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Friends, On October 9, 2020, the Colorado Marijuana Enforcement Division (the “MED”) adopted amended permanent rules that go into effect on January 1, 2021. The MED’s 2020 rulemaking was not an overhaul as it had been in 2019, but here are some highlights: Rule 1-105.B—All licensees must comply with all public health orders from any […]

Friends,Sean McAllister is well known as an accomplished business litigator in the cannabis and hempspace. Based on his expertise, the Colorado Bar Association has asked him to speak at theupcoming Litigation Summit. Sean’s accomplishments in litigation are many, but include thefollowing: Represented a cannabis company sued by a customer of who claimed the company should haveprotected […]

The Internal Revenue Service (“IRS”) last Thursday released updated guidance on a stand-alone web page for the state-legal marijuana industry. The new guidance covers the rules for IRC Section 280E, income reporting, reporting case transactions over $10,000, cash payment options, estimating tax payments, and keeping financial records. “A key component in promoting the highest degree […]

Even in good times, operating a business can feel like drinking from a fire hose. The hose gets even bigger when a business becomes distressed. There are no quick fixes, but here are the top five concerns for distressed businesses: Assess Your Financial Position and Focus on Cash Review your cash flow, cash reserves, and […]

Friends, As you may know, I have been pioneering work with the emerging psychedelic renaissance, including advising people on what is legal in decriminalized cities, working with therapists interested in psychedelic-assisted therapy, a company producing cGMP psilocybin for clinical trials, and advising groups interested in religious exemptions for psychedelics under the Controlled Substances Act. Click here for […]

Friends,The Trademark Trial and Appeal Board (the “TTAB”) affirmed this month a decision by the United States Patent Trademark Office (“USPTO”) denying cannabis brands, specifically products containing CBD, from getting trademark protection for dietary supplements. The case began with a March 18, 2015, trademark filing for “CW” by the Colorado-based cannabis company Stanley Brother Social […]

Friends,On Monday, the Supreme Court issued an opinion that drastically changes the landscape of trademark law. Businesses use trademarks to protect a brand from being confusingly similar to other brands. Strong trademarks also encourage consumers to trust certain trademarks over others. For instance, reportedly 65% of single men buy Tide detergent because that was the […]

Last week, the Colorado legislature took another step in dealing with some of the consequences brought about by the numerous cannabis-related arrests and convictions during the war on drugs. House Bill 20-142, Social Equity Licensees in Regulated Marijuana, amends the current state-wide cannabis Social Equity Program in Colorado by expanding eligibility for the program to […]

Friends, Los Angeles’s Department of Cannabis Regulation proposed significant changes to its cannabis business licensing rules and social equity program. On June 24th, 2020 the City of LA Rules Committee approved the recommendations from the Department of Cannabis Regulation which seek to: Allow the issuance of conditional Temporary Approval to Phase 3 Applicants. Allow businesses […]

Two recent government audits, one from the IRS, the other from the Denver auditor, highlight the continuing tax troubles facing cannabis businesses. The IRS’s report, titled “The Growth of the marijuana Industry Warrants Increased Tax Compliance Efforts and Additional Guidance,” (“TIGTA”) issued on March 30, 2020, and the Denver auditor’s report, issued in April 2020, […]

Friends, Last Friday, the MED issued another set of emergency rules for marijuana licensees regarding the COVID-19 pandemic. These rules largely continue existing COVID-19 rule provisions, but make some additional changes. Notably: Licensees are still required to follow all executive and public health orders, failure to do so is a license violation affecting public safety. […]

Friends, The MED issued a compliance tip for hemp producers and marijuana licensees that explains how to sell, manufacture, and test industrial hemp products in Colorado’s regulated marijuana marketplace. Both retail and medical marijuana stores can now sell industrial hemp products. MED and Colorado Department of Public Health and Environment (“CDPHE”) regulations govern what hemp […]