Duane Morris attorney Justin Stern provided an update on Florida cannabis legislation during the “Cannabis 204: The Roundup of State Cannabis Legislation” webinar.
The full video replay of the webinar is also available.
Duane Morris attorney Justin Stern provided an update on Florida cannabis legislation during the “Cannabis 204: The Roundup of State Cannabis Legislation” webinar.
The full video replay of the webinar is also available.
“Credit unions may provide the customary range of financial services for business accounts, including loans, to lawfully operating hemp related businesses within their fields of membership,” says the National Credit Union Administration (NCRU) in its recently released guidance 19-RA-02.
While this is a significant step for hemp businesses seeking banking outlets, it is far from the relief proposed by Secure and Fair Enforcement Act (“SAFE Banking Act”) and does not represent a blanket permission. Still, the NCRU Guidance signals a recognition of the growing Cannabis industry and the practical need to provide financial services to businesses in the industry. Here are some key takeaways.
First, the guidance only applies to Federally Insured Credit Unions, not national banks.
Second, the guidance explicitly relates to credit unions serving “hemp” businesses as defined in the Agricultural Improvement Act of 2018 (2018 Farm Bill), which removed hemp from Schedule I of the Controlled Substances Act.[1] Marijuana remains a Schedule I drug, which restricts banking access of marijuana businesses.
Third, because the USDA has yet to promulgate regulations and guidelines to implement the hemp production provisions of the 2018 Farm Bill, credit unions must ensure members in hemp-related business are operating under the industrial hemp pilot provisions of the Agricultural Act of 2014 (2014 Farm Bill).
Fourth, credit unions that elect to bank hemp-related businesses must maintain robust Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance programs. This includes:
In sum, banking hemp-related businesses is permissible for credit unions. But they must be diligent in crafting BSA/AML policies. This is not a complete solution to the existing banking problems facing the Cannabis industry, but it does evidence a growing regulatory desire to provide access for the industry, which could sway policy makers down the road.
[1] The 2018 Farm Bill defines “hemp” as: “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”
Duane Morris attorney Neeraj Kumar provided an update on New York cannabis legislation during the “Cannabis 204: The Roundup of State Cannabis Legislation” webinar.
The full video replay of the webinar is also available.
Duane Morris partner Martin Shulkin provided an update on Massachusetts cannabis legislation during the “Cannabis 204: The Roundup of State Cannabis Legislation” webinar.
The full video replay of the webinar is also available.
Duane Morris partner Paul Josephson provided an update on New Jersey cannabis legislation during the “Cannabis 204: The Roundup of State Cannabis Legislation” webinar.
The full video replay of the webinar is also available.
How much marijuana is really in that pot brownie? Chocolate can throw off potency tests so labels aren’t always accurate, and now scientists are trying to figure out why.
In states where marijuana is legal, pot comes in cookies, mints, gummies, protein bars — even pretzels. These commercial products are labeled with the amount of high-inducing THC. That helps medical marijuana patients get the desired dose and other consumers attune their buzz.
But something about chocolate, chemists say, seems to interfere with potency testing. A chocolate labeled as 10 milligrams of THC could have far more and send someone to the emergency room with hallucinations.
[…]
Scores of cannabis-related inventions have received U.S. patents, said [Duane Morris partner] Vincent Capuano, who holds a doctorate in organic chemistry. Inventors have patented ways of putting cannabis into milk, coffee pods, ice pops and chewing gum.
“There’s a lot of flash and hipness, snake oil and marketing. But there’s still a lot of real chemical advance happening,” Capuano said of the industry. “It’s right in center field for chemists.”
[…]
To read the full article, visit the AP News website.
Duane Morris partner Neville Bilimoria provided an update on Illinois cannabis legislation during the “Cannabis 204: The Roundup of State Cannabis Legislation” webinar.
The full video replay of the webinar is also available.
Tracy A. Gallegos has joined Duane Morris LLP as a partner in the firm’s Corporate Practice Group. She will be resident in the Las Vegas office and also practice in San Francisco. Gallegos further enhances the firm’s corporate, real estate and cannabis law capabilities. Prior to joining Duane Morris, Gallegos was a partner at Fox Rothschild LLP.
“Tracy brings a big-picture understanding of the issues affecting businesses in the real estate, sports, cannabis and entertainment industries,” said Matthew A. Taylor, CEO and Chairman of Duane Morris. “Her collaborative, client-focused approach is a perfect fit with our culture at Duane Morris.”
To read the full press release about Duane Morris partner Tracy A. Gallegos, please visit the Duane Morris website.
Imagine for a moment that you are arrested for alcohol possession back when alcohol was illegal. Then, imagine you served a sentence in prison for that possession, perhaps an inordinately severe incarceration sentence. Then imagine that you get out of prison and find it almost impossible to find a job, find housing or obtain a loan due to your criminal record. Then imagine, to make things worse, that alcohol is now legal, yet you are still saddled with this criminal history which leaves you no room for social advancement.
Imagine also that in spite of your lack of chances to obtain a job, that the very illegality you were arrested for not only becomes legal through legislation, but also fosters a burgeoning industry in the prohibited substance, primarily by nondiverse corporate entities and persons. Sounds a little bit like a nightmare, but that is exactly the scenario that is developing around cannabis and medical cannabis across the country.
To read the full text of this article written by Duane Morris attorney Neville M. Bilimoria, please visit the Duane Morris website.
On July 22, the FDA issued a Warning Letter to Curaleaf with regard to Curaleaf’s “CBD Lotion,” “CBD Pain-Relief Patch,” “CBD Tincture,” and “CBD Disposable Vape.” The Warning Letter explains FDA’s view that Curaleaf’s CBD products are effectively “unapproved new and misbranded human drug products” because the claims Curaleaf has made about them on Curaleaf’s website and social media accounts demonstrate “they are intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease and/or intended to affect the structure or any function of the body,” but Curaleaf has not obtained prior approval from the FDA to market them as such. The Warning Letter also explains the FDA’s view that the subject products are not “dietary supplements” because (i) CBD has already been approved as an active pharmaceutical ingredient (epidiolex), (ii) CBD was not marketed as a dietary supplement or a conventional food prior to such FDA approval of CBD as an API; and (iii) the subject products are not “intended for ingestion,” which is a requirement of a dietary supplement. The FDA also warned about Curaleaf’s products with respect to animals, which I have not summarized. The FDA provided Curaleaf 15 days to establish a corrective action plan and to report such plan to the FDA. The Warning Letter demonstrates the FDA is actively monitoring CBD manufacturer websites and social media for over the line claims, and that CBD manufacturers need to follow the FDA’s guidance given the unsettled regulatory structure with respect to CBD.