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CannaBeat – March 24, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

With Cannabis Cultivator Cap Lifted, Growers Face New Jersey’s Challenges

After a short and fast 2-year state license cap, there is no longer any limit on the number of cultivation licenses in New Jersey. As the industry continues to expand, New Jersey cannabis operators face the same hurdles as operators in other states. First, and what seems to be a problem across many states, a majority of municipalities have “opted out” of permitting cannabis businesses. This fuels the next issue: real estate. With few jurisdictions permitting operators, there are very limited spaces to set up their operations and sell product. Lastly, one of the original and biggest hurdles: raising capital. Many investors have seen the roller coaster of the cannabis industry in other states and can be hesitant to invest in this new market. Unfortunately, it looks like deja vu. California, for example, faces very similar issues; a majority of jurisdictions have banned commercial activity, the market is limited, and capital is hard to come by. After 27 years since the first legalization of medical cannabis, operators are fighting harder than ever to stay afloat. Emerge shareholder Duncan Delano of New Jersey opines: “Challenges are inevitable. But I continue to be impressed by the tenacity and resourcefulness of our clients in New Jersey and New York, as their options open up. The industry here is developing at light speed.”

Other Noteworthy News

Treasury Secretary Says Regulators Are “Looking For Solutions” to Marijuana Banking Problem As Schumer Recommits To Addressing the Issue
As Senate Majority Leader Chuck Schumer (D-NY) renews his commitment to tackling marijuana banking reform this year, the head of the U.S. Treasury Department says that regulators are also exploring options to address the issue. During a hearing before the Senate Finance Committee on Thursday, Sen. Michael Bennet (D-CO) pressed Treasury Secretary Janet Yellen about the fact that the cannabis industry lacks access to traditional financial services under prohibition. The senator argued that marijuana as a commodity is more “stable” than cryptocurrency, yet banking regulations have allowed for large investments in the latter that ultimately contributed to the collapse of at least one bank this month. Yellen replied by saying that, “as you pointed out, in the case of marijuana, it is against federal law, and that’s a barrier, unfortunately, to appropriate banking services for the industry.” “It’s something the regulators have been looking for solutions to,” she said…….
Coalition Sues NY Marijuana Regulations To Open Licensing Process
A coalition of medical marijuana license holders and recreational market hopefuls have filed a lawsuit in state Supreme Court seeking to force New York’s Office of Cannabis Management to open the retail licensing process “for all applicants immediately.”
The slow rollout of licensing for entrepreneurs beyond those with a documented marijuana conviction in their family has angered small business owners who thought they would have an earlier shot at one of the state’s first retail sales licenses, including those defined under the law as “social equity” applicants. It has also frustrated large companies that entered the market early but are still permitted to sell only to certified medical patients. The challengers argue that equal access to the first recreational licensing process should have been available to them under the state’s 2021 cannabis law, which specifies that “the initial adult-use cannabis retail dispensary license application period shall be opened for all applicants at the same time.” The lawsuit, filed in Albany, claims that by creating limited, “conditional” licensing categories that opened prior to the general process, regulators have “overstepped their rule-making authority” and subverted legislators’ intent. The agency’s “arbitrary and capricious foray into legislative policymaking has harmed those individuals the (cannabis law) was designed to benefit ... and diverted (regulators’) attention from the enforcement tasks” that the law requires, according to the court petition…….
Kentucky Senate Passes Bill to Legalize Medical Marijuana
The Kentucky Senate voted Thursday to legalize medical marijuana in the state, delivering a breakthrough endorsement after years of resisting access to cannabis for people suffering from a series of debilitating illnesses. The measure was passed by the Senate on a 26-11 vote, sending it the House, which has supported medical cannabis measures in the past. Republicans have supermajorities in both chambers. “This is one of those issues where you take out the ledger and you list the pros and cons,” said Republican Sen. Stephen West, the bill's lead sponsor. "And it’s a long list on both sides. But for me personally, the pros outweigh the cons.” Republican Sen. Gary Boswell opposed the bill, referring to cannabis as “a drug, not a medicine.” He said the qualifying medical categories listed in the measure are “too broad.” The dramatic vote came before lawmakers started an extended break to give Gov. Andy Beshear time to consider signing or vetoing the stacks of bills sent to him. The House can take up the medical marijuana proposal in late March, when lawmakers will reconvene for the final two days of this year's legislative session…..
Las Vegas Unveils Unusual First Cannabis Residency
Adult freedom and indulging in multiple pleasures have been Las Vegas themes ever since gambling was legalized again in Nevada on March 19, 1931. Gambling had been outlawed in 1910 after being a legal activity, but Sin City has enjoyed 92 years of living on the edge since gaming became legal again. Las Vegas Convention and Visitors Authority in 2020 adopted a new variation of its former catchphrase "What Happens Here, Stays Here," which Sin City began promoting in one of marketing's most successful advertising campaigns in 2003. The new slogan for tourism adopted in January 2020 is: "What Happens Here, Only Happens Here." The catchphrase might suggest anything goes in Sin City, but among the vices remaining illegal on Las Vegas Strip are prostitution, though sex-for-hire is legal in some parts of Nevada, and smoking pot. You can't legally smoke pot in public in Las Vegas, though you can possess cannabis and legally smoke it in a private residence.
Cannabis Brands Products Steeped In Nostalgia Aim To Attract Generational Consumers
Products Steeped In Nostalgia Aim To Attract Generational Consumers
https://mjbizdaily.com/cannabis-brands-products-steeped-in-nostalgia-aim-to-attract-generational-consumers/
Cannabis companies nationwide are infusing a heavy dose of nostalgia in their products and building brands based on fond memories, good times and the soundtracks of some of our formative years. Resurrecting defunct record labels, rock-band encores and cult-classic throwbacks are all part of the remix. Other forms of entertainment are finding wild success and new audiences with blasts from the past, evident at the box office and streaming services. “Top Gun: Maverick,” a near carbon copy of the original, was nominated for five Academy Awards, including Best Picture after grossing nearly $1.5 billion. Metallica’s 1986 masterpiece, “Master of Puppets,” the title track of the band’s third album, climbed into Spotify’s Top 10 most-played songs last year after playing a key element in the popular Netflix series “Stranger Things,” which introduced throngs of younger listeners to the metal icons. The comedy duo Steve Martin and Martin Short, who first paired up in the 1986 movie “Three Amigos!” have hit streaming gold on Hulu’s “Only Murders in the Building,” joining other contemporaries of that era finding new life in the digital era, including another comeback story for the Karate Kid in Netflix’s “Cobra Kai.” Nostalgia not only evokes positive memories, belonging and coming of age, research has shown it affects consumer behavior and increases purchases……

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CannaBeat – March 10, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Emerald Triangle Communities Were Built On Cannabis. Legalization Has Pushed Them To the Brink

Legalization in California seemed like a dream come true for the cannabis industry, home of the Emerald Triangle. Abide by the rules and regulations in exchange for the opportunity to have a legal business. Six years later, and the price of cannabis is unbelievably low, businesses are closing, and the illegal market is flourishing. According to coverage by HighTimes and Forbes, cannabis sales declined in 2022, and many believe it wasn’t because people were consuming less.

The Emerald Tringle seems to be hit the hardest as cannabis is a base for much the community’s economy. Farmers in Humboldt reported that even though they sold all their product, they come in at loss for the year. Farm closures reverberate throughout Trinity County. Local businesses that depended on the patronage of the famers and their employees are laying people off and cutting hours. Some have lost so much revenue that they may close. In Mendocino, it is estimated that nearly 70% of operators might not remain in the legal market.

Besides overregulation, two major culprits are said to be the roots of the larger issues within the industry: high taxes and lack of shelf space. In attempt to fix the first problem, the State eliminated the cultivation tax in July of 2022. As for shelf space, 56% (302/539) of California jurisdictions still do not allow any type of commercial cannabis operations. There are only about 1000 licensed dispensaries serving 40 million residents. Delia Rojas of Emerge Law Group says that “the power local jurisdictions hold is frustrating, especially when residents of communities where a majority voted in favor of prop 64 haven’t experienced the product of their vote. Fear still runs rampant in much of the state. Education and advocacy continue to be important to wipe away the stigma surrounding this plant.”

Other Noteworthy News

Mendocino Growers Ask California To Address County’s Cannabis Licensing
A trade association representing cannabis growers in California’s Mendocino County has asked the state government for an “urgent intervention” in the county’s licensing process, citing concerns that many farmers’ license applications won’t be processed by a July 1, 2023, deadline. The Mendocino Cannabis Department and local government have failed to “establish a process capable of moving good-faith cannabis operators towards state annual licensure,” the Mendocino Cannabis Alliance (MCA) claims in a Feb. 8 letter to California Gov. Gavin Newsom and state Department of Cannabis Control Director Nicole Elliott. The letter charges that by the July deadline, the Mendocino Cannabis Department (MCD) will have licensed only 256 “prioritized” marijuana operators in the county, “implying that nearly 70% of Mendocino’s 841 current operators have no path forward to remain in the legal market,” according to an accompanying news release. “Further, among over 500 ‘deprioritized’ operators, MCA has found that a substantial number have been deprioritized incorrectly based on demonstrably false claims of tax delinquency or lack of state licensure.” MCA Executive Director Michael Katz said Mendocino County has “no functional permit program in Mendocino, and no plan to create one.”
Oklahoma Voters Reject Marijuana Legalization Ballot Initiative
Oklahoma voters have rejected a ballot initiative that would have legalized marijuana for adult use in the state on Tuesday. For most counties across the state, the cannabis reform measure—State Question 820—was the only proposal on the ballot, a unique scenario in the history of the legalization movement. Advocates tried to put the reform on the November 2022 ballot, but delays in signature verification by officials and the state Supreme Court’s subsequent decision in litigation meant that it missed the window to qualify for that cycle. In October, Gov. Kevin Stitt (R) called a special election for the cannabis measure that took place on Tuesday.
UConn Launches New Cannabis Cultivation Minor
The University of Connecticut announced a new minor in Cannabis Cultivation for students receiving specialized training in this growing field. “Since we launched the nation’s first cannabis horticulture course, UConn has been a leader in cannabis education and research,” says Indrajeet Chaubey, dean of the College of Agriculture, Health and Natural Resources. “We are thrilled to add another mechanism for students to formalize the skills, knowledge, and expertise in cannabis studies that they gain while at UConn.” Led by professors of plant science Gerald Berkowitz and Matthew DeBacco, the 15-credit minor was formalized in the spring 2023 semester. It provides training in the propagation, cultivation, commercial production, maintenance, processing, and potential markets for and uses of one species of cannabis, Cannabis sativa. As part of the minor, students can receive credit for approved internships with growers and companies to provide students with experiential learning opportunities and exposure to jobs.
Justice Department Website Opens Portal For Those Seeking Presidential Pardon Certificates
After a several month delay, the Justice Department has opened the online application process for those persons eligible to receive certificates indicating that their marijuana-related convictions have been pardoned by the President. The website began accepting applications hours after a notice published in the Federal Register stated that the Office of the Pardon Attorney had “developed the subject form to collect information from potential pardon recipients.” In its notice, the Office estimated that as many as 20,000 people may apply to receive pardon certificates.

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CannaBeat – February 24, 2023

CannaBeat is a curated biweekly selection of top news stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Twitter Becomes First Social Media Platform To Allow Cannabis Ads In U.S.

On February 15, 2023, Twitter became the first major social media platform to remove their prohibition on the marketing and advertising of cannabis brands and products. Twitter’s announcement describes how they look to expand the opportunities for one of the most influential markets that utilizes its platform for the exchange of ideas, experiences, and overall business development. Naturally, the new opportunity comes with a list of rules and restrictions which can be found on their updated Cannabis Ad Policy. For example, the cannabis business must have the proper license, prohibit targeting anyone under 21, must not use characters, celebrities, or other icons appealing to minors, and can only target jurisdictions where they are legally allowed to operate. The most restrictive and slightly counter-intuitive rule states “advertisers may not promote or offer for sale of cannabis.” This could prove difficult to navigate but not impossible.

Even with these restrictions, Emerge Attorney Delia Rojas believes that “cannabis businesses will seize this opportunity while most other large social media competitors still flat out ban cannabis advertising and deactivate accounts.” It is unquestionable that social media plays a huge role in any businesses’ advertising plan. Forbes reported that some estimate 20 million tweets about cannabis topics were posted in the past year. With 37 states passing some form of cannabis regulatory structure, and more states looking to join the club in 2023, this is a long overdue and applauded step forward.

Other Noteworthy News

WA Senate Passes Bill to Bar Hiring Discrimination For Cannabis Use
Washington employers would be prohibited from refusing to hire a potential worker solely because of a drug test showing they had used cannabis under a bill that passed the state Senate on Wednesday. Washington voters approved recreational marijuana in 2012 through Initiative 502. More than a decade later, though, as more states have moved to legalize the drug, Washington employers can still screen out applicants who use cannabis. If Senate Bill 5123 becomes law, Washington would join several other states that have enacted laws shielding employees from workplace penalties for off-duty cannabis use. The bill passed the state Senate on a 28-21 vote Wednesday, sending it to the House for further consideration. In 2019, Nevada became the first state to stop employers from rejecting an applicant because of a drug test showing cannabis use. Last year, California Gov. Gavin Newsom signed into law a bill barring discrimination in hiring, firing and other conditions of employment if a worker uses cannabis while off duty.
Legalized Marijuana Proposal Unveiled By Iowa Democrats
Marijuana would be legal for recreational use, previous convictions for non-violent possession charges would be removed from an individual’s criminal record, and the state’s medical cannabis program would be expanded under legislation introduced Tuesday by Democratic state lawmakers. The proposal is not likely to become state law any time soon, since Republican state lawmakers in leadership and Gov. Kim Reynolds have in the past opposed any efforts to legalize marijuana in Iowa. Nationally, 21 states have legalized recreational marijuana, including Iowa neighbors Missouri and Illinois. Minnesota state lawmakers are considering legislation to legalize marijuana there. “It is time,” said Iowa Rep. Jennifer Konfrst, a Windsor Heights resident and leader of the minority-party House Democrats. Konfrst argued that legalizing marijuana would keep sales tax revenue in Iowa instead of sending it to other states, it would preserve state resources that currently go toward enforcing marijuana laws, and it would increase the quality of life for Iowans with chronic illnesses.
North Carolina Senate Panel Approves Medical Marijuana Bill
A North Carolina legislative committee on Tuesday approved a bill that would legalize medical marijuana in the state. The measure, known as the North Carolina Compassionate Care Act (Senate Bill 3), was approved by the Senate Judiciary Committee with little debate among senators, according to media reports. The bipartisan bill was filed on January 25 with sponsorship from Republican Sens. Bill Rabon and Michael Lee and their Democratic colleague Sen. Paul Lowe. If passed, the bill would legalize the medicinal use of cannabis for patients with one or more specified qualifying serious medical conditions such as cancer, ALS, Parkinson’s disease, epilepsy, multiple sclerosis, post-traumatic stress disorder and others. Unlike the more comprehensive medical marijuana programs in many other states, however, the bill does not authorize the use of medical marijuana by patients living with chronic pain.
Delta-8 Brouhaha Creates Marijuana Opportunity In Next Federal Farm Bill
If Congress can’t (or won’t) bundle marijuana reform with the F-35 fighter jet and nuclear submarines, why not food stamps and corn subsidies? Among the pressing items on federal lawmakers’ 2023 to-do lists is renewing the Farm Bill. Every five years, the sprawling, multipart, $428 billion monster that deals with nutrition and rural development as well as what American farmers grow and how they grow it is revamped. And the 2018 Farm Bill that legalized hemp and triggered the boom in delta-8 THC and other intoxicating hemp-derived cannabinoids expires in September. Federal marijuana prohibition means the American cannabis industry still exists separately from federal farm programs and the U.S. Department of Agriculture. Despite this, and despite the many other loud and needy lobbies competing for attention, there’s a growing push in Washington DC for Congress to consider marijuana reform during Farm Bill discussions, according to multiple lobbyists and a federal lawmaker who spoke with MJBizDaily.
The Cannabis Experience Becomes First Marijuana-Licensed Consumption Bus
The Cannabis Experience in Denver has become Colorado's -- and the nation's -- first marijuana-licensed consumption bus. As the cannabis industry continues its blazing trail, local marijuana users can enjoy safe, legal cannabis tours, airport transportation and private cannabis-friendly party buses. The Cannabis Experience will offer transportation services to Denver International Airport along with private party bus rentals with food and art themes such as "Toking and Tacos," and "RiNo Mural Tours." The service also provides tours of the city and tourist attractions. "The Cannabis industry is extremely regulated and not diverse. It took us almost a year to become operational, so we are excited to be the country's first safe, legal, licensed mobile hospitality business," Sarah Woodson said. "We are social equity and African American. We will have amazing tours, and grow our fleet over the next 24 months and work on expanding into other local cities such as Aurora. We are helping move the needle forward in the legalization fight. We are proud to be in the cannabis industry." Visits to cannabis grows and dispensaries are also included in the services as bookings are being accepted now for the grand opening, which is set for March 1.

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CannaBeat is a weekly brief on news, business, and culture in the cannabis industry curated by members of Emerge Law Group's distinguished Cannabis Industry Group.
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CannaBeat – February 10, 2023

CannaBeat is a curated biweekly selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

North Bay Cannabis Operators Back California Bill to Allow Food and Music at Dispensaries

A bill has been introduced in California that would allow a retailer to offer a similar experience as a local venue or cafe (Assembly Bill 374). Retailers with approved consumption lounges could offer the sale of non-cannabis infused foods, non-alcoholic beverages, and tickets to live music. This would be comparable to general venues, providing the cannabis space with equal opportunity for tourism and potentially “nightlife.”  Furthermore, allowing for larger or more inclusive events would permit for further educational platforms and work to promote the industry in a positive way. There are other events such as music festivals that have included these types of platforms such as Outside Lands in San Francisco (see “Grass Lands”). This bill would allow smaller and similar events accessible to the local community.

Although the bill looks to expand opportunity, whether or not it will do so is unknown. As written, the proposed bill states that “a local jurisdiction may allow the retailer or microbusiness….” This would leave the decision up to the local governments which has proven difficult in California (56% of jurisdictions do not allow any type of commercial cannabis operations, as shown HERE). California Emerge attorney Delia Rojas commented: “Given the tough market, I could foresee certain jurisdictions being open to these types of consumption lounge models, but the bill will likely receive the same local government pushback as similar past bills.”

Other Noteworthy News

GOP Congressman Files Marijuana Rescheduling Bill Amid Ongoing Biden Administration Review
A GOP congressman has refiled a bill to move marijuana from Schedule I to the less restrictive Schedule III under federal law. Rep. Greg Steube (R-FL) introduced the proposal on Friday. This is the third session in a row that he’s pushed for the modest reform, titled the “Marijuana 1-to-3 Act.” The two-page bill states that “the Attorney General of the United States shall, by order not later than 60 days after the date of enactment of this section, transfer marijuana…from schedule I of such Act to schedule III of such Act.” Advocates are strongly pushing for removing cannabis from the Controlled Substances Act (CSA) altogether, but the congressman has argued that rescheduling could be an interim move to promote research into the plant and its components. “As marijuana is legalized for medical and recreational use across the United States, it is important that we study the effects of the substance and the potential impacts it can have on various populations,” he said in 2019. “By rescheduling marijuana from a schedule I controlled substance to a schedule III controlled substance, the opportunities for research and study are drastically expanded.”
Gun Ban for Marijuana Users Is Unconstitutional, U.S. Judge Rules
The ban on gun ownership for marijuana users in Oklahoma has been declared unconstitutional by a federal judge, as it violates the Second Amendment right to bear arms. U.S. District Judge Patrick Wyrick, on February 3, declared that an indictment against a man charged in August for violating a firearms ban was dismissed as it violated the Second Amendment of the U.S. Constitution. Jared Michael Harrison was taken into custody by Lawton police, Oklahoma, in May 2022 during a routine traffic stop. The search of his car uncovered a loaded revolver and marijuana. Harrison informed the officers that he was heading to his job at a medical marijuana dispensary but lacked the mandatory state-issued medical marijuana card. Harrison's lawyers argued that their client's Second Amendment right to bear arms was violated by a federal law prohibiting "unlawful users or addicts of controlled substances" from possessing firearms. They claimed the law, focused on drug users or addicts, was inconsistent with the historical tradition of firearms regulation, citing the U.S. Supreme Court's ruling in the New York State Rifle & Pistol Association v Bruen case, which set new standards for interpreting the Second Amendment. In contrast, federal prosecutors argued that the law, focused on disarming drug users, is consistent with the longstanding tradition in America of disarming "presumptively risky persons" such as felons, the mentally ill, and the intoxicated.
The Lexi to Become First “Cannabis Friendly” Hotel in Vegas
Coming to the Las Vegas Strip this spring, the Lexi seeks to offer a ‘cannabis-forward’ hospitality experience – and topless sunbathing. Rose Dykins reports. Following a multimillion-dollar renovation, the Artisan Hotel Boutique in Las Vegas is reopening as the Lexi, a fun-loving property that embraces cannabis-friendly hospitality. Owned by Elevations Hotels and Resorts, the Lexis is the first of its kind in Vegas. Situated moments from the Vegas Strip, the property has 64 all-new rooms, with its fourth floor designated as cannabis-friendly. A “cheeky” hotel concept that seeks to normalise cannabis in travel, the Lexi will also offer a high-end experience, an exciting culinary and cocktail offering and a season of spring-summer pool party events. The Lexi’s Cajun-inspired steakhouse will be overseen by executive chef Jordan Savell of Hell’s Kitchen fame.
Mint to Host 3-Day Cannabis Party Near State Farm Stadium for Super Bowl
Mint Cannabis will be holding a “Big Game” party with a three-day festival near State Farm Stadium in Glendale during Super Bowl weekend. The Arizona-based company’s Cannabis Consumption Park will be similar to how a beer garden is run, offering activities, infused foods, cannabis vendors with complimentary samples, live musical performances, comedy skits, celebrity appearances and more for people ages 21 and up, according to a press release. Located off 99th Avenue and Thomas Road, the “Mint Mall” will feature many leading cannabis brands for guests to sample. It will run from Feb. 10-12. “Having a cannabis-friendly celebration at the nation’s biggest sporting event of the year is a big testament to how far our industry has evolved in a relatively short time,” cofounder and CEO Eivan Shahara said in the release. “Our large setup will be a reflection of our five dispensaries in the Valley, where our expert budtenders cater to the needs of medical patients, experienced recreational users, and curious first-timers.” At 4:20 p.m. on Saturday, 10,000 complimentary pre-rolls will be lit in an attempt to break the Guinness Book record for the World’s Largest Smoke Session, followed by a live concert.
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CannaBeat – January 27, 2023

CannaBeat is a curated biweekly selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

FDA Concludes That Existing Regulatory Frameworks for Foods and Supplements Are Not Appropriate for Cannabidiol, Will Work With Congress On a New Way Forward

The US hemp industry has been waiting eight years – since the  2014 Farm Bill opened a window for legal hemp-derived cannabinoid products –to see how the Food and Drug Administration (“FDA”) plans to regulate consumable CBD products. Although the FDA has always insisted that consumable CBD products violate the Food, Drug & Cosmetic Act, they have largely only enforced against CBD manufacturers who make egregious medical claims about their products.  In 2019, after the 2018 Farm Bill formally legalized and regulated hemp, the FDA seemed to offer the industry an olive branch when it convened a working group to “explore potential pathways for dietary supplements and/or conventional foods containing CBD to be lawfully marketed.”

Nearly four years later, the FDA has thrown up its hands and punted to Congress.  On January 26, 2023, the FDA concluded that it will not pursue a legal pathway for these products, but instead look to Congress to set the initial regulatory structure through new legislation. In the meantime, the FDA has emphasized that it will continue to take action against CBD manufacturers “when appropriate.”

The CBD industry now must depend on a divided and dysfunctional Congress to learn its fate, and will continue to occupy a dubious legal landscape, as it has for eight years, and four years since CBD was “legalized,” unless and until Congress acts.

“This decision is a double-edged sword,” according to Emerge Law Group’s Alex Berger, “on one hand, consumable CBD products remain federally illegal, with no pathway to legality.  On the other, FDA has not taken serious enforcement actions against conscientious manufacturers who avoid making unapproved and unfounded medical claims.  Nor do they have the resources to do so, given the ubiquity of CBD out there.  If FDA had made new regulations requiring everyone go through a complex and expensive approval process, it could have left the industry worse off.”

Other Noteworthy News

Ninth Circuit Affirms Dismissal of RICO Claims Relating to Cannabis
Plaintiff Francine Shulman took advantage when recreational marijuana was legalized in California and started a cannabis cultivation operation. At some point, she needed financial back and guidance, so she partnered with Defendant Todd Kaplan. They and their various business entities entered into agreements, which Shulman ultimately claims were used to defraud her out of her assets and licenses. Shulman filed a lawsuit in the Central District of California, a federal court, because two claims involved violations of RICO and two other claims involved violations of the Lanham Act (both federal statutes). […] n the January 18, 2023 Opinion and Order, the three-judge panel unanimously affirmed Judge Birotte’s ruling. They held Shuman lacked standing to bring RICO claims because in order to establish statutory standing under the statute, a plaintiff must show: “(1) that his alleged harm qualifies as injury to his business or property; and (2) that his harm was by reason of the RICO violation, which requires the plaintiff to establish proximate causation.” However, because Shulman’s “business or property” entails the cultivation, sale, and marketing of cannabis – which is all illegal under federal law – her “harm” wasn’t something that could then be remedied by federal law.
Presidential Pardons for Federal Cannabis Possession Convictions Still Unavailable
It’s time for the Department of Justice to deliver the pardon certificates that President Biden promised last fall. The President announced the issuance of marijuana-specific pardons on October 6, 2022 as part of a widely supported set of actions recognizing the folly of federal cannabis prohibition. Thousands of people with federal criminal records for simple marijuana possession are eligible for a pardon that would help them obtain employment, housing, education, and more. Unfortunately, more than three months later, the Department of Justice pardon website indicates that the applications to obtain a pardon certificate are still unavailable.
How Marijuana Companies Are Building Loyalty by Selling Seeds to Consumers
Several cannabis companies have added marijuana seeds to their line of product offerings – even though the move, at first blush, might seem counterintuitive. Why, for one, would marijuana companies want consumers to grow their own plants? Yet, there’s a logic here: Consider how people who grow their own vegetables also shop for fresh veggies at a grocery store or farmers market. “Everybody who’s got a home garden during the spring and the summer grows tomatoes. But 98% of the tomatoes they buy are at a store,” said Carl Giannone, co-founder of Trade Roots, a cannabis company based in Wareham, Massachusetts, that sells seeds direct to consumers. “If growing tomatoes makes them want to buy tomatoes, then I want to let them grow.” An increasing number of companies are offering seeds thanks to a change in federal policy. The move can be profitable for some, while others are doing it to build brand loyalty and share genetics.

The CannaBeat Podcast

From The Archives: Episode 4 - Commercial Lending to Cannabis Companies
Delia and Jay discuss commercial loans for cannabis companies with North Bay Credit Union's chief lending officer Robert Goebel

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CannaBeat – January 13, 2023

CannaBeat is a curated biweekly selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Washington Bill to Protect Workers from Being Fired for Marijuana Will Get a Committee Hearing Next Week

Cannabis laws can change quickly.  In many jurisdictions, the changes occur so quickly that cannabis legalization sometimes conflicts with laws and regulations in unrelated areas, such as employment.  In some states with legal cannabis, people are still being denied employment based on inactive THC metabolites found in pre-employment drug tests. These metabolites result from past cannabis usage which could be weeks or more before the drug test. Washington is working to address this issue by drafting legislation prohibiting employment discrimination based on these types of tests. State cannabis laws create a “disconnect between the potential employees’ legal activities and an employer’s hiring practice.” The Washington legislation states:

Applicants are much less likely to test positive or be disqualified for the presence of alcohol on a preemployment screening test compared with cannabis, despite both being legally allowed controlled substances. The legislature intends to prevent restricting job opportunities based on an applicant’s past use of cannabis.

The legislation will have a committee hearing this week. Washington is not the only state that has taken steps to protect the rights of cannabis consumer employees. California, Connecticut, Missouri, Montana, Nevada, New Jersey, New York and Rhode Island have each enacted statutes that limit an employer’s ability to refuse employment based on past and/or off-duty adult-use (recreational) cannabis usage. There are other states that protect medical rights but not adult-use. See map provided by Cal NORML Here.

Other Noteworthy News

High Winds, Flooding Shutter Cannabis Operations Across California
The historic storms pummeling California have caused widespread fallout for cannabis operators across the state and are disrupting operations and possibly supplies. As days of high winds and catastrophic rains batter the coast, some marijuana companies have temporarily closed operations and shored up their facilities in a desperate attempt to lessen the damage. Several businesses told MJBizDaily their operations have been flooded, causing untold economic setbacks. Others have reported product losses as heavy rains damaged crops. Widespread power outages have also halted production lines and left plants vulnerable to mold and other contaminants. Road closures and dangerous conditions have prevented several operators from even accessing their operations. This storm system, which was expected to dissipate by Tuesday afternoon, is the latest climate disaster in California. In late September, a heat wave wreaked havoc on the state’s cannabis industry, coming on the heels of another challenging wildfire season. Washed-out roads are preventing workers from accessing cultivation facilities, which could lead to lost sales and delays in production, including packaging and trimming of flower. That, in turn, could cause marijuana supply-chain disruptions and leave some retail store shelves empty. The storm, which started on Sunday, has forced tens of thousands to evacuate and killed at least 15 people statewide. More than 34 million are under a flood watch….
New Cannabis Laws for 2023 Kick in Across The US
Tens of millions of cannabis consumers will enjoy broadening civil rights and access to weed, thanks to a collection of new laws and regulations taking effect this week and beyond in at least 11 US states. Voters, regulators, and lawmakers across the US enacted laws, rules, and executive orders that take effect this week from sea to shining sea. Here’s the state-by-state rundown of weed laws taking effect in 2023.
U.S. Virgin Islands Lawmakers Pass Cannabis Legalization Bill
Lawmakers in the U.S. Virgin Islands last week passed legislation to legalize recreational marijuana, bringing the number of states and territories in the country that have legalized the use of cannabis by adults to 21. The legislation was passed in the U.S. Virgin Islands Senate on December 30 by a veto-proof majority vote of 11-1. Governor Albert Bryan, who has expressed strong support for cannabis policy reform, is expected to sign the legislation, according to media reports. The legislation was approved in conjunction with another bill that expunges past convictions for marijuana-related offenses, which was passed by senators on Friday with a unanimous vote. “Although there have been many politically driven false narratives about this cannabis legislation, I am proud of the work done by the Senators of the 34th Legislature, community stakeholders and advocates, all of who contributed to the structuring of the final bill voted upon in today’s Session,” Sarauw said in a press release posted to Facebook. “The body did its due diligence in protecting the masses and the best interest of our residents by ensuring that locals and minorities are not locked out of industry and have any opportunity to participate in its economic potential.”

The CannaBeat Podcast

From the Archives: Episode 2 - Has Prop. 64 Been Good for a Mendocino Cultivator?
It's been just over 6 years since CA Prop 64! Listen to CannaBeat's second episode, which reflects on how Prop 64 impacted key players in California's cannabis industry.

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CannaBeat – December 30, 2022

CannaBeat is a curated biweekly selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

Bipartisan Congressional Lawmakers Tout 2022 Marijuana Reform Accomplishments, Predict “Further Progress” Next Session

The fight for federal reform on cannabis laws has been a tireless one to say the least. The states have outgrown the federal structure surrounding cannabis, which is evidenced by 37 states with a legal medical program and 21 states with an adult-use program. This past year shows that movement is possible, although it’s been in baby steps. A Congressional Cannabis Caucus Memorandum has been released highlighting the federal victories of 2022. (Note: Memo included in article) Earlier this month Biden signed the first-ever standalone marijuana reform legislation promoting research, issued a marijuana pardon in October, and directed administrative review of the federal scheduling of cannabis.  While cannabis reform is still far from the finish line, each of these is a step forward. Additionally, there were numerous bills introduced into both the House and the Senate pushing for descheduling, expungement, consumer and business protections, and more, demonstrating the overall shift in state and federal support for a legal cannabis industry.

As we move into the next session, it seems like we will once again be at a stalemate between the federal chambers, some congressional members are optimistic. Overall, a majority of both the House and the Senate favors reform, which could lead to further progress in 2023. The Congressional Cannabis Caucus wrote:

The Congressional Cannabis Caucus has brought together a broad coalition of members from diverse communities around the country who all agree: it is time for Congress to finally reform federal cannabis policy. There will be some big changes in the next Congress, but one thing that will not change is that a majority in both the House and the Senate favor reform. We are optimistic for our ability as a caucus to help navigate these changes and make further progress. 

The cannabis industry desperately needs some sort of federal reform in order to be a profitable industry. Businesses continue to be overwhelmed by taxation, excessive regulatory oversight, and federal restrictions, and there is only so much each state can individually do.

Other Noteworthy News

Cannabis Industry Gives Back This Holiday Season
Seasonal slogans like “holiday spirit” and “the season of giving” are an annual reminder to give back to those in need. Here are just a few great examples of how cannabis businesses continue to give back. Ayr Wellness, which has dispensaries operating in Arizona, Florida, Massachusetts, Nevada, New Jersey, and Pennsylvania, announced on Dec. 5 that it would be starting its “12 Days of Giving” campaign. While every purchase at its dispensaries will collect $1.12 per transaction to two of its partner organizations, Freedom Grow and Minorities for Medical Marijuana Project Clean Slate Initiative. Overall, Ayr Wellness aims to reach a goal of collecting more than $100,000, which will go toward supporting cannabis prisoners and their families, as well as various advocacy efforts and expungement programs. […] Florida-based AFC Foundation, which offers financing in the cannabis industry, recently made a donation to Georgia-based Corners Outreach organization. In the past, AFC Foundation has also contributed donations to groups like Pennsylvania Court Appointed Special Advocate Association, Yo Soy Ella, and The Weldon Project. According to AFC Foundation president and co-founder Robyn Tannenbaum, it’s essential for the company to give back. […] Michigan-based Puff Cannabis gave out more than 1,700 turkeys prior to Thanksgiving. Now, the brand announced its “Jackets for Joints” event. Running between Dec. 5-18, the campaign is asking for coats and jackets that fit kids between the ages of three to 12. In exchange, Puff is giving out one jar of pre-rolls…..
NYC Starts Legal Weed Sale Intime For the New Year, and the Profits Go to Charity
New York state will kick off legal recreational marijuana sales on Dec. 29, just in time to meet its goal of launching regulated, taxed sales before the end of the year. Housing Works, a New York City-based nonprofit that runs a chain of thrift shops, will launch sales at a 4,400-square-foot Manhattan dispensary at 1 Astor Place, Governor Kathy Hochul said on Wednesday. All proceeds will be directed to the nonprofit. The charity, which provides services to people who were formerly incarcerated and those living with HIV or AIDS, is one of three dozen groups and individuals awarded the state’s first retail licenses last month. “Their decades of work with marginalized communities make them a perfect partner in the effort to ensure that New York’s cannabis market provides meaningful opportunities to those most impacted by the failed cannabis criminalization policies of the past,” said State Senator Liz Krueger in a statement. The launch represents more than just what could be the world’s second-largest legal marijuana market outside of California’s, but a stab at getting regulations right where other states have failed. New York has taken a novel approach that aims to include African Americans — disproportionately arrested for marijuana in the past — in the legal industry. It’s also pledged to separate suppliers from retailers in a so-called two-tier system, in order to try and create a lot of “mom-and-pop” small businesses.
New Jersey Announces $10 Million “Cannabis Equity” Grant for Startup Companies
Startup companies in New Jersey say the process of opening a cannabis business is challenging, especially in communities negatively impacted by the War on Drugs. Some feel left out because most weed retailers currently approved by the state are large corporations formed outside New Jersey. They also say it’s harder to secure funding and real estate sometimes due to the stigma around cannabis.
Now, startups can procure some capital after New Jersey announced a $10 million program called the Cannabis Equity Grant. The New Jersey Economic Development Authority says awardees can use the money for early-stage expenses and technical training. Out of the $10 million allotted to the program, $6 million will go to social equity applicants — people with prior cannabis convictions and those who live in economically disadvantaged areas as defined by the state. “New Jersey is committed to building a thriving and inclusive cannabis sector that maximizes opportunities for underserved communities and people impacted by the War on Drugs, and this program is a major step toward that goal,” said NJEDA CEO Tim Sullivan.
U.S. FDA Weighs Regulations On Cannabis Products In Food and Diet Supplements
The U.S. Food and Drug Administration may finally weigh in with potential food and food supplement guidelines on the use of legal cannabis-derived products in the coming months, some four years after hemp became legal under federal law, The Wall Street Journal reported Tuesday. The FDA will decide within months on how legal cannabis and cannabis-derived cannabidiol (CBD) should be regulated, officials told the newspaper. “I don’t think that we can have the perfect be the enemy of the good when we’re looking at such a vast market that is so available and utilized,” FDA adviser Norman Birenbaum said in the article. “You’ve got a widely unregulated market.” The FDA’s effort comes after a death of a child in Virginia who had eaten gummies containing Delta-8, an ingredient made from hemp. “The safety profiles around these products are not what they are generally accustomed to and not the same as what they get from other products when they walk into a wellness store or grocery store or even a gas station,” Birenbaum said. Hemp was legalized in the annual Farm Bill back in 2018, but the FDA has not published any safety guideline or labeling requirements for CBD partly because cannabis remains a prohibited drug under federal law.

The CannaBeat Podcast

Copernican Solutions for Hemp & Cannabis
Six years after Proposition 64, cannabis consultant Joanna Cedar explains why cannabis “legalization” caused most Sonoma County cultivators to exit the industry. In her analysis, Sonoma County’s ordinance is the worst offender, because it prohibited commercial cultivation on parcels smaller than 2 acres. With that decision, Sonoma County eliminated the cottage license-type before anyone had a chance to apply. Prop. 64 isn’t blameless, of course, but nothing hurt Sonoma’s cultivators like that ordinance: at one point, as many as 5,000 parcels were used for growing cannabis. Over ninety percent (90%) are now out of the regulated market, because they shuttered or because they’re selling exclusively to the illicit market. But on parcels large and small, through California, hemp cultivation persists. And there’s a nationwide market for hemp. Someone can drive a tractor trailer filled with hemp from California to Florida, as easily as onions. Hemp is underregulated, however, with no or minimal age-gating, testing and labeling standards. Joanna Cedar’s “Copernican solution” to the mis-regulation of cannabis and hemp is to unite the two under one regulatory scheme. In truth, they are united in nature (they’re two names for the same plant), but our mis-regulation of the plant has become baroque.

Subscribe to CannaBeat to receive a curated biweekly selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group, delivered straight to your inbox.

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CannaBeat is a curated selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.
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The CannaBeat Podcast –  Copernican Solutions for Hemp & Cannabis

The CannaBeat Podcast – Copernican Solutions for Hemp & Cannabis

Six years after Proposition 64, cannabis consultant Joanna Cedar explains why cannabis “legalization” caused most Sonoma County cultivators to exit the industry.

In her analysis, Sonoma County’s ordinance is the worst offender, because it prohibited commercial cultivation on parcels smaller than 2 acres. With that decision, Sonoma County eliminated the cottage license-type before anyone had a chance to apply. Prop. 64 isn’t blameless, of course, but nothing hurt Sonoma’s cultivators like that ordinance: at one point, as many as 5,000 parcels were used for growing cannabis. Over ninety percent (90%) are now out of the regulated market, because they shuttered or because they’re selling exclusively to the illicit market.

But on parcels large and small, through California, hemp cultivation persists. And there’s a nationwide market for hemp. Someone can drive a tractor trailer filled with hemp from California to Florida, as easily as onions. Hemp is underregulated, however, with no or minimal age-gating, testing and labeling standards.

Joanna Cedar’s “Copernican solution” to the mis-regulation of cannabis and hemp is to unite the two under one regulatory scheme. In truth, they are united in nature (they’re two names for the same plant), but our mis-regulation of the plant has become baroque.

List to the CannaBeat Podcast Here:

 

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CannaBeat – December 16, 2022

CannaBeat is a curated biweekly selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.

Emerge’s Hot Take

During this year’s midterm election, two states approved recreational cannabis use. At this point, 39 states, and the District of Columbia (“DC”) have legalized cannabis for medical use, and 21 states and DC have also legalized recreational use; leaving 11 states banning cannabis altogether. See current map provided by MJ Biz Daily HERE. As the country awaits Congressional action on the sale and use of cannabis, these numbers beg the question… “what about interstate commerce?” Currently states limit cannabis sales within state lines under their state cannabis laws. These state-level restrictions are separate and aside from the federal controlled substances act and some commentators have asked whether such state restrictions are constitutional in the face of the dormant commerce clause. Multi-state operators must have complete and separate businesses in different states that cannot conduct business between each other in most circumstances. What now? Could an Oregon lawsuit push things forward?

Other Noteworthy News

In Face Of Reports That Marijuana Banking Won’t Make It In Spending Bill, Lawmakers And Stakeholders Make Final Push
Amid swirling reports that marijuana banking provisions may be excluded from a yet-to-be-filed omnibus spending bill, some lawmakers are pushing back, while advocacy groups and industry stakeholders are stepping up their calls for action in what’s left of Congress’s lame duck session. To be clear, the text of the final appropriations package has not been released and negotiations are ongoing. But it was reported on Tuesday that appropriators have reached an agreement on a “framework” for the legislation. What’s troubling for supporters, however, is a brief post from a Punchbowl News reporter saying that the Secure and Fair Enforcement (SAFE) Banking “will not be included” in the package. This comes on the heels of comments from the GOP Senate whip who said he’s not expecting the cannabis proposal to be attached to the spending bill, either. And Senate Minority Leader Mitch McConnell (R-KY), who applauded the exclusion of SAFE Banking from a must-pass defense bill last week, has repeatedly signaled that he’d fight against attempts to advance it through appropriations as well. In his latest comments on the spending package on Wednesday, McConnell said that “poison pills…will need to stay away from the process.” “Even then, the calendar will still make this a challenging sprint,” the minority leader said. “If a truly bipartisan full-year bill without poison pills is ready for Senate passage by late next week, then I’ll support it… Otherwise, we’ll be passing a short-term continuing resolution into the new year.”
DOJ Official Details Plans To Provide Presidential Marijuana Pardon Certificates Through 10 Minute Application Process
U.S. Pardon Attorney Elizabeth Oyer said on Tuesday that the Justice Department will soon give people the opportunity obtain certificates for presidential marijuana pardons through a soon-to-be-launched application process that they expect will only take 10 minutes to complete. The official also weighed in on the fact that the President Joe Biden’s mass pardon excluded immigrant with citizenship status issues, saying it’s still possible for them to receive relief if they apply through the traditional, individualized clemency process. During a panel discussion organized by Ohio State University’s Mortiz College of Law, Oyer talked about the practical and symbolic impact of the president’s cannabis clemency, the limitations of the relief, plans to certify eligible pardons and her office’s current priorities. Oyer, who said over the summer that it was ultimately up to the president to facilitate large-scale cannabis clemency, emphasized that Biden’s recent pardon for roughly 6,500 Americans was “self-effectuating,” meaning that they were officially forgiven the moment that the proclamation was signed in early October. But even so, the proclamation gave DOJ a directive to follow-up on the pardons with a certification process.
NORML Issues Report Highlighting 2022 State Legislative Victories
Lawmakers and voters enacted over 40 laws liberalizing cannabis policies in over a dozen states in 2022, according to a report issued today by the National Organization for the Reform of Marijuana Laws (NORML). Three states — Maryland, Missouri, and Rhode Island — enacted laws legalizing adult-use marijuana possession and regulating retail cannabis markets. In total, 21 states — comprising nearly one-half of the US population — now have laws on the books regulating adult use marijuana production and retail sales. Lawmakers in several states, including California, Colorado, Illinois, and Oregon, continued to take steps to provide relief to those with past marijuana convictions — either by providing mass pardons or by enacting laws facilitating the mass expungement of prior convictions. Calculations by NORML estimate that some 2 million people have had their marijuana-related convictions either pardoned or expunged in recent years following the adoption of these policies.

The CannaBeat Podcast

Senator Scott Weiner and SB 1186 – Medical Access
It’s estimated that 75% of cannabis transactions in California occur outside the regulated market. Dwell on that for a moment: Most cannabis transactions in California fall outside the regulated market. We use euphemisms to describe this: illicit, illegal, grey market, unregulated, legacy. Proposition 64, which created a regulated California cannabis market, passed in 2016, and now, almost 6 years later, three in four cannabis sales avoid the system Proposition 64 created. Why? Most jurisdictions ban the system that Prop. 64 created. Even though Prop. 64 passed, two-thirds of California cities prohibit what Prop.64 created: cannabis manufacture, distribution, retail, cultivation, and testing.
Listen to our discussion with Senator Weiner on his newly chaptered SB 1186 which requires local jurisdiction to allow for medical delivery within the jurisdictional lines, even if they ban overall commercial cannabis activities.

Subscribe to CannaBeat to receive a curated biweekly selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group, delivered straight to your inbox.

CannaBeat by Emerge Law Group
CannaBeat is a curated selection of top new stories impacting business, research, and culture in the cannabis industry, crafted by Emerge Law Group.
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The CannaBeat Podcast – Commercial Lending to Cannabis Businesses

The CannaBeat Podcast – Commercial Lending to Cannabis Businesses Is Alive w/ Robert Goebel of North Bay Credit Union 

North Bay Credit Union was a pioneer in providing commercial banking services to California cannabis companies. According to, NBCU’s Robert Goebel, the reason is simple: “We were formed as Sonoma Grains Credit Union[.] We were formed to help farms and agriculture and to us, cannabis is another crop.” NBCU’s banking platform for cannabis companies is called Higher Growth. Recently, NBCU launched a commercial lending program for cannabis companies.  

For years the absence of commercial lending has hurt cannabis businesses and hindered expansion. When companies could find loans, high interest rates and fees often burned through the principal. Cannabis companies commonly pay 30 or even 40 percent interest. The lack of commercial banking and lending equates to a heavy tax on these businesses.  

To date no consistent or reliable alternative financial system exists to alleviate the lending issue. But that’s not a barrier for NBCU, which is now lending to state-legal cannabis companies in Washington, Oregon and California. On this episode of The CannaBeat Podcast, Robert Goebel, NBCU’s Chief Lending Officer explains why NCBU is opening this line of business (even in the absence of a federal or state legislative solution); what borrowers can expect; and, how he sees the program expanding in the future.  

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FRANCHISE LAW

Franchisors

Franchise law is a heavily regulated area of law.  We help clients expand their businesses through franchising and other distribution methods. We have experience in many industries including, restaurants, health, and beauty, alcohol, and cannabis among others. Our representative services include the following:

Franchisees

We also help potential franchisees interested in buying a franchise. We are able to assist with evaluation of franchise opportunities with respect to:

Alternative Structures

However, not all businesses are suited to franchise. We are also experienced with helping clients structure alternative distribution methods to prevent classification as a franchise.

MERGERS AND ACQUISITIONS

Our M&A attorneys are highly experienced in counseling clients who are considering acquisitions or exit strategies.  We have many years of experience handling deals of various types and sizes, ranging from sales of small closely-held business, private companies, and publicly-traded corporations.  We have represented business owners, private equity firms and investment banks in a wide range of industries. 

We have a deep business bench, and Emerge attorneys have handled transactions of all shapes and sizes.  Whether your deal is valued at $100,000 or $100,000,000, our experienced attorneys will guide you through the deal process.

We understand the intensity, technical skill and judgment needed to get deals done, and we provide our clients with timely, practical and cost-effective legal advice.  We are highly capable in all aspects of M&A, including the following:

CANNABIS INDUSTRY

Emerge Law Group is highly experienced in the cannabis industry.  We have helped many clients obtain state licenses and local permits to operate cannabis businesses throughout California, Oregon, and Washington.

Emerge attorneys were instrumental in the drafting and passage of Oregon Measure 91, legalizing marijuana in the State of Oregon, and have represented cannabis businesses well before many law firms were willing to enter the cannabis industry. As a firm that has provided legal services in the cannabis space for many years, we are familiar with the unique and complex issues businesses and individuals face in an emerging and highly regulated industry.

We regularly help clients with:

Cannabis laws and rules are also regularly changing.  Members of our team are dedicated to attending legislative hearings, state agency and local city and county meetings to stay up-to-date on any new changes and how to adjust to any new changes.

See our Cannabis Industry page for more information.

PSYCHEDELICS

There is tremendous excitement about the potential for psychedelic drugs to benefit a wide variety of populations, including terminally ill patients suffering with anxiety and depression. Until recently, psychedelic substances have been accessible only in the illicit market and are illegal under federal and state to manufacture, distribute, or possess. These substances have, since 1970, been treated as having no legitimate medical use, and no commercial application. As such, no one invested in this area or required legal services, outside of the criminal context.

Today, researchers in a multitude of clinical studies are proving the medical safety and efficacy of these medicines, with the objective of changing the treatment of these substances under the Controlled Substances Act. Companies are now actively raising money to develop intellectual property and seize market opportunities associated with psychedelic drugs.

In addition, advocates at the state and local levels are not waiting for the rescheduling of these substances and are active in undertaking efforts to decriminalize these substances and/or make them affirmatively legal under state and/or municipal law. Decriminalization already has occurred in cities including Denver, Oakland, Santa Cruz, and Ann Arbor. Oregon is poised to be the first state to make psilocybin therapy affirmatively legal. Emerge Law Group is working with a wide array of clients pushing forward in this emerging area.

See our Psychedelics Practice Group page for more information.

TAXATION

CORPORATE AND PARTNERSHIP TAX

Businesses of all kinds benefit from a customized but systematic approach to structuring legal relationships. Emerge Law Group helps businesses and business owners with a variety of tax planning matters.

Representative client services include:

ESTATE PLANNING

Estate planning encompasses everything from a will and power of attorney to combined estate and business succession planning. In almost all cases, the purpose of the plan is to help the client protect those they care about most in the event they can no longer be there for them.

Emerge Law Group has experience with a wide range of tools used in estate planning, including wills, trusts, and family business entity planning.

TAX CONTROVERSIES

Emerge Law Group can assist with the resolution of difficult tax controversies. Our areas of emphasis and experience include:

REAL ESTATE TRANSACTIONS

Emerge Law Group assists clients with a wide range of real estate transactional matters.  We regularly help clients with:

LAND USE

Emerge Law Group also assists clients with all aspects of local government land use and development processes, ranging from preliminary property analyses and building permit issues to complex land use reviews and hearings. Our attorneys are experienced in obtaining land use entitlements and development permits for a wide range of uses.

We regularly help clients with:

Above all, we understand the value of working with cities and counties to enhance communities while developing the land to its potential. We strive to create solutions to land use issues that serve to better our clients and the communities in which they live and work.

LITIGATION AND ALTERNATIVE DISPUTE RESOLUTION

The attorneys in Emerge Law Group’s Litigation and Alternative Dispute Resolution practice group litigate commercial, intellectual property, and public interest matters in state and federal courts, as well as private mediation and arbitration proceedings.  Our lawyers have represented national and regional financial institutions, major media, entertainment and technology companies, and other Fortune 500 companies in a broad array of high-stakes disputes.  Our team of litigators has handled leading cases that have shaped the law in cutting-edge business, technology, free speech, and public interest impact lawsuits in trial and the courts of appeal.

We have particular expertise in handling civil litigation and regulatory enforcement matters in the cannabis and psychedelic industries.  While many firms claim expertise in the these industries, few have our depth of experience successfully litigating contract, trademark, partnership, shareholder, land use, and real estate disputes in court and arbitration.  Even fewer firms have our level of experience handling writ of mandate proceedings against the government regulators.

Our litigators practice in California, Oregon, and Washington, but have appeared in state and federal courts nationwide.  Our knowledge of our clients’ businesses, goals and concerns, and our experience litigating at the highest levels, give us unique insight into possible outcomes and pitfalls as we continuously confront issues of new impression.

No matter what the industry, we pride ourselves in achieving our clients’ objectives through efficient and creative solutions primarily designed to avoid disputes in the first place—which is always the best litigation strategy.  Many times, our clients obtain excellent outcomes before or at the earliest stages of litigation because our adversaries quickly recognize the challenges they will face in litigating against us.  When litigation is unavoidable, however, we work hard to provide our clients with both cost-efficient and “big firm” quality representation.

 

INTELLECTUAL PROPERTY

Your intellectual property (or “IP”) strategy can harness your most valuable information and intangible assets including your name, your brand, your designs, your content, your services, and your products — what makes your business stand apart in a competitive world.  We can help you evaluate and build your IP portfolio, then secure it, monetize it, and protect it.

IP encompasses multiple areas of law and different types of information or material.

Our Intellectual Property practice focuses on:

TRADEMARK

Trademarks include names, signs, logos, designs, phrases, slogans, expressions, and sometimes even colors, sounds, or smells that identify or distinguish one business compared to others.  Trademark protection is fundamental in securing your “brand.”

COPYRIGHT

Copyright covers original works of creative authorship fixed in a tangible medium of expression.  This includes literary, dramatic, musical, and artistic works, such as poetry, novels, designs, movies, songs, computer software, and architecture. Copyright does not protect facts, ideas, systems, or methods of operation, although it may protect the way these things are expressed.  Depending upon the type of work, “moral rights” (such as the right of attribution) may be implicated as well.

TRADE SECRET

Trade secret laws can vary somewhat between states, but generally trade secrets cover information, including drawings, cost data, customer lists, formulas, recipes, patterns, compilations, programs, devices, methods, techniques or processes that derive economic value from not being generally known and are the subject of efforts that are “reasonable under the circumstances” to maintain secrecy.

PRIVACY

Depending upon where you live or operate, there is a special patchwork of laws and regulations that protect and regulate personal information.  If you are handling or giving out personal or potentially sensitive information, you may be implicating privacy laws.

PUBLICITY

Publicity rights address the commercial use of an individual’s face, name, image, or likeness.  These rights vary state-to-state.  Marilyn Monroe, for example, lived in multiple states which created complex questions about her publicity rights.

Our Intellectual Property services include:

FINANCIAL INSTITUTIONS

In states where new cannabis banking opportunities exist, Emerge Law Group has the proven expertise in creating canna-banking programs to efficiently capitalize on those opportunities. Our Banking Practice Group specializes in working with banks and credit unions to develop regulatory compliant programs and operational best practices. We also train banking staff to become experts in canna-banking so they can effective understand and manage the risk affiliated with canna-banking.

We regularly help clients with:

EMPLOYMENT LAW

At Emerge Law Group, we recognize that employees are the heart and soul of any successful business.  Our Employment Law Practice Group works with employers to help them effectively manage their workforce, navigate the complex web of federal, state and local employment laws and, if necessary, defend against claims before administrative agencies and in court.

We regularly help clients with:

CORPORATE FINANCE AND SECURITIES

Our corporate finance and securities lawyers are experienced attorneys who have practiced at large law firms, worked as in-house counsel for public companies and investment banks, and owned and operated start-up companies. We work with clients to help achieve their financing goals while safely navigating the highly technical securities law landscape. 

In addition to representing issuers, we also routinely represent institutional and individual investors, including in connection with fund formation and investments.

Our expertise includes:

We have a deep understanding of the financing options available to businesses, including simple unsecured loans, asset-backed financing, convertible debt, common and preferred equity, crowdfunding and various other structures.  We work closely with our clients to understand their business and financing needs, ensure they are prepared to approach investors and choose the right partners, structure and negotiate terms, navigate the due diligence process and successfully close the deal.

COMPLIANCE AND LICENSING

ALCOHOL AND BEVERAGE INDUSTRY

Emerge attorneys have represented businesses in the alcohol and beverage industry, including wineries, breweries, distilleries, restaurants, bars, movie theaters, golf courses, and gas stations.  We can help you vet new locations, acquire existing locations, and apply for the appropriate liquor license.  We also provide training to comply with applicable rules and regulations, prepare operating procedures, submit renewals, and keep clients protected in the event of any potential violations or administrative hearings.

CANNABIS INDUSTRY

Emerge Law Group is highly experienced in the cannabis industry.  We have helped many clients obtain state licenses and local permits to operate cannabis businesses throughout California, Oregon, and Washington.  We regularly help clients with:

Cannabis laws and rules are also regularly changing.  Members of our team are dedicated to attending legislative hearings, state agency and local city and county meetings to stay up-to-date on any new changes and how to adjust to any new changes.

See our Cannabis Industry page for more information.

PSYCHEDELICS INDUSTRY

Emerge Law Group is a leader in the psychedelics industry.  There is tremendous excitement about the potential for psychedelic drugs to benefit a wide variety of populations, including veterans struggling with PTSD and terminally ill patients suffering with anxiety and depression.  Until recently, psychedelic substances have been accessible only in the underground; they are illegal under state and federal law to manufacture, distribute, or possess.  These substances have, since 1970, been treated as having no legitimate medical use, and no commercial application.  As such, businesses have not invested in this area or required legal services, outside of the criminal context.

Today, psychedelics are proceeding toward legalization on multiple paths.  Researchers in a multitude of clinical studies are proving the medical safety and efficacy of these medicines, with the objective of changing the treatment of these substances under the federal Controlled Substances Act, opening legal access to them.  Private and public companies are now actively raising money to develop intellectual property and capitalize on the market opportunities associated with psychedelic drugs.  Opportunities to be early actors in this new arena are tremendous.

See our Psychedelics Practice Group page for more information.

BUSINESS AND CORPORATE

Our business transactions team is made up of highly experienced transactional attorneys who have practiced at large law and accounting firms, worked as in-house counsel for public companies and investment banks, and owned and operated start-up companies. We understand complex legal matters and provide high quality legal services in a cost-effective manner.  Our clients value our experience, knowledge and judgment.

ENTITY FORMATION

Our team routinely advises clients regarding:

CORPORATE GOVERNANCE

Emerge attorneys also advise on-going concerns with: