Fledgling marijuana businesses in California face significant challenges following the Jan. 1 passage of the Adult Use of Marijuana Act (known as Proposition 64) . That measure made recreational cannabis legal in the state, but subject to a laundry list of stringent regulations businesses must abide. In addition, many local governments have set their own rules, and this is all heaped on to existing barriers under the federal Controlled Substances Act, 21 U.S.C. Section 812.
Good marijuana business attorneys recognize that even once a client clears all those hurdles, small operations often have an even bigger mountain to climb: Competition from cannabis mega-corporations. This has spurred a number of marijuana lawsuits against the state for failure to keep these bigger firms in check with sufficient regulation.
Specifically, some farmers are taking aim at the fact the law does not fully restrict acreage permitted per grower for marijuana.
In one example, California Growers Association, a nonprofit, mutual benefit corporation, has filed a lawsuit in Sacramento County Superior Court against the state’s agriculture department, challenging the lack of such a stipulation.
The farmers argue that without such a limit, they are positioned to lose their standing to large agribusinesses, which have resources to convert massive expanses of land, according to San Francisco Chronicle. This conflicts with provisions built into Proposition 64 to protect owners of small- and medium-sized marijuana cultivation operations.
California Growers Association v. California Department of Food and Agriculture states that Proposition 64 prohibits licenses for large-scale operations in the first five …