Cannabis Law Journal

Author: Mario F de la Hoz Schilling Abstract In December 2013, Uruguay became the first country in the world to fully legalize cannabis, regulating all processes from the possession, growth, and distribution of the plant. As a breakthrough in the international drug...

  Authored By Charles Gormally, Co-Chair of the Cannabis Law Practice at Brach Eichler LLC, Roseland, NJ The accelerated pace of changes to cannabis prohibition at the state and national levels makes it reasonable to conclude that, no matter where you live in the...

Written by Steven M. Schain, Esquire Steve Schain is a Senior Attorney at Hoban Law Group and admitted to practice in Pennsylvania and New Jersey. Steve represents entities, governments and individuals in choosing a structure, preparing and submitting license...

The Hemp Industries Association (HIA) and RE Botanicals, which also owns the Palmetto Harmony brand of hemp products founded by hemp pioneer Janel Ralph, filed a legal action against the Drug Enforcement Administration (DEA) on Friday regarding the Interim Final Rule...

Since Colorado and Washington became the first states to legalize recreational marijuana in 2012, research continues to identify positive benefits, further driving up already increasing sales of cannabis-related products. As investors smell the potential for a “green rush,” the number of companies seeking to enter the market will continue to grow. For those who distinguish themselves and succeed – as the saying goes – heavy lies the crown. This is especially true in California, where cannabis companies have already faced an initial wave of litigation.

On August 21, the DEA published an interim final rule (“IFR”), effective immediately, that caused alarm in the cannabis industry. The stated purpose of the rule was to correct inconsistencies between the DEA’s regulations and the statutory amendments made by the Agricultural Improvement Act of 2018 (“AIA”), but what caught people’s attention was the reiteration that extracts above 0.3% Delta-9 THC are marijuana, as well as the following short paragraph: 

As with many industries in the United States, the future of the cannabis industry may very well be determined by the November election. The next steps for the industry will not be determined by the results of the presidential race, but the Senate race.

According to data from the Colorado Department of Revenue, the state has managed to extract ~$75 million dollars in marijuana tax revenue in 2015, while Uruguay has yet to produce any financial gains from its regulation of marijuana. This thesis places a specific interest in pointing out the origins of each law and the implementation procedures entailed by them, in order to determine their overall efficiency.

Portugal has recently published Regulatory-Decree No. 2/2020, of August 4, which establishes the framework for the cultivation and industrial exploitation of hemp varieties, thus putting an end to much uncertainty that was being felt in the Country.

The DEA published an interim final rule (IFR) late last week conforming its own regulations to meet Congress’ 2018 de-criminalization of hemp. The Agriculture Improvement Act of 2018 (the “2018 Farm Bill”) removed hemp from the Controlled Substances Act (CSA), and DEA’s recent action purports to realign the agency’s own regulations with the now two-year-old federal legalization of hemp.

As longtime Los Angeles cannabis business lawyers, we recognize that there are significant legal barriers to entry in California’s legal marijuana market. For this reason, an increasing number of smaller farmers are jumping on the bandwagon of something called “contract cannabis farming.” This is a common practice in mainstream agriculture that is just starting to gain steam in the cannabis market.

 Antitrust laws are a set of state and federal laws that prohibit business practices which impede competition on the theory that aggressive competition ultimately benefits the consumer. In other words, when businesses compete to sell something, the consumer wins, or so says the theory which underpins these laws anyway.

The 2020 Cannabis Bill does little to revise its 2019 predecessor in recognising the Constitutional Court’s rulings in The Minister of Justice and Constitutional Development v Prince, National Director of Public Prosecutions v Rubin and National Director of Public Prosecutions v Acton, which legalised adults’ cultivation, possession and use of cannabis for private use and recreational purposes.

Medical marijuana will be on the ballot this November in Mississippi.  Initiative 65 proposes to amend the Mississippi Constitution to allow citizens, certified by physicians, to use medical marijuana.  For the most part, marijuana use and possession is illegal in Mississippi. Miss. Code § 41-29-139.  Marijuana use and possession is also illegal under the federal Controlled Substances Act (“CSA”). 21 U.S.C. § 812.  Despite this, Mississippi is one of many states that have legalized, or are attempting to legalize, marijuana in some form.

During these unpredictable times, there is certainty in taxes. This month the Internal Revenue Service (“IRS”) posted a dedicated marijuana-industry specific webpage providing general tax guidance and FAQs for the predominantly cash-based industry.  The guidance does not signify a change to the existing law but rather reminds marijuana business owners of their responsibility to pay federal taxes.

On 18 September 2020 the FCA published guidance on the listing of cannabis-based businesses onto public stock exchanges in the UK. We consider the key issues arising from the FCA’s statement and how this will impact on businesses looking to raise funds in the UK.

We usually write articles about concepts relating to financial management, especially with respect to tax management. Articles based on abstract financial concepts are important. As a practicing CPA, on occasion one has to “get into the dirt” and “push the digits.”

During the last ten years, my career has focused on cannabis formulation patents.  As a patent attorney with three decades of experience, I am often asked what is the best cannabis formulation you have seen?  My short answer is, “There are many, and each is best.”  It just depends on what a person is looking to achieve.