With a deep well of experience in the cannabis industry, Dentons can advise Kentucky cannabis clients on state licensure applications, local land use and license approvals, regulatory compliance, lending transactions, securities offerings and other corporate transactions, real estate, litigation, employment and other legal matters.

• Regulatory compliance: State-legal cannabis businesses are heavily regulated, from who can own them to where they can be located to how products must be packaged. Failure to comply can result in expensive fines or, worse, denial or suspension of a license to operate. Our cannabis team understands these regulations, which are specific to cannabis and require an understanding of the industry.
• Licensing: Our team has helped hundreds of cannabis companies across the country with state and local license applications and renewals. This work has included winning merit-based licenses in states with limited licenses as well as preparation of standard operating procedures, OSHA compliant safety plans, odor mitigation plans, and other required documentation.
• Local government: Under Kentucky’s Senate Bill 47, local government has authority to regulate cannabis businesses. Our cannabis team guides clients on navigating local laws governing cannabis businesses, strategizing on educating officials and the community about their business, and gaining public support when needed for approving cannabis operations in specific locations.
• Real estate and financing: Kentucky’s Senate Bill 47 includes statewide restrictions on where cannabis businesses may be located. At the federal level, cannabis continues to be a Schedule I drug under federal law, which creates unique risks to landlords leasing to cannabis businesses. We counsel licensees and applicants on real estate acquisitions, facility construction and zoning matters.
• Corporate structure and contracts: Our corporate group advises cannabis businesses on proactive strategies and business planning such as entity formation, ownership structure, financial matters and governing documents.
• Taxes: Cannabis businesses face unique tax requirements under Internal Revenue Code Section 280E. The IRS has applied Section 280E to state-legal cannabis businesses since cannabis is still a Schedule I substance under federal law. Our Tax lawyers assist cannabis businesses with 280E mitigation strategies, tax advice concerning corporate structures (including ESOPs), as well as cannabis industry tax issues like cash transaction reporting (CTR) IRS Form 8300 requirements and cannabis excise taxes.
• Employment: The Dentons employment law group advises cannabis employers of all sizes on the full spectrum of employment-related issues, from the very first hire to termination, and everything in between. Our team provides general advice and counsel on workplace best practices including compliance guidance related to compensation, timekeeping, meal and rest breaks, overtime, equal employment opportunity policies and practices, performance management, employee disciplinary issues and employee leave requirements. Our team is also equipped to defend cannabis employers against claims brought by employees in state or federal court and in front of administrative agencies.