California Regulators Issue Cannabis Banking Guidance That’s Actually Useful

On October 2, 2019, the California Department of Business Oversight issued some really helpful guidance aimed at California banks and credit unions that are currently or are planning to bank marijuana-related businesses (MRBs). The guidance document consists of an extensive questionnaire that is used by California state bank examiners when they audit a bank or credit union’s MRB compliance program. The guidance document is intended to help California financial institutions comply with Bank Secrecy Act and FinCEN guidance on cannabis banking. Although some of the guidance in the questionnaire is California-law specific, much of it is broadly applicable to any financial institution in any state that has legalized medical or recreational cannabis. We are encouraging all of our financial institution clients who have or are working on MRB compliance programs to take a look!

No Recreational Cannabis in New Hampshire This Year, and No New “Alternative Treatment Center” Licenses

There will be no legalization of recreational cannabis in New Hampshire this year. That is the story of the legislative session as the House and Senate wind down their sessions this month. Nevertheless, there are still a number of cannabis-bills headed to the Governor’s desk.

The chances were unlikely that recreational cannabis would be legalized in New Hampshire this year, particularly after Governor Sununu vowed to veto such legislation. Nevertheless, the House passed HB 481, which legalized recreational cannabis in April. The Senate, however, recognizing the lack of votes to overcome the governor’s promised veto, voted to keep it in Committee over the summer.

The House Health Committee also decided to retain two bills (HB 366 and HB 461), which would have added qualifying medical conditions for therapeutic cannabis. It will take up the retained bills in the fall. 

Meanwhile, the Senate killed HB 174, which would have added a potential fifth alternative treatment center (ATC) license. There are currently four licenses (or certificates) to operate ATCs in New Hampshire. These four certificates correspond to four geographic areas set by the Department of Health and Human Services (DHHS). Each licensee may only operate within its prescribed geographic area. HB 174 would have allowed DHHS to begin taking applications for a fifth license for an ATC to be located in Hillsborough or Merrimack County. Currently, there is only a single ATC in Hillsborough County and no ATC in Merrimack and Rockingham Counties (the second and third largest counties by population). The defeat of this bill is a blow to potential future entrants to the New Hampshire market. 

Another potential blow (or opportunity) to potential future entrants to the New Hampshire market is SB 145, which changes the law with respect to the corporate form of ATCs. Under current law, an ATC must operate as a not-for-profit entity. SB 145 would amend the law to allow ATCs to be a “domestic business corporation organized under RSA 293-A” or a “domestic limited liability company organized under RSA 304-C.” The likely initial result of this change will be a sale or reorganization of the current ATCs. But it could open up the market to future acquisitions by for-profit entities.

Next: But, we may have more dispensaries and more (legal) cannabis growing in the state.

Welcome to Our Blog (and, What We’re All About)

Welcome to the Cannabis Law and Policy Update! You can expect updates and commentary on a potpourri of marijuana and hemp happenings at the state and federal level. We will be primarily focused on the law (since we’re lawyers), but in the broadest sense. Think everything from court decisions to legislation to regulation to enforcement, with our reactions and some practical advice sprinkled throughout.

At the moment, every week seems to bring some significant development in the world of cannabis law and policy. Maine’s rulemaking process for adult use marijuana is heating up, which means that a (legal) adult use industry is just around the corner; the legality of hemp and CBD is a complete rollercoaster ride; the Legislature is continuing to fix and tinker with Maine’s medical and adult use marijuana laws; and the feds remain curmudgeons all around. We’ll be hitting on specific angles in this arena all the time, so check back frequently and subscribe.