The legalization of medicinal and recreational marijuana is creating unique opportunities and risks for businesses; real estate and capital raising are quickly expanding. Those looking to lease real estate, obtain financing, invest in, operate, or otherwise engage in the business of cannabis must consider how new and evolving marijuana laws and regulations will affect them.
This rapidly developing industry impacts many others.
Commercial Landlords: What are the unique business and legal issues that relate to leasing property to a marijuana cultivation facility or dispensary? What key provisions should you include in your leases to address potential issues? What are the risks of having your property seized and what restrictions might be placed on your normal legal remedies?
Residential Landlords & Management Companies: What provisions should you include in residential leases related to the possession and use of medicinal or recreational cannabis products? How can you address the possibility of tenants growing or smoking marijuana on your premises?
Lenders: Can you safely lend to a marijuana cultivator or dispensary? What limitations might be imposed on your ability to realize on your collateral?
Investors & Those Seeking Investments: What issues should you be concerned about with respect to investing in marijuana-related opportunities? What unique challenges will early and mid-stage investors face? What risk-related disclosures do you need to make if you are raising capital for a marijuana-related business?
Banks & Credit Unions: How should you respond if a marijuana-related business seeks to establish a deposit or merchant account with you? What is the latest guidance issued by FinCEN to financial institutions?
Employers: What can you do if an employee reports to work impaired? What if you are aware of cannabis use during down time – can you prevent it? How might the new laws impact your drug testing policies? What if an employee has a prescription for medicinal marijuana?
Insurers & Insurance Agencies: How do you advise a client seeking to insure inventory consisting of growing equipment, marijuana plants or products, or a landlord seeking to insure against casualty and other risks?
Food & Hospitality Industry: As edibles and cannabis-infused products become more popular, what legal issues will the food and hospitality industry need to become aware of and consider? What opportunities might become available to you?
Business Operations: How should a cannabis-related business be organized and structured? Are there special provisions you should include in your contracts? Specific provisions you should avoid?
Intellectual Property: How can you protect a brand name or other marijuana related intellectual property rights? Federal trademark law prohibits marijuana businesses from registering their brands as trademarks. This does not mean that all hopes for obtaining brand protection are lost. What strategies can you utilize in order to get some protection for your brands?
Taxation: What tax provisions are peculiar to this industry and how can you best navigate through the tax code and regulations to increase your bottom line?
Legislative & Regulatory Updates: What legislative and regulatory changes are occurring at the national and local level? What impact might the current administration’s enforcement priorities have on states that have legalized medicinal or recreational marijuana? What revisions are the Massachusetts and Rhode Island legislatures making to their recently enacted laws? What new legislation might these states be considering?
If you are involved directly or indirectly with a marijuana related business, you need to remain up to date with respect to new laws and regulations. Changes are occurring on a rapid basis, and you need to be in the know.
PSH’s Cannabis Advisory Practice Blog provides updates on marijuana law and policy, covering some of the risks and opportunities in this new industry, and makes recommendations regarding best practices. To access our cannabis advisory blog, please click here.