Duane Morris Cannabis Industry Group and Attorneys Recognized

Duane Morris’ Cannabis Industry Group is honored to once again be recognized with the elite law firms and attorneys in the cannabis industry.

Cannabis Industry Group and Attorneys Nationally Recognized by Chambers USA

Chambers 2021 logoDuane Morris’ Cannabis Industry Group and team leads Seth Goldberg and Tracy Gallegos received national rankings in the Cannabis Law –
Nationwide area.

Chambers Review
What the team is known for: Utilizes cannabis expertise on a nationwide basis and across a broad spectrum of practice areas, with practitioners specializing in IP, corporate transactions and regulatory advice within the sector. Offers expanded capabilities in the wake of the 2018 Farm Bill for clients trading in hemp and hemp-derived CBD products. Also boasts litigators able to handle contentious issues for producers and distributors across the industry.

Strengths: Clients describe Duane Morris as “a very well-regarded and respected firm in this space.” One client acknowledges its “deep bench with a lot of talent and experience in the cannabis industry.” Another adds: “The team as a whole is exceptionally knowledgeable. Its strengths include responsiveness and the ability to collaborate.”

Work highlights: Represented Glass House Group in its acquisition of Los Angeles-based cannabis concentrates manufacturer F/ELD Taste Matters.

Notable practitioners: Seth Goldberg boasts high-level experience advising cannabis businesses throughout their life cycle. “He’s a top-notch lawyer who really knows his stuff.” “He’s consistently responsive and knowledgeable.

Tracy Gallegos has extensive experience in the cannabis sector. Her practice covers regulatory issues, including licensing, in addition to corporate structuring and transactions.

Seth Goldberg Named a Law Firm Innovator by The Legal Intelligencer

Seth Goldberg, partner and team lead of the Cannabis Industry Group, has been named a Law Firm Innovator in The Legal Intelligencer’s 2021 Professional Excellence Awards. The award honors lawyers “who push the envelope to build their businesses [and] think outside the box and have demonstrated an ability to distinguish their brands in a crowded market.”

Cannabis – Proposed Federal Bill, the CLAIM Act, to ease access to insurance for Cannabis Related Businesses

Earlier this week (March 18, 2021), U.S. Senators Jeff Merkley (R-KY), Bob Menendez (D – NJ) and Rand Paul (R – KY) introduced a law, the Clarifying Law Around Insurance of Marijuana Act of 2021 (the “CLAIM Act“) to enable access to insurance coverage for cannabis businesses.

Named the “Clarifying Law Around Insurance of Marijuana Act of 2021“, the bill is intended to ease federal restrictions around insuring businesses related to cannabis growth, processing and dispensing.

Per NJ BIZ, 44 states have enacted some type of legal cannabis – whether medical, recreational or both.  This past election season saw voters in New Jersey, Arizona, Montana, Mississippi and South Dakota approve legal adult use cannabis; and last month, New Jersey enacted legislation to officially legalize and regulate adult use cannabis.

The goal of the CLAIM Act according to Senator Paul is to stop legitimate businesses from being shut out from obtaining basic business protections.

Insurance Products – Under the proposed CLAIM Act, cannabis businesses would be permitted full and legal access to insurance products such as worker’s compensation, property, casualty and title insurance. Currently,  state-authorized cannabis businesses are often denied access to the insurance market because the businesses could be prosecuted or face penalties under the Controlled Substances Act (a federal law).

Policy Limitations – Under the proposed CLAIM Act, insurers couldn’t be penalized or discouraged from providing coverage to a state-sanctioned and regulated cannabis business or ancillary business; and policies could not be limited solely because the insurer engaged with a cannabis-related business.

Supervisory Actions – Under the proposed CLAIM Act, according to NJ Biz, the federal government wouldn’t be able to take any adverse or corrective supervisory action on a policy to an owner or operator of a cannabis-related business or real estate or equipment that is leased to a cannabis-related business, solely because the owner or operator is engaged with cannabis or cannabis-related business.

The CLAIM Act represents a big step for cannabis related and ancillary businesses and would enable them to more easily access insurance related products that up until this point have been denied to them.

Duane Morris has an over 62 person Cannabis Practice Group that focuses on regulatory licensing, funds creation and raising, structuring, real estate related lease and ownership issues and intellectual property matters in the Cannabis arena.

If you have questions regarding the above post, please do not hesitate to contact Brad A. Molotsky, Tracy Gallegos, Christiane Schuman Campbell, Paul Josephson or Seth Goldberg or any other attorney you regularly contact at the firm.

Be well and stay safe.

NJ – Governor Murphy signs Adult Use Cannabis Bill – Now Adult Use Cannabis is Law of the Garden State

Earlier today, February 22, 2021, NJ Governor Murphy signed legislation to create an adult use/recreational marijuana marketplace, decriminalize cannabis and loosen certain penalties for underage possession of the drug and alcohol.  NJ joins 13 other states (and the District of Columbia) which have legalized adult use marijuana including Alaska, Arizona, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Montana, Oregon, South Dakota, Vermont, Washington and Washington, D. C. 

The Assembly and Senate passed a compromise bill to address most of Governor’s concerns that had held up the signing of the Bills – these areas mostly focused on easing penalties on underage possession of both alcohol and marijuana.

Under the law, NJ adults may legally purchase and possess up to 1 ounce of marijuana; retail sales will be taxed with 70% of such revenue being dedicated to lower income communities; a Cannabis Regulatory Commission will be established and oversee licensing; NJ will allocate 37 new grower licenses over the next 2 years; and currently licensed medical cannabis retail operations will be eligible to sell adult use cannabis.

The firm has an active Cannabis and Hemp practice, with over 65 lawyers who counsel businesses and investors in the regulatory and licensing area, the funds formation and fund raising arena, the leasing and acquisition of real estate fronts and the patents, trademarks and IP area of the cannabis and hemp industry. 

We can be reached at any of the following email addresses and will direct your inquiry to the appropriate person within our Cannabis and Hemp Taskforce – bamolotsky@duanemorris.com; tagallegos@duanemorris.com; ppjosephson@duanemorris.com; or sagoldberg@duanemorris.com.

Be safe.

 

Politically Motivated Investigations of Legitimate Cannabis Businesses: One More Reason for Cannabis Operators to Return to the Black Market?

In June 2020, John W. Elias, a prosecutor in the United States Department of Justice’s Antitrust Division, testified to the U.S. House Committee Judiciary that investigations of cannabis mergers were pursued based on Attorney General William Barr’s personal dislike for the cannabis industry rather than legitimate antitrust issues. Specifically, Elias testified, among other things, that since March 2019, the Antitrust Division has conducted ten investigations of mergers in the cannabis industry. Further, Elias testified that, “While these were nominally antitrust investigations, and used antitrust investigative authorities, they were not bona fide antitrust investigations.” Elias went on to state that, with respect to a proposed $682 million merger between two cannabis companies, MedMen and PharmaCann, career staff in the Antitrust Division initially examined the transaction to determine whether there should be no investigation, a brief investigation or a full investigation. Upon conclusion of its review, career staff determined that “the cannabis industry appeared to be fragmented with many market participants in the states that had legalized the product.” Accordingly, staff concluded that the proposed combination between MedMen and PharmaCann was “unlikely to raise any significant competitive concerns.”

To read the full text of this article by Duane Morris partner Tracy Gallegos, please visit the Cannabis Industry Journal website.

Performance Under Cannabis Contracts During a Pandemic: Do the Contracting Parties Stay Best Buds or Does One Party End Up Feeling Burnt?

The COVID-19 pandemic has wreaked havoc on nearly every industry in the global economy. The nascent and volatile cannabis industry was not exempt and, in some jurisdictions, has been impacted significantly due to local or state shelter or stay-at home orders. In most states where adult-use cannabis is legal, local and state governments have deemed cannabis businesses as essential and, thus, are permitted to continue operating notwithstanding local or state shelter orders. However, despite their characterization as essential businesses, many limitations imposed by local or state shelter orders have greatly affected the way cannabis businesses operate. As a result, cannabis businesses have experienced steep declines in their revenues and, in some instances, have left cannabis businesses unable to perform contractual obligations that they entered into pre-pandemic.

To read the full text of this article by Duane Morris partner Tracy Gallegos, please visit the Cannabis Business Executive website.

Webinar on the Impact of COVID-19 on the California Cannabis Market

On Friday, April 10, 2020, from 12:30 p.m. to 1:00 p.m. (Pacific time), Duane Morris will be hosting the webinar, “Cannabis 302: The Impact of COVID-19 on the California Cannabis Market.”

Join Tracy Gallegos and Justin A. Santarosa from our Cannabis Industry Group for a discussion on how California cannabis companies are adjusting to the COVID-19 pandemic by way of operational changes, such as increasing curbside and home delivery and seeking alternative sources of revenue, while responding to lease issues in relation to various eviction moratoriums and other matters.

REGISTER 

Duane Morris Partner Tracy Gallegos Named a Top Woman of Influence by MyVegas Magazine

Duane Morris partner Tracy Gallegos is featured in MyVegas magazine as one of the Top 100 Women of Influence. The list recognizes women who have made a “huge positive impact … and continue to change the shape of Las Vegas on a daily basis[.]”

Ms. Gallegos has a multifaceted practice that touches upon corporate, real estate, cannabis, sports and entertainment law for clients ranging from startup companies to established businesses. Her clients include cannabis companies involved in retail, manufacturing and cultivation, as well as companies providing ancillary services to the cannabis industry in both California and Nevada.

Read Ms. Gallegos’ profile in the publication. For more information, visit the MyVegas magazine website.

Duane Morris Welcomes Corporate Partner Tracy A. Gallegos in Las Vegas and San Francisco

Tracy A. Gallegos has joined Duane Morris LLP as a partner in the firm’s Corporate Practice Group. She will be resident in the Las Vegas office and also practice in San Francisco. Gallegos further enhances the firm’s corporate, real estate and cannabis law capabilities. Prior to joining Duane Morris, Gallegos was a partner at Fox Rothschild LLP.

“Tracy brings a big-picture understanding of the issues affecting businesses in the real estate, sports, cannabis and entertainment industries,” said Matthew A. Taylor, CEO and Chairman of Duane Morris. “Her collaborative, client-focused approach is a perfect fit with our culture at Duane Morris.”

To read the full press release about Duane Morris partner Tracy A. Gallegos, please visit the Duane Morris website.