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.
DSHS Proposed Rules
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
Coronavirus and Cannabis: Force Majeure Litigation
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.
Legalizing Cannabis May Generate Tax Revenue Post-Pandemic
As the devastating impacts of the novel coronavirus, COVID-19, continue to ripple throughout the United States, this country has reached a moral dilemma: to open certain facets of the economy and risk further infections and human lives, or maintain state or locally implemented lockdowns and risk further economic fallout.
How to Bring Your Business Back After the Coronavirus
One day, the global pandemic surrounding the coronavirus will end, and countries and states will reopen. The question on every business owner’s mind, however, is when this will happen. Both small businesses and massive corporations are struggling through this global humanitarian and economic crisis, and there are a lot of unknowns about the future after this pandemic runs its course. Companies struggling to survive this crisis may wonder what their future will look like and how they can recover. The team at Dallas law firm, Ritter Spencer, is here to advise and support business owners as they work to strengthen their company after the coronavirus.
A First-Hand Glimpse of the War Against the Invisible Enemy
On Tuesday, March 24, 2020, I was admitted to an (intentionally undisclosed) hospital’s Emergency Room for a ruptured appendix, which turned into a five-day, slightly horrific saga. This blog explores the up-close and personal experience I had with the current state of affairs of hospitals during this COVID-19 pandemic and emphasizes the importance of staying home. It is important to preface this blog with the fact that I am healthy now and that the lawyers at Ritter Spencer PLLC continue, from the safety of our respective homes, to advocate for our clients during these unprecedented times.