Cannabis | McGlinchey Stafford PLLC

With deep knowledge of the federal and state regulatory landscapes, trusted relationships with regulators and members of the judiciary, and a creative culture that encourages our teams to think outside the box, McGlinchey attorneys are the experienced counsel you want in your corner.

The world of cannabis law has transformed in recent years, yet considerable uncertainty remains. The conflicts inherent in state and federal law – particularly when it comes to banking, insolvency, regulatory, and operational concerns – make this a challenging industry for start-ups and established businesses alike.

Our particular focus and depth representing highly regulated entities in the financial services arena paired with our experience advising companies in all stages of the business lifecycle in securing funding, real estate, intellectual property, and tax matters, position us uniquely to provide clients with robust, reliable, dynamic counsel on the matters at issue in this complicated, rapidly expanding field.

With a nationally recognized reputation and a footprint spanning the United States, McGlinchey’s attorneys stand poised to help your business enter, navigate, and grow within the emerging cannabis industry. From the Bank Secrecy Act, FinCEN Guidelines, and the UCC to California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act, McGlinchey lawyers know the ins and outs of these complex frameworks, and the opportunities they present for industry participants.

Disclaimer: Cannabis (marijuana) is currently a Schedule 1 controlled substance under the federal Controlled Substances Act. McGlinchey’s legal advice is given in accordance with all existing state and federal laws and is not intended to encourage noncompliance with any law.

We are currently available to represent participants throughout the cannabis industry spanning hemp, CBD, and THC-related businesses, including:

banks and financial institutions seeking to remain compliant with conflicting state and federal regulatory regimes while growing their portfolios, preserving creditors’ rights, and maintaining customer privacy in activities spanning lending, merchant and payment processing, cash management, and more
private investors looking for ways to enter and capitalize on this growing market, and navigate the regulatory frameworks that affect cannabis financiers
cannabis business owners and operators at all points of the supply chain, including producers, growers, cultivators, manufacturers, processors, testers, distributors, retailers, FinTechs and technology companies involved with product research and development, financing, sales, and delivery, and ancillary service providers in issues such as:
- corporate formation and structure, governance, contractual matters, sales and transactions, fund formation, debt and equity financing, and issuance of stock/securities
- legal and regulatory licensing strategy and compliance including 50-state surveys of existing laws, all manner of permitting and licensing (environmental, dispensing, and others)
- cyber security and data privacy, including website and marketing privacy compliance
- 280E taxation issues (such as cost of goods sold v. deductions and credits as well as segregation of cannabis and non-cannabis activities), reporting of cash receipts, and disputes with IRS and state and local taxing authorities
- financial distress and insolvency, including loan negotiations, workouts, and financial restructuring, as well as non-bankruptcy court recovery litigation, receiverships, and assignments for the benefit of creditors in certain states
- insurance analysis to ensure compliance and proper/recommended coverage
- securing, preserving, and enforcing intellectual property rights (including patents, trademarks, copyrights, and digital media rights); avoiding infringement on the IP rights of others; and using IP assets in asset-based financing
- all manner of litigation, from shareholder disputes and breach of contract claims to appeals and class action defense
property owners, landlords, and investors interested in structuring lucrative deals; acquiring, developing, or selling land, and managing facilities to support cannabis producers, processors, retailers and other supply chain operations (including permitting, land use, and zoning concerns, and regulatory compliance); handling tenant and leasing matters; and capitalizing on state and local tax credits and incentives for emerging industries, when available
employers and HR managers charged with maintaining compliant, effective policies and procedures, fostering safe, productive work environments, respecting employees’ rights, negotiating with unions, classification of workers (employee v. independent contractor), and employment taxes
auto and other equipment manufacturers, owners, and operators exposed to claims and litigation including allegations of personal injury and death, dangerous and defective products, economic loss, faulty design, and others
insurers considering the risks and liabilities associated with issuing and underwriting coverage for cannabis-related businesses, or defending claims in cannabis-related incidents
businesses and individuals subject to agency oversight, regulatory enforcement, or government investigation at the administrative, local, state, or congressional level
industry and trade organizations engaged in political advocacy for progressive legislative change improving social justice and decriminalization standards at the state or regional level, as well as cannabis-related event producers and managers

Podcast: Tax and Banking Implications of Rescheduling Marijuana
In late August, the U.S. Department of Health and Human Services announced that it would recommend moving marijuana from Schedule I to Schedule III of the Controlled Substances Act. In this episode, corporate cannabis attorney Daniel Shortt moderates a discussion with tax attorney Douglas Charnas and financial services regulatory attorney Aaron Kouhoupt about what impactsMore
The Feds Consider Making Marijuana Less Regulated
Associate Daniel Shortt (Seattle) was quoted in "The Feds Consider Making Marijuana Less Regulated," in Essence from his article "From Schedule I to Schedule III: Potential Shift in Marijuana’s Legal Status" where he discusses the possible classification change of cannabis from a Schedule I to Schedule III classification.
DEA Likely to Reschedule Marijuana Based on Congressional Report
According to a report from the Congressional Research Service (the Report), the DEA is likely to follow the Department of HHS and the FDA's recommendation to move marijuana from Schedule I to Schedule III under the Controlled Substances Act.
3rd Circ. Ruling Fine-Tunes The ‘But It’s Hemp’ Defense
A difficult lesson was learned after marijuana was discovered in a suitcase at the airport: The government does not have to prove cannabis is marijuana to convict you of trafficking in marijuana.
Rescheduling Cannabis Probably Won’t Change as Much as You Think
Associate Daniel Shortt (Seattle) was quoted in "Rescheduling Cannabis Probably Won't Change as Much as You Think," in Cultivated about the proposed classification change of cannabis from Schedule I to Schedule III.