Week in Review: RI rec push slows, pushback on California cannabis plan & China opportunity

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By Omar Sacirbey, John Schroyer and Bart Schaneman

Adult-use legislation takes a hit in Rhode Island, California Gov. Jerry Brown’s proposal for cannabis regulation faces opposition, and a marijuana-related firm sets up shop in China.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

Rhode Island rec resistance

Prospects for legalizing recreational marijuana in Rhode Island hit a speed bump this week
MJBizConafter Gov. Gina Raimondo called on lawmakers to…

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CA marijuana distributor to launch ‘institute’ serving small growers

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Flow Kana, a San Francisco distributor that specializes in craft-grown marijuana, shared more details Tuesday about plans to transform a former Northern California wine estate, saying it will build a “cannabis institute” catering to small-batch  MJ growers.

The 80-acre property – the former home of Fetzer Wines – will include testing, processing, manufacturing and retail operations for Flow Kana’s stable of farmers, as well as classes and a bed and breakfast for tourists and…

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Pushback on California proposal to merge rec, medical MJ systems

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A series of proposals from California Gov. Jerry Brown to merge regulations for medical and recreational marijuana have come under fire from some state lawmakers and political stakeholders, throwing the future of the regulatory changes into uncertainty.

Some in Sacramento are now saying Brown’s proposals – which are attached to a budget trailer bill – may not pass muster with the state legislature, according to the Los Angeles Times. Critics, including police chiefs, say the proposed…

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Medical cannabis delivery launches in San Jose, CA, after ban lifted

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Seeking to capitalize on a change in local law, a cannabis delivery company launched an on-demand service to legally bring medical marijuana to patients’ homes in San Jose, California.

San Francisco-based Eaze said that MMJ patients with valid physicians recommendations can use the company’s EazeMD smartphone app to order medical cannabis, The Mercury News reported. The move came after California’s third largest city lifted its ban on home deliveries of MMJ.


Mirth ProvisionsEaze customers in San…

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California cannabis industry lauds governor’s ‘pro-business’ proposals

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California marijuana

By John Schroyer

California marijuana businesses apparently have an ally in the governor’s mansion.

Many in the cannabis industry are applauding a series of overhaul proposals issued Tuesday by Gov. Jerry Brown for his state’s regulatory system, which will begin overseeing cannabis businesses in January.

The proposed changes are expected to cut regulatory red tape and bolster MJ companies’ bottom lines.

They include a provision to eliminate a measure requiring every cannabis company to obtain…

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California gov suggests big changes to new marijuana system

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California Gov. Jerry Brown has issued a series of proposed changes to his state’s upcoming marijuana regulatory system in an effort to reconcile differences between a 2015 medical marijuana oversight law and the new recreational cannabis ballot initiative voters approved last year.

Among the numerous changes Brown put forth were several significant ones that were immediately hailed by the industry as a step in the right direction:

  • Repealing a mandate that would require a local permit for…

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California marijuana laws spark rift between industry, unions

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The upcoming implementation of California’s state medical marijuana laws as well as the new recreational cannabis system have led to policy disagreements between those in the longstanding industry and organized labor, which is eager to get involved.

According to the San Francisco Chronicle, the rift threatens to disrupt what many were hoping would be a smooth rollout next year of California’s dual medical-recreational marijuana governance system. The concern is that unions are jockeying…

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CA bill would bar local cops from aiding federal cannabis crackdown

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A bill introduced in the California legislature by a coalition of Democratic lawmakers would prohibit local police and sheriff’s deputies from aiding in any type of federal crackdown on state-licensed marijuana businesses.

The intent, the bill’s backers say, is to reassure marijuana businesses that they won’t be targeted unfairly by the Department of Justice as long as they comply with state laws, the Los Angeles Times reported.


Spring 2017 MJBizConThe measure again underscores the growing disconnect…

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More legal troubles for marijuana firm Pineapple Express

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Pineapple Express, which provides consulting, financial and real estate services to marijuana businesses, is being sued by three companies that allege the Los Angeles firm owes them nearly $685,000.

The plaintiffs – MSA Consulting, Orr Builders and Prest-Vuksic Architects – charge that Pineapple Express failed to pay for their work designing and building Pineapple Park, a 10-acre cultivation complex in Southern California, The Desert Sun reported.


Spring 2017 MJBizConPineapple Express said the debt…

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SEC charges cannabis vending firm, founder in $12M case

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Federal securities regulators charged a California company peddling marijuana vending machines and its founder with issuing bogus news releases that bragged about phony “record” sales and touted the business as an MJ industry leader.

Much of Medbox’s revenue, however, came from “sham transactions with a secret affiliate,” according to a news release from the Securities and Exchange Commission.

According to the SEC’s complaint, Medbox provided marijuana consulting services and claimed to sell vending…

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Week in Review: Los Angeles marijuana vote, Canada rec rollout & new cannabis standards

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By John Schroyer, Omar Sacirbey and Bart Schaneman

Los Angeles voters approve a groundbreaking marijuana initiative, Canada adult-use legalization may take longer than anticipated, and an influential standards-setting group eyes cannabis.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

L.A. industry now hitched to uncertain city rules

Those outside Los Angeles may not have heard wedding bells for the city’s cannabis industry and local officials, but…

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Oakland expands marijuana license diversity program

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The city council in Oakland, California, expanded a groundbreaking but controversial cannabis business license program that supporters say is needed to help reverse the underrepresentation of minorities in the industry – while opponents charge the plan unfairly excludes other deserving candidates.


Spring 2017 MJBizConThe council first approved the Equity Permit Program in May 2016, stipulating that half the city’s marijuana business licenses would go to people who have been convicted of marijuana-related…

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Crafting an industry: Q&A with California cannabis czar Lori Ajax

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By John Schroyer

Lori Ajax has what may be one of the most influential governmental positions in the legal marijuana industry – chief of California’s Bureau of Medical Cannabis Regulation.

As such, Ajax is positioned to help craft regulations for what will be the nation’s largest medical and recreational cannabis markets when they’re up and running.

The agency she heads will be renamed the Bureau of Marijuana Control, pursuant to a provision in Proposition 64, the ballot initiative California voters approved in November that legalized…

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White House’s words won’t deter rec marijuana states

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By John Schroyer

Despite ominous overtones from the White House, the eight states that have legalized recreational cannabis are proceeding full-bore, whether it’s with existing infrastructures or plans to establish new markets.

Governors and attorneys general responded in unison: They’ll honor voters’ wishes, and conduct business as usual while awaiting specific policies.

The cannabis industry’s future was called into question Thursday when President Donald Trump’s press secretary, Sean Spicer, said “greater enforcement” could…

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Week in Review: White House threat, CA growers at risk & unique cannabis investment fund

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By John Schroyer

The Trump administration hints at possible enforcement on recreational cannabis businesses, thousands of Northern California cultivation jobs are in jeopardy, and a new marijuana investment fund is in the works.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

White House signals potential crackdown

The cannabis industry erupted when the White House press secretary on Thursday intimated the recreational market could be in for a serious fight.

During a news conference, Press…

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Zoning law in CA county puts 3,000 growers at risk

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A new law in California’s Sonoma County that bans commercial cultivation in large areas outside of city limits has created an uncertain future for some 3,000 cannabis growers in that northern California region.

County officials approved the prohibition in December. It took effect Jan. 19, according to the Santa Rosa Press Democrat. The law was implemented in response to complaints against 15-20 commercial cultivation operations in single-family homes.


Spring 2017 MJBizConThe zoning law restricts cultivation to Sonoma County’s agricultural, industrial and…

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San Francisco mulls creation of ‘Department of Cannabis’

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San Francisco would have a “Department of Cannabis” if a member of the city’s Board of Supervisors has his way.

Supervisor Jeff Sheehy – concerned about the “onslaught” when recreational marijuana becomes legal in California on Jan. 1 –  sees the need for a department whose only duty is to oversee the city’s cannabis market, the San Francisco Chronicle reported. He has requested that the city attorney’s office prepare legislation to submit to the Board of Supervisors.


Spring 2017 MJBizCon The proposed agency would regulate recreational…

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Rumblings in CA legislature over marijuana licensing delay

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Many industry observers have doubted the capability of the California state government to meet the January deadline for having a cannabis business licensing system up and running, and now a state senator has broached the topic as well.

Sen. Holly Mitchell, a Los Angeles Democrat, suggested the state delay licensing specifically for recreational marijuana businesses in order to first resolve the issue of how registered companies will be able to pay their taxes and fees without any guarantee of banking services.


Spring 2017 MJBizCon“Does the legislature have…

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Craft marijuana cultivator buys historic CA wine property

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A craft cannabis cultivator has purchased the northern California birthplace of Fetzer Wines, a major American winemaker, and plans to transform the property into a vertically integrated cannabis business.

San Francisco-based Flow Kana bought the 80-acre property and ranch house in Mendocino County, where it plans to start a full-service marijuana company that would include cultivation, processing, manufacturing, and retail sales, the North Bay Business Journal reported.


Spring 2017 MJBizConThe purchase price for the Redwood Valley property wasn’t disclosed….

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Another California town may allow huge marijuana grow

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The central California hamlet of Hanford, just south of Fresno, may become the state’s latest cash-strapped municipality to find refuge in the immense tax benefits from the cannabis industry.

Town leaders are reportedly “inching toward” permitting one of the largest indoor cannabis cultivation operations in the state, according to the Fresno Bee, signaling that more MJ businesses are finding allies in small burgs that view the industry as an economic driver.


Spring 2017 MJBizConPurple Heart Patient Care, a medical cannabis company based in the San…

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Week in Review: Contaminated medical cannabis, CO workplace safety & Ohio’s tech search

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By John Schroyer, Omar Sacirbey and Bart Schaneman

Tainted medical cannabis is suspected in a California cancer patient’s death, Colorado creates a workplace-safety guide, and Ohio is in the market for a seed-to-sale tracking system.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

More liability lawsuits?

The potential for costly lawsuits over defective – and possibly dangerous – products remains an overlooked legal aspect for businesses in the growing cannabis industry.

That threat…

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L.A. County to shutter 70 dispensaries, extend cannabis ban

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The Los Angeles County Board of Supervisors agreed to reaffirm an ongoing ban on cannabis businesses of all types and to close roughly 70 dispensaries that are operating unlawfully in unincorporated parts of the county.

The situation may change early next year, after statewide regulations for California’s medical and recreational marijuana industries are put in place. But, for now, the county has asked the local district attorney’s office to shutter all illegal MMJ storefronts, City News Service reported.


Spring 2017 MJBizConAlthough the county could…

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Santa Ana dispensaries sue alleged unlicensed dispensaries

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A group of licensed medical marijuana dispensaries in a Southern California town have sued unsanctioned outlets to prevent them from selling cannabis.

The Santa Ana Cannabis Association filed the lawsuit targeting 14 unlicensed dispensaries in Santa Ana. The suit alleges the dispensaries are operating illegally, ignoring local safety codes and undermining the licensed businesses, according to the Orange County Register.


Spring 2017 MJBizCon The licensed dispensaries are seeking an unspecified court judgment, as well as an injunction to close the unlicensed…

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The marijuana industry’s many faces: Q&A with California Minority Alliance co-founder Virgil Grant

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The marijuana industry’s many faces: Q&A with California Minority Alliance co-founder Virgil Grant – Marijuana Business DailyThe marijuana industry’s many faces: Q&A with California Minority Alliance co-founder Virgil Grant – Marijuana Business Daily

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Week in Review: Marijuana industry trademarks, cannabis banking & Oregon rec sales

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By Omar Sacirbey, John Schroyer and Bart Schaneman 

A prominent marijuana pipe maker sues to defend its trademark, another state seeks Trump’s guidance on MJ banking, and adult-use cannabis sales continue to drop in Oregon.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

Trademark rights

Roor might be the Gucci of marijuana paraphernalia.

Both the German glass pipe maker and the iconic Italian handbag label purvey high-end products, are counterfeited ruthlessly and have sought aggressively to…

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San Diego, San Francisco delay cannabis implementation

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San Diego and San Francisco, two of the most populous cities in California, moved to delay cannabis-related businesses.

The San Diego City Council on Tuesday unanimously extended a moratorium on recreational marijuana retailers until December, and the San Francisco Board of Supervisors approved temporary restrictions on indoor marijuana cultivation until the city approves permanent zoning restrictions.


Trump ReportThe moratorium in San Diego, California’s second-most-populated city, was set to expire this weekend, but councilors said they would need…

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IL state treasurer asks Trump for clarity on MMJ banking

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Illinois’ state treasurer has joined California’s in requesting guidance from the new administration of President Donald Trump on banking regulations regarding its medical marijuana industry.

The California treasurer in December sent a letter to Trump noting that the refusal by many banks to work with state-legal cannabis companies could pose a serious threat to public safety in coming years, as well as create issues related to tax collection.


Trump ReportIllinois Treasurer Michael Frerichs has voiced similar concerns, the Associated Press…

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California marijuana business owners in legal fog as they await statewide rules

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By Bart Schaneman

The absence of statewide medical marijuana regulations following passage of California’s recreational cannabis ballot measure has put existing MJ business owners in legal limbo, making it tougher for them to operate their companies and plan for the future.

Some of these businesses, for example, are finding it difficult to determine what’s legal and what’s not.

Entrepreneurs also are unsure how to properly structure their businesses to comply with Proposition 64 (the measure that legalized recreational cannabis) and…

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High-end cannabis pipe maker sues to defend trademark

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Roor, one of the best-known names in cannabis smoking utensils, has filed almost 200 lawsuits since 2013 to protect its trademark against smoke shop and convenience store owners in California, Florida and New York for allegedly selling counterfeit products bearing the company’s name.

The German company and its American licensee, Sream of Corona, California, hold U.S. Trademark No. 3675839 to protect its fashionable pipes and bongs sold with the Roor mark – the company’s name with the second “r” capitalized and facing backward,…

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California MJ regulators promise timely licensing for industry

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A pair of top state cannabis regulators delivered a promise this week to those in California’s enormous marijuana trade: They will be on schedule and have a formal state permitting system up and running by January 2018.

That was the word out of the state capital on Wednesday, after cannabis executives and growers met with Lori Ajax, the head of the California Bureau of Medical Cannabis Regulation, and Amber Morris, a branch chief of CalCannabis Cultivation Licensing (a division of the state department of food and agriculture).


Precision Extraction SolutionsPursuant to…

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CA wine, cannabis industry officials to meet in joint symposium

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California wine industry leaders plan to meet with counterparts in the marijuana business in a bid to examine their similarities and opportunities for collaboration as the state rolls out its new adult-use cannabis market.


Precision Extraction Solutions According to the North Bay Business Journal and a news release, the Wine Industry Network will host a one-day symposium on Aug. 3 in Santa Rosa featuring wine and cannabis industry experts who will discuss regulations, licensing requirements, hospitality, tourism, farming and other topics. 

The gathering comes amid…

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Week in Review: Sessions’ sleight of hand, scofflaws in CA & risky business in NY

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By John Schroyer, Bart Schaneman and Omar Sacirbey

Attorney general nominee Jeff Sessions plays his cannabis-enforcement views close to the vest, dispensaries sidestep California’s adult-use law, and an L.A. marijuana company attempts a risky rescue in New York.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

Sessions hints at future enforcement

The likely next attorney general of the United States hinted at what may be to come for cannabis businesses during his first day of confirmation…

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High Times leaving longtime NYC base for Los Angeles

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High Times magazine announced plans to leave New York City – where it has been headquartered for 43 years – for Los Angeles by the end of April.

The reason for the move?

“The center of the cannabis universe has moved to California,” said Matt Stang, High Times’ chief revenue officer, according to Crain’s New York Business.


Precision Extraction SolutionsHigh Times employs about 30 people at its Manhattan office, but it’s unclear how many of them will move to Los Angeles, where the magazine also plans to hire local staff.

The magazine has been buoyed by the…

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New Market: California awaits regulations before unleashing huge industry

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This is the seventh article in a series looking at the potential cannabis market in each of the eight states that approved recreational or medical marijuana initiatives in the 2016 election. Check back each week through mid-January for new entries. Click here for previous installments.

By Bart Schaneman

California’s recreational marijuana market has the potential to dwarf all others as long as workable statewide regulations are ironed out, municipalities allow adult use and legal businesses can supplant the state’s thriving black…

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Report: CA dispensaries illegally selling rec cannabis

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Some California dispensaries are skirting the law and selling recreational cannabis to non-medical customers, according to the Orange County Register.

The newspaper reports that since voters legalized adult use last November, dozens of retail outlets throughout the state are allowing customers to purchase cannabis with little more than a driver’s license – versus a doctor’s recommendation, which California’s medical marijuana law has long required.


Trump Special Report The stores are deeming themselves “Proposition 64 friendly,” according to the…

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San Diego MMJ dispensaries could sell rec cannabis under proposal

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Following last month’s passage of Proposition 64, San Diego has proposed allowing the city’s 15 medical marijuana dispensaries to sell recreational cannabis once it becomes legal in California in January 2018.

The city is the only one in San Diego County that has signaled it intends to permit adult-use sales, the San Diego Union Tribune reported.


Marijuana Business License Directory San Diego officials issued their proposal last week. It came about after dispensary owners urged the city to allow them the first crack at recreational licenses. The city’s planning…

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L.A. dispensary group abandons ballot measure, supports city’s

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A group of Los Angeles medical cannabis dispensaries has formally disavowed a ballot initiative it had gotten qualified for the March 7 municipal election in order to support a parallel ballot measure put forward by the City Council.

Both initiatives would establish a regulatory framework for the marijuana industry in Los Angeles, but for the sake of working hand-in-hand with public officials, the UCBA Trade Association has announced it would campaign in favor of the council’s measure.


Marijuana Business License Directory“Because our initiative qualified, that put a…

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L.A. cannabis businesses face regulations, uncertainty with new ballot measures

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By John Schroyer

“Trust us.”

That seems to be the Los Angeles City Council’s message to cannabis businesses, given that a new regulatory ballot measure approved by the council for March includes few details on how the industry will be governed.

The types of business licenses – from dispensaries to cultivators to testing labs – aren’t spelled out in the initiative. It also doesn’t address areas such as delivery or certain aspects of cultivation and manufacturing.

That ambiguity is disconcerting to some in the Los Angeles…

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CA treasurer forms group to address federal banking rules

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California’s state treasurer has assembled a group to address the problems caused by banks’ refusal to deal with marijuana businesses, following up on his state’s legalization of recreational cannabis in the Nov. 8 election.

State Treasurer John Chiang also sent a letter to President-elect Donald Trump and included members of California’s congressional delegation asking for help to fix the problem, according to the Los Angeles Times.


Marijuana Business License DirectoryIn the letter, Chiang pointed out that the divide between federal and state rules causes issues for…

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Week in Review: 5 business takeaways from the landmark election

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By Omar Sacirbey and Bart Schaneman

Now that voters in seven additional states have legalized recreational or medical marijuana, business leaders and political observers are bullish about the potential for industry growth.

They point to greater opportunities through interstate expansion, increased investor interest in cannabis and greater innovation in technology and business strategies.

“People should feel good about these victories and the opportunities that legalization brings,” said Kris Krane, managing partner of 4Front Advisors, a…

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Election Updates: Live coverage of marijuana measures across the country

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2016 cannabis elections

Marijuana Business Daily is providing live updates on cannabis ballot measures and related news (all updates in Eastern time).

2:30 a.m. Wednesday (Arizona, Maine, Montana): Three states with marijuana initiatives still hang in the balance, with Arizona’s rec measure on the ropes, Montana’s initiative well ahead and Maine’s adult-use measure a coin flip.

Here are the latest results from those three states:

Arizona: 48% “Yes,” with 82% of the votes reported

Montana: 56% “Yes,” with 63% of the votes reported

Maine: 50.5% “Yes,”…

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Week in Review: Ohio’s MMJ plan may shortchange growers, a California win & a legal brouhaha

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By Omar Sacirbey, John Schroyer and Bart Schaneman

Ohio issues draft rules for medical marijuana growers, a federal judge tosses a lawsuit against a Bay Area dispensary, and a raid by law enforcement in Northern California triggers a legal spat.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

Ohio growers: ‘Too few, too small’

Cultivation professionals mulling whether to apply for a license in Ohio have some information to work with now that that state has released draft regulations for…

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San Jose latest California city to temporarily ban rec cannabis

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San Jose, the third-largest city in California, on Tuesday joined the list of municipalities statewide to slap a temporary ban on adult-use cannabis businesses before Election Day.

San Jose has joined other California cities in imposing temporary bans and controls on recreational marijuana in advance of Tuesday’s election, when California voters will decide whether to legalize rec cannabis.


Conference Deadline ApproachingSan Jose City Council members said they passed the temporary ban to give local officials time to draft marijuana business regulations and to head off…

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L.A. council to ask voters to legalize more MMJ dispensaries

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The Los Angeles City Council took a big step toward creating possibly the largest legal cannabis market in the United States, if not the world.

The council voted Tuesday to develop a March ballot measure asking city voters to repeal a 2013 ordinance that both bans medical marijuana businesses and grants “limited immunity” from prosecution to 135 dispensaries, L.A. Weekly reported.

The move was proposed by Council President Herb Wesson, whose  measure is called the Cannabis Enforcement, Taxation and Regulation Act. If voters give a…

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CA cities pass temporary bans, controls on rec cannabis

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California cities across the Bay Area and the state are scrambling to impose temporary bans and controls on recreational cannabis ahead of Tuesday’s statewide vote on legalizing adult-use marijuana.

Polls show the state favors legalization. Cities, in response, are taking preemptive moves. San Jose is considering adopting an emergency ordinance to ban the use of non-medical marijuana, a move intended to give local officials time to decide whether and how to regulate adult-use cannabis, according to the Mercury News.


Conference Deadline ApproachingThe law would also…

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California dispensary ruling ‘great’ for marijuana industry

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A federal judge in San Francisco has tossed out the last remaining forfeiture action filed against a medical marijuana business in California.

The action, filed against Berkeley Patients Group three years ago by the U.S. attorney’s office in Northern California, was dismissed with prejudice on Tuesday, said BPG’s attorney, Henry Wykowski.

That means the DOJ will not be able to bring the case again, which equates to total victory for the dispensary.


Conference Deadline Approaching“This is good for BPG, but significantly overall this means we have now successfully…

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Chart: California medical marijuana sales skyrocket 132% since 2010

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This is the third in a series of charts featuring data on California’s medical cannabis market. Marijuana Business Daily will publish additional charts in this series every other Monday until mid-November. You can view the first chart here and the second one here. 

By Eli McVey

Medical cannabis sales in California have soared over the past five years, rising from a reported $351 million in 2010 to nearly $814 million in 2015, according to exclusive data obtained by Marijuana Business Daily.

Much of that growth occurred in 2015, with…

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CA dispensary wants tax payment labeled a ‘contribution’

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The owner of a California medical marijuana grow and dispensary is proposing to pay $1.3 million in back taxes to the city of San Jose, but with a caveat – the money must be classified as a “contribution or collection of membership fees,” not as taxes.


Conference Deadline ApproachingDavid Armstrong, the owner of MediMarts in San Jose, hasn’t paid the city’s 10% business tax in four years, claiming that doing so would put him in violation of state and federal laws. Paying taxes would be tantamount to admitting that they sell marijuana, Armstrong and his lawyers…

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Week in Review: San Diego crackdown, WA eyes organic MJ & Britain says yes to CBD

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By Bart Schaneman and John Schroyer

San Diego targets illegal dispensaries while educating consumers about legit operations, Washington State has an eye toward organic certification, and Britain gives CBD the medicinal green light.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

San Diego: First of many crackdowns?

San Diego has teamed with a coalition of licensed medical cannabis businesses to crack down on illegal MMJ storefronts and, perhaps more important, to educate consumers about which…

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Poll: Majority of Americans favor rec marijuana legalization

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As five states prepare to vote on legalizing recreational marijuana in November, a new Pew Research Center poll shows the majority of Americans favor legalization.


Conference Deadline ApproachingAccording to Pew, 57% of Americans say marijuana should be legal, with 37% opposed. Ten years ago the numbers were flipped, with 60% saying it should be illegal and 32% in favor of legalization. The latest poll was conducted Aug. 23-Sept. 2 among 1,201 U.S. adults.

Half the states have legalized marijuana in one form or another, and three more will vote to legalize medical…

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