Recent Posts

New Oregon Cannabis Rules: Part 4 – Industrial Hemp

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hemp oregonIn the three previous entires to this series (here, here, and here), we have discussed the major changes in the packet of rules amendments that the OLCC adopted at the end of 2017. Those changes cover promotional events, lender disclosures, and canopy size changes for marijuana grows. Today, we want to talk about the new rules for industrial hemp.

Industrial hemp regulation has been going through a series of rapid shifts since 2016, when the Oregon legislature adopted a two-tier system that allowed for the registration of industrial hemp growers (producers) and handlers (processors). At the time, only hemp handlers could sell industrial hemp products. This changed last year, when Governor Kate Brown signed into law SB 1015, which allows industrial hemp to enter into the recreational cannabis supply line.

Just before the new year, the OLCC adopted amendments to its administrative rules on cannabis that implemented SB 1015, providing much needed guidance on the new hemp regime. First and foremost, the term “industrial hemp” refers to any cannabis plants with a THC concentration below 0.3 percent, mirroring the definition under federal law. Hemp growers and handlers can apply to the OLCC for an industrial hemp certificate ($500 per year, plus a $250 application fee) to transfer hemp to recreational processors, and handlers can also receive …

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Exploring the Pros and Cons of Cannabis Vape Cartridges

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For those still on the fence about vape pens, the question may arise each time you walk into the dispensary: Flower or vape? The past or the future? The familiar or the new? The answer’s easy, get both!

While nothing will ever completely replace flower for the true cannasseur, a vape pen is a great addition for anyone looking to add something new to their repertoire. With the abundance of brands and cartridges available in nearly all dispensaries there has never been a better time to try them out.

For those flower children still questioning whether or not to switch up their routine, here are the pros and cons of vape pens.

Pros of Vape Pens

Did you know that vape cartridges are one of the fastest growing sectors of the legal cannabis industry? With sales growth of up to 400% in some markets, vaporizers are beginning to become the favorite product among many consumers. Let’s take a closer look at what makes vape pens so appealing to consumers:

Discretion

As adept as we all became at “ninja smoking” in our teens, we never mastered full invisibility. While palming your glass piece and sparking up into your cupped hands may have seemed stealthy at the time, the flame of the lighter and the plume of smoke …

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State Legal Cannabis in 2018: Who’s Next?

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virginia, new jersey, oklahoma, michigan marijuana

Last week, we were pleased to cover Vermont’s big move to legalize cannabis state-wide, effective July 1. The Vermont effort was impressive for a couple of reasons: 1) it became the first state to legalize adult-use (recreational) cannabis through the legislature; 2) its cannabis bill passed just days after Jeff Sessions announced Department of Justice rescission of the Cole Memorandum; and 3) Vermont is an east coast state, contiguous to populous New York and freewheeling New Hampshire. (The latter state also has been looking hard at adult use cannabis.)

With 2018 not long underway, it is likely that we will see at least a few other states break away from prohibition and adopt some form of cannabis legalization this year. Today, we identify four states with the best opportunities to make some noise, notwithstanding Attorney General Jeff Sessions’s feckless attempts to formally resuscitate the failing war on drugs. These four states would add to the nine with approved recreational use programs, and the 28 with medical cannabis programs.

Before we dive in, it is important to note that 26 states offer initiative and/or veto referendum rights to their citizens. If a state is not on this list, the odds of cannabis legalization are probably longer in that jurisdiction. This is because state legislators outside of Vermont have typically been …

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Cannabis Startups 101: The Sessions Effect on Company Financing in 2018

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marijuana investment venture capital
More room for cannabis-specific funds and investors.

Investor interest in the cannabis industry was at an all-time high in 2017 in anticipation of full legalization in California in 2018. The number and dollar figures of deals were up, and packed houses at our investment forums in San Francisco and Los Angeles served as anecdotal evidence of the same. The exponential expansion of available funds was set for 2018, when the institutional capital—venture capital (VC) and private equity funds—were preparing to allow future funds to invest in the cannabis industry. These funds would primarily invest in “ancillary businesses,” but the ripple effect of all that available capital in the industry would have meant more for direct operator cannabis businesses as well.

President Trump’s election did little to slow the enthusiasm throughout 2017, as investors took at face value the words of then-candidate Trump, who claimed to be “in favor of medical marijuana 100%” and to think adult-use “should be up to the states, absolutely.” Further, prior to Senate confirmation, his Attorney General, Jeff Sessions, apparently assured Senator Cory Gardner of Colorado, among others, that he would not interfere with the Cole Memorandum or states implementing their own regulatory systems for adult use cannabis.

The timing of the Sessions Memo—coming immediately after California’s legalization took effect—appears to …

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3 Medical Marijuana Clinics in the GTA

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If you’ve decided to pursue medical marijuana as a health care option, the next decision to make is where you’re going to get your healthcare from. There’s more to medical marijuana than just purchasing it. You want more than a dispensary. You want a total health clinic that gives you expert medical advice from doctors who understand medical marijuana treatment and the best strains to use for your medical condition. 


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/3-medical-marijuana-clinics-in-the-gta…

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Pinene: A terpene that can improve your memory

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What is Pinene?

  • Name: Pinene, alpha-pinene, beta-pinene
  • Formula: C10 H16
  • IUPAC name: (1S,5S)-2,6,6-trimethylbicyclo[3.1.1]hept-2-ene
  • Molar mass: 136.24 g/mol
  • Boiling point: 155-156ºC
  • Appearance at room temperature: Liquid, almost insoluble in water

Pinene is a bicyclic monoterpene widely found in the resin of many plant species, from conifers (pine trees, spruces) to non-conifer plants like wormwood, rosemary, sage, heterotheca or cannabis. Two isomers are found in Nature, called alpha-pinene (α-pinene) and beta-pinene (β-pinene), which can be found in substances like pine resin, turpentine or camphene and are also used by many insects to communicate. Pinene is also a common terpene in a large number of cannabis strains, being highly appreciated by many users for its beneficial properties.

Molecule of alpha-pinene

Molecule of alpha-pinene

Indeed, many cannabis varieties contain considerable amounts of pinene in their trichomes, a terpene that – as we’ll se next – has numerous therapeutic properties (especially the α-pinene isomer). Furthermore, pinene is also widely used in the industry (selective catalytic oxidation of pinene produces compounds used to make cosmetics and fragances), while the beta isomer is used to synthesize myrcene, one of the most popular terpenes.

Synthesis of pinene

If we take into account the vast number of plant species containing pinene, we can state that it is doubtless one of the most abundant terpenes in Nature. Both the …

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The Best Way To Grow Super Lemon Haze Marijuana

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Image of cannabis used to make Super Lemon Haze

Want a cannabis strain whose flavors reflect its namesake? Want a lemony-sweet/tart experience with a psychoactive kick? Yeah, you do! Give Super Lemon Haze marijuana a try. Wait, what’s that? Your local dispensary doesn’t sell this tasty variety? No worries. Just grow your own!

That’s right, growing your own marijuana is a very real option these days. Countless companies across the internet sell specialized equipment (grow lights, soil, fertilizer, etc.) for just this purpose. You can even assemble most of your supplies from your local hardware store. It’s just that easy.

But once you have all the supplies, how should you go about using them? The experts at Honest Marijuana have been growing the finest organic marijuana for years, and we’re ready to pass our knowledge and experience on to you. In this article, we’ll reveal the best way to grow Super Lemon Haze marijuana so you can get the most yield out of this popular cannabis strain.

The History Of Super Lemon Haze

Super Lemon Haze was first produced by Green House Seeds. It won first prize in the 2008 and 2009 High Times Cannabis Cup and another first prize in the 2010 IC420 Growers Cup, so you know it’s gotta be good. Sure, it’s not the strongest belle at the ball (as you’ll see in the section below), …

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Rights, Opportunities, and Responsibilities of Municipalities Regulating Cannabis: The Video

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In case you missed our December webinar on the “Rights, Opportunities, and Responsibilities of Municipalities Regulating Cannabis,” please find it below.

Stay tuned in the coming weeks for replays of our California MAUCRSA webinar and our cannabis litigation webinar, the remaining presentations in last month’s lunch-time series.

Enjoy!

Source: https://www.cannalawblog.com/municipalities-webinar/…

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The C Corporation Tax Election: It’s Easy!

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Just check the box!

The Tax Cuts and Jobs Act (“the Act”) is effective beginning January 1, 2018. The Act made dramatic changes to prior federal tax law. The most significant changes were: 1) the reduction of the corporate tax rate, and 2) a new 20% deduction for individuals and other non-corporate taxpayer’s operating a business. Previously, we have outlined the income tax consequences of operating as C corporation vs. operating as a partnership. (See our posts HERE and HERE).  Because the law is effective in 2018, all cannabis businesses should review the tax consequences of being classified as a C corporation vs a partnership at this time. Fortunately, a business has an opportunity to change how their business is taxed by making an “Entity Classification Election.” This post outlines some of the opportunities and pitfalls in making this election.

The New Landscape on Choice of Entity

The Act lowered the corporate tax rate to 21%. However, a corporation and its shareholders are still subject to double taxation.  Dividends paid are taxable; and the highest marginal rate on dividend income is 23.8% (capital gain rate of 20% plus net investment income tax rate of 3.8%). Accordingly, the top rate for operating in corporate form is 44.8%.

In contrast, the marginal tax rate for a partner in a cannabis related …

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Indoor, Outdoor and Greenhouse Cannabis: What’s the Difference?

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Legal cannabis sales have afforded customers the ability to choose from many forms of marijuana – edibles, topicals, concentrates, and so on – and in states like Oregon, those options include choices between indoor, outdoor, and greenhouse grown cannabis, too. But how exactly does the result differ between the three types of marijuana? The answer may surprise you.

The Truth About Outdoor Cannabis

Cannabis is designed to withstand variable conditions to flourish for generations (in other words, it grows like a weed), and has evolved all sorts of traits to help it withstand environmental stressors: quick grow periods, beautiful accessory coloring, sturdy stock, and so on.

But marijuana’s fantastic ability to evolve and adapt to its environment has also brought with it some unfavorable consequences. For example, stressed female cannabis plants may produce seeds to protect the next generation, and a quicker growth period or weather fluctuations may result in lower trichrome content when grown outdoors.

Outdoor cannabis may also be lacking in aesthetics (buds won’t be as pretty) which is due to a few factors. First, marijuana grown outdoors will stretch as it grows because of the abundant light and ample space which results in fluffier weed instead of those dense nugs you see in connoisseur magazines. Likewise, large harvest sizes produced by outdoor grows …

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California Cannabis Legislation: What’s Next?

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california marijuana legislation
Quite a bit, in California.

Ever since Californians voted in favor of the Adult-Use of Marijuana Act (a/k/a Prop 64), everyone has been looking to see how the regulated cannabis industry will develop in California. Last April, California’s state cannabis regulatory agencies (the Bureau of Cannabis Control, Department of Food and Agriculture, and Department of Public Health) released their medical regulations. Those regulations, issued under the Medical Cannabis Regulation and Safety Act (MCRSA), were in place for a little over two months before they were withdrawn when the state legislature passed the Medicinal and Adult-Use Cannabis Regulation Safety Act (MAUCRSA) in June of 2017. In November, California released its emergency regulations under MAUCRSA, which set out the rules for cannabis cultivators, manufacturers, distributors, laboratories, and retailers under the same regulatory regime.

Finally, on January 1st, 2018, California opened up its market to commercial cannabis businesses. So where does that leave us today? Last week I attended a meeting for members of the California Cannabis Industry Association in Sacramento where a lot of time was focused discussing the legislative landscape and priorities for California in 2018. There are a number of cannabis bills on the legislative agenda in 2018. Here are four to keep your eye on:

  • Assembly Bill 1578: Introduced by Assemblyman Reginald Jones-Sawyer, this bill would

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Marijuana Banking in the Wake of Jeff Sessions’s Policy Reversal

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marijuana cannabis bank
For now, banks are still taking that cash.

On January 22, the National Association of Cannabis Businesses (NACB) hosted a symposium on cannabis banking and finance in Washington, D.C. The NACB is an interesting group. It isn’t quite a lobbying organization like the NCIA. Instead, it views itself more as a standard-setting organization that wants to make sure that its members follow certain standards. The thinking is that by setting up industry self-regulation, members are seen in a generally positive light, and states and federal regulators are less inclined to promulgate the most draconian regulations possible. The symposium brought together lawyers from large and small firms, accountants, Canadian attorneys, and a few practitioners. In the wake of Jeff Sessions’s withdrawal of the Department of Justice’s prior guidance statements on marijuana enforcement, confusion continues to reign regarding whether financial institutions and institutional investors are going to view the cannabis industry different now than they did last year.

Attorneys from large law firms like Jones Day, Cadwalader, and Davis Polk all gave financial presentations. While they all don’t take cannabis business clients, the fact that those firms would even participate at an event hosted by a cannabis-focused group confirms that they, along with other large conservative organizations, are prepared to jump into cannabis as soon as federal legalization happens. More and more …

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Suffer from Chronic Pain? Visit Aleafia’s Total Health Clinic in Vaughan

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Approximately 1.5 million people suffer from chronic pain in Canada each year. It’s defined as pain that lasts for longer than 12 weeks, though it can continue for months or years. If you suffer from chronic pain and live in or near Vaughan, then visit Aleafia’s Total Health Clinic to learn how medical cannabis can help treat your pain.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/suffer-from-chronic-pain-visit-aleafias-total-health-clinic-in-vaughan…

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S5 Haze

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S5 Haze, this is the fella we’re talking about that’s slipped the net for most stoners – particularly in the US. Not only is it rare to find some for sale, but you’re also unlikely to come across a lot of people growing it. Why is this the case? Quite simply, it’s because S5 Haze […]

The post S5 Haze appeared first on LIWTS.

Source: https://www.liwts.org/strain-reviews/s5-haze/…

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How to Read a Cannabis Patent

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Previous posts have discussed cannabis patents, here, and here, and here. Today I explain the basics of how to read a patent. Why would you want to do such a thing? If you are in the cannabis business, you may own a patent, or be threatened of infringing one. The tips below will give you a good start on understanding what a patent means.

Today I focus on utility patents, which are about 90% of all patents. (The other major category is design patents.) Utility patents can cover such things as cannabis plants, or methods of making cannabis plants. Utility patents have four basic parts: introductory material, drawings, the specification, and the claims. To read and understand a patent, you should be be familiar with each of them.patent marijuana cannabisUnsurprisingly, the introductory material is at the beginning of the patent. It starts out with the patent number, the date the patent was issued, the inventor(s), and the assignee — if there is one. It also provides the filing date of the patent, which is usually several years before the issue date. The next important part is the “references cited,” a list of prior art that the patent examiner looked at. There is also a short “abstract,” a sort of summary of the invention, often followed one or two …

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California’s Plan for Changes in Federal CBD Law

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marijuana CBD california
When it comes to CBD, California is thinking ahead.

Earlier this month, the California Legislature passed Assembly Bill 710, which will amend certain sections of the Business and Professions Code and the Health and Safety Code to account for any future changes in federal law regarding cannabidiol (CBD). The purpose of this bill is to ensure that patients are able to obtain access to CBD as a medical treatment as soon as federal law makes it available.

Under existing California state law, and pursuant to the California Uniform Controlled Substances Act, controlled substances are placed into one of five designated schedules, with the most restrictive limitations placed on controlled substances in Schedule I, and the least restrictive limitations placed on controlled substances in Schedule V. Cannabis, despite the passage of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), is still on Schedule I in California. Because CBD is a compound contained in cannabis, it is likewise designated as Schedule I.

Because of this designation, the prescription, furnishing, possession, sale, and use of CBD is restricted by existing law. AB 710 would, if one of certain specified changes in federal law regarding CBD occurs, deem a physician, pharmacist, or other authorized healing arts licensee who prescribes, furnishes, or dispenses a product composed of CBD in accordance with federal …

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California Recreational Marijuana Rules: What You Need to Know

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On January 1st, 2018, California officially began its adult use marijuana regulations. The outpouring of customers exceeded expectations and has since been performing as well as expected. Even though there is much to celebrate, it’s important to understand the new rules and regulations that went into effect. Many benefit public safety and provide supervision to a market that is currently lacking.

While these are just the first wave of rules, it’s best to familiarize yourself with what’s changing in California.

What to Expect in California

California now allows adult use cannabis sales and consumption so, every dispensary is recreational now, right? That is, for now, not the case. Though, it is slowly inching towards being the case.

A combination of city regulations and state licensing issues halted the sales of most dispensaries in some major cities. This included medicinal dispensaries needing to submit applications for adult use sales.

What to Expect in California
The cannabis market is in for a wild ride in California, and it has only just begun.

San Francisco waited until January 8th. Outside of a few locations in the area, Los Angeles dispensaries waited on licenses until January 19th. Meanwhile, some cities like San Jose were ahead of the curve and found themselves open for business on day one.

Expect to see more dispensaries open their doors as licenses …

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Employee Handbooks for Cannabis Businesses

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employment cannabis marijuana
One of the most important books your cannabis company can have is an employee handbook.

The cannabis industry continues to grow. Each year we see additional states legalize recreational marijuana. Along with more legalized weed, comes more cannabis employees. And more employees means more employment litigation.

We recently hosted a litigation webinar where I spoke about employment litigation and ways to protect your marijuana business. One of the tools I mentioned was documentation. When it comes to that, one of the most important documents your cannabis business can have is an employee handbook. This is true whether you have one employee or 100.

An employee handbook plays many roles. This post will discuss some of the more important reasons to have a comprehensive employee handbook.

Communication and Orientation

An employee handbook serves as an important communication tool between employees and employers. A well drafted employee handbook will contain a mission statement, along with the values, goals, and expectations of the company and its employees. This communicates a sense of belonging to employees and provides them with an understanding of the goal they are working towards achieving.

The handbook will also communicate the benefits to which employees are entitled as cannabis business workers (free pot is not one of them). A good handbook will explain to employees can question about company …

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Los Angeles Priority Dispensary Applicants: No Changes Allowed

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california marijuana cannabis L.A.
Prop M priority applicants need to sit tight — for now.

We’ve received a lot of questions from existing City of L.A. dispensaries regarding whether or not they can make any corporate entity, location, or “ownership” changes before submitting their Prop M Priority Applications to the Department of Cannabis Regulation (DCR) pursuant to the Prop M ordinances. With MAUCRSA allowing for for-profit operations, many Prop. D dispensaries now desire to  leave behind the old “cooperative/collective” model and many want to leave their current locations for better digs. However, the DCR has made clear (at least to us based on our communications with them) that it likely will not honor or recognize those Prop. D dispensaries wanting to amend their business tax registration certificates (“BTRCs”) to reflect new corporate entities, “owners”, managers, or locations. Here is the rundown on key issues:

  1. Converting to a For-Profit: MAUCRSA provides that commercial cannabis businesses can organize as for-profit companies. The issue Prop. D dispensaries are facing is that their past BTRCs (certain ones of which are necessary for priority processing under Measure M) will not match their new for-profit entities where most Prop. D dispensaries are already some form of non-profit. The DCR has relayed that it will most likely not accept your application if the new entity does not

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Can’t Sleep? Learn How Medical Cannabis Can Help

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Everyone has nights where they can’t sleep. Sometimes, it’s because your mind is racing and can’t calm down. Sometimes, it’s because your body is full of energy you didn’t spend during the day, and sometimes, it just happens for no reason you can discern. For most people, these sleepless nights are rare. But for an estimated 3.3 million Canadians, those kinds of nights are the norm because they suffer from insomnia.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/cant-sleep-learn-how-medical-cannabis-can-help…

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7 fast flowering cannabis strains

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Sometimes, you may not be sure about which cannabis strains to purchase for your next grow. Your personal taste and circumstances will greatly determine your decision, so while some of you may be looking for high yields or certain effect, others may prefer strains resistant to moulds or with the shortest possible flowering period.

In many occasions, the path followed by breeders to develop their genetics is similar, looking to fix certain traits in the offspring. Thus, today we’ll present a list of strains known for their early flowering trait. As you’ll see next, all varieties listed here have a bloom period no longer than 8 weeks, something that – on the other hand – doesn’t question their quality at all.

Some cannabis strains complete their bloom cycle really fast

Some cannabis strains complete their bloom cycle really fast

Fast flowering cannabis varieties

We’ve carefully checked our category of fast flowering strains – which includes some of the fastest varieties in our catalogue of marijuana seeds – and have chosen the following list, which includes genetics that do not take longer than 8 weeks to be ready to harvest. Of course, and as you can see by checking that category, there are many other strains sharing this trait. We have chosen these 7 plants because we’ve tried them and we know they represent a very good balance between …

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Cannabis Equity Programs: Updates from Oakland and San Francisco

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As most everyone now knows California’s statewide licensing and regulatory regime for medical and adult-use cannabis businesses took effect on January 1st of this year. However what readers of our Canna Law Blog know is that every jurisdiction is free to decide whether to regulate or prohibit cannabis businesses within their border. It’s the state’s deference to cities and counties that make our California Cannabis Countdown series so popular. Not only are local jurisdictions regulating what types of cannabis businesses they’ll allow, but also WHO is eligible for a cannabis license.

california cannabis marijuana
Oakland and San Francisco are trying to even the balance.

In many of California’s major metropolises local legislators have made it a priority to enact social equity programs. The goal behind many of these social equity programs is clear: the war on drugs disproportionally affected communities of color and as a just society we need to right that wrong. In the Bay Area both Oakland and San Francisco have enacted legislation that stresses the importance of social equity programs.

We previously covered Oakland’s regulatory regime here but as a quick refresher Oakland’s ordinance requires that half of all cannabis businesses permits are issued to equity applicants. Oakland defines an equity applicant as an individual that:

  • Is an Oakland resident; and
  • Has an annual income at or less

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The Southern Oregon Marijuana Initiative

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oregon marijuana cannabis
Local grower tax: good idea?

The regulation of state-legal cannabis differs from any other commodity. One of the more interesting and consequential differences is the degree of autonomy and control that states tend to give local jurisdictions (cities and counties) with respect to commercial cannabis activity. Local jurisdictions are often allowed to tax cannabis sales, for example; to license marijuana businesses; and to opt out of marijuana activity altogether. This is different than what is allowed or accepted with standard commodities (think: apples, flowers or chewing gum), or even with restricted commodities (alcohol, tobacco or lottery tickets). The reason that local jurisdictions have such wide latitude regarding marijuana is simple: federal prohibition.

Along these lines, the Association of Oregon Counties (AOC) recently offered an unusual proposal for the local regulation of cannabis. The proposal is called the “Southern Oregon Marijuana Initiative” (the “Initiative”) and it would amend Oregon statutes to allow the five most economically distressed Oregon counties to impose a marijuana production tax on licensed growers, in order to fund law enforcement efforts vis-à-vis the local black market. (For some background on the Oregon cannabis black market, and Oregon’s cannabis oversupply issue, see our coverage here).

The Initiative follows an attractive logic model. It observes that the counties at issue have suffered tremendous fiscal hardship since …

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CBD Beauty and Skincare Products in California’s Shifting Regulatory Landscape

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marijuana CBD cannabis
CBD and skin care: it’s complicated.

As I read this week’s Forbes article titled, “Cannabis Could Be The Most Profitable Ingredient In Skincare, If The U.S. Government Allows It,” it felt like déjà vu. Legislators, law enforcement, lawyers, and cannabis business owners have been going in circles for years now trying to figure out how, exactly, CBD products fit within the current state and federal regulatory structure. But despite the potential legal ramifications of violating the Controlled Substances Act (CSA), CBD companies, particularly those manufacturing beauty and skincare products, are cropping up everywhere and expanding rapidly.

We wrote a few months ago about Target, which pulled a line of CBD products from its website after a BuzzFeed article calling out the sales. And even Forbes, which stated that “A Sephora executive who asked to remain anonymous confirmed the beauty giant has plans to launch at least one CBD-based skincare brand this year,” was unable to reach anyone at Sephora for comment. These large companies have legal counsel who are undoubtedly cautioning them against venturing into the realm of cannabis and CBD; such high-profile sales of CBD products would be an easy target for federal enforcement.

Because we’ve been getting so many inquiries on this topic in California and elsewhere from companies that are unsure whether or not they need a …

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Marijuana Prices in Seattle and Washington: Fall 2017 Update

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Washington’s cannabis industry has been a wild ride thus far, full of ups and downs and everything in between. To keep you in the loop, we’re back at it with another installment of Washington pricing information. Of course, we couldn’t bring you this information without the help of our friends at BDS Analytics, who expertly collect and organize point of sale data from dispensaries across the state. Be sure to visit their site and explore their wide variety of business intelligence and consumer insight resources. Now, who’s ready to check out some pricing trends?

Marijuana Prices in Washington: Fall 2017

Between July 2014, when recreational cannabis sales started in Washington state, and October of 2017, dispensaries have sold 373,000 pounds of flower/bud and have generated $1.1 billion from the category. Flower sales have steadily grown in Washington state as the continual decline of retail prices have helped boost demand and likely lured customers away from the illicit market. Despite continued growth in the category, the overall contribution of sales from flower has declined as other categories have outperformed the growth of flower sales.

The highs and lows of flower pricing in Washington are amongst the most dramatic BDS Analytics has witnessed in any legalized market over the years. Since July of 2014, the average price for …

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Oregon’s Marijuana Minor Decoy Results: Not Great, But Not Terrible

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Oregon marijuana cannabis
Better than booze is not good enough.

On January 10, Oregon’s cannabis regulatory body, the Oregon Liquor Control Commission (“OLCC”), sent out a notice to its listserv titled “Licensees Across Oregon Fail to Stop Sales to Minors.” The notice details the results of a series of minor decoy tests that the OLCC conducted between December 20, 2017 and December 29, 2017. Admittedly, the results are not great:

  • Dec. 20 – Eugene/Springfield – 16/19 passed – 84% compliance
  • Dec. 21 – Keizer-Salem – 18/23 passed – 78% compliance
  • Dec. 21 – Portland – 3/7 passed – 43% compliance
  • Dec. 28 – Central Oregon – 5/5 passed – 100% compliance
  • Dec. 29 – Southern Oregon – 8/12 passed – 67% compliance
  • Total – 50/66 passed – 76% compliance

The email notice was accompanied by a quote from Steve Marks, the Executive Director of the OLCC: “These overall results are unacceptable. One of the basic tenets of Measure 91 is the protection of children by discouraging their use of marijuana. Oregonians who voted for legalizing recreational marijuana implicitly told the cannabis industry to abide by public safety laws. Clearly they’re not, and we need to continue this type of enforcement activity.”

These results generated quite a bit of bad press for the Oregon industry, but we should take a moment to take a …

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Why Chronic Pain Patients Are Turning to Medical Cannabis

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Chronic pain is something that many people suffer from. It’s defined as pain that lasts for longer than 12 weeks, though it often lasts for months or years. Many people who suffer from chronic pain have injured themselves or are suffering from an illness where pain is a side effect. However, sometimes chronic pain occurs for no obvious reason.


Source: http://www.medicinalmarijuanaassociation.com/medical-marijuana-blog/why-chronic-pain-patients-are-turning-to-medical-cannabis…

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The Importance of Homogenization in Cannabis Products

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Marijuana homogenization is a tricky subject. In fact, it refers to two topics that overlap in ways. The threat of big business’ influence is a topic we’ve discussed at some lengths and will cover more soon. However, this is about the need for a slightly different homogenization, the process which ensures uniformity across a produced product. One does play into the other. Yet, this homogenization affects cannabis in an entirely other manner.

Customers Deserve What They Buy

Homogenization is standard in many grocery products including milk, cheese and fruits. In cannabis, that is not the case just yet. Recent events make the topic worthy of discussion once again though as alarming news about inconsistent marijuana products has continued to come in over the past few months. One blind test of 84 CBD products sold by 31 companies revealed that only about 31% actually contained the amount of CBD listed on its label. Even the top strains in the world are turning up void of cannabinoids.

The industry needs product homogenization. Without it, consumers, the market and its perception could be at stake.

When a customer buys a CBD product, they expect to receive treatment that is in-line with what is described on the label. The same can be said for the top strains in the industry. However, as recent …

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California Commercial Cannabis Leases: Planning in a Time of Uncertainty

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marijuana lease california
Leave yourself some room to maneuver with that cannabis lease.

The year 2018 began with a mixed bag. California, the nation’s most populous state and its most powerful economic engine, finally began issuing licenses to medicinal and adult use commercial cannabis businesses under the state’s new regulatory regime. Days later, the Attorney General issued a memorandum rescinding the 2013 Cole Memo enforcement guidelines, despite indicating to the contrary several months prior. There has since been bipartisan backlash against Mr. Sessions’ decision, and there are now numerous legislative proposals in congress as to how the federal government will move forward with respect to cannabis.

In the meantime, property owners still have to plan for the future, whether that means deciding how to use their property, or whom to rent commercial space to and under what terms. Operators and landlords alike are uncertain what to expect: on the one hand, state governments are issuing cannabis licenses freely; on the other, the federal government is telling its prosecutors to pursue any and all of them as they see fit–  regardless of any state’s laws. One strategy for approaching all this uncertainty is by building early termination contingencies into the lease. Below are a few of many contingencies that commercial cannabis landlords and tenants alike should consider including as part of a potential …

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Vermont Legalizes Cannabis!

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Congratulations to defiant Vermont!

Yesterday, Vermont Governor Phill Scott signed a bill into law legalizing marijuana. Vermont has become the first state to legalize recreational marijuana through its legislature. Alaska, Colorado, California, Maine, Massachusettes, Nevada, Oregon, Washington, and Washington DC all legalized the recreational use of cannabis through voter initiative. Vermont also becomes the first state to legalize after Jeff Sessions rescinded Obama-era guidance on federal enforcement in states with legal marijuana and issuing his own memo. The new law goes into effect on July 1, 2018.

Vermont’s bill is also unique in that it is noncommercial. It does not create a regulated market (yet) or a tax structure for cannabis sales. The bill simply makes it legal to possess and grow small amounts of marijuana. This is similar to the legal framework regarding recreational cannabis in Washington DC.

The Vermont legislature summarizes the intent of the bill as follows:

It is the intent of the General Assembly to eliminate all penalties for possession of one ounce or less of marijuana and two mature and four immature marijuana plants for a person who is 21 years of age or older while retaining criminal penalties for possession, dispensing, and sale of larger amount of marijuana.

Individuals in Vermont who possess marijuana or marijuana plants in excess of these restrictions

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Cannabicyclol (CBL) – A cannabinoid in need of investigation

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What is Cannabicyclol?

  • Name: Cannabicyclol
  • Formula: C21 H30 O2
  • IUPAC Name: (1aR- (1a alpha, 3a alpha, 8b alpha, 8c alpha)) – 1a, 2, 3, 3a, 8b, 8c-hexahydro-1,1,3a-trimethyl-6-pentyl-1H- 4-oxabenzo (f) cyclobut (cd) inden-8-ol
  • Molar mass: 314.469 g/mol

Cannabicyclol, also called CBL, is one of the least known and studied cannabinoids in the cannabis plant. Although it is commonly found in many varieties, in particular those with a higher content of CBC (Cannabichromene), the amount of CBL produced in trichomes is always very low, so it doesn’t usually receive the attention given to other, more plentiful compounds of the plant with a much more noticeable presence, such as THC, CBD or CBN.

CBL or cannabicyclic molecule (Photo: Wiki Commons)

CBL or cannabicyclic molecule (Photo: Wiki Commons)

One of the main characteristics of CBL is the absence of psychoactivity in its effect, which is why it is not listed in the Convention of Psychotropic Substances. In fact, CBL shares its formula with many of the other phytocannabinoids produced by cannabis, even with psychoactive compounds, although it differs slightly – as in the other cases – in its structure, in the ordering of the atoms that make up the molecule, meaning that its effects vary enormously. For example, THC or tetrahydrocannabinol (the main psychoactive cannabinoid of cannabis) and CBL differ mainly in the absence of double …

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Marijuana Prices in Portland and Oregon: Fall 2017 Update

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The Beaver State is well on its way to becoming a cannabis powerhouse. With their cannabis industry becoming more and more developed every day, Oregon is a great spot to immerse into marijuana culture and everything that comes with it.

To help you gain a better understanding of the cannabis market in Oregon, we’ve teamed up once again with our friends at BDS Analytics to provide you the latest point of sale data. BDS Analytics is an industry-leader in cannabis data and expertly aggregate information from dispensaries across the state.

Without further ado, let’s get to it!

Marijuana Prices in Oregon: Fall 2017

From January 2015 to October 2017, Oregon’s cannabis dispensaries have generated slightly over $1 billion in sales. 59 percent of these sales came directly from flower/bud, with revenues of $594 million from the category. In 2017, flower’s dominance started to slowly decline as the regulatory environment for cannabis stabilized in Oregon and other product categories enjoyed uninterrupted growth. While flower sales remain dominant in Oregon, flower contributed just 51 percent of sales year-to-date, as growth in other categories including concentrates, edibles and topicals all outpaced flower.

In October of 2017, the average price for a gram of flower in Oregon’s adult-use market was $7.97 (pre-tax), 10 percent lower than in January of …

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California Cannabis Licensing and Labor Peace Agreements

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marijuana california employment union
Labor Peace Agreements can save you from strikes.

We recently hosted a webinar discussing cannabis disputes and litigation. Over 1,000 people signed up to learn about the different types of litigation that can occur, how to avoid disputes, and, if necessary, how to prevail when litigation is unavoidable. During the presentation, I covered employment litigation and received quite a few questions. Several people were curious about labor peace agreements in particular, which are an important topic for the California cannabis industry. Because we ran short of time during the webinar, however, I will address those agreements here.

California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) requires adult use cannabis and medicinal cannabis licensees with 20 or more employees to provide a statement that the applicant will enter into, or demonstrate that it has already entered into, a labor peace agreement. In other words, once your business reaches a certain size, you will not be able to operate in California without a labor peace agreement. But, what is a labor peace agreement?

In short, a labor peace agreement is an agreement your cannabis business enters into with a union that represents cannabis workers. The agreement includes obligations for both the union and the cannabis employer. This types of agreements are highly specialized.

As a preliminary matter, the cannabis …

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Top Ten Legal Myths Around California Cannabis Legalization

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Even though licensing under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) has launched in California, the process has been relatively anticlimactic. With the “transition period” and temporary licenses in play, we’re basically seeing the same gray market collectives (from retail to cultivation) enter the California cannabis marketplace without much fanfare while other unlicensed gray market collectives stay open and operating. There’s been a lot of confusion around continuing the collective model over the next year, whether (and when) the state will actually start consistently enforcing its regulations, and whether the Sessions Memo means an imminent chilling period for California’s industry as a whole. Some of these issues will only be addressed by the passage of time, but others can be cleared up now (see here, here, and here for our MAUCRSA FAQ posts).

California Marijuana Question and Answers
Myth busting California cannabis law and regulations.

In turn, here are, in my opinion, the top ten legal myths surrounding California legalized cannabis industry:

  1. The current collective model gets to rage on for the next year. Not entirely true, as we have covered elsewhere on this blog. The collective model created by a 2008 state attorney general memo and eventually addressed by SB 420 gets to live on until January 9, 2019 (if you didn’t get it, the Bureau of Cannabis

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