To our clients and friends:
On October 29, 2019, the U.S. Department of Agriculture (“USDA”) released its interim final regulation regarding the establishment of hemp production programs by States and Indian Tribes. The regulation becomes effective upon its publication in the Federal Register, which is expected to occur shortly.
The USDA regulation requires a State or Indian Tribe that wants to be the primary regulatory authority over hemp production in its State or territory to submit a plan for the monitoring and regulation of hemp production to the Secretary of the USDA for approval.
The information that a person or entity is required to submit to the State/Indian Tribe to be a licensed hemp producer (e.g., background checks, personal/corporate information, property location, crop acreage, etc.) is useful to financial institutions (banks, thrifts and credit unions) in complying with their Customer Identification Program requirements in connection with the on-boarding of these persons/businesses as customers/members.
Our Alert, which summarizes the key provisions of the USDA’s regulation, is available below.