NCUA Advises Credit Unions They Can Provide Financial Services to Hemp Businesses

Wednesday, August 28, 2019

Last week, the National Credit Union Administration (“NCUA”) released interim guidance advising federally insured credit unions that they may provide certain financial services to legally operating hemp businesses. The interim guidance was released in response to the passage of the 2018 Farm Bill in December 2018 that removed certain hemp-derived products, including cannabidiol, from the list of Schedule 1 drugs in the Controlled Substances Act. 

The NCUA advises credit unions that they need to “understand the complexities and risks involved” if they choose to serve hemp-related businesses, and reminds credit unions that they “must have a Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) compliance program” that addresses the risks related to hemp-related businesses. While the guidance encourages credit unions to “consider whether they are able to safely and properly serve lawfully operating hemp-related businesses within their fields of membership,” it also reminds credit unions of the “long and successful history” many credit unions have had in “providing services to the agricultural sector.”

The NCUA will issue additional guidance after the U.S. Department of Agriculture publishes its final regulations and guidelines.

The Non-Maine CBD Crackdown: What’s Become of It?

Wednesday, August 21, 2019

As we’ve previously discussed, Maine is claiming that, until September 19, food products sold in Maine cannot contain CBD grown elsewhere. So how is this policy working out in practice?

We’ve heard from several folks in the industry that the "crackdown" isn’t really materializing. Inspectors from Maine’s Department of Agriculture have been talking about this issue with some retailers in the state, but, in the instances we’ve heard about, inspectors have either told retailers that they’re not interested in checking to determine whether edibles for sale are in compliance, or the inspectors have provided a "verbal warning" to those selling non-Maine CBD products, without any explanation for what this actually means. 

I’d love to hear from anyone who has had any different experiences so far this month, but, so far, at least anecdotally, the State may be taking a conservative approach to enforcement.

FDA Official Suggests that CBD will be banned from foods for the foreseeable future

Friday, August 16, 2019


We’re tracking statements from the FDA regarding CBD in food. With state policy fluctuating so wildly on this issue and often attempting to mimic federal laws, the FDA’s evolving position on CBD is important.  So it’s notable that earlier this week a member of the FDA’s cannabinoid working group, Lowell Schiller, reaffirmed the FDA position that “under current law, it’s unlawful to sell a food or dietary supplement with CBD in interstate commerce.” He went on to state that significantly more research is needed before this changes at the federal level.

Keep in mind that these are policy statements, not explicit laws or regulations particular to CBD, from the FDA. So their legal force is subject to challenge. Regardless, for the time being, as CBD becomes more ubiquitous nationwide and states explicitly approve foods containing CBD, federal policy will continue to diverge from state law and the reality on the ground.

Draft Marijuana Licensing Rules Released for City of Portland

Monday, August 5, 2019

As local readers likely know, Portland completed its zoning regulations for marijuana stores last February. But at the time, the City deferred on a number of decisions such as what stores will be allowed to sell, and what criteria will need to be met to be able to open a retail store. Now the City has taken a big step toward answering those questions. The City released draft licensing rules last week. 

We’re still combing through the rules, but some notable takeaways off the bat: staff are proposing a cap of 20 total retail licenses, and a 250’ buffer between stores “to avoid having stores cluster in one location and to avoid over-saturation of the market." City staff are also offering the Council options for what seems to be essentially a first-in-time licensing system or, alternatively, a weighted lottery. Staff have said they prefer the first-in-time system.

Staff will be presenting their recommendations to the Economic Development and HHS Committees tomorrow, August 6, at 5:30 pm. This will be open to the public.