In the days of the Armada, a fleet of warships, the scuttlebutt was the rumor or gossip that would spread throughout the ship. Today, Armada Law Corp presents The Scuttlebutt, a daily summery of news articles that people within the cannabis, hemp and plant medicine industries are chatting about along with links to the full articles.
In today’s news:
Six Governors Push Biden To Ensure Marijuana Is Rescheduled By The End Of This Year
#cannabispolitics – “The governors of six U.S. states—Colorado, Illinois, New York, New Jersey, Maryland and Louisiana—sent a letter to President Joe Biden (D) on Tuesday urging the administration to reschedule marijuana to Schedule III of the Controlled Substances Act by the end of this year. The move, they say, will provide economic and tax benefits for cannabis businesses, protect public health and more closely align government policy with public opinion.
“Rescheduling cannabis aligns with a safe, regulated product that Americans can trust,” says the governors’ letter, which points to a poll that found 88 percent of Americans support legalization for medical or recreational use. “As governors, we might disagree about whether recreational cannabis legalization or even cannabis use is a net positive, but we agree that the cannabis industry is here to stay, the states have created strong regulations, and supporting the state-regulated marketplace is essential for the safety of the American people.”
The governors noted that the recent Department of Health and Human Services (HHS) recommendation to reschedule marijuana “comes on the heels of 38 states creating their own state markets” and regulatory systems….”
What Cannabis Companies Can Expect When Borrowing Money
#cannabisindustry – “Cannabis companies that need more money than they can generate through sales generally have two options: borrow money (debt) or solicit investments (equity). Over the years as the industry has constricted, equity finance became less of an option. I recently predicted that equity investment will reignite when cannabis is rescheduled. But that hasn’t happened yet, which means that cash-hungry cannabis companies need to borrow money. And because of high taxation, overregulation, the illegal market, and so on, many if not most cannabis companies need cash….”
Most California Social Equity Programs Still in Development
#cannabislicensing – “A new report provided to state lawmakers this week confirmed what many already knew: California’s social equity programs still have a long way to go.
The report, which was due to the California Legislature in July but was only published this week by the Governor’s Office of Business and Economic Development (GO-Biz), delivered both a breakdown on where $35 million in funding was sent last year, and also the status of such programs as of December 2022.
The upshot? California has 23 local social equity programs that have been formally adopted, which in turn have issued 907 cannabis business permits to eligible applicants. That’s a 46% increase from the year prior, when the state had 619 social equity licenses.
Thirty cities and counties have received state funding dedicated to social equity licensing since the legislature began earmarking monies for the programs back in 2018, but only 16 were awarded funding in March 2022 according to the report, compiled by GO-Biz….”
CFIG Releases Business Guide for Cannabis Banking Options
#cannabisindustry – “The Cannabis Financial Industry Group (CFIG), a coalition of financial institutions and associated risk mitigating service providers serving the regulated U.S. cannabis industry, announced the publication of a guide to help state-legal cannabis-related businesses (CRBs) understand the importance of engaging with a financial institution with a strong cannabis banking program to keep their accounts safe and sound.
This resource will help CRBs to better assess financial institutions offering cannabis banking services and the importance of working with institutions that have established and compliant programs. The document also aims to help educate CRBs about the requirements and compliance costs associated with servicing this unique industry that financial institutions must adhere to presently and in the future, even once the SAFER Banking Act or other federal cannabis policies shift.
Additionally, it highlights the importance of CRBs providing required documentation for both onboarding and continued monitoring for maintaining a banking relationship that is highly compliant, which is essential for both the financial institution and the client….”
Vote on Germany’s cannabis law delayed until 2024
#cannabispolitics – “Germany’s parliament won’t have an opportunity to put the first phase of the country’s pending cannabis legislation to a vote this year.
It’s the latest setback for a draft law that has experienced several delays and revisions in recent months as lawmakers sought to revise and improve the bill….”
Suspended Cannabis Regulator Wins Disciplinary Hearing Delay
#cannabislawsuit – “A Massachusetts state judge on Tuesday delayed a disciplinary hearing for the state’s suspended cannabis regulator, finding it would be unfair to force her to defend herself in a “piecemeal” process while she lacked significant information about an ongoing investigation.
Suffolk County Superior Court Justice Debra Squires-Lee ordered state Treasurer Deborah Goldberg not to go forward with a disciplinary hearing for suspended Cannabis Control Commission Chair Shannon O’Brien that had been scheduled for Tuesday afternoon.
“Put simply, a meaningful opportunity to be heard requires understanding the full extent of the allegations you face and their factual underpinnings,” Justice Squires-Lee wrote in granting a temporary restraining order. “Being forced to defend oneself with partial information does not comport with basic due process.”
The judge also ordered the parties to be back in court in 10 days for a hearing on O’Brien’s request for a preliminary injunction, after the completion of a second investigative report and when investigators and other witnesses are expected to be available….”
(PAYWALL) Read more at: https://www.law360.com/cannabis/articles/1773387?nl_pk=bb2d2862-9f62-42b6-ab85-0c7a674438c1&utm_source=newsletter&utm_medium=email&utm_campaign=cannabis&utm_content=2023-12-06&read_main=1&nlsidx=0&nlaidx=0?copied=1