May 19, 2016 | California Marijuana Laws, Proposed MMJ Law Changes
If Chuck Rosenberg, acting administrator of the U.S. Drug Enforcement Agency (DEA) has time to read Mary Howitt’s little masterpiece, he should know that persistence pays off especially when the other party drops their guard. The medical marijuana impasse has gone on too long for many. Those in favor demand more material for research, while the law enforcement agency will not release its grip.
The legal way to loosen the logjam is to reclassify marijuana down from Schedule 1 to Schedule 2. Elizabeth Warren and other Democratic senators are calling for this to happen with increasing fervor. All eyes are on the DEA who promised a decision ‘in the first half of 2016’. It is another matter whether they will alter their position that the plant is among ‘the most dangerous class of substances’.
Were Warren and her supporters to succeed in a downgrade to Schedule 2, this might extend the sole right of the University of Mississippi to cultivate marijuana for research. The cliffhanger needs seeing in the context of the broader conversation. Perhaps Mr. Rosenberg will take opinion from the 58% of Americans who spoke for marijuana use to be legal late last year.
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Apr 16, 2016 | Marijuana Legalization, Proposed MMJ Law Changes
The National Organization for the Reform of Marijuana Laws NORML has been striving since 1970 to ‘move public opinion sufficiently to legalize the responsible use of marijuana by adults, and to serve as an advocate for consumers to assure they have access to high quality marijuana that is safe, convenient and affordable.’
It has come down hard on two proposals under consideration by California legislators regarding taxing commercial medical marijuana. Briefly, these suggestions are:
– SB 987 – by Sen. McGuire (Healdsburg) seeking to apply a 15% excise tax ON TOP of the prevailing sales tax of 7.5% and more, PLUS local business levies where these apply
– AB 2243 – submitted by Asm. Wood (Headsburg) wanting to impose a cultivation tax of $9.25 PER OUNCE on medical marijuana flowers, $2.75 PER OUNCE on leaves, and $1.25 ON EACH immature plant sold to licensed distributors in the state.
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Mar 14, 2016 | California Marijuana Laws, Collective Operations, Proposed MMJ Law Changes
California (and the rest of the U.S.) seems to have a prevailing reticence to allow anybody to turn an honest profit out of medical marijuana. You can grow your herb and share it with your friends in one or other non-profit arrangement if agreed to by your state. Under the not-for profit model “profits” are not allowed. With new legislation in play, traditional for-profit entities will be allowed to operate MMJ businesses. So what about existing not-for-profits (mutual benefit corporation) that want to transition to a for profit business? Hilary Bricken wrote an explanation for Above the Law concerning how we got into this mess. This set us to thinking about where to go from here.
As states like California realize that by collecting sales tax on MMJ they are de facto recognizing it as a business, the question arises how to migrate a not-for-profit interest to a full-blown company that will sell for a good return once the floodgates open, and the anti-medical marijuana brigade shuts up shop. The problem is you cannot sell something unless you own it.
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Feb 21, 2016 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
Walking into the Sacramento board of equalization(BOE) tax agency on quarterly sales tax day, one might think they were selling medical marijuana themselves. If we went into the back office and saw the overflowing safe and wads of banknotes on the desks, our suspicions could increase, although we would still not be correct.
One of the stranger twists in the tale of medical marijuana in the States, is people wanting to pay their sales tax are unable to do so by direct deposit, EFT, or any other traditional banking method. This is because cannabis is still illegal in any form from a federal viewpoint, and the nation’s banks are wary of being mixed up in a Federal Reserve bust.
This leaves licensed medical marijuana dispensaries – along with growers, distributors and other marijuana-related businesses only one choice. This is to do everything by cash. However, this is not ideal for the Sacramento tax collection agency that was designed to receive checks and electronic payments.
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Feb 14, 2016 | California Marijuana Laws, Marijuana Legalization, Proposed MMJ Law Changes
Federal approval of medical marijuana would be on the 2016 schedule were it not for the nature of the product. With 22 states out of 50, plus Washington DC having made it legal – and Alaska, Colorado, Oregon, and Washington State approving initiatives – simple math would appear to have the day. So why is medical marijuana not on Obama’s agenda for his twilight 2016 session? The man seems personally positive about it.
The potential medical benefits could finally tip the scales, with notable success for stubborn conditions like Alzheimer’s, Epilepsy, Parkinson’s, Type 2 Diabetes, and some types of Cancer responding well in clinical trials. If medical science cannot crack these tough nuts, then why, oh why can’t millions of chronically or terminally ill people have it? Especially since a recent CBS poll found 84% of respondents in favor of medical marijuana useage.
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Jan 22, 2016 | California Marijuana Laws, Marijuana Legalization, MMJ News
When it comes to legal marijuana and setting up the legal entity for a new medical marijuana business, entrepreneurs need to first focus on what is allowed by their respective state. Some states allow traditional LLC or corporate structures while others require a non-profit or “not-for profit” collective or a cooperative, as you can see from the California non-profit collective collective form. Entrepreneurs should also be careful to follow other small details in the guidelines for marijuana related businesses.
No matter which entity you choose, most lawyers recommend some form of incorporate, largely to protect yourself from personal liability for business debts and lawsuits. Yes, you can go it alone as a sole proprietor or run your business as a partnership. But it places additional obstacles in your way. Please also remember that the liability protection of a corporation or LLC does not extend to criminal activities. As such, you are still subject to arrest (particular from a Federal standpoint) although these prosecutions appear to be decreasing.
There are the questions of whether to take on a traditional incorporation or a limited liability company (or LLC). This question is more difficult to answer – both are useful in particular circumstances. Then there is the issue of whether to become a non-profit or a for-profit company. These rules vary by state, sometimes with fairly dramatic differences and other times with only subtle distinctions. It’s best to find the appropriate code section for your state, typically organized under the Secretary of State’s office.
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