For at least the past decade, federal bankruptcy courts have routinely prohibited cannabis businesses from seeking protection under federal bankruptcy law, regardless of whether a cannabis business is legally operating under state law. The reason is that cannabis remains illegal under the federal Controlled Substances Act (CSA), which, in addition to criminalizing the direct growing
Removing the Green Tax: Congress Can Bring Cannabis Tax Policy in Line with Cannabis Enforcement Policy
If you give me an opportunity to quote George Harrison, I’m going to do it. In “Taxman,” he wrote:
Should five percent appear too small
Be thankful I don’t take it all
‘Cause I’m the taxman
Yeah, I’m the taxman
I suspect “The Quiet One” would be appalled to know the taxes facing…
Preparing a Cannabis Application: Five Things I Learned
Bob Seger’s “Against the Wind” is an anthem to love and growing old. Among its many great lines is “wish I didn’t know now what I didn’t know then.” Can you tell I recently turned 40?
But I write today not about what I wish I didn’t know, but about what I wish I did…
If You Don’t Believe, You Won’t Receive: Predicting Three Cannabis Reforms in the Coming Year
I’m not proud of it, but I’m the resident cynic amongst the editorial staff here at Budding Trends when it comes to federal marijuana reform. And after all, someone has to temper the frivolous whims of others. But we’re coming off the holiday season where I told two growing children that if they did not…
2022 Midterms and the Future of the Safe Banking Act
As the midterm elections come to an end, we revisit the future of the SAFE Banking Act and the hurdles we expect to see in the coming Congressional term. If passed, the SAFE Banking Act would remove uncertainties surrounding federally regulated financial institutions, allowing financial institutions to bank the legal cannabis industry with less legal…
Change (May) Come at Last? Biden Announces Review of Marijuana Scheduling and Mass Pardons for Simple Marijuana Possession
Yesterday, President Joe Biden made two historic announcements which he described as steps to “end” the federal government’s “failed approach” to marijuana. First, he is issuing mass pardons for federal convictions of simple marijuana possession and has encouraged governors to do the same for state-level marijuana offenses. Second, President Biden ordered Secretary of Health and…
Money Doesn’t Grow on Leaves: Cannabis Investing for Dummies (and Non-Dummies)
When people learn that you are a cannabis attorney, there are a range of reactions. Nervous laughter bordering on incredulity may be most common. Another common reaction is the sentiment that investing in cannabis is a license to print money. Spoiler alert: This is not the case.
Consider this a public service announcement – one…
Finding a Bank and Insurance Company for a Cannabis Business
With apologies to Ben Franklin and others, nothing is more certain if you operate a cannabis company than your need for access to banking services and insurance (FWIW, the death and taxes part is probably also the case). This is true (1) as a practical matter and (2) often a legal requirement.
Cannabis Banking: Will the SAFE Banking Act Finally Pass?
One of the largest headwinds facing the cannabis industry is the lack of access to banking services. Many financial institutions refuse to serve the multibillion-dollar cannabis industry given the regulatory uncertainty created by divergent state and federal cannabis laws. The SAFE Banking Act seeks to remove these ambiguities at the federal level, clearing the path…
Congress Should Vote or Get off the Pot
When we last examined marijuana reform at the federal level earlier this year, we warned that perfect can be the enemy of good. Our point was that we should not forego meaningful federal cannabis reform by holding out for more comprehensive reform that seemed unlikely to become law.
As of the time of