Cannabis Industry

April 27, 2019April 29, 2019 by David E. Landau

USDA Issues Guidance on Importation of Hemp Seeds

USDA has issued its first guidance since the passage of the 2018 Farm Bill. Because the Farm Bill removed hemp from the Controlled Substances Act, the importation of hemp seeds will now be regulated by USDA as an agricultural product, not DEA. USDA stated that by removing hemp from the CSA, the Act “removed hemp and hemp seeds from DEA authority for products containing THC levels not greater than 0.3 percent. Therefore, DEA no longer has authority to require hemp seed permits for import purposes.” Importation of hemp seeds from international sources will now be permitted if accompanied by the appropriate phytosanitary certification and will be subject to inspection by Customs and Border Patrol.

The reference to DEA authority is significant and confirms that DEA no longer has jurisdiction over hemp or products derived from hemp such as CBD oil. DEA needs to update its own guidance documents in light of the 2018 Farm Bill. USDA is working on regulations to implement the state cultivation program provisions of the Farm Bill. They are expected to be in place in time for the 2020 growing season.

April 22, 2019 by Duane Morris

Immigrants Can Be Denied U.S. Citizenship for Working in Regulated Marijuana Industry

Last week the U.S. Citizenship and Immigration Services (USCIS) issued guidance indicating that working in the marijuana industry, or even just possessing cannabis, could be grounds to reject a citizenship application—regardless of whether it is done in a state where it is legal. This guidance also would apply to permanent residents or “green card” holders seeking citizenship. The policy guidance is set forth in the USCIS Policy Manual and seeks to clarify that violations of federal controlled substance law, including violations involving marijuana, are “generally a bar to establishing good moral character for naturalization, even where that conduct would not be an offense under state law.” The policy guidance also clarifies that an applicant who is involved in certain marijuana-related activities may lack good moral character if found to have violated federal law, even if such activity has been decriminalized under applicable state laws.

Reports by various news outlets indicate that some lawful immigrants have already been denied naturalization by USCIS because of their employment in the cannabis industry. According to USCIS, as long as marijuana remains illegal under federal law, the agency won’t grant special considerations to individuals whose marijuana activities may be decriminalized under state or local law. The position of USCIS is that “marijuana remains illegal under federal law as a Schedule I controlled substance regardless of any actions to decriminalize its possession, use, or sale at the state and local level, federal law does not recognize the decriminalization of marijuana for any purpose, even in places where state or local law does.”

As we know, the U.S. Customs & Border Patrol has prevented some Canadian citizens from entering the U.S. because of their involvement in the cannabis industry. It remains unclear how strict USCIS will be in enforcing the latest policy guidance on citizenship. For the time being, participation in the cannabis industry will continue to constitute a potential bar to a determination of good moral character for naturalization eligibility, even where such activity is not a criminal offense under state law.

April 19, 2019February 25, 2025 by Duane Morris

Duane Morris Partner Named Cannabis Attorney of the Year

Jennifer Briggs Fisher, partner and a team lead of Duane Morris’ Cannabis Industry Group, has been named Cannabis Attorney of the Year by Bonaventure Equity. The award was presented at the Cannabis Dealmakers Summit on April 18 in San Diego.

Ms. Fisher regularly works with cannabis companies and ancillary businesses in California and throughout the nation, as well as in Canada, to provide compliance advice on a wide range of issues related to legal cannabis and hemp business activities. She is an experienced litigator, provides advice on regulatory and compliance issues and has represented corporations and individuals involved in a broad range of complex and high stakes civil, criminal, legislative and administrative proceedings.

April 4, 2019October 17, 2019 by Duane Morris

FDA Announces Its Next Steps for Cannabis Products

With the enactment of the Agriculture Improvement Act of 2018 (also known as the 2018 Farm Bill), hemp-derived CBD appeared to be on the table for marketing all across the country. However, the U.S. Food and Drug Administration’s (FDA) press release issued that same day put a hold on the jubilation, stating that FDA considered any and all cannabis-containing or cannabis-derived products as drug products and not food or dietary supplements, regardless of whether the CBD was hemp-derived.

On April 2, 2019, departing FDA Commissioner Scott Gottlieb issued a statement about FDA’s next steps to advance a regulatory pathway for cannabis-containing and cannabis-derived products. At the same time FDA updated its cannabis-containing products and cannabis-derived products Q&A. It is clear that, at this point, FDA has not changed its position.

Read the full Alert on the Duane Morris LLP website.

March 25, 2019 by Duane Morris

Paul Josephson to Speak at Crain’s Presents The Business of Cannabis

Photo of attorney Paul Josephson — Paul Josephson

Duane Morris partner Paul Josephson will be a panelist at “Crain’s Presents The Business of Cannabis: Growing a Sustainable Industry in the Empire State,” to be held on Thursday, April 18, 2019 from 8:00 a.m. to 11:00 a.m. at The New York Athletic Club in New York City.

For more information about the event, please visit the Crain’s New York Business website.

March 7, 2019 by David E. Landau

No Hemp Transport Through Idaho

A recent decision by a Federal Magistrate Judge for the United States District Court for the District of Idaho upheld the seizure of an industrial hemp shipment in January after the enactment of the 2018 Farm Bill.

On January 24, 2019, Big Sky, a Colorado-based company, shipped industrial hemp from Oregon thorough Idaho on its way to Colorado. The hemp was seized in Idaho and the driver arrested for illegal transportation of marijuana. The crime carries a 5 year mandatory sentence. Big Sky sued for a temporary restraining order to release the hemp under the 2018 Farm Bill. The Court found that because no plan from the State of Oregon had been approved by the Department of Agriculture, the seized hemp was not produced in accordance the 2018 Farm Bill. The Court held that at this point time, without USDA approval of a state hemp plan, the Interstate Commerce Clause provisions of the Farm Bill do not apply. A Temporary Restraining Order was denied on 2/2 and the Preliminary Injunction was denied on 2/20. Big Sky Scientific LLC v. Idaho State Police et al., No. 1:19-cv-00040-REB (D. Idaho, February 2, 2019). The case is on expedited appeal to the Ninth Circuit. Opening brief is due 3/20.

This decision is contrary to the intent, if not the letter, of the Farm Bill. It creates confusion about the what is permissible now, prior to USDA regs and approval of state plans.

February 13, 2019February 25, 2025 by Duane Morris

Harborside Positions Itself for the Future with Big Merger

Add to the list of companies making major moves in terms of expansion the legendary name of Harborside. They recently announced a reverse merger with Canadian-based Lineage Grow Company.

Harborside is not the first United States-based company to use a reverse merger to take advantage of the more advanced Canadian markets, and they won’t be the last. “US-based cannabis companies are increasingly taking advantage of the robust Canadian capital markets,” Nanette Heide, co-chair of the private equity practice at Duane Morris LLP and the attorney who represented Harborside in the deal, told The Marijuana Times. “The transactions are somewhat complex in structure, but executed well can provide ready access to capital for growth and expansion.”

To read the full text of this article, please visit the Marijuana Times website.

February 5, 2019 by Duane Morris

The 2018 Farm Bill Preserves FDA Right to Regulate Cannabis Products

Last year was a record year for cannabis. Canada passed the Cannabis Act, making adult-use cannabis legal there. The FDA approved a cannabidiol-based medicine, Epidiolex. And the President signed the Agriculture Improvement Act of 2018, aka the 2018 Farm Bill, into law on December 20, 2018.

While the 2018 Farm Bill granted the U.S. Department of Agriculture the ability to regulate hemp, it also preserved the right for the U.S. Food and Drug Administration (FDA) to regulate products containing cannabis or cannabis-derived compounds. The FDA regulates products such as human and animal drugs, biological products, cosmetics, food and animal feed, among other things. So any inclusion of cannabis or cannabis-derived compounds, like CBD, in any of those types of products would be regulated by the FDA. The FDA has stated that this is true regardless of the source of the cannabis substance, be it hemp or marijuana.

Read the full Duane Morris alert.

February 5, 2019 by Duane Morris

Is New Hampshire the Next State to Legalize Cannabis?

The first public hearing on New Hampshire House Bill 481, which would legalize the adult use of cannabis in the state, is scheduled for February 5, 2019. The bill outlines how New Hampshire would regulate cannabis products, including recreational “adult use” products, the licensing and regulation of sales establishments, and the taxation scheme.

Massachusetts, Maine and Vermont all have legalized the “adult use” of cannabis, leaving New Hampshire as the only state in northern New England that has yet to do so. New Hampshire’s economy is very integrated into the New England and Metro Boston economies and serves as a valuable new market for the cannabis industry.

The February 5 public hearing will begin at 1:00 p.m. at Representatives Hall in the State House before the House Criminal Justice and Public Safety Committee. The committee will amend the bill the following day, vote on the bill on Thursday, February 7, and send the bill to the floor of the New Hampshire House for its consideration in February.

Although Governor Christopher T. Sununu has said he will veto the bill, the bill is receiving bipartisan support and is expected to easily pass the House and Senate in the coming weeks, setting the stage for a potential veto override. It is also anticipated that the legislative effort will take a couple of months. Duane Morris will continue to follow these developments.

Read the full Duane Morris Alert.

January 17, 2019April 6, 2020 by Ryan Wesley Brown

New Cannabis Regulations Approved in California

On January 16, 2019 the California Office of Administrative Law (OAL) approved the final regulations that were submitted by California’s three licensing agencies, the Bureau of Cannabis Control (BCC), the Department of Food and Agriculture (CDFA) and the Department of Public Health (CDPH), in December. These new, approved regulations went into effect immediately, meaning the previous emergency regulations (under which the industry has been operating for the past year) are no longer in effect. The regulations can be viewed here.

In a joint press release issued by the three agencies, BCC Chief Lori Ajax stated: ““These approved regulations are the culmination of more than two years of hard work by California’s cannabis licensing authorities. Public feedback was invaluable in helping us develop clear regulations for cannabis businesses and ensuring public safety.”

Continue reading “New Cannabis Regulations Approved in California”