THC, CBD, CBN…the Cannabis industry is quite familiar with acronyms. But it’s another nasty little four letters, TCPA, that are – or should be – on the top of mind for every dispensary, delivery service, CRM platform, and private equity holding company. This as the US Supreme Court decides what the byzantine 30-year-old law will look like following a landmark decision expected by the end of June or July.
Continue Reading Mass Texts: How the Cannabis Industry Must Deal with the Surge of TCPA Class Actions During Covid-19
Tale of Two Cities: Cannabis and Commercial Real Estate
Recently, I had the opportunity to moderate panels on cannabis and commercial real estate at programs held in Los Angeles and Chicago. I won’t say it was the best of times or the worst of times, but I will say “it was the age of wisdom; it was the age of foolishness.”
It was interesting to compare the programs and the audiences in the two cities. In Chicago, where medical marijuana has been legal since 2014, and recreational marijuana has been legal for just over a month, people from many facets of the real estate industry — brokers, architects, contractors, real estate owners — came to learn about the new opportunities and pitfalls of the cannabis industry. To be sure, some were experienced, having participated in the medical marijuana business, but others were, well, naïve about how pervasive local, state and even federal laws are in regulating cannabis use of commercial real estate.
In LA, where medical marijuana has been legal forever and recreational for three years, the commercial real estate industry has had enough experience with the cannabis industry to experience the impact of various laws and regulations on commercial real estate. The audience came prepared to hear about how the cannabis and commercial real estate industries were addressing some of the issues resulting from the intersection of the industries.
Here are some key takeaways from the two panels:
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Section 280E – Why Are We Still Having This Discussion?
If you are in the cannabis industry, you should already know Section 280E of the Internal Revenue Code. It consists of only one sentence:
No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade
Continue Reading Section 280E – Why Are We Still Having This Discussion?
SAFE Act Passes in the House, But…
Yesterday, the House of Representatives passed H.R. 1595, the Secure and Fair Enforcement Banking Act (SAFE Act), by a vote of 321-103, with 90 Republicans voting in favor of the bill. Some have hailed the bill as a panacea for banking cannabis related businesses (CRBs). While this post is not intended to be a comprehensive analysis of the SAFE
Continue Reading SAFE Act Passes in the House, But…
Cannabis Industry: The Latest Takeaways
Last week, several members of Seyfarth’s cannabis practice attended CannaVest West and the Cannabis Business Summit & Expo. Industry expert panels discussed market trends, private equity, venture capital, family offices, and banking, as well as commercial real estate, which I had the opportunity to moderate.
Of interest to TBT readers, a few key takeaways from the event include:
Investment Opportunities
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DC Mayor Begins Effort to Legalize Recreational MJ Sales
The District of Columbia is one of only two jurisdictions (the other is Vermont) which have legalized possession of recreational marijuana but where sales remain illegal. Wait, what? That’s correct; in your nation’s capital, you can use recreational MJ, but you can’t buy or sell it.
Continue Reading DC Mayor Begins Effort to Legalize Recreational MJ Sales
Will Banks be Able to Play it SAFE with Marijuana Related Businesses?
Marijuana is estimated to be a $10 billion industry and rapidly growing. Almost all of it is conducted in cash. Although legal in thirty three states plus Washington, D.C., Puerto Rico and Guam, marijuana remains illegal at the federal level. Accordingly, financial institutions that handle proceeds from a transaction involving the distribution, manufacture or sale of marijuana would be handling illegal proceeds in violation of both federal money laundering statutes and banking regulations that prohibit such institutions from participating in any transaction or engaging in any relationship involving illegal proceeds.
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Judgment Rendered in Favor of Grower in First Civil RICO Trial for Cannabis Industry
A Colorado federal jury sided with the owner of a state-licensed cannabis cultivation business last Wednesday in a federal Racketeer Influenced and Corrupt Organizations Act (RICO) suit brought against him by his neighbors.
In 2015, Michael and Hope Reilly brought a federal RICO lawsuit in Colorado against Parker Walton and his cannabis cultivation operation that neighbored their property. The Reillys
FDA: .1% CBD OK
This is Washington, and we do like to speak in initials. A plain English translation of the title of this piece would read “FDA ‘places FDA-approved drugs that contain CBD derived from cannabis and no more than 0.1 percent tetrahydrocannabinols in Schedule V.’” DEA Final Order, Docket No. DEA-486 Schedule V drugs include cough medicine with codeine and many pain relievers that still require a prescription. So, really what this order does is allow doctors in the US legally to prescribe the recently approved epilepsy drug, Epidiolex, and allows pharmacies, rather than marijuana dispensaries, legally to sell the drug.
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Appropriations Rider Gives Sliver of Hope For California Dispensary Owner Caught Between Conflicting State and Federal Laws
In a split decision last Thursday, the U.S. 9th Circuit Court of Appeals affirmed the conviction of Morro Bay marijuana dispensary owner Charles Lynch and remanded the case to the district court for a factual determination as to whether Lynch’s activities were in strict compliance with California law. [Link to case here.]
Continue Reading Appropriations Rider Gives Sliver of Hope For California Dispensary Owner Caught Between Conflicting State and Federal Laws