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U.S. Postal Service Issues Advisory On Mailing Hemp-Derived CBD

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The U.S. Postal Service (USPS) quietly issued an advisory earlier this month clarifying rules around mailing cannabis preparations, saying that “some CBD products derived from industrial hemp can be mailable under specific conditions.”

The memo also signals that USPS will further loosen restrictions in the future in light of the passage of the 2018 Farm Bill, which federally legalized industrial hemp.

For now, the current advisory, which was first reported by the marijuana law blog Kight On Cannabis, stipulates that it is legal to mail hemp-derived CBD products in compliance with research-focused provisions of the earlier 2014 version of the federal agriculture legislation.

However, postal customers must first take certain steps such as providing a signed self-certification statement and documentation confirming the hemp producer is licensed through a state agriculture department.

Hemp mailed through USPS must also contain 0.3 percent THC—a policy that’s consistent with both the 2014 and 2018 Farm Bill definitions of hemp.

“The Postal Service has received an increasing number of requests to transport CBD oil and products containing CBD in Postal Service networks,” Travis D. Hayes III, a USPS business program specialist wrote in the March 4 advisory.

The federal agency said that the new instructions are due to change, given the broader legalization of hemp and its derivatives through the 2018 Farm Bill.

“Postal employees should be aware that the Agricultural Improvement Act of 2018 was recently signed into law,” the memo says. “This legislation removes industrial hemp from regulation under the Controlled Substances Act.”

But the agency said that it would wait until the legislation “is fully implemented” before it will “modify the mailability criteria for CBD and other cannabis products.”

The U.S. Department of Agriculture (USDA) is in charge of creating and implementing general regulations for hemp—instead of the Justice Department, which formerly oversaw enforcement against the crop—but it’s not clear when those rules will be formalized. Lawmakers and stakeholders have pressured the department to get the ball rolling, and it held a listening session last week to gather input from states and other interested parties.

But Agriculture Secretary Sonny Perdue has tried to temper expectations, emphasizing the need to “proceed slowly” given the crop’s complexity and saying that USDA plans to have its regulations ready for the 2020 growing season.

“We’re proceeding very judiciously obviously because of the uniqueness of the crop hemp and its relationship to other crops that we’re not encouraging,” he said last month, referring to marijuana.

While the USPS said that it issued the advisory because it was receiving an influx of inquiries about the rules governing mailing CBD, Kight On Cannabis suggested that it was prepared as a response to a legal dispute from last year surrounding the postal service’s seizure last year of hemp-derived CBD products that had been lawfully mailed.

Read the full USPS memo on mailing hemp-derived CBD below:

USPS CBD Hemp Clarification by on Scribd

USDA Receives Hemp Legalization Feedback From States And Stakeholders

Photo courtesy of Wikimedia/Kevin Payravi.

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.

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Missouri Regulators Derail Medical Marijuana Business Ownership Disclosure Effort With Veto Threat

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Missouri regulators say they feel requiring medical marijuana business license ownership disclosures under a House-approved amendment could be unconstitutional, and they may urge the governor to veto the legislation. 

By Jason Hancock, Missouri Independent

An effort by lawmakers to require disclosure of ownership information for businesses granted medical marijuana licenses was derailed on Thursday, when state regulators suggested a possible gubernatorial veto.

On Tuesday, the Missouri House voted to require the Department of Health and Senior Services provide legislative oversight committees with records regarding who owns the businesses licensed to grow, transport and sell medical marijuana.

The provision was added as an amendment to another bill pertaining to nonprofit organizations.

Its sponsor, Rep. Peter Merideth, D-St. Louis, said DHSS’s decision to deem ownership records confidential has caused problems in providing oversight of the program. He pointed to recent analysis by The Independent and The Missourian of the 192 dispensary licenses issued by the state that found several instances where a single entity was connected to more than five dispensary licenses.

The state constitution prohibits the state from issuing more than five dispensary licenses to any entity under substantially common control, ownership or management.

On Thursday, a conference committee met to work out differences in the underlying bill between the House and Senate.

Sen. Eric Burlison, a Republican from Battlefield and the bill’s sponsor, called the medical marijuana amendment an “awesome idea. I think it’s awesome.”

However, he said opposition from the department puts the entire bill in jeopardy.

“The department came to me,” he said, “and said they felt that this was unconstitutional.”

DHSS has justified withholding information from public disclosure by pointing to a portion of the medical marijuana constitutional amendment adopted by voters in 2018 that says the department shall “maintain the confidentiality of reports or other information obtained from an applicant or licensee containing any individualized data, information, or records related to the licensee or its operation… .”

Alex Tuttle, a lobbyist for DHSS, said if the bill were to pass with the medical marijuana amendment still attached, the department may recommend Gov. Mike Parson veto it.

The threat of a veto proved persuasive, as several members of the conference committee expressed apprehension about the idea of the amendment sinking the entire bill.

Merideth said the department’s conclusion is incorrect. And besides, he said, the amendment is narrowly tailored so that the information wouldn’t be made public. It would only be turned over to legislative oversight committees.

Rep. Jered Taylor, R-Republic, chairman of the special committee on government oversight, said the amendment is essential to ensure state regulators “are following the constitution, that they’re doing what they’re supposed to be doing.”

The medical marijuana program has faced intense scrutiny in the two years since it was created by voters.

A House committee spent months looking into widespread reports of irregularities in how license applications were scored and allegations of conflicts of interest within DHSS and a private company hired to score applications.

In November 2019, DHSS received a grand jury subpoena, which was issued by the United States District Court for the Western District. It demanded the agency turn over all records pertaining to four medical marijuana license applications.

The copy of the subpoena that was made public redacted the identity of the four applicants at the request of the FBI. Lyndall Fraker, director of medical marijuana regulation, later said during a deposition that the subpoena wasn’t directed at the department but rather was connected to an FBI investigation center in Independence.

More recently, Parson faced criticism for a fundraiser with medical marijuana business owners for his political action committee, Uniting Missouri.

The group reported raising $45,000 in large donations from the fundraiser. More than half of that money came from a PAC connected to Steve Tilley, a lobbyist with numerous medical marijuana clients who has been under FBI scrutiny for more than a year.

This story was first published by Missouri Independent.

GOP Senator Who Trashed Marijuana Banking Amendment Years Ago Is Now Cosponsoring Reform Bill

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Colorado Sold More Than Half A Billion Dollars In Legal Marijuana In 2021’s First Three Months

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More than $10.5 billion in cannabis has been sold in Colorado since it was legalized in 2014. Those sales translate into over $1.7 billion in tax revenue that goes towards public schools, infrastructure projects and local government programs.

By Robert Davis, The Center Square

Colorado’s marijuana sales eclipsed the half-billion dollar mark in the first quarter of 2021, the state Department of Revenue (DOR) said on Tuesday.

In all, marijuana sales were over $560 million between January and March. More than $10.5 billion in marijuana has been sold in Colorado since it was legalized in 2014.

Those sales translate into over $1.7 billion in tax revenue that goes towards public schools, infrastructure projects and local government programs.

DOR compiles its monthly marijuana sales report by adding the state’s medical and recreational sales together. The total does not include marijuana accessories or any products that do not contain medical marijuana.

Marijuana sales reached $207 million in the month of March alone. In exchange, the state collected $39.6 million in taxes.

Marijuana tax revenue is collected through three state taxes: a 2.9 percent sales tax on marijuana sold in stores, a 15 percent tax on retail marijuana and a 15 percent retail marijuana excise tax.

State law requires 71 percent of the total to be remitted to the marijuana tax cash fund, a budget account that is statutorily required to fund health care, health education, substance abuse prevention and treatment programs and law enforcement.

The remaining 29 percent is then subdivided between the state public school fund and the general fund. Schools receive just over 12 percent of the total while the general fund receives greater than 15 percent.

In April, the public school fund received over $14 million. The account supports school construction projects and is controlled by the School Board Investment Fund, a three-member panel responsible for maintaining the fund’s capital that was established in 2016.

Meanwhile, the marijuana tax cash fund received over $16 million and the general fund received $3.5 million.

This story was first published by The Center Square.

Congressional Bill To Federally Legalize Marijuana Filed By Republican Lawmakers

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Missouri Medical Marijuana Business Ownership Info Would Be Disclosed Under House-Approved Amendment

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The state isn’t supposed to issue more than five dispensary licenses to any entity under substantially common control, ownership or management—but an analysis found instances where a single entity was connected to more than five licenses.

By Jason Hancock, Missouri Independent

The Missouri House voted Tuesday afternoon to require state regulators to turn over ownership information for businesses granted medical marijuana licenses to legislative oversight committees.

The amendment, which was approved 82-59, was sponsored by Rep. Peter Merideth, D-St. Louis. He said the Department of Health and Senior Service’s decision to deem ownership records confidential has caused problems in providing oversight of the program.

Tuesday’s vote came a day after analysis by The Independent and the Missourian of the 192 dispensary licenses issued by the state found several instances where a single entity was connected to more than five dispensary licenses.

According to the constitution, the state can’t issue more than five dispensary licenses to any entity under substantially common control, ownership or management.

But because DHSS has steadfastly withheld any ownership information about license holders from public disclosure, it’s impossible to determine who owns what.

The situation has bred suspicion, especially in light of more than a year of scrutiny by state lawmakers into widespread reports of irregularities in how license applications were scored and allegations of conflicts of interest within DHSS and a private company hired to score applications.

“We’ve asked the department: ‘Are there any entities that have complex ownership structures so that someone that owns one license actually owns or has a controlling interest in a whole bunch of others?’” Merideth said. “The department said, ‘nope.’ We asked for records to confirm that, and the department said, ‘nope.’”

He has no reason to trust the department, Merideth said, “based on how this program has been managed so far,” adding later that DHSS is in “dire need of accountability and transparency.”

His amendment would not require DHSS to make ownership information publicly available. The department would only be required to turn records over to legislative committees upon request.

Joining him in support of the amendment was Republican Rep. Jered Taylor of Republic, who is chairman of the special committee on government oversight.

“The department should be disclosing this information,” he said, saying he’d actually support going further and making the information publicly available.

Taylor later added: “If we want to do our jobs correctly, we have to have the information.”

DHSS justifies withholding the information from public disclosure by pointing to a portion of the medical marijuana constitutional amendment adopted by voters in 2018 that says the department shall “maintain the confidentiality of reports or other information obtained from an applicant or licensee containing any individualized data, information, or records related to the licensee or its operation… .”

Rep. Shamed Dogan, R-Ballwin, said DHSS is asking lawmakers and the public to trust that they are enforcing limits on license ownership.

“When I as a Republican I hear ‘trust us’ from the government,” he said, “I usually say no. Trust but verify.”

Merideth’s amendment was added to a Senate bill pertaining to nonprofit organizations. The legislation now heads back to the Senate, where it can either vote to send it to the governor or request a conference committee to work out differences with the House.

This story was first published by Missouri Independent.

Louisiana House Approves Marijuana Decriminalization Bill As Other Reforms Advance

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