatments for anxiety produce side effects that are worse than the disorder itself.
Now, though, researchers are finding a treatment from an unlikely source: the marijuana plant. Certain chemicals in the marijuana plant can offer some seriously profound medical benefits when taken in the right way.
In this article, the experts at Honest Marijuana will introduce you to the chief chemical compound, known as CBD, that’s responsible for treating the many forms of anxiety. Along the way, we’ll answer such questions as:
What is CBD?
What is CBD oil?
Why use CBD oil for anxiety?
Is CBD oil addictive?
We’ll also investigate whether CBD oil gets you high and which CBD oil is right for treating anxiety. Let’s get started.
What Is CBD?
CBD is the abbreviation for the word cannabidiol (pronounced can-uh-BIH-dee-all), which is a member of a larger group of chemical compounds known as …
The Racketeer Influenced and Corrupt Organizations Act (RICO) is a federal Nixon-era law originally intended to combat drug cartels and organized crime. Among other features, it allows average citizens claiming a loss in property value to bring suit for triple damages plus attorney’s fees against any “person” or “enterprise” that has a part in any neighboring “racketeering activity” which includes—you guessed it—“dealing in a controlled substance.” Currently, federal law continues to classify cannabis as a Schedule I controlled substance—meaning it has no medicinal value, and is supposedly more dangerous than methamphetamine, methadone, hydromorphone, and oxycodone, among other things.
RICO has been read broadly enough by its patrons to include operators, as well as landlords, lenders, and even government licensing agencies and customers, as co-conspirators in licensed cannabis operations, meaning angry neighbors have found their deliverance when it comes to trying to shut down state-legal cannabis businesses. The painful irony of all this is that anyone with an aversion to cannabis in a state where voters democratically decided to legalize it has unique power to be an American Gangbuster because of an almost-half-century-old relic of the federal War on Drugs; yet, meanwhile, companies that would be investing in local communities are looking north to do five-billion-dollar Canadian Blockbusters. …
This is the second post in our three-part series on California development agreements. In our first post we provided an overview of the use (and misuse) of development agreements in the cannabis industry. This post breaks down the basics of development agreement laws.
California’s development agreement statutes are located in Government Code sections 65864 – 65869.5. According to the legislative findings and declarations, the lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer, and discourage investment in and commitment to comprehensive planning which would make maximum efficient utilization of resources at the least economic cost to the public. Cal. Gov’t Code § 65864(a).
Providing assurance to development project applications that, upon approval of a project, the applicant may proceed in accordance with existing policies, rules and regulations, and subject to conditions of approval, strengthens the public planning process, encourages private participation in comprehensive planning, and reduces the economic costs of development. Cal. Gov’t Code § 65864(b). In other words, the California State Legislature has determined that providing certainty and predictability in the development process is good for everyone.
Government Code section 65865(a) provides that anyone with a legal or equitable interest in real property may enter …
If smoking marijuana is the king of all consumption methods, eating (i.e., ingesting) marijuana is the queen. Sure, dabbing (the prince in this metaphor) may usurp the throne one day, but for now, smoking and ingesting rule the roost. But before you head to the kitchen to dump your bag of weed into you favorite brownie mix, there are some important points to consider in your quest to learn how to make edibles.
But before you head to the kitchen and dump a bag of weed into your favorite brownie mix, there are some important points to consider. So that’s what we’re going to focus on in this article. Along the way, we’ll discuss:
What effects you can expect from eating cannabis
Why you should never dump raw bud into your food
The importance of decarboxylating your weed first
After that, we’ll show you how to make a cannabis infusion that you can use in any recipe and give you some tips on how to make edibles the honest way.
We’ll also let you in on a few super-secret methods (not really) for bringing you back down to earth should you get too high. Before we get to that, though, let’s start with what you can expect after eating marijuana edibles.
The language of marijuana is a veritable goldmine of wacky verbiage. From airplane and angola to swag and sticky icky, there’s literally a slang term for every situation. Most of these terms can be used interchangeably as the mood hits, but some common words have very specific meanings and should be used only when the right conditions are met.
Case in point: the terms blunt and joint. Along with a few others, they may be the most common words in the cannabis dictionary. But do you know the difference between blunt vs. joint? The answer might surprise you.
Even though cannabis enthusiasts are a pretty laid-back bunch, using the wrong language can be a definite give-away that you’re inexperienced or “unedumacated.” The difference between blunt vs. joint is a prime example. Sure, they both contain marijuana, but that’s where the similarities end. What’s more, there are some pretty distinct differences that set one apart from the other.
To illustrate, it’s like the difference between a car and a truck. Yes, they both have four wheels and an engine, but you’re going to get some pretty strange looks if you point at a Mazda Miata and call it a Chevy Silverado. The terms just don’t mix. The same is true for a blunt and a joint.
If you have purchased marijuana in Washington State, you’ve probably noticed the packaging can be difficult to open and is adorned with warnings, bar codes, and lots of other information that appears in tiny font. This is by design, as the state has created robust regulations intended to protect the public from contaminated cannabis and to limit access by children. Though these regulations are important, one has to ask what impact these packaging requirements have on the environment.
Washington’s packaging and labeling requirements can be found in WAC 314-55-105. Note that this section of the Washington Administrative Code was recently amended meaning that there are two separate packaging standards. Licensees can abide by the old rules until January 1, 2019 when the new version of WAC 314-55-105 go into full effect. Until that date, licensees have the option to comply with the new rules. This post will focus on the newer version of WAC 314-55-105.
All containers that carry marijuana must protect the substance from contamination and harmful substances. Marijuana-infused products, such as edibles, and marijuana concentrates must come in child-resistant packaging. For packages containing more than one serving (a serving is capped at 10 milligrams of THC) of a solid edible product, each serving must come in child resistant packaging. For liquid products, the packaging must include a …
Too high — seven little letters and a space. Doesn’t seem so bad on the surface, right? There are plenty of four-letter words that might seem worse. But for new and experienced cannaseurs alike, four-letter words are nothing when compared to saying “too high” out loud.
Unfortunately, it’s an all-too-common part of the marijuana experience. One minute you’re riding a seriously righteous high, and the next minute you’re convinced the floor is going to open up and swallow you whole.
So what’s a too-high stoner to do? The cannabis experts at Honest Marijuana give you 15 remedies to help you down fast.
How To Sober Up When You’re Too High
1) Stop Smoking
This may seem like an obvious first step, but you’d be surprised how many people think that more of the same will make it all better. Probably has something to do with old saying, “Hair of the dog that bit you…”
Regardless, when you feel like you’ve gone too high, put the joint, blunt, or bong down and do something else for a while.
2) Battle The Blaze With CBD
Here’s a cool fact: cannabidiol (CBD) actually counteracts the psychedelic effects of THC. Add to that the wonderful news that CBD doesn’t have any major side effects of its own, and you’ve got …
Even if your company is fully compliant with all OLCC-mandated marijuana laws and regulations, you can still expose yourself to legal pitfalls if you aren’t just as strict keeping up with state and federal employment laws. While the rapid evolution of corporate cannabis is evident in the news alone, you may not realize that state employment laws are just as volatile — and there are a lot of them.
Harris Bricken employment lawyer Megan Vaniman will be leading a free presentation on employment law for cannabis businesses on October 11, 2018 from 4 to 5 PM PST, followed by a reception. OSHA and BOLI are the tip of the iceberg; Megan will dive deep into state and federal legislation that can prevent your business from succeeding if you don’t proceed with caution.
The California legislature is currently finalizing a bill (SB-1459) which would establish a provisional licensing regime for California cannabis businesses. The bill moved into “enrolled” status late last week, which means that SB-1459 has been approved by both houses of the state legislature and is being proofread to ensure all amendments were properly inserted. Once SB-1459 is “correctly engrossed”, only a signature from Governor Brown is needed for the bill to take immediate effect. In all, provisional licensing seems imminent.
These pending, provisional licenses would provide holders with a year-long, non-renewable, provisional license to operate after filing completed license applications. These provisional licenses would alleviate pressures on licensing agencies caused by the backlog of pending applications. Provisional licenses would also allow holders to continue operating, rather than potentially ceasing operations later this year. On that point, the SB-1459 legislative findings are compelling:
The significant number of cultivation license applications pending with local authorities that do not have adequate resources to process these applications before the applicants’ temporary licenses expire on January 1, 2019, threatens to create a major disruption in the commercial cannabis marketplace.”
Cannabis licensing in California is a relatively recent phenomenon and is a requirement for any cannabis business operating in the state. Under current law, licensing authorities may …
Last week, we discussed New Jersey, Oklahoma, Michigan, and Virginia’s recent legislative and/or referendum developments in ending marijuana prohibition.
Today, we look at the three other states that will decide the fate of recreational and medical marijuana locally during the November election.
Last month, North Dakota’s recreational pot measure, Measure 3, was approved for bringing the matter to a public vote. Legalize ND, the committee that introduced this measure, managed to submit more than the 13,452 valid petition signatures which are required to get a measure on the November ballot.
Measure 3 aims to legalize marijuana use by people 21 and older and seeks to seal the records of anyone convicted of a marijuana-related crime.
In May, the North Dakota Sheriff’s and Deputies Association introduced a measure opposing Measure 3 as it believes legalizing recreational marijuana would create more problems for law enforcement, such as more impaired drivers and fatalities. Another anti-legalization organization, Smart Approaches, is also working to oppose the ballot measure.
In response, Legalize ND is planning to bring in members of Law Enforcement Against Prohibition, better known as LEAP, a pro-legalization organization composed of former and current police officers, federal agents, judges and prosecutors, that are critical of existing drug policies.
Although Utah is a rather conservative state, state voters …
Plant training – a low-stress alternative to pruning
Cannabis is a robust, vigorous and fast-growing plant which responds very well to crop optimisation techniques such as: pruning; propagation via cuttings; hydroponic cultivation and more. In a previous article we looked at the so-called “destructive” techniques like pruning, super-cropping, etc, and in this article we’re going to talk about a very useful technique both for indoor and outdoor growers: Training or tying down, often referred to by cannabis growers as LST (low stress training). This technique originated in the agricultural sector, where for generations vineyards and orchards have been cultivated using a variety of training techniques, tofacilitate harvesting and improve the productivityof the crop.
Plant training is a traditional technique in vineyards and orchards
Why train cannabis plants?
The most common use of training is to limit the height of our cannabis plants, whether it’s in order to make sure they stay at a discreet height and out of sight below a wall or fence when we’re growing outdoors or to keep the tops of the plants at the proper distance from our indoor grow lamps, we can bend and them to manipulate their structure, without needing totop them or cut the growing tip.
We are literally living in the Golden Age of cannabis. There are so many different products it can be difficult to choose which to use…or even which to try first. From gummies to blunts to tinctures to creams, you can get your marijuana in any and every shape and form.
On one end, you’ve got your well-known methods of consumption, like joints and bongs. On the other end, you’ve got your lesser-known forms of cannabis, like live resin and cannabis oil. It’s this latter form of cannabis — cannabis oil — to which we’ll devote our attention today.
Cannabis oil has been growing in popularity recently thanks to its ability to stop the growth of, and even destroy, cancer cells. It has other powerful medicinal effects (as you’ll see below), but its anti-tumoral properties are the thing that gets most people excited.
In this article, we’ll teach you how to make cannabis oil for yourself. That way, you can take advantage of all the healing without spending an arm and a leg. But before we get to the how-to, let’s take a moment and learn what cannabis oil is and what it isn’t.
All You Need To Know About Cannabis Oil
Cannabis oil is a special type of marijuana concentrate that has saved and improved countless …
I’ve written in the past about the precarious business of buying and selling existing dispensaries in Los Angeles, but that was under the now repealed Proposition D. In March of 2017, Angelenos voted in favor of Proposition M, which is a licensing and regulatory piece of legislation implemented and overseen by the City’s Department of Cannabis Regulation (“DCR”) and the Cannabis Regulation Commission. Under Prop. M, the City is licensing cannabis businesses in three phases, the first of which was exclusively for “Existing Medical Marijuana Dispensaries” (EMMDs). EMMDs are basically grandfathered Prop. D/Pre-ICO operators that met certain compliance criteria set forth by the City under Prop. M. As of the writing of this post, there are only 163 EMMDs in the entire City. This low number of dispensaries in potentially the largest cannabis market in the world makes the secondary market for these storefronts incredibly hot. So much so that our Los Angeles cannabis lawyers are receiving term sheets for the purchase of EMMDs on an almost bi-weekly basis. And based on that experience, it’s time to update readers on what to look for when contemplating the purchase of an EMMD, which is no small task under the City’s new laws.
We think it is worth taking another look at whether Washington’s strict residency requirement is constitutional. Since Washington first licensed marijuana businesses in 2014, we have wondered if anyone would be willing to bear the expenses of that particular challenge. And to date, there are no Washington appellate or federal legal decisions determining the constitutionality of the residency requirement. If there were a challenge, Washington would have a tough time defending the constitutionality of the law.
There are two important constitutional concept here: the Dormant Commerce Clause (the DCC) and the Privileges and Immunities Clause (the PIC). We first wrote about one of these, the DCC, three years ago. The DCC is a body of law (all made by judges) that seeks to enforce free-trade rules among the states. The idea is that Congress has the sole authority to regulate interstate commerce, and state laws that blatantly interfere with interstate commerce are potentially unconstitutional. Our analysis of this issue is largely the same as it was in that blog post three years ago. To determine if a law violates the DCC, one first determines whether the law interferes with interstate commerce. Washington’s residency restriction likely does so because it stops out-of-state participants from engaging in commerce in Washington. If a state law discriminates against out …
New Oregon Liquor Control Commission (OLCC) rules affecting outdoor recreational growers went into effect on September 1, 2018. It’s likely that the rules are in direct response to concerns expressed by Attorney General Jeff Sessions and, more recently, Oregon US Attorney Billy Williams, over Oregon’s marijuana industry. As we’ve previously reported, Attorney Sessions is not a fan of marijuana and Williams has expressed concern over Oregon’s marijuana overproduction and black market.
Significantly, the new OLCC rules: 1) severely curtail the amount of marijuana flower that medical marijuana cardholders are allowed to purchase in a day, from 24 ounces to 1 ounce; and 2) require recreational outdoor marijuana grows to notify the OLCC prior to harvest. Both rules were issued with the stated intent to reign in diversion outside of the OLCC system. The purchase limit rule is “temporary”, meaning it expires in six months and could be modified or rescinded after investigations are completed. The harvest notification rule is permanent, and discussed in detail below.
Under the harvest notification rule, outdoor growers are now required to report all harvests to OLCC no later than 9 a.m. on the date of the harvest. The purpose of the rule is to keep a better track of the harvests, where they are …
In recent posts, we’ve discussed cases where a neighbor to a cannabis grow sued the grower for nuisance, claiming that growing cannabis interfered with the neighbor’s use of their land. See here, here, here, here, here, and here. These lawsuits relied on the non-cannabis landowner’s claims that the federally illegal cannabis business caused harm because of odor, disruptive activity, and diminution of property values.
As of last week, we have another variation on the nuisance theme. On August 31, 2018, Jack Hempicine LLC (“Hempicine”), a Polk County hemp grower, sued fellow hemp farmers for nuisance and other torts. Unlike the previous cases, this case claims that the harm to the property was caused when the other farms cross-pollinated the Hempicine farms and ruined its crops. Jack Hempicine LLC v. Leo Mulkey Inc., Case No. 18CV38712, Polk Cty. Sup. Ct.
In this case, Hempicine alleges:
Cross-pollination is a significant risk in the hemp growing industry. There are two specific risks. First, male plants that contain higher THC levels can pollinate female hemp plants that originally contain low THC levels. The resulting seeds produce plants with highest levels than the original female plant, which means the resulting plants also have lower amounts of CBD and CBG. Second, pollinated female
The path to marijuana public reforms is inevitable. According to recent surveys, 64 percent of Americans favor the legalization of marijuana and roughly 90 percent support its legal use for medical purposes. This growing popularity of cannabis has been reflected in recent legislative and referendum actions across the country at the state level.
Earlier this year, shortly after Vermont legalized, we looked at four states–New Jersey, Oklahoma, Michigan, and Virginia–most likely to follow the footsteps of the existing 9 states that had already passed laws to regulate marijuana and the 28 with medical cannabis programs. Today, on the eve of the November 6 elections, we take another look at the legislative and/or referendum developments in these jurisdictions and see whether these four states have in fact come closer to ending marijuana prohibition.
New Jersey’s governor, Phil Murphy, has made legalizing, regulating, and taxing marijuana a goal of his administration. Unfortunately, Gov. Murphy has yet to convince lawmakers to pass a combined bill that aims to (1) expand medical marijuana and (2) fully legalize recreational marijuana for adults. Because New Jersey does not allow its citizens to bring direct initiatives, the fate of marijuana will have to be decided by legislators, a process that will most certainly take time. But the state seems …
Development agreements have become a popular tool for California municipalities regulating commercial cannabis activities. We’ve talked a bit about development agreements in the cannabis context here. In a nutshell, a development agreement is a contract between a municipality and developer that freezes applicable rules, regulations, and policies pertaining to a property at the time of execution. Our California cannabis real estate and land use lawyers have come across quite a few of them lately. Unfortunately, many times local jurisdictions are misusing them at the industry’s expense.
Development agreement laws were enacted to provide assurances to developers faced with uncertainty in government approval processes for complex and long-term development projects. A development agreement should provide developers with assurances that the developer will see a return on investment by providing vested rights to engage in a particular use on a property. The rights are locked in so that if local laws change in the future (e.g., the voters or legislative body prohibit a particular use), the uses permitted in the agreement can continue for the remaining term of the agreement.
The scant authority dealing with development agreements focuses on the broad purpose of the statute to provide assurances to developers as soon as project commitments must be made. Santa Margarita Area Residents …
If you are interested in growing cannabis indoors, you must realize that it is entirely different from growing the plant outdoors. Indoor cannabis farming poses more challenges compared to outdoor farming. To grow healthy plants indoors, you must replicate the outdoor environment that the plants receive the right growing conditions are available. There is […]
The legal status of cannabidiol (CBD) has long been complicated. The Agricultural Act of 2014 (2014 Farm Bill) allowed for the cultivation of “industrial hemp”, defined as the cannabis plant that contains less than .03% tetrahydrocannabinol (THC) on a dry weight basis, as long as that hemp was grown pursuant to a state’s guidelines. The 2014 Farm Bill lead to a massive influx of industrial hemp-derived products containing CBD (Hemp-CBD). However, not all states have legalized industrial hemp, making the U.S. a quilt of different rules and regulations on industrial hemp and Hemp-CBD. We’ve written about how state law impacts Hemp-CBD, in regards to where a distributor can sell its products. State law considerations are also relevant to consider when transporting Hemp-CBD.
Consider the case of Anita Maddux. According to Planet Jackson Hole, Maddux was driving through Wyoming en route to Montana to care for her sick mother when she was pulled over for her expired California license plates. It turns out Maddux was driving with an expired license, no insurance, and a 10-millimeter bottle of CBD she obtained from a health store in New Mexico. At the Teton County Jail, police tested the CBD oil for THC. The test results confirmed the presence of THC but the amount of THC. …
Modern scientists seem to be torn on whether smoking cannabis can have negative physical side effects on the body. One study concludes that smoking cannabis “is associated with a high frequency of central airway inflammation,” similar to those who smoke tobacco products. This is a concerning conclusion—inflammation of the lungs can lead to chronic obstructive pulmonary disease, which can cause lifelong problems associated with breathing and poor airflow.
Despite lobbying efforts to the contrary, Washington has maintained its strict state residency requirement for Washington cannabis business owners. If a person wants to own 0.001% of a cannabis business, the Washington State Liquor and Cannabis Board (WSLCB) requires that person to be a Washington resident and to go through about 1,000 hoops before it authorizes the licensed cannabis business to issue that ownership interest. In general, cash-starved producer-processors looking for investment and out-of-state investors have pushed for the law to change, while more established retailers and certain producer-processors prefer the lack of out-of-state competition. The residency issue is resonating in Olympia, with many legislators openly discussing lifting or altering the state restriction on out-of-state ownership.
While the overall topic of the residency requirement is often discussed, one issue that doesn’t get as much attention is how the WSLCB is currently defining residency. And that’s because they don’t— at least not directly. The WSLCB’s marijuana regulations define the term “residence” as a place where a person physically resides, but that is only in the context of the rule that marijuana licenses cannot be issued to businesses whose location is at a personal residence. The section talking about the residency requirement, WAC 314-55-120(10) uses the terms “resided” and “residency requirement,” but the …
We have been writing on this blog about the southern Oregon county’s mounting frustrations with cannabis, its successive losses in litigation, and its most recent attempt in federal district court to submarine Oregon’s cannabis programs. We immediately identified this lawsuit as a “stunning overreach” and we predicted the county would lose. To that end, and just before the holiday weekend, a U.S. magistrate judge issued a Report and Recommendation (“Report”) that Josephine county’s case should be dismissed. And that is what should occur.
By way of background, we explained back in April that Josephine County wanted the federal court to:
Declare that cannabis production cannot qualify as a pre-existing “lawful use” because of federal prohibition;
Declare that counties can place any restrictions they want, including a full ban, on cannabis businesses because state legal regimes are pre-empted by federal law;
Declare that Oregon’s medical and recreational regimes unlawfully restrict the county’s police powers in light of federal prohibition; and
Enjoin the State from bringing official misconduct charges against any local or county official that ignores their duties under state law.
Well, none of that is happening. The magistrate judge issued a thoughtful, eight-page opinion (no public link available– email me if you want a copy) which rested on two points …
Over the past few years, Cannabidiol (CBD) has become all the rage. Thanks to the vast amount of medicinal benefits created by the cannabinoid, people have been trying it in droves. For most people, they claim that it’s a miracle drug. However, a small sub-sect of people claim that CBD does little to nothing […]
A violation of the Oregon Liquor Control Commission (“OLCC”) recreational marijuana rules can land you in hot water. I’ve previously written about rule violations and the administrative process, including settlements. It’s been our experience that the OLCC is open to settlement agreements for licensees who violate rules, and we regularly help settle these cases. Some are easier than others.
Settlement agreements generally save time and money related to administrative litigation costs for both licensee and the OLCC. Based on our review of the OLCC News Releases, the OLCC has approved settlement agreements with approximately 20 licensees and had never rejected a settlement agreement proposed by its staff. That all changed last week.
The OLCC alleges Black Market Distribution LLC (“Black Market”) violated 10 OLCC rules. On August 23, 2016, the OLCC was presented with a settlement agreement that would have allowed Black Market to pay a $16,335 civil penalty or serve a 99 day license suspension. The OLCC rejected the proposed settlement agreement because it determined the violations were egregious enough that a suspension or fine would not result in the licensee taking the necessary corrective action to come into compliance. Black Market will not automatically lose its license but instead will now proceed to an administrative hearing to fight to keep …
Applicants who qualify for commercial cannabis licensure during Phase II of the City of L.A.’s cannabis licensing process only have until September 13 to get their applications into the Department of Cannabis Regulation (“DCR”). This phase of licensing is reserved for existing, non-retail, social equity applicants. To get a license during this phase, the DCR requires proof of operation in the City prior to January 1, 2016, proof of service to an “Existing Medical Marijuana Dispensary” prior to January 1, 2017, and proof of eligibility as a Tier 1, 2, or 3 social equity applicant. For more on Phase II eligibility, see here and here.
I wrote earlier this month about the unusual business relationships our L.A. cannabis business lawyers are seeing born out of social equity in L.A. It’s pretty clear that lots of applicants will go for Tier 3 social equity status (i.e., where a Tier 3 incubates a Tier 1 or 2 social equity applicant). In that situation, the Tier 3 social equity applicant has to sign a social equity agreement with the City, but little to no detail on the content of that agreement exists in the law. In addition, licensees would be extremely unwise not to maintain social equity business agreements between themselves in order to ensure mutual performance and …
Federal enforcement of the Controlled Substances Act in states that have legalized cannabis has been a huge question mark for years, but especially so in California since the 2016 passage of Prop 64, which legalized medicinal and adult-use cannabis and laid the framework for a new regulatory regime. Almost two years later, that question remains, but certain trends have emerged, were reinforced, and now seem to be forging full speed ahead. Those trends suggest that (1) the Department of Justice is not engaging in a crackdown against cannabis businesses that are in compliance with state and local law, and (2) the state and the federal government have agreed to coordinate on enforcement actions where it furthers the priorities of both entities. So far, those priorities have been organized crime and illegal cultivation on public lands, and this week the latter priority got a big boost from both sides of the equation.
On the state side of things, a proposed state law extending the statute of limitations from one to three years for state enforcement actions against unlawful “conversion of timberland to nonforestry-related agricultural uses”—a move that targets illegal cannabis cultivation on public lands—has passed the state legislature and is now before Governor Brown for signature. The bill also clarifies that the limitations …
This past year, the country has witnessed widespread interest in the use of cannabis in its nutraceutical (when added to food or drinks) form. Cannabidiol (“CBD”), the non-psychoactive chemical compound found in the cannabis plant, has gained great popularity among alcohol beverage companies. The growing popularity of CBD-infused products combined with their mainstream nature has given alcohol beverage companies the false impression that blending CBD into their products is an easy process. This post bursts the myth by highlighting the regulatory labyrinth into which alcohol beverage manufacturers must venture to enter this growing, popular market.
Alcoholic beverages are regulated by federal and state law. Consequently, beer, wine and spirits producers are generally accustomed to navigating rules, various forms of licensure, and modes of compliance related to their industry. Their familiarity with comprehensive regulations makes alcohol beverage companies well equipped to navigate the intersection between alcohol and cannabis, which is heavily regulated at the state level.
Unlike alcohol, though, many forms of cannabis are strictly federally prohibited. As such, “marijuana” and “tetrahydrocannabinols” (THC) are listed on Schedule I of the Controlled Substances Act (“CSA”). The CSA defines “marijuana” as:
“all parts of the Cannabis sativa L. plant whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, …