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New York City Sues Unlicensed Cannabis Dispensaries and Landlords

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As New York cannabis retail licensing proceeds at a snail’s pace, countless businesses are openly selling marijuana products out of unlicensed stores and smoke shops. It is obvious to anyone walking through New York City that the city has been unable to reign in these “businesses.”  After allegedly sending cease and desist notices to those business, the city is now targeting landlords of those retail spaces.

New York City’s lawsuits against unlicensed cannabis dispensary landlords

This week, the City began filing lawsuits against unlicensed dispensaries and their landlords. One litigation that is a good example of the tactics and strategy the city is utilizing is The City of New York v. The Land and Building Known as 14 First Avenue, et al., Index No: 450378/2023 (“Land Building”.)  The suit alleges that undercover, underage police officers bought marijuana at each of the shops on three occasions in December and those premises did not have a CAURD license to sell marijuana.

In each filing, the city demands financial penalties from both the landlords and store owners. The City is relying on the same public nuisance laws that usually are used when landlord refuse or fail to evict tenants that operate brothels and

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Happy Holidays from The Canna Law Blog

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Wishing all of our readers, along with friends and families, the very best this holiday season.

Whether you celebrate Hanukkah, Christmas, Kwanzaa, Winter Solstice, Festivus, or something else, we hope you can kick back and enjoy this wonderful time of the year.

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How Important is the SAFE Banking Act, Anyway?

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I’m pretty sure that more ink has been spilled on the Secure and Fair Enforcement Act (“SAFE Banking”), than any other proposed cannabis law. It just won’t pass and it just won’t die. Specifically, SAFE Banking was introduced in 2017 and it passed the House seven times (seven times!) with bipartisan support since 2019. The public likes it too: here’s a November 2022 Data for Progress poll revealing that “By a +65-point margin, voters support ensuring that banks do not discriminate against legitimate marijuana-related businesses.” This bill should pass, right?

It’s getting closer. SAFE Banking will finally go to mark-up this week in the Senate Banking Committee. That Committee is preparing to vote before October 1, although what they’ll be voting on at this point isn’t entirely clear. (For some chatter on that, check out this Marijuana Moment piece from last Friday.) But let’s assume that SAFE Banking, after mark-up, holds onto its key tenets. It would prevent federal banking regulators from:

prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as a lawyer or landlord providing services to a legal cannabis business); terminating or

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Employment Law Issues for Struggling Businesses

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We all know the Oregon cannabis industry is struggling. We write often about the causes on a macro level, possible solutions, and what we see as business litigators. We haven’t written much about one of the basic areas of employment law that applies to Oregon marijuana businesses: workers rights to wages and employer responsibilities. As marijuana businesses shutter, employees and employers should pay careful attention to Oregon’s wage laws. This post addresses basic things marijuana employees and employers ought to know about paying wages when employment ends.

No formal contract is required to create an employment relationship

There is no requirement under Oregon law for a formal contract to establish an employment relationship. As long as the ordinary elements of contract formation are present an employment relationship exists. Usually this means that the person for whom the service is performed (employer) agrees to have another perform the service (employee) for a certain remuneration (wages). And where the putative employer has a right of control over the services provided by the putative employee.  Typically this boils down to compensation and right-of-control.

When these elements are present an employer’s promises of wages and benefits are binding. On the flip side, the general

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