Cannabis Law

 

Cannabis Law

 

Cannabis is a growing, exciting and confusing industry.  There are many state laws, old and new, that are changing, while federal laws remain the same. This leaves everybody in the industry exposed to criminal liability at the federal level. It is imperative to understand the do’s-and-don’ts of the cannabis industry to avoid civil and criminal liability.

In Massachusetts specifically, An Act for The Humanitarian Medical Use of Marijuana and An Act the Regulation and Taxation of Marijuana Act added to existing laws and did not replace them. The acts created a zone of safe harbor from prosecution so long as you stayed within the guidelines. The Commonwealth will continue to update its laws, and so will the municipalities throughout Massachusetts.

It is imperative to utilize legal representation to protect yourself, your family and your assets from criminal prosecution and bad business practices.

Cannabusiness:

Cannabusiness legal services include areas such as:

  • Arbitration
  • Cannabusiness Plan
  • Cannabusiness formation
    • For-profit
    • Non-profit
  • Cannabusiness application submission
  • Cannabis legal compliance
  • Commercial lease negotiation and drafting
  • Drafting various employment documents such as Non-Competition, Non-Disclosure, and Confidentiality Agreements
  • General business advice
  • Intellectual property protection
    • Copyright
    • Trademark
    • Brand development
  • License Application Submission
  • Litigation
  • Mediation
  • Negotiation and preparation of contracts
  • Start-up investment capital negotiations
  • Supplier contract negotiations


Want to get in on the Massachusetts GREEN RUSH?

Cannabis is BOOMING!!! According to Marijuana Business Daily (MBD), a trusted source for data on the cannabis industry, the industry will grow $5.1-$6.1 billion by 2021. [1] MBD estimates that there are 20,000-28,000 cannabis businesses in the United States today.[2]

[1] Mcvey, Eli. Marijuana Factbook 2017 Exclusive Financial Data for Cannabusinesses & Investors. 2017 ed. Denver: Marijuana Business Daily, 2017. PDF.

[2] Id.

Now is the time to get into the business.  Cannabis is a money maker that, if planned correctly, most people can get involved in. The profit numbers speak for themselves. MBD’s conservative estimates are too good to ignore:

How can a lawyer help me create my cannabusiness?

As a firm, we have client’s inquiring about the emerging marijuana industry in Massachusetts. With the ever-changing laws and regulations, clients are unsure of what the status of the law and industry really is. We have had several questions asked of me and comments made with regards to entering the industry. Some include the following:

  • “When can I get a license?”
  • “Can I start at home for now so the plants are almost ready to harvest when I get a license?”
  • “Do I need a business plan?”
  • “My only problem is that I don’t have the money to invest.”
  • “How can I find money to get started?”
  • “There are too many people trying to get a bite of the apple.”
  • “Do you think it’s a good idea to buy a property now? I would like to have everything set up so that I can be ready.”
  • “What should I be doing now to get ready?”

We can utilize one of the various versions of a lawyer’s classic response to any legal question to respond to these questions or comments. “It depends”, or “that is possible depending on…, etc.” There are too many variables and unknowns to give a specific and accurate response. The industry is changing and the Cannabis Board will be making several additions to the laws and regulations while trying to work within Federal law. This is a lesson from the jurisdictions that have been working in the industry for years.[3]

So why then should you speak to a lawyer about the industry?  This question can be answered more concisely.

  1. Keeping Your Business Compliant from the Start

A lawyer can advise you on the status of and about the proposals for changes to the law. A lawyer can help you avoid doing something, like starting commercial cultivation in your house, that may prevent you from obtaining a license or even get you prosecuted. Remember, the new Massachusetts law does not repeal the old laws; it adds to them. In other words, if you run afoul of the new law, the Commonwealth may prosecute you under the old laws.[4]

To obtain a license, your business must first be compliant with all state and local statutes and ordinances. A lawyer will determine which locations, policies, and procedures will allow your business to operate legally with a greater chance of success and less risk.

  1. Building Your Team

Your attorney will help you build your team. The lawyer will be the second team member as you are the first. Together, you and your attorney need to build the rest of the team. These individuals will have specific skill sets such as accounting or marketing.

This will require several business documents. Your business could potentially need partnership agreements, employment agreements, non-competition agreements, confidentiality agreements, etc. The list could continue. Each of these agreements has the potential to be negotiated. A lawyer can negotiate and draft the terms obtaining the most benefit with the least amount of risk.

  1. Writing Your Business Plan

Once you have your team assembled, you can move to the next stage. This will be to decide what type, if any, your business plan should be and writing it. It is much easier to find funding when you are starting your first business if you give the financial organization or investors that you trying to get to fund your startup something they can see. Everyone has dreams, goals and aspirations; however, investors cannot read your mind and may have a tough time trying to see the picture you are trying to paint for them if it’s not put on the canvas. A business plan is an artist’s (entrepreneur’s) vision (business idea) put on the canvas (paper). The plan also gives the company’s leadership a unified direction.

[3] Blake, David, and Jack Finlaw. Marijuana Legalization in Colorado: Learned Lessons. Harvard Law and Policy Review. Cambridge: Harvard Law and Policy Review, n.d. Harvard Law and Policy Review. 22 June 2015. Web. 9 Feb. 2017. <http://harvardlpr.com/wp-content/uploads/2014/08/HLP204.pdf>.

[4] “Take aways.” MCLE New England. Proc. of “1st Look” at the New Massachusetts Marijuana Law Understand the wide-ranging practical implications for your clients and practice, MCLE Center, Boston, MA. Massachusetts Continuing Legal Education, 19 Jan. 2017. Web.

In 1848, a store owner named Sam Brannan went out into the street holding gold dust in one hand and his hat in the other waving and shouting, “Gold! Gold from the American River!”[5] He sold all of the people quitting their jobs to run off and get rich mining their shovels.[6]Most of the people didn’t get rich mining. They went broke.[7]

The lesson here is that maybe instead of trying to get a bite of the apple, you sell people the gloves to prevent their fingers from getting sticky while they bite it or sell them a napkin for after. There is more than one type of business opportunity here. There are several!

  1. Obtaining Investment Capital

Many people who wish to get into the industry do not have the money to invest. Early medical dispensaries spent hundreds of thousands of dollars just to open during the licensing process. Now recreational licensing will be drastically less costly depending on which licenses you wish to apply for; however, all start-ups need some level of funding to get going.

[5] “Miners vs. Merchants: Fortunes Made Through Global Trade.” Flexport. N.p., 08 Aug. 2016. Web. 17 Mar. 2017. <https://www.flexport.com/blog/trade-merchants-rich-california-gold-rush/>.

[6] Id.

[7] Id.

Having a business plan will greatly increase your chances of securing the necessary capital. It is very competitive in the cannabis world. Your business plan distinguishes you from all the other businesses looking for capital. You may have to compete for a bite of the apple; it’s called capitalism. You must be better than the other entrepreneur. Sometimes that may mean walking through the door before her. Sometimes it will come down to who has the better business plan or business team. Sometimes it’s the presentation. A lawyer can help you in each of these areas drastically increasing your chances of an investor deciding that your business is worthy of their investment.

Then you must negotiate the terms. Progressive Law can negotiate the deal for you and will strive to get you the most amount of capital for the least amount of risk and detriment as possible.

  1. Start Back at Keeping Your Business Compliant

The cannabis laws nationwide and within the Commonwealth will be continuously changing and evolving. Every cannabusiness should have a legal team continuously ensuring that you cannabusiness remains compliant.

So, first things first… Get your rough idea in your head. Do not go buying property just yet. Come down to Progressive Law, LLC and discuss it with the professionals.

 

Cannabis Criminal Legal Services:

Cannabis Criminal legal services include the following:

  • Arraignment
  • Civil Fines
  • Clerk Magistrate’s Hearing
  • Open Container
  • OUI
  • Cultivation issues
    • Commercial
    • Personal
  • Possession of Class D or Class C
  • Possession of Class D or Class C with the Intent to Distribute

Arrested or facing potential charges while caught up in the GREEN RUSH?

It’s easy to step outside the bounds of the new cannabis laws in the Commonwealth of Massachusetts. One wrong move and you get treated the same as it was before the people spoke out in 2012 to allow the use and sale of medical marijuana. In 2016, we voted to allow adult-use marijuana. Legislators have changed both the medicinal and adult-use laws. They will continue to create and enforce regulations.

Law enforcement is also having to adjust to the changing laws. This is causing an increase in OUI Marijuana charges in the state. Just the idea of having legal marijuana has created an irrational fear that suddenly people will start driving under the influence of marijuana, as if it wasn’t already happening. Police officers are looking to ensure that you are within the bounds of the law. Step outside them, the police hammer you with the archaic marijuana laws that M.G.L. c. 334 and c. 369 failed to replace.

Being a knowledgeable firm in the cannabis industry allows Progressive Law to identify several of new criminal, or not so criminal, issues that are arising due to the changing laws. If you are charged with a cannabis offense, you need a legal representation that understands the status of the law and how to apply it.

If you desire passionate representation with knowledge in the cannabis area, call Progressive Law. It’s where progress happens!