Nov 7, 2016 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
The Proposition 64 Ballot is on November 8, 2016. Stripped of the hyperbole, voters have a choice of saying ‘Yes’ or ‘No’ to the following proposal.
– Legalize marijuana under state law for use by adults 21 or older
– Impose state taxes on sales and cultivation
– Provide for industry licensing and standards for marijuana products
– Allow local regulation and taxation
– Receive additional tax revenues, mostly for specific purposes
– Reduce costs of criminal justice
That’s a broad palette to give to politicians. MMJ Info decided to dust off the crystal ball and figure out what they will do if, and we think likely voters approve.
Benefits for Consumers from Legalized Marijuana
Adults will be free to grow, purchase, transport, and possess a small but significant amount of marijuana for personal use without requiring a medical script. There are however still some limitations.
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Oct 30, 2016 | California Marijuana Laws, Proposed MMJ Law Changes
Since Gov Jerry Brown appointed Lori Ajax as his marijuana mogul, the rules for California medical cannabis are fleshing out. Lori brings an impressive profile to the party. She has a Bachelor’s in Criminal Justice and ten years commercial experience before entering the administration in 1995. Before assuming her current position, she was Chief Deputy Director (yep these things exist) since January 2014.
The primary purpose of the rules, due to implement in 2018 when regulations are in place, is to protect patients, the public and the environment, according to Lori Ajax. “If you are engaged in commercial medical cannabis, you need a license,” she told a meeting hosted by the Bureau of Medical Cannabis Regulation.
The Current Situation Largely Speaking
The industry has been pretty much frontier country since Proposition 215 appeared in 1996. This “Compassionate Care Act” exempted patients and defined caregivers who possess or cultivate marijuana for medical treatment, recommended by a physician, from criminal prosecution, but had not much else to say about how the industry was supposed to behave. This opened the door to the good, the bad, and the ugly who did things their own way.
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Oct 12, 2016 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
California’s medical marijuana extractors can rest a little easier, now that Gov. Jerry Brown signed Assembly Bill AB 2679 into law on September 29. This “exempts collectives and cooperatives that manufacture medical cannabis products from criminal sanctions for manufacturing medical cannabis” until January 2018 when formal regulations take effect.
During this bridging period, extractors must follow stated manufacturing requirements and possess valid local permissions. Assembly Bill AB 2679 describes the two permitted extraction methods as follows (the underlining is ours):
Permitted Medical Marijuana Extraction Methods
“(A) Utilizes only manufacturing processes that are either solvent-less or that employ only nonflammable, nontoxic solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).
(B) Utilizes only manufacturing processes that use solvents exclusively within a closed-loop system that meets all of the following requirements:
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Oct 4, 2016 | California Marijuana Laws
Medical marijuana is now legal in over twenty states plus the District of Columbia. Washington, Colorado, Alaska and Oregon have agreed adults may enjoy it for the pleasure it provides. There is an opportunity for credit unions to make money from shopkeepers and producers, at least as long as commercial banks refuse involvement.
But there is a catch to work around. The devil is in the detail of a document issued by the Financial Crimes Enforcement Network under Guidance 2014 G001. In summary, the document says prosecution of financial institutions, including credit unions lending money to marijuana businesses may be appropriate, if they interfere with any of the following Congress priorities, and we quote:
- Preventing the distribution of marijuana to minors;
- Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs and cartels;
- Preventing the diversion of marijuana from states where it is legal under state law in some form to other states;
- Preventing state-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity;
- Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
- Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use;
- Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands;
- Preventing marijuana possession or use on federal property;
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Sep 10, 2016 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
When Nevada medical marijuana patient S. Rowan Wilson stopped by a gun seller in late 2011, he thought his license would be a cakewalk of the non-edible kind. Unfortunately for him, the merchant was aware of an open letter the Bureau of Alcohol, Tobacco, Firearms and Explosives posted to federal firearms licensees on September 2011 that year. He refused the purchase because Wilson was a marijuana user which he technically was at the time. It would take another two years for the Silver State to regulate medical marijuana.
The gist of the ATFE open letter reads:
“[A]ny person who uses or is addicted to marijuana, regardless of whether his or her State has passed legislation authorizing marijuana use for medicinal purposes, is an unlawful user of or addicted to a controlled substance, and is prohibited by Federal law from possessing firearms or ammunition.
Such persons should answer “yes” to question 11.e. on ATF Form 4473 . . . and you may not transfer firearms or ammunition to them. Further, if you are aware that the potential transferee is in possession of a card authorizing the possession and use of marijuana under State law, then you have “reasonable cause to believe” that the person is an unlawful user of a controlled substance.
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Aug 9, 2016 | California Marijuana Laws, Collective Operations
One of the most common questions we get is “What does it cost to open a medical marijuana dispensary?” This is really a tricky, almost impossible question to answer. It is possible to give ball park estimates but even these can be hard to pin down. To cast a broad net, let’s say $50K at the lowest end to $1M+ for a high end sleek retail location.
Opening a storefront dispensary typically comes at a relatively high cost, especially when compared to a cultivation operation or delivery service (where you can start small and expand as necessary). The location is the biggest factor to consider and what tenant improvements/upgrades are needed. Also, with applications becoming so competitive, you may need to hire a professional consulting team to better your odds – this alone could cost above $50K (depending on location complexity of the application). The stakes are higher with a storefront and you could lose out if you open in the wrong place (and don’t plan properly).
The Major Expenses, and How to Manage Them
– Legal Compliance The Medical Cannabis Regulation and Safety Act created a spider’s web of things to do before the first joint or edible slides across the counter. We recommend you find an experienced consultant to help you.
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