On August 21, the Drug Enforcement Agency (the “DEA”) released an Interim Final Rule (the “Rule”), which, in part, suggests that in-process hemp extract shall be treated as a schedule I controlled substance during any point at which its THC concentration exceeds 0.3 percent on a dry weight basis. "Any point" includes even fleetingly during
The U.S. cannabis industry attracts all kinds of entrepreneurs and investors. That has been true since Colorado and Washington legalized cannabis for adults 21 and up back in 2012, and since other states began creating comprehensive licensing regimes. The ever-emerging nature of the industry and its state-by-state quilt of regulations creates all kinds of business
A few weeks back, the Cannabis Law Institute invited me to discuss contract drafting for cannabis deals. A focal point for the panel was whether courts are willing to enforce cannabis contracts. The last time I had really looked at that issue was early 2019, when I wrote: Cannabis Dispute? Courts are Open. As the
For some reason, many cannabis businesses believe that because they're already violating the federal Controlled Substances Act, they're free to violate other existing federal laws. This of course is not the case, and never has been. Even though cannabis businesses can't get legitimate recognition or fair treatment from the Department of Justice or the Drug
Last week, Oregon Representative Kurt Schrader (D) and Virginia Representative Morgan Griffith (R) introduced The Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2020 (“H.R. 8179”). If enacted in its current form, H.R. 8179 would legalize the manufacture, sale and marketing of hemp, hemp-derived cannabidiol and other hemp extracts (collectively referred to
Recently the Securities and Exchange Commission (“SEC”) adopted final amendments to expand the definition of an accredited investor, something that has not happened in nearly 40 years. This is a big deal for cannabis companies (and all other companies) that are in fundraising mode because many of these companies rely on Rules 506(b) and 506(c)
Until a few weeks ago, everyone in the hemp world thought the next big development would come from the federal Food and Drug Administration (after all, the FDA recently submitted proposed guidance to the White House, which has yet to be released). Unfortunately, the Drug Enforcement Administration (DEA) dropped a surprise interim hemp rule a
Everyone in the hemp industry knows that last fall the U.S. Department of Agriculture (“USDA”) released its interim hemp rules governing the production of hemp. Our hemp-CBD attorneys have written extensively about the new hemp rules and their shortcomings, as well as the panoply of different hemp regulations at the state level and the DEA’s
Every week, clients ask us to review their hemp-derived cannabidiol (“Hemp CBD”) products to ensure “full compliance.” Unfortunately, given the patchwork of often conflicting state labeling laws, and the lack of a federal pathway for the sale and marketing of these products, it is virtually impossible for Hemp CBD stakeholders to meet compliance standards. Consequently,
In an inevitable conclusion, the Drug Enforcement Administration ("DEA") and Department of Justice ("DOJ") won their federal court case against the California Bureau of Cannabis Control ("BCC") pursuant to which the BCC must now comply with a recent DEA subpoena regarding alleged criminal activity by certain state-licensed distributors hailing out of (what's probably) San Diego
