U.S. trade group cries foul over proposed strict limits on THC in extracts

Source: HempToday.net | Author: HempToday | Aug 16, 2022

A proposed provision in landmark U.S. cannabis legislation under consideration would set an unnecessarily low level for trace amounts of THC in hemp flower-based food products, leading to “the elimination of the substantial majority of the hemp extract and CBD industry,” a trade group has warned.

In a letter sent to main sponsors of the Cannabis Administration and Opportunity Act (CAOA), filed in the Senate last month, the U.S. Hemp Roundtable (USHR), a Kentucky-based trade association, criticized the THC provision in the bill, which sets a limit of 1 milligram of total THC per 100 grams on a dry weight basis, translating into a 0.001% total THC standard.

The CAOA, considered to be the most comprehensive among several cannabis bills currently floating around in the U.S. Congress, is not expected to become law any time soon, but serves as a center of gravity for the discussion of marijuana and hemp policy.

Scope of the CAOA

The bill would recognize the legalization of cannabis by the states and decriminalize, regulate, and tax businesses, offering provisions related to justice, immigration, and enforcement; small business administration; public health; education infrastructure; labor; veterans; banking, housing; and community development.

The U.S. Food & Drug Administration (FDA) would regulate cannabis products through a new Center for Cannabis Products, under provisions in the proposed law. 

“This is an arbitrary and unrealistic standard,” USHR said of the THC limit proposed for hemp-based products. “No full spectrum or broad-spectrum hemp extract would qualify, and likely most CBD isolates would be challenged to comply, given the limitations of current testing technology.

“Indeed, this limit would delegate most, if not all, popular, non-intoxicating CBD and hemp extract products to the adult-use cannabis market,” the group said, urging the bill’s sponsors to reconsider what it called “a misguided standard for intoxication” that is “uniquely onerous and unprecedented.”

Delta-8 should be regulated

In the letter, sent to Sen. Ron Wyden of Oregon, Sen. Cory Booker of New Jersey and Sen. Chuck Schumer of New York, the lead sponsors of the CAOA, USHR called for expanded protections for all non-intoxicating hemp derivatives including CBD and other cannabinoids, legalizing the sale of CBD and other hemp extracts as food and beverage ingredients, and loosening up on who may conduct safety evaluations.

Despite its vigorous defense of CBD, USHR said it supports the CAOA’s effort to regulate psychoactive cannabis products, like delta-8 THC, which is derived from hemp-based CBD. Separate regulatory pathways for non-intoxicating hemp and intoxicating cannabis products should be established, USHR recommended.

The CAOA should be changed to establish a more comprehensive rulemaking process for determining daily serving limits for CBD that invites stakeholder input, USHR also urged.

Task force proposed

In addition to the allowable THC levels for consumer products, USHR said other provisions in current CAOA language could undermine the industry, and urged creation of a task force to also set regulations for daily serving limits for CBD, consider the advisability of the current delta-9 THC limit for hemp plants of 0.3%, and address other potentially intoxicating hemp derivatives.

The task force would include representatives from the U.S. Food & Drug Administration (FDA), the National Institute on Drug Abuse of the National Institutes of Health, hemp growers, manufacturers, processors and distributors, and testing laboratories. 

The group would report findings and offer recommendations within 120 days after being formed, USHR recommended. FDA and other federal agencies would then have 90 days to start the rule-making process to implement the task force’s recommendations.

Reforms move slowly

Observers have said only incremental reform on cannabis is expected in the near future, especially if the Democrats lose the Senate in the 2022 midterm elections. Problems with banking, for example, could be resolved with separate legislation, the SAFE Banking Act, which would finally permit financial institutions to service cannabis companies without fear of reprisal.

While CAOA’s sponsors have said they will not support the SAFE Banking Act in the absence of broader criminal reforms, policy that provides basic financial services for cannabis operators enjoys bi-partisan support in Congress.

About USHR

The U.S. Hemp Roundable is led by Pete Meachum, president, a lobbyist who also serves as Senior Director for Government Affairs for the Cronos Group, Ontario, Canada. The following businesses and organizations are on the USHR board, according to the group’s website: Ananda Hemp (Kentucky), Balanced Health Botanicals (Colorado), Canopy Growth Corporation (Ontario, Canada), CBD American Shaman (Kansas), Cultivated CBD (Minnesota), Curaleaf (Massachusetts), Garden of Life (Florida), GVB Biopharma (Nevada), Hemp Industries Association, Just Brands (Holland), Koi CBD LLC (California), Medterra CBD (California), Recess (New York), Red Mesa Science & Refining (Utah), SC Labs (California), Turning Point Brands (Kentucky), U.S. Hemp Authority, Verge Agritech (United Kingdom), and Zilis (Texas).

Apple Secretly Joined Amazon In Advancing Commercial Cannabis Reform

Source: Forbes.com | Author: Robert Hoban | Feb 15, 2022

This past summer, a little recognized thing occurred — one of the largest and most respected companies in the world quietly changed its policies in favor of cannabis. That company was Apple. As a result, they joined the ranks of Amazon as a global corporation advocating for policy reform that would open a federally legal, commercial cannabis industry in the United States.

For years, large tech companies, including Facebook and Google, have refused to acknowledge the legality of industrial hemp, let alone the legality of medical or recreational marijuana. Finally, Apple bucked that trend. In June, the fine print of Apple’s “App Store Review Guidelines” release stated that apps handling sales and delivery of medical and recreational cannabis in legal jurisdictions are now allowed on the App Store. This was monumental.  

Unlike the big headlines we’ve seen recently from Amazon, Uber, the NFL, and other mainstream, institutional businesses, showing a positively changing attitude toward cannabis, Apple made no big-splash announcement that this had happened. Yet, this change came at a time of a shift in the cannabis paradigm for voters, policymakers, and the average American. 

As we’ve discussed previously, U.S. voters are shifting rapidly and dramatically in favor of cannabis legalization. The most recent Gallup poll showed that 68% of American voters support some form of legalization. There’s also tremendous momentum from the recent unveiling of the Cannabis Administration and Opportunity Act by Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ).

The financial technology experts at ArtisIQ are ahead of the curve in identifying the imperative to collaborate with tech leaders like Apple to update policy to reflect the mainstream adoption of cannabis. Co-Founder and CMO of Artis, Adair Lion shares, “As a fintech company on the cutting-edge of development in both cannabis and retail, Apple’s Policy changes are a monumental shift in the way our society does mobile transactions.”

When political leaders and Fortune 100 companies begin modifying policies and behavior to accommodate something that has been seen as fringe, elicit, or otherwise illegal, the hearts and minds of American start to change. It’s safe to say the tide is turning. 

This is the kind of influence that sets the tone for mainstream behavior. Think back to the early days of Babe Ruth and baseball, where ball players were smoking cigarettes in the dugout and cigarette advertisements abounded. Or more recently, Elon Musk and Tesla’s support of cryptocurrency which influenced much wider adoption and made the price of Bitcoin soar. 

The fine print of Apple’s policy update states that apps involved in the sale of cannabis are exclusive to licensed legal entities and strictly require geo-fencing within the legal jurisdiction. This requires an enormous amount of technological and regulatory compliance and is precisely where a fintech software company like Artis could excel. Consumer behavior shows the need for embedded digital payment technology. There’s been modest growth in payment and technology solutions for the cannabis industry and ancillary service providers. This is in no small part due to federal illegality and the fragmented nature of the industry.   

Apple’s policy adjustments are just an example of the level of innovation and attention to detail that Artis is providing to the cannabis industry. What is it that propels some tech companies above the rest? It’s those that provide solutions for the world’s most complex problems. It’s plain to see that cannabis has presented enormous complexity to politicians, enterprise businesses, and just about every other imaginable cog in the machine of our modern world.  

The contributions of experienced professionals are unequivocally what is necessary to propel cannabis further into the mainstream. These are the building blocks, the intimate details, that ultimately bring to reality the hopes of grand legislation, like the Cannabis Administration and Opportunity Act. Compliant and lawful participation in the cannabis ecosystem is paramount to widespread, mainstream adoption. As one who has had to navigate the grey areas of cannabis law for many years – and I’m as honest as a Denver man can be – I will always applaud the hard work to deliberately pave the way forward for this industry.