New York State’s recently passed 2024 budget includes many cannabis-related provisions, addressing enforcement, licensure, and penalties, with the goal of curbing the state’s illicit marijuana market. Specifically, Governor Kathy Hochul signed legislation granting the state Office of Cannabis Management (“OCM”) certain enforcement powers. Enforcement tools at OCM Several of the new enforcement tools at OCM’s enforcement
We’ve recently received a number of inquiries about whether it is legal to import marijuana seeds into the United States. These are seeds derived from marijuana plants that have a THC content less than 0.3%, but when planted will germinate into marijuana plants that have a THC content more than 0.3%. The seeds themselves have
Cannabis users cannot own or possess firearms under federal law. This is true even in states where cannabis is legal, and even for medical patients. These gun rights are very likely going to be held unconstitutional. But the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is clinging to them nevertheless. I’ve written pretty extensively
As a corporate attorney, one of the most common errors I see is failure to implement even basic corporate governance practices. This can lead to astoundingly bad places in certain circumstances. But even when it doesn’t, it is often costly to reconstruct past corporate actions. And that cost can be defrayed relatively easily. One way
Corporate governance is a basic requirement of any business. So of course, cannabis businesses often just ignore it. Some of them may pay a lawyer to put together a simple set of bylaws and an organizational resolution (or operating agreement for an LLC), and then basically close their files until something “big” comes up. This
We recently wrote a post entitled, “Cannabis Collections Headaches and What to Do.” In it, she discussed a problem that’s been plaguing California cannabis businesses throughout: distributors and retailers that don’t pay their bills. Towards the end of the article, she mentioned a piece of proposed legislation to address the problem, AB 766, which would
FTC Warning letters Marketing CBD products is a challenge. For years we’ve written about risks associated with making health-related claims in marketing. But there’s another avenue that the federal government doesn’t like: unsubstantiated claims. Last week, the Federal Trade Commission (FTC) decided to ratchet up enforcement and sent out warning letters to nearly 700 companies
European Union member states tend to be very conservative when it comes to cannabis legalization. With a few exceptions, most member states prohibit cannabis altogether. Other countries decriminalize cannabis and a handful have adopted modest medical marijuana programs. Germany, the EU’s biggest economy and arguably most influential nation, has been on the path towards recreational
As Minnesota approaches the legalization of marijuana, the Minnesota Supreme Court has just ruled on a case we covered in September 2021. The case involves the difference between hemp and marijuana and a state prosecutor’s burden to prove what side of the line a leafy or liquid cannabis substance falls. As we explained two years
We’ve written regularly about the plight of cannabis businesses not being able to secure traditional lending (and other financial services) from major, federally regulated institutions. In this post, we dive deeper into a promising federally regulated equity offering as an alternative funding means: Rule 504 under Securities and Exchange Commission (“SEC”) Regulation D. Why aren’t
