• Dreaming of an Oregon-California Cannabis Exchange
    Yesterday, we received a call from Congressman Earl Blumenauer’s office here in Portland, Oregon. The purpose of the call was to discuss an idea to deal with the oversupply of marijuana in the state sanctioned Oregon market. Specifically, the idea was to explore the possibility of an interstate compact with California, where Oregon would sell its excess cannabis to the Golden State, much like Oregon has sold its excess renewable energy over the years. Unfortunately, we don’t think it’s a great idea. Could a west coast cannabis exchange really work? We have been writing about the oversupply issue for a while (see here and here). Recently, oversupply has also begun to receive a surge in media coverage (see here, here and here). To be sure, we have a ton of clients who have been affected by depressed cannabis prices lately: These clients include not just farms but processors and retailers who are struggling to move product and cover costs, let alone turn profits. This predictably has resulted in fair bit of industry consolidation as of late, and we have been buying and selling cannabis businesses nonstop for a while now. Various approaches have been suggested to deal with the oversupply issue in the regulated Oregon market. These approaches include having the state legislature cap the issuance of licenses, like Washington, or having the Oregon Liquor Control Commission (OLCC) curtail maximum allowed canopy sizes. To date, neither approach has gained any traction. Instead, policy makers are simply watching the market attempt to sort itself out, which means watching a significant number of operators to fail, while others are swept up by out-of-state and even international investment. So why don’t we think an interstate compact with California is a great idea? There are a few different reasons. The first is that California has plenty of cannabis in its own right: It just needs to recalibrate regulations that are currently seen as too restrictive to allow most small and mid-sized operators to enter the regulated market. The second reason is that California’s adult use program is too new: The state will almost certainly wish to keep and grow its own legal cannabis, rather than import product from Oregon while a black market thrives. But the biggest reason of all may be that an interstate compact, while exotic, is legally and politically hazardous. For 22 years and over the course of four consecutive administrations, the federal government has taken a general posture of restraint as states have promulgated medical and then recreational cannabis programs. There are ... read more
    Source: Canna Law Blog – OregonPublished on 2018-04-24
  • Industrial Hemp: Oregon and Interstate Sales
    So it goes with Oregon hemp. In the past six to twelve months, we have seen an extraordinary increase in businesses and individuals interested in growing and processing industrial hemp. This is especially true in Oregon, where Department of Agriculture (ODA) grower and handler registrations are fast, cheap and easy to acquire. In many cases, these registrants are cultivating and processing hemp in order to create cannabidiol (CBD) based products. The products can be sold state-wide without limitation, including into the Oregon Liquor Control Commission (OLCC) adult use marijuana market via hemp-endorsed OLCC processors. Other entrepreneurs, in Oregon and elsewhere, are extracting CBD for sale interstate. This is a legally nebulous area at the federal level, although interstate sales are not prohibited under Oregon law. With CBD isolate changing hands at upwards of $4,500 per kilo, however, and given the proliferation of CBD products making their way into big box retail, many businesses and individuals feel the risk is worth taking. Perhaps for this reason, we have been getting numerous weekly inquiries as to the viability of CBD sales interstate, especially as of late. From a state rules perspective, Oregon has taken significant steps in the past several months in building out its industrial hemp regime. We wrote about the recent OLCC rules promulgated in December, which allowed for ODA hemp registrants to sell into the OLCC market; and more recently we wrote about House Bill 4089, which tied up a number of loose ends related to the tracking of those sales. The upshot of all of this is that we now have unprecedented interplay between the OLCC and ODA markets. And as the OLCC hustles to write rules implementing HB 4089, there is a fair bit of confusion about what is actually allowed. One question that keeps coming up is whether an OLCC processor applicant may process ODA hemp (under both ODA and OLCC rules) while waiting to receive its license from OLCC. According to our reading of the rules, recently confirmed to us by OLCC, the answer is “yes.” Much in the way that marijuana growers used to attempt to “squeeze in” a medical marijuana crop pending their OLCC inspection and licensure, ODA hemp processors can float their operations by processing industrial hemp while in line with OLCC. Note that this is allowed even for ODA processors that are not seeking a hemp endorsement in their OLCC processor applications. Of course, ODA, local fire marshals and other state or local actors may place limitations on hemp processing operations, or ... read more
    Source: Canna Law Blog – OregonPublished on 2018-04-20
  • Week in Review: Pennsylvania flower sales, Oregon’s cannabis surplus & MassRoots’ big losses
    Pennsylvania’s medical cannabis dispensaries get the OK to sell flower for vaping, Oregon’s marijuana glut is hurting the state’s smaller growers, and MassRoots reveals that its losses widened to $44 million in 2017. Here’s a closer look at some notable developments in the marijuana industry over the past week. Positive in Pennsylvania The announcement that […] Week in Review: Pennsylvania flower sales, Oregon’s cannabis surplus & MassRoots’ big losses is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs ... read more
    Source: MMJ Business DailyPublished on 2018-04-20
  • Oregon Cannabis Wage and Hour Basics: Final Paychecks
    There are no shortage of employment laws related to cannabis businesses. Cannabis businesses, as part of a highly regulated industry, have a lot of rules to follow. In addition to state regulatory rules, cannabis businesses have to follow a multitude of other state and federal laws specific to employment. Among these, the subset of wage and hour laws are particular, fact-specific, and can be some of the most difficult to comply with. Unsurprisingly, even the most sophisticated of cannabis business owners may be unaware of some of the more obscure wage and hour laws. When it comes to cannabis employment matters, one of the questions I see most frequently relates to final paychecks. Like many states, Oregon has complicated laws surrounding final paychecks. Knowing the requirements and complying with them to a T can save money and expensive litigation. And we have definitely seen a recent uptick in cannabis litigation related to employment (see our posts on recent filings here and here). To begin, timely payment of final paychecks in Oregon depends on how the employment relationship was separated. If an employer terminates an employee, or the employment relationship is terminated by mutual agreement, the final paycheck is owed at the end of the first business day after the termination. This means that if you plan on terminating someone, have payroll prepared to issue a check immediately. If, on the other hand, an employee quits with at least 48 hours notice, the final paycheck is owed on the employee’s last day of employment. This may seem harsh, and it can definitely create some logistical headaches, but there is little wiggle room on this statutory requirement. If an employee quits without 48 hours notice, things are a bit easier on the employer’s side. The final paycheck is due within five business days, or at the next regularly scheduled payday, whichever is sooner. If the employee’s time records are required to calculate the amount owed, and they are unavailable, the employer must pay the employee what it reasonably believes is owed. If the employee later provides the time records, the employer must issue payment for any remaining amount owed within five days of receipt of the time records. Failure to timely pay a final paycheck comes with strict and hefty penalties. Penalty wages begin from the due date of the final paycheck. Penalty wages are calculated as the employee’s regular hourly rate for eight hours per day until paid or until legal action is commenced.  Penalty wages are tricky and continue even ... read more
    Source: Canna Law Blog – OregonPublished on 2018-04-17
  • 11 reasons why marijuana should be legalized for medical use
    Beyond all kinds of political discussions or user rights, seeing cannabis as a medicine can bring (and even change) the The post 11 reasons why marijuana should be legalized for medical use appeared first on Oregon Cannabis Connection. ... read more
    Source: Oregon Cannabis ConnectionPublished on 2018-04-16
  • BREAKING: Colorado Senator Says Trump Agrees to Support States’ Legalization
    It seems the president has changed his mind and a deal has been struck. ... read more
    Source: The Weed BlogPublished on 2018-04-13
  • Nipping Bud Rot in the Bud: Stop Crop Loss Before it Starts
    For indoor growers, limiting humidity is one of the easiest ways to avoid problems with bud rot. ... read more
    Source: The Weed BlogPublished on 2018-04-13
  • White House Ponders Allowing States to Drug Test Food Aid Recipients
    Now the Trump administration is considering a plan that would allow states to require mandatory drug testing. ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • After Seven Years Behind Bars for Two Joints, Bernard Noble is Free
    Noble became a national symbol of the country’s, and Louisiana’s, harsh drug laws and minimum mandatory sentencing. ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • Cannabis Trademarks have arrived in California – #ProtectYourStash
    As of Jan. 1 2018, cannabis businesses may register their marijuana related trademarks in 2018 ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • The Evolution of Cannabis Science Part 1
    Part one discusses Cannabis science evolution, how it's illegality has hindered proper research, and cultivation myths. ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • Former House Speaker John Boehner Suggests the U.S. Should Deschedule Marijuana
    The Ohio Republican and House Speaker from 2011 to 2015, said his “thinking on cannabis has evolved". ... read more
    Source: The Weed BlogPublished on 2018-04-11
  • While Michigan Regulatory Authorities Fiddle, Dispensaries Prepare Budtenders
    The process is moving slowly and many are worried that the market will not be prepared by the mid-June. ... read more
    Source: The Weed BlogPublished on 2018-04-11
  • House Passes Bill That Could Launch Maine’s Rec Market
    A majority of Maine’s House of Representatives endorsed a regulatory bill for the state’s new recreational weed market. ... read more
    Source: The Weed BlogPublished on 2018-04-11
  • Obtaining an Operator Identification Number (OIN) in California
    urban-gro's Director of IPM, Todd Statzer, talks to California cultivators about importance of obtaining an OIN. ... read more
    Source: The Weed BlogPublished on 2018-04-11
 
  • Dreaming of an Oregon-California Cannabis Exchange
    Yesterday, we received a call from Congressman Earl Blumenauer’s office here in Portland, Oregon. The purpose of the call was to discuss an idea to deal with the oversupply of marijuana in the state sanctioned Oregon market. Specifically, the idea was to explore the possibility of an interstate compact with California, where Oregon would sell its excess cannabis to the Golden State, much like Oregon has sold its excess renewable energy over the years. Unfortunately, we don’t think it’s a great idea. Could a west coast cannabis exchange really work? We have been writing about the oversupply issue for a while (see here and here). Recently, oversupply has also begun to receive a surge in media coverage (see here, here and here). To be sure, we have a ton of clients who have been affected by depressed cannabis prices lately: These clients include not just farms but processors and retailers who are struggling to move product and cover costs, let alone turn profits. This predictably has resulted in fair bit of industry consolidation as of late, and we have been buying and selling cannabis businesses nonstop for a while now. Various approaches have been suggested to deal with the oversupply issue in the regulated Oregon market. These approaches include having the state legislature cap the issuance of licenses, like Washington, or having the Oregon Liquor Control Commission (OLCC) curtail maximum allowed canopy sizes. To date, neither approach has gained any traction. Instead, policy makers are simply watching the market attempt to sort itself out, which means watching a significant number of operators to fail, while others are swept up by out-of-state and even international investment. So why don’t we think an interstate compact with California is a great idea? There are a few different reasons. The first is that California has plenty of cannabis in its own right: It just needs to recalibrate regulations that are currently seen as too restrictive to allow most small and mid-sized operators to enter the regulated market. The second reason is that California’s adult use program is too new: The state will almost certainly wish to keep and grow its own legal cannabis, rather than import product from Oregon while a black market thrives. But the biggest reason of all may be that an interstate compact, while exotic, is legally and politically hazardous. For 22 years and over the course of four consecutive administrations, the federal government has taken a general posture of restraint as states have promulgated medical and then recreational cannabis programs. There are ... read more
    Source: Canna Law Blog – OregonPublished on 2018-04-24
  • Industrial Hemp: Oregon and Interstate Sales
    So it goes with Oregon hemp. In the past six to twelve months, we have seen an extraordinary increase in businesses and individuals interested in growing and processing industrial hemp. This is especially true in Oregon, where Department of Agriculture (ODA) grower and handler registrations are fast, cheap and easy to acquire. In many cases, these registrants are cultivating and processing hemp in order to create cannabidiol (CBD) based products. The products can be sold state-wide without limitation, including into the Oregon Liquor Control Commission (OLCC) adult use marijuana market via hemp-endorsed OLCC processors. Other entrepreneurs, in Oregon and elsewhere, are extracting CBD for sale interstate. This is a legally nebulous area at the federal level, although interstate sales are not prohibited under Oregon law. With CBD isolate changing hands at upwards of $4,500 per kilo, however, and given the proliferation of CBD products making their way into big box retail, many businesses and individuals feel the risk is worth taking. Perhaps for this reason, we have been getting numerous weekly inquiries as to the viability of CBD sales interstate, especially as of late. From a state rules perspective, Oregon has taken significant steps in the past several months in building out its industrial hemp regime. We wrote about the recent OLCC rules promulgated in December, which allowed for ODA hemp registrants to sell into the OLCC market; and more recently we wrote about House Bill 4089, which tied up a number of loose ends related to the tracking of those sales. The upshot of all of this is that we now have unprecedented interplay between the OLCC and ODA markets. And as the OLCC hustles to write rules implementing HB 4089, there is a fair bit of confusion about what is actually allowed. One question that keeps coming up is whether an OLCC processor applicant may process ODA hemp (under both ODA and OLCC rules) while waiting to receive its license from OLCC. According to our reading of the rules, recently confirmed to us by OLCC, the answer is “yes.” Much in the way that marijuana growers used to attempt to “squeeze in” a medical marijuana crop pending their OLCC inspection and licensure, ODA hemp processors can float their operations by processing industrial hemp while in line with OLCC. Note that this is allowed even for ODA processors that are not seeking a hemp endorsement in their OLCC processor applications. Of course, ODA, local fire marshals and other state or local actors may place limitations on hemp processing operations, or ... read more
    Source: Canna Law Blog – OregonPublished on 2018-04-20
  • Week in Review: Pennsylvania flower sales, Oregon’s cannabis surplus & MassRoots’ big losses
    Pennsylvania’s medical cannabis dispensaries get the OK to sell flower for vaping, Oregon’s marijuana glut is hurting the state’s smaller growers, and MassRoots reveals that its losses widened to $44 million in 2017. Here’s a closer look at some notable developments in the marijuana industry over the past week. Positive in Pennsylvania The announcement that […] Week in Review: Pennsylvania flower sales, Oregon’s cannabis surplus & MassRoots’ big losses is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs ... read more
    Source: MMJ Business DailyPublished on 2018-04-20
  • Oregon Cannabis Wage and Hour Basics: Final Paychecks
    There are no shortage of employment laws related to cannabis businesses. Cannabis businesses, as part of a highly regulated industry, have a lot of rules to follow. In addition to state regulatory rules, cannabis businesses have to follow a multitude of other state and federal laws specific to employment. Among these, the subset of wage and hour laws are particular, fact-specific, and can be some of the most difficult to comply with. Unsurprisingly, even the most sophisticated of cannabis business owners may be unaware of some of the more obscure wage and hour laws. When it comes to cannabis employment matters, one of the questions I see most frequently relates to final paychecks. Like many states, Oregon has complicated laws surrounding final paychecks. Knowing the requirements and complying with them to a T can save money and expensive litigation. And we have definitely seen a recent uptick in cannabis litigation related to employment (see our posts on recent filings here and here). To begin, timely payment of final paychecks in Oregon depends on how the employment relationship was separated. If an employer terminates an employee, or the employment relationship is terminated by mutual agreement, the final paycheck is owed at the end of the first business day after the termination. This means that if you plan on terminating someone, have payroll prepared to issue a check immediately. If, on the other hand, an employee quits with at least 48 hours notice, the final paycheck is owed on the employee’s last day of employment. This may seem harsh, and it can definitely create some logistical headaches, but there is little wiggle room on this statutory requirement. If an employee quits without 48 hours notice, things are a bit easier on the employer’s side. The final paycheck is due within five business days, or at the next regularly scheduled payday, whichever is sooner. If the employee’s time records are required to calculate the amount owed, and they are unavailable, the employer must pay the employee what it reasonably believes is owed. If the employee later provides the time records, the employer must issue payment for any remaining amount owed within five days of receipt of the time records. Failure to timely pay a final paycheck comes with strict and hefty penalties. Penalty wages begin from the due date of the final paycheck. Penalty wages are calculated as the employee’s regular hourly rate for eight hours per day until paid or until legal action is commenced.  Penalty wages are tricky and continue even ... read more
    Source: Canna Law Blog – OregonPublished on 2018-04-17
  • 11 reasons why marijuana should be legalized for medical use
    Beyond all kinds of political discussions or user rights, seeing cannabis as a medicine can bring (and even change) the The post 11 reasons why marijuana should be legalized for medical use appeared first on Oregon Cannabis Connection. ... read more
    Source: Oregon Cannabis ConnectionPublished on 2018-04-16
  • BREAKING: Colorado Senator Says Trump Agrees to Support States’ Legalization
    It seems the president has changed his mind and a deal has been struck. ... read more
    Source: The Weed BlogPublished on 2018-04-13
  • Nipping Bud Rot in the Bud: Stop Crop Loss Before it Starts
    For indoor growers, limiting humidity is one of the easiest ways to avoid problems with bud rot. ... read more
    Source: The Weed BlogPublished on 2018-04-13
  • White House Ponders Allowing States to Drug Test Food Aid Recipients
    Now the Trump administration is considering a plan that would allow states to require mandatory drug testing. ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • After Seven Years Behind Bars for Two Joints, Bernard Noble is Free
    Noble became a national symbol of the country’s, and Louisiana’s, harsh drug laws and minimum mandatory sentencing. ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • Cannabis Trademarks have arrived in California – #ProtectYourStash
    As of Jan. 1 2018, cannabis businesses may register their marijuana related trademarks in 2018 ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • The Evolution of Cannabis Science Part 1
    Part one discusses Cannabis science evolution, how it's illegality has hindered proper research, and cultivation myths. ... read more
    Source: The Weed BlogPublished on 2018-04-12
  • Former House Speaker John Boehner Suggests the U.S. Should Deschedule Marijuana
    The Ohio Republican and House Speaker from 2011 to 2015, said his “thinking on cannabis has evolved". ... read more
    Source: The Weed BlogPublished on 2018-04-11
  • While Michigan Regulatory Authorities Fiddle, Dispensaries Prepare Budtenders
    The process is moving slowly and many are worried that the market will not be prepared by the mid-June. ... read more
    Source: The Weed BlogPublished on 2018-04-11
  • House Passes Bill That Could Launch Maine’s Rec Market
    A majority of Maine’s House of Representatives endorsed a regulatory bill for the state’s new recreational weed market. ... read more
    Source: The Weed BlogPublished on 2018-04-11
  • Obtaining an Operator Identification Number (OIN) in California
    urban-gro's Director of IPM, Todd Statzer, talks to California cultivators about importance of obtaining an OIN. ... read more
    Source: The Weed BlogPublished on 2018-04-11