As the legality of cannabis products becomes more complex with differing state and federal regulations, the experts at Ritter Spencer PLLC are able to provide insight and guidance on reorganization and bankruptcy proceedings for cannabis companies. David Ritter is thrilled to share his expertise in cannabis law in an exclusive article on The Deal discussing the challenges faced by cannabis companies considering bankruptcy. This article highlights the complicated landscape of cannabis under federal and state laws, which is especially important as businesses in this industry attempt to restructure or file for bankruptcy.
Cannabidiol (CBD) is one of the most popular and marketable cannabinoids derived from the hemp plant today. The CBD industry is considered a high-risk industry, as the FDA has yet to provide a regulatory pathway for the inclusion of CBD into foods, beverages, cosmetics, and supplements, and CBD companies remain subject to a hodge-podge of varying state laws. As legal hemp and cannabis markets continue to boom, it is imperative that hemp business owners understand the importance of CBD insurance. Without the guidance of well-versed hemp lawyers and adequate CBD insurance coverage, CBD businesses may face liabilities, including consumer lawsuits. Below, we assess certain issues that present inherent risk in the CBD industry and discuss coverage issues and CBD insurance policy types.
Over the next few days, hemp attorney Chelsie Spencer will be addressing issues that she has noted with the United States Department of Agriculture’s (“USDA”) proposed program rules, the Texas Department of Agriculture’s (“TDA”) Revised Interim Program Rules, and the Texas Department of State Health Services (“DSHS”). Keep in mind that these rules are all in their proposed period and that now is the time for the public to provide input. Today, we will be highlighting issues with the USDA’s program rules.
Comments on the USDA Interim Rules may be submitted HERE.
After learning the application and hemp license holder requirements in Part I of this Series and the rules and procedures regarding the sampling and testing of hemp in Part II, it is now time to turn to the TDA plan’s provisions covering violations, license suspension and revocation, hemp transportation, and hemp seed requirements.
As a hemp license holder, if you violate the TDA plan, it is imperative to comply with any enforcement action or corrective action plan imposed by the TDA in order to avoid any further negative consequences for you and/or your hemp operations.
Now that you have read Part I of the Revised TDA Hemp Production Plan series on the application and license requirements for hemp producers, it is crucial to understand the rules and methods for the sampling and testing of hemp for tetrahydrocannabinol (“THC”) concentration levels.
To conform with the United States Department of Agriculture’s (“USDA”) hemp production plan, the Texas Department of Agriculture (“TDA”) proposed its own hemp production rules and regulations (the “TDA plan”) to the Texas Register in December of 2019. The proposed rules were then revised and released on Friday, January 10th, and they are open to public comment until Monday, February 10th. Comments are to be submitted to Philip Wright, Administrator for Agriculture and Consumer Protection, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711, or by email to [email protected]. If dissatisfied with any provision of the TDA plan, it is highly recommended to raise and send concerns to the TDA during this window for public comment.
It appears consumers are not the only group losing patience with the FDA’s progress on CBD legalization. On January 13th, 2020, a bipartisan bill to amend the Federal Food, Drug and Cosmetic Act (FD&C Act) regarding cannabidiol (CBD) and CBD containing substances was introduced in the U.S. House of Representatives. House Agriculture Committee Chairman Collin Peterson (D-MN) unveiled a simple bill drafted to intentionally include hemp-derived CBD beneath the definition of a “dietary supplement.”
As the cannabis industry continues to grow in every sector, more businesses are turning to cannabis business lawyers and CBD business lawyers for guidance and counsel to better navigate legal processes and regulations. But what exactly is a cannabis lawyer, and why are they necessary? Where did they come from, and what do they bring to the table? Below, we break down the experience and importance of cannabis law firms to offer insight into their development and the benefits they provide.
The cannabis industry is complex and competitive, but it is also extremely appealing to young entrepreneurs and investors alike as it continues to shift away from negative stigmas and into a more defined regulatory pathway. The rapid growth of the industry attracts cultivators, extractors, retailers, and more, and like many people entering this complicated space, you may feel overwhelmed with where to begin. Whether you’re considering opening a dispensary business, a CBD business, an ancillary cannabis business, or simply obtaining a hemp license,we’ve put together a guide to starting up a cannabis company to further your understanding of the necessary moving parts and details.
With the passage of the 2018 Farm Bill and the USDA’s release of the interim final rules, the hemp market continues to grow. As many processing services remain hesitant to service the growing hemp industry due to legal uncertainties, companies continue to face difficulties securing a reliable merchant processor for processing payments for the sale of hemp-derivative products, such as CBD oils and edibles. Though organizations such as Square Inc. and WooCommerce recently have begun to provide processing capabilities and support to legal hemp and CBD sellers, many remain skeptical due to confusion on the legal status of hemp and hemp-derived products.