A pair of congressmen on Friday introduced bipartisan legislation to allow cannabidiol (CBD) and other hemp-derived compounds to be marketed and sold as dietary supplements—a change that could clear up legal confusion at retailers across the country.
The proposal, sponsored by Reps. Kurt Schrader (D-OR) and Morgan Griffith (R-VA), is part of an ongoing effort by the federal government to find a path forward on hemp and its derivatives after they were broadly legalized under the 2018 Farm Bill.
The new bill would make clear that Congress wants to see federally regulated CBD and other hemp products made available to American consumers.
“Hemp was historically an important crop for Virginia farmers, and dietary supplements made from it do not possess dangerous addictive qualities,” Griffith said in a press release. “Nevertheless, the current state of regulation creates confusion about its legal uses. I joined this bipartisan bill to provide certainty for hemp farmers that their crop may find legal uses.”
While the 2018 agricultural legislation allowed the production and sale of hemp under state-approved programs, the federal regulatory framework for products derived from the low-THC version of the cannabis plant has lagged, frustrating businesses and law enforcement. In a letter sent last year to the head of the Food and Drug Administration (FDA), bipartisan lawmakers complained that the agency’s “current regulatory posture on CBD has created significant regulatory and legal uncertainty for participants in this quickly evolving industry.”
Though the regulatory landscape could soon change—FDA earlier this year reopened a public comment period around how CBD should be regulated, and last month the agency submitted draft enforcement guidelines to the White House—the new bill from Schrader and Griffith would make clear that Congress wants to see action on CBD and other hemp products sooner rather than later.
The legislation, titled the “Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2020,” would mandate that “cannabidiol derived from hemp, and any other ingredient derived from hemp shall be lawful under the Federal Food, Drug and Cosmetic Act (21 U.S.C. 301 et seq.) as a dietary ingredient in a dietary supplement.”
Hemp-derived dietary products would still be required to comply with federal requirements on packaging and labeling under the proposal, as well as FDA rules regarding new dietary ingredients.
Industry advocates, who have pushed hard to clear a federal path for hemp-derived CBD, say the measure would boost consumer confidence in CBD products and help businesses that poured money into hemp production early, expecting markets to open quickly.
After the 2018 Farm Bill’s passage, thousands of farmers and small businesses invested in what was widely seen as a CBD boom, the U.S. Hemp Roundtable, an industry group, said in a press release on Friday. “However, public announcements by the FDA questioning the legality of ingestible hemp-derived products have hindered the progress of the industry and put at risk the livelihoods of many hemp farmers. Not only did the lack of clarity spell economic disaster, but also resulted in a lack of regulations around quality, leaving consumers unprotected,” the organization said.
The Schrader/Griffith bill would ensure that #hemp-derived CBD, and other non-intoxicating hemp ingredients, could be lawfully marketed as dietary supplements. Learn more and take action here: https://t.co/vVfSNwwr6o #HempSupporters #hempCBD
— US Hemp Roundtable (@HempRoundtable) September 4, 2020
“Enabling CBD to be lawfully marketed as dietary supplements and mandating that manufacturers comply with the entire existing regulatory framework for dietary supplements would create immense confidence in hemp and CBD products, and would provide great opportunity for hemp farmers across the nation,” added Jonathan Miller, the organization’s general counsel. He predicted the market for products extracted from hemp would exceed $10 billion within a few years.
The group is asking supporters to encourage Congress to pass the legislation.
It’s not the first time such a bill has been introduced. A different group of bipartisan lawmakers introduced a similar measure in January that would have included CBD in the definition of dietary supplements under the Food, Drug and Cosmetic Act. The House, however, hasn’t held any hearings or votes vote on the proposal.
Separately on Friday, the U.S. Department of Agriculture (USDA) announced that it will reopen a public comment period on hemp production and testing, seeking additional feedback on topic areas such as interstate commerce, breeding and testing methodology. The public comment period first closed in January, but the agency said the initial round of more than 4,600 comments identified a handful of crucial issues. Industry advocates hope the agency’s decision to seek further input could mean revisions to some of the agency’s more onerous restrictions, such as one that requires hemp be tested only at laboratories certified by the Drug Enforcement Administration, which critics have warned could create a production bottleneck.
Miller at the U.S. Hemp Roundtable told Marijuana Moment that the group is “hopeful” that after the new comment period, USDA will arrive at a “final rule that hemp farmers and industry can embrace.”
Photo by Kimzy Nanney
State Of Montana Launches Online Hemp Marketplace To Connect Buyers And Sellers
Say you’re a Montana farmer who has planted acres of industrial hemp. As harvest nears, you’re looking to offload it. Where do you go to find a buyer?
Montana’s Department of Agriculture says it has the answer.
The state this week announced the launch of an online “Hemp Marketplace,” unveiling an online portal meant to connect the hemp farmers with buyers in search of seeds, fiber and derivatives such as cannabidiol, or CBD.
“The Hemp Marketplace concept originated from the same idea as the department’s Hay Hotline,” the Agriculture Department says on its website, “only instead of hay and pasture, the online tool connects buyers and sellers of hemp and hemp derivatives.”
Listings are free of charge.
Montana farmers have embraced industrial hemp since the state legalized its production under a federal pilot program. The first legal crop was planted in 2017, and in recent years the state has led the country in terms of space dedicated to the plant. In 2018, for example, licensed farmers in Montana grew more acreage of hemp than any other U.S. state. While other states have since eclipsed the state’s hemp production—the crop became broadly federally legal through the 2018 Farm Bill—Montana remains an industry leader.
But to make revenue, farmers have to be able to sell their crop. That’s where the new hemp marketplace comes in. The online portal is essentially a sophisticated bulletin board for buyers and sellers, split into “Hemp for Sale” and “Hemp to Buy” categories.
“With hemp being a relatively new crop grown in Montana, the department recognizes that these markets are still developing,” Department of Agriculture Director Ben Thomas said in a statement. “The Hemp Marketplace was designed to help facilitate connections between buyers and sellers. I’m looking forward to seeing how the marketplace will continue to advance the industry.”
Listings include what type of products are on offer (or being sought), whether a given crop is organic and even whether laboratory testing data is available. The portal also organizes products into one of four varieties based on whether the hemp seeds have been certified by regulators. None of the products may contain more than 0.3 percent THC—the upper limit for what qualifies as hemp under both state and federal law.
Meanwhile, Montana voters are set to decide on Tuesday whether the state will legalize hemp’s more infamous cousin, high-THC marijuana. According to a poll released this week, passage looks likely: The survey, conducted by Montana State University at Billings, found that 54 percent of likely voters plan to support legal cannabis on the ballot. Another 38 percent said they were opposed, while 7 percent remained undecided.
At the federal level, officials at the Drug Enforcement Administration are still working to revise rules around marijuana and hemp to reflect Congress’s move to legalize hemp broadly in 2018. While the public comment on the proposals closed earlier this month, nine members of Congress cautioned the agency against adopting its proposed changes, warning some could put hemp producers at risk of criminal liability. Already a number of arrests and seizures have been made by law enforcement officers confused whether products were legal hemp or illicit marijuana.
The U.S. Department of Agriculture (USDA), meanwhile, has faced separate criticism over its own proposed hemp rules, though it has been more proactive in addressing them. Following significant pushback from the industry over certain regulations it views as excessively restrictive, the agency reopened a public comment period, which closed again this month.
USDA is also planning to distribute a national survey to gain insights from thousands of hemp businesses that could inform its approach to regulating the market.
Photo courtesy of Brendan Cleak
Missouri Launches Medical Marijuana Sales At State’s First Dispensaries
Less than two years after Missouri voters approved a ballot measure to legalize medical marijuana, dispensaries made the state’s first cannabis sales to patients on Saturday.
N’Bliss Cannabis opened the doors of two separate St. Louis County locations, in Ellisville and Manchester.
I was honored to watch Larry, a cancer survivor, and his wife Sue, an RN, make the state’s first legal medical cannabis purchase this morning in St Louis. @mocanntrade @NewApproachMO pic.twitter.com/rCudrkdbfI
— Jack Cardetti (@jackcardetti) October 17, 2020
“Missouri patients have always been our north star as we work to implement the state’s medical marijuana program,” Dr. Randall Williams, director of the Missouri Department of Health and Senior Services, said in a press release. “We greatly appreciate how hard everyone has worked so that patients can begin accessing a safe and well-regulated program.”
Officials have touted the speed with which they have gotten the voter-approved cannabis program off the ground, saying it is “one of the fastest implementations of a medical marijuana program in the United States.”
“A tremendous amount of work has occurred by the licensed facilities and our team to get us to this point, and we continue to hear from more facilities that they are ready or almost ready for their commencement inspection,” Lyndall Fraker, director of the Section for Medical Marijuana Regulation, said in a press release. “We look forward to seeing these facilities open their doors to serve patients and caregivers.”
— Mo Health & Sr Srvcs (@HealthyLivingMo) October 17, 2020
The impending launch of sales on Saturday was first announced by the Missouri Medical Cannabis Trade Association on Friday and reported by The Springfield News-Leader.
The wait is finally over! Tomorrow morning at 9am @NBlissCannabis will open the doors to their Ellisville and Manchester locations for the first medical marijuana sales in Missouri! Congrats to the whole N'Bliss team! The #MOMMJ industry is up and running! pic.twitter.com/wyZIcoyLBv
— MoCannTrade (@mocanntrade) October 16, 2020
The state, which has so far licensed 192 dispensaries and expects most of them to open their doors by the end of the year, posted an interactive map that tracks the status of approved medical marijuana businesses.
For months, regulators have been caught up in lawsuits and appeals challenging their licensing decisions, with revenues that would otherwise go to supporting veteran services instead being allocated to covering legal costs.
Missouri isn’t the only state to see medical cannabis sales launch this weekend. Virginia’s first medical marijuana dispensary also held its grand opening on Saturday.
Meanwhile, recreational sales of marijuana rolled out in Maine last week—four years after voters there approved a legalization ballot measure.
Illinois Continues Record-Breaking Marijuana Sales Streak, New State Data For September Shows
For the fifth month in a row, Illinois is again reporting record-breaking marijuana sales, the state Department of Financial and Professional Regulation announced on Monday.
Despite the coronavirus pandemic, Illinois has seen escalating cannabis sales month-over-month. In September, consumers purchased more than 1.4 million marijuana products worth a total of nearly $67 million. Almost $18 million of those sales came from out-of-state visitors.
In August, the total sales reached about $64 million—the previous monthly record. The new adult-use sales figures don’t include data about purchases made through the state’s medical cannabis program.
This latest data seems to support the notion that the state’s marijuana market is “recession-proof” and “pandemic-proof,” as a top regulator said in August.
State officials have emphasized that while the strong sales trend is positive economic news, they’re primarily interested in using tax revenue to reinvest in communities most impacted by the drug war. Illinois brought in $52 million in cannabis tax revenue in the first six months since retail sales started in January, the state announced in July, 25 percent of which will go toward a social equity program.
“We were not doing this to make as much money as fast as we possibly could,” Toi Hutchinson, senior cannabis advisor to Gov. J.B Pritzker (D), said. “We were actually doing this for people,” with a focus on supporting communities most impacted by the drug war.
In May, the state also announced that it was making available $31.5 million in restorative justice grants funded by marijuana tax revenue.
That said, ensuring an equitable market as promised hasn’t been easy. Regulators have recently faced lawsuits after dozens of would-be social equity licensees were denied an opportunity to participate in a licensing lottery over alleged problems with their applications. The state said it would approve 75, but only 21 ultimately qualified—and critics complain that the resources it takes to submit an acceptable application creates barriers for the exact people the special licenses are supposed to help.
The governor announced last month that new procedures would be implemented allowing rejected applicants to submit corrected forms. But on Monday, three investors who are finalists from the initial round filed a lawsuit against the state, alleging that the administration’s decision to permit resubmissions was politically motivated and illegal.
For now, the out-of-state sales data seems to support Pritzker’s prediction during his State of the State address in January that cannabis tourism would bolster the state’s coffers.
Prior to implementation, the pardoned more than 11,000 people with prior marijuana convictions.
Over in Oregon, officials have been witnessing a similar sales trend amid the global health crisis. Data released in August reveals that the state saw about $106 million in medical and recreational cannabis sales, marking the third month in a row that sales exceeded $100 million.