Posts By admin

Federal Court Dismisses RICO Suit Against Sonoma County Cannabis Cultivator

, , No Comment

sonoma county cannabis RICOFor a while, criminal conspiracy lawsuits against cannabis operations looked like a potentially promising strategy for cannabis prohibitionists to try and use litigation to reverse the trend of legalization. The idea is to use the Racketeer Influenced and Corrupt Organizations Act (“RICO”), a federal statute intended to combat organized crime–and which allows private rights of action for lost property value resulting from criminal operations–to enjoin cannabis operations and recover damages to force the operators out of business. The typical set of facts is that a residential neighbor plaintiff claims that his or her property value is damaged by the existence of a nearby cannabis operation, usually outdoor cultivation, and names as a defendant every single person and business that had any conceivable connection to that operation.

There were a handful of relative successes with this strategy early on, culminating in a 10th Circuit Court of Appeals decision allowing a RICO claim against cannabis cultivators to move forward on a theory of diminished property value. However, that victory was soon followed by a resounding defeat in a jury verdict finding no such diminution of property value. Subsequent U.S. District Court decisions from Oregon continued the backward slide, finding that although the residential neighbor plaintiffs might have potential personal injury claims for nuisance, they were unable as a matter of …

Read Post →

The FDA’s Stance on Hemp-Derived CBD as a Dietary Supplement (Part 2)

, , No Comment

fda hemp cbd red yeast rice

This is the second installment in our series on the Food and Drug Administration (“FDA”) and hemp-derived CBD (“Hemp-CBD”). Our last post focused on the Drug Exclusion Rule, which essentially states that an article cannot be marketed as a dietary supplement if it was investigated or approved as a drug before the article was marketed as a dietary supplement (or food). Today, we’ll take a look at what that use of “before” really means.

Prior Market Clause

A key component of the Drug Exclusion Rule is that the article at issue was not previously marketed before the article was evaluated or approved by the FDA (the “Prior Market Clause”). So what does it mean to “market” a product? Helpfully, the FDA FAQs link to Draft Guidance for Industry: Dietary Supplements: New Dietary Ingredient Notifications and Related Issues (“NDI Guidance”) to provide an explanation of the phrase “marketed as.”

The NDI Guidance, which like the FDA FAQs is nonbinding, elaborates on the idea of “marketing”:

FDA considers ‘marketing’ a dietary ingredient to mean selling or offering the dietary ingredient for sale (1) as or in a dietary supplement, (2) in bulk as a dietary ingredient for use in dietary supplements, or (3) as an ingredient in a blend or formulation of dietary ingredients for use in dietary supplements. A dietary

Read Post →

The FDA’s Stance on Hemp-Derived CBD as a Dietary Supplement (Part 1)

, , No Comment

fda dietary supplement cbd hemp

Since the 2014 Farm Bill passed, products containing cannabidiol (“CBD”) derived from hemp (“Hemp-CBD”) have become widely popular and available in a wide range of stores and online. The Food and Drug Administration (“FDA”) has, for the most part, sat on the sidelines. The FDA has occasionally sent out warning letters to Hemp-CBD distributors who made medical claims about their products, but that was it. The days of relative non-enforcement may be over, as the FDA has recently seized Hemp-CBD products.

This two-part series will take a look at how the FDA will regulate Hemp-CBD. Today’s post will focus on why the FDA does not currently view Hemp-CBD is a dietary supplement. Tomorrow, we’ll examine some issues with the FDA’s position and look at how the agency may regulate Hemp-CBD in the near future.

The 2018 Farm Bill makes it explicit that it does not limit the FDA’s authority to regulate consumer products, and the FDA has made clear that it is focused on Hemp-CBD, making an announcement on Hemp-CBD just moments after the 2018 Farm Bill was signed by Trump. FDA’s jurisdiction over products is triggered by the Food, Drug & Cosmetics Act (“FDCA”).

For the purposes of this post we’ll look at the following categories of products under the FDCA and FDA regulation:

  • “Drug” is any article “intended

Read Post →

ICYMI: The BCC Drops its Final Regulations

, , No Comment

On Wednesday, January 16, 2019, the California Bureau of Cannabis Control (“BCC”)—the agency that licenses distributors, retailers, testing labs, and event organizers—dropped its final regulations. Until then, BCC licensed commercial cannabis operators or applicants for BCC licenses had been in no man’s land, complying with emergency regulations while trying to divine what the final regulations would look like, what they would need to change, and when they would need to change it. While the final regulations are by no means perfect, they are at least here (alongside the CDPH permanent regulations, which we covered on Monday). While these final regulations from BCC appear to mirror the proposed regulations submitted back in early December, they depart from the emergency regulations in some pretty significant ways. Below are a few of the more key areas.

BCC marijuana final regulationsOwner Changes. One of the more significant final regulatory expansions comes in the disclosures that must be made to the BCC when a licensed entity is owned by another entity. The BCC previously required that some of the people who own or run entity owners of licensees be disclosed in BCC applications, but the new regulation greatly expands those requirements. For example, in the readopted emergency regulations, entity owners needed to disclose their CEOs and/or board members if those entities were considered owners based …

Read Post →

What is Psilocybin and what are its effects?

, , No Comment

What is psilocybin?

  • Name: Psilocybin, 4-PO-DMT
  • F0rmula: C12H17N2O4P
  • IUPAC name: [3-(2-dimethylaminoethyl)-1H-indol-4-il] dihydrogen phosphate
  • Molecular weight: 284,25 g/mol
  • Melting point: 220-228ºC

Psilocybin and psilocin (an alkaloid derived from the former) are psychoactive compounds found in numerous species of fungi (estimated at 200 species), including the popular Psilocybe Cubensis. In some areas of the planet, the use of this type of mushroom dates back millennia, either in a recreational or a spiritual form, especially in ritualistic and shamanic contexts. In addition, as we will see later, these entheogens – like many others – can also be used for medicinal purposes, and can be effective to treat diseases such as anxiety or depression.

At the end of the decade of the 50s, using Mexican Psilocybes, the reputed Swiss scientist Albert Hoffman not only managed to isolate psilocybin and psilocin while working at Sandoz laboratories, but also created a way to produce it synthetically. Normally, psilocybin fungi are those that contain this alkaloid compound.

Psilocybin molecule

Psilocybin molecule

Magic mushrooms & psilocybin

In fact, a large number of mushrooms – often referred to as magic or hallucinogenic – share as a common feature the presence of psilocybin in varying concentrations. There are about 200 basidiomycete fungi that contain it, and can be found naturally in areas of America, Europe and Asia. Naturally, …

Read Post →

Practical Tips for Your Cannabis Co-Branding Deals

, , No Comment

cannabis marijuana cobrandI’m currently advising multiple cannabis clients that are seeking to enter into co-branding deals, some with other cannabis companies, some with non-cannabis companies, and some of these clients were initially unaware of the potential risks to their intellectual property (“IP”) that could result from a poorly-drafted agreement (or from failure to adequately protect their IP from the outset).

Most of the industry, at least here in California, is aware of the collaboration between Lagunitas Brewing Company and CannaCraft (under its AbsoluteXtracts brand) that produced Hi-Fi Hops, an IPA-inspired cannabis sparkling water. In Oregon, East Fork Cultivars partnered with Coalition Brewing to create a CBD-infused beer called Certified Hazy IPA. And there are no shortage of other brand collaborations within the industry, from gourmet chocolate to vape cartridges.

Co-branding is a common marketing strategy wherein two or more brands collaborate to create a product that is representative of both or each of the brands. Co-branding can be a great opportunity for publicity and can also serve as an opportunity to introduce one of the co-brander’s customers to the other co-brander’s product. It can be an effective tool for expanding the reach of your brand into other markets if executed properly. Co-branding can also serve to enhance the value of the goods if both of the brands are well-known and respected …

Read Post →

7 Ways to Reduce the Pain of Rheumatoid Arthritis

, , No Comment

Rheumatoid arthritis (RA) is an inflammatory health condition involving the immune system. The patient’s overactive immune system begins attacking their own tissue. The result is stiff, swollen joints, as well as pain.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/7-ways-to-reduce-the-pain-of-rheumatoid-arthritis…

Read Post →

California Cannabis: Breaking Down the CDPH Permanent Regulations

, , No Comment

california cannabis licensing rulesThe State of California finally adopted permanent cannabis regulations earlier this month. In a series of posts, we’re going to cover the highlights of each agency’s permanent rules so that you know what big changes to expect during 2019. This post will cover the main changes (in our opinion) regarding the California Department of Public Health Manufactured Cannabis Safety Branch’s (“CDPH-MCSB”) permanent regs. Without further ado:

No more Farm Bill hemp-CBD ingredients or additives. It’s no secret that the California Department of Health Food and Drug Branch (“FDB”) has an issue with hemp-CBD. Specifically, an FAQ that issued from FDB last year made clear that FDB prohibits hemp-CBD in “Food” for humans and pets. Now, CDPH-MCSB is following suit (indirectly). Pursuant to new regulation 40175(c), “a manufacturer licensee shall only use cannabinoid concentrates and extracts that are manufactured or processed from cannabis obtained from a licensed cannabis cultivator.” What this means is that using Farm Bill hemp-CBD as an ingredient or addictive to cannabis manufactured products is not allowed unless it comes from a licensed cannabis cultivator. The protections of the Farm Bill won’t apply.

Owners and financial interest holders. I recently wrote about how it’s unclear as to how far the state will now go in finding and vetting entity owners and entity financial interest holders, especially since the …

Read Post →

MLK Day 2019: Marijuana and Civil Rights

, , No Comment

marijuana civil rights

Happy MLK Day!

For our international readers, Martin Luther King, Jr. Day is a federal U.S. holiday marking the birthday of its eponymous civil rights hero. Dr. King was the chief spokesperson for nonviolent activism in the Civil Rights Movement, which successfully protested racial discrimination in federal and state law. Dr. King was assassinated in 1968, four years after the passage of one of the great U.S. laws of the 20th century, the Civil Rights Act of 1964. His death also came two years prior to one of the 20th century’s most controversial and insidious laws, the Federal Controlled Substances Act of 1970 (CSA).

As cannabis business lawyers, we write about cannabis law topics every day of the year on this blog, but we seldom address pure social issues. When it comes to cannabis, however, it is sometimes difficult to separate law and policy. This is because the federal prohibition of marijuana in the United States has had a racially disparate impact on non-white individuals, especially black and Latino Americans. That should come as no surprise to anyone: It is well documented that former president Richard Nixon wanted to link marijuana use and its negative effects to black people and hippies, who he perceived to be his enemies, when he signed the CSA.

That was almost …

Read Post →

MLK Day 2019: Marijuana and Civil Rights

, , No Comment

marijuana civil rights

Happy MLK Day!

For our international readers, Martin Luther King, Jr. Day is a federal U.S. holiday marking the birthday of its eponymous civil rights hero. Dr. King was the chief spokesperson for nonviolent activism in the Civil Rights Movement, which successfully protested racial discrimination in federal and state law. Dr. King was assassinated in 1968, four years after the passage of one of the great U.S. laws of the 20th century, the Civil Rights Act of 1964. His death also came two years prior to one of the 20th century’s most controversial and insidious laws, the Federal Controlled Substances Act of 1970 (CSA).

As cannabis business lawyers, we write about cannabis law topics every day of the year on this blog, but we seldom address pure social issues. When it comes to cannabis, however, it is sometimes difficult to separate law and policy. This is because the federal prohibition of marijuana in the United States has had a racially disparate impact on non-white individuals, especially black and Latino Americans. That should come as no surprise to anyone: It is well documented that former president Richard Nixon wanted to link marijuana use and its negative effects to black people and hippies, who he perceived to be his enemies, when he signed the CSA.

That was almost …

Read Post →

A Shift in Nomenclature for Hemp-CBD Products

, , No Comment

HEMP CBD FULL SPECTRUM HEMP FDA
… FULL SPECTRUM  HEMP?

In a recent post regarding the labeling requirements surrounding dietary supplements containing industrial hemp-derived CBD (“Hemp-CBD”), we alluded to a recent movement in the industry to rename Hemp-CBD products “full spectrum hemp.” We now take a closer look at the reasons behind this shift in nomenclature.

Part of the impetus behind this movement might be linked to a 2001 court decision pertaining to the status of lovastatin, a compound found in red yeast rice.

Although red yeast rice had been used for healing purposes for thousands of years, the isolated compound was approved by the FDA as a drug in the treatment of cholesterol. Despite the FDA approval, companies continued to sell and market lovastatin as a dietary supplement. One of these companies was Pharmanex. The FDA challenged the sale and marketing of Pharmanex’s product, Cholestin, and ultimately prevailed when Pharmanex challenged the FDA’s position in federal court.

The court held that the lovastatin found in Cholestin was not in its natural form (i.e., as naturally occurring in red yeast rice) because its manufacturer deliberately selected and used a method to produce specific levels of lovastatin that were greater than those naturally present in red yeast rice. In addition, the court determined that Cholestin was a drug because it was specifically marketed as the …

Read Post →

H.R. 420: Proposed Federal Legislation to End Marijuana Prohibition

, , No Comment

HR 420 marijuana blumenauer

On Wednesday, January 9, 2018, Representative Earl Blumenauer (D-Or) introduced the aptly designated H.R. 420, or the Regulate Marijuana like Alcohol Act. The bill is still so new that it’s not yet up on Congress’ site, but the apparent text for the bill can be found online.

H.R. 420, if passed in its current form, would remove marijuana from the Controlled Substances Act’s scheduling. The law wouldn’t allow complete legalization without regulation. It still makes clear that bringing cannabis into a jurisdiction would be unlawful where it would violate the laws of that jurisdiction. Instead of full-scale legalization, the bill would require the Secretary of the Treasury to establish a permitting scheme which could, like state law, involve different permits for each different kind of cannabis activity. It’s not yet totally clear how this would play out for permit holders in states with current regimes, i.e., whether they would have to get federal permits and/or what criteria they’d be held to.

Interestingly, these federal permits appear to last indefinitely until suspended and can be transferred if the transferee makes a timely request. There are of course disqualifying convictions, but those appear to be relatively narrow and exclude federal or state offenses if the underlying conduct was lawful in the state where the conviction was rendered. The bill also …

Read Post →

Oregon Cannabis: Are the Days of Administrative Settlement Over? Not Entirely.

, , No Comment

oregon marijuana OLCC violation
Make it happen!

I’ve been suspicious the last few months that the Oregon Liquor Control Commission (OLCC) is starting to set a zero tolerance policy for marijuana rule violations. Unfortunately, the extrinsic evidence seems to be proving my suspicions.

As I’ve previously written, the OLCC settlement policies seemed to shift last September. In a first for the commission, they rejected a settlement proposal that would have allowed a licensee to keep its license and pay a fine. That particular licensee, Black Market Distribution, LLC, either needs to fight for its license at a hearing or surrender its license. The OLCC has not issued a final order related to Black Market Distribution yet and the company still have its license according to the approved license list. Only time will tell if Black Market Distribution is able to keep their license in light of the alleged violations.

As I wrote in November, if the OLCCs continued actions are any indication, Black Market Distribution may have little chance of keeping their license. In December, the OLCC seemed to continue down a path of refusing to settle cases unless the Licensee agrees to sell the business or surrender the license.

  • The OLCC alleged licensee Positive Vibrations committed four Category IV violations relating to advertising rules. The OLCC proposed a 34-day suspension or

Read Post →

What Are You Smoking? Episode 67: Talking Expungement with Cage-Free Cannabis

, , No Comment

Adam Vine of Cage-Free Cannabis joins the show to talk about how brands can help make it easier to get cannabis-related criminal charges expunged from people’s records, and why they should.

The post What Are You Smoking? Episode 67: Talking Expungement with Cage-Free Cannabis appeared first on Leafly.

Source: https://www.leafly.com/news/podcasts/what-are-you-smoking-67-cage-free-cannabis-expungement…

Read Post →

BREAKING NEWS: California Agencies Issue Final Cannabis Regulations. Finally.

, , No Comment

california cannabis final regulations

Yesterday afternoon, on January 16, 2019, the California Office of Administrative Law (“OAL) finally approved the sets of final regulations under it had been reviewing after submissions from the California Department of Public Health (“CDPH”) which regulates cannabis manufacturers, the California Department of Food and Agriculture (“CDFA”) which regulates cultivators, and the Bureau of Cannabis Control (“BCC”) which regulates distributors, retailers, event organizers, and testing laboratories. You can find the final regulations here.

The three sets of regulations follow on the heels of final proposed regulations that the CDPH, CDFA, and BCC submitted to the OAL for its review in December. We will be providing some overview of the key components of the final regulations shortly, but it looks upon initial review like these regulations adopted most or all of what was submitted for review in December.

These regulations are “final”, meaning cannabis operators and applicants no longer need to worry about discrepancies between emergency regulations (which as of now are no longer effective per the OAL’s statement) and whatever version of proposed regulations were then out in the ether. But though these regulations are “final”, we’re pretty positive that there will be changes and modifications—probably on a more incremental level—in the future.

Stay tuned to the Canna Law Blog for further insight and analysis into these final regulations …

Read Post →

Male Plants: Can They Get You High?

, , No Comment

It’s one of the most commonly asked questions in cannabis circles worldwide. Not to mention, a highly disputed argument that generates all manner of wild and wacky claims. The question being – what does science tell us about male cannabis plants? More specifically, is it possible to get high by smoking in any of the […]

The post Male Plants: Can They Get You High? appeared first on LIWTS.

Source: https://www.liwts.org/cannabis/male-plants-can-get-high/…

Read Post →

Industrial Hemp and the Banks: Slow Going

, , No Comment

We have spilled a lot of ink on this blog related to the 2018 Farm Bill, which legalized hemp at the federal level. It’s huge news. And there are so many ramifications, from food law to trademarks to the environment for financial services. This blog post is going to cover financial institutions and hemp at about 10,000 feet. Since late December, we’ve had many clients come to us with frustrations about the ongoing lack of access post-Farm Bill, and questions about how things will play out in 2019.

To frame this issue, it’s important to summarize what the Farm Bill actually is and does. In a recent post, we explained that “the 2018 Farm Bill modified the Controlled Substances Act (the ‘CSA’) to exempt hemp from the definition of marijuana. Not only is hemp now clearly excluded from this definition and thus not a scheduled drug, but states and tribes also cannot prohibit the distribution of hemp.” Seems easy, right?

industrial hemp bank credit unionIf only. Going forward, hemp will be subject to stiff regulation at the state and federal levels. For example, although growing hemp no longer violates the CSA, the Farm Bill prohibits hemp production in states and tribal jurisdictions that lack an industrial hemp “plan.” Those plans will be nuanced, and what any state’s plan will look like next year …

Read Post →

Are Opioids Overprescribed?

, , No Comment

Over the past three years, Canada and the United States have watched their respective opioid crises continue to deepen. Despite initiatives to curb illicit opioid use and reduce opioid-related health incidents, the numbers have continued to rise across North America.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/are-opioids-overprescribed…

Read Post →

FDA Enforcement Against Hemp-CBD Products Has Begun

, , No Comment

fda cbd food
Not OK per FDA.

On January 3rd, according to the owner of a smoke shop in Yuma, Arizona, officials from the Food and Drug Administration (FDA) seized a variety of CBD products from the store’s shelves. The officials took fewer than fifty items and told the owner to anticipate follow-up paperwork within seven to ten business days.

According to the owner’s account, FDA officials had stopped by the shop a few days earlier and asked what products were edible and intended for humans. When those officials returned, they informed the owner that CBD cannot be sold for human consumption.

This squares with what we have written about extensively, and also with what FDA Commissioner Scott Gotlieb has stated:

[I]t’s unlawful under the FD&C Act to introduce food containing added CBD or THC into interstate commerce, or to market CBD or THC products as, or in, dietary supplements, regardless of whether the substances are hemp-derived. This is because both CBD and THC are active ingredients in FDA-approved drugs and were the subject of substantial clinical investigations before they were marketed as foods or dietary supplements. Under the FD&C Act, it’s illegal to introduce drug ingredients like these into the food supply, or to market them as dietary supplements. This is a requirement that we apply across the

Read Post →

Automatic Irrigation for Cannabis

, , No Comment

Growing cannabis with automatic irrigation

Cultivating cannabis is an art in which each grower uses their best techniques and their own knowledge, as well as different growing apparatus that can help to manage the growing environment or as in this case, the automatic irrigation of cannabis plants.

Automatic irrigation in a cannabis grow

Automatic irrigation in cannabis cultivation

The duration of a cannabis crop is around 3 months, with the first month for the plants vegetative growth and at least the next 2 months for flowering. During this time plants require water and fertilisers every few days, so irrigation will become a repetitive task that can end up tiring all but the most dedicated grower, especially when time is at a premium.

Manual or automatic irrigation in cannabis cultivation

Pretty much every grower starting out in cannabis cultivation will usually irrigate by hand, but how can we simplify this task?

Many growers prefer to water by hand and can be a bit reluctant to adopt automatic irrigation systems, but when you use one for the first time there’s no turning back. Automatic irrigation gives us more free time to check the plants or to dedicate to other tasks.

Automatic irrigation can be as simple or as complex as we like, depending on the requirements of each grower and the aspects that they …

Read Post →

The Even More Perplexing State of Hemp CBD in California

, , No Comment

california hemp CBD
We’ve got you covered on California, hemp, FDA and CBD.

A few months ago, I wrote a blog post about the precarious state of industrial-hemp derived CBD in California. Since then, as everyone knows, President Trump signed the Agricultural Improvement Act of 2018 (or “Farm Bill”). A lot of people think that in the wake of the Farm Bill, hemp-derived CBD (“Hemp CBD”) is now completely legal. This is in many cases a wildly inaccurate misconception—especially in California. Now, the legal status of Hemp CBD is arguably even more confounding than it was then. And it was pretty bad.

What did the 2018 Farm Bill Actually Do?

Before getting into California Hemp CBD laws, it’s important to discuss what the new Farm Bill even changes. If you follow us here at the Canna Law Blog, you know we’ve written pretty comprehensively on this topic. For a brief overview, the 2018 Farm Bill modified the Controlled Substances Act (the “CSA”) to exempt hemp from the definition of marijuana. Not only is hemp now clearly excluded from this definition and thus not a scheduled drug, but states and tribes also cannot prohibit the distribution of hemp. However, as I explain below, that doesn’t necessarily mean hemp or Hemp CBD can be sold without state restrictions.

The current Farm Bill also gives …

Read Post →

Hilary Bricken Named a Top Cannabis Dealmaker

, , No Comment

Congratulations to Canna Law Blog’s Hilary Bricken, recently named one of the cannabis industry’s top lawyers by Business Insider!

The cannabis industry is volatile and deals are growing more complex as markets evolve. Having worked with clients in the cannabis industry for over eight years, though, and in multiple jurisdictions, there is no deal too complex for Hilary. In 2018 alone, she closed an estimated $100 million in industry transactions.

Because Hilary has been in the industry for so long, she is also uniquely equipped to make observations regarding its changes. As she states in the article, the field is now more diverse, including among service professionals. Among the other attorneys listed were lawyers from large international firms such as Dorsey and Whitney and Fox Rothschild.

With an industry “set to skyrocket to $194 billion,” the diversity and complexity of cannabis transactions will only increase over time. All in all, we are super proud of Hilary and our growing L.A. office, and looking forward to big things in 2019.

Source: https://www.cannalawblog.com/hilary-bricken-named-a-top-cannabis-dealmaker/…

Read Post →

If You Register Your Cannabis Trademark, Beware of Scams

, , No Comment

cannabis trademark scamWe hear from clients on a regular basis who receive fraudulent notices pertaining to their U.S. federal trademark applications, and because we’ve seen an uptick in these scams over the last month, we thought it would be prudent to publish a PSA on the topic, together with what to look out for if you are a trademark applicant or owner.

These trademark scams often come in the form of an official-looking letter or invoice requesting payment related to the trademark application. These letters can come via mail or via email, are formatted to look like an official government document, and list specific details about your trademark application, including an image of your trademark. All of this is public information and readily available, for better or worse, to potential scammers.

A client of ours recently received a letter from a company called Trademark Selection, Inc. that requested a “Registration Fee” of USD 1,360. The letter also provided wire instructions to an account in Florida, and in very fine print at the bottom stated, “By paying the indicated amount you accept this offer that will approve listing this information in the ‘TM SELECTION 2018 / The International Trade Marks and Service Marks’ catalogs.” This letter is a scam.

For clients that utilize our firm for their trademark filings, all correspondence related to …

Read Post →

The Biggest and Best CBD Strains Money Can Buy

, , No Comment

At the risk of generalising, most cannabis users are all about tetrahydrocannabinol. THC being the psychoactive cannabinoid responsible for delivering that uplifting ‘high’ that’s synonymous with cannabis consumption. As such, it is common for cannabis users to search high and low for the strongest strains they can lay their hands on – ideally packing as […]

The post The Biggest and Best CBD Strains Money Can Buy appeared first on LIWTS.

Source: https://www.liwts.org/blog/biggest-best-cbd-strains-money-can-buy/…

Read Post →

Oregon Marijuana Company Sued in FLSA Wage Claim

, , No Comment

Pay those employees, non-exempt and otherwise.

I recently wrote about a case in the Tenth Circuit, Kenney v. Helix TCS, Inc., where the Court of Appeals is asked to decide if the Federal Labor Standards act (FLSA) provides wage and hour protection to employees of cannabis businesses. That case hasn’t seen much movement since I wrote about it, but its decision could have a significant impact on a case recently filed in Federal District Court in Oregon.

Michael Garity has filed a state and FLSA wage and hour claim against his former employer, WRD Investments LLC (“WRD Investments”). According to the complaint, Mr. Garity was hired by WRD Investments to provide expertise and labor in support of WRD Investments’ marijuana grow near Junction City, Oregon.

Mr. Garity alleges he was a “non-exempt” employee for WRD Investments. His status as a non-exempt employee would have required WRD Investments to pay Mr. Garity at least minimum wage for all hours worked and overtime rates for all hours worked over 40 hours per week. In the complaint, Mr. Garity alleges that between March 2016 through May 2017 he may have worked approximately 2500 hours without any compensation. He further alleges that he frequently worked over 40 hours per week without overtime pay.

Mr. Garity’s complaints do not stop there. Mr. Garity …

Read Post →

FREE Webinar Jan. 29: Washington Employment Law for Cannabis Businesses

, , No Comment

washington cannabis employment lawOwning a cannabis business can feel like you’re drowning in various regulation compliances and not actually spending time with your business. The excess of rules and regulations levied by the Washington Liquor and Cannabis Control Board (WSLCB), cannabis-specific regulations, along with an array of state and federal employment laws and regulations can keep any business from blossoming to its fullest. At Harris Bricken we understand your struggles and aim to keep your business thriving.

If you are a WSLCB licensed cannabis business with employees, please join us at noon (PST) on January 29, 2019 for the second of our lunchtime employment law webinar series. Throughout the presentation, Harris Bricken attorney Megan Vaniman will lend her vast knowledge of employment law to ensure that your business is in compliance with Washington regulations. Topics will include:

  • Washington’s Sick Leave Laws
  • Washington’s Ban-the-Box Regulation
  • Washington’s Equal Pay Opportunity Act
  • The difference between independent contractors and employees

Moderated by fellow Harris Bricken attorney Robert McVay, Megan will also address any relevant audience questions throughout the presentation. Please register by clicking here. For any additional questions regarding the webinar, please contact firm@harrisbricken.com. We hope you can join us!

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

Read Post →

Oregon Taking a Hard Look at Interstate Marijuana Sales

, , No Comment

oregon cannabis interstate salesOnce again, Oregon is working on becoming a marijuana maverick. The Beaver State is on the verge of introducing a bill that would allow marijuana exports to other states by 2021.

In an attempt to tackle the oversupply crisis that has plagued Oregon the last few years, the Craft Cannabis Alliance, an Oregon-based membership association of cannabis and allied businesses, has spearheaded a campaign aimed at reintroducing the idea of exporting Oregon cannabis, a plan that was first proposed in 2017 by Senator Floyd Prozanski (D-Eugene).

The idea was memorialized in Senate Bill 1042, which would have permitted interstate transfers of cannabis products with adjacent legal states that complied with Oregon’s testing, packaging and labeling rules as well as any rules imposed by the receiving state. Although the original proposal died in the House last year, a lot has changed since then.

First, the popularity of marijuana among American adults has been on the rise. According to a 2017 Gallup survey, 64 percent of Americans favor the legalization of marijuana for recreational purposes.

Second, Oregon’s supply has far exceeded local demands: the state is currently sitting on approximately 1.4 million pounds of marijuana that state and federal laws prohibit from selling outside state lines. This tremendous oversupply in Oregon has caused prices to crater, putting many licensed growers …

Read Post →

Why the Medical Cannabis Industry Is Here to Stay

, , No Comment

Cannabis was legalized across Canada in October 2018. With the Cannabis Act finally coming into force, many people foresaw the end of medical cannabis in the Great White North.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/why-the-medical-cannabis-industry-is-here-to-stay…

Read Post →

The Business of Marijuana in Northern California: Join Us January 17 and 18 in San Francisco!

, , No Comment

california cannabis seminar san franciscoOn Thursday and Friday of next week, January 17 & 18, our own Daniel Dersham and Julie Hamill will present at a two-day continuing legal education (CLE) event in San Francisco called The Business of Marijuana in Northern California, to discuss cannabis real estate and land use issues in California. The roster of speakers lined up for this CLE includes an array of lawyers, consultants, and business professionals working with the cannabis industry, and everyone, including non-lawyers, would be well served to attend. For a full event description, including topics, speakers and registration links, click here.

Looking back over the past two years since the passage of Prop 64 legalizing adult-use cannabis in California, it is amazing to see how much things have changed in California cannabis. At this point, the state’s adult-use and medicinal cannabis regulatory regime is fully built out, with thousands of license applications now on file with the state. We are proud to call many of these California producers, processors, wholesalers and retailers our clients, alongside the many investors and ancillary service providers we represent.

Now that the California regulatory groundwork has stabilized, local jurisdictions have continued to open up their markets to the cannabis industry, and the legalization and decriminalization movement has continued to forge ahead, cannabis business activity in California is …

Read Post →

California Cannabis Red Tape Alert: New BCC “Change of Ownership” Rules

, , No Comment

california cannabis license merger saleOur California cannabis lawyers are seeing a major spike in mergers and acquisitions (M & A), and it’s time to discuss what’s on the horizon for changes of ownership for some California cannabis businesses. In every cannabis state, M & A is no breeze because the regulators almost always require pre-approval of the transaction or of the new buyer(s). In California, it’s going to be more of the same in the red tape department in the future, as per the proposed permanent rules that will (likely) take effect at the middle of this month.

As you all know, multiple agencies in California run point on licensing. The Bureau of Cannabis Control (“BCC”) is the lead agency though when it comes to the implementation of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). Under the BCC’s proposed permanent rules (which are still under review by the Office of Administrative Law), we now have a revised change of ownership process for distributors, labs, and retailers. (The California Department of Public Health the California Department of Food and Agriculture both have new change of ownership rules that significantly differ from the BCC in certain ways.)

First, and most importantly for all licensees, state licenses are not transferable. What this means then is that buyers have to purchase the companies that …

Read Post →

Navigating California Cannabis Leases in 2019

, , No Comment

california marijuana leaseWe’ve previously written about some of the pitfalls for landlords to avoid when leasing to commercial cannabis tenants in California. We’ve also recently discussed some relevant issues for landlords created by the state’s near-final regulations. And we’ve also looked at some of the biggest uncertainties remaining after the state issued those regulations. Now that we have a clearer picture of what the regulatory regime will look like in 2019, here are some issues we’ve encountered in practice that both landlords and tenants should consider before finalizing a commercial cannabis lease in California.

Status of Cannabis Enforcement in California

As of today, the cannabis plant (which includes hemp), including any parts of the cannabis plant and all derivatives therefrom, remains a Schedule I controlled substance that is illegal under the Controlled Substances Act, except to the extent it contains a THC concentration of not more than 0.3% on a dry weight basis (i.e. not psychoactive), in which case it is now legal under federal law thanks to the 2018 Farm Bill. This confusing result follows a year in which the federal government, despite some early drum-beating about a resurgence of the drug war, made clear time and time again that its priorities when it comes to cannabis enforcement are illegal grows on federal land and organized crime. There has …

Read Post →