The various forms of information reporting required by the Internal Revenue Code form the backbone of both voluntary compliance with tax laws and the starting point for audits by the Internal Revenue Service (IRS). One form that is particularly relevant in the cannabis space is IRS Form 8300, which implements the law that requires a business to report transactions involving cash payments of more than $10,000.Continue Reading Preparing for IRS Cash Transaction Reporting in the Cannabis Industry

Attorneys general (AG) from 20 states and the District of Columbia have submitted a letter to Congress requesting that federal lawmakers close the “loophole” created by the 2018 Farm Bill that is widely understood to prohibit state regulation of intoxicating hemp products, including delta-8 tetrahydrocannabinol (THC) products.Continue Reading 21 State AGs Call on Congress to Regulate Intoxicating Hemp Products

In the grand experiment of American democracy, it is often said that states serve as laboratories, testing policies that challenge the status quo without risking the stability of the whole. Oregon, known in recent years for its pioneering drug decriminalization laws, is at a crossroads that marks the end of a significant experiment. State legislators recently passed a bill aiming to recriminalize the possession of small amounts of certain substances, a move now awaiting Democratic Governor Tina Kotek’s approval. Last week, the governor announced that she plans to sign the bill. The move toward recriminalization highlights a broader conversation on the re-evaluation of drug policy, public health, and social justice in a post war-on-drugs environment in the U.S.Continue Reading Reassessing Oregon’s Drug Policy: A Shift Toward Recriminalization

A Colorado manufacturer of cannabis-infused edible products is suing the Marijuana Enforcement Division (MED) of the Colorado Department of Revenue (CDOR) to challenge the validity of recent revisions to its inventory tracking regulations.Continue Reading Colorado Cannabis Company Challenges Recent Revisions to the State’s Marijuana Tracking Regulations

On February 28, the Virginia General Assembly passed House Bill No. 698, which would legalize sales of recreational marijuana at retail in the Commonwealth. It now heads to the desk of Governor Glenn Youngkin, where its future is uncertain. In this blog post, we highlight key provisions of the proposed framework related to licensing, taxes, testing, and labeling.Continue Reading Recreational Marijuana Regime Passes Virginia General Assembly

Introduction

On February 1, Senior U.S. District Judge R. Brooke Jackson of the U.S. District Court for the District of Colorado denied Mackie A. Barch (Mackie) and Trellis Holdings Maryland, Inc. (Trellis and together with Mackie, defendants) motion to vacate the original judgment entered into on September 7, 2022, awarding $6.4 million to David J. Bartch (plaintiff) as a result of defendants’ breach of contract. In reaching his ruling, Judge Jackson was unpersuaded by defendants’ argument that the court lacks subject matter jurisdiction over this matter because the plaintiff’s injury is not redressable by a federal court because marijuana is illegal under federal law, and federal courts therefore cannot adjudicate marijuana cases. Judge Jackson further went on to specify that the conduct at the center of this dispute (defendants’ agreement to return plaintiff’s ownership interest upon the successful licensing of Doctor’s Orders Maryland (DOMD)) would not have “affected the amount of cannabis that the company [DOMD] cultivated or distributed” in violation of the Controlled Substances Act (CSA). The decision to ultimately defend and extend Article III jurisdiction in cases arising out of cannabis business disputes is an interesting shift that highlights the sway of public opinion to the side of the legalization of marijuana on the federal level.Continue Reading Federal Courts and Cannabis Disputes: A New Perspective From Bartch v. Barch

One of the most interesting aspects of marijuana law and policy in the U.S. is its tendency to strike at our most foundational democratic principles. In 2005, the U.S. Supreme Court held, in Gonzales v. Raich,[1] that Congress has the power to regulate the purely intrastate cultivation, manufacture, distribution, possession, and use of marijuana under the commerce clause, even if the marijuana never crosses state lines, because marijuana-related activity has a “substantial affect” on interstate commerce. Several challenges have been made to this conclusion since Gonzales was decided, none of which have been successful to date.Continue Reading Lawsuit Highlights the Complexity of Regulating the Intrastate Use of Marijuana

Whether you believe that cannabis legalization has occurred too quickly or too slowly, one thing is certain: recent developments herald a potentially seismic shift in federal cannabis policy in the U.S. Reflecting on our article from September, which discussed the U.S. Department of Health and Human Services’ (HHS) recommendation to the Drug Enforcement Administration (DEA) to reschedule cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA), it is clear that the landscape continues to evolve rapidly. Since that publication, numerous noteworthy developments have unfolded, along with a growing discourse on the potential unintended consequences of such a reclassification. This article aims to catch readers up on the latest developments in federal cannabis legalization.Continue Reading From “High Potential for Abuse” to “Accepted Medical Use”: Tracking Developments and Possible Outcomes of Federal Cannabis Rescheduling in the U.S.

The Virginia Cannabis Control Authority (CCA), which assumed oversight of Virginia’s medical cannabis program from the Board of Pharmacy as of January 1, has promulgated regulations to govern medical cannabis operations in the Commonwealth. The regulations are largely similar to those that existed under the Board of Pharmacy, but they bring the Commonwealth one step closer to opening applications for the state’s single unlicensed health service area (HSA).

Continue Reading Virginia Advances Toward New Medical Cannabis License Application With New Regulations

Recently enacted Pennsylvania Senate Bill 773 (SB773) introduces several amendments intended to expand opportunities and increase competition among existing cannabis licensees in Pennsylvania. The bill seeks to support independent licensees in the state and is a response to the consolidation among licensees that many states have seen as state-legal marijuana operators struggle under the weight of federal prohibition and competition from the unregulated marketplace.Continue Reading Pennsylvania Seeks to Increase Competition Among Medical Cannabis Licensees With SB773 Passage