The third student presentation this week in the Marijuana Law and Policy seminar at The Ohio State University Moritz College of Law will cover an important (and often overlooked) component of federal marijuana prohibition and business laws. Here is how the student explained her topic along with lots of background reading:
My paper, and therefore this presentation, explores the intersection of federal marijuana policy and bankruptcy law, focusing on how cannabis businesses remain largely excluded from federal bankruptcy protection despite widespread state legalization. Although dozens of states now permit medical or recreational cannabis, marijuana’s classification as a Schedule I substance under the Controlled Substances Act continues to prevent many cannabis-related businesses from accessing relief under the United States Bankruptcy Code. The inability of cannabis businesses to access bankruptcy protection raises important questions about fairness, economic efficiency, and the proper role of federal courts in emerging industries.
Outside of the benefits to bankruptcy access and how Marijuana’s exclusion effects “cannabiz”, this presentation examines the federal government’s push to reschedule marijuana from Schedule I to Schedule III. While rescheduling would not fully legalize cannabis, it could weaken the legal rationale courts rely on to dismiss cannabis bankruptcy cases. My presentation evaluates whether rescheduling is likely to meaningfully expand bankruptcy access or whether deeper reforms will be required.
Links for Review:
“What Rescheduling Could Mean For Cannabis Bankruptcies”
“The Impacts of Cannabis Rescheduling on Bankruptcy“
“Why Marijuana Assets May Not Be Administered in Bankruptcy“
“Bankruptcy in the Cannabis Space“
“High And Dry: Evaluating Solutions To Cannabis Affiliated Business’ Inability To Obtain Bankruptcy Protections” (This article is long, so could just be useful as far as skimming/if students want to see some of the alternatives to bankruptcy.)