About Steve Schain

Steve Schain is a Senior Attorney at Hoban Law Group and admitted to practice in Pennsylvania and New Jersey. Steve represents entities, governments and individuals in choosing a structure, preparing and submitting license application, regulation, compliance and litigation, and drafting legislation.

 Cannabis Financial Hardship Solutions: Workouts, Receivership’s, And Assignments for The Benefit Of Creditors

With zilch in the till and creditors crashing through the door, what’s a respectable Cannabis business to do? Although federal bankruptcy protection is presently unavailable, Marijuana Related Businesses ("MRBs”) may obtain financial distress relief via “workouts” or state law receivership's or assignments for the benefit of creditors (“Creditors’ Assignment”). While not providing an “automatic stay”,

By |2020-07-02T09:30:40-06:00April 6th, 2020|Banking and Finance|

How COVID-19 Force Majeure Claims May Wreck or Save Your Business

This article is authored by Senior Attorney Steve Schain. Following its rapid spread, on March 11, 2020 the World Health Organization declared coronavirus (“COVID-19”) to be a pandemic thereby potentially voiding every commercial contract via “force majeure” provisions and the common law doctrine of frustration (“Frustration Doctrine”). “Force majeure” events mirror “Acts of God” like

By |2020-06-22T10:32:00-06:00March 26th, 2020|Government and Policy|

Beyond Marijuana: How Psychedelics Became the Next Big Wave

Feeling kind of blue?  Experiencing intimacy issues or just plain anxious?  Help may be right around the corner in the form of legalized hallucinogens.  Ranging from plant drugs, like mushroom-derived psilocybin and cactus-derived peyote, to synthetics like Lysergic acid diethylamide (“LSD”) and Methyl​enedioxy​methamphetamine (“MDMA"), hallucinogens are increasingly used to treat recognized disorders, including depression, anxiety,

By |2020-07-02T09:30:42-06:00March 20th, 2020|Regulatory|

49 State Banking Associations Demand SAFE Banking Act’s Passage

To increase banking access for businesses within or serving the cannabis industry, on March 6, 2020, banking associations from 49 states and Puerto Rico wrote a joint letter to Senate Banking Chairman Mike Crapo (R-Idaho) and ranking member Sherrod Brown (D-Ohio) (“Banking Association Letter”) demanding the passage of the “Secure and Fair Enforcement Banking Act

By |2020-03-12T10:21:46-06:00March 12th, 2020|Government and Policy|

New Jersey Leads Nation in Federal Hemp Program Approval

New Jersey Leads Nation in Federal Hemp Program Approval Jersey got there first! Leapfrogging over 16 other states with more established hemp programs, on December 27, 2019, the U.S. Department of Agriculture (“USDA”) approved New Jersey’s proposed hemp growing, processing and selling regulations, including Cannabidol (“CBD”) starting in 2020. NJ Hemp Program’s Creation Following Congress’

By |2020-07-07T14:20:24-06:00January 9th, 2020|Government and Policy|

Lifting of Hemp Banking Restriction Clears Path for Marijuana Banking

Not only did banking hemp just get easier and more profitable, prohibitions on providing financial services to Marijuana growers, processors and sellers (“MRBs”) may be further reduced. In conjunction with state bank regulators, this week four federal agencies issued a statement fortifying hemp cultivation’s legal status and removing costly compliance requirements preventing banks from providing

By |2019-12-18T10:56:54-07:00December 5th, 2019|Banking and Finance|

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 |2019-12-18T12:25:34-07:00September 30th, 2019|Banking and Finance|

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 |2019-12-18T12:35:06-07:00September 10th, 2019|Banking and Finance|

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 |2019-12-18T12:38:04-07:00June 13th, 2019|Hemp|