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

  • Massachusetts U.S. Attorney Issues Guidance, Signaling Good News for Recreational Marijuana Industry Entrepreneurs looking to enter Massachusetts’ newly minted recreational marijuana market can sleep a bit easier tonight after a statement from U.S. Attorney Andrew Lelling (the top federal prosecutor for the state) regarding his enforcement priorities surrounding marijuana sales. Copyright: jirkaejc / 123RF Stock Photo As many in the industry are aware, federal prosecutors for years were guided by the “Cole Memo,” which endorsed a hands-off approach to enforcement against businesses operating where marijuana had been legalized under a state-sanctioned program. But this... More
  • Nevada To Begin Accepting Recreational Retail Marijuana Establishment Applications Sooner than Expected Nevada legalized the recreational adult-use of marijuana on July 1, 2017 and the state has generated millions in tax revenue as a result. Nonetheless, the Nevada Regulation and Taxation of Marijuana Act (the “Act”) provides that until November 2018, only registered marijuana certificate holders may apply for recreational retail marijuana establishment licenses. The Nevada Department of Taxation (the “Department”) ceased accepting applications at 2017 year’s end. The Act further provides that at least once a year, the Department will determine whether... More
  • Florida Medical Marijuana – Citrus Preference Licensing Litigation Florida’s citrus industry has been ailing and declining for years.  Florida’s recent medical marijuana regulations were designed to help, in part, by providing two medical marijuana licenses for the citrus industry to switch from growing oranges to marijuana. As I’ve posted before, Florida medical marijuana licensing regulations have been the subject of repeated litigation challenges.  See posts here, here and here.  Now, the most recent challenge involves this citrus preference rule. Louis Del Favero Orchids (“Orchids”) is challenging the rule.  The orchid company argues that the rule... More
  • Time To Start Labeling Manufactured Cannabis Products (Edibles) In Compliance With California Regulations Jack Praetzellis writes: On July 1, 2018, California’s Cannabis “transition period” ended for manufactured cannabis products (i.e., edibles).  All manufactured cannabis products must now meet California’s (very) specific labeling and packaging regulations. Among other things, the packaging must include THC and CBD content in milligrams along with the Cannabis “universal symbol” (and no, you can’t change the color). The “don’ts” are more interesting than the “dos”.  Among other things, packaging cannot: Include the name of a county in California unless all of the cannabis... More
  • So Why Should You Care About 280E For the latest analysis of the implications of IRC 280E, check out this blog from Jennifer Benda.24982680 – state supreme court building in tallahassee, florida.... More
  • 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