The Massachusetts Appeals Court has vacated a preliminary injunction issued in January by a Superior Court judge to prevent the City of Cambridge from enforcing an ordinance that delays medical cannabis facilities (“MTCs”) from converting to adult-use facilities. The Appeals Court’s order in Revolution Clinics II, Inc. v. City of Cambridge was issued by a single justice on April 24, 2020, and reverses the Superior Court on narrow grounds.… More
On March 30th, the Treasury Inspector General for Tax Administration (“TIGTA”) released a report which concluded, based on its estimates, that the IRS could have collected significant additional tax revenue from cannabis companies if IRS audits of such companies were increased. In particular, TIGTA reported on potential income tax deficiencies arising from the denial of business deductions and credits under Internal Revenue Code Section 280E.
As a general matter,… More
On April 20, United Cannabis Corporation filed a Chapter 11 bankruptcy petition for reorganization in Colorado. The Bankruptcy Court for the District of Colorado has previously dismissed bankruptcy cases for marijuana businesses due to the substances’ federally illegal status. In In re Rent-Rite Super Kegs W. Ltd., 484 B.R. 799 (Bankr. D. Colo. 2012), the court found that there was “cause” under 11 U.S.C. § 1112(b) to dismiss the debtor’s Chapter 11 case because the debtor was violating the Controlled Substances Act by renting space in its warehouse to parties who were growing marijuana. … More
A Massachusetts Land Court judge has ruled that a Mansfield RMD license-holder can use its property for adult-use sales even though the property is not locally zoned for adult-use sales. The Land Court’s decision provides strong authority for RMDs provisionally licensed before July 1, 2017 who would like to expand to adult-use operations.
The case is Rosenfeld v. Town of Mansfield. Rosenfeld and her licensed RMD,… More
Last week, Governor Baker issued a COVID-19 Essential Services Order establishing which businesses in the Commonwealth may remain open as “essential” while most of our commerce, unfortunately but necessarily, shuts down in order to slow the deadly Coranavirus pandemic. Medical Marijuana Dispensaries and Liquor Stores made the cut. Adult use cannabis did not.
The Cannabis Control Commission announced on March 20, 2020, that healthcare providers registered with the CCC to prescribe medical marijuana will have the option to issue prescriptions to new patients following a telehealth consultation. This new guidance is a departure from the CCC’s regulations, which require patients to be physically present for a clinical visit in order to receive a prescription. See 935 CMR 501.0101(7). … More
The global outbreak of COVID-19 is disrupting lives and businesses across the world, and the cannabis industry and its customers are no exception. Our new reality is not only of great financial concern, but also presents serious public health challenges. Cannabis patients, of course, need to maintain access to essential medicine.
While many states have rightly concluded that medical marijuana dispensaries are an “essential service” that may remain open during shutdowns in the same manner as pharmacies,… More
The Boston Globe has a well-reported story out this morning on the United Food and Commercial Workers’ unionization campaign at iAnthus-owned Mayflower Medicinals’ grow facility in Massachusetts. It’s no secret to operators in Massachusetts, New Jersey, Illinois, California and other “labor friendly” states that trade unions – UFCW in particular – are running aggressive campaigns throughout the cannabis industry.
It’s a delicate dance: cannabis employers,… More
Rhode Island Governor Gina Raimondo’s fiscal year 2021 budget includes over $20 million in revenue that the Governor expects to be generated by legalizing cannabis for recreational use. While the Governor’s support for legalization is welcomed news for the industry, there is a twist: dispensaries would be owned by the state and run by private operators, much like how states such as New Hampshire structure the sale of liquor.
The proposal calls for retail revenues to be split between the state (61%),… More
On Tuesday, I blogged about H 4367, a bill that would amend the statutory language that defines permissible scope of community impact fees in Host Community Agreements (“HCAs”) and would grant to Cannabis Control Commission authority to regulate HCA. Soon after I posted the blog, the House passed the bill with two substantive amendments.
The first amendment, offered by Representative Kane, clarifies that while the 3% community impact fee is the only fee a locality can collect in an HCA,… More