After learning the licensing requirements in Part I of this Series and the complex rules and regulations on the sampling and testing of hemp in Part II, it is now time to turn our attention to the USDA plan’s matters of compliance, violations, license suspension and revocation, and mandatory recordkeeping.
As a hemp producer, if you violate the USDA plan, it is important not to panic. Instead, focus on remedying this situation by complying with the corrective action plan or other enforcement actions imposed by USDA.
Now that you have read Part I of the USDAHemp Production Plan series on the license requirements for hemp producers, it is critical to understand USDA’s methods and regulations for the sampling and testing of hemp for tetrahydrocannabinol (“THC”) concentration levels. Keep in mind: “tetrahydrocannabinol” and “delta-9 tetrahydrocannabinol” are interchangeable phrases for THC.
The hemp and cannabidiol (CBD) industry is an increasingly prosperous market. However, ambiguity surrounding product knowledge and legalities creates hindrances and obstacles for business owners and entrepreneurs alike. Before launching and investing in a start-up or existing CBD business, it is essential to fully understand the product that your CBD business will be dealing with: a specific class of compounds, known as “cannabinoids.” CBD is just one of many cannabinoids found in the hemp plant, and while many states have statutes and regulations that apply solely to CBD products, several of the other predominant cannabinoids in hemp will most likely be coming to mass market. Below, we break down the basic distinctions between the most prevalent types of cannabinoids to further assist your knowledge and understanding of hemp/CBD.
Texas hemp lawyer Chelsie Spencer spends some time on Better Living with Nick Carissimi to discuss the CBD and hemp industries, legalities, and more.
“The industry has made leaps and bounds in the past six to seven years, and as far as legality, we’re seeing a changing landscape both at the federal and state levels,” says Chelsie, as she dives into several specific examples of the challenges she has faced and those that lie ahead for hemp and CBD law. With significant experience representing hemp growers, extractors, processors and CBD white labelers across the nation, Chelsie covers a range of critical topics and details for both the average consumer and manufacturer. Listen to the full radio show here.
What is one of the biggest problems facing cannabis businesses today? What to do with the money. Currently, most banks are reluctant to service cannabis businesses as such activity could threaten the bank’s charter since marijuana remains a Schedule I substance federally. Cannabis banking is certainly a risk for a chartered bank. Cannabis businesses cannot generally use credit cards or electronic funds transfers. Cash, which is fraught with risks, is sometimes the only way to operate.
After reading Part I of the Is CBD Legal series, you may be prepared to defend the statement that hemp-derivatives sourced from hemp grown pursuant to a pilot program under the 2018 Farm Bill are perfectly legal at the federal level and that CBD is legal. “Not so fast,” says the United States Food and Drug Administration (“FDA”).
Ritter Spencer Attorney Chelsie Spencer is featured on “Cannabis and Credit Unions: The Opportunities and Risks” podcast with Robert McGarvey, who recently interviewed Ms. Spencer on issues facing credit unions seeking to service cannabis accounts. Mr. McGarvey is an expert in credit union technology and frequently covers issues affecting the credit union industry.
Entrepreneurs start new businesses knowing they are taking certain financial risks. They recognize that their businesses may fail. Entrepreneurs also know that they can likely obtain some value from the sale, reorganization or liquidation of the failed business. The Bankruptcy Code facilitates the ability of companies to recover the value from the assets and business operations for the benefit of the creditors and equity holders. In this way, the Bankruptcy Code allows entrepreneurs to engage in risk-taking activities by protecting property rights of individuals and business entities.