About Steve Schain

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So far Steve Schain has created 12 blog entries.

Final Frontier for Cannabis Businesses: Bankruptcy Protection

By Steve Schain Most businesses fail, marijuana businesses fail more greatly, but neither marijuana businesses, nor their owners, are entitled to bankruptcy law protection. Instead, because of marijuana’s 100% federal illegality, and because bankruptcy can’t be used to facilitate federally illegal activity or administer assets that can’t be possessed or sold under federal law, bankruptcy

By |2019-11-20T13:11:59-07:00October 29th, 2019|HLG In The News|

Why the SAFE Banking Act’s Passage May Solve Cannabis Banking

Paving the way for banks and insurance companies to serve state-legal Marijuana growers, processors, transporters and sellers (“Marijuana-Related Businesses” or “MRBs”) without fear of federal reprisal, on September 25, 2019, the United House of Representatives passed the “Secure and Fair Enforcement Banking Act of 2019” (“SAFE Banking Act”). A bipartisan bill seeking to align federal

By |2019-10-04T07:42:31-06:00September 30th, 2019|HLG Blogs, Marijuana|

How to Move and Bank Cannabis Cash in the US and Beyond

Spanning 34 states and generating $10.8 billion domestically in 2018, banking and cash management is one of legalized marijuana’s greatest obstacles. While 633 banks and credit unions (financial institutions) provide marijuana growers, processors and sellers (marijuana-related businesses or MRBs) with accounts, this is a small fraction of nation’s 11,954 financial institutions, which, to offset onerous

By |2019-09-10T12:42:46-06:00September 10th, 2019|HLG Blogs, Marijuana|

Industry Trembles After FDA Cracks The Whip

Powered by a $6.1 billion annual budget and prosecutorial alliance with the Federal Trade Commission (“FTC”), last month the U.S. Food and Drug Administration (“FDA”) simultaneously charged three cannabidiol (“CBD”) companies with violating the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. 301, et seq. (“FDA Act”) and Federal Trade Commission Act, 15 U.S.C. §§

By |2019-08-21T04:52:48-06:00June 13th, 2019|Hemp, HLG Blogs|

How Risk Management Can Make Marijuana Businesses Bulletproof

Envision managing the risk of a volatile, staggeringly lucrative, 100 percent federally legal enterprise?   Toss in ridiculously inconsistent federal, state and local regulations, insanely evolving technologies and efficiencies, and an industry-wide disinclination to ever “play by the rules”. However, when armed with decent risk management fundamentals, a marijuana related business can diminish most horrible outcomes,

By |2019-08-19T20:20:39-06:00May 6th, 2019|HLG Blogs, Marijuana|

New Jersey Gears Up Its Legalized Marijuana Program

By Steve Schain, Senior Attorney at Hoban Law Group Amplifying its existing medical marijuana program and proposing an adult-use system, this month New Jersey's legislature proposed "the Marijuana Legalization Act" and the Department of Health ("Health Department") offered regulations fleshing out Governor Murphy's March 23, 2018 Executive Order 6 expanding existing law's medicinal cannabis program ("Executive Order 6 Regulations").

By |2019-08-20T00:47:05-06:00June 27th, 2018|HLG Blogs, Marijuana|

Pennsylvania’s Medical Marijuana Program Launches Second Phase

By Steve Schain, Hoban Law Group After blitzing through 500 applications in 90 days, nine months ago Pennsylvania's Department of Health ("DOH") awarded 12 grower/processor and 27 dispensary medical marijuana licenses ("First Phase"). After generally awarding licenses to the best funded applicants with proven track records of success. the DOH just announced the launch of

By |2019-08-20T01:34:56-06:00April 26th, 2018|HLG Blogs, Marijuana|

Marijuana Banking’s Massive Leap Forward

By Steve Schain, Senior Attorney at Hoban Law Group. Spanning 31 states and generating $7.2 billion in 2017, the US's legalized marijuana industry's greatest obstacle, banking, was significantly reduced according to the Department of the Treasury's ("Treasury") Financial Crimes Enforcement Network's ("FinCEN") September 30, 2017 "Marijuana Banking Update". While still only a fraction of nation's 11,954 regulated banks and

By |2019-08-20T01:52:14-06:00March 7th, 2018|HLG Blogs, Marijuana|

Industry Snapshot: Banking-Related Services

Perhaps the biggest logistical obstacle facing many cannabis businesses today is the reluctance of most financial institutions to serve the industry. Because of marijuana’s status as a Schedule 1 controlled substance, banks and credit unions remain vulnerable, at least theoretically, to criminal charges from the Department of Justice if they cooperate with plant-touching companies. Members

By |2019-08-21T18:29:54-06:00May 27th, 2017|HLG Blogs, Marijuana|

SAFE Banking Act

Due to difficulty in obtaining ­financial services and because marijuana is a "cash only" business, ­marijuana-related businesses (MRBs) face staggering safety, security and operational issues. Help is on the way for this $7.2 billion per year industry via the Secure and Fair Enforcement Banking Act (SAFE Banking Act), 114 HR 2076, the stated aim of

By |2019-08-20T16:48:44-06:00May 9th, 2017|HLG Blogs, Marijuana|