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FREE Webinar Tomorrow: Oregon Employment Law for Cannabis Businesses

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employment law oregon cannabisOwning a cannabis business can present formidable challenges. Adhering to the OLCC rules can be complex in and of itself, but your business must also comply with an array of state and federal employment laws and regulations.

If you are an OLCC licensed cannabis business with employees, Harris Bricken employment lawyer Megan Vaniman will present a free webinar tomorrow, December 12, 2018 at 12pm PST to help you better understand these issues. Throughout the presentation, Megan will discuss how to navigate employment law for cannabis businesses, and provide you with tips and tricks to ensure compliance. Topics Include:

  • What to consider when hiring
  • Oregon’s sick leave requirements
  • Oregon and Portland’s “ban-the-box” ordinance
  • Final pay checks
  • Independent Contractor vs Employee designation

Moderated by Harris Bricken cannabis attorney Vince Sliwoski, Megan will also address 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-tomorrow-oregon-employment-law-for-cannabis-businesses/…

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CBD Companies Should Prepare Now for Product Liability Claims

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CBD product recall litigationWe counsel our cannabis (and non-cannabis) clients extensively on product liability issues, and have warned them that the federal illegality of their products will not shield them from the same products liability risks faced by companies in other industries. We extend the same warnings to our cannabidiol (CBD) clients, who, if they are operating outside of a state-run cannabis licensing regime, are actually in a position of even greater risk. Lack of regulation in the CBD space is to the detriment of consumers, who often cannot be certain what ingredients the products they purchase actually contain, or whether those products are safe and free of contaminants.

It’s only a matter of time before harmed consumers start suing CBD companies alleging defective, dangerous, or mislabeled products (and Proposition 65 violations). Here are some posts we’ve written about product liability in the cannabis industry, which are highly relevant to CBD companies as well:

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Oregon and Psilocybin: Does the Approved Ballot Measure Language Stand a Chance?

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Oregon psilocybin psychedelic mushrooms

Back in August, I covered the landmark Food and Drug Administration (FDA) drug trial approval for psilocybin, the naturally occurring, psychedelic ingredient found in around 200 species of mushrooms. I speculated that if everything goes well, we could see an approved psilocybin drug hit the market sometime in the next 5 to 10 years. I also mentioned that it’s possible that psilocybin could be legalized in certain states before that, including Oregon. Last month that came one step closer to happening, when Oregon Attorney General approved ballot measure language to legalize psilocybin statewide.

Initiative Petition 2020-12 (the “Initiative”) can be found here, and a link to the Official PSI 2020 Campaign Website can be found here. If you just want to see a summary of the Initiative ballot title as it would appear in 2020, though, we’ve got you covered:

Currently, federal/state law prohibits the manufacture, delivery, and possession of psilocybin (hallucinogen from fungus). Initiative amends state law to reduce most criminal penalties for unlawful/unlicensed psilocybin manufacture, delivery, possession to violations or misdemeanors; retains felonies for large weight of psilocybin and/or some convicted felons. Initiative amends state law to require Oregon Health Authority (OHA) to establish Oregon Psilocybin Services Program to allow licensed/regulated production, processing, delivery, possession of psilocybin, and administration of “psilocybin service” (defined) by

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Breaking: California Bureau of Cannabis Control Publishes Proposed Final Regulations

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california cannabis BCC

Today, the Bureau of Cannabis Control (BCC) published its Proposed Text of Regulations Submitted to Office of Administrative Law for review here. We are still in the process of reviewing everything, but there are enough ambiguities to cause us a good deal of concern, particularly with respect to IP licensing and contract manufacturing agreements.

We are also reviewing the BCC’s responses to comments submitted on the proposed regulations back in early November, of which there are about a thousand pages. We’ll be analyzing the regulations section by section and writing about all of the changes over the course of the next week.

Stay tuned.

Source: https://www.cannalawblog.com/breaking-california-bureau-of-cannabis-control-publishes-proposed-final-regulations/…

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More Banks and Credit Unions Are Working with Cannabis Businesses

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marijuana bank fincen
Slowly but surely, it’s happening for canna businesses.

According to a recent report from the U.S. Treasury Department’s Financial Crime Enforcement Network (“FinCEN”), a growing number of financial institutions are willing to work with cannabis businesses. As of September 30, 375 banks and 111 credit unions were managing marijuana business accounts.

These numbers reveal a steady growth in the number of financial providers willing to engage with the cannabis industry, despite its federal illegality. The report confirms what our cannabis business lawyers have observed over the past few years in Washington, Oregon and California: namely, most of our licensed cannabis business clients are banked, and it isn’t as hard as it used to be to acquire a basic merchant account.

Still, most financial services providers have been reluctant to serve the marijuana industry for years, fearing the federal cannabis prohibition would trigger liability under money laundering laws. Earlier this year, many concluded that banks would refuse to associate with cannabis businesses following the decision by then-U.S. Attorney General Jeff Sessions to retract policy protections for licensed marijuana businesses from federal interference. However, the latest FinCEN report reveals that those fears were mostly speculative.

The American Bankers Association, which recently conducted a survey on the issues faced by banks that are serving cannabis businesses, is advocating for greater legal clarity to …

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Ninth Circuit Agrees with Montana: Employees Can be Fired for Off-Work Marijuana Use

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montana medical marijuana employmentMedical marijuana is legal in Montana. Unfortunately, that does not prevent local employers from terminating workers for legal, off-work use of marijuana in the state.

In 2010, while already employed by Charter Communications, LLC, Lance Carlson was issued a medical marijuana card under Montana Medical Marijuana Act to treat chronic low back and stomach pain. The medical marijuana card allowed Mr. Carlson to legally use marijuana to treat the conditions. In 2016, Mr. Carlson was involved in a work-related motor-vehicle accident. A urinalysis that followed the accident tested positive for THC. Mr. Carlson was promptly terminated as a result of the drug test.

Mr. Carlson initially brought suit against his former employer in Montana state court, alleging the former employer had wrongfully terminated him in violation of the Discrimination Under the Montana Human Rights Act— specifically, that his employer had discriminated against him because of a disability. The case was removed to Federal District Court. Charter Communications quickly moved for a motion to dismiss arguing that the Montana Marijuana Act allowed them to terminate Mr. Carlson for his medical marijuana use. Mr. Carlson appealed the decision to the Ninth Circuit.

The Ninth Circuit, in an unpublished opinion, upheld the district court’s dismissal. The Ninth Circuit specifically relied on the carve-out of Montana’s medical marijuana act that states employers are …

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What Will the California Cannabis Industry Look Like in a Few Years (From the Legal Perspective)?

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california cannabis litigation
We see litigation in the California industry’s future.

Because California’s cannabis regulatory scheme is still in relative infancy, 2018 has looked the same for most operators: applying for annual licenses and waiting (and then continuing to wait) for them to issue or fighting to get temporary license applications submitted before they can no longer be issued. But what happens in two or three years after hundreds or thousands of commercial cannabis licenses have been issued? A host of administrative and civil litigation, probably.

California’s cannabis regulators have immense power that’s not just going to disappear after they issue licenses. The Bureau of Cannabis Control, which regulates a number of different license types, arguably has more police power than the actual police. Section 5800 of the BCC’s readopted emergency regulations, for example, gives the BCC “full and immediate access”, without prior notice, to enter premises, inspect cannabis or vehicles, and copy books and records, and failure of a party to comply with a BCC investigation can be subject to discipline.

Not only do the agencies have broad investigative power, but the subject matter of what they can investigate—all the various regulations that companies have to comply with—is immense. The regulators are not going to sit around and assume that licensees are following the law, the regulations, or even their own …

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What Patients Need to Know about Medical Cannabis and Travel

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With medical cannabis, you’re hoping to get back to living your best life and doing the things you love. For many people, this includes travel. Whether you’re planning an epic road trip or hopping on a transatlantic flight, you’re probably anticipating your next vacation.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/what-patients-need-to-know-about-medical-cannabis-and-travel…

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Types of grow lights for indoor cannabis cultivation

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How do we light our cannabis growing space?

When we decide to set up an indoor cannabis grow for personal use at home, there are many factors to take into account if we want to get the best results, but one of the most important to consider is the type of light and its power consumption.

When deciding on the type of light to use, we must keep in mind that each technology has its different advantages and disadvantages with respect to growing cannabis. Certain types of bulbs will offer the best yield (lumen per watt) but at the same time they are a considerable heat source that can cause problems to many growers, especially those that live in particularly warm climates or are only able to grow cannabis in small spaces.

On the contrary, other types of illumination emit almost no heat at all, although often the high price of this kind of lighting, combined with its lower effectiveness when compared to other systems, combine to make them less popular. They are, however, indispensable to the many indoor growers that can only cultivate cannabis successfully thanks to the low heat emission of these lights.

Kit with cool tube

This lighting kit with air-cooled reflector includes all you need for plentiful flowering


The choice of lighting systems for indoor growing mainly depends on …

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Webinar December 7: Ethically Navigating Local and State Licensing for Cannabis Businesses

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california cannabis CLE ethics

Representing cannabis businesses is fraught with ethical traps. Cannabis businesses require guidance in navigating complex and shifting state and local regulations, and providing that guidance in a federally illegal landscape requires a delicate dance. To learn about and discuss potential pitfalls in representing California cannabis businesses, join us on December 7 at 12pm PST for a webinar entitled “Ethically Navigating Local and State Licensing for Cannabis Businesses.”

At the webinar, attorneys Julie Hamill of Harris Bricken and Ruben Duran of Best Best & Krieger will provide tips on how to traverse the ever-changing landscape of local and state licensing without getting your clients or yourself in trouble. The attorneys will cover changes to the California Rules of Professional Conduct, updates to federal policies and state regulations, and cautionary tales of cannabis attorneys who have found their ethics called into question.

Program Highlights:

  • Continuing tension between state and federal laws
  • Applying the new Rules of Professional Conduct
  • Regional bar association ethics opinions
  • Attorney-Client privilege concerns
  • Public law: conflicts of interest and bribery
  • Real life ethical scenarios

This is an intermediate level program worth 1 MCLE credit in Legal Ethics. Some experience with cannabis law is assumed. Please go here to register!

For more of Julie’s work, please check out the below posts:

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Anti-Competitive Alert? Marijuana Slotting Fee and Pay-to-Stay Contracts in California

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shelf space california cannabis contract
Shelf space is a big deal right now in California cannabis.

With the roll out of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA“), our California cannabis attorneys see all kinds of agreements between and among licensees. From IP licensing to white labeling to distribution contracts, we’re beginning to see people emerge from the shadows and enter into written agreements with each other, which is undoubtedly for the best given the amount of litigation that already exists in the industry and given the amount of fighting that’s sure to come regarding commercial disputes. Lately though, what we’ve seen a lot of are “pay-to-stay” and slotting fee agreements between cannabis cultivators, manufacturers, distributors, and retailers. In these agreements, cultivators, manufacturers and distributors are locking retailers into contracts for dedicated, prime-time shelf space. The question, though, is whether such agreements are kosher in California and what you need to know to have a reliable, enforceable, pay-to-stay contract.

California is still pretty dynamic when it comes to contracts between licensees. Unlike other states, California hasn’t really broached the subject of massive restrictions on contracts between licensees (the lone exception is the most recent of proposed permanent regulations that attacked IP licensing and white labeling between licensees and non-licensees). Other states are very particular about licensees exerting undue influence over …

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A Non-Solicitation Agreement for your California Cannabis Employees? Be Careful!

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Legalized recreational cannabis businesses are still new in California. As a cannabis business owner, you may be thinking that a great way to protect your confidential information and prevent your employees from leaving would be a non-compete agreement. Think again. Not only are non-competition agreements unenforceable and prohibited in California, but they can come with criminal sanctions if an employer requires an employee to enter into a non-competition agreement as a condition of employment. In other words, don’t even think about entering into non-competition agreements with you California cannabis employees.

Many cannabis companies may try another route to protect their confidential business information and get employees to stick around through “non-solicitation agreements.” Non-solicitation agreements are not as restrictive as non-competition agreements and generally are not prohibited by California law. Non-solicitation agreements typically prohibit employees from taking any actions that will cause any employee, customer, or vendor of the employer to change its relationship with the employer. California courts will carefully scrutinize non-solicitation agreements to ensure they are not overly broad and therefore crossing the line from non-solicitation into non-competition. A recent case from the California Court of Appeals demonstrates that the courts are continuing this tradition and carefully examining non-solicitation agreements and only enforcing them if they are true non-solicitation agreements.

california cannabis nonsolicitation noncompete employeeIn AMN Healthcare Inc v. Aya Healthcare Services Inc

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Cannabis Fines and Asset Forfeiture: Supreme Court to Weigh In

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asset forfeiture fine cannabis marijuana

We have handled a number of excessive fines cases on behalf of clients who’ve had their property seized, or threatened to be seized by the government. For some background on this, see our blog posts here and here.

The United States Constitution provides that excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted. U.S. Const., Amdt. 8. The Excessive Fines Clause “limits the government’s power to extract payments, whether in cash or in kind, ‘as punishment for some offense.’” Austin v. United States, 509 U.S. 602, 609-10 (1993). That constitutional protection applies in cannabis cases, just like everywhere else.

On Wednesday, the United States Supreme Court heard oral arguments in the case of Timbs v. Indiana regarding whether the Eighth Amendment’s Excessive Fines Clause is incorporated against the States under the Fourteenth Amendment. The case involves the forfeiture of petitioner’s land rover as punishment for selling heroin. The Indiana Court of Appeal held that the forfeiture of the land rover was grossly disproportionate to the gravity of the offense. The Indiana Supreme Court reversed and concluded that because states are not subject to the Excessive Fines Clause, the forfeiture was not unconstitutional.

The predicted outcome is that the United States Supreme Court will apply the Excessive Fines Clause against the states. …

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Labeling CBD-Infused Foods: Part 2

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cbd label copyright trademark
Start from scratch to avoid infringement issues.

We previously discussed the need for manufacturers of CBD-infused foods and beverages (“Manufacturers”) to comply with the Food and Drug Administration labeling rules. However, such requirements are only one of many issues Manufacturers should worry about. Indeed, Manufacturers should also ensure: 1) that their name as well as their logo/design are not infringing on those of another; and 2) that they hold the right to the Trademarks they intend to display on their labels. This post provides a brief overview of the steps Manufacturers should take to shield themselves from infringement claims.

Trademark and/or Logo Infringement

As we explained before, trademarks are words, phrases, symbols or designs (i.e., logos) that identify the source of a product and help distinguish that product from that of competitors. The very best way to protect your trademark is to register it at the state or federal level.

Logos may also be protected under copyright law. Copyright law protects literary, musical, graphic, or other artistic forms in which an author expresses intellectual concepts. Thus, logos that are adequately original and ornate have a strong chance of being copyright protected, even without registration—though it is in the Manufacturer’s best interest to register its Logo with the U.S. Copyright Office, see why here.

Choosing branding that will …

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Cannabis Events: MJBizCon 2018 and Beyond

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cannabis marijuana events

Thanks to Marijuana Business Daily for hosting MJBizCon 2018 in Las Vegas earlier this month! MJBizCon has separated itself from other cannabis conferences in both quality of content presented and sheer number of attendees. According to the Las Vegas Review-Journal, the conference was projected to draw 25,000 attendees, a 50% jump in attendance from last year. When the dust settled, the event actually surpassed that projection, with Marijuana Business Daily reporting that nearly 28,000 people attended the conference.

Contributing to those solid attendance numbers were several folks from Harris Bricken including attorneys Hilary Bricken, Robert McVay, Alison Malsbury, Megan Vaniman, Tatiana Logan, and Julie Hamill, and paralegals Meghan Saunders, Desiree Andersen, Kait LaPorte and Madeline Williams.

To celebrate the occasion, Harris Bricken hosted a pre-conference cocktail party, “Vegas Magic: A Cannabis Industry Soiree.” The sold-out event allowed our team to meet and mingle with cannabis entrepreneurs attending the conference. There was also a magician to keep the crowd entertained. Thanks to the following businesses for providing SWAG (i.e. “Stuff We All Get”) for the Soiree:

If you missed MJBizCon, or if you attended but still have an appetite for more cannabis analysis, we have good news! Our attorneys are speaking at a number …

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Industrial Hemp Litigation: U.S. Postal Service Loses CBD Delivery Case

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USPS industrial hemp delivery litigation
If only it were so simple!

In January 2018, the United States Postal Service (USPS) seized a package in Denver, Colorado sent by KAB, LLC, a registered, Colorado industrial hemp cultivator. The package contained 1170 grams of cannabidiol (CBD) powder, derived from industrial hemp. KAB appealed USPS’s decision, arguing that the powder was not a controlled substance and therefore should not have been withheld. Administrative Law Judge (ALJ) James G. Bilbert oversaw the appeal and wrote an opinion in favor of KAB.

In his opinion, the ALJ considered whether CBD grown and cultivated from industrial hemp, in line with Section 7606 of the Agriculture Act of 2014 (Farm Bill) was nonmailable as a Schedule I controlled substance. The ALJ observed that marijuana is classified as a Schedule I substance under the Controlled Substances Act (CSA) and that “CBD that is a derivative of the marijuana plant, as defined under the CSA, is non-mailable.” The ALJ quoted USPS, Publication 52, Hazardous, Restricted, and Perishable Mail § 453.31 (Aug. 2017) stating that “[i]f the distribution of a controlled substance is unlawful under [the CSA or related regulation] than the mailing of the substance is also unlawful under 18 USC § 1716.”

The ALJ’s analysis then turned to the Farm Bill, reciting well-known § 7606, which establishes the following:

  • Notwithstanding the CSA, a

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5 Signs You Should Find a Different Medical Marijuana Doctor

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The number of Canadian medical marijuana patients has been growing steadily over the last few years. As medical cannabis becomes more accepted as a treatment, more doctors and patients have become curious about what it can do. New research is showing the medical field more possible uses as well, expanding the number of patients who could benefit from medical marijuana.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/5-signs-you-should-find-a-different-medical-marijuana-doctor…

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Oregon Cities and Counties Continue to Refine Cannabis Rules

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oregon marijuana cannabis clackamas deschutes We always talk about the cannabis industry being dynamic. That’s true from a markets perspective and it’s true from a regulatory point of view. When it comes to regulations in particular, industry observers tend to focus on the big picture developments: e.g., whether marijuana will finally be re- or de-scheduled at the federal level, whether we will get a farm bill legalizing industrial hemp nationwide, or which new states have legalized marijuana. Those broad issues deservedly get a lot of press. However, marijuana business owners are often more concerned about what is going on locally, at the city or county level. In fact, most cannabis business owners get more passionate about proposed changes to local regulations than proposed state- or even federal law developments.

My law firm has worked with regulated cannabis business in Oregon, Washington and California since 2010. I suspect that none of our cannabis business lawyers support extensive local regulation of marijuana (let alone local licensing programs). Because states tend to promulgate extensive regulatory structures, local rules tend to be duplicative and controversial once you get beyond basic land use concepts. That said, cities and counties are often pressed by their citizens to regulate cannabis businesses, and state governments give ample regulatory authority to local jurisdictions– often including the choice to “opt out” of industry participation …

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How to make THCA Crystals & Solventless Sauce

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Why isolate cannabinoids?

In recent times we’ve seen a great increase in the amount of isolated cannabinoids coming onto the market, with CBD crystals and pure THC distillate becoming a more frequent sight on the menus of dispensaries. Their popularity is mostly due to the ease of calculating dosage amounts. While the vast majority of resin extracts have an unknown cannabinoid content, when we isolate a cannabinoid, users can be confident that they have a product with a purity approaching 100%, which makes it very simple to adjust dosage to a specific amount of milligrams. This is particularly important when preparing edibles, tinctures or other products for oral consumption, where knowing the cannabinoid content is vital to avoid any ill effects caused by ingesting too much THC.

Pure Solventless THCA Crystals

THCA Crystals isolated using this method

For the most part, these isolated cannabinoid products are the result of complex processes that employ expensive equipment, volatile chemicals and in-depth, specialist knowledge that are far out of the reach of the average home grower, extraction enthusiast or fan of cannabis concentrates.

THCA molecule

THCA molecule

However, over the last year, new techniques have come to light that enable anyone with a rosin press and some good quality starting material to produce their own isolated THCA, the un-decarboxylated, acid form of THC. It …

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Data Breaches are Coming and Will Wreak Havoc in the Cannabis Industry

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cannabis data breach
Cannabis businesses may be especially vulnerable.

Virtually everyone knows about breaches of companies like Equifax. Massive breaches have happened to established, mega-companies who still took major reputational and monetary hits after they were breached. What many people don’t realize is that it doesn’t take a major breach to devastate a business. We don’t want to be dramatic, but we also don’t want to downplay the significance of breaches—they are coming, and cannabis companies that are not prepared may be left in the dust.

Data breaches can range from anything from malicious hacking to the simple loss of a laptop containing unencrypted “personal information”. In either case, if statutorily defined classes of personal information were accessed or acquired without authorization, the party who held the personal information must provide written notification to the affected individuals within a relatively short period of time, and in many cases to other services like credit monitoring. This may seem like a straightforward process. It is not. Just figuring out what kinds of information may have been accessed and whose information may have been accessed could take tens of thousands—if not hundreds of thousands—of dollars in forensic review.

Take the following example: A human resources manager is the victim of a phishing attack. Typically, forensic review of the affected account may need to be undertaken to …

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Data Breaches are Coming and Will Wreak Havoc in the Cannabis Industry

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cannabis data breach
Cannabis businesses may be especially vulnerable.

Virtually everyone knows about breaches of companies like Equifax. Massive breaches have happened to established, mega-companies who still took major reputational and monetary hits after they were breached. What many people don’t realize is that it doesn’t take a major breach to devastate a business. We don’t want to be dramatic, but we also don’t want to downplay the significance of breaches—they are coming, and cannabis companies that are not prepared may be left in the dust.

Data breaches can range from anything from malicious hacking to the simple loss of a laptop containing unencrypted “personal information”. In either case, if statutorily defined classes of personal information were accessed or acquired without authorization, the party who held the personal information must provide written notification to the affected individuals within a relatively short period of time, and in many cases to other services like credit monitoring. This may seem like a straightforward process. It is not. Just figuring out what kinds of information may have been accessed and whose information may have been accessed could take tens of thousands—if not hundreds of thousands—of dollars in forensic review.

Take the following example: A human resources manager is the victim of a phishing attack. Typically, forensic review of the affected account may need to be undertaken to …

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California Cannabis Landlords: More Regulatory Snags to Avoid

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california cannabis lease
May be required of certain California cannabis landlords.

We’ve previously written about some of the pitfalls for landlords to avoid when leasing to commercial cannabis tenants in California. We’ve also written about how the state’s recently proposed modifications to its final cannabis regulations could affect licensees and the industry writ large (see here, here, and here). The comment period for those rule changes is now over and we expect to see final rules from the state agencies within the next couple of weeks. This post focuses on a few examples of how those proposed modifications would affect cannabis landlords specifically.

One of the biggest proposed changes in the new rules has to do with who qualifies as an “owner” or a “financial interest holder” of a cannabis licensee that must be disclosed and vetted as part of the cannabis operator’s license application. Under the current proposed final rules and existing statutes, all “owners” of a cannabis business licensee must be listed in a licensee’s annual license application, including each owner’s contact information, social security number and tax identification number, employment information, disclosure and description of all past convictions, and a live scan fingerprint analysis for a background check with the Department of Justice. All “financial interest holders” in a licensee business must also be disclosed, though disclosure …

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Tenth Circuit to Decide if Fair Labor Standards Act Applies to Cannabis Businesses

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FLSA cannabis marijuana employment

As we all know, cannabis remains a federally controlled substance, and therefore illegal at the federal level. However, most states have some form of legalization. I have always advised my cannabis business clients to comply with both state and federal laws when it comes to employment laws. It seems to be the safest bet to ensure cannabis companies are not sued by employees for violating federal laws, and it seems to be the smart move in terms of keeps the feds out of their state legalized cannabis businesses.

Recently, a lawsuit arose in the Tenth Circuit challenging whether the Federal Labor Standards Act (FLSA) was meant to provide wage and hour protection to employees of cannabis businesses. In Kenney v. Helix TCS, Inc., the Tenth Circuit will decide whether the FLSA applies to such businesses. The FLSA sets federal wage and hour requirements and sets the standards for when employers must pay employees overtime wages.

In the litigation at issue, Helix TCS, INC. (“Helix”) provides security services to cannabis businesses. Kenney, an employee of Helix, was classified as an exempt employee, meaning Helix did not pay him overtime pursuant to the requirements of the FLSA. Kenney brought suit against Helix claiming he was misclassified as exempt and should have been paid overtime.

Helix moved to dismiss the case, arguing that …

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OLCC Report: Oregon Cannabis Producers in Substantial Compliance

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oregon marijuana OLCC report
Pretty good report for licensed Oregon producers.

On Monday, the Oregon Liquor Control Commission (“OLCC”) released results of enforcement inspections of recreational marijuana producers, which indicate that the majority of inspected licensees are in compliance with Oregon laws and the OLCC rules.

“Operation Good Harvest” was a saturation compliance effort that focused on Oregon’s fall 2018 legal outdoor cannabis harvest. OLCC inspectors were in the field for the past two months and conducted 354 inspections across the state, with an emphasis on southern Oregon, a hotbed of marijuana production, accounting for more than a third of the recreational marijuana licenses in the state.

The OLCC inspected a total of 354 outdoor producer licensees and found that 259, or 73 percent of them did not have any “deficiencies” nor were they likely to commit potential violations. Of the 95 licensees with deficiencies, 41 have potential violations that could lead to the cancellations of their license, which roughly represents 12 percent of the outdoor producer facilities inspected. A more comprehensive overview of the inspection results is as follows:

Region

Inspections Licensees with Deficiencies Compliance Rate

Possible License Cancellations

Statewide

354

95

73%

41

Bend

11

5

55%

2

Eugene

44

9 44%

5

Medford

167

43 74%

22

Portland Metro

102

33 68%

11

Salem

30

5

83%

1

The inspections reflect

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Presenting the DaVinci MIQRO Vaporiser

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Within the cannabis vaporiser market, the portable vaporiser sector is experiencing an enormous growth in popularity. Brands are acutely aware of this and as a result there is lively competition among them to produce compact vaporisers, which are growing increasingly smaller over time, and offering even higher performance.

DaVinci is one of the vaporiser brands that haven’t missed the opportunity to come up with new models in this vibrant portable vaporiser market, so today we present their new gem, the DaVinci MIQRO. This ultra compact portable unit with elegant, discreet and functional design can be purchased on its own or bought together with all its accessories in the complete DaVinci MIQRO Explorer Kit.

The DaVinci MIQRO portable vaporiser is elegant, discreet and functional

The DaVinci MIQRO portable vaporiser is elegant, discreet and functional

The MIQRO vaporiser, the new gem from DaVinci

The DaVinci MIQRO is the result of excellent work by DaVinci, fruit of a design process that has led to a 33% reduction in size of one of its flagship products, the DaVinci IQ vaporizer, and all without any decrease in performance, and even increasing it in some cases.

This new DaVinci portable vaporiser has an elegant design and at the same time great simplicity of operation, with all the functions of the vaporiser being configured with just three buttons located on the right hand …

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Is Your Cannabis “Trademark Use” Merely Ornamental?

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cannabis marijuana trademark ornamentalThe notion of ornamental trademark use is one that many of my clients are initially unaware of when they come to me seeking guidance on how to protect their brands. This is unfortunate, because it’s an important issue to understand in the cannabis industry, where the only federal trademark protection we can obtain is for ancillary goods and services. (See here for the limitations of federal trademark protection in the cannabis industry.) The issue of ornamental use comes up frequently in the context of trademarks for apparel.

The United States Patent and Trademark Office (USPTO) may reject a trademark application if the specimen indicates that the use of the mark is merely ornamental or a decorative feature on the goods and does not function as a trademark to indicate the source of the goods. Here is an example of ornamental use provided by the USPTO:

“[A] slogan prominently displayed on the front of a t-shirt may be considered merely ornamental use and not trademark use. That is, most purchasers of the t-shirts would not automatically think the slogan identified the source of the goods but would view the slogan only as a decoration on the goods.”

Of course, not everything displayed on the front of a t-shirt would be considered ornamental and be ineligible for trademark protection. There are …

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Five Key Documents Necessary to Understand Industrial Hemp Law

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On Thursday, November 30, I’ll be speaking at a presentation hosted by the Seminar Group titled, “The Business of Marijuana in Washington State.” In preparation for this event, I’ve put together a list of materials that I think are vital to understanding the law on hemp-derived CBD (Hemp-CBD). Below is a list of statutes, cases, and other authority that frames the legal status of Hemp-CBD.

industrial hemp cannabisThe Agricultural Act Of 2014 Section 7606 (the 2014 Farm Bill). Any analysis of US policy regarding hemp must the begin with the 2014 Farm Bill. Section 7606 of the 2014 Farm Bill is the starting point of the country’s rapidly expanding Hemp-CBD industry. The 2014 Farm Bill allows states to implement agricultural pilot programs overseeing the cultivation of industrial hemp. Industrial hemp is defined as the cannabis plant with less than .3% THC on a dry weight basis. States that have implemented an agricultural pilot programs are then authorized to issue licenses or permits to individuals and entities who can then cultivate industrial hemp. The 2014 Farm Bill requires a research component. What constitutes research is not defined within the “four corners” of the 2014 Farm Bill. Some states, such as Colorado, Kentucky, and Oregon, have interpreted the 2014 Farm Bill liberally, allowing the commercial sale and distribution of industrial hemp …

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What Is CBD Microdosing?

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As more interest in CBD has led to more research, people have also begun wondering about the practice of microdosing. What is it, and how can it help medical marijuana patients?


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/what-is-cbd-microdosing…

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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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