San Diego Cannabis Business Lawyer

Protect Your Cannabis Business From Liability in California

Anyone engaging in any of the regulated activities must, like anyone else engaged in the provision of goods or services to others must consider the very real possibility of civil third-party liability.

Thus, it makes sense to consider forming a corporation or limited liability company for purposes of limiting potential exposure. Specializing in private entity formation, our cannabis lawyers in California are able to structure formation and charter documents so as to maximize not only your insulation from personal liability but also maximize the effectiveness of the argument that you are conducting and participating in regulated activities in compliance with state and local law as well as the dictates of the Cole Memo. Typical cannabis attorneys may not have this experience and may seek only to defend you in a crisis instead of preventing the crisis all together.

Get Sound Advice on Drafting Contracts

Anyone engaging in regulated activities should not fear written agreements memorializing investment, financing, vendor-vendee, employment, and subcontractor terms with third parties. Such agreements for good reasons deal with all sorts of issues (partnership, control, compliance, milestones, indemnity, warranties, dispute resolution, to name a few). Such fears were well-founded in the past because such documents could be evidence of federal criminal conduct warranting federal prosecution.

Instead, today, persons engaging in regulated activities should develop and use such documentation—not only because it makes good sense to memorialize obligations and establish boundaries with persons and companies you deal with, but also because if such documentation is carefully crafted, you can actually facilitate proof of compliance at the state, local and all-important federal levels. Specializing in the drafting of written agreements and all sorts of related documentation, our cannabis lawyers in California can provide the advice you need in this area.

Ensure Compliance for Your Marijuana Business

At Purdy & Bailey, our San Diego marijuana lawyers can assist with state and local regulatory compliance. Finally, we are very well connected to other professionals in this field, including criminal defense attorneys and CPAs.

The Gray Area in Cannabis Law

In the world of cannabis jurisprudence, there remains a critical gray area: Under the federal Controlled Substances Act of 1970, the cultivation, distribution and even—technically speaking—possession of any amount of cannabis— which is a Schedule 1 narcotic under the Act—is a felony. Under the very much alive and well Supremacy Mandate (Article VI) of the U. S. Constitution, federal law is the supreme law of the land, meaning it preempts state and local laws to the contrary, including laws concerning the regulation of cannabis.

Thus, whatever the State of California officially passes regarding the decriminalization, legalization or regulation of cannabis, the cultivators, transporters, and distributors of cannabis are at risk for federal prosecution and related forfeiture actions. This possibility of federal prosecution must, from the standpoint of anyone engaging in regulated activities, be the prism through which all decision–making must pass.

Understanding Changing Cannabis Laws in California

On August 29, 2013, U.S. Deputy Attorney General James M. Cole signed and circulated among those tasked with the enforcement of federal criminal statutes a “Memorandum For All United States Attorneys” concerning Justice Department policy regarding cannabis enforcement.

According to the Cole Memo, US Attorneys are advised that the policy, moving forward, will be one of hands-off so long as the potential target or person of interest meets the requirements below.

Indeed, the Cole Memo goes so far as to say that even “commercial” or “for-profit” activities by someone engaging in regulated activities will not necessarily be a trigger for federal enforcement absent transgression of one of the stated priorities.

Did the Medical Cannabis Laws in California Change Following the Passage of MAUCRSA?

Yes, the medical cannabis laws in California changed following the passage of the Marijuana Use, Regulation, and Taxation Act (MAUCRSA). MAUCRSA was a federal law that was passed in 2018 that legalized the cultivation, possession, and sale of cannabis for recreational use in states that have already legalized it.

Impact of the Medical Marijuana Regulation and Safety Act

Since October 9, 2015, when California enacted its Medical Marijuana Regulation and Safety Act, the state has put in place a comprehensive and clearly “robust” regulatory apparatus (with administrative regulations to follow soon from the newly formed Bureau of Medical Marijuana Regulation, a Division of the California Department of Consumer Affairs as well as the Department of Food and Agriculture and the State Department of Public Health).

Just recently, Proposition 64 has been approved in California, making it the largest state in the nation to legalize recreational marijuana usage. This means the market for marijuana products and businesses will continue to grow exponentially.

Representation of Municipalities & Counties

Given our firm's extensive experience representing the local government in California, as well as our experience with the licensing, taxation, and discretionary aspects of the Medical Cannabis Regulation and Safety Act, we are well-positioned to represent local government on such issues as establishing a licensing apparatus, issuing licenses, and enforcing compliance.

Why Hire a San Diego Cannabis Industry Lawyer?

Cannabis continues to grow in its popularity and usage. What was once taboo is now being recognized as a genuine and viable medical alternative. Studies continue to pour forth indicating the benefits of cannabis and medical dispensaries continue to pop up around the United States—especially in California.

As the cannabis industry continues to grow and moves towards recreational legalization, it only makes sense to try to tap into this business field and benefit from its growth. If you are wading into this venture or are already active in the field, you need professional legal assistance to maximize your profits and your protection.

What is a Marijuana dispensary?

Cannabis dispensaries in the United States are local government-regulated physical locations. Marijuana dispensaries include retailers that have a storefront where customers can visit. Each type of marijuana dispensary activity has its licensing requirements that need to be obtained on a legal level. That's why it is important to have legal representation going into the industry.

Benefits of Hiring Our Team

Unlike most areas of business, the cannabis industry comes with unique opportunities and challenges. It is difficult to navigate these obstacles without seasoned experience and protection, which our firm can provide.

These are just a handful of the areas Purdy & Bailey, LLP can provide legal insight on. Our team can also help guard against civil or criminal liability. As a firm that is a member of NORML, Cannabis Coalition, and Cannabis Entrepreneurial Association, we provide leading representation and counsel every step of the way when you hire us.

What to Expect from Purdy & Bailey, LLP

At Purdy & Bailey, LLP, we have more than half a century of litigation experience and a track record of providing efficient and cost effective results. We are proud to serve San Diego and are a one-stop shop for business owners and professionals involved in the cannabis industry.