As the number of states legalizing cannabinoids and psychotherapeutics for medical and adult use increases, there is growing disparity between federal and state laws concerning controlled substances. Businesses involved in the legal cultivation, processing, distribution and sale of cannabis, the development of plant-based and other psychotherapeutics, as well as those providing ancillary services throughout the distribution and supply chain, face an array of legal issues, including banking, regulatory compliance, licensing, branding, intellectual property, federal taxation, corporate transactions and dispute resolution.
However, the regulatory environment concerning this industry varies from state to state and is often in flux. While the passage of recent federal legislation opened the hemp/CBD industry creating a number of emerging legal interpretation and regulatory issues for this large emerging market, federal laws still prohibit the cultivation and sale of cannabis and the penalties for failing to meet applicable state/federal regulations can be extremely severe; including criminal prosecution. While this has resulted in the creation of a multi-billion dollar legal cannabis industry, those looking to do business in or participate with these emerging industries need experienced counsel to help them avoid potentially harsh landmines waiting for the unwary.
CMX's Cannabinoids and Psychotherapeutics practice understands the complex legal and business issues impacting companies operating in this sector. Our lawyers have the depth of experience and national reach necessary to help clients meet their business objectives. We monitor notable industry trends and legislative developments to provide timely guidance to clients seeking to navigate the maze of often-conflicting federal, state, and local laws and regulations governing cannabinoids and psychotherapeutics while leveraging our experience and knowledge across multiple disciplines to help our clients navigate the unique needs of the emerging, and constantly changing, cannabinoid and psychotherapeutics industry. CMX has a broad national set of clients allowing us to stay close to current developments, trends and leading edge players in the market.
Our clients include cultivators, processors, dispensers and distributors, and suppliers of ancillary products and services as well as public companies and private equity investors and investment funds looking to lend capital to and invest in legal cannabinoid and psychotherapeutic related enterprises. Drawing on our understanding of the complex business and legal issues impacting companies and entrepreneurs in this space, we are able to provide targeted solutions to the full range of transactional, rulemaking, regulatory, legislative, and litigation challenges our clients confront.
We assist our clients in understanding and assessing the federal and state regulatory framework for cannabinoids, psychotherapeutics and other industry products; licensing applications and requirements to operate and related administrative matters; commercial litigation; negotiating and documenting investments, joint ventures, and mergers and acquisitions; conducting due diligence on the targets of such transactions; federal, state and local tax issues; day-to-day regulatory advice and general business counsel; and labor and employment, including workplace training and litigating workplace claims.
Possessing, using, distributing, and/or selling Schedule I or II listed narcotics under the US federal Controlled Substances Act is illegal under federal law, regardless of any state law that may decriminalize such activity under certain circumstances. Although federal enforcement policy may at times defer to states’ laws and not enforce conflicting federal laws, interested businesses and individuals should be aware that compliance with state law in no way assures compliance with federal law, and there is a risk that conflicting federal laws may be enforced in the future. No legal advice we give is intended to provide any guidance or assistance in violating federal law.
Please contact CMXLaw with any inquires you may have..