June 4, 2012

Weekly Wrapup: California’s Chaotic Cannabis Climate + the Promise of Cannabidiol Products

Medical marijuana news, cannabis dispensary updates and developments about pot growers

California’s medical marijuana industry is facing a great deal of uncertainty, as evidenced by two developments in the state last week.

First, a City Council committee advanced a measure that would ban all dispensaries in Los Angeles, which currently is home to the largest number of medical marijuana centers in the country. (The committee also supported a separate bill that would allow roughly 100 dispensaries to remain open but force all others to close.)

Less than 48 hours later, state lawmakers advanced a bill that would create a government body to oversee the medical marijuana industry across California.

These measures, if passed, could have a huge impact on MMJ businesses in the state. The ban in LA would be devastating, of course, as it would essentially destroy the biggest medical marijuana market in the United States. The statewide regulations, on the other hand, would be beneficial – bolstering the industry’s credibility and helping rid California of shady operators that have ruined its image. But they would also be disruptive, requiring existing businesses to meet certain criteria and likely shell out thousands of dollars in the process.

As a business owner, it’s hard – if not impossible – to prepare for the future given these uncertainties. The best strategy is to try to remain as flexible as possible so that you can react quickly to change. That means you should shelve any expansion plans and think twice about any big expenditures, as you might need that cash to meet new regulations. And if you run an MMJ business in Los Angeles, it’s probably wise to have a personal backup plan in case you are forced to close.

The other big story during the shortened holiday week revolved around cannabidiol, or CBD. Colorado-based Dixie Elixirs & Edibles announced last week the launch of its new line of hemp-based CBD products. The company says these products are legal in the U.S. and can therefore be sold in any state. This represents a promising new market for MMJ companies willing to invest in CBD and could present a host of new opportunities without all the risk.

Post Your Comment:


Please note:
Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.

Regulatory Baby Steps for Recreational Marijuana in Alaska

Alaska has taken its first step toward developing regulations on its recreational cannabis industry. The [click to continue...]

Italian Army Growing Medical Marijuana to Lower Price

medical cannabis in italy

Italy’s army has been hard at work – not fighting in the field, but cultivating [click to continue...]

Public Cannabis Company Resumes Trading

Advanced Cannabis Solutions is back…on the stock market, that is. Trading of the Denver-based company’s [click to continue...]

Colorado Gov. Walks Back Criticism of Legal Marijuana

Colorado Gov. John Hickenlooper hasn’t exactly been a huge fan of legal marijuana. He’s repeatedly [click to continue...]

Oregon MMJ Growers May Face Stricter Rules

cannabis grows

Oregon medical cannabis cultivators may face stricter reporting requirements and plant restrictions under a proposal [click to continue...]

Major Union Backs Ohio Marijuana Legalization Effort

One of the biggest politically active unions in the country has thrown its weight behind [click to continue...]

WA Group Challenging New Medical Marijuana Law

A Washington State group is looking to challenge newly minted regulations that roll the state’s [click to continue...]

Judge Overturns Massachusetts Dispensary Denial

MMJ massachusetts

A Massachusetts judge has sided with a medical cannabis business over the state health department, [click to continue...]

Report: Many Colorado Dispensaries Taking on Big Risks To Accept Plastic

Dozens of dispensaries in Colorado have set up “shadow” banking systems that allow them to [click to continue...]

California Leaders Exploring Recreational Marijuana Issues

Some California officials are trying to ensure would-be recreational marijuana businesses don’t run into the [click to continue...]

Cannabis Chamber Logo Sparks Lawsuit

coloradocannabischamber

The Denver Metro Chamber of Commerce has filed suit over what it claims is trademark [click to continue...]

New York Taking Applications for Medical Cannabis Business Licenses

Ready, set, go! Entrepreneurs can now apply for medical cannabis business licenses in New York, [click to continue...]

Video Statement Part of Settlement Tied to $100M Lawsuit

In an unusual legal settlement, a Colorado company has issued a video statement about its [click to continue...]

WA Gov. Signs Sweeping Bill Moving MMJ Into Rec Program

News about Washington medical cannabis dispensaries, state marijuana laws and marijiana businesses

Washington State’s medical marijuana program will officially be rolled into its recreational market after Gov. [click to continue...]

Marijuana Business Daily