The U.S. Department of Agriculture (“USDA”) announced on February 27, 2020, that it would give hemp farmers a 20-month reprieve from a regulation requiring growers of hemp to have crop THC levels tested at laboratories registered with the Drug Enforcement…
By way of background, “hemp,” as regulated under the Narcotics Act, is currently defined as having tetrahydrocannabinol (THC) in leaves and flowers not exceeding 1% per dry weight. Certified hemp seeds are seeds of hemp that has THC in leaves…
As popular as cannabis has become as a recreational and medicinal agent, that popularity and the nascent nature of the cannabis industry have created a difficult scenario whereby manufacturers and sellers of these products are being sued with increasing frequency.…
Although it may appear that the progress of cannabis liberalization may not seem to move as fast as most investors expect, from the experience of seeing the changes or drafting of the new laws which give significant impact to the…
January 4, 2020 marked the two year anniversary of the “Sessions Memorandum” in which (then) Attorney General Jeff Sessions rescinded the Cole Memorandum and other Obama era DOJ guidance which essentially stated that DOJ would not prosecute state-compliant marijuana-related activity. …
Robert Mikos is one of the nation’s leading experts on federalism and drug law. His most recent scholarship analyzes the struggle among federal, state, and local governments for control of marijuana law and policy, which includes a first-of-its-kind casebook, Marijuana Law,…
The prospective relaxation of cannabis regulations in jurisdictions around the world offers opportunities for investment for UK businesses. However, investors should be wary of potential exposure under UK anti-money laundering (“AML”) legislation and consider taking appropriate safeguarding actions prior to…
The risk of corruption in state cannabis licensing has once again been highlighted by recent reports that a federal grand jury has subpoenaed at least seven Massachusetts cities, including Boston, for information about contracts between cannabis firms and municipalities. The…
The term cannabis has been in the spotlight recently not only in Thailand but also around the world as there have been many recent developments regarding medical and recreational cannabis that are worth noting and have spurred investments in many…
As discussed in our previous post, Mexican lawmakers had until the end of October to issue regulations on cannabis. Nonetheless, and even though a preliminary draft bill for cannabis legalization was recently introduced in the Congress, the Mexican Senate now…
On Tuesday, October 29, the US Department of Agriculture (USDA) established the US Domestic Hemp Production Program through the issuance of an interim final rule (the “Rule”). The USDA published the Rule on Thursday, October 31, in the Federal Register.…
Cannabis was high on Australia’s regulatory agenda in September, with two significant developments. In our last post we discussed the tabling of Professor John McMillan AO’s Final Report in Parliament on 5 September 2019, which recommended extensive amendments to the…
Although prosecution of state-legal sales by licensed and compliant cannabis businesses may not be a current priority for federal law enforcement, prosecution of corruption in the industry clearly is. Consider the following, all of which have occurred within the last…
Our prior post discussed the rapidly evolving cannabis regulatory environment in Mexico. As the Supreme Court-ordered deadline for lawmakers to end cannabis prohibition approaches, Senators raced against the clock and unveiled last week a preliminary draft bill of a law…
Executive summary Professor John McMillan AO’s Final Report of the review of Australia’s medicinal cannabis framework under the Narcotic Drugs Act 1967 (Cth) (ND Act) was tabled in Parliament on 5 September 2019, ahead of the 29 October 2019 target…
Less than one year since medical cannabis was legalised in the UK and just two months since the first medical cannabis clinic opened in London (as reported in our last blog post), a cannabis-based drug has been approved for use…
In recent posts, we discussed lessons learned from recent compliance cases in the cannabis industry, and provided a checklist of key due diligence issues. In both articles, we highlighted the importance of independent verification of state cannabis licenses. Unfortunately, it…
Welcome to the Global Cannabis Compliance Podcast Series. Because we have received so many requests from readers for more information about the topics we have been covering, we have decided to start a podcast series featuring in-depth discussions with experts.…
Cannabis legalization is proceeding in Mexico after several years of no action. In 2017, Mexico published an amendment to its General Health Law that allowed THC use for medical purposes and ordered the government to implement secondary regulations to support…
The cannabis industry operates at a disadvantage vis a vis other industries because Section 280E of the Internal Revenue Code prohibits business expense deductions for businesses that “traffic” in federally controlled substances, including cannabis. As a result, cannabis companies pay…
On September 25, 2019, the House of Representatives passed the “Secure And Fair Enforcement Banking Act of 2019” or the “SAFE Banking Act of 2019” (H.R. 1595) by a vote of 321 to 103. If adopted, the SAFE Banking Act…
It seems as though no matter where you go these days, you’re bound to encounter a product containing cannabidiol, commonly referred to as CBD. As you have likely heard by now, the 2018 Farm Bill (formally, the Agriculture Improvement Act…
Many countries across the globe are in the process of decriminalising the medical and recreational use of Cannabis, and Africa is no exception to this growing trend. Governments across the continent are hoping that the decriminalisation of the plant will…
The Federal Trade Commission (“FTC”) announced on September 10, 2019 that it sent warning letters to three unidentified companies for making claims regarding their products that contain cannabidiol (“CBD”), a compound derived from cannabis. The products, which range from “gummies,”…
In a previous post, we discussed lessons drawn from recent compliance challenges in the cannabis industry that highlight some of the consequences that arise without thorough due diligence on cannabis-related business partners (CRB). In this post, we provide a checklist…
The uncertainty of the legal regime governing cannabis makes thorough due diligence on prospective business partners essential for those who want to ensure that they are complying with state law and minimizing their risks of federal investigation. In this two-part…
Executive summary In October 2016, a regulatory framework was established for the cultivation and production of cannabis plants in Australia under the Narcotic Drugs Act 1967 (Cth) (ND Act), with the objective to enable the sustainable and safe supply of…
Backers of a cannabis banking bill are accusing one another of undermining its prospects for success by pushing for amendments that would expand its scope in different directions. The SAFE Banking Act (H.R. 1595) would allow financial firms to work…
The Netherlands’ “coffee” shops are retail stores where the Dutch government tolerates cannabis sales for personal consumption. In our prior post, we explained the basic legal framework around cannabis in the Netherlands. Here, we will discuss how the country has…
The Netherlands is famous throughout the world for its trailblazing attitude toward cannabis consumption. However, despite its reputation in popular culture as an open cannabis haven, the Netherlands still criminalizes aspects of the cannabis trade and has a strict regulatory…
The United Nations Office on Drugs and Crime (“UNODC”) recently released its 2019 World Drug Report which, among other things, claims that despite legalization in many states of the U.S., illicit markets in the U.S. have continued to thrive, while…
A draft law recently adopted by the Russian State Duma (lower house of the parliament), though not yet approved by the Federation Council (upper house of the parliament) or signed by the President would amend existing law to allow the…
Beginning in 2020, Nevada and New York City will restrict an employer’s ability to screen job applicants for marijuana use. As marijuana legalization spreads across the country, other jurisdictions will likely follow suit. Employers, especially those that recruit in Nevada…
On June 20, 2019, the House approved by a vote of 267 to 165 an “Appropriations Minibus” amendment sponsored by Rep. Earl Blumenauer (D-Oregon) that would prohibit the Department of Justice (“DOJ”) from using appropriated funds to prevent any state,…
On March 28, 2019, South Carolina enacted the Hemp Farming Act (Act), which governs the cultivation, handling, and processing of hemp in South Carolina. The Act repealed (with limited grandfathering provisions, as described below) the existing statutes that created the…
New private clinics offering medical cannabis in the UK The Medical Cannabis Clinic has revealed that it will be opening its flagship clinic in London, in Harley Street, this summer. The opening of London’s first such clinic follows the opening…
Given that many of the Democratic Party candidates have expressed support for marijuana legalization, a Democratic victory in 2020 seems likely to increase the chances for significant reform at the federal level. But what about a Republican victory? Although the…
Cannabis and its derivatives have become a major industry in the U.S. and the U.S. Food and Drug Administration (“FDA”) is coming under increasing pressure to regulate this growing market. As a first step, FDA is on the hunt for…
Primary season is in full swing, with Democratic candidates crisscrossing Iowa and shaking every hand they can find across New Hampshire. New to this election is the prominence that cannabis legalization and related criminal reform have taken in the major…
In Canada’s increasing liberalization of its cannabis related laws, the manufacture and sale of THC-containing edibles (food, beverages, extracts and topicals) will become legal on October 17, 2019, although these products will not find their way (legally) onto the market…
The trend towards the decriminalization of marijuana in the United States occurred in the context of increasing public acceptance of the drug’s use. According to the Pew Research Center, in 1990, 16 percent of Americans said marijuana should be legal.…
Around the world, countries are discussing cannabis legalization for medical, research, and/or recreational use. Brazil is no different. On June 14th, 2019, ANVISA (the Brazilian Health Regulatory Agency) published two public consultations related to cannabis, representing another step in the…
The 2018 Farm Bill removed industrial hemp and all derivatives (including hemp derived CBD) from Schedule I of the Controlled Substances Act (CSA). It also provided that intentional violations of the Farm Bill, including unlicensed production of industrial hemp, must…
Thailand’s legalization of cannabis for medical purposes continues to move forward. On 28 May 2019, the Thai Cabinet approved the draft Ministerial Regulation regarding Approval for the Manufacture, Import, Export, Sale, or Possession of Cannabis proposed by the Ministry of…
Patents play an important role in American business by encouraging innovation and investment. The Cannabis industry, which has obtained thousands of patents, is no exception. At least one owner of Cannabis patents has filed a patent infringement action to enforce…
There is an increasing global trend towards legalizing the use of cannabis, albeit to differing extents. Canada and Uruguay have fully legalized cannabis, while New Zealand has legalized cannabis for medical use only—although a referendum will be held in 2020…
On May 24, the US Attorney for the District of Colorado announced the arrest of 42 individuals as a result of a joint state-federal investigation targeting “black market” marijuana. According to an official press release, the investigation began in the…
On May 20, the Ukrainian parliament agreed to consider a bill which would legalize medical cannabis. If the bill is passed, Ukraine would become only the second post-Soviet country to significantly reform its cannabis laws. (In 2017-18, the Constitutional Court…
Two recent rulings by the Supreme Court of Justice of Mexico (“SCJN”) represent a significant milestone in legal cannabis consumption in Mexico. On October 31, 2018, the First Courtroom of the SCJN, under Minister Norma Lucía Piña Hernández, approved the…
The U.S. Food & Drug Administration (FDA) is under increasing pressure to provide regulatory guidance for using hemp-derived cannabidiol (CBD) in food. Currently, there is no clear route forward, and the FDA rulemaking process will take years. While the recent…
The legalization of medical marijuana in several jurisdictions throughout the US presents employers with the difficult task of reconciling their anti-drug policies with those state statutes authorizing marijuana use for medical purposes. Adding an additional layer of complexity to this…
Across the world, countries are revisiting their laws on the use of cannabis. For some countries, such as Canada and Uruguay, the legalization of the use of cannabis extends to non-medical purposes, including recreational use. For a number of other…
All the world is abuzz with the seemingly sweeping changes to cannabis policies in countries such as Canada, Mexico, Israel, Uraguay, Lesotho, Germany, and the United States. The cannabis industry in the U.S. alone is projected to be a multi-billion…
There has been explosive growth in the cannabis industry, and there is a dizzying array of choices for those looking to invest in this emerging industry. Who will be hot and deliver strong returns? Who will fizzle and fail in…
As the movement towards legalization gains steam, international drug control treaties are a big elephant in the room. To date, legalization advocates and politicians alike have focused on laws at the local and national level. Little attention, however, has been…
Despite state laws decriminalizing varying types of its use, cannabis remains a Schedule 1 controlled substance under the Controlled Substances Act of 1970. As a result, the sale, use, and distribution of cannabis remains a federal crime. Individuals and businesses…
Marijuana businesses in the US and US investors in foreign marijuana businesses face a potpourri of federal tax issues. For example, the federal income tax treatment of a domestic marijuana business presents challenges for those entering the field. In 1982,…
One argument in favor of legalizing recreational cannabis was that it would allow the government to collect taxes on previously black-market activity. Concurrent with Canada’s de-criminalization of recreational cannabis production, sale, and use in October 2018, the federal government imposed…
They say that politics makes for strange bedfellows, and nowhere is that more true than in the unlikely coalition of lawmakers working to reform the nation’s cannabis laws. In recent years, public support for legalizing cannabis has increased and legislators…
Throughout Europe, cannabis remains broadly illegal and, in most European countries, selling the plant is a criminal offense. However, many countries have adopted their own laws to permit cannabis purchases, sales, and use for medicinal purposes. The current state of…
By any measure, cannabis has become a major industry, and global financial markets anticipate big profits in the future. The first Canadian regulated, licensed, publicly traded cannabis producer went public on May 24, 2018, and, less than a year later,…