Yesterday, our office filed a lawsuit against the Texas Department of State Health Services (“DSHS”) on behalf of our client, Crown Distributing LLC (“Crown”), challenging the smokable hemp bans in Texas. A copy of our filed Petition can be accessed here.
In June of 2020, the Financial Crimes Enforcement Network (“FinCEN”) issued updated guidance regarding the Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) regulations for hemp-related business consumers. Financial institutions must do their due diligence for customers, but especially for hemp-related businesses, as the legalities and recommended practices are continually changing. Additionally, the National Credit Union Administration (“NCUA”) recently put forth further guidance for credit unions serving hemp-related businesses. As the hemp industry continues to progress, the banking industry is actively organizing their expectations and guidelines to keep up and simplify hemp-related interactions. Below, we summarize each of these resources to give you the straightforward essentials.
The booming cannabidiol (CBD) industry is expanding at a rapid rate and shows no signs of slowing down. The legal cannabis industry also continues to make new strides, as cannabis advocates, reform groups, lobbyists, and lawyers remain active in legislative efforts. As time progresses, more states are adapting and adjusting their respective policies. Cannabis and hemp products, including those which contain hemp-derived CBD, are becoming less taboo and these products are now more legally accessible than ever before.
The Texas Department of State Health Services (“DSHS”) adopted and published its final rules governing the Texas consumable hemp program (the “DSHS Final Rules”) to the Texas Register. The DSHS Final Rules become effective on August 2, 2020. Any potential changes to the statute governing our hemp program will not occur until the Texas Legislature reconvenes in January of 2021.
To the detriment of many in the Texas hemp industry, the DSHS Final Rules only slightly diverge from the DSHS Proposed Rules. Our prior blog series on the DSHS Proposed Rules provided an in-depth analysis of the proposed DSHS rules. This blog focuses on the changes made by DSHS in the adopted Final Rules.
Over the past decade, a growing number of states have enacted marijuana legalization laws or have moved toward discretionary or non-enforcement policies for marijuana offenses, resulting in an overall decrease in arrests related to the substance. But how do the numbers differ from area to area or from race to race? Earlier this year, the American Civil Liberties Union (the “ACLU”) detailed a research report entitled A Tale of Two Countries: Racially Targeted Arrests in the Era of Marijuana Reform to examine racial disparities at a national, state, and county level regarding marijuana enforcement. Below, we take a closer look at the report and provide a detailed overview to further explore marijuana culture in the United States.
Our hemp attorneys recently sat down to identify seven issues with the Texas Department of State Health Services (“DSHS”) Proposed Rules for Texas’ consumable hemp program. If you are a consumable hemp manufacturer, processor, distributor, or retailer, it is not too late to submit your comments directly to DSHS. Comments can be submitted to DSHS until June 7, 2020.
As the cannabis, hemp, and cannabidiol (CBD) industries continue to boom, legal cannabis businesses often find themselves in need of legal counsel. But how do you choose a hemp lawyer? The answer may depend on your specific situation. However, there are a few critical things to look for in a cannabis or hemp attorney. Below, we break down three key characteristics to help you identify an experienced hemp lawyer for all of your legal cannabis, hemp, or CBD needs.
If you joined us for Parts I through III of this Series, you will know that the Texas Department of State Health Services (“DSHS”) published its proposed rules to govern the Texas consumable hemp program (the “DSHS Proposed Rules”) in the Texas Register on May 8, 2020. The DSHS Proposed Rules are open for public comment for 31 days, meaning the public comment period closes on June 7, 2020. To provide comment on any of the draft rules, you can submit your comments directly to DSHS via email to [email protected]. When emailing comments, you will need to indicate “Comments on Proposed Rule 19R074 Hemp Program” in the subject line. Written comments may also be submitted to Rod Moline, Ph.D., R.S., Section Director, Mail Code 1987, Texas Department of State Health Services, P.O. Box 149347, Austin, Texas 78714-9347.
On June 10, 2019, Texas Governor Greg Abbott signed HB 1325, legislation pertaining to hemp growth and consumable hemp products, into law in the state of Texas. To conform with Texas Health and Safety Code, Chapter 443, as amended by HB 1325, Texas Department of State Health Services (“DSHS”) has published its proposed rules to govern the Texas consumable hemp program (the “DSHS Proposed Rules”) in the Texas Register. Under the DSHS Proposed Rules, a “consumable hemp product” is defined as
Rocky, troubling, tumultuous, uncertain, uncharted, unprecedented, and unpredictable times: due to the novel coronavirus, COVID-19, we continue to see these ominous descriptions in coronavirus coverage. Society has had to adapt as this pandemic ravages our way of life. Businesses throughout the world are dealing with the economic fallout COVID-19 has caused, and the cannabis industry is no exception. Numerous cannabis companies, already plagued by financial woes prior to this pandemic, are struggling or are unable to perform contract obligations. A prime example of this is illustrated in the ongoing lawsuit between Kentucky hemp company Third Wave Farms, LLC (“Third Wave”) and Oregon CBD processor Pure Valley Solutions, LLC (“Pure Valley”). Third Wave sued Pure Valley to get out of their contract based on obligations Pure Valley allegedly was unable to meet and based on the force majeure clause of the contract coming into effect.