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5/12/18 “LEGAL MARIJUANA” Can Lawyers Be Part of a Budding Industry? ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Marijuana Legalization Status ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 1 5/12/18 Cannabis CannaBis has now Been legalized for medicinal use in 29 states and the District of ColumBia. It is also legal for recreational use in eight of these states and the District of ColumBia. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF CONTROLLED SUBSTANCES ACT ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 2 5/12/18 Controlled Substances Act The Controlled Substances Act is Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 USC section 801 et seq). • Consolidated laws regarding manufacture, and distribution of narcotics, stimulants, depressants, hallucinogens, anabolic steroids and chemicals used in the illicit production of controlled substances. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Controlled Substances Act • Restricted access to controlled substances. • Identification and Classification of Controlled Substances. – CSA places all regulated substances into one of five schedules based on: • Substances medical value • Harmfulness • Potential for abuse and addiction – Schedule V least dangerous-Schedule I most dangerous. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 3 5/12/18 Drug Schedules –Schedule I (1) Schedule I.— (A) The drug or other substance has a high potential for abuse. (B) The drug or other substance has no currently accepted medical use in treatment in the United States. (C) There is a lack of accepted safety for use of the drug or other substance under medical supervision. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Drug Schedule-Schedule II (2) Schedule II.— (A) The drug or other substance has a high potential for abuse. (B) The drug or other substance has a currently accepted medical use in treatment in the United States or a currently accepted medical use with severe restrictions. (C) Abuse of the drug or other substances may lead to severe psychological or physical dependence. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 4 5/12/18 Forfeiture 720 ILCS 646/85 (a) The following are subject to forfeiture: All real property (including, but not limited to, any leasehold interest or the beneficial interest in any land trust) in the whole of any tract of land or appurtenances or improvements which is used, or intended to be used, or intended to be used, in any manner to facilitate the commission of, any violation or act that constitutes a violation of this Act, or is the proceeds of any violation or act that constitutes a violation of this Act. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Seize the Guilty Property CIVIL FORFEITURE ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 5 5/12/18 Civil Forfeiture ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Forfeitures The following shall be subject to forfeiture of the United States and no property shall exist in the…All real property, including any right, title and interest (including any leasehold interest) in the whole or any tract of land and any appurtenances or improvements, which is used, or interest to be used, in any manner or part, to commit, or to facilitate the commission of, a violation ..punishable by more than one year’s imprisonment. 21 USC section 881 ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 6 5/12/18 Illinois Forfeiture Reform HB 00300-Creates the Seizures and Forfeiture Reporting Act. Statutes amended include: 725 ILCS 150/1 Drug Asset Forfeiture Act ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Asset Forfeiture Act as Amended • Adds Section 3.1 (a) Actual physical seizure of real property subJect to forfeiture..requires the issuance of a seizure warrant. Constructive seizure can be done through filing a complaint for forfeiture in the Circuit Court and recording a notice of lis pendens (can be done without a warrant) ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 7 5/12/18 Asset Forfeiture Act as Amended • Adds Section 3.3 Safekeeping of seized property pending disposition (5) place the property under constructive seizure by posting a notice of pending forfeiture on it, by giving notice of pending forfeiture to its owners and interest holders, or by filing notice of pending forfeiture in any appropriate public record relating to the property. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Asset Forfeiture Act as Amended (6) provide for another agency or custodian, including an owner, secured party, or lienholder, to take custody of the property upon the terms and conditions set by the seizing agency (c) The seizing agency is required to exercise ordinary care to protect the seized property from negligent loss, damage, or destruction. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 8 5/12/18 Asset Forfeiture Act as Amended Section 9-Judicial In Rem Proceeding is amended • Complaint to be filed in the circuit court within whose jurisdiction the seizure occurred • Time period to bring forfeiture is shortened from 45 days to no more than 28 days ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Asset Forfeiture Act as Amended • State’s Attorney has the authority to consider – If violation occurred without willful negligence or intent – Can consider mitigating circumstances • Bond no longer required • Contents of complaint enumerated • Non-named interested party may intervene ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 9 5/12/18 Notice Added to Complaint "This is a civil court proceeding subject to the Code of Civil Procedure. You received this Complaint of Forfeiture because the State's Attorney's office has brought a legal action seeking forfeiture of your seized property. This complaint starts the court process where the state seeks to prove that your property should be forfeited and not returned to you. This process is also your opportunity to try to prove to a judge that you should get your property back. The complaint lists the date, time, and location of your first court date. You must appear in court on that day, or you may lose the case automatically. You must also file an appearance and answer. If you are unable to pay the appearance fee, you may qualify to have the fee waived. If there is a criminal case related to the seizure of your property, your case may be set for trial after the criminal case has been resolved. Before trial, the judge may allow discovery, where the State can ask you to respond in writing to questions and give them certain documents, and you can make similar requests of the State. The trial is your opportunity to explain what happened when your property was seized ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF Asset Forfeiture Act as Amended State’s burden of proof is differentiated- preponderance of the evidence unless defendants are found not guilty of the underlying offence(s)(Section G-5) ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 10 5/12/18 Asset Forfeiture as Amended New Provisions: 725 ILCS 150/9 (M)-exception for a Bona Fide Purchaser for value without notice (N) Joint tenant or tenant in common-court shall determine each owner’s interest 725 ILCS 150.9.1-Innocent Owner Hearing. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF HISTORY OF CANNABIS ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 2018 Joint Seminar May 17-19, 2018 CH. 2 Page 11 5/12/18 History of Cannabis in the US • Cannabis origin probably from Central Asia • 1611: Jamestown settlers brought the Cannabis Sativa L, commonly known as Hemp, to North America. • 1774-1775 George Washington grew hemp at Mount Vernon. According to his ledgers he was interested in the medical uses of Cannabis with a High THC content • .Marijuana is added to he US Pharmacopeia (official public standards-setting for all prescriptions and over the counter medications. • 1906 Food and Drug Act requires labeling of drugs including marijuana. • 1911 Massachusetts outlaws cannabis. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF History (continued) • 1930-extract of Marijuana sold as medicines. • 1931 Illinois bans Marijuana. • 1936 Reefer Madness. • 1937” Marihuana Tax Act” Federal regulation- imposed registration and reporting requirement and tax on growers. • 1942 Marijuana removed from the Pharmacopeia.
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