Sean M. O'Connor and Jason Liu, The Risks of Clouded Property Title for Cannabis Business Owners, Investors, and Creditors, 3 Tex. A&M J. Prop. L. 67 (2016), https://digitalcommons.law.uw.edu/faculty-articles/194
Texas A&M Journal of Property Law
cannabis, Controlled Substances Act, forfeiture
This Article provides a brief primer on the surprising range of assets that the Controlled Substances Act forfeiture provisions govern for the state-legal cannabis businesses. It outlines these provisions for tangible as well as intangible property, with an emphasis on risks to state-legal cannabis businesses’ intellectual property and issued securities.
We argue that these forfeiture risks create clouded title for all subject tangible and intangible property—not only for the state-legal businesses and their proprietors, but also for those businesses’ outside investors, creditors, and suppliers/contractors.