The Growing Market of Smokable Hemp and Its Legal Obstacles

The Agricultural Improvement Act of 2018 (the “2018 Farm Bill”) established that hemp is to be treated similarly to other legal agricultural commodities and traded in standard interstate commerce as a raw material. However, the 2018 Farm Bill governs only state production programs and specifically permits states to enact more stringent regulations than those contained in the Bill. As a result, legal hemp has facilitated the emergence of a wide array of consumer products and uses. Specifically, smokable hemp has made a significant presence in the cannabis and hemp markets and continues to grow despite the increasing legality of other forms of cannabis that often include higher concentrations of tetrahydrocannabinol (“THC”). Below, we discuss the smokable hemp industry and the legal challenges it faces as it comes to fruition. 

Ritter Spencer, PLLCThe Growing Market of Smokable Hemp and Its Legal Obstacles
Read More

Cannabinol (CBN): Is It Legal?

As different cannabinoids begin to gain recognition in the hemp and marijuana industries, it is crucial to discuss the legal considerations and challenges facing manufacturers, producers, retailers, and other cannabis-based businesses. In such a new space, promising cannabinoids have the potential to make a significant impact on the market. One of the cannabinoids gaining notable traction is known as cannabinol (“CBN”). Today on the blog, we review its legal status.

Ritter Spencer, PLLCCannabinol (CBN): Is It Legal?
Read More

Financial Due Diligence for Hemp-Related Businesses: Banking Update

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. 

Ritter Spencer, PLLCFinancial Due Diligence for Hemp-Related Businesses: Banking Update
Read More

What Are the Next Big Cannabinoids?

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. 

Ritter Spencer, PLLCWhat Are the Next Big Cannabinoids?
Read More

Marijuana Enforcement: By The Numbers

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. 

Ritter Spencer, PLLCMarijuana Enforcement: By The Numbers
Read More

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.

Ritter Spencer, PLLCCoronavirus and Cannabis: Force Majeure Litigation
Read More

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. 

Ritter Spencer, PLLCLegalizing Cannabis May Generate Tax Revenue Post-Pandemic
Read More

4 Critical Considerations for Cannabis Businesses During COVID-19

The novel coronavirus, COVID-19, has impacted nearly every industry, and the cannabis industry is no exception. As the United States economy continues to experience instability and uncertainty, cannabis companies face increasingly difficult challenges, particularly since the legal cannabis industry remains in flux in most states. Some hemp and cannabis business owners have continued operations as usual, while others have closed their doors completely. It is difficult to navigate the cannabis industry during these stressful and unprecedented times, but cannabis lawyers are able to provide experienced counsel and support as needed. Below, we discuss four critical actions cannabis businesses should consider amidst the COVID-19 threat.

Ritter Spencer, PLLC4 Critical Considerations for Cannabis Businesses During COVID-19
Read More