Los Angeles-based Sheppard, Mullin, Richter & Hampton is going in big on cannabis law, forming a team that aims to bring specialties ranging from regulation to real estate and tax under one roof for clients that may need them all.

The firm said it is assigning 70 attorneys from across 12 of the firm's offices to create one of the largest cannabis practices in the country. The practice is being run by San Diego real estate partner Whitney Hodges.

"We really have a boots-on-the-ground approach to this," Hodges said. "We have corporate, labor, real estate and other areas ready."

Hodges acknowledged that Sheppard Mullin isn't the first big firm (and won't be the last) to announce its formal arrival on the cannabis scene. But she said the size of the group—dozens of lawyers, in a dozen offices, with 40 active cannabis clients already—differentiates the practice from others.

There shouldn't be a shortage of work. Although there is a lot of money flowing through the cannabis industry, regulatory, banking, real estate and IP issues cause consistent problems for any business involved in the growth, distribution, marketing and even legal advisory elements of the trade. Even maintaining a bank account can be difficult for entities involved in the industry.

Federal regulations differ from state regulations, which differ from municipal laws. Even in states like California, where recreational legalization passed with broad support, local laws vary from city to city and wreak havoc on companies attempting to do business in them.

But tides are turning. The replacement of former attorney general Jeff Sessions with William Barr was seen as a positive sign for those looking for a less hard-line approach on federal enforcement of cannabis laws.

Banking issues, long a thorn for any entity involved in cannabis, are being addressed (albeit slowly). The Secure And Fair Enforcement (SAFE) Banking Act passed committee back in March of this year and has gained support within the House and Senate. The bill would make it much easier for those involved in the cannabis industry to have more traditional financial arrangement with their banks (such as a checking account). But passage of the law is far from certain.

Several major law firms have established cannabis practices over the past five years as stigmas about the industry have eroded as more and more states have allowed varying degrees of legalization. The idea of a "green rush' has made for more a compelling business case for firms to dedicate resources to the practice.

Sheppard Mullin said its cannabis client list includes distributor and grower MassRoots, Los Angeles-based cannabis farm JoshD Farms, investment fund Uniqorn Capital Investments, cannabis-oil extraction company Mextraction LLC, and Nevada-based Cannelure Partners LLC.

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