Cannabis/Marijuana & Hemp
Meet the Carnahan Evans Cannabis/Marijuana & Hemp Law Group
With the passage of Amendment 2 (medical) in 2018 and now Amendment 3 (adult use) in November, 2022 3, the Missouri adult use cannabis (marijuana) industry licensees will greatly benefit. Constitutional Amendment 3 to Article XIV cements a low tax and reasonable regulatory environment into Missouri law that cannot be changed without a vote of the people. This stability is fertile ground for business and future interstate commerce of Missouri cannabis licensees and their products nationally and internationally.
Also, with the recent Missouri hemp statute and passage of the 2018 Farm Bill, Missouri will hopefully retake its former position as the largest grower of hemp in the country. These brand-new industries require the retention of strategic advisors with knowledge and experience in a variety of practice areas. The added complexity of cannabis/marijuana remaining illegal at the federal level under the Controlled Substances Act makes this even more essential.
Carnahan Evans is not new to the cannabis industry. The head of the Medical Marijuana and Hemp Law Group, Chip Sheppard, played an integral role in bringing medical cannabis to Missouri as a Board Member of New Approach Missouri, the group behind the passage of Amendment 2 in 2018. Mr. Sheppard assisted in the significant revisions of Amendment 2, and continues to be integrally involved in the development of this new industry as a Board member of the Missouri CannabisTrade Association a/k/a MoCannTrade, and member of its Governmental Affairs Committee, which is charged with proposing regulatory oversight to the Missouri Department of Health on behalf of its members and interfacing with both the executive and legislative branches of state government.
As a Springfield, Missouri based firm Carnahan Evans can offer cost effective guidance to those directly or indirectly involved in the growth, manufacture/extraction, dispensing, testing and transportation of marijuana, as well those providing ancillary services. There are a number of unique aspects of this industry (disallowance of certain tax deductions under 26 U.S.C. §280E, banking challenges, and federal illegality to name a few) that make use of advice and/or documents applicable to a typical non-marijuana business relationship or transaction inadvisable.
With the amount of work and detail that will be necessary in the creation and submission of competitive cannabis license applications, followed by continued compliance with newly created cannabis regulations, and navigation of the other novel legal issues created by this new industry, it is essential that anyone interested in cannabis/marijuana business opportunities obtain legal guidance.
Our involvement in the drafting of Amendment 3 and the subsequent campaign and ongoing regulatory evolution including the role out of adult use marijuana/cannabis and the micro-licensing of those that are disadvantaged such as service-disabled veterans, gives us a deep understanding of the gauntlet that applicants must navigate to success. Our team’s efforts to influence the first DHSS draft of the adult use regulations (August – November 2022) that interpret the historic changes to Article XIV are ongoing. We are poised to assist the micro-licensee applicants as well as continue representation of future comprehensive licensees and appellants.
Carnahan Evans can provide assistance in a variety of areas, including:
- Conversion of Medical License to Comprehensive License
- Drafting and Submission of micro-license applications
- Local Government Issues
- Planning & Zoning
- Regulatory Compliance
- Corporate and LLC Documents
- Investor Relations
- Real Estate
- Litigation/Dispute Resolution
- Taxes – including 280E issues
- Tax Planning
- Selection of Proper Locations
- Entity Choice and Formation
- Licensing and Applications
- Security Planning
- Intellectual Property Protection
- Labor & Employment
- Environmental Compliance
- Negotiation and Preparation of Contracts – between cannabis businesses and vendors, property owners, and ancillary businesses
- Business Model Development
- FDA Compliance
- Product Warnings, Labeling & Packaging
- Succession Planning