Category: Cannabis

  • Highly Regulated

    Highly Regulated

    Credit: Mex Chriss

    Hemp is cannabis, and it should be subject to reasonable regulations of quality, safety and youth access.

    By Rod Kight

    The hemp industry is subject to numerous regulations. Aside from hemp production, which is regulated by the U.S. Department of Agriculture (USDA) either directly or via USDA-required approval of state hemp plans, every state in the country has laws regarding hemp. Most states also regulate hemp products. Some states, such as California, Colorado and Oregon (to name a few), have very detailed hemp regulations that are much more stringent than federal regulations for their similar noncannabis product categories (i.e., foods, dietary supplements, etc.).

    Other states, including but not limited to Florida, Tennessee and Texas, have detailed but less stringent regulations. Several states regulate hemp more generally, including Alabama, Indiana, Louisiana and Washington. To be clear, I am not making value judgments about any of these states’ regulatory schemes nor am I being comprehensive. The point I am making is that hemp and hemp products are subject to regulations of some sort, often stringent regulations, on a state-by-state level.

    A hemp company that distributes products nationally, or even regionally, must deal with many compliance hurdles, including state laws that directly contradict other state’s laws, labeling requirements that are well beyond any labeling requirements under federal law, analytical testing, permitting, advertising, and age restrictions. Additionally, more and more states are imposing hemp-specific taxes. On top of this web of sometimes conflicting regulations, law enforcement is often behind the curve, and lawful hemp operators constantly live in fear of an unfounded, but stressful and expensive, raid of their businesses.

    Additionally, the claim that hemp is “merely” regulated at the state level undercuts all the arguments regarding regulation promulgated by the marijuana industry since marijuana is federally illegal and is thus solely regulated by the states. This is particularly true since at the federal level, the U.S. Food and Drug Administration, the USDA and the Federal Trade Commission (not to mention the Drug Enforcement Administration) have all flexed their regulatory muscles at the hemp industry during its decade-long evolution. In short, the claim that the hemp industry is “unregulated” is simply false. Most of my time is spent advising clients on how to stay compliant with the patchwork of state and federal regulations governing the hemp industry.

    Rod Kight

    The hemp industry desires reasonable federal regulations

    The hemp industry is often portrayed as populated by greedy “cowboys” who despise regulation and will do anything they can to sell contaminated bathtub gin products to unassuming consumers and to minors. In the popular trope, the hemp industry abhors and shuns regulations. This view is entirely unfounded. In nearly a decade of representing hemp companies, I have been fortunate to represent many of the largest and most well-known ones in the world. I have also enjoyed representing hundreds of small, mostly unknown hemp companies founded and operated by regular people who are following their dream of owning a business and expanding cannabis access to their fellow Americans.

    Additionally, I have been privileged to represent and interact with many hemp associations and attorneys who represent hemp companies throughout the U.S. The common denominator of all of these people and companies is a desire to be subject to a single set of reasonable regulations. I am not aware of a single client of mine, or any other hemp executive, who does not agree with the statement, “The hemp industry should be subject to reasonable regulations regarding safety and access by minors.” Sure, cowboys exist in every industry, including the marijuana industry, but in the legitimate hemp industry, everyone is like-minded on this point.

    What are “reasonable regulations”? First, and just like any other consumer packaged goods (CPG) industry, the hemp CPG sector should be subject to regulations regarding the quality and purity of its products. Moreover, marketing and labeling of hemp products should be uniform and provide the consumer with sufficient information about a product to make an informed decision about whether to purchase it and how to consume it. These types of regulations already exist for foods, dietary supplements and “vice” products, such as alcohol and tobacco. The hemp industry wants to be treated the same way with respect to quality control and marketing—no more, no less.

    Second, access to hemp products by minors should be restricted. There is a lot of focus on “intoxicating” versus “nonintoxicating” products, however, classifying hemp products based on the potential for intoxication is a fool’s errand. Rather, all hemp products, with perhaps the exception of CBD isolate topicals, should be subject to age-gating, with the proviso that a minor’s parent or guardian can purchase a hemp product for the minor’s use and also provide authorization to third parties regarding its use by the minor.

    I recognize that this proposal will annoy many people, but it is simple and avoids messy distinctions that are difficult to articulate and mostly unfounded in science, tricky regulations and an overall regulatory structure that will be resource intensive and, frankly, unnecessary. Distributors should be required to age-gate, but minors who need hemp cannabinoids should be able to access them with parental/guardian consent. I will also say that there are other ways to restrict access by minors and that my proposal is up for negotiation. Remember, however, that the point of this article is not to propose a detailed regulatory regime. Rather, it is to make it clear that the hemp industry agrees with age-gating and regulations regarding safety and quality.

    A short note about convenience stores

    Finally, I’d like to make a side comment about the sale of hemp products in convenience stores. I frequently hear the claim that “hemp products are sold in convenience stores” used as an argument about how bad and unregulated the hemp industry is. This is a red herring. Of all the possible distribution outlets for hemp products, convenience stores are among the best. Convenience stores have for decades been selling highly regulated products, such as alcohol and tobacco, that are subject to strict age-gating.

    To be clear, I am in favor of all sorts of properly regulated distribution outlets for hemp products, from e-commerce sites to boutique hemp wellness centers. However, to claim that the hemp industry is somehow bad and unregulated because its products are sold at convenience stores, which are highly regulated and frequently subject to agency audits, licenses, high fines and even criminal action if certain products are sold to minors, is ridiculous. The “convenience store” argument against hemp should die because it is totally unfounded.

    Conclusion

    The hemp industry has been the subject of a smear campaign based on unfounded allegations that it is unregulated and that it opposes regulations. Both claims are untrue. The hemp industry is highly regulated by both federal and state laws. Additionally, the hemp industry favors reasonable regulations regarding product safety, consumer safety and access by minors. Reasonable people can differ on how these types of regulations should be written, but they are necessary and welcomed by the hemp industry.

    Finally, the particular distribution outlet for hemp products is immaterial provided that hemp products are properly and uniformly regulated for quality and safety and that access by minors is restricted. To claim that an industry is unregulated and illegitimate because its products are sold at convenience stores, which happen to be some of the most regulated distribution outlets in the U.S., is a ridiculous argument that needs to be put to rest.

    Hemp is cannabis, and cannabis should be subject to reasonable regulations regarding quality, safety and access by minors so that all consenting adults can have the access they need and that all Americans who desire to operate a legally compliant hemp business can take part in the burgeoning cannabis industry.

    Rod Kight is an international cannabis lawyer. He represents businesses throughout the cannabis industry.

  • Cannabis And Nicotine Vape Markets Diverging

    Cannabis And Nicotine Vape Markets Diverging

    Photo: Seth Michael

    The cannabis vaping and tobacco vaping industries in the U.S. are on contrasting paths, largely shaped by regulatory dynamics, according to an article published by Bloomberg. While tobacco vaping faces increased restrictions on nicotine levels, flavored products and youth usage, the cannabis vape sector benefits from limited regulation, making it a significant player in the marijuana market.

    The U.S. Food and Drug Administration’s ban on flavored vape products in particular has been detrimental to the nicotine vape sector, impacting prominent brands like Vuse Alto, which was recently the subject of an  FDA marketing denial order.

    In comparison, cannabis vapes are growing rapidly, with an estimated $6.8 billion in sales for the year. These numbers might underestimate the market due to the influence of illicit cannabis sales, which are hard to track. However, as cannabis legalization progresses state by state, questions arise about when this sector might face more regulations.

    Some suppliers to the nicotine vape business see substantial potential in the cannabis sector, as the U.S. vape parts market alone is estimated to be a $700 million opportunity. Meanwhile, the rise of disposable vapes also poses a challenge, as concerns about waste and youth appeal lead to potential regulatory hurdles.

  • Chill Brands to Sell CBD Vapes in WH Smith Stores

    Chill Brands to Sell CBD Vapes in WH Smith Stores

    Credit: William

    Chill Brands said it will sell its nicotine-free CBD vapor products in U.K.-based WH Smith stores.

    The cannabidiol-products company on Monday said a range will be for sale in an initial 150 of WH Smith’s 1,700 stores, according to a press release.

    “These first outlets are WH Smith U.K. travel stores located in airports, train stations and other high-traffic hubs including Heathrow, Gatwick and Kings Cross Station. These areas benefit from an estimated combined daily footfall of more than 500,000 passengers per day,” it said.

    Further to the agreement, it has now secured initial orders worth more than 350,000 Pounds ($428,365) from U.K. retailers, it added.

    Chill Brands said that it continues to work to expand its retail distribution network in the U.K. and the U.S.

  • Legal Insight

    Legal Insight

    Credit: Federico Magonio

    By Jean Gonnell, Christina Sava and Nicholas Ramos (Troutman Pepper Hamilton Sanders Tobacco and Cannabis Team)

    Across the United States hemp products seem to be everywhere. From corner stores to spas, one can find a hemp- or CBD-infused version of almost anything. Hemp and its derivatives are found in foods, cosmetics, hand-rolled cigarettes and vape pens. A new category of “intoxicating hemp products,” such as delta-8 THC products, have taken the hemp industry by storm. Although the market is vast, the regulatory landscape contains many pitfalls. Potential market entrants must carefully research the applicable laws, and take into account any federal-level risks, before deciding to invest in a hemp or hemp-derived products venture. This article reviews the legal status of hemp-derived products, including smokable hemp products, at the state and federal levels.

    Marijuana and Hemp

    Marijuana and hemp come from the same plant: Cannabis sativa L., or “cannabis” for short. Cannabis has a long history of industrial and medicinal uses, and only a short history of prohibition, which we now see unraveling. “Hemp” is the common term for cannabis with a concentration of delta-9 tetrahydrocannabinol (“THC”) of .3% and under, while “marijuana” is used to mean cannabis with a delta-9 THC concentration over .3%.  Marijuana remains a Schedule I substance under the Controlled Substances Act (“CSA”). Hemp production, on the other hand, was legalized by the Agricultural Improvement Act of 2018, or 2018 Farm Bill. At that time, Congress removed “hemp” and “tetrahydrocannabinols in hemp” from the CSA’s definition of “marijuana.” Specifically, the 2018 Farm Bill defined “hemp” as “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3% on a dry weight basis.” 7 U.S.C. § 1639o.

    So, although they are technically the same plant, hemp and marijuana fall under completely different regulatory regimes, with a single cannabinoid – delta-9 THC – determining whether a cannabis plant or product is hemp or marijuana.

    THC, CBD, and Other Cannabinoids

    There are over 100 cannabinoids found in cannabis. Perhaps the most well-known of these are cannabidiol, or CBD, and delta-9 THC. CBD is considered non-psychoactive and generally prized for its therapeutic potential. Delta-9 THC has long been recognized as the cannabinoid that causes users to feel “high.” Since the 2018 Farm Bill, however, other psychoactive THCs, such as delta-8 and delta-10 THC, have been identified in cannabis. The “high” produced by delta-8 THC has been described as partway between THC and CBD, with relaxing body effects and a less-potent “head-high,” while delta-10 has been described as producing a more cerebral high akin to sativa strains of marijuana.

    So why the boom in delta-8 and delta-10 THC products now? They can be derived from hemp. Although found in much lower quantities in hemp than other cannabinoids, manufacturers have found ways to chemically convert hemp-derived CBD into delta-8 and delta-10 THC. Even delta-9 THC is being converted from CBD, and manufacturers are adjusting product ratios to remain within the .3% limit. The Cannabis Regulators Association has called this the “0.3% loophole” and stated: “While the threshold of 0.3% delta-9 THC (tetrahydrocannabinol) by weight is a small amount of THC in a hemp plant, when applied to hemp-derived products (e.g., chocolate bars, beverages, etc.) which can weigh significantly more, 0.3% by weight can amount to hundreds of milligrams of THC. For example, a 50-gram chocolate bar at 0.3% THC would have around 150 mg of THC (30 times the standard 5 mg THC dose established by the National Institute on Drug Abuse).”[1]

    The Drug Enforcement Administration (DEA) more or less gave the hemp-derived delta-8 industry a green light in a September 2021 letter to the Alabama Board of Pharmacy. The Board of Pharmacy inquired as to the control status of delta-8 THC under the CSA. DEA concluded that “cannabinoids extracted from the cannabis plant that have a [delta-9]-THC concentration of not more than 0.3 percent meet the definition of ‘hemp’ and thus are not controlled under the CSA.” Thus, so long as delta-8, delta-10, and other extracts are derived from a cannabis plant with less than 0.3% delta-9 THC, they constitute “hemp,” which is federally legal.

    Notably, “synthetic tetrahydrocannabinols” remain a schedule I substance under the CSA. Some argue that because delta-8 and delta-10 are produced through a form of synthesis, they are Schedule I “synthetic tetrahydrocannabinols.” Regardless of this argument’s merit, this is not the position DEA has taken thus far, and we do not see any indication that they will suddenly take this position in the near future.

    FDA Enforcement and the Future of CBD Regulation

    Nonetheless, hemp-derived CBD and THC products are still not legal to be sold as a drug, dietary supplement, or food, according to the Food and Drug Administration (FDA). To the extent a manufacturer markets its delta-8 (or CBD) products as intended to affect the structure or any function of a consumer’s body, FDA’s position is that the product is an unapproved drug. In addition, “food” (almost anything edible that is not an approved drug or lawful dietary supplement) may not contain unapproved additives. Any form of CBD and THC are not approved food additives.

    FDA has also concluded that THC and CBD products cannot be marketed as dietary supplements, because the definition of “dietary supplement” excludes active ingredients that have been approved as drugs or have been authorized for investigation as a new drug. THC and CBD are both active ingredients in at least one FDA-approved drug. Other parts of the hemp plant that do not contain THC or CBD might be available for use as dietary supplements, so long as manufacturers abide by related requirements, including notifying FDA.

    And, FDA is watching the marketplace closely and taking enforcement action where it sees fit. FDA has issued numerous warning letters to companies selling hemp-derived CBD and THC products with impermissible health or therapeutic claims; for misbranding, such as lacking adequate directions for use; and for using these cannabinoids as an unapproved additive in foods, such as gummies, chocolate, caramels, chewing gum, and peanut brittle. The agency has also published a general health warning for delta-8 products.

    Industry and regulators alike have been anticipating some kind of regulatory action by FDA, but it appears this is yet far off. In January of this year, FDA determined that it does not have the appropriate regulatory pathway to regulate CBD products and called on Congress to pass legislation creating a new pathway separate from the food, drug, or dietary supplement pathway. Despite this regulatory uncertainty, sales of CBD products in the U.S. continue and could reach as high as $20 billion by 2025.

    States and Hemp-Derived Products

    Given the lack of federal standards and delta-8 and delta-10 (and likely other THCs’) psychoactive effects, state lawmakers are taking action to regulate products containing these extracts. At least 22 states have restricted or banned the sale of delta-8 THC products, while others are in the process of reviewing the cannabinoid’s status. One common way states are doing this is by limiting the total concentration of THC a product can have, rather than mirroring federal law and limiting only delta-9 THC concentrations. In Colorado, lawmakers have passed SB23-271, which goes further and actually classifies nonintoxicating cannabinoids, potentially intoxicating cannabinoids, and intoxicating cannabinoids. Products will be regulated according to which category of cannabinoids they contain.

     In many states, a “ban” actually means that these products will only be available in licensed cannabis dispensaries where regulators can more easily track their production and sale, ensure that the products pass required contaminant testing, and prevent the products from being sold to minors. Retailers and manufacturers of hemp derived products, especially those wanting to sell nation-wide, must be diligent in tracking state by state restrictions on hemp-derived products.

    Smokable Hemp

    Smokable hemp, although it receives less attention than other forms of hemp products, is a major driver of hemp product sales. Smokable hemp is hemp flowers after they have been manicured and dried. Smokable hemp can be sold as “buds” or in pre-rolled hemp cigarettes. This hemp looks and smells a lot like traditional marijuana but is not psychoactive. While some users may feel a mild mellowing effect, most do not feel “high” after smoking hemp. This may be why smokable hemp is the only hemp product category that has experienced wholesale price increases over time.

    The legal status of smokable hemp, however, also varies from state to state. Smokable hemp is illegal for sale in a handful of states, including Idaho, Iowa, Kentucky and Massachusetts. Other states do not place any restriction on its sales.

    New York has banned hemp flower products that are “clearly labeled or advertised for the purpose of smoking or in the form of a cigarette, cigar or pre-roll.” California does not currently permit the sale of any “inhalable hemp” products, however labeled, having passed a law that prohibits the sale of such products until a tax on the products has been enacted. No such tax is yet in effect.

    ***

    Given the above, it is not safe to assume that your hemp product is legal for sale because hemp is federally legally. It is important for retailers and manufacturers to be aware of the laws that apply to the types of hemp products they are selling. Although the DEA has been hands-off since the passage of the 2018 Farm Bill, FDA oversees all foods, drugs, and dietary supplements in the U.S. and maintains that THC and CBD, even though hemp derived, may not be added to foods and dietary supplements, or marketed as drugs. FDA does not oversee inhalable substances generally, and thus has not released statements related to the legality of smokable hemp. Smokable hemp may be a good market entry point, especially for manufacturers and retailers already familiar with highly-regulated inhalable products.  

    Troutman Pepper’s Cannabis Practice provides advice on issues related to applicable state law. Cannabis remains an illegal controlled substance under federal law. Its attorneys are available to provide more information about these opportunities.


    [1] See https://www.cann-ra.org/news-events/sx2s63c2fudq9n0zmk4ekviku9747f.

  • New York Opens State Cannabis Licensing to Public

    New York Opens State Cannabis Licensing to Public

    The New York State Cannabis Control Board on Tuesday voted to open up the application process starting next month for businesses seeking to sell, grow, process and distribute marijuana for adult use.

    Companies with an existing presence in the state’s medical program include Curaleaf Holdings , RIV Capital Inc. , a unit of Scotts Miracle-Gro Co. (SMG) that owns Etain dispensaries; Acreage Holdings Inc. , Green Thumb Industries and PharmaCann, according to Morningstar.

    Although adult-use cannabis has been legal since 2021 in New York State, only social equity applicants have received licenses thus far.

    The state said that starting Oct. 4, applications will be available through the New York Business Express Platform.

    “Today marks a pivotal step toward expanding and sustaining the state’s medical program and creation of an economically viable and equitable adult-use cannabis industry in New York,” said the New York Medical Cannabis Industry Association.

  • Kight: DEA Delta-9 THCA Letter Creating Confusion

    Kight: DEA Delta-9 THCA Letter Creating Confusion

    Credit: piter2121

    The U.S. DEA says cannabis-derived delta-9 THCA does not meet the definition of hemp under the CSA.

    By Rod Kight

    The U.S. Drug Enforcement Administration (DEA) issued a letter1 on June 9, 2023, in response to a request about information regarding, among other things, tetrahydrocannabinolic acid (THCA). Note that I was only able to locate a copy of the letter on Reddit. I had to compile a series of PNG images of it into a single document. I believe, but cannot confirm, that the letter is in response to an inquiry by Vice Media Group.

    In the letter, the DEA states the following about THCA:

    “In regard to delta-9 THCA, Congress has directed that, when determining whether a substance constitutes hemp, delta-9 THC concentration is to be tested ‘using post-decarboxylation or other similarly reliable methods.’ 7 USC § 1639p(a)(2)(A)(ii)27 USC § 1639q(a)(2)(B).3 The “decarboxylation” process converts delta-9 THCA to delta09 THC. Thus, for the purposes of enforcing the hemp definition, the delta-9 THC level must account for any delta-9 THCA in a substance…. Accordingly, cannabis-derived delta-9 THCA does not meet the definition of hemp under the Controlled Substances Act because upon conversion for identification purposes as required by Congress, it is equivalent to delta-9 THC.”

    Rod Kight

    Is the DEA right?

    The answer is “it depends.” If the DEA is addressing the legal status of hemp that is in production (i.e., pre-harvest hemp), then it is correct. As I have previously discussed,4 all hemp must pass a “post-decarboxylation” test, commonly known as a “total THC” test, in order for it to be harvested. However, for hemp that is postproduction, i.e., hemp that has passed a post-decarboxylation test and been harvested, the sole legal metric for determining its legal status is its delta-9 THC levels. In other words, if we read the DEA’s letter to contend that postproduction hemp is subject to a post-decarboxylation test, then it is wrong.

    The post-decarboxylation test does not apply to postproduction hemp. The two statutes cited by the DEA in its letter are the only two places in the Agriculture Improvement Act of 2018, commonly known as the 2018 Farm Bill, that the term “post-decarboxylation” appears. They both apply solely to hemp production.

    In the first statutory provision, 7 USC § 1639p(a)(2)(A)(ii), Congress sets forth the criteria that states and Indian tribes must comply with in order to “have primary regulatory authority over the production of hemp” within their jurisdictions. The second statutory provision, 7 USC § 1639q(a)(2)(B), is similar in that it sets forth the criteria that the U.S. Department of Agriculture (USDA) shall use to “monitor and regulate [hemp] production” in states that do not have an approved hemp plan and thus do not have primary authority over hemp production within their jurisdictions (state and tribal hemp plans are available at www.ams.usda.gov/rules-regulations/hemp/state-and-tribal-plan-review).

    The key word in the above provisions is “production.” In law, we refer to a word with a specific and defined legal meaning as a “term of art.” In the context of hemp, “production” is a legal term of art. Under 7 CFR § 990.1,5 to “produce” means “To grow hemp plants for market, or for cultivation for market, in the United States.” Additionally, 7 CFR § 718.26 defines a “producer” as “an owner, operator, landlord, tenant or sharecropper who shares in the risk of producing a crop and who is entitled to share in the crop available for marketing from the farm or would have shared had the crop been produced. A producer includes a grower of hybrid seed.” To produce hemp means to grow it.

    Since the post-decarboxylation test clearly applies to producers, the DEA is correct when it states that “for the purposes of enforcing the hemp definition, the delta-9 THC level must account for any delta-9 THCA.” A hemp producer’s crop must not have total THC concentrations exceeding 0.3 percent by dry weight in order to harvest it. However, once that crop passes the test and is harvested, no additional test is required under federal law.

    “At that point, meaning post-harvest, the sole statutory metric under federal law for determining whether harvested cannabis material is lawful hemp or illegal marijuana is its delta-9 THC levels. In fact, the DEA stated this very clearly in a letter dated January 6, 2022:7 “[T]issue culture or any other genetic material that is derived or extracted from the cannabis plant such as tissue culture and any other genetic material that has a D9-THC concentration of not more than 0.3 percent on a dry weight basis meets the definition of “hemp” and thus is not controlled under the CSA.”

    This was not the first time the DEA said that Delta-9 was the sole factor. During a video webinar8 called a “Town Hall with USDA and DEA” conducted by the Florida Department of Agriculture and Consumer Services on June 24, 2021, the DEA representative stated: “I’ll be very, very deliberate and clear. At this time, I repeat again, at this time, per the Farm Bill, the only thing that is a controlled substance is delta-9 THC greater than 0.3 percent on a dry weight basis.”

    The 9th Circuit Court of Appeals has also weighed in on this issue, stating: “[T]he only statutory metric for distinguishing controlled marijuana from legal hemp is the delta-9 THC concentration level.” 9

    So, the DEA is right that Congress requires a post-decarboxylation test for hemp production. But, once hemp has been deemed to be compliant and allowed to be harvested, the “post-decarboxylation” test no longer applies. You may reasonably ask how a crop that passed a total THC compliance test could be harvested and have flowers with no more than 0.3 percent delta-9 THC but with high concentrations of THCA. I discuss that in a companion article.10

    In summary, this DEA pronouncement is bound to create more confusion in an already confusing area of law; however, it should properly be read as simply restating the fact that hemp producers must comply with the total THC test in order to harvest their hemp. Post-harvest (i.e., postproduction), the 2018 Farm Bill’s definition of hemp clearly states that the delta-9 THC levels are what matter, not the levels of THCA. 

    Finally, I should note that the DEA also addressed other cannabinoids in its letter, including hexahydrocannabinol (HHC), which it finds to be an illegal synthetic form of THC that does not naturally occur in the cannabis plant. There is contrary evidence to this position, namely that HHC is naturally produced in cannabis seeds,11, 12 but that issue is for a future discussion.

    Based in Asheville, NC, Rod Kight is a renowned attorney in the cannabis industry.

    This article is not intended to be legal advice and should not be used as such. The matters discussed are novel and involve complicated and unsettled legal issues. Before making any decisions regarding THCA, you should first consult with an experienced attorney. 

    1 https://cannabusiness.law/wp-content/uploads/DEA-THCA-and-HHC-letter.pdf

    2 www.law.cornell.edu/uscode/text/7/1639p

    3 www.law.cornell.edu/uscode/text/7/1639q

    4 https://cannabusiness.law/how-is-this-not-hemp-peeking-under-the-hood-at-a-thca-hemp-flower-production-facility

    5 www.ecfr.gov/current/title-7/subtitle-B/chapter-IX/part-990/subpart-A/section-990.1

    6 www.ecfr.gov/current/title-7/subtitle-B/chapter-VII/subchapter-B/part-718/subpart-A/section-718.2

    7 https://cannabusiness.law/dea-seed-letter-triumph-or-trap/

    8 https://cannabusiness.law/is-d8-from-hemp-a-controlled-substance-dea-says-no/

    9 https://cdn.ca9.uscourts.gov/datastore/opinions/2022/05/19/21-56133.pdf

    10 https://cannabusiness.law/how-is-this-not-hemp-peeking-under-the-hood-at-a-thca-hemp-flower-production-facility/

    11 www.thieme-connect.de/products/ejournals/abstract/10.1055/a-1110-1045

    12 https://pubs.rsc.org/en/content/articlelanding/2016/NP/C6NP00074F

  • Hemp Farmers Sue Maryland for License ‘Monopoly’

    Hemp Farmers Sue Maryland for License ‘Monopoly’

    Credit: H Ko

    As Maryland’s recreational cannabis industry grows, a group of hemp entrepreneurs are challenging the state and its marijuana regulators in court.

    The Maryland Hemp Coalition joined forces with several other hemp growers and retailers to sue Governor Wes Moore, the Maryland Cannabis Administration, and the Maryland Alcohol, Tobacco, and Cannabis Commission, according to media reports.

    Nevin Youngan, an attorney representing the hemp industry in the suit, stated that his clients “had been lawfully selling these products for years” and were now being told that they could not do so without first procuring a license—despite there being “nearly insurmountable obstacles” in their way.

    During the latest legislative session, lawmakers put into place regulations governing recreational marijuana in Maryland, including limits on the allowable THC concentration in hemp-derived products Products such as Delta-8 could only be sold without a recreational marijuana license as well as details about how to obtain said licenses.

    Attempts during the legislative session were made to create a carveout for the hemp industry to allow businesses to continue selling their products. Another amendment floated during session including creating new testing and regulation for hemp products; both plans failed to be included in the final law passed by lawmakers.

    Without a recreational marijuana license, hemp-business owners were forced to close their doors on July 1.

  • Michigan Recalls THC Vapes for Banned Chemical

    Michigan Recalls THC Vapes for Banned Chemical

    The Cannabis Regulatory Agency in Michigan is recalling certain THC vape cartridges due to the possible presence of banned chemical residue exceeding the established limits, the agency announced.

    The vape cartridges — manufactured under the name “FLIGHT LIVE RESIN DISPOSABLE” — were manufactured by the Mount Morris-based marijuana processor Sky Labs near Flint and include three batches called “Grease Monkey,” “Space Ether” and “Bubblegum,” according to the Detroit Free Press.

    More than 13,000 of these vape cartridges have been sold, David Harns, a spokesperson for the CRA said, and about 2,200 of them are currently available for sale at 59 dispensaries.

    The banned chemical residues that are possibly in the products include Bifenthrin (an insecticide), Myclobutanil (a chemical used as a fungicide), Bifenazate (a pesticide), Paclobutrazol (an organic compound used as a plant growth retardant and fungicide) and Permethrin (an insecticide), he said.

  • PMI to Aquire Medical Marijuana Inhaler Company

    PMI to Aquire Medical Marijuana Inhaler Company

    Syqe Inhaler (CNW Group/Syqe Medical)

    Philip Morris International plans to acquire Syqe Medical, an Israeli company, according to Calcalist. The deal could reach $650 million.

    Syqe’s main product is a metered-dose inhaler for pain reduction using medical marijuana.

    PMI will initially invest $120 million to aid in the process of obtaining U.S. Food and Drug Administration approval for Syqe’s inhaler. If approval is received, PMI will purchase all shares of Syqe for $650 million.

    PMI subsidiary Vectura will conduct the transaction.

    In 2016, PMI invested $20 million in Syqe.

  • New Virginia Hemp Law Forcing Some Shops to Close

    New Virginia Hemp Law Forcing Some Shops to Close

    Credit: RawF8

    The U.S. state of Virginia recently enacted a law to curb kid-friendly packaging in cannabis products. That law is having hard effects on some local businesses.

    Lawmakers have witnessed Delta-8 products sold in packaging that mimic foods that are enticing to kids, but those in the hemp industry say this new crackdown goes too far.

    “Were one of hundreds that’s made the hard decision to just shut it down,” Reed Anderson said.

    Anderson says he’s shutting down his Goochland hemp business, Kame Naturals, in the wake of a new state law cracking down on THC products like Delta-8.

    It limits all hemp products to only two milligrams of THC per package. That’s far lower than most products in many smoke and vape shops. Hemp products must now have at least a 25-to-1 ratio of CBD to THC, according to media reports.

    “25-to-1 ratio doesn’t do what we do justice right,” Anderson said. “We started our business as a solventless extraction company, and that over time kind of had to go to the wayside because of the different regulations coming through.”

    Breaking the rules could mean fines of up to $10,000.

    Anderson said it’s all too much and says lawmakers paid too much attention to the intoxicating effects of THC and very little to the health benefits THC may provide.

    “Once you start getting into remediated product and trying to remediate THC out of a product, you lose a lot of the natural quality CBD products offer,” Anderson said.

    However, Governor Glenn Youngkin and the law’s supporters said something needed to be done to stop the sale of Delta-8 products. Too many kids were getting sick.

    A statement from Gov. Youngkin’s office said in part:

    “SB 903 and HB 2294 took critical steps to strengthen consumer safety and regulations around edible and inhaled hemp-derived products as well as delta-8 THC products. Specifically, the amendment continued its efforts to crack down on dangerous THC intoxicants, including synthetic THC products. In addition to the ban on synthetic THC, the limited percentage of total THC allowed in hemp products, the packaging and labeling restrictions, the testing requirements, and the total per package limit for THC, the substitute also requires retailers to register with the Virginia Department of Agriculture and Consumer Services (VDACS) to sell any edible or inhaled hemp-derived product. Additionally, the General Assembly established the registration requirement and fees as a necessary operating cost and to create a database of all regulated hemp product retail stores.”

    Anderson said while he’s no longer in the hemp business, he will become an advocate and plan to talk with politicians as often as he can to get these laws reformed.