Posted By: BSAN3rd
SARs on CBD Clients - 12/15/20 10:21 PM
Hello all!
My question is regarding the filing of SARs on clients who sell CBD interstate; more specifically those who may be located in one state but sell CBD to a customer (and ship it) in another state wherein the sale of CBD is only allowed at specific retailers or is not allowed at all.
The laws are somewhat confusing to follow. I have been presented a legal opinion which states: "The U.S. Drug Enforcement Administration ("DEA") no longer has any possible claim to interfere with interstate commerce involving hemp or hemp products. The 2018 Farm Bill explicitly protects interstate commerce involving hemp and hemp-derived products and prohibits states and Native American tribes from interfering with the interstate transportation or shipment of hemp or hemp-derived products even those states that impose more stringer restrictions on hemp production.".
So... if we have a customer that is selling CBD across state lines to states wherein CBD is illegal or highly restricted, are they even breaking the law? Would SARs need to be filed?
Up to now, we have been filing these SARs, however internal discussions have begun to loop in legal and I am wondering if (besides them being completely worthless) they are mandatory filings for activity which is technically illegal in the state in question but apparently there's no jurisdictional authority to enforce...
Thanks for your opinions and expertise.
My question is regarding the filing of SARs on clients who sell CBD interstate; more specifically those who may be located in one state but sell CBD to a customer (and ship it) in another state wherein the sale of CBD is only allowed at specific retailers or is not allowed at all.
The laws are somewhat confusing to follow. I have been presented a legal opinion which states: "The U.S. Drug Enforcement Administration ("DEA") no longer has any possible claim to interfere with interstate commerce involving hemp or hemp products. The 2018 Farm Bill explicitly protects interstate commerce involving hemp and hemp-derived products and prohibits states and Native American tribes from interfering with the interstate transportation or shipment of hemp or hemp-derived products even those states that impose more stringer restrictions on hemp production.".
So... if we have a customer that is selling CBD across state lines to states wherein CBD is illegal or highly restricted, are they even breaking the law? Would SARs need to be filed?
Up to now, we have been filing these SARs, however internal discussions have begun to loop in legal and I am wondering if (besides them being completely worthless) they are mandatory filings for activity which is technically illegal in the state in question but apparently there's no jurisdictional authority to enforce...
Thanks for your opinions and expertise.