Legal & Financial Regulations on the Cannabis Industry

This program, taught by David Feldman and Jen Fisher, partners and Team Leads of the Cannabis Industry Group at Duane Morris LLP in New York and San Francisco, provides an overview of financing for cannabis-related businesses and the unique banking issues they face, as well as the industry's regulatory environment (both current and anticipated). The course will begin with a brief overview of cannabis regulation, the interplay between state and federal law, and industry perceptions about what changes may come about at the federal level following the 2018 elections. The program will then address the unique issues in raising capital for these companies, including the differences between businesses that "touch the plant" and those that do not, and review the challenges faced by public companies in the space.

Mr. Feldman will address banking regulatory issues, including the Bank Secrecy Act, guidance on the issue from The Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department, and how banks are reacting to that guidance, and Ms. Fisher then will focus on the broader regulatory and enforcement issues that cannabis companies must address at both the state and federal level. State regulations are evolving and vary widely from state to state, and federal enforcement attitudes shift from year to year. Ms. Fisher will also review the impact of the recently passed Farm Bill, which legalized industrial hemp and hemp-derived cannabidiol (CBD), including how these substances will be regulated going forward.

Learning Objectives:

1. Review the current statutory and regulatory landscape
2. Explore the challenges of financing, banking and state and federal regulation in a rapidly growing but complex industry
3. Advise cannabis clients on finance, banking, and regulatory questions