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 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 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 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
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
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
They're legalized marijuana's "dirty little secrets;" grid-crashing energy demands and glut-producing price drops. Permitting only energy-intensive, indoor growing facilities, neither Pennsylvania's Medical Marijuana Act, 35 P.S. Sections 10231.101-10231.2110 and regulations promulgated thereunder (Pennsylvania marijuana law), nor the program's regulatory agency the Department of Health (DOH), provide for the increased electricity demand, grid reliability or carbon
Today, Secretary Murphy made several announcements relating to the administration’s progress in implementing the Medical Marijuana Program: Physician Workgroup Physician and healthcare professional feedback is vital to the successful implementation of the program, and the Department of Health continues to receive valuable recommendations from the workgroup including clearly identifying the role of physicians serving adults