One-Hit Wonders

ChatGPT and Cannabis: Not Bad, Not Bad at All

Published

1 year ago

February 18, 2023

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A few years ago I wrote a somewhat tongue-in-cheek blog post titled, “Cannabots – Are the Robots Coming For Your Weed,” which discussed the application of robotics to the cultivation of marijuana. In that post I cited several articles discussing the use of robots as farmers, restaurant workers, fashion models, and even lawyers. Just a few weeks ago my colleague, Hilary Bricken, authored a post, Will AI Replace Your Cannabis Lawyer? (I Asked ChatGPT) in which she discussed her conversation (?) with ChatGPT about being a cannabis lawyer, the ethical rules, and to draft a cannabis contract (ChatGPT declined to do so).

This morning I read Kevin Roose’s column for the NY Times, A Talk With Bing’s Chatbot Left Our Columnist ‘Deeply Unsettled, Even Frightened’ (paywalled), and decided to check out Bing’s competitor, ChatGPT, for myself.

I asked ChatGPT some questions about marijuana and I asked it to write a blog post. The results, below, are impressive, though less scintillating than the Roose piece. ChatGPT seems to follow a dry book report format. Ted Chiang’s recent article for the New Yorker on ChatGPT may explain why. In any event, ChatGPT is pretty fun! My queries are in bold and the unedited text that was generated by ChatGPT follows:

What are the greatest political challenges to legalizing marijuana at the federal level?

Legalizing marijuana at the federal level in the United States is a complex political issue, and there are several challenges that need to be addressed. Here are some of the greatest political challenges to legalizing marijuana at the federal level:

Political Divide: Marijuana legalization is a divisive issue among politicians and voters, with some advocating for legalization, while others oppose it. Republicans, in particular, have been more resistant to legalization efforts, and with the current political divide in Congress, it has been challenging to pass any significant cannabis reform legislation.

Federalism: The United States is a federal system, meaning that the powers of the federal government and state governments are separate but overlapping. This has created challenges for legalizing marijuana at the federal level because it is still illegal under federal law. As a result, some politicians and interest groups are concerned about the impact of federal legalization on states’ rights and the ability of states to regulate their own marijuana industries.

Public Perception: Despite the growing acceptance of marijuana in the United States, there is still a stigma associated with it. Some politicians and interest groups are concerned that supporting marijuana legalization could be viewed negatively by their constituents or could harm their chances of re-election.

Lack of Research: Marijuana is still classified as a Schedule I drug under the Controlled Substances Act, which makes it difficult for researchers to study its potential medical benefits. This lack of research has made it challenging to create evidence-based policy around the legalization of marijuana and has contributed to political resistance to legalizing marijuana at the federal level.

In conclusion, legalizing marijuana at the federal level in the United States is a complex political issue, with several challenges that need to be addressed. These challenges include political divide, federalism, public perception, and lack of research. As public opinion continues to shift, and more states legalize marijuana, there may be increasing pressure on the federal government to address these challenges and to move towards federal legalization.

Please describe four trends in civil marijuana litigation.

Civil marijuana litigation refers to lawsuits that involve the legal use or sale of marijuana, including disputes between marijuana businesses, consumers, and government agencies. Here are four trends in civil marijuana litigation:

Product Liability Claims: With the increasing popularity of marijuana products, such as edibles, tinctures, and concentrates, there has been an uptick in product liability claims. These claims typically involve allegations of injuries or illnesses caused by defective or mislabeled products. For example, in 2019, a group of consumers sued a California-based vape company for allegedly selling tainted products that caused lung injuries.

Intellectual Property Disputes: As the marijuana industry continues to grow, there has been an increase in intellectual property disputes. These disputes can arise from claims of trademark infringement, trade secret misappropriation, or patent infringement. For example, in 2020, a California-based marijuana company sued a competitor for allegedly copying its proprietary strains of cannabis.

Employment Law Disputes: The legalization of marijuana has created unique challenges for employers who have to balance state laws that allow marijuana use with federal laws that still prohibit it. As a result, there has been an increase in employment law disputes, such as wrongful termination or discrimination claims. For example, in 2019, a Massachusetts court ruled that an employer could not terminate an employee for testing positive for marijuana because the employee was using it for medical purposes.

Governmental Regulation and Compliance: Marijuana businesses are subject to a variety of regulations, including licensing requirements, advertising restrictions, and quality control standards. Disputes can arise when businesses are accused of violating these regulations or when they challenge the legality of certain regulations. For example, in 2018, a group of marijuana businesses sued the state of Washington, arguing that the state’s advertising restrictions violated their First Amendment rights.

In summary, civil marijuana litigation is a growing area of law, and the industry faces unique legal challenges related to product liability, intellectual property, employment law, and governmental regulation. As the industry continues to evolve, we can expect to see more legal disputes and novel legal issues arise.

Please write a blog post about the challenges facing Oregon’s marijuana industry.

Oregon was one of the first states to legalize marijuana for adult use in 2014. Since then, the state’s marijuana industry has faced numerous challenges, including oversupply, regulatory issues, and a thriving black market. In this blog post, we will discuss some of the challenges facing Oregon’s marijuana industry.

Oversupply and Price Decline: One of the biggest challenges facing the Oregon marijuana industry is oversupply. The state’s legalization of marijuana for adult use led to a surge in production, and as a result, the market has become saturated. This oversupply has caused the price of marijuana to decline significantly, making it difficult for some businesses to compete and turn a profit.

Regulatory Issues: Another challenge facing the Oregon marijuana industry is regulatory issues. The state’s regulatory framework is complex, with numerous agencies involved in the oversight of the industry, including the Oregon Liquor Control Commission (OLCC), the Oregon Health Authority (OHA), and the Oregon Department of Agriculture (ODA). This complex regulatory environment has made it difficult for some businesses to navigate the rules and stay compliant, leading to fines and other penalties.

Illicit Market: Despite the legalization of marijuana in Oregon, there is still a thriving black market for marijuana in the state. This black market is fueled by the oversupply of marijuana, which has made it easy for unlicensed growers and sellers to sell their products at a lower price. The illicit market not only undermines the legal market but also poses public health and safety risks as the products sold on the black market are often untested and potentially dangerous.

Banking and Financial Services: Marijuana remains illegal at the federal level, which has created challenges for Oregon’s marijuana businesses in accessing banking and financial services. Many financial institutions are hesitant to work with marijuana businesses due to the risk of federal prosecution, leaving many businesses with limited access to banking and financial services.

In conclusion, the Oregon marijuana industry faces several significant challenges, including oversupply, regulatory issues, the illicit market, and banking and financial services. Addressing these challenges will require a collaborative effort from all stakeholders, including regulators, industry leaders, and policymakers. By working together, it may be possible to overcome these challenges and create a thriving and sustainable marijuana industry in Oregon.

Have you ever read the Canna Law Blog?

Yes, as an AI language model, I have the ability to browse and read online content, including the Canna Law Blog. The Canna Law Blog is a popular source of news and analysis related to legal issues in the cannabis industry. It covers a wide range of topics, including state and federal cannabis laws, regulations, and litigation, as well as issues related to intellectual property, taxes, and banking in the cannabis industry. The blog is widely read by industry professionals, policymakers, and legal experts, and is often cited in news articles and other publications related to the cannabis industry.

Source: https://harrisbricken.com/cannalawblog/chatgpt-and-cannabis-not-bad-not-bad-at-all/

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One-Hit Wonders

Driving Under the Influence of Marijuana

Published

3 months ago

January 24, 2024

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No national standard exists to determine how long someone should wait to drive after consuming marijuana. However, experts at the Colorado Department of Public Health and Environment recommend waiting at least six hours after smoking less than 35 milligrams of THC and eight hours after eating or drinking something containing less than 18 milligrams.

For reference, a “typical” marijuana cigarette contains at least 60 milligrams of THC, and most edibles contain around 10 milligrams per serving size. A 12-hour wait is safer, as the high (and subsequent drowsiness) from smoking a typical amount lasts far longer.

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One-Hit Wonders

How can it help distressed cannabis companies today?

Published

1 year ago

April 6, 2023

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Without the option to declare bankruptcy—due to federal illegality—the only recourse for cannabis businesses in distress to become solvent and / or distribute assets to creditors is to enter into an expensive and difficult judicial cannabis receivership. Receiverships are inherently adversarial, and the required input from third-party experts, lawyers and regular engagement with the courts can be incredibly costly.

Meanwhile, businesses operating in mainstream sectors have the ability to declare bankruptcy. This is also a court-ordered procedure that allows companies to satisfy lenders by liquidating assets, restructuring operations and finances, and to enjoy a break of sorts to make deals with creditors and renegotiate contracts and leases. Without a change to federal banking laws, cannabis companies are blocked from the benefits of bankruptcy, and the situation is only getting worse.

Given the current tight capital market environment, the increase in cannabis distressed assets, and the shortage of options to cannabis operators to address said challenges, is there a possible alternative option to alleviate the rather dire situation?

Genesis—Transition from Equity Financing to Debt Financing

Equity financing has been the most prominent way to raise capital in cannabis for the last several years. However,recent data collected by Viridian Capital Advisorsreveals that debt currently makes up 93% of capital raised by U.S. cannabis cultivation and retail companies, compared to 55.7% in U.S. industries overall.

This change in the capital-raising environment, which has led to an increased number of creditors in the sector, combined with continued market pressures on cannabis businesses to remain competitive, make it highly likely that the industry will inevitably see more receiverships.

Ultimately, while debt financiers are willing to lend cannabis businesses money, they expect to be paid back on time and often with high interest. If the business begins to struggle and enters a distressed phase that leads to receivership, the business assets will be sold off and the secured lenders will be the first to get paid, while the business itself is likely not to recover much.

Consider an Administrative and Collateral Agent

With receiverships punishingly expensive and the debt financing landscapebordering on predatorial, distressed cannabis businesses are desperate for any assistance or support available. An Administrative and Collateral Agent (ACA) could be the alternative support required, benefitting borrowers, lenders and regulators alike, and offering a more cost-effective and less punitive option to courts, receivers and lawyers.

Instead of dealing with the courts and an expensive court-appointed receiver, cannabis companies seeking relief could turn to an ACA to facilitate mediation between parties and create alignment within the industry, which does not exist today.

An ACA could create a level of trust, transparency and complementary positioning with industry participants that simply has not yet existed in cannabis. The use of an ACA could challenge the competing perceptions that there is already alignment between regulators, operators and lenders, or that a useful alignment between these parties could ever exist.

An ACA could be a real and valuable tool for state governments and regulators as they begin to understand that it is in their best interests to assist cannabis businesses in their states in the face of continued federal illegality and restrictions. Under a private agreement between parties, the ACA would conduct something more akin to an administrative receivership as opposed to the traditional judicial receivership that is the only current option for insolvent cannabis businesses to seek relief.

Building upon a Cannabis Credit Rating Framework

Ideally, an ACA would work within an industry-specific credit rating system for cannabis businesses in distress in order to work within an established framework for potential investors. If cannabis companies are ranked across an equitable, systematic and formulaiccredit rating system, borrowers, lenders and regulators would benefit from the quantifiable transparency afforded by said rating, and debt financing would have an inherent regulatory-like structure to prevent predatory lending. By avoiding the courts, the distressed cannabis company would save time, money and create a more attractive scenario for potential lenders.

Initial Path to Mitigating Solutions

While the current challenges facing cannabis businesses today are well documented and have risen to both creditors and regulators attention, a viable solution has yet to be identified. Most likely no one solution exists beyond waiting for the economic and capital environments to evolve. Yet, mitigating options do exist.

The introduction of an ACA is one such option. Questions remain as to the mechanics, regulatory, operative and fiscal alike, as well as who to trust to take it on. The introduction of a credit rating framework is the first step to creating a solid foundation from within which an ACA can operate transparently and equitably. Any potential buy-in from regulators, creditors and operators remains an open question.

All of that said, there is today an unprecedented set of market forces that is pushing all cannabis stakeholders to think outside of the box. The still growing opportunities in the cannabis industry, the will of operators to survive and succeed, as well as the increasing exposure from creditors, all point to not only an acceptance for the need of an alternative, but to the drive to do things differently.

Is your cannabis business in distress? Would you benefit from expert guidance and support in deciding on whether to enter into a receivership?Reach out to United CMC today.

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One-Hit Wonders

United States: Alex Malyshev And Melinda Fellner Discuss The Intersection Of Tax And Cannabis In New Video Series – Part VI: Licensing (Video)

Published

1 year ago

April 4, 2023

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Carter Ledyard is pleased to announce the launch of our short-video series on the cannabis industry focusing on business and legal issues for those companies and entities interested in doing business in New York.

This series offers a perspective on tax policy and specific statutes affecting cannabis businesses today. Our cannabis shorts are a great way to get to know our professionals, Alex Malyshev and Melinda Fellner, in quick and easy to watch clips, packed with the salient information you need.

In Part VI of our series, Alex and Melinda discuss licensing for cannabis businesses in New York. Watch below!