Federal statutes create risk for banks that want to operate in the cannabis space. Banks face the threat of civil actions, asset forfeiture, reputational risk, and even criminal penalties if they do business with customers in the cannabis industry. Further, because most banks will not touch cannabis money, the growers, processors, and retailers in the industry must often operate on a cash-only basis. The Internal Revenue Service has even had to build “cash rooms” to accommodate taxes paid by legal cannabis companies.
FDA Extends Compliance Date for Updated Nutrition Facts Label
The Food and Drug Administration (FDA) is extending the compliance dates for updating the familiar Nutrition Facts labels, from July 26, 2018 to January 1, 2020, for manufacturers with $10 million or more in annual food sales. Manufacturers with less than $10 million in annual food sales will receive an extra year to comply – until January 1, 2021.
FDA explained that after considering a range of stakeholder comments, there was a need for manufacturers to have additional time to make required label changes. The approximately 18-month extension accomplishes this goal and will provide sufficient time to transition to the new version of the Nutrition Facts label. Finally, FDA said it is committed to ensuring that all manufacturers have guidance to help implement the required label changes by the upcoming compliance dates and the additional time will help FDA achieve that objective.
Cannabis Chaos: Justice Department Revokes Obama-Era Guidance on Marijuana Enforcement
Today, Attorney General Jefferson B. Sessions announced, in a memorandum to all US Attorneys, the immediate revocation of five Obama Administration policies on federal marijuana enforcement, including Guidance Regarding the Ogden Memo in Jurisdictions Seeking to Authorize Marijuana for Medical Use, Guidance Regarding Marijuana Enforcement and Guidance Regarding Marijuana Related Financial Crimes. These three Obama-era guidance documents were drafted by then Deputy Attorney General James M. Cole in response to state legalization initiatives. (more…)
TTB Confirms PATH Act “Hard Cider” Compliance Extension
The Alcohol and Tobacco Tax and Trade Bureau (TTB) has confirmed that compliance with the temporary rule implementing the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) (T.D. TTB-147), which changes the eligibility criteria for the “hard cider” tax rate, will be extended by one year. The new compliance deadline will be January 1, 2019. Additionally, the comment period for the temporary rule will be reopened. The file will be available for public view beginning Monday, December 4, 2017, and will be announced in the Federal Register on Tuesday, December 5, 2017.