Legislative and Regulatory Updates

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The U.S. Drug Enforcement Agency’s proposal to reschedule cannabis from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA) has generated considerable buzz across business sectors, including for the banks and credit unions that see opportunity and challenges in transacting in the legal marijuana space. Legality varies by use and by state, while federal law limits how financial institutions can operate.
Continue Reading What Would Cannabis Rescheduling Mean for Lending and Payments Legality?

Despite the excitement of many over rescheduling cannabis from Schedule I to Schedule III, the move does not make cannabis “legal” unless it is produced, sold, and used within the tightly regulated parameters of the Controlled Substances Act (CSA). Many medical and adult-use cannabis stores and products that currently exist in approximately four-fifths of the United States are not in compliance with the CSA. These businesses violate federal law now, and they will still be violating federal law if and when cannabis is rescheduled; rescheduling does not make the conduct federally legal.
Continue Reading Impacts of Cannabis Rescheduling on Bankruptcy

The Department of Justice’s move to reclassify marijuana as a less dangerous drug, on which it began formal proceedings on May 16, won’t legalize state-level adult-use and medical marijuana unless it’s produced, sold, and used within the regulations of the Controlled Substances Act. Banks and other financial institutions may have questions on how these changes could affect their ability to service cannabis businesses.
Continue Reading Marijuana Reclassification Impacts Bank Servicing of Businesses

In accordance with Ohio’s new adult-use marijuana legislation, applications for initial dual-use marijuana licenses will be made available by the Division of Cannabis Control (DCC) on its website no later than this Friday, June 7 – a historic day in the state.

The first licenses to be issued will not be available to the general public but will be issued only to currently licensed medical marijuana cultivators, processors, laboratories, and dispensaries.
Continue Reading Ohio’s Dual-Use Marijuana License Applications Available June 7

Once rescheduling occurs (or possibly even before), the IRS may publish guidance on how rescheduling affects Section 280E and the deduction of marijuana-related expenses. In the meantime, cannabis businesses may consider working with their tax professionals on how best to time paying or incurring marijuana-related expenses, as well as to submit all necessary documentation to preserve their rights to obtain refunds for taxes previously paid under 280E.
Continue Reading Paid or Incurred: Marijuana Rescheduling, Taxes, and Section 280E

On May 21, 2024, the Drug Enforcement Agency (DEA) filed the Proposed Rule to move marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III of the CSA. In light of the rescheduling marijuana news, industry insiders anticipate a significant increase in cannabis-related investments and acquisition activity. While this anticipated increase in activity is exciting, it is no secret that those who have already invested capital into the cannabis industry have learned some hard lessons over the last decade.
Continue Reading Rescheduling Marijuana FAQs: Cannabis-Related Investments

On May 16, 2024, the U.S. Drug Enforcement Administration (DEA) released the proposed rule (Proposed Rule) to reschedule marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). The Office of Legal Counsel (OLC) also provided a memo to the Department of Justice (DOJ) supporting the DOJ, which oversees the DEA and grants the DEA authority to make rules under the CSA to the DEA.
Continue Reading Rescheduling Marijuana FAQs: How Do I Submit Comments on DEA’s Proposed Rules?

On April 11, 2024, Texas Lt. Governor Dan Patrick released his 2024 Interim Legislative Charges. This list indicates his goals for the upcoming legislative session, and among his priorities ahead of the 2025 Texas Legislative Session are “further regulat[ing] the sale of Delta 8 and Delta 9” and “stop[ping]…

Continue Reading Texas Politicians Take Aim at Hemp-Derived THC
Featured Podcast Episode

Securing Retail Space for Your Cannabis Business (Episode 2 of 2)

Obtaining retail space for any small business is a big move. There are many issues to consider, and working with a knowledgeable real estate lawyer helps to avoid surprises down the road. This episode discusses licenses for retail space for cannabis businesses from the landlord and tenant perspective. Hosts also review issues unique to the cannabis business when renting retail space.