Merchant Processing In the Hemp/CBD Industry

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.

Ritter Spencer, PLLCMerchant Processing In the Hemp/CBD Industry
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USDA Hemp Production Plan Part III: Compliance, Violations, and Recordkeeping

By: Paul Stevenson

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. 

Ritter Spencer, PLLCUSDA Hemp Production Plan Part III: Compliance, Violations, and Recordkeeping
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HB 1325: Hemp Growth in Texas; Part I: Timing

Yesterday, the Texas House of Representatives took a historic voice vote on HB1325 (the “Bill”).  HB1325 is an act which, if passed, will permit growth of hemp as an agricultural commodity in Texas and will allow sale of hemp products in Texas. At the voice vote, Representative King offered a floor amendment making minor changes to the Bill’s text, which was passed. Today, the House entered its formal vote for passage of HB1325.

Ritter Spencer, PLLCHB 1325: Hemp Growth in Texas; Part I: Timing
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Hemp to Be Descheduled By SHS in Texas

Hemp will be descheduled in Texas on April 5, 2019 by the Texas Department of Health Services. If you have been following the blog, then you know that hemp and CBD are both considered illegal substances under current Texas statutory law. However, we  have some clarity and action from the Texas Department of State Health Services (“SHS”) in relation to its scheduling of controlled substances. The Department has descheduled hemp in Texas from its list of controlled substances. The Drugs and Medical Devices Division of SHS is responsible for the scheduling of controlled substances for SHS. SHS has the power to amend its scheduling of controlled substances anytime that a change in federal scheduling has occurred.  Tex. Health & Safety Code § 481.034 (g) (available here).

Ritter Spencer, PLLCHemp to Be Descheduled By SHS in Texas
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CBD Trademarks: Attorney Chelsie Spencer Published

Chelsie Spencer’s article regarding the United States Patent and Trademark Office’s treatment of cannabidiol (“CBD”) and hemp-derivative goods trademark applications has been published today in The Tipsheet. To view a copy of the article on CBD trademarks, continue reading below or click here: Cannabidiol: The Disjointed Stance at the USPTO Continues.

Ritter Spencer, PLLCCBD Trademarks: Attorney Chelsie Spencer Published
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Hemp Lawyer Chelsie Spencer Featured in Forbes

Attorney Chelsie Spencer was featured in Forbes this morning for her work as a hemp lawyer in the hemp, medical marijuana, and cannabidiol industries. To read the feature article, please click here to be taken to the Forbes website: Meet the Fearless Lawyer Saving the CBD Industry. 

Ritter Spencer, PLLCHemp Lawyer Chelsie Spencer Featured in Forbes
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Is CBD Legal? Part III: Texas Law

If you live in Texas, you have probably noticed some of the recent news segments and articles regarding the question of whether CBD is legal in Texas. Currently, there are several Texas counties that are actively raiding stores selling CBD goods and seizing those goods. Others are charging and prosecuting end-users of CBD products. On every news article or social media posting referencing these enforcement activities, you will quickly identify several people boldly instructing everyone that “hemp is legal in all fifty states,” that “Texas is wrong because the Farm Bill legalized hemp everywhere,” or worse, urging others to sue the state of Texas for enforcing its criminal laws. We’re here to clear the air and to answer the pressing question of whether CBD is legal in Texas. Forewarning, this is not going to be a short article; however, if you can stick it out until the end, you will have a great understanding of the law here in Texas and how that law interacts with federal laws on hemp.

Ritter Spencer, PLLCIs CBD Legal? Part III: Texas Law
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Is CBD Legal? Part II: The FDA

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, PLLCIs CBD Legal? Part II: The FDA
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Can I Grow Hemp in Texas?

Since implementation of the Agricultural Act of 2018 (“Farm Bill”) on January 1, 2019, we have had several business and individuals in Texas contacting our office regarding growing hemp in Texas. Most want to begin growing hemp on their land in Texas or want to know how to lease their land to a hemp farm in Texas. Unfortunately, hemp growth in Texas remains illegal.

Ritter Spencer, PLLCCan I Grow Hemp in Texas?
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