The recent federal legalization of hemp and hemp-derived products like CBD has created both excitement and confusion among businesses, farmers, lenders, and regulators. While the prospect of entering this emerging market is enticing, it is crucial to understand exactly how to legally grow, process, sell, or bank hemp and CBD, and how to navigate the practical and regulatory complexities.

Our Hemp, CBD & Cannabis team represents clients across the spectrum of this industry. From business formation to FDA labelling compliance, crop share agreements to loan agreements, von Briesen’s multi-disciplinary team of lawyers have the experience to assist clients in successfully navigating this industry.

von Briesen attorneys can represent your hemp and CBD-related business with respect to:

• business formation
• regulatory and compliance issues
• financing
• tax
• lobbying
• product development
• employment issues

The following descriptions are from our Legal Update titled “Hemp, CBD, and Marijuana: What’s the Difference?”:

Hemp. Hemp plants and extracts from hemp have a wide range of uses including paper, textiles, food products, paint, fuel, and CBD products. Hemp became legal under federal law with the enactment of the Agriculture Improvement Act of 2018 (commonly referred to as the “Farm Bill”) which legalized hemp and hemp-derived products. The Farm Bill empowers states to regulate the production and sale of hemp products under the oversight of the U.S. Department of Agriculture. Wisconsin and all but nine states have established a hemp program. Wisconsin’s hemp program provides a regulatory framework for production and sale of hemp and hemp-derived products within the state. Current and prospective Wisconsin hemp businesses must comply with Wisconsin’s hemp program.

CBD. CBD can be extracted from hemp or marijuana plants. CBD is not psychoactive but is believed to produce a calming effect in addition to myriad other health benefits. The increasing popularity of CBD has driven businesses to produce a wide array of CBD products such as lotions, oils, pet treats, soaps, candles, dietary supplements, and CBD infused foods and beverages. The U.S. Food & Drug Administration (“FDA”) has regulatory authority over certain CBD products such as those that make therapeutic claims, or food containing CBD. CBD businesses need to track the development of relevant FDA regulations. At the state level, CBD products fall under the umbrella of Wisconsin’s hemp regulations because CBD is a hemp-derivative. Wisconsin CBD businesses must stay apprised of and comply with applicable regulations under Wisconsin’s hemp program.

Marijuana. Marijuana is psychoactive because of its THC content, and it is used for both recreational and medicinal purposes. While a growing number of states have legalized or are considering legalization of marijuana for medicinal and recreational purposes, marijuana remains illegal for all uses under federal law. Marijuana is also presently illegal in all forms in Wisconsin.

Our team is called upon to both speak and write on the myriad issues that hemp and hemp-related businesses face, some recent presentations and articles include:

• Insight magazine, “Budding Prospects”, April 2019
• “Hemp, CBD, and Marijuana: What’s the Difference?”, von Briesen Legal Update, May 2019
• Wisconsin Bankers Association “Hemp as it Happens” Seminar, July 2019
• “The Wisconsin Legislative Reference Bureau’s August Hemp Report”, von Briesen Legal Update, August 2019
• NEWaukee and NAIOP-WI Empty Storefronts Conference, “Real Estate Opportunities in the Midst of the Hemp and CBD Craze”, November 2019
• “Legal Aspects of Marijuana in the Workplace”, von Briesen Breakfast Briefings, December 2019