Business Law Issues in the Cannabis Industry
Jones Day Miami
Brickell World Plaza
600 Brickell Avenue
Miami, Florida 33131
Jones Day hosted a panel discussion on business law issues in the cannabis industry, exploring the current state of the industry from a legal perspective, and discussing the intersection of transactional law and the unique challenges facing the industry in the United States.
- Eric Berlin, partner, Jones Day Chicago
- Jacqueline Hodes, partner, Jones Day Miami
- Zachary Soto, associate, Jones Day Miami
Notable takeaways include:
Taxes: Currently, federal tax law prevents cannabis businesses from taking most standard business deductions. However, case law exists to suggest that, with appropriate accounting and careful business planning, cannabis businesses can maximize available deductions and reduce negative tax impact.
Labor and Employment: As cannabis businesses grow, they face increasing scrutiny from federal agencies such as OSHA and the NLRB. While trafficking in cannabis remains federally prohibited under the Controlled Substances Act, these federal agencies have exercised authority over cannabis businesses for noncompliance with applicable labor and workplace safety regulations.
Real Estate: As the cannabis industry expands, real estate opportunities for landlords leasing warehousing, processing and cultivation space continue to grow. However, careful attention must be paid to the terms of all leases to ensure that cannabis related activity will not void otherwise valid lease contracts.