Legal News – Page 3

House Officially Passes Defense Bill With Marijuana Banking Protections, But Key Senators May Block Path Ahead

Posted on September 23, 2021January 26, 2022 by dylanramsey

Source: Marijuana Moment.net | Author: Kyle Jaeger | Sept 23, 2021

The U.S. House of Representatives on Thursday approved a large-scale defense spending bill that includes an amendment to shield banks that works with state-legal marijuana businesses from being penalized by federal regulators. Now advocates and industry stakeholders are left wondering: what’s the fate of the reform in the Senate? And can it make it to the president’s desk?

New comments from Sen. Cory Booker (D-NJ)—who’s helping lead the charge to advance comprehensive marijuana legalization and who has been severely critical of efforts to enact banking reform first—signal that the path to pass the incremental policy change through the National Defense Authorization Act (NDAA) could be in jeopardy in the Senate. Other key senators have also expressed skepticism about the reform’s prospects through this process.

For supporters, things may have been more simple if the Senate had moved to include cannabis banking reform in its own version, but the text of NDAA released by Senate Armed Services Committee on Wednesday does not contain that language. That means the matter will need to be settled in a bicameral conference committee after the full Senate formally passes its bill. At that point, negotiators from both chambers will work to resolve differences between their separate proposals.

Already, there’s pushback from key senators to including the Secure and Fair Enforcement (SAFE) Banking Act in the NDAA that’s ultimately sent to President Joe Biden. That’s not especially surprising considering that leadership, including Senate Majority Leader Chuck Schumer (D-NY), has insisted on passing comprehensive justice-focused marijuana legalization first rather than advance an incremental reform on banking. But recent statements do raise questions about the prospects of enacting the reform through the defense bill.

It’s not that the SAFE Banking Act is partisan or especially controversial on its face; it’s a matter of legislative priorities for certain senators and a question of germaneness in NDAA. As of Tuesday, when the reform amendment was officially attached to the House version of the bill, it has now passed five times in the chamber, usually along largely bipartisan lines.

Rep. Ed Perlmutter (D-CO), chief sponsor of the SAFE Banking Act, spoke with Marijuana Moment about the process moving forward in a phone interview on Wednesday. He was optimistic about the measure’s prospects with NDAA as the vehicle, though he conceded that he hadn’t spoken with Schumer or other key senators who are actively finalizing legalization legislation that they hope to see move first.

“I think the fifth time is the charm,” he said. “I mean, obviously, we still have to do some work to make sure that it remains part of the NDAA as the House and the Senate go to conference. So we still have work to do with the Senate to make sure that it remains part of it. But I think that it will.”

“I mean, the fact that it deals with cartels and national security, on top of the need for the public safety piece of this thing, I think that we’ll be able to convince the conference committee and the conferees generally to keep it in,” he said. “But we still have work to do.”

CA lawmakers approve hemp regulatory bill that divided marijuana sector

Posted on September 12, 2021February 21, 2022 by dylanramsey

Source: HempIndustryDaily.com | Author: John Schroyer | Sept 9, 2021

A long-debated bill to establish new hemp rules in California – but which drew the ire of business owners in both the hemp and marijuana sectors – has gained final approval from state lawmakers.

The measure easily passed both the state Senate and Assembly this week and is now on its way to the governor for his signature.

Among other things, the bill would:

Allow hemp extracts – including CBD – to be added to foods, beverages, cosmetics and pet products.
Establish new rules for hemp farmers and businesses, akin to the regulatory framework for marijuana companies, such as lab testing standards.
Hold out-of-state hemp products imported into California to the new state standards.
Ban the sale of intoxicating THC isomers such as delta-8 THC outside regulated cannabis sales channels.
Permit the sale of smokable hemp, but only once lawmakers agree on a new tax for “inhalable products.” The timing for such a tax is uncertain. Producers could make smokable-hemp products for out-of-state sale right away.

The passage of the bill was the result of years of effort to update industry rules for California’s hemp companies.

Up until its passage, the measure remained a divisive issue among marijuana and hemp industry stakeholders.

The marijuana industry stands to benefit because low-THC hemp products now will be subject to the same regulations, testing and taxing that MJ businesses are subject to. Thus, companies selling low-THC products will have a harder time undercutting marijuana businesses.

According to a state legislative analysis issued Wednesday, supporters of the measure included the U.S. Hemp Roundtable, California Cannabis Industry Association, California Hemp Council, Cannabis Beverage Association and a few marijuana companies such as Canadian producer Canopy Growth.

“These critical changes to California law will drive economic opportunity and boost job growth by providing certainty to farmers, manufacturers, and retailers through a clear roadmap for expansion by providing consumers with a regulated CBD marketplace,” David Culver, Canopy’s vice president of global government relations, said in a news release.

There were vocal opponents, though, including the California Hemp Association, Cannabis Distribution Association and a number of regional MJ cultivation trade groups such as the Origins Council.

Some changed their formal stance to neutral after several last-minute amendments, according to the Los Angeles-based United Cannabis Business Association.

The final version of the bill “finally moves toward establishing a legitimate foundation upon which we can build responsible policies for all cannabinoid products of all origins,” the UCBA said in a release.

California had 479 hemp growers on 17,184 acres in 2020.

Florida ag commissioner backs marijuana legalization to clear way for hemp

Posted on September 9, 2021February 21, 2022 by dylanramsey

Source: HempToday.net | Author: Hemp Today | Sept 2, 2021

A lack of clarity in federal cannabis laws is suppressing growth of the legal hemp industry, according to Florida Agriculture Commissioner Nikki Fried, who this week wrote a letter to U.S. Senate leaders backing cannabis reform legislation that would end the prohibition on marijuana.

In the letter, addressed to Senate Majority Leader Chuck Schumer (NY), Senator Ron Wyden (OR), and Senator Cory Booker (NJ), the bill’s sponsors, Fried also emphasized the need for the Food & Drug Administration (FDA) to classify hemp as a food ingredient.

Fried said the current arbitrary line defining when a product is deemed hemp and legal versus marijuana and illegal often means hemp farmers have problems with access to capital, federal research funding, insurance protections, disaster relief, federal trade promotion programs, and employment protections.

Conflicts

“While the burgeoning growth of the hemp industry is promising, it has also revealed the need for federal action to resolve the conflicts arising from the federal prohibition of marijuana,” Fried wrote in the letter, dated Aug. 31.

Fried’s recommendations address the Cannabis Administration and Opportunity Act, legislation proposed by the three senators which would end the federal marijuana ban while allowing states to determine their own cannabis laws.

“If left unresolved, these unnecessary hurdles could suppress the growth of the hemp industry that is projected to increase at 32 percent annually through 2027 as our nation moves toward more environmental and health-conscious products,” the commissioner wrote.

Federal inaction also means state-legal marijuana industries are stifled, Fried warned.

Focus on food

FDA classification of hemp as a food ingredient would also qualify its derivatives for inclusion in supplements, according to the Florida Department of Agriculture & Consumer Services (FDACS). If hemp, on the other hand, is first recognized as a supplement, it may not then cross over and be used as a food ingredient (despite the fact that supplement manufacturing standards are more stringent than those for making food).

Florida’s current legal and regulatory structures are “built on the understanding that hemp is a food additive,” FDACS noted in analysis Fried included with her letter to the senators.

Progress, challenges

Florida has approved more than 800 hemp cultivation permits for farmers in 65 of the state’s 67 counties since FDACS began accepting applications to grow industrial hemp early in 2020. Roughly 22,000 of 30,000 acres approved for planting were farmed last year, according to FDACS figures, representing at least a theoretical economic impact of roughly $300 million, with $136 million in revenue and more than 8,000 jobs created.

But researchers studying hemp’s potential in Florida say they haven’t yet found many hemp varieties viable in the state’s tropical and subtropical climates – a challenge faced by agronomy experts from Latin America to Africa to Southeast Asia, where countries are rushing to roll out hemp initiatives. Regions at tropical latitudes have struggled to find varieties that will flourish and still meet rules governing maximum amounts of THC.

Costs of prohibition

Florida’s hemp plan has been approved by the U.S. Department of Agriculture, but the state opted to remain under rules in the 2014 Farm Bill hemp pilot program for one more year after the USDA offered that option at the end of 2020. Hemp states without federally approved plans got the one-year extension to give regulators more time to harmonize local and federal laws.

Fried said marijuana legalization would also help resolve conflicts between federal and state laws governing medical and adult-use cannabis. The Cannabis Administration and Opportunity Act would expunge federal non-violent marijuana crimes, and reinvest federal cannabis tax revenue into communities historically afflicted by the “War on Drugs.”

“Continued marijuana criminalization demands billions in social, economic, and criminal justice costs, while forgoing billions in potential tax revenue,” Fried wrote in her letter to the Senators.

Court sides with Brazilian patient over import of CBD product

Posted on June 23, 2021February 21, 2022 by dylanramsey

Source: HempToday.net | Author: HempToday | June 22, 2021

A Brazilian medical CBD patient has received a reward of R$10,000 (~$2,000) for distress suffered when the government refused to import a specific CBD product upon request.

The unnamed patient received the favorable judgment on appeal after a lower court had refused his request to import CBD from NuLeaf, a U.S. based producer of hemp-derived cannabinoid products.

While an original civil filing won a judgment that health insurance cooperative Unimed indemnify the patient after refusing to import the CBD product, a second court dismissed the request before it was reinstated in a final ruling.

Health risks

The patient claims he has generalized anxiety and needs the NuLeaf product, which was recommended to him by a medical doctor. He claimed psychological distress and cited risks to his health in seeking redress in the case.

In its original dismissal of the request, the lower court said even though CBD-based medicines are importable with special authorization from the Brazilian Health Regulatory Agency (ANVISA), NuLeaf is not specifically authorized by the agency.

But the magistrate in the final appeals case said a government resolution on the import and use of CBD-based medicines de facto means products that meet certain criteria are eligible for import into Brazil.

Clinical Study Reports No Evidence of Liver Toxicity in CBD

Posted on March 24, 2021February 21, 2022 by dylanramsey

Source: Hemp Supporter | Author: Hemp Supporter | Mar 24, 2021

We’re excited to announce the results of an important clinical study conducted by ValidCare on CBD: Preliminary results reveal no evidence of liver toxicity.

Since passage of the 2018 Farm Bill, the FDA has been investigating a pathway to regulate the sale of ingestible hemp-derived CBD products. Unfortunately, the agency has not taken any concrete steps, claiming that it needs more real-world data on CBD’s safety profile.

As part of the hemp industry’s continuing effort to provide FDA data, ValidCare commissioned a study and concluded that “preliminary findings show no evidence of liver disease in the 839 participants and no increase in the prevalence of elevated liver function tests when compared to a population with a similar incidence of medical conditions.”

Major kudos to ValidCare, as well as to the US Hemp Roundtable members who funded and participated in the study: American Shaman, CBD Distillery, Charlotte’s Web, Hemp Fusion, Kannaway and Medterra.

Evidence like this confirms that it is high time for FDA to legally recognize and regulate ingestible hemp-derived CBD products. That’s why it’s so important that Congress pass HR 841, which would establish a legal pathway for the sale of hemp-derived extracts as dietary supplements.

Please use our online portal to email your U.S. Representative today, urging him or her to co-sponsor HR 841.

U.S. Hemp Roundtable States Opposition to “Legal” Hemp-Derived THC

Posted on March 10, 2021April 30, 2021 by dylanramsey

Source: Whole Foods Magazine | Author: Whole Foods Magazine Staff | Mar 9, 2021

The U.S. Hemp Roundtable has released a statement against the marketing of products for their intoxicating or euphoric effects under the guise of hemp, which has made headlines in New York Times and Rolling Stone.

The Times pointed to Hometown Hero CBD, a company based in Austin, Texas, which sells joints, blunts, gummy bears, and more that can get people high—they contain Delta-8-THC, which can be extracted from hemp. Delta-9-THC is explicitly outlawed under federal law, the Times explains, but Delta-8-THC from hemp is not, allowing companies to market drug products as hemp, legally.

Rolling Stone explains that Delta-8 isn’t as psychoactive as Delta-9, offering a high that is “less sedative and more functional than Delta-9.”

However, while Delta-8-THC is technically legal when derived from hemp, Joseph Hoelscher, Founding Member of the Texas Association of Cannabis Lawyers, told Rolling Stone that “the process most commonly used to produce Delta-8—synthetically altering CBD into Delta-8-THC—probably isn’t legal.” Delta-8 only exists in tiny amounts in hemp, so it is far more cost-effective to alter CBD in a process that is, in fact, federally banned.

The Hemp Roundtable is categorically against this, according to their statement. “Unlike marijuana, hemp is, by definition, not intoxicating,” the statement says. “Rather hemp products like CBD are popularly used by consumers to benefit their general health and wellness, not to get them high. Adult-use cannabis products, which feature concentrated THC and are intended for intoxication, should not be marketed as dietary supplements, and should be subject to a distinct regulatory pathway. We look forward to working with Congress and federal agencies to develop responsible laws and regulations to provide separate pathways and proper guardrails to distinguish these products.”

A first step, according to the statement: HR 841, which would establish a regulatory pathway for the sale of hemp-derived extracts. “This bill will help stabilize hemp markets, open a promising economic opportunity for U.S. farmers, and protect consumers by requiring hemp extract product manufacturers to comply with the entire existing comprehensive regulatory framework for dietary supplements.”

Congress introduces bill to legalize hemp CBD supplements

Posted on February 7, 2021April 30, 2021 by dylanramsey

H.R. 841 would make hemp and all its cannabinoids (except THC) subject to all the other FDA regulations as for any other dietary supplement.

Source: Natural Product Insider | Author: Todd Runestad | Feb 07, 2021

Impatient with foot-dragging by the U.S. Food and Drug Administration, Congress has re-introduced legislation to compel the regulatory agency to approve CBD—as well as all the other cannabinoids and terpenes within hemp (sans THC)—for use in dietary supplements.

The bill, H.R. 841, is called the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021. It is identical to H.R. 8179, introduced in the last Congress.

Introduced by Oregon Democrat Kurt Schrader and Virginia Republican Morgan Griffith, with five Republican and 12 Democratic co-sponsors, the bill would simply make hemp subject to all the other regulations as for any other dietary supplement, subject to new dietary ingredient (NDI) filings, Good Manufacturing Practices (GMP), and labeling and marketing provisions.

It would maintain hemp’s definition as a cannabis plant with less than 0.3% THC—the euphoria-inducing cannabinoid in the plant, which is solely responsible for the difference between hemp and marijuana.

The NDI aspect is a heavy lift, one that could be counted on to radically shrink the number of brands on the market. But the certainty would be a boon for companies that have the wherewithal to produce quality hemp or spend a high six figures to conduct toxicology testing. For growers who have done the tox work, the riches could be legion.

“It provides the category and all of us that play in that field a legitimate entry point into the mainstream marketplaces that have kept us at bay for years now,” said Josh Hendrix, chief growth officer at Driftless Extracts and Workman’s Relief. “This is a step in the right direction for sure. It’s certainly not the final piece of the puzzle but a very important first step for those that are making quality products.

That sentiment is echoed by a longtime supplements trade group, the Council for Responsible Nutrition, which represents large supplements companies that offer guardrails and boundaries circumscribing the “responsible” supplements space.

Julia Gustafson, vice president of government relations for CRN, expressed frustration with the FDA, and hopes that this bill would shift the agency’s thinking around hemp and hemp CBD.

“Due to continued FDA inaction,” said Gustafson, “more consumers are at risk every day of unsafe or illegal products that are poorly manufactured, incorrectly labeled, or illegally deliver THC or other adulterants. Concurrently, responsible CBD companies that adhere to federal regulations and product and market safe and beneficial CBD dietary supplements are forced to share the shelf with disreputable companies that compromise public safety for profit.”

Will the bill compel the FDA to act?

Concern remains for the bill’s fate, as some members of Congress are seen as preferring to let the FDA take the lead. However, impatience with the FDA’s position has directly led to this Congressional action.

“Reps. Schrader and Griffith have shown true leadership on this issue, and we anticipate support continuing to build as it progresses through Congress,” said Jonathan Miller, General Counsel for the U.S. Hemp Roundtable, and spokesperson for a coalition of 19 groups representing hemp and supplements concerns. “The organizations working collectively to establish a trusted marketplace for ingestible hemp-derived ingredients applaud the bipartisan approach on this legislation.”

The coalition, in a press release, lamented the “regulatory uncertainty” that remains about the inclusion of hemp and hemp-derived CBD into ingestible products.

CBD commerce and investment, asserted the coalition, “have resultingly been chilled, impairing job creation and economic opportunity for farmers and small businesses.”

Michael McGuffin, president of the American Herbal Products Association and a coalition partner, provided clarity around the intense desire in the industry for Congress to step in now. He has long maintained that hemp and hemp CBD should simply be treated as any other botanical supplement on the market.

“There remains an absence of substantive progress on FDA’s reported attention to creating a lawful pathway for CBD, and a similar lack of clarification from the agency that simple hemp products, such as tinctures and extracts, should be regulated the same as other herbal supplements,” said McGuffin. “This legislation will fill those gaps, and we see it as important for ensuring that consumers will be able to find hemp and CBD products that are clearly subject to FDA’s enforcement of the robust regulations that apply to all other herbal supplements.”

CRN’s Gustafson hopes this bill will jump-start the FDA’s efforts, focusing its attention on the goal of expanding consumer access to hemp CBD and other cannabinoids and terpenes.

“We call on FDA to constructively engage with the bill sponsors and other stakeholders to address any reservations it may have and to help craft legislation that protects public health while fostering a new category of supplements.”

The U.S. Hemp Roundtable has built a portal where interested parties can contact their Congressional representatives and encourage them to co-sponsor and otherwise support the bill’s passage.

The coalition of 18 groups supporting this bill includes the U.S. Hemp Roundtable, American Herbal Products Association (AHPA), Alliance for Natural Health, Citizens for United Health, Consumer Healthcare Products Association (CHPA), Council for Responsible Nutrition (CRN), Hemp Alliance of Tennessee, Hemp Industries Association (HIA), Midwest Hemp Council, National Cannabis Industry Association (NCIA), National Association of State Departments of Agriculture (NASDA), National Grocers Association, Texas Hemp Coalition, United Natural Products Alliance (UNPA), U.S. Hemp Authority, U.S. Hemp Building Association, Wisconsin Hemp Alliance, and We Are For Better Alternatives (WAFBA).

U.N. Reclassifies Cannabis as a Less Dangerous Drug

Posted on December 1, 2020April 30, 2021 by dylanramsey

A United Nations commission voted on Wednesday to remove cannabis for medicinal purposes from a category of the world’s most dangerous drugs, a highly anticipated and long-delayed decision that could clear the way for an expansion of marijuana research and medical use.

Source: NY Times | Author: Isabella Kwai | Dec 2, 2020

The vote by the Commission for Narcotic Drugs, which is based in Vienna and includes 53 member states, considered a series of recommendations from the World Health Organization on reclassifying cannabis and its derivatives. But attention centered on a key recommendation to remove cannabis from Schedule IV of the 1961 Single Convention on Narcotic Drugs — where it was listed alongside dangerous and highly addictive opioids like heroin.

Experts say that the vote will have no immediate impact on loosening international controls because governments will still have jurisdiction over how to classify cannabis. But many countries look to global conventions for guidance, and United Nations recognition is a symbolic win for advocates of drug policy change who say that international law is out of date.

“This is a huge, historic victory for us, we couldn’t hope for more,” said Kenzi Riboulet-Zemouli, an independent researcher for drug policy who has closely monitored the vote and the position of member states. He said that cannabis had been used throughout history for medicinal purposes and that the decision on Wednesday reinstated that status.

The change will most likely bolster medical research and legalization efforts around the world.

The vote was a “big step forward,” recognizing the positive impact of cannabis on patients, said Dirk Heitepriem, a vice president at Canopy Growth, a Canadian cannabis company. “We hope this will empower more countries to create frameworks which allow patients in need to get access to treatment.”

Marijuana for medical use has exploded in recent years and products containing cannabis derivatives like cannabidiol or CBD, a nonintoxicating compound, have flooded the wellness industry. Cowen, an investment and financial services company, estimates that the CBD industry in the United States will be worth $16 billion by 2025.

Some research has suggested that CBD can protect the nervous system and provide relief from seizures, pain, anxiety and inflammation. The list of CBD-infused products — including creams, serums, soda water and juice — is also expanding rapidly.

The recommendations for changing the classification of marijuana were first made by the World Health Organization in 2019. But they were politically divisive, which led to unusual delays in the United Nations commission’s vote.

The reclassification passed 27 to 25, with an abstention from Ukraine. The United States and European nations were among those who voted in favor, while the likes of China, Egypt, Nigeria, Pakistan and Russia were opposed.

China’s delegate said that, despite the United Nations move, the country would strictly control cannabis “to protect from the harm and abuse.”

Britain’s delegate said that the reclassification was “in line with the scientific evidence of its therapeutic benefits” but that the country still strongly supported international controls for cannabis, adding that marijuana presented “serious public health risks.”

The differing messages underline the complexities behind the decision. “It’s been a diplomatic circus,” said Mr. Riboulet-Zemouli, who added that some countries initially opposed to the change, like France, had since switched their position.

Michael Krawitz, executive director for Veterans for Medical Cannabis Access, an advocacy group in the United States, said the change in international law would “help reduce the suffering millions of people” and could help mitigate reliance on opiates, noting that cannabis was an important medication that could provide unique pain relief.

Also on Wednesday, the commission rejected a proposal to include the cannabis derivative THC in the 1961 convention, which would have tightened some controls.

The overhaul of cannabis policy, particularly around legalization for medical use, has moved at a rapid pace over the last few years, said Jessica Steinberg, managing director at the Global C, an international cannabis consulting group. Industry insiders have expressed hope that the vote will open the field for more research into the therapeutic benefits of the drug.

But the impact on the American and European markets was driving the issue, Ms. Steinberg noted. In the United States, where more states legalized the use of medical and recreational marijuana in the recent election, the market for both of those is expected to expand to more than $34 billion by 2025, according to Cowen.

Before the vote this week and other decriminalization efforts, share prices of some cannabis companies jumped.

But aside from the financial boon it could provide for American and European marijuana markets, downgrading the dangers of cannabis may have the biggest impact on countries that have more conservative policies, such as many Caribbean and Asian nations.

“Something like this does not mean that legalization is just going to happen around the world,” Ms. Steinberg said. But “it could be a watershed moment.”