Consumer demand for CBD products is on the rise and food and beverage businesses have new opportunities to expand, but expansion into this uncharted industry brings risk. Ambiguous rules and conflicting regulations all contribute to uncertainty. This is why it is crucial that you retain qualified legal advice before your business ventures into the hemp or CBD industry. Morsel Law is your startegic legal partner to help your business navigate conflicts between federal and state laws regarding hemp and CBD.
We help food and beverage clients understand new trends and technologies, and quickly adapt, while being mindful of evolving regulations and risk factors. Our skill in navigating sensitive issues stems not only from our extensive knowledge of the law and experience working with multiple stakeholders, but also from a strong grounding in the science behind food and supplement production.
Cannabidiol (CBD) is a chemical compound that can be derived from cannabis or hemp plants. CBD is not psychoactive, but it’s nevertheless a subject of intense debate and rapidly changing regulation. At Morsel Law, we continually monitor new developments and often work with legislators and regulators to implement changes that improve our clients’ ability to compete in the marketplace.
2018 FARM BILL
On December 20, 2018, the Agricultural Act of 2018 (“Farm Bill”) was signed into law, which removed hemp from the Controlled Substances Act. Thus, hemp is no longer a controlled substance and subject to enforcement under DEA regulations. Under the new Farm Bill, on the federal level hemp would be treated as an agricultural commodity. However, the legal status of hemp and CBD products when it comes to state law is not simple and straightforward.
SERVICE AREAS
Morsel Law offers a broad range of legal services. That means we’ve got you covered whether you’re looking to start, operate, grow or invest in a CBD-related business.
Regulatory Compliance
We assist clients with regulatory compliance and risk management. We have extensive experience working with the FDA, USDA and other regulatory agencies that affect the hemp and CBD industry, as well as varying state laws and enforcement efforts. We know how to track fast-moving changes and help you understand their impact on your business or investments. In addition to CBD-related laws, we can advise food and beverage manufacturers on regulatory issues, such as those related to food safety, product development, labeling and marketing, workplace safety, or opening a new facility.
Corporate
We support hemp and CBD businesses throughout its entire life cycle — from organization, financing and operation to mergers, acquisitions and divestitures. We provide guidance on ownership structure, entity formation and naming, licensure, corporate governance, commercial contracts, deal structuring, real estate, and much more.
Funding and Investment
We represent investors, established companies and entrepreneurs in various aspects of financing. This includes forming and growing new CBD businesses, private equity investments and venture capital and growth capital financing. We understand the added complexities of financing in this new field, such as issues related to interstate investment and sales, and licensed vs. unlicensed business activities.
Real Estate
Since the hemp industry is heavily reliant on the underlying agriculture commodity, it is critical that understands the intersection of real property law and hemp laws and regulations. We assist clients with all aspects of real estate matters, including acquisitions, dispositions, development, land use and zoning matters, financing, and agriculture and commercial leasing.
Intellectual Property
Morsel Law works with clients to protect, license and strategically manage all types of intellectual property, including trademarks, trade secret, trade dress and copyright.
Public Policy
We work with state legislatures and federal agencies to help clients shape the laws and regulations that impact their business.
EXPERIENCE
- Served as outside counsel in a merger between two privately held CBD businesses, including due diligence, risk analysis, licensing, equity swaps, and deal structuring and documentation.
- Represents a vertically-integrated operator with operations in CA and MA in various aspects of its business, including regulatory compliance, general corporate matters, commercial contracts and licensing, and intellectual property protection.
- Advised software company on regulatory and compliance issues related to providing software and payment processing services to CBD businesses, licensing agencies and state and local governments.
- Advised an e-commerce reseller of CBD products on federal and state regulatory compliance.