Do I Need to File Form D in Cannabis Fundraising? What if I Missed the Filing Deadline?

I have written in the past that cannabis companies of all stripes (whether involved in marijuana or hemp) that are in fundraising mode need to know when they are offering securities for many different compliance-related reasons, the biggest of which is to avoid jail time for committing securities fraud.

According to the U.S. Securities Act of 1933:

The term “security” means any note, stock, …security future, security-based swap, bond, …evidence of indebtedness, … participation in any profit-sharing agreement, … transferable share, investment contract, … fractional undivided interest in oil, gas, or other mineral rights … option, or privilege on any security, … or group or index of securities … or any certificate of interest or participation in … or warrant or right to subscribe to or purchase, any of the foregoing.

In layperson’s terms, a “security” is any type of financial interest in any business venture for any amount over any period of time, even if that business is not a formally registered company. The security could be an offer or sale of a straight equity ownership percentage. It could be a simple loan or debt. It could be an option, warrant for future ownership, or a profit sharing arrangement.

Sometimes companies that have issued debt or equity securities contact me, and the filing deadline to let securities regulators know has passed. Generally, these notice filing deadlines are 15-30 days after the date of the company’s first sale of securities. It is easy for executives to lose sight of these fundraising deadlines when they are busy running the business and dealing with investors and questions from their financial advisors and securities lawyers.

The Securities Exchange Commission (SEC) and every U.S. state’s securities commission or securities division care about protecting investors in both private and public companies, and they take their missions very seriously. These notice filings are one of the key components to these securities regulators fulfilling their missions.

Generally companies that hire me after missing their filing deadline are in some kind of mild or major panic, especially after I explain to them that I need to carefully review all of their investment offering documents so I can determine how many securities regulators they need to notify. This is a fact-specific analysis where I need to generally look at the location of each investor (international, domestic (state by state)), the amount invested by each investor, the method the company used to solicit investment, the total amount of the offering, and whether the investor self-certified as an accredited investor.

Most companies engaged in securities offerings need to notify regulators by filing a notice form. State regulators have their own sets of forms, and the SEC has another form, generally referred to as Form D. If a company is engaged in a limited offering of only a handful of investors in one or two states, then it may make sense to only notify state regulators. If the offering involves numerous investors spread across several states, then generally filing Form D will be the most efficient way to complete the offering. Some state filings require the payment of a fee up to several hundred dollars, while Form D does not require any payment.

In some instances, the offering may qualify for state exemptions so that the offering company does not even need to provide a notice filing to state securities regulators. This happens infrequently, but it can save a company thousands of dollars in legal and filing fees, even compared to a streamlined Regulation D (Reg D) offering involving a Form D filing.

But what if you miss a filing deadline? It is always better to file late with securities regulators than to never file at all, even if you miss a filing deadline by many months. In reality, the number of companies who miss filing deadlines is more than just a few, and we have no reliable way to track this data. This is because there are so many offerings going on that unless something goes wrong with the offering and an investor complains to securities regulators, whether the securities regulators are aware of the offering has no bearing on the ongoing company-investor relationship.

So don’t miss a filing deadline if you can help it. If you’ve already missed the deadline, then submit your offering notice as soon as you realize your mistake. If you’re inclined to let it slide, then keep in mind that if you have investor troubles down the road, anything out of place in your securities offering materials (including the presence or lack of regulatory filings) will weigh against you in the balance.

For more reading, check out:

• Cannabis Fundraising: Seven Key Takeaways from the SEC’s New Accredited Investor Rules
• Cannabis Securities Litigation 101: Who Can Be Liable for Oregon Securities Fraud?
• Raising Cannabis Funds and Staying Out of Jail: Asking Yourself the Right Questions
• Did You Just Issue Cannabis Securities? Top 10 “Go to Jail” Scenarios
• Cannabis Startups 101: Securities Compliance
• Oregon Cannabis Securities: Raising Money Right
• Cannabis Crowdfunding is Here
• Utah Cannabis Investment Fraud: Know Your Securities Laws
• Cannabis Securities Litigation: Don’t Expect to Put One Past the SEC
• Ask a Pot Lawyer: Can I Invest in Weed?

The post Do I Need to File Form D in Cannabis Fundraising? What if I Missed the Filing Deadline? appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3jLUKwI
via IFTTT

Congress Takes Issue with the (Awful) DEA Hemp Rule

The hemp industry is not the only one that’s pushing back against the Drug Enforcement Administration (DEA)’s hemp Interim Final Rule (the “Rule”). If you read this blog, you’ll recall the hemp industry sued the DEA following the release of its Rule in August 2020. The Rule threatens the hemp industry because it wrongfully criminalizes the extraction process of hemp into derivatives, extracts and cannabinoids, which is a critical component of all hemp-derived products.

Last week, nine members of Congress issued a letter to the DEA’s Acting Administrator, Timothy Shea, to express their concerns regarding the Rule.

In their letter, the lawmakers explained having received countless calls from hemp constituents who are extremely fearful that conducting lawful activities under the Agriculture Improvement Act of 2018 (‘the “2018 Farm Bill”) will result in criminal liability under the Rule.

The 2018 Farm Bill legalized hemp along with its derivatives, extracts and cannabinoids. In order to extract these lawful plant materials from hemp, the hemp plant must go through an extraction process. Accordingly, it logically follows that the 2018 Farm Bill also legalized the processing of hemp into such derivatives, extracts and cannabinoids.

Despite this logical inference, the lawmakers explained, the DEA failed to recognize this nuance, along with the clear legislative intent of the 2018 Farm Bill, when it drafted the Rule that states:

“any such material that contains greater than 0.3% of Δ9-THC on a dry weight basis remains controlled in schedule I.”

Moreover, the nine lawmakers argue that the Rule fails to acknowledge the well-known fact that the process by which hemp is extracted into derivatives, extracts and cannabinoids can, and almost always, results in increased delta-9 THC levels, even if the finished hemp product meets the lawful THC threshold imposed under federal law. This, the letter provides, means that, pursuant to the Rule, extracting hemp may cause hemp processors to temporarily possess a controlled substance, which would clearly violate the legislative intent of the 2018 Farm Bill.

In light of these issues, the lawmakers asked that the Rule be revised to (1) be consistent with the letter and intent of the 2018 Farm Bill, (2) eliminate all ambiguities regarding the legality of intermediary hemp, but also (3) protect a nascent, flourishing economy. Indeed, the letter explains that:

“[t]he hemp industry in the United States is estimated to be worth approximately $10.3 billion by 2024, increasing from $1.2 billion in 2019. This industry is capable of incredible growth and is a source of immense livelihood for Americans, all of which is at risk under the [Rule]’s interpretation.”

The letter was submitted on October 20, which marked the last day public comments concerning the Rule could be accepted. It now remains to be seen whether the DEA will take into consideration these recommendations as it proceeds with the formal adoption of the Rule. However, given the recent lawsuit brought forth against the DEA and its Rule, the agency may not get to proceed with the rule making process. Indeed, if the United States District Court for the District of Columbia were to grant the hemp industry an injunctive relief, the DEA would be prevented from enforcing and revising the Rule until the court hears the case, which may not be for another year.

The post Congress Takes Issue with the (Awful) DEA Hemp Rule appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3ej6qWL
via IFTTT

New Zealand Cannabis Legalization Initiative Fails At Ballot Box

New Zealand didn't legalize cannabis. They did advance a law regarding euthanasia, however.

from News – High Times https://ift.tt/3kVV8dm
via IFTTT

The Roll-up #168: Is Shawn Kemp’s Cannabis a Black-owned business?

Former NBA all-star Shawn Kemp is opening Seattle's first Black-owned cannabis store. But is it really?

The post The Roll-up #168: Is Shawn Kemp’s Cannabis a Black-owned business? appeared first on Leafly.

from Leafly https://ift.tt/3mviI1c
via IFTTT

Study Shows Cannabis is Becoming a Less Divisive Issue in the U.S.

Are more voters across the board in favor of cannabis than in previous years?

from News – High Times https://ift.tt/3mCOjxR
via IFTTT

Find balance with full-spectrum hemp from this artisan farm in Maryland

With small batch production, and in consultation with medical professionals Hemp Hills Farm, LLC creates CBD products like no other CBD farmers in Maryland.

The post Find balance with full-spectrum hemp from this artisan farm in Maryland appeared first on Leafly.

from Leafly https://ift.tt/2HO8dHi
via IFTTT

Cannabis Legalization: What’s At Stake on Election Day

Next week’s elections have the potential to make some serious changes and reforms for cannabis and even psychedelics. In this post, I’ll examine some of the bigger-ticket items to watch.

The Presidency: Probably the most impactful thing for the cannabis industry is the presidency. I wrote a post last week about how federal law is unlikely to change with the current administration. We did, after all, give Trump a D+ on his record for cannabis. While Biden himself only scored slightly better by our rankings, he has since added Kamala Harris to his ticket, and Harris has a better track record and Canna Law Blog ranking on cannabis. On the balance, we think a Harris/Biden ticket will go a lot further with respect to cannabis legalization than a Trump/Pence reboot.

Congressional Races: There are a number of hotly contested races across the United States and Democrats seem to have serious chances in many conservative states. Just a few days ago, Chuck Schumer noted that if Democrats retake the Senate, cannabis legalization will be a priority. We think that blue wave in Congress will move the ball towards federal legalization significantly further.

Arizona: Medical cannabis is already legal in Arizona. Next week voters will decide whether to legalize cannabis for recreational uses. See our recent post on Arizona’s Prop. 207 here.

Mississippi: Cannabis is currently not legal in Mississippi, and voters will decide next week whether to legalize it for medical purposes only. See our post on the Mississippi initiatives here.

Montana: Medical cannabis is already legal in Montana. Voters will decide next week whether to, among other things, legalize cannabis for recreational use. You can read about the Montana initiatives here.

New Jersey: Medical cannabis is already legal in New Jersey, and next week voters will decide whether to legalize cannabis for recreational uses. See our recent post on the New Jersey cannabis question here.

Oregon: Oregon is considering one measure that would fully legalize psilocybin for therapeutic uses only. We’ve written a lot about this measure (Measure 109) and you can check out our posts here:

• Oregon and Psilocybin: Does the Approved Ballot Measure Language Stand a Chance
• Oregon Psychedelics: Petition to Legalize Psilocybin for Therapy Moves Forward
• Oregon Psychedelics: Psilocybin on the Ballot this November!
• Oregon 2020 Election: Vote Yes! on Measure 109
• Oregon Psilocybin: Does Measure 109 Go Far Enough? Does it Go Too Far?

Oregon is also considering a law (Measure 110) that would decriminalize (not legalize or regulate) minor possession and use of all drugs.

South Dakota: Cannabis is currently not legal in South Dakota. Separate measures would, if passed, legalize recreational and medical cannabis. We will publish a post on South Dakota’s measures this Sunday, November 1, 2020, so please stay tuned.

Washington, D.C.: D.C. voters will have a chance to weigh in on whether certain psychedelic plant substances should be decriminalized (not legalized or regulated) next week. If passed, D.C. will be among many other U.S. cities (like Oakland, Santa Cruz, Denver, and Ann Arbor) that have already decriminalized psychedelics in one form or another. You can read about the D.C. efforts on our post here.

Please stay tuned to the Canna Law Blog, as we’ll be updating this post shortly after the election.

The post Cannabis Legalization: What’s At Stake on Election Day appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/34Jbvoh
via IFTTT

Kiva Confections Launches Lost Farm Line Of Edibles

Popular edibles brand Kiva Confections has a new line that's sure to make a splash.

from News – High Times https://ift.tt/3kHcZox
via IFTTT

Election Day stress? Chill with these 5 dank strains

The dumpster fire that is 2020 is about to get even crazier. Check out these weed strains to get through the election, you'll need 'em.

The post Election Day stress? Chill with these 5 dank strains appeared first on Leafly.

from Leafly https://ift.tt/3oG3pok
via IFTTT

Study of Canadian Workers Shows No Link Between Cannabis Use And Workplace Injury

A recent study finds no association between workplace injury and cannabis usage.

from News – High Times https://ift.tt/3mtfCuu
via IFTTT

NORML 2020 Conference Honors The Late Dr. Lester Grinspoon

Dr. Lester Grinspoon posthumously received the Micheal J. Kennedy Social Justice Award this month.

from News – High Times https://ift.tt/35NYlW3
via IFTTT

Gun and Cannabis Stocks on the Rise Prior to Election

Experts in both the cannabis industry and firearms industry have seen spikes in the numbers.

from News – High Times https://ift.tt/35Lcsvj
via IFTTT

Congress Takes Issue with the (Awful) DEA Hemp Rule

The hemp industry is not the only one that’s pushing back against the Drug Enforcement Administration (DEA)’s hemp Interim Final Rule (the “Rule”). If you read this blog, you’ll recall the hemp industry sued the DEA following the release of its Rule in August 2020. The Rule threatens the hemp industry because it wrongfully criminalizes the extraction process of hemp into derivatives, extracts and cannabinoids, which is a critical component of all hemp-derived products.

Last week, nine members of Congress issued a letter to the DEA’s Acting Administrator, Timothy Shea, to express their concerns regarding the Rule.

In their letter, the lawmakers explained having received countless calls from hemp constituents who are extremely fearful that conducting lawful activities under the Agriculture Improvement Act of 2018 (‘the “2018 Farm Bill”) will result in criminal liability under the Rule.

The 2018 Farm Bill legalized hemp along with its derivatives, extracts and cannabinoids. In order to extract these lawful plant materials from hemp, the hemp plant must go through an extraction process. Accordingly, it logically follows that the 2018 Farm Bill also legalized the processing of hemp into such derivatives, extracts and cannabinoids.

Despite this logical inference, the lawmakers explained, the DEA failed to recognize this nuance, along with the clear legislative intent of the 2018 Farm Bill, when it drafted the Rule that states:

“any such material that contains greater than 0.3% of Δ9-THC on a dry weight basis remains controlled in schedule I.”

Moreover, the nine lawmakers argue that the Rule fails to acknowledge the well-known fact that the process by which hemp is extracted into derivatives, extracts and cannabinoids can, and almost always, results in increased delta-9 THC levels, even if the finished hemp product meets the lawful THC threshold imposed under federal law. This, the letter provides, means that, pursuant to the Rule, extracting hemp may cause hemp processors to temporarily possess a controlled substance, which would clearly violate the legislative intent of the 2018 Farm Bill.

In light of these issues, the lawmakers asked that the Rule be revised to (1) be consistent with the letter and intent of the 2018 Farm Bill, (2) eliminate all ambiguities regarding the legality of intermediary hemp, but also (3) protect a nascent, flourishing economy. Indeed, the letter explains that:

“[t]he hemp industry in the United States is estimated to be worth approximately $10.3 billion by 2024, increasing from $1.2 billion in 2019. This industry is capable of incredible growth and is a source of immense livelihood for Americans, all of which is at risk under the [Rule]’s interpretation.”

The letter was submitted on October 20, which marked the last day public comments concerning the Rule could be accepted. It now remains to be seen whether the DEA will take into consideration these recommendations as it proceeds with the formal adoption of the Rule. However, given the recent lawsuit brought forth against the DEA and its Rule, the agency may not get to proceed with the rule making process. Indeed, if the United States District Court for the District of Columbia were to grant the hemp industry an injunctive relief, the DEA would be prevented from enforcing and revising the Rule until the court hears the case, which may not be for another year.

The post Congress Takes Issue with the (Awful) DEA Hemp Rule appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/2J9DAwq
via IFTTT

How does cannabis affect hormones that control appetite, stress, and fertility?

The endocrine system regulates hormones and some metabolic functions in the body, as does the endocannabinoid system. Read more on how cannabis can affect hormones.

The post How does cannabis affect hormones that control appetite, stress, and fertility? appeared first on Leafly.

from Leafly https://ift.tt/34BouIh
via IFTTT

Dulze Launches Line Of Cannabis Gummies Featuring Mexican Flavors

Dulze combines traditional Mexican flavors with the healing properties of cannabis.

from News – High Times https://ift.tt/3e482DL
via IFTTT

Virginia NORML Chapter Urges State Lawmakers To Prioritize Cannabis Legalization

Following a public safety emergency, NORML's Virginia chapter is pushing for legal cannabis.

from News – High Times https://ift.tt/3mxnZp6
via IFTTT

NBA legend Shawn Kemp to open Seattle’s first Black-owned cannabis store

The Reign Man hopes his store "inspires others to get involved with the legal cannabis industry, especially people of color.”

The post NBA legend Shawn Kemp to open Seattle’s first Black-owned cannabis store appeared first on Leafly.

from Leafly https://ift.tt/3jFX7kG
via IFTTT

These CBD gummies have a little bit of everything—including THC

And they ship nationwide, even if you live in a dry state.

The post These CBD gummies have a little bit of everything—including THC appeared first on Leafly.

from Leafly https://ift.tt/31QQrKm
via IFTTT

Court Allows IRS to Investigate Colorado Cannabis Companies

Despite a request for immunity, the IRS is continuing an investigation against a few Colorado-based cannabis companies.

from News – High Times https://ift.tt/37P4Qus
via IFTTT

Cannabis Litigation: What is My Marijuana Dispensary Worth?

As legal marijuana markets have matured in Washington, Oregon, California and elsewhere, so too have the kinds of legal disputes involving marijuana businesses. Increasingly common are legal disputes between owners of a marijuana business that involve allegations of financial malfeasance, breach of fiduciary duty, freeze-outs, fraud, and other claims common to business litigation outside of the marijuana context. In litigation between members of a limited liability company, expulsion of the member alleged of wrongdoing is a common remedy.

A common question in such cases is how much the member’s interest in the company is worth? In other scenarios, the litigation realities may lead the members to decide that selling the company is the best move, and so a critical question is what is the business worth?

Back in 2014, we wrote about the speculative nature of valuing marijuana businesses because of the lack of market data, Marijuana Business Valuations: Still Mostly an Art, not a Science. A couple of years later, Vince Sliwoski wrote about valuation in the context of purchasing or investing in a marijuana business, Your Marijuana Business: What’s it Worth? At that time, we were aware of just one accounting firm (actually just one accountant) who claimed to have interest in marijuana businesses. In a follow-up post in 2017, Your Marijuana Business: What’s It Worth? (Part 2), Vince noted that things were changing fast and noted that Cogence Group PC and other reputable CPAs were beginning to provide valuation and other accounting services to marijuana businesses.

Today there is no shortage of firms providing valuation services to cannabis businesses. The fundamentals of valuation remain the same — our prior articles explain the common methods of valuing businesses and the pros/cons of each in the context of marijuana businesses. So I won’t repeat that overview here.

One problem that remains for strict market-based approach to valuation, i.e. looking at other actual sales of businesses, is that data can be hard to come by. Many transactions remain private and unreported on any public database. That said, there is much more information available than a few years ago including from sites like CannaMLS, 420Property, and consultants who specialize in assisting sellers and purchasers of marijuana businesses.

Valuation in the litigation context is not dramatically different than the non-litigation context. As with nearly every aspect of a limited liability company, the operating agreement is the starting point for how to value the business or a member’s interest therein. A good operating agreement will include specific provisions setting forth an agreed-upon method of valuation for the dissociation of a member – whether forced or voluntary and whether  for dissolution or sale of the business. The members may agree to use a specific appraiser, or agree to methodology for selecting an appraiser or competing appraisers, as well as (critically) a provision in which the members agree to be bound by the valuation of the appraiser.

In the absence of specific provisions or where the provisions are unclear, valuation becomes a battle of experts unless the litigants can agree to jointly retain a valuation expert and agree to be bound by the expert’s determination. Experts are expensive. Along with paying the expert to analyze the company financials and prepare a report, (easily tens of thousands of dollars), litigation costs include paying your attorney and your expert to prepare for a deposition, preparing for direct examination, and preparing for cross-examination. And of course, your attorney will want to depose the other side’s expert and prepare for cross-examination. (One caveat to this is that in Oregon state court there is no expert discovery).

Although experts typically are not retained until later in litigation during the discovery process as the case gets closer to trial, it often makes sense to retain an expert early in the process. The value proposition for doing so is that an early “rough” analysis by your expert can inform whether litigation through trial makes financial sense and it can inform settlement discussions. You can also “tie up” an expert if you have a clear preference, and don’t want that person to be hired by the other side.

Ultimately, it makes little sense to spend hundreds of thousands of dollars on attorney and expert fees if the business or member’s interest is not worth significantly more than the cost of litigation. A litigant armed with a reasonable estimate of value can negotiate potential resolutions with a more clear-eyed view of what is reasonable in light of the costs of litigation.

The post Cannabis Litigation: What is My Marijuana Dispensary Worth? appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3jxO7OJ
via IFTTT

Why former US Senate leader Tom Daschle is all in for legalization in South Dakota

The South Dakota statesman offers four commonsense reasons for legalization.

The post Why former US Senate leader Tom Daschle is all in for legalization in South Dakota appeared first on Leafly.

from Leafly https://ift.tt/37M0xA9
via IFTTT

Nearly 75,000 Pot Plants Eradicated In Southern California

The total number of cannabis plants were racked up over the last six months.

from News – High Times https://ift.tt/3jxIHDm
via IFTTT

Study Finds 15% Of Seniors Use Cannabis To Treat Symptoms Of Aging

Another recent study shows rates of older people using cannabis.

from News – High Times https://ift.tt/2HHjOHS
via IFTTT

Polls show marijuana legalization leading as Election Day nears

Arizona, New Jersey, and Montana look strong. But polls mean nothing if people don't actually vote.

The post Polls show marijuana legalization leading as Election Day nears appeared first on Leafly.

from Leafly https://ift.tt/34yBY7J
via IFTTT

The ‘Triple Bake’ is the 420 fall tradition you need in your life

Homegrown bud + baked goods + the 'Great British Bake Off' = the perfect 3-ingredient recipe for seasonal stoner indulgence.

The post The ‘Triple Bake’ is the 420 fall tradition you need in your life appeared first on Leafly.

from Leafly https://ift.tt/3jsBLqY
via IFTTT

South Dakota Medical Marijuana Initiative Likely to Pass According to Poll

Medical marijuana seems to have a fighting chance in South Dakota.

from News – High Times https://ift.tt/31MX7JG
via IFTTT

Oregon Psilocybin: Does Measure 109 Go Far Enough? Does it Go Too Far?

We are on record here at the law firm in support of Measure 109. We have friends and colleagues who have worked on the campaign and clients who have written checks, large and small. Legal psilocybin in Oregon? We like the sound of that.

But do we unconditionally and unapologetically love the ballot measure? No, it’s not perfect. As a refresher, Measure 109 would legalize the manufacture, delivery and administration of psilocybin, but only at supervised, licensed facilities. If you hope to grow psilocybin mushrooms at home, that will not be allowed. Nor will bringing those mushrooms on a camping trip with your friends. Heck, even picking psilocybin mushrooms in the forest won’t be allowed.

Why is Measure 109 restrictive? Ultimately, it probably comes down to the reason any ballot measure is drawn up the way it is—so that it will pass. Many people, including psychiatrists, are not prepared to vote for both the decriminalization AND deregulation of psychedelic drugs. Folks may not be educated about what these drugs are, how they work and what they can do. People may have ideas about psilocybin, including that it is mind-altering and powerful and potentially even dangerous. They aren’t wrong.

Here’s a diagram I like to trot out from time to time, showing a continuum of choices for jurisdictions looking to change the status quo on controlled substances. Some of these options sell more easily than others.

The sponsors of Measure 109 landed close to the top right, at “very few monitored for-profit licensees.” We’ve previously canvassed Measure 109 in detail, but I’d like to highlight that an individual can hold a financial interest in only one psilocybin “product manufacturer” and no more than five “service centers.” The idea here is to stay away from “Big Psilocybin” and if this thing works, it’s going to proceed much differently than the concurrent pharmaceutical track of Food and Drug Administration (FDA) approved psilocybin drugs (which are imminent).

From a user perspective, Oregon’s psilocybin clinics will look and feel like ketamine clinics. It’s going to take a couple of years for the first of these to roll out, and we should have even more scientific research and public acceptance for the medical applications of psilocybin by then. Still, even if the FDA approves a psilocybin drug and the Drug Enforcement Administration (DEA) reschedules the compound, the legal paradigm will be similar to what we see today: psilocybin will be classified as a controlled substance, unlawful prescribe without a DEA license. The Oregon program will not square with federal laws.

If the sponsors of Measure 109 had been able to pull off something less cumbersome, we’d like to think they would have. We should not need an “Oregon Psilocybin Advisory Board” and a “Two Year Program Development Period” and “Licensed Facilitators” and a “Product Tracking System” and rulemaking and licensing and blah blah blah. Also, it should not be illegal to gather magic mushrooms in the woods or grow them in your closet! Adults should be able to possess small amounts of drugs and use them, recreationally or as medicine. For that reason, it would be great to see Measure 110 pass (“Drug Decriminalization and Addiction Treatment Initiative”), regardless of the fate of Measure 109.

So, did Measure 109 go far enough? Not for everybody. But then again, it goes further than anything that has come before it, anywhere in the United States.

Did Measure 110 go too far? Hopefully not. Fingers crossed for a good result next Tuesday, November 3.

The post Oregon Psilocybin: Does Measure 109 Go Far Enough? Does it Go Too Far? appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/37JvNzE
via IFTTT

Study suggests psilocybin can positively change emotions and brain function long-term

Ready to change your mind? It’s easy to get stuck in how we view and move through the world, but a new study shows that psilocybin may be able to help.

The post Study suggests psilocybin can positively change emotions and brain function long-term appeared first on Leafly.

from Leafly https://ift.tt/3mrARwN
via IFTTT

Exclusive: Colorado’s Governor Jared Polis Talks Legal Cannabis

Governor Jared Polis connected with High Times to discuss the state of legal cannabis in Colorado.

from News – High Times https://ift.tt/3kKn5oN
via IFTTT

Indiana Attorney General Candidate Calls For Cannabis Legalization

Indiana's Democratic Party's choice for Attorney General is calling for state-wide cannabis legalization.

from News – High Times https://ift.tt/3kxywzZ
via IFTTT

Detroit Officials Announce Proposal To Allow Adult-Use Cannabis Sales In City

Michigan legalized adult-use cannabis two years ago, but certain cities, like Detroit, opted out.

from News – High Times https://ift.tt/31GchjO
via IFTTT

Cannabis Company Basics: Compliance is Key

A few weeks ago, we wrote about the lawsuit filed by the California Bureau of Cannabis Control (BCC) against Vertical Bliss, Inc., a company which the BCC alleged had manufactured cannabis products and sold them unlawfully in the illicit market. The BCC is seeking mind-blowingly high civil penalties against Vertical Bliss based on these allegations. If it is successful and recovers only part of what it is seeking, the damages could still be massive.

The Vertical Bliss case is one of the first massive enforcement actions since the implementation of licensing under the Medical and Adult-Use Cannabis Regulation and Safety Act–late last year, the California Department of Food and Agriculture sued another operator, but not much public enforcement has happened since then.

That said, we fully expect that over the next year, the agencies will ramp up enforcement. And we also expect that they will come after companies who are alleged to have engaged in much more mundane rule violations. From the agencies’ perspective, they will have to eventually start seriously enforcing their rules, otherwise companies will just ignore them.

The inevitability of enforcement actions, civil penalties, loss of licensure, and even potentially criminal liability (depending on the nature of the violation) mean that cannabis businesses must get in the mindset of compliance. Failure to do so can, and eventually will, lead to devastating consequences.

It is not simply enough for companies to take the position that not openly violating law is sufficient to avoid enforcement actions. The BCC’s Disciplinary Guidelines, for example, make very clear that the agency is empowered to take drastic actions against licensees who violate even minor and seemingly inconsequential rules. The point is that compliance means more than just not engaging in criminal or openly unlawful conduct.

Companies with good compliance programs need to consider every single rule applicable to them (and there are a lot of rules applicable to cannabis businesses) and figure out ways not to run afoul of those rules. These companies will adopt proactive mindsets when it comes to compliance instead of acting first and changing things up if the agencies come knocking–because they eventually will.

One thing we hear all the time is how expensive compliance can be. For smaller cannabis businesses, hiring a compliance team or devoting endless financial resources to compliance may not be an option. That said, the cannabis rules apply equally to big and small businesses without exception, meaning all businesses must find ways to learn and follow the rules.

Another important point on compliance with state law is that it reduces (though nothing can completely eliminate) the risk of federal enforcement. As we wrote a few months ago, the BCC recently was forced to turn over records to the DEA of cannabis businesses who allegedly were unlawfully importing cannabis from Mexico. Businesses that engage in illicit conduct are therefore at risk of double penalties from state and federal governments.

The point is that compliance is key and non-compliant businesses may eventually learn that the hard way. We fully expect more and more enforcement actions to be filed in the coming months and years, so stay tuned for more details.

The post Cannabis Company Basics: Compliance is Key appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3mlg5Pm
via IFTTT

Dear fellow stoner: You’re right on cannabis but wrong on QAnon

Social media algorithms are targeting stoners as likely QAnon conspiracy believers. Don't fall for it.

The post Dear fellow stoner: You’re right on cannabis but wrong on QAnon appeared first on Leafly.

from Leafly https://ift.tt/3e8GRYB
via IFTTT

New Jersey Cannabis Legalization Guide (Public Question 1)

 

This November cannabis legalization initiatives will appear on the ballots of five states: Arizona, Mississippi, Montana, New Jersey, and South Dakota. Every Sunday through November 1, Canna Law Blog will publish a post centered on one of these state ballot initiatives and the current laws surrounding cannabis in that state. So far, we have discussed propositions on the ballot in Arizona, Mississippi and Montana. Today, in the fourth post, we discuss the measure on the New Jersey ballot: New Jersey Public Question 1, the Marijuana Legalization Amendment (2020).

What are the current laws surrounding cannabis in New Jersey?

In New Jersey, recreational cannabis is currently illegal. However, medical cannabis was legalized in 2010 when then-Governor Jon Corzine signed the Compassionate Use Medical Marijuana Act (CAMMA) into law. CAMMA, which started as a senate bill, allows patients with qualifying conditions and their caretakers to purchase cannabis from state-licensed alternative treatment centers. However, it does not allow patients to grow their own cannabis. Under CAMMA, only six alternative treatment centers can be licensed to sell cannabis at any one time and these centers must be non-profit.

Generally, New Jersey’s medical cannabis legislation is strict in comparison to legislation in other states. Since 2010, however, the laws have loosened surrounding which patients qualify for medical cannabis use. In 2013, then-Governor Chris Christie signed a bill into law, known as “Pot for Tots”, which allows children with certain conditions to use medical cannabis. In 2016, Christie also signed a bill to add PTSD to the list of qualifying conditions. Though he signed both of these bills, Christie was against the medical cannabis program and most cannabis-related reforms.

What is the ballot measure for this coming election?

New Jersey Public Question 1, also known as the Marijuana Legalization Amendment, asks New Jersey voters to decide whether to amend the state constitution to legalize cannabis for recreational use by adults 21 and older, as well as for cultivation and retail sale. The measure is a legislatively referred constitutional amendment; the New Jersey State legislature passed a resolution in 2019 to put the measure on the 2020 ballot. If passed, this measure would allow the existing Cannabis Regulatory Commission (CRC) to regulate the recreational cannabis industry. The CRC was originally established to oversee the New Jersey medical cannabis program. If the new measure passes, the CRC would be tasked with creating rules surrounding possession limits and how individuals could grow cannabis at home.

The amendment would apply the state sales tax to the sale of cannabis but would prohibit additional taxation by the state government. Local governments would be allowed to tax cannabis sales up to an additional 2 percent.

Prospects of the passage of Public Question 1, the Marijuana Legalization Amendment

Most polls show that the majority of New Jersians support the legalization of recreational cannabis. An October poll of “likely voters” found that 61 percent of respondents would support a constitutional amendment to legalize cannabis. This month, another poll of registered voters found that number to be 66 percent. Therefore, passage of the New Jersey Marijuana Legalization Amendment seems likely. 

For previous coverage in this series, check out the following:

• Arizona Cannabis Legalization Guide (Prop 207)
• Mississippi Cannabis Legalization Guide (Initiative 65 and Alternative 65A)
• Montana Cannabis Legalization Guide (Initiative 190 and CI-118)

The post New Jersey Cannabis Legalization Guide (Public Question 1) appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3dZkJQi
via IFTTT

¿Emprendimientos de Cáñamo Industrial en México? ¡Comienca Ya!

Como hemos venido informándoles en este blog, la legalización de la cannabis está en proceso aquí en México. Una iniciativa de “Ley para la Regulación del Cannabis” (en adelante, “Ley de la Cannabis”) se encuentra ya en discusión por el Congreso de la Unión al tiempo de escribir estas líneas, misma que será acompañada de un muy esperado parteaguas en la naciente industria cannábica en México: el “Reglamento  en Materia de Control Sanitario para la Producción, Investigación y Uso Medicinal de la Cannabis y sus Derivados Farmacológicos” (en adelante, “Reglamento Médico”). Se habla en el medio, no obstante, de que ninguna de las dos legislaciones reglamentará el cáñamo industrial.

Lo anterior no es de sorprenderse. En los últimos años, gran parte del debate acerca de la legalización de la cannabis en México se ha concentrado en los usos recreativo y médico-terapéuticos. No hemos visto la misma discusión acerca del cáñamo que vemos en otros países de América Latina. Esto, para nosotros, exhibe gran falta de visión a largo plazo, considerando que se espera que el mercado global de cáñamo industrial crezca de $4.6 billones de dólares estadounidenses en 2019 a $26-mil-millones-de-dolares-para-2025. Los productos de cáñamo revisten múltiples aplicaciones y bien podrían significar la firma más segura para que la cannabis contribuya a la reactivación de la economía mexicana en la nueva realidad post-COVID.

El cáñamo industrial fue prohibido en México debido a influencia de los Estados Unidos ya desde 1940. En ese entonces, México había promulgado un “Reglamento Federal de Toxicomanías”, que legalizó el cultivo de la cannabis y el suministro de medicamentos a base de cannabis bajo supervisión del Estado, tratando a los consumidores como pacientes y no delincuentes y determinando impuestos a los cultivadores. Dado que el cultivo de la planta como tal estaba contemplado en dicho Reglamento, uno podía, por extensión, cultivar cáñamo. Sin embargo, bajo presión estadounidense, el Reglamento fue abrogado poco después, prohibiéndose toda actividad con la cannabis como planta, y matando, de pasada, al naciente cáñamo industrial en México.

La cannabis y toda actividad relacionada con la misma, en lo que toca al cáñamo industrial, fueron completamente ilegales hasta 2017, cuando se reformó la Ley General de Salud para estipular que los productos que contuvieran derivados de la cannabis en concentraciones del 1% o menores de THC y que tuvieran amplios usos industriales, podrían ser comercializados, exportados e importados “cumpliendo los requisitos establecidos en la regulación sanitaria”. Ahora, de resultar cierto que el nuevo Reglamento Médico, mencionado líneas arriba, no reglamente el cáñamo industrial, tendremos una situación en la que la “regulación sanitaria” a que hace referencia la Ley General de Salud simplemente no existirá.

¿Qué significa lo anterior para su negocio? Que el cáñamo industrial permanece sin reglamentarse en México, y probablemente así seguirá. “Muy bien -dirá usted- y eso, ¿en qué me favorece?” ¡Continúe leyendo!

Si bien la Ley General de Salud no define o menciona “cáñamo” expresamente, podemos, razonablemente, interpretar que dicha Ley sí que lo contempla, pues señala que permite los usos industriales de la cannabis en concentraciones de 1% o menores de THC, para actividades de comercialización, exportación e importación. Esto, a su vez, significa que las actividades relacionadas con el cáñamo industrial son lícitas en México-incluso sin regulación específica en la materia, e incluso sin que existan licencias específicas a solicitarse para el desarrollo de actividades relativas al cáñamo industrial.

Sin embargo, dando el peculiar panorama jurídico que observamos con la cannabis y el hecho de que, salvo con fines médico-terapéuticos y previa obtención de las licencias correspondientes, las actividades genéricas con la planta continúan prohibidas y entrañan sanciones penales, es recomendable ingresar una solicitud para una autorización general (es decir, no una licencia) para cáñamo industrial ante la Comisión Federal para la Protección contra Riesgos Sanitarios (COFEPRIS), informándole las actividades específicas que su empresa esté planeando realizar. Dichas actividades pueden incluir cualquiera de las ya expresamente señaladas en la Ley General de Salud: comercialización, importación y exportación. A estas actividades agregaríamos producción y transformación, puesto que, ¿cómo tendríamos algo para comercializar, si no lo fabricamos antes?

Como hemos mencionado, las dependencias del Gobierno mexicano no han emitido la “regulación sanitaria” correspondiente en relación al cáñamo industrial, como está previsto en la Ley General de Salud. Esto significa que no existe nada que disponga que COFEPRIS deba emitir licencias de cáñamo industrial. Mientras eso no cambie, COFEPRIS no se sentirá obligada o incentivada a emitir autorización o licencia alguna, por lo que los solicitantes deberán estar preparados para presionar a dicha autoridad a que autorice las actividades relativas al cáñamo industrial solicitadas vía juicios de amparo, promovidos ante los tribunales federales correspondientes. Estamos convencidos de que el esfuerzo bien vale la pena: emprender en el área el cáñamo industrial previo a la promulgación de la “regulación sanitaria” antedicha permitiría emprender un proyecto a una fracción de su costo, por no tener que pagarse derechos por licencias. Además, las empresas no se verían limitadas por los topes a la inversión extranjera observados en otros ámbitos, ni por restricciones impuestas a empresas que estén considerando entrar a la industria cannábica con fines médico-terapéuticos y que buscaran expandirse al cáñamo industrial.

Finalmente, una predicción: la situación actual significa que si el cáñamo industrial continúa sin reglamentarse tras haber tenido lugar la legalización de la cannabis en general, usted podría solicitar licencias para actividades con fines médico-terapéuticos y autorización para cáñamo industrial al mismo tiempo. Asimismo, estaría en posición, siguiendo el curso de acción arriba propuesto, de solicitar autorización para la realización de actividades relacionadas con el cáñamo industrial en cualquier momento, incluso después de que hayan entrado en vigor el Reglamento Médico y la Ley de la Cannabis. Esto revestiría particular importancia en el caso de las licencias de siembra/cultivo/cosecha y de transformación, pues una empresa podría solicitar dichas licencias con fines médico-terapéuticos (se espera que la verticalidad de licencias sí esté permitida para esos fines) y, por separado, una autorización de transformación de cáñamo industrial, para procesar los desechos de la cannabis que se generen. De este modo, el titular de las licencias completaría un círculo económico sostenible, en el seno de su empresa, al tiempo que se estaría en posibilidad de atacar varios mercados al unísono.

En 2018, se legalizó el cáñamo industrial en Estados Unidos, lo que dejó a México, el país con mayor posibilidad en la región de volverse una potencia industrial del cáñamo debido a su clima y ubicación geográfica privilegiadas, como el único Estado parte del T-MEC que aún criminaliza el cultivo del cáñamo industrial. Lo anterior no ha pasado desapercibido, tanto para miembros del Senado mexicano, como de la iniciativa privada, quienes han propugnado que se reglamente la industria de cáñamo, al tiempo que se hace lo propio con la de la marihuana, no sólo debido al valor de mercado del cáñamo industrial, sino al enorme impacto que ello tendría en los sectores agropecuario, ambiental y energético.

En resumen: prepárese para constituir su empresa de cáñamo industrial en México YA. Estamos hablando de una vasta industrial en donde la falta de reglamentación ofrece una enorme gama de posibilidades para empresas mexicanas y extranjeras. Igualmente, ofrece la posibilidad de diseñar planes de negocio más sostenibles a largo plazo que en otros proyectos cannábicos. ¡Llámenos si desea saber más!

The post ¿Emprendimientos de Cáñamo Industrial en México? ¡Comienca Ya! appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3mjkfHz
via IFTTT

San Diego Sues to Collect Unpaid Cannabis Taxes

Apparently, some cannabis businesses in San Diego have not been paying the correct amount of tax money.

from News – High Times https://ift.tt/2HwRAzT
via IFTTT

2016 Never Ended: The Final Presidential Debate

Now that the final presidential debate happened, will this election cycle finally end?

from News – High Times https://ift.tt/34ttZsR
via IFTTT

DRAFT — NOT READY FOR PUBLICATION

On October 9, USDA announced the approval of three hemp plans submitted by Indian tribes, bringing the total number of approved tribal plans to 38. These most recent plan were submitted by the Comanche Nation, the San Carlos Apache Tribe of Arizona, and the Seminole Nation of Oklahoma.

The post DRAFT — NOT READY FOR PUBLICATION appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/35zhKu6
via IFTTT

Jay-Z Launches New Cannabis Brand With Caliva

Jay-Z has officially gone green!

from News – High Times https://ift.tt/35vVEbN
via IFTTT

Montana Supreme Court rejects challenge to legalization ballot measure

The court's rejection came just two days after the suit was filed. 'This was an easy decision,' said a legalization advocate.

The post Montana Supreme Court rejects challenge to legalization ballot measure appeared first on Leafly.

from Leafly https://ift.tt/35pQjTe
via IFTTT

The Roll-up #167: It’s harvest time, so why are weed prices so high?

Welcome to Croptober, when the cannabis harvest comes in and weed prices drop—usually. But not this year. What gives?

The post The Roll-up #167: It’s harvest time, so why are weed prices so high? appeared first on Leafly.

from Leafly https://ift.tt/37zgJEN
via IFTTT

The Challenge to Watch: Sisley, et al. v. DEA

With the evolution of the United States’ relationship with cannabis over recent decades, numerous parties have petitioned the U.S. Drug Enforcement Administration (“DEA”) to reschedule marijuana. As we all know, the DEA has routinely refused to accept or denied each and every petition, minus one that yielded very specific changes for a synthetic cannabis drug. As people realized petitioning the DEA wasn’t going to work, they moved their petitions to the judicial system, citing that the DEA’s administrative process was too dysfunctional and took too long. However, despite the sheer volume of attempts, these have, for the most part, not even been heard on their merits.

Why? The exhaustion of remedies doctrine requires that administrative or other non-judicial avenues be pursued and “exhausted” prior to entering the court system. In principle, this doctrine makes sense: it allows agencies in specialized areas to flush out any issues, it ensures administrative processes are followed and uninterrupted, and it conserves judicial resources. But here, it basically allowed the DEA to continue its practice of effectively ignoring petitions for decades.

In Sisley, et al. v. U.S. Drug Enforcement Administration, et al., Case No. 20-71433, a group of scientists and veterans sued the DEA back in May 2020, arguing that the DEA’s legal basis for keeping marijuana classified as Schedule I drug was unconstitutional. They asked the Ninth Circuit Court of Appeals to review the DEA’s decisions to reject rescheduling petitions previously filed in 1992, 2016, and 2020. Sisley, et al. (“Sisley”) raised questions about the DEA’s reliance on scheduling standards that were not only arbitrary, but allegedly misinterpret federal law.

Per the usual course, the DEA filed a motion to dismiss for failure to exhaust administrative remedies. But in August 2020, the Ninth Circuit Court of Appeals issued an Order denying the DEA’s motion to dismiss the petitioner’s lawsuit for failure to exhaust administrative remedies. The fact that the Ninth Circuit is actually leaning towards reviewing the arguments on their merits already signals a pretty significant change in tides.

Sisley’s opening brief, a staggering 117 pages, challenges the legal rationales on which the DEA have relied to uphold marijuana’s Schedule I status. In sum, Sisley asks:

‘Can DEA deny that marijuana has a “currently accepted medical use in treatment in the United States’ when more than two-thirds of the States have enacted legislation greenlighting marijuana’s use as medicine? The unambiguous text of § 812(b)(1)(B), canons of construction, the CSA’s history and purpose, and common sense all converge on a single, resounding answer: ‘No.’

In support, three amicus briefs (supporting briefs filed by “friends of the court”) were also recently filed – by Iraq and Afghanistan Veterans of America, Rice University’ s Baker Institute of Public Policy, Drug Policy Program, and a group of scientists. In total, the Ninth Circuit has a ton of public health and policy justifications for reconsidering marijuana’s status and the clinical studies and statistics to back them up.

The DEA’s answering brief is due November 30, 2020. You can bet we’ll be following along and will report back on this case, which as of now, is probably our best bet for meaningful change to come.

The post The Challenge to Watch: Sisley, et al. v. DEA appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3kpaQh6
via IFTTT

Cutting booze for Sober October? Here are 9 cannabis drink alternatives

Abstaining from alcohol, but not cannabis? Try these infused beverages available across the US and Canada.

The post Cutting booze for Sober October? Here are 9 cannabis drink alternatives appeared first on Leafly.

from Leafly https://ift.tt/35pSuGp
via IFTTT

Warning! This ballot measure could kill legalization in Florida

If Amendment 4 passes this year, legalization can't be adopted in 2022.

The post Warning! This ballot measure could kill legalization in Florida appeared first on Leafly.

from Leafly https://ift.tt/3dPNVJb
via IFTTT

Report Finds Legal Cannabis Could Bring Texas $500M In Annual Tax Revenue

A new report found that Texas could bring in significant revenue if they legalized cannabis.

from News – High Times https://ift.tt/34lgCdQ
via IFTTT

How to make a pumpkin bong

It's spooky season: the perfect time to make a pumpkin bong and puff all your worries away! Sasha the Silenced Hippie shows you how.

The post How to make a pumpkin bong appeared first on Leafly.

from Leafly https://ift.tt/2Tj1QOE
via IFTTT

Cannabis life advice: On bringing weed into the bedroom

Go slow. ‘If you overdo it, it can lead to an extremely unsexy time.’

The post Cannabis life advice: On bringing weed into the bedroom appeared first on Leafly.

from Leafly https://ift.tt/3obwLdQ
via IFTTT

Report Shows Almost Half of Cannabis Users are Over 40

People age. Luckily, you don't have to grow out of cannabis.

from News – High Times https://ift.tt/3knq5qO
via IFTTT

Brock Pierce: The Revolutionary Going for the White House

Brock Pierce isn’t your average politician, but that doesn’t mean you should count him out.

from News – High Times https://ift.tt/3jocjmt
via IFTTT

How much weed can you really grow from 4 plants?

Canadians are only permitted to cultivate up to 4 recreational cannabis plants per household… so how much weed is that?

The post How much weed can you really grow from 4 plants? appeared first on Leafly.

from Leafly https://ift.tt/35vbL9E
via IFTTT

Hemp in Mexico? Start Today!

As we have reported in this blog, new legislation to regulate cannabis is in the works here in Mexico. A draft “Law for the Regulation of Cannabis” (the “Cannabis Law”) is under discussion by the Mexican Congress as we write. The Cannabis Law will be accompanied by “Regulations on Sanitary Control for the Production, Research and Medical Use of Cannabis and Its Pharmacological Derivatives” (the “Medical Regulations”), which are also a much-awaited breakthrough for the cannabis industry in Mexico. It has been publicized, however, that neither the Cannabis Law nor the Medical Regulations will provide for regulation of hemp.

We are not surprised. In recent years, much of the debate on cannabis legalization in Mexico has focused on the plant’s recreational and medical uses, but we have not seen the same amount of debate as in other Latin American countries on hemp. To us that seems shortsighted, as the global market for hemp is expected to grow from $4.6 billion last year, to $26.6 billion in 2025. Hemp products span multiple applications and could very well mean the surest way for cannabis to contribute to the reactivation of the Mexican economy post-COVID.

Hemp was prohibited in Mexico due to influence from the U.S. way back in 1940. At the time, Mexico did enact “Regulations on Drug Addiction”, which made it legal to grow the cannabis plant and administer cannabis drugs under Government supervision, treating consumers as patients and not as criminals and imposing taxes on growers. Because plant growing was covered by these regulations, hemp could also be cultivated. However, under pressure from the U.S. these regulations were repealed shortly after, and cannabis as a plant was overall prohibited, thereby killing the nascent hemp industry in Mexico.

Absolute prohibition of cannabis prevailed until 2017, when the General Health Law was amended to provide that any product containing cannabis derivatives in concentrations of 1% or less of THC, with ample industrial uses, can be merchandised, exported and imported “pursuant to the requirements set forth by applicable health regulations.” If it turns out that the new Medical Regulations, mentioned above, do not regulate hemp, we will have a situation where the “health regulations” stated in the General Health Law do not exist.

What does this mean for your business? It means that hemp, as an industry, remains and probably will remain unregulated in Mexico. Ok, and how does this work for you? Keep reading!

Although the General Health Law does not define or mention “hemp”, one can reasonably infer that it covers hemp because it allows for industrial use, merchandising, export and import of cannabis in concentrations of 1% or less of THC. This, in turn, means that hemp-related activities are lawful in Mexico—even without hemp regulations per se, and without specific licenses to apply for to conduct hemp-related activities.

Nevertheless, given the odd legal paradigm and the fact that activities with 1.0% THC cannabis technically remain prohibited and subject to criminal sanctions (unless used for medical purposes and prior license obtention), it is advisable to apply to the Federal Commission for the Protection Against Sanitary Risks (COFEPRIS) for a general authorization (i.e. not an actual license) for industrial hemp. Informing COFEPRIS as to which specific activities your company purports to conduct is also recommended. Those activities may include whatever is expressly mentioned in the General Health Law: merchandising, import and export. To those one might add production and processing (how would you have something to merchandise if you do not produce and manufacture it first, right?).

Again, Mexican agencies have not yet issued “applicable health regulations” related to hemp, as envisaged by the General Health Law. This means that COFEPRIS has no mandate to issue hemp licenses. Until that changes, COFEPRIS will not feel forced or incentivized to issue any authorization or licensure. Applicants should be prepared to pressure the authority into allowing hemp activities by pursuing amparo actions before federal courts. We are convinced it is worth the effort:  starting a business prior to formal rule adoption could be done at a fraction of the cost of entering after “applicable health regulations” issue. No regulation also means no caps on foreign investment and no restrictions imposed on these companies which are thinking of entering the medical cannabis industry, and would like to expand into hemp.

Finally, a prediction: the current state of affairs means that if hemp remains generally unregulated once cannabis legalization takes place, you could apply for medical cannabis licenses and hemp licenses at the same time. Following the above proposed course of action, you will be able to apply for hemp authorizations at any time, even after the eventual Medical Regulations and Cannabis Law enter into force. This could be particularly important for growing and processing licenses, whereby a company could apply for growing and processing cannabis licenses (verticality is expected to be allowed for medical use under legalization) and separately for a hemp license to process the cannabis waste. In this way a full sustainable economic circle would be achieved by a company, while many markets could be attacked at once.

In 2018, the U.S. legalized hemp, which left Mexico, the country in the region with the greatest potential to become a hemp industrial powerhouse due to climate and geography, as the only USMCA member State still criminalizing hemp cultivation. This has not been lost on both Mexican Senators and members of the private sector, who have been very vocal about the need to regulate the hemp and marihuana industries in Mexico at the same time, not only due to market value, but because of their huge impact on the agricultural, environmental and energy sectors.

Bottom line: Prepare to set up your hemp company in Mexico NOW. It is a vast industry when lack of regulation offers lots of possibilities for both Mexican and foreign invested companies. It also potentially provides for more sustainable business plans than other cannabis ventures in the long run.

Contact us if you want to learn more! Y regresa sábado si quieres leer esta publicación en español.

The post Hemp in Mexico? Start Today! appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/2HgRlZX
via IFTTT

Mississippi Marijuana Initiative Group Gets Cease & Desist Letter From Trump Campaign

The Trump campaign has requested that the president's name be removed from the literature promoting a pro-medical marijuana initiative.

from News – High Times https://ift.tt/2HuLbVq
via IFTTT

Remembering Kottonmouth Kings’ Saint Dog: October 21, 1975 – October 13, 2020

Producer Kevin Zinger recalls some of his best moments with Steven “Saint Dog” Thronson.

from News – High Times https://ift.tt/35ler9t
via IFTTT

Cannabis Firms Celebrate Día De Muertos 2020

Día de Muertos 2020 is right around the corner! Here's how we're celebrating.

from News – High Times https://ift.tt/31w1icK
via IFTTT

Study Shows Teen Tobacco and Cannabis Vaping Follow Similar Pattern

A self-reported survey sheds some light on the vaping habits of young people.

from News – High Times https://ift.tt/2IKMHn4
via IFTTT

Montana prohibitionists ask Supreme Court to kick legalization off ballot

Trailing badly in the polls, Montana prohibitionists appeal to anti-legalization judges to bail them out.

The post Montana prohibitionists ask Supreme Court to kick legalization off ballot appeared first on Leafly.

from Leafly https://ift.tt/3ogLqnY
via IFTTT

US cannabis harvest price report 2020

The price of weed isn’t falling this harvest.

The post US cannabis harvest price report 2020 appeared first on Leafly.

from Leafly https://ift.tt/35kGzJZ
via IFTTT

Encrypted cartridges are here to help you build customer trust

Let your customers know exactly what’s in their vape cart—from seed to sale.

The post Encrypted cartridges are here to help you build customer trust appeared first on Leafly.

from Leafly https://ift.tt/3dOfz9n
via IFTTT

Trump orders activists to stop saying he supports medical marijuana

The President used to say he supported medical legalization. Not anymore.

The post Trump orders activists to stop saying he supports medical marijuana appeared first on Leafly.

from Leafly https://ift.tt/2Hs7xqB
via IFTTT

Argentine Cannabis: Legalization Coming Soon?

On November 4, citizens in five U.S. states could wake up to newly-approved measures to legalize recreational or medical cannabis. It appears November could also be a big month for Argentina, with reports indicating that a bill to legalize recreational marijuana use will be introduced next month in Argentina’s Congress. The bill is being drafted by Socialist Deputy Enrique Estévez (who, for followers of Argentine politics, is not part of President Alberto Fernández’ left-leaning coalition; the Socialist Party caucuses with opposition political groups).

Currently, Argentina is waiting for new regulations on medical cannabis, which was legalized in 2017, as we discussed in Malbec and Medical Cannabis: Have Them Both in Argentina. Estévez’ bill would decriminalize recreational cannabis use and allow home cultivation of up to 480 grams per year. Not coincidentally, sources close to Estévez are drawing parallels between the proposal and neighboring Uruguay’s existing framework. Uruguay’s own cannabis law also establishes a 480-gram annual limit for home growers (to learn more about Uruguay’s cannabis framework, listen to our Global Law and Business Podcast interview with Dr. Rodolfo Perdomo). However, while Uruguay aspires to become a cannabis export and research powerhouse, Estévez’ vision for cannabis in Argentina appears modest, focused on public health and personal choice concerns.

Sources close to the legislator have clarified that the intention is to keep production at a small scale. Not surprisingly, the socialist Estévez does not appear to be thinking of cannabis’ business potential. In fact, the same sources warn that decriminalizing is not enough, and that the state must ensure safe access to cannabis, in order to keep users away from drug traffickers. Access to cannabis will be through “home growing or growers clubs” or “through access to a regulated market with strict controls, on a small scale, in which associations, cooperatives and state-owned enterprises participate.”

Interestingly, Estévez represents the province of Santa Fe, which has seen quite a bit of cannabis legislative activity recently. The provincial senate is considering medical cannabis legislation approved by the lower chamber that would allow home growing. Meanwhile, the government of Santa Fe’s eponymous capital is expected to soon issue implementing regulations for an ordinance that established a registry for medical cannabis users and growers.

The post Argentine Cannabis: Legalization Coming Soon? appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3dNhRG8
via IFTTT

How you can help 6 state legalization campaigns right now

In the run-up to Nov. 3, legalization campaigns are scrambling to win over undecided voters. Here's how you can pitch in.

The post How you can help 6 state legalization campaigns right now appeared first on Leafly.

from Leafly https://ift.tt/3jeLMYQ
via IFTTT

New Survey Underscores Strong Support For Cannabis Among NJ Voters

It seems like New Jersey is leaning green.

from News – High Times https://ift.tt/31sA9HE
via IFTTT

Canadian Chamber of Commerce to Review Cannabis Act

Canada is gearing up to review the effects legalizing cannabis has had on the country.

from News – High Times https://ift.tt/35gUdOn
via IFTTT

How Republicans are using Minnesota’s marijuana reform parties to siphon votes

Republicans are posing as legalization advocates to draw votes away from Democrats. "It infuriates me," says a longtime advocate.

The post How Republicans are using Minnesota’s marijuana reform parties to siphon votes appeared first on Leafly.

from Leafly https://ift.tt/3dH2grz
via IFTTT

Cannabis Manufacturing Explosion Injures Two in New Mexico

There was an explosion at a New Mexicann Natural MedicIne facility...again.

from News – High Times https://ift.tt/3dHb3K1
via IFTTT

Don’t Hold Your Breath for Federal Cannabis Legalization

Earlier this month, Vermont became the most recent state to legalize recreational cannabis. In the 2020 elections, cannabis legalization initiatives will appear on the ballots in Arizona, Mississippi, Montana, New Jersey and South Dakota (we’ll be doing a weekly series on these states each Sunday leading up to the election, and you can read about Arizona, Mississippi, Montana in those links). To date, the vast majority of U.S. states have legalized cannabis in one form or another.

While states have been increasingly willing to legalize cannabis, the federal government has dropped the ball. Over the last few years, Congress has made many efforts to legalize cannabis or at least provide some benefits to the industry, but nothing has materialized. Most recently, the House of Representatives kicked the can further down the road on the MORE Act by delaying a floor vote that ultimately would have been pretty meaningless anyway if the law had made it to the Republican-controlled Senate.

While it’s clear that Congress can’t seem to get its act together, many had hoped that the U.S. Supreme Court would hear Washington v. Barr, a case in which petitioners sought to have the Court declare certain provisions of the Controlled Substances Act (CSA) relative to cannabis unconstitutional. But, just a few days ago, the Court nixed that opportunity by denying the petition for a writ of certiorari (fancy legal term meaning they declined to hear the case).

That leaves us with the executive branch. You can read our posts from last year giving President Trump a D+ on cannabis, and frankly, not a lot has changed since then. Legalizing cannabis hasn’t been even close to a priority under his administration and in fact, we’ve seen the federal government continue to attack even the state legal industry under his watch (e.g., Jeff Sessions’ rescission of the Cole Memo or William Barr’s antitrust investigations into cannabis mergers).

If President Trump wanted to legalize cannabis, I am pretty sure we’d know by now. His failure to consider federal legalization during his first term will probably not change during any second term. And ultimately, without legislation by Congress, it’s unlikely that he’d be able to do a whole lot himself–an executive order de-scheduling cannabis under the CSA, for example, probably wouldn’t be legal. Joe Biden may not be a whole lot better.

So, where does that leave us? Without a federal entity taking responsibility for cannabis, legalization won’t happen. Without a major change in the structure of Congress and a president who will actually sign a bill legalizing cannabis, it’s not going to happen. There’s a better chance that we may soon be living in a world where all states have legalized cannabis, but the federal government still refuses to act. That’s an unfortunate possibility given the number of Americans that the industry employs and the extremely detrimental effects that legalization imposes on all of them.

Hopefully, something will change. Are we optimistic it will happen soon? No. Stay tuned to the Canna Law Blog for more updates.

The post Don’t Hold Your Breath for Federal Cannabis Legalization appeared first on Harris Bricken.

from Canna Law Blog – Harris Bricken https://ift.tt/3jclPZL
via IFTTT