Marijuana Business Magazine August 2019

Marijuana Business Magazine | August 2019 100 But federal courts treat issues a bit differently, depending on the jurisdiction, Ferrari said. It’s particularly tough to get protection in Colorado, he said, while it’s a bit easier in California, Oregon and Washington state. One key issue is whether a business can put together a viable reorganization plan that doesn’t involve revenue from a cannabis-related venture, Ferrari said. Still, it can get fuzzy. For example, a business that sells hats, clothing or accessories such as jewelry would seem to be operating in a safe harbor and could file under federal bankruptcy law. But if that business is selling those items to marijuana retailers, then there could be a problem, Ferrari said. There can be ways around that, however. For example, a business that peddles rolling papers might qualify for bankruptcy protection if it’s selling to head shops rather than to marijuana retail stores and dispensaries. But ultimately, marijuana-related companies, including ancillary businesses, must recognize that federal bankruptcy isn’t a likely option until state marijuana businesses are deemed legal on a federal basis, cannabis experts said. And, as cannabis industry executives know, that may be awhile. Source: U.S. Trustee Program | Department of Justice LOCATION 2010 2011 2012 2013 2014 2015 2016 2017 2018 TOTALS Arizona 1 1 2 California 1 1 2 1 1 2 1 5 6 20 Colorado 3 1 1 2 3 5 6 21 Florida 1 1 Illinois 1 1 Maine 1 2 3 Michigan 2 2 3 7 Mississippi 1 1 New Jersey 1 1 2 Oregon 3 5 8 Pennsylvania 2 2 Puerto Rico 1 1 U.S. Virgin Islands 1 1 Washington state 2 2 3 5 6 18 Totals Per Year 1 1 5 2 6 10 10 29 24 88 Marijuana Enforcement Actions by Location Jeff Smith covers government and regulatory issues for Marijuana Business Magazine. You can reach him at [email protected] . R b NK U TC P Y a

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