After a lengthy compromise process, The Agriculture Improvement Act of 2018 (the 2018 Farm Bill) was passed on December 12, 2018 by Congress and delivered to the White House for the President to sign. The 2018 Farm Bill will replace the Agriculture Improvement Act of 2014, which expired on September 30, 2018. Distributing more than $850 billion, the 2018 Farm Bill is an enormous piece of legislation and funds programs such as crop insurance, school lunches, and the Supplemental Nutrition Assistance Program (SNAP).

Integrated into the massive omnibus Farm Bill is the bipartisan Hemp Farming Act of 2018, spearheaded by Senator Mitch McConnell. The Hemp Farming Act will legalize at the federal level the production of industrial hemp, defined as Cannabis sativa L. plants containing less than three-tenths of a percent of THC, the intoxicating chemical in marijuana. The low concentration of THC makes these plants unsuitable for marijuana production, which remains federally illegal.

First and foremost, the 2018 Farm Bill will abolish this inconsistent treatment by removing industrial hemp from the definition of “marihuana” in the Controlled Substances Act (CSA). In addition, tetrahydrocannabinols contained in industrial hemp will be removed from the purview of the CSA. This amendment to the CSA will decriminalize the production and use of the Cannabis sativa L. plant and its derived products that match the definition of industrial hemp, such as hemp seed oil, CBD oil, hemp fibers and hemp paper. Continue Reading Industrial Hemp: On the Brink of Legalization

While the basic principles of due diligence still apply, vetting existing marijuana and hemp businesses presents some unique variables and risks.

The cannabis industry is expected to grow exponentially over the next decade. Cutting a deal at this stage could potentially reap outsized rewards, but as ever, deals carry with them a certain element of transactional risk.

In this white paper we discuss:

  • Assessing financial statements
  • Intellectual property due diligence
  • Business and regulatory relationships
  • Regulatory compliance

Read this white paper to learn more about a more customized approach to cannabis industry-related due diligence.

 

Download the White Paper

Cannabis is a hot topic in the news. On October 17, 2018, our friends to the north made headlines when cannabis was officially legalized for adult use. As the November 6 midterm elections draw closer in the United States, we’ve compiled a round-up of ballot initiatives across the country that will ask voters to weigh in on a variety of marijuana and industrial hemp initiatives.

Continue Reading Marijuana in the Midterms

Ballotpedia.com maintains a database of local ballot measures extending back to the beginning of the century. According to the website, there have been 164 cannabis-related local ballot measures in California since 2000. Amazingly, 77 of them—or 47 percent—appeared this year, a remarkable spike in number.

Continue Reading Cannabis-Related Local Ballot Measures Hit All-Time High in California

Husch Blackwell is proud to support @TheNCIA Northern California #CannabisCaucus on Tuesday, October 9 in Santa Rosa, CA. NCIA’s Cannabis Caucus event series has quickly become the gold standard event for professionals serving the cannabis industry! Join the industry’s most influential leaders for an evening of hors d’oeurves, cocktails (cash bar) and the latest organizational and federal policy updates. A registration link can be found here. Please use promo code HUSCH75 for 75% off tickets to this event.

Husch Blackwell Cannabis team attorneys Steve Levine and Meghan Brennan will participate in today’s #DENStartupweek events by speaking on a panel on the topic of the States of Cannabis. Since Colorado legalized the cultivation, manufacturing and sale of cannabis, cannabis has grown from small mom and pop operations to a large scale agribusiness, and regulations have followed suite. Attendees will learn about the spectrum of state, local and international regulations that have developed since initial legalization. Panelists will also discuss the impact such regulations have on the industry and trends they are seeing due to the very different approaches to cannabis regulation. The panel will discuss the differences between the United States and the uncertainty at the federal level and Canada, where cannabis was legalized at the federal level. Megan and Steve will join other panelists Alyssa Samuel and Dylan Sheji. The panel will be held from 10:15am – 11:15am. Location is the offices of Akerman LLP at 1900 Sixteenth Street, Suite 1700.