Blog

In the Weeds

In the highly regulated cannabis industry, success is reserved for those who take a thoughtful and strategic approach to entering this market. In the Weeds aims to help keep today’s cannabis entrepreneur well informed. We track developments in marijuana law and business, including regulatory framework in states where cannabis has been legalized for medical and/or recreational uses and the unique issues that businesses in the cannabis industry face. Authors offer insights on banking, real estate, finance, corporate entity formation and governance, taxation and creditor rights issues that are distinct to companies in the legal marijuana space, as well as the interplay of collateral businesses to the cannabis industry.

Recent Blog Posts

  • Treasury Department Data Shows Continuing Increase in Availability of Marijuana Banking The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has released updated quarterly statistics showing a continuing increase in the number of depository institutions that actively bank U.S. marijuana businesses. As of March 31, 2018, a total of 411 banks and credit unions provided services to marijuana-related businesses, up from 365 one year ago. FinCEN’s data reflects a slight decrease following the Attorney General’s announcement in January 2018 that he was rescinding the Cole Memorandum, but the numbers quickly went back... More
  • Tax Controversy For Cannabis Businesses Jennifer Benda wrote a recent blog on tax controversy in the cannabis business space. This is an important issue for anyone in the business. Check it our here.  ... More
  • Promising Federal Legislation Could Give Protection to Cannabis Businesses Few things are as bi-partisan as constructing a snazzy acronym for federal legislation, and Senators Elizabeth Warren (D-MA) and Cory Gardner (R-CO) did not disappoint with the “Strengthening the Tenth Amendment Through Entrusting States Act”  (“STATES Act”). As its name suggest, the goal of the STATES Act is to protect regulated cannabis businesses and users in states where cannabis has been legalized by amending the Controlled Substances Act. Copyright: mesutdogan / 123RF The Controlled Substances Act, 21 U.S.C. §§ 801, et seq. (“CSA”) is... More
  • Marijuana’s Impact on Custody Cases Our partner, Aaron Weems, wrote this post in our Pennsylvania family law blog on the impact of marijuana in custody cases. You should check it out.5844922 – one hand stop gesture no to drugs cannabis marijuana cigarette isolated background... More
  • Breaking News – Florida’s Ban on Smoking Cannabis is Ruled Unconstitutional After a closely watched one day trial last week, Judge Karen Gievers issued a 22 page Order and Final Judgment.  Judge Gievers found that the legislation which implemented Amendment 2 (medical marijuana) is unconstitutional because it conflicts with the language of the constitutional amendment itself. Section 381.986, Florida Statutes (2017) unconstitutionally restricts rights that are protected in the [Florida] Constitution, and so the statutory prohibition against the use of smokeable marijuana permitted by [a] qualifying patient is declared invalid and unenforceable. Qualifying patients... More
  • IRS May Seize and Sell Equipment Used in a Cannabis Business, but Should Deep Clean First Head over to the Tax Controversy Sentinel to read my post about IRS efforts to sell equipment seized from cannabis companies.... More
  • Florida Medical Marijuana – Litigation Update Grow Your Own Case Recently, I posted about a Leon County, Florida Court case in which the Judge found in favor of a medical marijuana patient who sought permission to grow his own medical marijuana because he needed the raw plant for the treatment his state-certified doctor had prescribed to him for his stage 4 lung cancer.  Medical cannabis dispensaries in Florida do not provide raw plant product.  Following that Court Order, Florida’s Department of Health filed an appeal. The First District Court... More
  • In Boost for Cannabis Infusion Market, California Adds New Type-S License In an Alert published Thursday, Fox partner Tracy Gallegos and associate Lynnel Reyes examined new emergency regulations recently proposed by the California Department of Public Health to allow Type 6, 7, or N cannabis licensed manufacturers to register their facility as a “shared-use” facility. The regulations also provide for a new license, the Type S license, which would allow licensees to create infusions, package and label cannabis products and conduct extractions with butter or food grade oils (provided that the... More
  • Florida Court Decision in Favor of Patient Who Wants to Grow His Own Medical Marijuana Florida’s medical marijuana regulations do not presently permit medical marijuana patients to grow their own medical marijuana.  Florida’s Department of Health’s website states the following: Florida law only allows the licensed dispensing organizations to grow, process and dispense marijuana. The department will refer any business or individual suspected of violating state law to local law enforcement for investigation. It is important to remember marijuana is illegal under federal law. Joe Redner, of Tampa Florida, challenged this Florida regulation and argued in his lawsuit... More
  • Arkansas Medical Cannabis Program Enjoined Yesterday, a judge in Arkansas enjoined the issuance of any medical cannabis cultivation licenses because of irregularities in the process. I was interview by a local TV station, which can be seen here; http://www.nwahomepage.com/news/arkansans-may-wait-another-year-before-getting-medical-marijuana/1066923671.... More