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Bipartisan Lawmakers Circulate Letter Urging FDA To Back Off CBD Companies

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A bipartisan pair of lawmakers are circulating a sign-on letter asking colleagues to join them in urging the Food and Drug Administration (FDA) to back off companies that are selling CBD products in a responsible manner.

The “Dear Colleague” letter, which is being led by Reps. Chellie Pingree (D-ME) and James Comer (R-KY), emphasizes that hemp and CBD were federally legalized under the 2018 Farm Bill and argues that the lack of regulations for such products is creating industry uncertainty that’s inhibiting economic opportunities.

The letter was first reported by the U.S. Hemp Roundtable, which is asking its supporters to encourage their representatives to sign on.

FDA has said it is in the process of developing rules for the non-intoxicating compound, including a potential alternative regulatory pathway allowing for CBD to be added to the food supply and as dietary supplements. That could take years, however, as former FDA Commissioner Scott Gottlieb has noted.

In the meantime, the agency is being selective about enforcement action against companies that make unsanctioned claims about their products while also maintaining that all businesses selling CBD food items are violating the law.

The lawmakers aren’t satisfied. They described FDA’s regulatory timeframe as “untenable,” particularly because the U.S. Department of Agriculture is expected to release its rules for hemp “any day now,” and an official revealed this month that its draft regulations are currently undergoing final White House and Department of Justice review.

The members of Congress added that FDA’s current approach to CBD has “created significant regulatory and legal uncertainty for participants in this quickly evolving industry.”

“Given the widespread availability of CBD products, growing consumer demand, and the expected surge in the hemp farming in the near future, it’s critical that FDA act quickly to provide legal and regulatory clarity to support this new economic opportunity,” they wrote.

“Please join us in signing this bipartisan letter to Acting FDA Commissioner Ned Sharpless urging the agency to adopt a risk-based policy of enforcement discretion that targets bad actors while eliminating uncertainty for responsible industry stakeholders and consumers. Additionally, we are requesting that FDA to issue an interim final rule to regulate CBD as a dietary supplement and food additive.”

In the letter to Sharpless that Pingree and Comer are asking fellow lawmakers to sign, they laid out two requests for FDA.

First, the agency should “promptly issue guidance announcing a policy of enforcement discretion that maintains FDA’s current risk-based enforcement approach towards hemp-derived CBD products.” And second, it should “consider issuing an interim final rule, pending issuance of a permanent final rule, to establish a clear regulatory framework for CBD as a dietary supplement and food additive.”

The lawmakers added that they appreciate that FDA has pursued “enforcement actions against the worst offenders,” but that “it can do so while eliminating regulatory uncertainty for farmers, retailers, and consumers.”

“Without a formal enforcement discretion policy, anyone participating in the growing marketplace for legal hemp-derived products will continue to face significant legal and regulatory uncertainty,” they wrote.

Though issuing guidance on a “policy of enforcement discretion” wouldn’t be a codified law allowing companies to market CBD in the food supply, it would demonstrate to the industry that some protections are in place while FDA continues to navigate the rulemaking process.

Lawmakers have until Tuesday to sign the letter to FDA.

Read the Dear Colleague invitation and CBD letter to FDA below:

Pingree Comer CBD Letter by Marijuana Moment on Scribd

GOP Senate Chair Says He Plans Marijuana Banking Vote

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Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Kyle Jaeger is Marijuana Moment's Los Angeles-based associate editor. His work has also appeared in High Times, VICE and attn.

Politics

Anniversary Of Alcohol Prohibition’s End Is A Good Time To Legalize Marijuana, Presidential Candidate Castro Says

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Former Housing and Urban Development (HUD) Secretary Julián Castro marked the 86th anniversary of the repeal of alcohol prohibition in the U.S. on Thursday by calling for the legalization of marijuana.

The 2020 Democratic presidential candidate tweeted about Repeal Day, a commemoration of the ratification of the 21st Amendment, which ended federal prohibition of booze.

“86 years later, it’s time we end the federal prohibition of Cannabis once and for all,” he said. “Legalize it. Regulate it. Expunge the records of the victims of the war on drugs.”

Castro, who included proposals to legalize marijuana and expunge prior cannabis convictions in a criminal justice reform plan he released in October, isn’t the only one calling attention to the ongoing prohibition of the plant on Repeal Day. Several other Twitter users, including a congressional candidate, have made similar points.

While Castro hasn’t been quite as vocal about marijuana reform in his campaign as some of the other candidates, he has recently expressed openness to even broader drug policy initiatives such as decriminalizing possession of all drugs.

During a forum hosted by the Iowa Harm Reduction Coalition last month, Castro said “I do think though that it’s worth taking a look at that and understanding where are those opportunities, either to decriminalize or at least deemphasize enforcement so that we’re not penalizing individuals who should instead be getting the treatment that they need.”

He also said he supports communities establishing safe injection sites where individuals can consume illicit drugs under medical supervision to reduce the risk of overdose deaths and help people get into treatment.

South Bend, Indiana Mayor Pete Buttigieg and Rep. Tulsi Gabbard (D-HI), rival presidential candidates, are in favor of drug decriminalization, and Sens. Elizabeth Warren (D-MA) and Bernie Sanders (I-VT) back safe consumption facilities. Entrepreneur Andrew Yang says he would decriminalize opioids and invest federal resources into opening safe injection sites across the country.

Cory Booker’s Marijuana Agenda Highlighted In Three Super PAC Ads

Photo courtesy of YouTube/IHRC.

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Hemp Businesses Need Clarity On Credit Card Processing, GOP Congressman Tells Federal Regulators

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One day after federal financial regulators issued guidance relaxing requirements for banks doing business with hemp companies, Rep. Andy Barr (R-KY) called for further input on how financial institutions can work with the industry—particularly when it comes to credit card processing.

“I have heard from Kentucky bankers about this. They welcome this guidance, and it will go a long way to help the hemp industry thrive,” Barr said on Wednesday at a House Financial Services Committee hearing.

But after thanking witnesses—including Federal Deposit Insurance Commission (FDIC) Chairwoman Jelena McWilliams and National Credit Union Association (NCUA) Chairman Rodney Hood—he reminded them that there is still much work to be done to give hemp businesses fair access to financial services.

Specifically, Barr called credit card processing services for Kentucky hemp companies “unreliable” and “unavailable” while pointing out that Tuesday’s hemp banking memo failed to clearly address the problem.

“I’ve read the guidance closely, as you can tell, and I didn’t see that in there,” Barr said. “That’s the financial service that has really been unreliable and spotty, so if you need to update that guidance to give more clarity to card processing businesses, that might be in order.”

McWilliams replied that her agency would “certainly take a look” at the issue and offered that “to the extent that we need to do additional explaining, we are more than happy to engage in that process.”

In response, Barr reminded her of the broader goals of congressional action to legalize hemp products under the 2018 Farm Bill.

“Congressional intent is not only that the regulators confirm the legality of industrial hemp and hemp related retailers under the Farm bill, but that those retailers and merchants can use card processing services to sell the product itself,” he said.

Watch Barr press federal regulators on hemp business credit card processing below:

This isn’t the first time Barr has raised the issued of hemp businesses’ ability to accept payments with cards.

“I’ve had constituent businesses tell me that their access to financial products, specifically card services, have actually deteriorated since we descheduled industrial hemp in the Farm Bill,” he said at an earlier hearing in May. “This obviously conflicts with congressional intent.”

The congressman’s questions and comments at the most recent hearing are emblematic of a larger bipartisan push to provide updated regulations to the hemp industry and banks that work with it.

Most notably, the House overwhelmingly approved the Secure and Fair Enforcement (SAFE) Banking Act in September. The legislation would protect banks and credit unions from being penalized by federal regulators for working with marijuana businesses, and Barr added an amendment clarifying that the protections also apply to hemp companies.

However, the vote came later than some observers expected, which may help explain why the growth in the number of financial institutions working with cannabis companies seems to have slowed down in the prior quarter of the fiscal year.

NCUA’s Hood, whose agency’s earlier hemp guidance released in August was among the first federal clarifications on the issue after the Farm Bill became law, testified on Wednesday about the steps NCUA is taking to open up access to financial services for companies in the industry.

“We are continuing to work with the industry to provide training to our examiners,” Hood said. “We will now be working with the [U.S. Department of Agriculture] and other related parties to ensure that we get it right. We will be hosting a series of roundtables to gain insights from entities around best practices.”

In submitted testimony, he wrote that NCUA expects “to continue updating the credit union community now that the USDA has published its interim final rule [for hemp]” and said the agency has “received interest from credit unions eager to know the rules of the road for serving hemp-related businesses in their communities, and we want to make sure those credit unions have what they need to make informed decisions in this area.”

Jospeh Otting, comptroller of the currency, also discussed the latest guidance from federal regulators in testimony he submitted to the panel, writing that the joint statement from federal regulators “provides clarity regarding the legal status of commercial growth and production of hemp and relevant requirements for banks.”

Also discussed at the hearing was NCUA’s recent regulatory action on employment at credit unions by people with criminal records. Initially proposed by the agency in July, the move to allow participation by people convicted of minor offenses like simple drug possession was officially enacted by this week.

Asked by Rep. Brad Sherman (D-CA) “what are you doing, and what can Congress do” to assist in the advancement of the so-called “second chance” decision, Hood responded that NCUA “recognized that individuals who have committed nonviolent criminal offenses who have paid their debts to society should have opportunities to work in federal credit unions.”

McWilliams called the second chance decision an “important social justice issue” and said FDIC is currently seeking input on how best to move forward. “I personally believe we can go a long way to enabling those individuals to re-enter the workforce,” she said.

Watch lawmakers and regulators discuss financial services employment by people with prior convictions below:

Outside of the House Financial Services panel, several lawmakers on Capitol Hill have recently pushed to make business easier for hemp companies.

Last week, for example, Senate Minority Leader Chuck Schumer (D-NY) called on USDA to extend its public comment period for proposed hemp regulations. And in October, Sens. Ron Wyden (D-OR) and Jeff Merkley (D-OR) sent a letter to USDA asking for five specific changes in the rules.

Federal Regulators Ease Hemp Banking Protocols Following Crop’s Legalization

Photo courtesy of Pixabay.

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Cory Booker’s Marijuana Agenda Highlighted In Three Super PAC Ads

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A super PAC working to get Sen. Cory Booker (D-NJ) elected president is putting a lot of emphasis on the candidate’s marijuana reform agenda, releasing multiple new advertisements highlighting his position on the issue.

United We Win, an organization that’s not formally associated with Booker’s presidential campaign but supports his candidacy, included cannabis reform in three separate spots over the past month. Two of those ads contrasted the senator’s stance with that of former Vice President Joe Biden, a rival contender for the Democratic nomination who opposes adult-use legalization.

“Joe Biden is wrong about weed,” one ad, released on Tuesday, states. “He called marijuana a ‘gateway drug,’ but science says he’s wrong. Cory Booker knows that legalizing marijuana is the sensible, humane thing to do.”

Another, posted last week, shows a clip of Booker at the most recent Democratic debate, where Booker called out Biden over the gateway drug comment that quickly became a source of controversy ahead of the event. Booker said at the time that he was shocked to hear Biden say he doesn’t support legalization because he thinks cannabis could lead to the use of more dangerous drugs.

About one week after the former vice president made the remarks, he reversed his stance and said evidence doesn’t support the gateway drug theory. This wasn’t the first time that the senator has blasted Biden over his cannabis record, as Booker said in July that his opponent’s drug reform plan was inadequate.

“Joe Biden had more than 40 years to get this right,” Booker said. “The proud architect of a failed system is not the right person to fix it.”

The other ad, released last weekend, pits Booker against South Bend, Indiana Mayor Pete Buttigieg, who is also competing for the Democratic nomination. United We Win included Booker’s plan to legalize marijuana in a list of policy proposals that they said make him a more fit candidate and also noted his role in advancing criminal justice reform legislation in a Republican-controlled Senate.

Buttigieg does support legalization, so the point of bringing that position up didn’t appear to be an attempt to contrast each candidate’s platform on that issue in particular.

The super PAC’s website also prominently spotlights Booker’s marijuana record, including the issue as one of six main menu links across its top banner—alongside “criminal justice,” “gun safety” and “defeating Trump.”

There’s also an article recapping the senator’s debate attack on Biden’s anti-legalization comments.

Booker has certainly taken pains to emphasize his advocacy for cannabis reform during the campaign, and he’s the sponsor of comprehensive legislation that would not only federally deschedule marijuana but also penalize states that continue to dole out cannabis enforcement in a discriminatory manner.

While United We Win isn’t affiliated with Booker’s team, and federal law prohibits the PAC and the campaign from coordinating with one another, the strong focus on his marijuana platform reflects a growing recognition that, especially among Democratic voters, legalization is an important issue that candidates and political operatives are seeking to leverage during this election.

Cory Booker’s Mom Scolds Him For Marijuana Joke At Joe Biden’s Expense

Photo courtesy of YouTube/United We Win.

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