Aug 25, 2020
The Cannabis Business from Legal to Accounting
- BRT S01 EP29 8-23-2020
What We Learned This Week
- Cannabis has many legal issues in how to run the biz, Fed illegal, zoning rules, to what court handles legal disputes & More
- Banking is tricky in Cannabis, only State banks, hard to get merchant accounts or loans
- Cannabis is an all CASH business, needs lots of Cash Control + Security
Guest: Adam Trenk w/ Rose Law Group https://www.roselawgroup.com/trenk-adam-m/
https://www.linkedin.com/in/adam-trenk-264b817/
Partner and Director of Cannabis, Hemp and Equine Law Departments, Adam talks about the legality of Cannabis and Hemp, regulations, State Laws. He also operates in the Hemp industry.
Bio:
Adam M. Trenk practices law in the areas of cannabis and hemp regulation, public policy, zoning, aviation, equine, and business. He also works as a strategist consulting across multiple industries on matters of government relations and corporate development.
Adam is a Rose Law Group partner and director of the firm’s Cannabis, Hemp, and Equine Law Departments. Drawing on his experience helping maximize the productivity of agricultural operations, Adam has positioned Rose Law Group’s Hemp Law Department as the premier hemp practice in Arizona. Under Adam’s direction, the Hemp Law Department has worked closely with the Department of Agriculture to formulate the rules that govern the state’s new and growing hemp industry.
Adam has been instrumental in Rose Law Group’s Cannabis Law Department since its inception when he began in the area working on the original implementation of Arizona’s medical marijuana program. Adam draws on his considerable experience in business transactions and navigating the cannabis industry’s legal landscape to support Rose Law Group’s clients in all facets of their cannabis businesses.
As founder and chair of Rose Law Group’s Equine Law Division, Adam draws on equestrian knowledge accumulated from a lifetime of involvement in various disciplines across the country, and can handily facilitate a range of transactions including breeding, boarding, buying, selling, or leasing or horses. He is also able to help resolve conflicts and litigate matters arising out of the pursuits of horsemen and women.
He attended Arizona State University, where he obtained a Bachelor of Science in Small Business Management and Entrepreneurship from the W.P. Carey School of Business (2005). After graduating he launched a career in real estate, working for a real estate investment firm and then branched out on his own as a real estate property asset consultant while investing in and managing his own investment properties and pursuing his education.
Adam went on to earn a Masters of Real Estate Development (2007) and then his Juris Doctorate (2010) from Arizona State University. In law school, Adam built his curriculum around alternative dispute resolution and real property law. Beyond his work in Arizona, he has been sworn in to practice law in Kentucky and is currently applying for admittance to the Colorado Bar Association.
Adam has been active in his community, serving as a board member for the Cave Creek Merchant’s Chamber of Commerce and sitting on the Citizen’s Advisory Committee to the Town Council prior to making a run for a Council seat himself. Adam was first elected to hold a seat on the Cave Creek Council while he was in law school in 2009, and served as Vice Mayor from 2013 to 2015.
Notes:
Cannabis business legal issues
Land use and zoning for dispensaries, hemp farms (outdoor), cannabis growing (indoor) in industrial areas – setup and licensing, permits
Schedule 1 controlled substance on federal level, illegal
CBD and Hemp legal in all 50 states, passed few years ago
Legal issues with banking – what banks will work with Cannabis
Freeze $ with bank, or merchant co. – how handle
No fed bank will work w Cannabis industry, state bank work with Cannabis
Contract legal issues w/ Fed
Legal disputes – what court (state) handles
Business loans for Cannabis – get private $ and loans, NO bank loans
Business is regulated, product has bar codes and RFID chips, monitor who can handle and where it travels
Need medical marijuana card to work in industry and handle product
Guest: Melissa Diaz w/ Rebel Rock
- customized accounting solutions, HR, and M&A for the Cannabis industry in AZ
https://rebelrock.co/melissa-diaz/
https://www.linkedin.com/in/melissa-k-diaz-cpa-10215623
Melissa’s accounting experience as a CPA spans numerous industries, both domestically & internationally, including healthcare, hospitality and, of course, Cannabis. In addition to co-founding and serving as CFO to Rebel Rock, Melissa is CFO and Shareholder for High Rock Accounting, which places an emphasis on utilizing technology to strategically make day-to-day and long-term financial decisions, while pursuing company goals and compliancy. At High Rock and Rebel Rock, Melissa helps companies remain competitive and efficient in increasingly high-pressure and high-stakes environments. Starting in 2016 she started branching out into the Cannabis industry.
Melissa discusses banking, accounting, regulations, and VC in Cannabis. She does customized accounting solutions, HR, and M&A for the Cannabis industry in AZ.
Notes:
Legal issues with banking – what banks will work with Cannabis
Fintech banking for Cannabis – Paypal, merchant services, etc.
Tax Returns for Cannabis co’s, any issues with Fed reporting
Business loans for Cannabis
Laws & Regulations – burdensome
Market unpredictable with rules changing
Corporations in industry - Constellation Brands (Corona Beer)
$5 billion into company growth
Chains like MedMen in CA take over
7 women to watch in Cannabis - Green Entrep. Article & keep records
2020 Liability Insurance (D&O)
Legal compliance, regulations oversight / Accounting & books
IRS Code 280E – federally illegal
BRT Shows w/ Melissa Diaz:
https://brt-show.libsyn.com/size/5/?search=melissa+diaz
Cannabis Topic: https://brt-show.libsyn.com/category/Cannabis-Hemp-Marijuana
Best of Cannabis on BRT:
https://brt-show.libsyn.com/size/5/?search=best+of+cannabis
‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT
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