Clarification of the New Drug Code (7350) for Marijuana Extract

Clarification of the New Drug Code (7350) for Marijuana Extract

Note regarding this rule – In light of questions that the Drug Enforcement Administration has received from members of the public following the publication of the Final Rule establishing a new Controlled Substance Code Number (drug code) for marijuana extract, DEA makes the following clarification:

  • The new drug code (7350) established in the Final Rule does not include materials or products that are excluded from the definition of marijuana set forth in the Controlled Substances Act (CSA).1
  • The new drug code includes only those extracts that fall within the CSA definition of marijuana.
  • If a product consisted solely of parts of the cannabis plant excluded from the CSA definition of marijuana, such product would not be included in the new drug code (7350) or in the drug code for marijuana (7360).

As explained in the Final Rule, the creation of this new drug code was primarily intended to give DEA more precise accounting to assist the agency in carrying out its obligations to provide certain reports required by U.S. treaty obligations. Because the Final Rule did not add any substance to the schedules that was not already controlled, and did not change the schedule of any substance, it was not a scheduling action under 21 U.S.C. §§ 811 and 812.

The new drug code is a subset of what has always been included in the CSA definition of marijuana. By creating a new drug code for marijuana extract, the Final Rule divides into more descriptive pieces the materials, compounds, mixtures, and preparations that fall within the CSA definition of marijuana. Both drug code 7360 (marijuana) and new drug code 7350 (marijuana extract) are limited to that which falls within the CSA definition of marijuana.

Because recent public inquiries that DEA has received following the publication of the Final Rule suggest there may be some misunderstanding about the source of cannabinoids in the cannabis plant, we also note the following botanical considerations. As the scientific literature indicates, cannabinoids, such as tetrahydrocannabinols (THC), cannabinols (CBN) and cannabidiols (CBD), are found in the parts of the cannabis plant that fall within the CSA definition of marijuana, such as the flowering tops, resin, and leaves.2  According to the scientific literature, cannabinoids are not found in the parts of the cannabis plant that are excluded from the CSA definition of marijuana, except for trace amounts (typically, only parts per million)3 that may be found where small quantities of resin adhere to the surface of seeds and mature stalk.4  Thus, based on the scientific literature, it is not practical to produce extracts that contain more than trace amounts of cannabinoids using only the parts of the cannabis plant that are excluded from the CSA definition of marijuana, such as oil from the seeds. The industrial processes used to clean cannabis seeds and produce seed oil would likely further diminish any trace amounts of cannabinoids that end up in the finished product. However, as indicated above, if a product, such as oil from cannabis seeds, consisted solely of parts of the cannabis plant excluded from the CSA definition of marijuana, such product would not be included in the new drug code (7350) or in the drug code for marijuana (7360), even if it contained trace amounts of cannabinoids.5

1 The CSA states: “The term ‘marihuana’ means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination.” 21 U.S.C. § 802(16).

H. Mölleken and H. Hussman. Cannabinoid in seed extracts of Cannabis sativa cultivars. J. Int. Hemp Assoc. 4(2): 73-79 (1997).

3 See id.see also S. Ross et al., GC-MS Analysis of the Total Δ9-THC Content of Both Drug- and Fiber-Type Cannabis Seeds, J. Anal. Toxic., Vol. 24, 715-717 (2000).

4 H. Mölleken, supra.

5 Nor would such a product be included under drug code 7370 (tetrahydrocannabinols). See Hemp Industries Association v. DEA, 357 F.3d 1012 (9th Cir. 2004) (Hemp II). However, as the Ninth Circuit stated in Hemp II, “when Congress excluded from the definition of marijuana ‘mature stalks of such plant, fiber . . . , [and] oil or cake made from the seeds,’ it also made an exception to the exception, and included ‘resin extracted from’ the excepted parts of the plant in the definition of marijuana, despite the stalks and seed exception.” Id. at 1018. Thus, if an extract of cannabinoids were produced using extracted resin from any part of the cannabis plant (including the parts excluded from the CSA definition of marijuana), such an extract would be included in the CSA definition of marijuana.

 

Law eliminating life-without-parole drug sentences goes into effect

Law eliminating life-without-parole drug sentences goes into effect

LANSING — A Macomb County man sentenced to life in prison without parole because of a 2000 drug offense could get a reprieve with a new law that went into effect last week.

The bill eliminates the requirement that habitual drug offenders get enhanced sentences, up to life in prison without parole. Instead, prisoners would be eligible for parole after serving five years of their sentence.

That could help John Sellors, a Macomb County man convicted in 2002 of selling 51 grams of cocaine. It was his second drug offense and required the enhanced sentence. Several requests for commutation from Sellors have been denied, according to a House analysis of the bill.

He is one of three prisoners in Michigan prisons who will be eligible for parole as a result of the new law, said Corrections’ Department spokeswoman Holly Kramer.

Michigan reformed its drug sentencing laws in 1998, getting rid of some of the toughest sentencing practices in the nation. But the enhanced sentencing for second drug offenses stayed on the books.

The three-bill package passed unanimously in both the House of Representatives and Senate and were the last bills signed into law last year. They went into effect on March 28.

They were among more than 100 bills signed by Gov. Rick Snyder and Lt. Gov. Brian Calley in the final six weeks of 2017. Others included packages of bills that require municipalities to report and develop plans to deal with unfunded liabilities in pension and retiree health care funds.

Most of those bills went into effect in the first quarter of 2018 while a handful will go into effect later this year.

Law-eliminating-life-without-parole-drug-sentences-goes-into-effect.pdf

Other bills that were signed into law:

PA 168 (SB 415): Require retail gas stations to have safety measures to guard against credit card skimmers. Sponsor: Sen. Wayne Schmidt, R-Traverse City.

PA 169 (SB 107): Modify the inspection procedures for housing units and require landlords to notify tenants on when inspections are going to occur. Sponsor: Sen. Rick Jones, R-Grand Ledge.

PA 170 (SB 120): Revise the maximum length guidelines for truck trailer transporters. Sponsor: Sen. Tom Casperson, R-Escanaba.

PA 171 (SB 238): Allow lending institutions to pay referral fees of up to $500 to refer potential borrowers to the institution. Sponsor: Sen. Darwin Booher, R-Evart.

PA 172 (SB 286) : Require the Michigan Department of Licensing and Regulatory Affairs to administer training for certified nurse aides. Sponsor: Sen. Hoon-Yung Hopgood, D-Taylor.

PA 173 (SB 278): Allow Michigan to join the Interstate Library Compact so that the state can enter into agreements for all services provided by libraries in bordering states. Sponsor: Sen. John Proos, R-St. Joseph.

PA 174 (SB 381): Allow warrants on charges of failing to appear in court to be served by first class mail or e-mail. Sponsor: Sen. Rick Jones, R-Grand Ledge.

PA 175 (SB 520): Create a fee for subscription services for the secured transactions that are filed with the Michigan Department of State. Sponsor: Sen. Darwin Booher, R-Evart.

PA 176-188 (SB 553-557 and 562-565) Update the laws and references to the Michigan History Center in existing statute. Sponsors: Sens. Wayne Schmidt, R-Traverse City and Mike Green, R-Mayville.

PA 189 (HB 4285): Specify that a person is not liable for unpaid property taxes unless the person owned the property when the tax was due. Sponsor: Rep. Peter Lucido, R-Shelby Township.

PA 190 (SB 509): Designate a portion of M-52 in Ingham County as the Deputy Grant Whitaker Memorial Highway. The Ingham County sheriff’s deputy was killed in 2017 when his vehicle crashed during a pursuit of a suspect. Sponsor: Sen. Curtis Hertel, D-East Lansing.

PA 191 (HB 4065): Allow individuals with prior felony convictions to pursue a job with the Michigan Department of Corrections. Sponsor: Dave Pagel, R-Berrien Springs.

PA 192 (HB 4208): Amend election law to ensure that a member of the House of Representatives or Senate who resigns or is removed from office can seek election to finish that term of office. Sponsor: Rep. Aaron Miller, R-Sturgis.

PA 193 (HB 4716): Allows for the termination of parental rights for a parent who knowingly performs female genital mutilation on a child or transports the child for the procedure. Sponsor: Rep. Peter Lucido, R-Shelby Township.

PA 194-195 (HB 4355 and SB 275): Prohibit law enforcement officers from having sex with prostitutes while they’re conducting undercover investigations. Sponsors: Rep. Gary Glenn, R-Williams Township, Sen. Judy Emmons, R-Sheridan.

PA 196 (SB 342): Modify the language requirements that need to be included in a deed to transfer a parcel of land. Sponsor: Sen. John Proos, R-St. Joseph.

PA 197 (SB 385): Remove the regulations that restrict collection agencies from hiring attorneys and sharing office space. Sponsor: Sen. Jim Stamas, R-Midland.

PA 198 (SB 524): Require fingerprinting and background checks for all applicants to law enforcement academies. Sponsor: Sen. Rick Jones, R-Grand Ledge.

PA 199 (SB 552): Extend the current fee structure for off road vehicle licenses and trail permit fees. Sponsor: Sen. Goeff Hansen, R-Hart.

PA 200 (HB 4802): Create a process for couples who asked probate judges to keep their marriage licenses private to have those licenses unsealed. Sponsor: Rep. Triston Cole, R-Mancelona.

PA 201 (HB 4320): Provide a supplemental budget appropriation of $23.2 million to deal with water contaminated with PFAS or per- and polyfluoroalkyl substances. Sponsor: Rep. Laura Cox, R-Livonia.

PA 202-214 (SB 686, 688 and 691-699 and HB 5301, 5304, 5306, 5308, 5310 and 5313): Address unfunded health care and pension liabilities in local governments by requiring more frequent and detailed reporting to the state of retiree benefit plans in cities, townships, villages and counties. Sponsors: Sens. Jim Stamas, R-Midland, Dave Hildenbrand, R-Lowell, Phil Pavlov, R-St. Clair, Mike Shirkey, R-Clarklake and Reps. Gary Glenn, R-Williams Township, Kathy Crawford, R-Novi, Eric Leutheuser, R-Hillsdale, Gary Howell, R-North Branch, James Lower, R-Cedar Lake, Rob VerHeulen, R-Walker.

PA 215 (HB 4976): Create a framework for alternative dispute resolution that taxpayers or the Department of Treasury may initiate to avoid more costly litigation. Sponsor: Rep. Jim Tedder, R-Clarkston.

PA 216 (HB 4502): Exempt self-insured workers’ compensation groups from the Corporate Income Tax. Sponsor: Rep. James Lower, R-Cedar Lake.

PA 217 (HB 4420): Allow for the extension of the completion date for brownfield development projects that are getting tax credits. Sponsor: Rep. Jim Tedder, R-Clarkston.

PA 218-221 (HB 5165, 5173 and SB 566-567): Provide use and sales tax exemptions for the sale of dental prosthetics. Sponsors: Reps. Bronna Kahle, R-Adrian, Julie Alexander, R-Hanover and Sen. Dale Zorn, R-Ida.

PA 222-223 (SB 631 and 673): Modify the configuration of a nonprofit dental care corporation’s board of directors and billing and payment requirements. Sponsors: Sens. Mike Shirkey, R-Clarklake and Joe Hune, R-Gregory.

PA 224 (SB 649): Allow the Michigan Department of Health and Human Services to begin three pilot programs to integrate physical and behavioral health services. Sponsor: Sen. Mike Shirkey, R-Clarklake.

PA 225-232 (HB 5165-5172): Change the way the Unemployment Insurance Agency flags and treats suspected cases of fraud to ensure there is no repeat of a scandal in which thousands of unemployment benefit recipients were wrongly accused of getting benefits fraudulently. fraudulent. Sponsors: Reps. Joe Graves, R-Linden, Kevin Hertel, D-St. Clair Shores, Wendell Byrd, D-Detroit, Diana Farrington, R-Utica, Beau LaFave, R-Iron Mountain, Joe Bellino, R-Monroe, Martin Howrylak, R-Troy.

PA 233 (HB 4054): Allow school buses to be equipped with additional flashing signs. Sponsor: Rep. Holly Huges, R-White River Township.

PA 234 (HB 4907): Allow commercial vehicles to purchase fundraising license plates. Sponsor: Rep. Roger Victory, R-Hudsonville.

PA 235 (SB 630): Change the minor in possession first offense from a misdemeanor to a civil infraction. Sponsor: Sen. Rick Jones, R-Grand Ledge.

PA 236 (SB 478): Lower the number of unpaid parking tickets from six to three that a driver can accrue before having their driver’s license held when they go to renew it. Sponsor: Sen. David Hildenbrand. R-Lowell.

PA 237 (SB 480): Designate a portion of I-96 as the Mitchel A. Kiefer Foundation for Distracted Driver Awareness Highway. Kiefer was killed in a car accident caused by a distracted driver in 2016. Sponsor: Sen. Mike Kowall, R-White Lake.

PA 238 (SB 575): Delay the implementation date for fee increases on motorcycle endorsements and registration fees until Feb. 19, 2019. Sponsor: Sen. Tom Casperson, R-Escanaba.

PA 239 (HB 4207): Expand the definition property eligible for community revitalization incentives to include grocery stores. Sponsor: Rep. Andy Schor, D-Lansing.

PA 240 (HB 4807): Codify Michigan State Police oversight of rates, fares, charges and tariffs on carriers of water between states. Sponsor: Rep. Dan Lauwers, R-Brockway.

PA 241 (SB 44): Add several crimes to the list from which a court may order a defendant to reimburse law enforcement costs. Sponsor: Sen. Goeff Hansen, R-Hart.

PA 242 (SB 375): Expand the list of energy projects eligible for special financing. Sponsor: Sen. Darwin Booher, R-Evart.

PA 243-245 (SB 483, 485-486): Amend the rules associated with employing junior hockey players. Sponsor: Sens. Ken Horn, R-Frankenmuth, Jim Stamas, R-Midland, Jim Ananich, R-Flint.

PA 248-255 (SB 47, 166-167, 270, 273-274 and HB 4403, 4406-4408): Require prescribers to check a patient’s prescription history before providing controlled substances to the patient. Sponsors: Sens. Tonya Schuitmaker, R-Lawton, Steve Bieda, D-Warren, Rick Jones, R-Grad Ledge, Marty Knollenberg, R-Troy, Dale Zorn, R-Ida and Reps. Joseph Bellino, R-Monroe, Andy Schor, D-Lansing, Beth Griffin, R-Paw Paw.

PA 256-259 (SB 180-183): Update licensing provisions for child care facilities to meet new federal standards. Sponsors: Sens. Tonya Schuitmaker, R-Lawton, Dave Hildenbrand, R-Lowell, Hoon-Yung Hopgood, D-Taylor.

PA 260 (HB 5126): Clarify that restraint and seclusion policies in public schools do not apply to law enforcement. Sponsor: Rep. Daniela Garcia, R-Holland.

PA 261-264 (SB 570-573): Provide deadline flexibility for companies applying for and receiving personal property tax exemptions. Sponsors: Sens. Dave Hildenbrand, R-Lowell, Jack Brandenburg, R-Harrison Township, Dave Robertson, R-Grand Blanc, John Proos, R-St. Joseph.

PA 265-267 (SB 72-73 and 220): Update parole eligibility requirements related to habitual drug offenses by eliminating outdated life-without-parole sentences for non-violent offenses. Sponsor: Sen. Steve Bieda, D-Warren.

For more information, go to www.legislature.mi.gov.

Contact Kathleen Gray: kgray99@freepress.com or on Twitter @michpoligal

P.S.

Thank You Kathleen for Just the Facts…

If you or someone you know is facing charges as a result of Medical Marijuana recommended to you as a medical marijuana patient under the Michigan Medical Marijuana Act, contact Komorn Law and ensure your rights are protected.  Michael Komorn is recognized as a leading expert on the Michigan Medical Marihuana Act. He is the President of the Michigan Medical Marijuana Association (MMMA), a nonprofit patient advocacy group which advocates for the rights of medical marijuana patients and their caregivers.

 

Contact us for a free no-obligation case evaluation at 800-656-3557.

 

LARA BMMR MMFLA All Forms, Bulletins, letters, board meetings, regulations and FAQs.

LARA BMMR MMFLA All Forms, Bulletins, letters, board meetings, regulations and FAQs.

Michael Komorn is the leading expert attorney dedicated to the Michigan Medical Marihuana Facilities Licensing Act, the Michigan Medical Marihuana Act and the Marijuana Tracking Act.

Call Komorn Law PLLC today if you are interested in working in or with the Michigan medical marijuana business industry. We offer expert planning and advice  for all MMFLA applicants, employees and related services including Certified Public Accountants and financial institutions.

Combined with Komorn Law PLLC’s expert criminal defense services, we can help you maximize profits, minimize risk and liabilities and ensure that you are in compliance with all of the laws, rules and regulations.

MMFLA Applications

Please note that these laws, rules and regulation forms change and are updated regularly. Always get the latest forms directly from LARA at http://www.michigan.gov/bmmr

Administrative Rule 72 says that before a marijuana plant is sold or transferred, a package tag must be affixed to the plant or plant container and enclosed with a tamper proof seal that includes all of the following information:

• Business or trade name, licensee number, and the RFID package tag assigned by the statewide monitoring system that is visible.
• Name of the strain.
• Date of harvest, if applicable.
• Seed strain, if applicable.
• Universal symbol, if applicable.
Administrative Rule 73 says before a marijuana product is sold or transferred to or by a provisioning center, the container, bag, or product holding the marijuana product must have a label and be sealed with all of the following information:
• The name of the licensee and the license number of the producer, including business or trade name, and tag or source number as assigned by the statewide monitoring system.
• The name of the licensee and the license number including business or trade name of licensee that packaged the product, if different from the processor of the marijuana product.
• The unique identification number for the package or the harvest, if applicable.
• Date of harvest, if applicable.
• Name of strain, if applicable.
• Net weight in United States customary and metric units.

• Concentration of THC and cannabidiol (CBD).
• Activation time expressed in words or through a pictogram.
• Name of the safety compliance facility that performed any test, any associated test batch number, and any test analysis date.
• The universal symbol for marijuana product published on the department’s
website.
• A warning that states all the following: “For use by registered qualifying patients
only. Keep out of reach of children. It is illegal to drive a motor vehicle while
under the influence of marijuana. National Poison Control Center 1-800-222-1222.
Licensees may continue to use any remaining versions of the previous Universal Symbol until they are completely used up.

Licensees are also permitted to choose which Universal Symbol version to use on a marijuana product until any remaining
versions of the previous Universal Symbol until they are completely used up.

  • The educational session (video above) will include presentations on the following topics:
  • BMMR Educational Session Power Point Presentation (PDF)
  • Keith Lambert, the Director of the Bureau of Construction Codes, will discuss important items to know – and specific steps to follow – when designing and constructing medical marihuana facilities. (missing)
  • Greg Kozak, an on-site Industrial Hygiene Consultant with Michigan Occupational Safety and Health (MIOSHA), will present an overview of the MIOSHA standards and regulations potentially impacting the medical cannabis industry in Michigan.
  • Kevin Sehlmeyer, State Fire Marshal, and Brian William, Plan Review Specialist, will provide an overview of National Fire Protection Association standards.
  • Brandi Branson-Boone, a departmental analyst in the Business Taxes Division of the Michigan Department of Treasury, will be assisting with navigation of the Michigan Treasury Online (MTO) – Treasury’s web services portal.
Medical Marihuana Licensing Board meeting schedule 2018 LARA  02-07-18
Medical Marihuana Licensing Board meeting schedule 2018 UPDATED LARA  06-10-18
BMMR Advisory Bulletin Municipal Authorization LARA  10-26-17
BMMR Advisory Bulletin Caregiver Transition LARA  11-17-17
BMMR Advisory Bulletin Co-Location LARA  09-21-17
BMMR Advisory Bulletin Fees LARA  11-17-17
BMMR Advisory Bulletin Stacking Licenses LARA  09-28-17
BMMR Advisory Bulletin Testing LARA  10-05-17
BMMR Advisory Temporary Operation LARA  11-02-17
BMMR Advisory Bulletin Application Process LARA  10-12-17
BMMR Advisory Bulletin Capitalization LARA  11-07-17
BMMR Technical Bulletin Safety Compliance Facilities – Testing LARA  12-28-17
BMMR Technical Bulletin Safety Compliance Facilities Testing UPDATE LARA  03-14-18
Advisory Bulletin Update and Sample Collection LARA  01-29-18
ADVISORY BULLETIN CPA Attestation LARA  02-02-18
BMMR Technical Bulletin Approved Pesticides LARA  02-07-18
BMMR Advisory Bulletin Universal Symbol LARA  02-15-18
Advisory Bulletin Regulatory Assessment Fees 2018 LARA  03-21-18
Bulletin Provisioning Center pre-licensure inspection reminders LARA  03-22-18
Bulletin Secure Transporter Pre-licensure inspection reminders LARA  03-22-18
Bulletin Grower Pre-licensure inspection reminders LARA  03-22-18
Bulletin General Pre-licensure inspection reminders LARA  03-22-18
Bulletin Safety Compliance Facilities Pre-licensure inspection reminders LARA  03-22-18
Bulletin Processor Pre-licensure inspection reminders LARA  03-22-18
ADVISORY BULLETIN Criminal History Disclosure LARA  04-02-18
Technical Bulletin Banned pesticides LARA  04-09-18
Technical Bulletin Approved pesticides UPDATE LARA  04-10-18
Advisory Bulletin Processor Gas Detection Fire code LARA  04-10-18
Advisory Bulletin Grower Gas Detection System and Fumigation rules LARA  04-18-18
Advisory Bulletin Application Process LARA  05-03-18
Advisory Bulletin Cannabidiol (“CBD”) and Industrial Hemp (“Hemp”) Products *UPDATED* 5-18-18 LARA  05-11-18
Technical Bulletin Department Banned Pesticide Active Ingredient List 
Technical Bulletin SCF Testing Requirements Update 
LARA  05-25-18
Advisory Bulletin Medical Marijuana Patient Card List LARA  06-01-18
Advisory Bulletin Don’t use the word “Dispensary” LARA  06-10-18
Advisory Bulletin Processor Reminders LARA  07-02-18
Advisory Bulletin Don’t Lick the Marijuana LARA  07-05-18
Advisory Bulletin THCA Diamonds and Crystals LARA  08-10-18
SAFETY COMPLIANCE FACILITY
INFORMATION
LARA  08-15-18
Processor Inspection Guide 
Secure Transporter Inspection Guide 
Provisioning Center Inspection Guide 
Grower Inspection Guide 
Safety Compliance Facility Inspection Guide 
LARA  5-18-18
BMMR Statement of Money Lender New 2-18 LARA  02-02-18
OUTDATED MMFLA Paper Application LARA  Dec 2017
UPDATED MMFLA Paper Application LARA  04-24-18
MMFLA Document Checklist LARA
MMFLA Application Instruction Book LARA  Dec 2017
Medical Marihuana Facility Licensing Act 

333.27101

Legislature  01-10-18
MMFLA HB5144 AMENDMENTS Legislature
Marijuana Tracking Act Legislature  01-10-18
MMFLA FAQs 09-29-2017 LARA  09-29-17
MMFLA FAQs index LARA  01-26-18
MMFLA FAQs 10-24-2017 LARA  10-24-17
Snyder Marihuana Advisory Panel Gov Rick Snyder  01-26-18
MMFLA Emergency Rules LARA  12-01-17
MMFLA Emergency Rules UPDATED LARA  05-30-18
Revenue Administrative Bulletin 2018-2 MI Department of Treasury  01-18-18
RECINDED Office of Credit Unions Letter 2017-CU-03 RECINDED MI Department of Insurance and Financial Services Office of Credit Unions  12-19-17
Office of Credit Unions Letter Financial Services and Michigan Medical Marihuana 2018-CU-02 MI Department of Insurance and Financial Services Office of Credit Unions  3-12-18
Guidance for providing CPA services to the medical marihuana industry LARA and MI Board of Accountancy  05-19-17
Michigan Medical Marihuana Act Legislature  01-10-18
MMMA Aministrative rules LARA
Controlled Substances Benchbook Michigan Judicial Institute  2017
BMMR METRC API Confidentiality Agreement LARA
BMMR METRC Training LARA / METRC
BMMR Facilities Licensing, Tracking & Regulatory Responsibilities LARA
BMMR Bureau of Construction Codes Medical Marihuana Regulation LARA
BMMR Accela Online Application Demo LARA
BMMR Educational MMFLA MIOSHA , Fire Codes, Building Codes, MMFLA ONLINE Tax information LARA  03-26-18
NFPA 1 Fire Code – Chapter 38 Marijuana Growing, Processing, or Extraction Facilities NFPA Presentation  2018

 

MMFLA Licensing Board meeting 4-19-2018

Michigan Medical Marihuana Facilities Licensing Board Meeting 5-3-2018

Michigan MEDICAL MARIHUANA LICENSING BOARD Meeting 5 31 2018

Michigan Medical Marijuana Licensing Board Meeting 7 12 2018
Michigan Medical Marihuana Licensing Board Meeting 8-9-2018
Michigan Medical Marihuana Licensing Board Meeting 9-10-2018
Michigan Medical Marihuana Licensing Board Meeting 10-18-2018

MMLB Medical Marihuana Licensing Board Meeting 10-29-2018 part 1

MMLB Medical Marihuana Licensing Board Meeting 10-29-2018 part 2

Michigan Medical Marihuana Licensing Board Meeting 11-08-2018

 

Michigan Medical Marihuana Licensing Board Meeting 12-07-2018

 

 

Michigan Medical MJ Facility Licensing Board Meeting December 21, 2018

LARA LIVE, BMMR video chat with BMMR Director Andrew Brisbo on CBD oil and Industrial Hemp or Medical Marijuana.

Medical Marihuana Licensing Board Minutes

December 21, 2018 – Unapproved

December 7, 2018

November 8, 2018

October 29, 2018

October 18, 2018

October 29, 2018 – Unapproved

October 18, 2018 – Unapproved

September 10, 2018

August 9, 2018

July 12, 2018

May 31, 2018

May 3, 2018

April 19, 2018

March 22, 2018

January 19, 2018

November 28, 2017

October 17, 2017

September 12, 2017

August 21, 2017

June 26, 2017

 

 

Also look for all MMMA reports here:

MMMA all government statistics, reports, grants and analysis

Why Marijuana Assets May Not Be Administered in Bankruptcy

Why Marijuana Assets May Not Be Administered in Bankruptcy

Marijuana continues to be regulated by Congress as a dangerous drug, and as the Supreme Court has recognized, the federal prohibition of marijuana takes precedence over state laws to the contrary.

The primacy of federal law over state law is hardly a novel proposition and has been the rule since the ratification of the Constitution. Thus, whenever a marijuana business files for bankruptcy relief, a threshold question is whether the debtor can be granted relief consistent with the Bankruptcy Code and other federal law. If the answer to that question is no, the United States Trustee Program (USTP), in its role as the watchdog of the bankruptcy system, will move to dismiss.

Illegal enterprises simply do not come through the doors of the bankruptcy courthouse seeking help to further their criminal activities. To obtain bankruptcy relief, some may try to hide the nature of their business or income, but bankruptcy courts require full financial disclosure and are not a hospitable forum for continuing a fraudulent or criminal scheme.

Marijuana businesses are a unique and unprecedented exception to this rule because they often involve companies that openly propose to continue their illegal activity during and after the bankruptcy. Those cases present a challenge to the bankruptcy system because they generally involve assets that are illegal even to possess. In contrast to other types of cases involving illegal businesses, in which the criminal activity has already terminated and the principal concern of the bankruptcy court is to resolve competing claims by victims for compensation, a marijuana bankruptcy case may involve a company that not only is continuing in its business, but is even seeking the affirmative assistance of the bankruptcy court in order to reorganize its balance sheet and thereby facilitate its violations of the law going forward.

The USTP’s response to marijuana-related bankruptcy filings is guided by two straightforward and uncontroversial principles. First, the bankruptcy system may not be used as an instrument in the ongoing commission of a crime and reorganization plans that permit or require continued illegal activity may not be confirmed. Second, bankruptcy trustees and other estate fiduciaries should not be required to administer assets if doing so would cause them to violate federal criminal law.

The USTP’s policy of seeking dismissal of marijuana bankruptcy cases that cannot lawfully be administered is not a new one, but rather it is a policy that has been applied consistently over two presidential administrations and under three Attorneys General. Nor are these concerns unique to marijuana. These same principles would also guide the USTP’s response in a case involving any other type of ongoing criminal conduct or administration of illegal property.

Although a recent ABI Journal article2 takes the USTP to task for its marijuana enforcement efforts, it is noteworthy that the author fully agrees with the USTP’s position as to the first of the two principles described above and appears to agree to a significant extent with the second. As the author concedes, “it hardly needs explanation that a bankruptcy court should not supervise an ongoing criminal enterprise regardless of its status under state law.”3 As to the second principle, “[i]t would obviously violate federal law for the trustee to sell marijuana.”

Given these concessions, the author’s disagreement with the USTP’s position would appear to be limited to a fairly narrow range of cases – those where administration of the estate would not require the trustee to sell marijuana (but would require the trustee to administer other marijuana-derived property), or where the debtor is a “downstream” participant in a marijuana business, such as a lessor of a building used for a marijuana dispensary.

Yet under the CSA, there is no distinction between the seller or the grower of marijuana and the supposedly more “downstream” participants whom the article proposes to protect: all are in violation of federal criminal law. In particular,

section 856 of the CSA specifically prohibits knowingly renting, managing, or using property “for the purpose of manufacturing, distributing, or using any controlled substance;” section 863 of the CSA makes it a crime to sell or offer for sale any drug paraphernalia – which is defined to include, among other things, “equipment, product, or material of any kind which is primarily intended or designed for use” in manufacturing a controlled substance; and section 855 provides for a fine against a person “who derives profits or proceeds from an offense [of the CSA].”

Thus, not only would a trustee who offers marijuana for sale violate the law but so, too, would a trustee who liquidated the fertilizer or equipment used to grow marijuana, who collected rent from a marijuana business tenant, or who sought to collect the profits of a marijuana investment.

Although cases involving illicit proceeds of Ponzi schemes and other criminal activities – seen in such notorious cases as Enron, Dreier LLP, and Madoff – are administered in bankruptcy, they deal with the aftermath of fraud, usually after individual wrongdoers had been removed from the business.

Such cases are wholly inapposite analogies to a marijuana case where the illegal activity is still continuing through the bankruptcy administration process and where bankruptcy relief may allow the company to expand its violations of law in the future. Nor do any of those cases involve proposed chapter 11 and 13 plans where the feasibility of the plan itself is directly premised on the continued receipt of profits from an illegal enterprise. And none of them requires the courts or trustees to deal with property of the kind described in the CSA, for which mere possession is a federal crime.

Similarly, although the author cites two decades-old decisions in support of his claim that “courts have not always shied away from handling marijuana-related bankruptcies,”7 it is noteworthy that neither of those decisions involved active marijuana operations or would have required a bankruptcy trustee to administer any illegal marijuana assets.8 Both Chapman and Kurth Ranch involved bankruptcy cases that were filed after law enforcement had arrested and seized the assets of marijuana growers. The legal issues raised by the current wave of marijuana filings were simply not present in those cases – neither case involved an ongoing violation of law, and in neither case were there any marijuana assets to be administered, because all illegal assets had been seized and disposed of prepetition.

Finally, the article suggests that the “ongoing conflict over marijuana policy” is one that should take place outside the bankruptcy system. The USTP agrees. But that does not mean that the USTP or the courts should turn a blind eye to bankruptcy filings by marijuana businesses. Rather than make its own marijuana policy, the USTP will continue to enforce the legislative judgment of Congress by preventing the bankruptcy system from being used for purposes that Congress has determined are illegal.

Written by:
Clifford J. White III
Director, Executive Office for U.S. Trustees Washington, DC

John Sheahan
Trial Attorney, Executive Office for U.S. Trustees Washington, DC

 

PDF Link

WILSON V. LYNCH

WILSON V. LYNCH

S. ROWAN WILSON,
Plaintiff-Appellant,
v.
LORETTA E. LYNCH, Attorney General; BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES; B. TODD JONES, as Acting Director of U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; ARTHUR HERBERT, as Assistant Director of U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and UNITED STATES OF AMERICA, Defendants-Appellees

 

Appeal from the United States District Court
for the District of Nevada
Gloria M. Navarro, Chief District Judge, Presiding
Argued and Submitted July 21, 2016
San Francisco, California

Summary

The panel affirmed the district court’s dismissal of a
complaint challenging the federal statutes, regulations, and
guidance that prevented plaintiff from buying a gun because
she possesses a Nevada medical marijuana registry card…

Read the Full Opinion Here