Client Alerts, News Articles & Blog Posts

Everything you need to know about BMD and the industry.

Will Federal Legislation Open Cannabis Acquisition Floodgate?

Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?

When tobacco giant Altria invested $1.8 billion in Cronos, and beverage behemoth Constellation Brands invested in Canopy, the investments did not require the assumption of a smorgasbord of unknown risks that come with investing in federally illegal enterprises since neither Cronos nor Canopy had any “illegal” US operations. These include key business issues and concerns, such as banking relationships (almost certainly mitigated by the SAFE Act), stock exchange listings and liquor licensing.

It was recently disclosed that Altria, which has been acquiring ancillary cannabis businesses and intellectual property since its Cronos deal, has engaged lobbyists to promote its cannabis interests. It wouldn’t be much of a leap to speculate that they, and other potential strategic tobacco, beverage and pharma company investors, are both carefully analyzing the pending legislation in the US and actively working to firmly place their feet in the open door and widen the porthole, facilitating a new wave of acquisition activity.

Right now, as the financial performance of cannabis businesses is beginning to pop, the shelves of the acquisition market are fully stocked with potential acquisitions candidates of all sizes, shapes and flavors. If the door is opened, competition and pricing could be eye popping. Think “first mover advantage.”

Stay tuned.

For questions, please contact Business and Corporate Law Member and Managing Partner of BMD's Phoenix/Scottsdale location Stephen Lenn at salenn@bmdllc.com, or 480.687.9747.

Changes to Physician Assistant Statutes in Florida

In the last year, there have been many changes to the scope of practice and collaboration/supervision requirements for advanced practice providers such as APRNs and physician assistants in the state of Florida. In a previous Client Alert we discussed House Bill 607, which expanded the autonomous practice of APRNs providing primary care services in Florida.

Ohio Senate Bill 49 – Ohio Expands Lien Rights for Design Professionals

Effective September 30, 2021, Ohio granted limited lien rights to design professionals, including architects, landscape architects, engineers, and surveyors. Ohio Governor Mike DeWine signed Senate Bill 49 into law on July 1, 2021. This new law established a statutory right to lien commercial real estate by Ohio design professionals who, until now, could not file a lien for non-payment of professional services. Senator Vernon Sykes, a primary sponsor of Senate Bill 49, stated that the “legislation ensures that architects, engineers and other designers will get paid for their work, regardless of the outcome of their projects . . . It will support hardworking Ohioans by protecting the value of their labor . . ..”

Primary Care Practice Officially Defined in Florida for APRNs Practicing Autonomously

As many providers in Florida are aware, House Bill 607 (the “Bill”), which was passed in February of last year, gives certain APRNs in Florida the ability to practice autonomously. The only catch is that they must work in primary practice. When the Bill was initially passed, there was question as to what was exactly considered primary care, absent a definition from the Florida Board of Nursing. However, as of February 25, 2021, “primary care practice” has officially been defined.

Part II of the No Surprises Act

The Department of Health and Human Services (“HHS”) published Part II of the No Surprises Act on September 30, 2021, which will take effect on January 1, 2022. The new guidance, in large part, focuses on the independent dispute resolution process that was briefly mentioned in Part I of the Act. In addition, there is now guidance on good faith estimate requirements, the patient-provider dispute resolution processes, and added external review provisions.

Safer Federal Workforce Task Force - Guidance for Federal Contractors and Subcontractors

The Safer Federal Workforce Task Force has issued its Guidance for Federal Contractors and Subcontractors (Guidance). Note that the Guidance applies only to “covered contracts,” which are contracts that include the clause (Clause) set forth in Sec. 2(a) of Executive Order 14042 (Ensuring Adequate COVID Safety Protocols for Federal Contractors). The Federal Acquisition Regulatory Council (FARC) is to conduct rulemaking and take related action to ensure that the Clause is incorporated into federal contracts. Until that happens, federal contractors likely will not see the Clause in its contracts. Following is a broad summary of the Guidance.