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FREE Webinar December 12: Employment Law for Oregon Cannabis Businesses

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oregon cannabis employment law webinar

If you missed our October 11 event on employment law for Oregon cannabis businesses, fret no longer. On December 12, 2018 at 12pm PST, Harris Bricken employment lawyer Megan Vaniman will present the first unit of our lunchtime employment law webinar series. The webinar will last an hour or so.

Megan will discuss how to navigate employment law for cannabis businesses and the employment laws that most affect cannabis businesses in Oregon. Most importantly, she will provide you with a whole host of tips and tricks to ensure solid management and compliance, and take questions along the way. Topics will include:

  • What to consider when hiring
  • Oregon and Portland’s “ban-the-box” ordinance
  • Oregon’s sick leave requirements
  • Final paychecks
  • Independent contractor versus employee designations
  • OLCC issues

With moderator Vince Sliwoski, Megan will address audience questions throughout the presentation. To register, please go here. Should you have any questions, please feel free to reach us at firm@harrisbricken.com.

If your cannabis business is located in Washington or California, don’t worry–we’ve got you covered. Stay tuned for webinars on cannabis employment law in Washington and California in the new year!

Source: https://www.cannalawblog.com/free-webinar-december-12-employment-law-for-oregon-cannabis-businesses/…

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California Cannabis: The Race is On for Temporary State Licenses

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california cannabis licensing raceUnless you’ve been completely out of the loop, you already know that many, many people are in a race to submit their California state temporary cannabis license applications before December 31 of this year, which represents the “drop dead” date for cannabis temporary licenses. Add to that the regulatory curve balls thrown by the California Department of Food and Agriculture (CDFA) and the California Department of Public Health (CDPH) at the end of October (those agencies moved up the their temp licensing submission deadlines to December 1) and you have a stampede of people now trying to get their temporary license applications in by the end of this month. Thankfully, the Bureau of Cannabis Control (BCC) hasn’t yet said that there’s a low chance of successful processing if you submit after December 1, but given the back and forth it takes with the BCC to even get the temp, you may be out of luck.

Why does all of this matter? If you don’t have, or haven’t held, a temporary license for your current cannabis location (which is good for 120 days and gets renewed for additional 90 day periods so long as you’ve applied for your annual cannabis license), you’re ineligible for a provisional license next year, which means you’ll be on ice …

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Starting a Cannabis Business: What Contracts Do You Really Need?

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cannabis business contractsYou can spend a lot of money on lawyers, accountants and consultants when starting a cannabis business. There is so much ground to cover from concept to execution– especially in a complex and highly regulated industry. Related to this issue, we have written on this blog about finding a team, and we have talked about the importance of things like operating formally, staying away from generic agreements and avoiding the seemingly bottomless pit of industry scams and schemes.

Today’s blog post will cover which documents are really necessary when structuring a cannabis business, and what you may be able to do without— at least in the beginning. Note that these are general guidelines. They are not intended to serve as legal advice and every business should use its best judgment and consult with counsel on these items.

  1. Stuff you cannot do without

Articles of Incorporation or Organization

This is very basic, but you cannot have a company unless the entity has been duly registered with the relevant Secretary of State. These days, most filings in most states can be done online, although there are situations where online filings are a bad idea, like when you want to do anything nonstandard with your Articles of Incorporation (for a corporation) or Articles of Organization (for an LLC). Those situations …

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Senate Majority Leader Guarantees Industrial Hemp Legalization

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industrial hemp cannabis farm bill

Just two weeks after Speaker of the House Paul Ryan expressed public support for the legalization of industrial hemp, Senate Majority Leader Mitch McConnell is now guaranteeing that the 2018 Farm Bill will include the industrial hemp legalization provision once the House and the Senate solve their difference regarding this issue.

If there’s a Farm Bill, it’ll be in there, I guarantee that,” McConnell told reporters last Friday.

(To watch McConnell’s hemp legalization guarantee, go to 13:15 into this video clip).

As we have discussed at length, the House and the Senate versions of the bill differ in that the House version is silent on the legalization of industrial hemp whereas the Senate version, which was introduced by the Senate Majority Leader himself, would remove the crop from the definition of “marijuana” under the Controlled Substance Act, and instead treat hemp like a standard agricultural crop. Indeed, although industrial hemp and marijuana are the same species, hemp contains a negligible amount of tetrahydrocannabinol (“THC”), the psychoactive compound that gives its users a high.

In justifying his support of the legalization of the crop, McConnell stressed the immense value and versatility of industrial hemp. In addition, McConnell declared that he became aware of the international implications of hemp legalization during his visits of hemp processors this past year and …

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Oregon Cannabis: OLCC No Longer Tolerating Rules Violations?

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OLCC oregon violation license
Recommended compliance level for Oregon licensees.

A couple of months ago, the Oregon Liquor Control Commission (OLCC), for the first time, rejected a settlement offer from a licensee who had violated OLCC rules. At the time, we speculated the OLCC was done with settling and moving towards stricter compliance requirements. It seems, along with more stringent review of applications, the OLCC is doing exactly what we predicted and either rejecting settlement agreements or negotiating tougher settlements that result in licensees voluntarily giving up their licenses.

On September 21, the OLCC approved an administrative law judge’s (ALJ) order to temporarily suspend the marijuana license of the Corvallis Cannabis Club. Typically, a licensee is allowed to continue to operate as normal after receiving a charging document from the OLCC pending the outcome of a settlement or hearing. However, the Corvallis Cannabis Club was under investigation from the federal DEA and the OLCC agreed with the ALJ that a temporary suspension was necessary.

That same day, the OLCC also cancelled High Cascade Farms license after determining the licensee had violated 13 OLCC rules including transporting marijuana to an off-site location and intentionally misrepresenting to the OLCC what happened to the plants.

On October 26, 2018, the Oregon Bud Works agreed to surrender its license to the OLCC after committing 10 OLCC …

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California Cannabis: Cities and the End of Temporary Licenses

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california cannabis temporary license
Hopefully, more cities are creative with this hard stop.

We recently wrote about an announcement by the California Department of Food and Agriculture (“CDFA”) that temporary license applications need to be submitted by December 1, 2018 in order to be reviewed on time for approval and issuance before December 31, 2018. To date, California Department of Public Health (“CDPH”) followed suit, but the California Bureau of Cannabis Control (“BCC”) has not. It’s safe to say that BCC applications submitted after December 1, 2018 have a low chance of being issued this year.

This is significant because after January 1, 2019, these agencies will have no legal authority to issue temporary licenses, and will not do so. After January 1, 2019, only provisional licenses will be issued, and only then to parties who hold or held temporary licenses. Parties that don’t have temporary licenses and thus cannot get provisional licenses will be stuck in the annual license logjam, which everyone knows moves at a snails’ pace. These deadlines cannot be solved with more regulations. They are from MAUCRSA and only the legislature can modify them. We wouldn’t count on that happening.

This time crunch places would-be licensees whose local applications are under review from California cities in a tough spot. As part of the state-level application process, the above-linked MAUCRSA section …

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Don’t Be a Marijuana Mooch!

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cannabis marijuana scams
DON’T BE THE MOOCH.

This morning when I went to the gym before work, I put on an NPR podcast that delved into the story of the FTC’s bust of David Diamond. Diamond is an infamous Angeleno who defrauded hundreds of people via telemarketing scams. In the podcast, the interviewee does a great job of explaining the common scammer term, “mooch.” A mooch is, according to the podcast, “… someone who will essentially buy anything from anybody who calls [them] on the telephone.”

This got me thinking about the ideal marijuana mooch since so much fraud and bad behavior is rampant in the national marijuana marketplace. We’ve covered multiple marijuana scams here, here, and here (and have written about fraud and important red flags (and red herrings) in the industry multiple times in this past).

This time however, I want to dedicate this post to the top 5 red flags of which a marijuana mooch should be aware:

1.  Anyone who tells you to invest in cannabis at all costs because you might “miss the boat.”

News flash–big alcohol, big tobacco, and big pharma are not active in the U.S. cannabis space. Even though they may be thinking about it and may have future plans for it (and even if states may already creating “…

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CBD Oil for Pets Is a Fast-Growing Industry

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It’s a known fact that interest in medical marijuana has been growing in Canada over the last few years. More research has contributed to an ever-growing body of knowledge, and changing attitudes towards cannabis have started to break down some of the stigma patients experience.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/cbd-oil-for-pets-is-a-fast-growing-industry…

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CBD Oil for Pets Is a Fast-Growing Industry

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It’s a known fact that interest in medical marijuana has been growing in Canada over the last few years. More research has contributed to an ever-growing body of knowledge, and changing attitudes towards cannabis have started to break down some of the stigma patients experience.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/cbd-oil-for-pets-is-a-fast-growing-industry…

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California Cannabis Development Agreements: Part Three

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california real estate development agreement
You get what you negotiate in development agreements.

This is the third post in our three-part series on development agreements in California. In our first post we provide an overview of the use (and misuse) of development agreements in the cannabis industry. The second post breaks down the basics of development agreement laws. Here, we will discuss the key terms to include and what to watch out for when negotiating a development agreement with a public agency.

Term

As we’ve explained, California’s 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.

Accordingly, one of the fundamental terms of a development agreement is its duration. Commonly, development agreements in the non-cannabis context provide vested rights for a period of ten to twenty years. Properly building out a facility tailored for commercial cannabis uses may cost millions to tens …

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California Cannabis Development Agreements: Part Three

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california real estate development agreement
You get what you negotiate in development agreements.

This is the third post in our three-part series on development agreements in California. In our first post we provide an overview of the use (and misuse) of development agreements in the cannabis industry. The second post breaks down the basics of development agreement laws. Here, we will discuss the key terms to include and what to watch out for when negotiating a development agreement with a public agency.

Term

As we’ve explained, California’s 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.

Accordingly, one of the fundamental terms of a development agreement is its duration. Commonly, development agreements in the non-cannabis context provide vested rights for a period of ten to twenty years. Properly building out a facility tailored for commercial cannabis uses may cost millions to tens …

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Cannabis risotto with saffron

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Risotto is a traditional Italian dish made with medium graine rice, which should be rich in starch. This recipe comes from the Verona area, since top quality rice is widely found there, as well as the other main ingredient of rissoto, cheese. In Italy, rissoto is defined as “minestra asciuta“, which means dry soup and indicates that the resulting preparation must be neither dry nor too liquid, but with a creaminess that allows to use a fork.

Risotto, along with pasta and pizza, are probably the three flagship dishes of Italian cuisine. Despite the main ingredient of today’s recipe is rice, we are going to use it as a vehicle to transport the rest of flavours that we want to incorporate to the dish. You can use a wide range of ingredients to complement your rice, the only thing to keep in mind is to achieve a correct balance between the different flavours. Thus, you can use vegetables, seafood, poultry meat, bush meat, guts, spices, wines, etc.

Our cannabis risotto with saffron is ready!

Our cannabis risotto with saffron is ready!

Tips and tricks to prepare the best cannabis risotto

The first thing to know is that rice will be ready around 15-20 minutes after adding the first spoonfuls of broth. Thus, it is best to have all ingredients ready before …

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How Cannabis Fared in the Oregon Elections (Hint: Very Well!)

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oregon cannabis marijuana sisters sumpter klamath clatskanie ontario
Oregon is getting greener and greener each cycle.

Cannabis not only won big around the country on Election Day 2018, but also on a local level last week within states that had already legalized adult use marijuana, such as Oregon and California. As to Oregon in particular, a handful of cities voted to lift bans on recreational marijuana on November 6. Nearly all of them succeeded.

As we’ve previously explained, Oregon allowed cities and counties to opt-out of the legal sale of recreational cannabis. Many cities and counties chose to go this route. One of the few ways cities and counties can lift the ban is through local initiatives that are presented to the voters.  On November 6, a couple of Oregon cities were able to life the ban through this process.

Ontario

Back in 2014, when Oregonians as a whole voted on the legalization of recreational cannabis use and sales, Ontario, Oregon was one of the cities that overwhelming voted against legalization. Ontario’s strong stance against the legalization of recreational marijuana allowed the city to ban the sale and production of marijuana. That all changed on November 6, 2018. According to preliminary results, the city lifted the ban with 1904 citizen voting in favor of the sale and taxation of marijuana within the city and 1450 voting …

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Uncertainty Abounds in Defining “Commercial Cannabis Activity” under California’s New Rules

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BCC california cannabis marijuana
We’ve got a lot of questions for the BCC right now.

Last month, California’s regulatory agencies charged with writing commercial cannabis rules released new modifications to the final rules proposed in July. The Bureau of Cannabis Control’s (BCC) proposed modifications contained some of the most dramatic changes, including what would effectively be an outright ban on intellectual property licensing for cannabis products—something we are still trying to wrap our heads around due to the seismic effect it would have throughout the industry. The comment period is now closed on the proposed modifications, so now we must wait and see what the BCC decides to do with its final rules in the next few weeks. (To see at our law firm’s comments to BCC on this, go here.)

The proposed rule banning IP licensing agreements is the result of the BCC’s attempt to redefine what constitutes “commercial cannabis activity.” Existing California statutes—which allow the BCC to create and modify cannabis rules—already require that “all commercial cannabis activity shall be conducted between licensees.” So, if you are conducting “commercial cannabis activity” you must have a license to do so. But what truly is “commercial cannabis activity,” and where should the state draw the line?

Current state law defines “commercial cannabis activity” as “includ[ing] the cultivation, possession, manufacture, distribution, processing, storing, laboratory …

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Washington State Regulates CBD Additives as Used in Marijuana Products

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Earlier this year, the Washington Legislature passed House Bill 2334 (the “Bill”) into law. The Bill allows licensed marijuana producers and processors to use cannabidiol (CBD) from a source not licensed by the Washington State Liquor and Cannabis Board (LCB). The Bill defines a “CBD product” as “any product containing or consisting of cannabidiol” and would permit the use of CBD products from unlicensed sources so long as the CBD product has a THC level of 0.3 percent or less on a dry weight basis and has been lab tested. The Bill essentially allows Washington processors to add CBD from industrial hemp derived in other states into Washington marijuana products.

Washington’s regulated cannabis market is a closed loop that works on the principle that no marijuana comes in and none goes out. Everything sold in a licensed retail store is grown by licensed producer and processed into products like oils and edible by a licensed processor.

cannabis washington lcb marijuana
Start ramping up ahead of December 1.

On October 31, the LCB enacted new regulations in light of the Bill. These new rules impose some additional requirements and restrictions with regards to CBD derived from sources outside of Washington’s framework. The LCB will not allow the addition of CBD to useable marijuana flower. That means CBD additives will be limited to edibles, oils, …

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How Cannabis Fared in the California Elections

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As we wrote on Tuesday, the midterm elections were monumental for cannabis: Michigan voters approved of a proposal legalizing recreational marijuana for adult use, Utah and Missouri will soon establish medical marijuana regimes, and Texas Representative and marijuana antagonist Pete Sessions lost to a Democrat.

All in all, Tuesday was a good day at the state and national level. But cannabis wasn’t just on the ballot at the state or national level—many cities had measures on that would regulate cannabis in one form or another. This post discusses some of the more impactful ballot measures that won and lost in California.

california elections cannabis marijuana

To start, dozens of cities and counties in California had cannabis taxation measures, which is a good sign for the expanding market. Oakland voters, for example, approved of Measure V, which amends the local code to allow cannabis manufacturers and cultivators to deduct the value of raw materials when calculating gross receipts for tax purposes. Fresno voters approved of Measure A, which adopts a cannabis business license tax. As noted above, numerous cities had tax measures on the ballot—and they are quite literally all over the map.

El Dorado County had a number of cannabis measures on its ballot. Measures P, Q, R, and S each passed, allowing the retail sale, delivery, distribution, and outdoor/indoor cultivation …

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California Intellectual Property Licensing: Our Comments to the Bureau of Cannabis Control

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california cannabis intellectual property licensing BCC
These proposed BCC regulations would be a mistake.

As we’ve been blogging about for the last couple of weeks, the Bureau of Cannabis Control (BCC) recently released modifications to the proposed regulations for cannabis licensees, one of which effectively prohibits all licensing, white labeling and manufacturing agreements between two parties where one of those parties is not a licensed cannabis business. In our post on this modification, we urged stakeholders to submit written comments to the BCC expressing their opposition to the rule change. We also noted that we would be submitting formal comments as a firm on behalf of our clients and are publishing those comments here. Our hope is that the BCC understands the damaging implications this rule change will have on the industry here in California, and we will be following the rule adoption process closely to see how this shakes out.

Below is the full text of our November 2 letter to BCC, minus the letterhead and signatures. We will continue to dialogue with affected parties and regulators on this crucial issue as opportunities permit. Please continue to join us in making your voices heard!


Lori Ajax, Chief
Bureau of Cannabis Control
P.O. Box 419106
Rancho Cordova, CA 95741

Re:       Comments Regarding Modifications to Text of Proposed Regulations for All Bureau Licensees §5032-Commercial Cannabis Activity

Dear …

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California Intellectual Property Licensing: Our Comments to the Bureau of Cannabis Control

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california cannabis intellectual property licensing BCC
These proposed BCC regulations would be a mistake.

As we’ve been blogging about for the last couple of weeks, the Bureau of Cannabis Control (BCC) recently released modifications to the proposed regulations for cannabis licensees, one of which effectively prohibits all licensing, white labeling and manufacturing agreements between two parties where one of those parties is not a licensed cannabis business. In our post on this modification, we urged stakeholders to submit written comments to the BCC expressing their opposition to the rule change. We also noted that we would be submitting formal comments as a firm on behalf of our clients and are publishing those comments here. Our hope is that the BCC understands the damaging implications this rule change will have on the industry here in California, and we will be following the rule adoption process closely to see how this shakes out.

Below is the full text of our November 2 letter to BCC, minus the letterhead and signatures. We will continue to dialogue with affected parties and regulators on this crucial issue as opportunities permit. Please continue to join us in making your voices heard!


Lori Ajax, Chief
Bureau of Cannabis Control
P.O. Box 419106
Rancho Cordova, CA 95741

Re:       Comments Regarding Modifications to Text of Proposed Regulations for All Bureau Licensees §5032-Commercial Cannabis Activity

Dear …

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BREAKING NEWS: Anti-Marijuana Attorney General Jeff Sessions Resigns

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Jeff Sessions Hates Cannabis
Finally, Sessions is a goner.

Jeff Sessions, the drug warrior that may or may not have liked the KKK until he found out they smoked pot, is out as U.S. Attorney General. After two years of being relentlessly bullied by President Trump, Sessions has apparently had enough. The Sessions resignation is of special interest to the marijuana industry because of just how much he hates marijuana. So it’s great news that Sessions is out, right?

While it’s certainly not bad news, the real story is that it doesn’t really matter. Looking back at the Sessions era, the only truly significant act that he took regarding marijuana was the withdrawal of prior federal guidance to U.S. Attorneys regarding marijuana enforcement in January 2018. At the time, we couldn’t tell whether this was the first step in an organized crackdown on marijuana or simply a shot across the bow. As a result of the withdrawal of the prior guidance memos, discretion on whether to prosecute marijuana crimes shifted from the Department of Justice to each of the 93 U.S. Attorneys assigned to the various federal judicial districts.

But lo and behold, nothing actually changed in federal enforcement. There were rumblings out of Oregon (whose U.S. Attorney was just picked to chair the Attorney General’s Marijuana Working Group), but …

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5 Unexpected Ways Medical Marijuana Can Make Your Life Better

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In the last few years, there has been growing interest in cannabis and what it can do in the medical field. More research than ever before is being conducted, and more medical professionals are beginning to embrace it as a potential treatment for their patients.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/5-unexpected-ways-medical-marijuana-can-make-your-life-better…

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5 Unexpected Ways Medical Marijuana Can Make Your Life Better

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In the last few years, there has been growing interest in cannabis and what it can do in the medical field. More research than ever before is being conducted, and more medical professionals are beginning to embrace it as a potential treatment for their patients.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/5-unexpected-ways-medical-marijuana-can-make-your-life-better…

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BREAKING NEWS: Cannabis Wins Big at the Midterm Elections

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 2018 marijuana cannabis midterms michigan utah missouri

Today was a stellar day for marijuana advocates around the country. Not only did a handful of states authorize legalization of medical and recreational marijuana at the polls, but the Democratic Party took control of the House of Representatives, and one very problematic Congressman, Pete Sessions, was sent packing down in Texas.

Below is a summary of the big changes nationwide, with many of these results still firming up at the time of writing. Note that this post does not detail some of the “smaller” local developments, such as decriminalization in certain Ohio cities, enthusiasm for cannabis by Wisconsin voters, or many other positive developments ushered in by this evening’s voting.

Michigan

Congratulations to the Wolverine State, which voted to legalize adult use (recreational) marijuana statewide. Individuals who are at least 21 years of age will be permitted to possess and use marijuana and marijuana-infused edibles, and grow up to 12 marijuana plants for personal consumption (that’s quite a bit). Permitted retail sales will be subject to a relatively modest 10% tax. Per state law, ballot initiatives take effect 10 days after results are certified, which can take up to three weeks from yesterday. So, legalization should take effect by the end of the year. Michigan is the tenth most populous state in the nation, and the first …

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Labeling CBD-Infused Foods in Oregon

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label CBD hemp oregon FDA
Start from scratch with your CBD product labels.

Since the beginning of the year, our firm has received a growing number of inquiries related to the labeling of cannabinoids (“CBD”)-infused foods. This legal issue is particularly confusing given the fact that the U.S. Food and Drug Administration (“FDA”) has yet to provide clear guidance for this category of products. This post aims to shed some light on the matter by addressing some of the requirements with which manufacturers and distributors of CBD-infused foods, specifically those derived from industrial hemp, must comply in Oregon.

Unlike the State of Indiana, which recently adopted the most stringent labeling rules for hemp-derived CBD products, Oregon opted to defer to the labeling rules promulgated by the FDA.

The Fair Packaging and Labeling Act (“FPL”) directs the FDA to issue regulations requiring that all “consumer commodities” be labeled to disclose net contents, identity of commodity, and the name and place of business of the products’ manufacturer, packer or distributor. Specifically, the FDA rules aim to ensure that foods sold in the United States are safe, wholesome and properly labeled.

The FDA rules provide two ways to label packages and containers:

  1. Place all label statements on the front label panel (also known as the “principal display panel” or “PDP”), which is the portion of

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5 Cannabis varieties with discreet aromas

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Among its many cherished characteristics, cannabis is highly appreciated for its aromas, but sometimes plants can generate a smell so powerful that it can attract the attention of neighbours and this issue can become a serious problem for those growing weed outdoors, where maximum discretion is essential and in which the use of carbon filters or other anti-odour systems is impossible.

In these cases choosing a cannabis variety that gives off discreet aromas is a good idea if we want to limit the smell generated by our garden, especially for outdoor crops on terraces and balconies. For this reason, you should avoid any genetics that stand out for their powerful and telltale aromas typical of cannabis, these include the varieties of the Diesel or Skunk families, Cheese or the Sour Diesel among many others… we are talking about varieties with a very high terpene content, which are distinguished by their characteristic, persistent and highly volatile aromas.

In this article we look at a selection of the varieties most recognised for their subtle and discreet scents, to help you avoid security headaches and uninvited guests at your grow spot.

Some cannabis strains have a more discreet aroma than many others

Some cannabis strains have a more discreet aroma than many others

Sugar Pop by Philosopher Seeds

The variety Sugar Pop from Philosopher Seeds is perfectly adapted to single

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Hold Your Horses: Los Angeles EMMDs Will Soon be Prevented from Relocating

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los ángeles california medical dispensary licensing
Certain L.A. dispensaries may soon be stuck in place.

Los Angeles’s existing medical marijuana dispensaries (“EMMDs”) under Measure M will soon be precluded from relocating from their current operations unless and until they receive their local annual licenses from the City of Los Angeles. Movement post-initial application to L.A. has been a common practice for  EMMDs for some time, and has apparently caused a rift with other potential commercial cannabis licensees who were effectively “zoned out” based on buffer requirements when an EMMD moved into their planned licensed territory (non-EMMD storefronts have to be no less than 700 feet from each other). The new requirement goes into effect soon—but just how soon remains to be seen.

On October 19, 2018, the Los Angeles Rules, Elections, and Intergovernmental Relations Committee (the “Committee”) held a meeting which dealt with various cannabis-related matters. Shortly before the October 19 meeting, the Los Angeles Department of Cannabis Regulation (“DCR”) submitted a letter requesting amendments to the City’s cannabis procedures, which are codified in the Los Angeles Municipal Code (“LAMC”). The letter requested that the City Council instruct the DCR to stop processing EMMD relocation requests or amend the LAMC accordingly. The DCR is concerned with EMMD relocation requests because:

In certain instances, an EMMD has re-located to a business premises within …

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Hold Your Horses: Los Angeles EMMDs Will Soon be Prevented from Relocating

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los ángeles california medical dispensary licensing
Certain L.A. dispensaries may soon be stuck in place.

Los Angeles’s existing medical marijuana dispensaries (“EMMDs”) under Measure M will soon be precluded from relocating from their current operations unless and until they receive their local annual licenses from the City of Los Angeles. Movement post-initial application to L.A. has been a common practice for  EMMDs for some time, and has apparently caused a rift with other potential commercial cannabis licensees who were effectively “zoned out” based on buffer requirements when an EMMD moved into their planned licensed territory (non-EMMD storefronts have to be no less than 700 feet from each other). The new requirement goes into effect soon—but just how soon remains to be seen.

On October 19, 2018, the Los Angeles Rules, Elections, and Intergovernmental Relations Committee (the “Committee”) held a meeting which dealt with various cannabis-related matters. Shortly before the October 19 meeting, the Los Angeles Department of Cannabis Regulation (“DCR”) submitted a letter requesting amendments to the City’s cannabis procedures, which are codified in the Los Angeles Municipal Code (“LAMC”). The letter requested that the City Council instruct the DCR to stop processing EMMD relocation requests or amend the LAMC accordingly. The DCR is concerned with EMMD relocation requests because:

In certain instances, an EMMD has re-located to a business premises within …

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Working with Outside Sales Persons in Oregon Cannabis

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oregon cannabis salesperson representative

Outside sales people can be a great tool to sell your cannabis product. They may be invaluable to your company. In Oregon, outside sales people may be exempt from minimum wage and overtime requirements if certain requirements are met. Lately, we’ve seen more and more Oregon marijuana companies start working with outside sales people (sometimes called a “sales representative”, “account representative”, etc.) in order to get a leg up in the highly competitive Oregon industry.

As with any sort of employment-adjacent relationship, working with outside salespersons is covered by administrative rules, in this case through the Bureau of Labor and Industry (BOLI). As such, OAR 839-020-0005(4) defines an “Outside Sales Person” as:

an employee who is customarily and regularly engaged away from the employer’s place of business and the salesperson is employed for the purpose of making sales or obtaining orders or contracts for services or for use of facilities for which a consideration will be paid by the client or customer, and the person’s hours of work spent engaged in activities other than sales does not exceed 30 percent of the hours worked in the workweek by non-exempt employees of the employer.

That’s a mouthful: Let’s look at how that might work in practice. A producer could have an employee that travels to processors, wholesalers, or retail stores to …

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Paul Ryan Supports Legalizing CBD and Industrial Hemp

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hemp cbd paul ryan farm bill
There’s been quite a bit of it lately on hemp and CBD.

Earlier this week, Speaker of the House Paul Ryan announced his support to end federal cannabidiol (“CBD”) prohibition and expressed strong support for the uses of industrial hemp. To view the video of Ryan’s comments, go here at the 21:15 mark.

For any newbies out there, CBD is one of the many chemical compounds in a class called “cannabinoids” that naturally occur in cannabis plants. “[CBD] has proven to work,” Ryan said, specifying that it “helps reduce seizures.” Indeed, the Food and Drug Administration (“FDA”) approved Epidiolex back in August, which is G.W. Pharma’s oral CBD solution for the treatment of seizure associated with Lennox-Gastraut and Dravet syndrome. The FDA approval prompted the Drug Enforcement Administration to reschedule all FDA-approved drugs containing cannabis-derived CBD with no more than 0.1 percent THC under Schedule V of the Controlled Substance Act (“CSA”).

The Speaker, who is not running for reelection and is retiring from Congress at the end of the year, shared that his mother-in-law used a synthetic form of cannabinoids when she was dying from melanoma and ovarian cancer.

Ryan also jumped on the opportunity to speak in favor of industrial hemp when responding to a medical marijuana question from a rally attendee who husband had succumbed to cancer. …

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Paul Ryan Supports Legalizing CBD and Industrial Hemp

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hemp cbd paul ryan farm bill
There’s been quite a bit of it lately on hemp and CBD.

Earlier this week, Speaker of the House Paul Ryan announced his support to end federal cannabidiol (“CBD”) prohibition and expressed strong support for the uses of industrial hemp. To view the video of Ryan’s comments, go here at the 21:15 mark.

For any newbies out there, CBD is one of the many chemical compounds in a class called “cannabinoids” that naturally occur in cannabis plants. “[CBD] has proven to work,” Ryan said, specifying that it “helps reduce seizures.” Indeed, the Food and Drug Administration (“FDA”) approved Epidiolex back in August, which is G.W. Pharma’s oral CBD solution for the treatment of seizure associated with Lennox-Gastraut and Dravet syndrome. The FDA approval prompted the Drug Enforcement Administration to reschedule all FDA-approved drugs containing cannabis-derived CBD with no more than 0.1 percent THC under Schedule V of the Controlled Substance Act (“CSA”).

The Speaker, who is not running for reelection and is retiring from Congress at the end of the year, shared that his mother-in-law used a synthetic form of cannabinoids when she was dying from melanoma and ovarian cancer.

Ryan also jumped on the opportunity to speak in favor of industrial hemp when responding to a medical marijuana question from a rally attendee who husband had succumbed to cancer. …

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Cannabis RICO Lawsuits Are Failing: Oregon and Colorado Updates

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cannabis marijuana RICO litigation
Time for some of these plaintiffs’ lawyers to pack it up.

We’ve been writing about RICO lawsuits on this blog for a while. These lawsuits are typically brought by neighbors of state-licensed cannabis farms, who allege they are bothered by noise and smells associated with cannabis production, and that their property values have been damaged by extension. Generally speaking, these plaintiffs tend to have strong prohibitionist beliefs. Filing RICO lawsuits has also become a cottage industry for certain lawyers, and there are even educational courses for attorneys who want to spend their time on this sort of thing.

As a reminder, RICO is a federal statute that provides for a civil cause of action for acts performed as part of an ongoing criminal organization (in addition to criminal penalties). Because RICO complaints sound in federal law and implicate supply chain and vendor defendants, these cases differ from your ordinary nuisance-and-trespass actions, which pursue only the marijuana grower itself, and are also occasionally brought against cannabis farms.

The first RICO lawsuits started popping up a few years ago, and some of them are backed by prohibitionist groups attempting to rattle the industry. One common strategy of RICO plaintiffs, particularly in the early litigations, was to name every vendor doing business with the cannabis farm, including those that never touched the …

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Sploof: A Muffler For Your Marijuana

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Nothing announces the fact that you’re smoking marijuana like the smell of the smoke. It’s instantly recognizable and can seemingly be smelled from miles away (it can’t, we’re just exaggerating for effect).

Thankfully, some ganja genius somewhere came up with a way to mask the scent of weed smoke by passing it through a DIY-filter. This nifty little device became known as a sploof.

joint smokeSource:  CollectiveEvolution.com

But what exactly is a sploof? Where did the term come from? And how can you make your own? Let’s find out.

What Is A Sploof?

Think of a sploof as a muffler for your marijuana. If you’ve ever heard a car with a malfunctioning muffler, you know that they’re damn noisy. You can hear them coming from miles away (we’re not exaggerating this time).

The muffler works to dampen the extreme noise by passing the sound waves through a set of perforated tubes. The perforations reflect the sound waves in such a way that they effectively cancel each other out. This makes the engine noise all but undetectable to the outside observer.

image showing inside of a vehicle mufflerSource:  Dynomax.com

The sploof works on the same principle only with smell instead of hearing. Instead of simply releasing the smoke from your joint or bong into the air, you’re going to exhale through the sploof. Inside the sploof, the smoke

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