With the enactment of the Marihuana Regulation and Taxation Act (MRTA) in 2021, New York State entered the unsettled legal landscape of the multibillion-dollar cannabis industry, with its complex web of regulations affecting cultivators, retailers, delivery services, employers and municipalities. With the enactment of MRTA, the cannabis space will continue to grow. And that growth brings not only expanded opportunities but also legal challenges in what will be a highly regulated industry.
Bond has long worked with alcohol-industry clients on many of the same issues that the cannabis industry will face, from licensing and regulations to marketing, financing, trademark and copyright protection and more. Bond’s multidisciplinary cannabis team includes attorneys with experience in business, intellectual property, tax, real estate and labor and employment.
We can assist with:
- Business formation: creation of by-laws, formation resolutions, creation of company record book, publishing requirements, etc.
- Compliance with federal and state regulations, including those established by the new NYS Office of Cannabis Management and Cannabis Control Board
- Compliance with federal and state tax laws, including establishing strategies for addressing the different treatment of income and expenses under state and federal law
- Business licensing and zoning issues
- Real estate and land use issues
- Labor and employment advice and counseling, including workplace issues (e.g., drug testing, collective bargaining agreements)
- Negotiating commercial leases and license agreements for office, retail, agriculture and other workspaces
- Intellectual property services, including non-disclosure agreements, trademarks and copyrights
- Litigation arising from business disputes, regulatory issues or any other commercial litigation that might arise within the industry
- Debt and equity fundraising, investment and private placements
- Counseled cannabis organization on capitalization, corporate structure and financing arrangements
- Advised cannabis organization on all matters related to submission of applications for licenses to grow, process and/or dispense cannabis in several jurisdictions
- Represented licensed organization in labor and employment matters, including efforts to establish a union within the licensed organization
- Advised existing and new businesses on the utilization and sale of hemp and CBD products, both in their original form and infused into current product offerings
- Facilitated private equity fundraising deals for a proposed chain of dispensaries in Oregon and Colorado (as many traditional financing options are still unavailable due to the federal prohibition)
- Private equity transactions with minority and women owned business enterprises (MWBEs) and service-disabled veteran owned small business (SDVOSB) space where the structuring is important to maintain the control requirements for the certification.
Disclaimer: Even if a state law decriminalizes certain activities relating to marijuana or marijuana-based products, those activities are still illegal under federal law. None of the information provided in these materials is intended to aid any activity that violates federal law.
Jeffrey F. Allen
Michael D. Billok
Samuel P. Burgess
Jeffrey P. Gleason
Charles D. Grieco
Lacey C. Miller
Jessica C. Moller
Elizabeth L. Morgan
Hannah K. Redmond
Theresa E. Rusnak
Jeffrey B. Scheer
Jennifer L. Tsyn