The U.S. Department of Agriculture (USDA) released draft rules for hemp manufacturing on Tuesday and said it will soon begin accepting state regulatory plans for the newly legal crop.
The interim final rule on hemp will be formally published in the Federal Register on Thursday, with a 60-day public comment period to follow. Once the rules are finalized, USDA will begin to evaluate states’ and tribes’ submitted regulations plans, and any jurisdictions that do not send proposals will fall under the department’s general guidelines for producing the crop, which was federally legalized under the 2014 Farm Bill.
The regulations cover the requirements for where hemp can be grown, THC testing standards, the disposal process for crops that don’t meet federal standards and licensing protocols.
The regulation provides specific details on the process and criteria for USDA’s review of plans received from states and Indian tribes regarding the production of #hemp.
For more info and resources: https://t.co/E0qdkW3iY9 pic.twitter.com/7lMx3Ou484
— USDA Ag Mktg Service (@USDA_AMS) October 29, 2019
“At USDA, we are always excited when there are new economic opportunities for our farmers, and we hope the ability to grow hemp will pave the way for new products and markets,” USDA Secretary Sonny Perdue said in a press release.
At USDA, we are always excited when there are new economic opportunities for our farmers, and we hope the ability to grow hemp will pave the way for new products and markets. More on our new Domestic Hemp Production Program HERE: https://t.co/7Bz7zcGQmK pic.twitter.com/bkSLcM91mI
— Sec. Sonny Perdue (@SecretarySonny) October 29, 2019
“We have had teams operating with all hands-on-deck to develop a regulatory framework that meets Congressional intent while seeking to provide a fair, consistent, and science-based process for states, tribes, and individual producers who want to participate in this program,” he added.
After the regulations are finalized, USDA said it will make a determination about state or tribal plan applications within 60 days of their submission. Jurisdictions that submit applications to process hemp under USDA’s guidelines rather than their own local rules will be reviewed within 30 days of their submission. Prospective state or tribal applicants can obtain the necessary forms here.
The interim rule will sunset in two years, after which point USDA will issue final regulations.
Multiple lawmakers and industry stakeholders celebrated the announcement, emphasizing that federal guidelines will further empower hemp businesses to thrive.
Shawn Hauser, partner and chair of the hemp and cannabinoids practice group at Vicente Sederberg LLP, said that “there is an undeniable sense of progress that comes with reading federal regulations for hemp farming in the U.S.—something that was outlawed for decades, which so many people fought to achieve.”
But not all of the specific details are positive, she said.
“Many people will be disappointed to see such stringent enforcement provisions related to concerns about hemp exceeding legal THC limits. For example, the rules require disposal of ‘hot hemp’ by a federal agent, even if there are reasonable options to remediate it and avoid loss of a crop,” Hauser said, referring to plants that exceed legal THC limits. “These provisions feel like relics of prohibition and come at a risk and expense to farmers, but they do not come as a surprise. It takes time to transition from prohibition to a regulatory model.”
USDA is simultaneously issuing separate guidelines for sampling and testing procedures for hemp. Samples, which have to be collected about two weeks prior to a crop’s anticipated harvest date, must be tested at Drug Enforcement Administration (DEA)-registered laboratories.
📢📢 @SecretarySonny today announced the establishment of the U.S. Domestic Hemp Production Program. This program, as required by the 2018 #FarmBill, creates a consistent regulatory framework around #hemp production throughout the U.S. https://t.co/5edNG1FnZ3 pic.twitter.com/xgSff5uDJm
— Dept. of Agriculture (@USDA) October 29, 2019
Hemp is defined under the farm bill as having 0.3 percent THC on a dry weight basis. USDA clarified that testing protocol will involve an analysis of the total THC content, including THCA, which can be converted into the traditional psychoactive compound upon decarboxylation.
The plan also establishes “an acceptable hemp THC level” that accounts for uncertainty in the cultivation process.
“For example, if the reported delta-9 tetrahydrocannabinol content concentration level on a dry weight basis is 0.35% and the measurement of uncertainty is +/- 0.06%, the measured delta-9 tetrahydrocannabinol content concentration level on a dry weight basis for this sample ranges from 0.29% to 0.41%,” USDA explained. “Because 0.3% is within the distribution or range, the sample is within the acceptable hemp THC level for the purpose of plan compliance.”
If the THC content is found to be unacceptable, however, it must be destroyed by someone authorized under the Controlled Substances Act to handle marijuana, such as a DEA registrant. A USDA official confirmed on a press call Thursday that hemp that falls outside of the acceptable THC level will not be covered by federal crop insurance.
Another provision of concern for advocates is the implementation of a 10-year ban on participation in the hemp industry by individuals with prior felony drug convictions. USDA said that ban will only apply to “key participants” such as chief executives who have a direct financial interest in the business. That means personnel such as maintenance workers will be exempt from the ban, which is in line with the narrow interpretation that advocates pushed for.
The draft document does not address the rules around whether smokable hemp flowers may be sold, which is likely because such products would fall under separate jurisdiction of the Food and Drug Administration (FDA). That absence of rules doesn’t necessarily indicate that USDA is permitting smokable hemp but the lack of clarity on the issue for now leaves room for interpretation at the state level.
The public release of the proposed regulations comes days after the White House Office of Management and Budget (OMB) finalized its review of USDA’s interim final rule. Once the regulations are finalized, hemp farmers will be eligible for a series of federal agriculture programs, including crop insurance. Previously, USDA said farmers could only gain coverage under the 2014 version of the farm bill.
The department also clarified the rules on importing and exporting hemp seeds and plants this month—however, the interim rule states that it “does not affect the exportation of hemp” and notes that USDA will work with partners on an exportation plan if there’s sufficient interest. USDA also said in August that it would accept intellectual property applications for seed-propagated hemp.
Meanwhile, lawmakers are still pushing FDA to issue rules for CBD products, which most hemp businesses are using the crop for at this point. The agency said their rulemaking process is complicated by the fact that CBD exists as an FDA-approved drug and hasn’t been previously added to the food supply. Former Commissioner Scott Gottlieb said it may take years before regulations are issued unless Congress takes action.
Read the draft USDA hemp rules below:
This piece was updated to include information about USDA’s proposed regulations and to include comments from Hauser.
Photo courtesy of Pixabay.
Santa Cruz City Council Approves Psychedelics Decriminalization Measure
The Santa Cruz, California City Council unanimously voted in favor of a resolution on Tuesday that would effectively decriminalize a wide range of psychedelics by making them among the city’s lowest law enforcement priorities.
The measure—which was originally sponsored by then-Vice Mayor Justin Cummings (D), who’s since become mayor—says the city shouldn’t expend “resources in the investigation and arrest of persons twenty-one (21) years of age and older solely for the personal use and personal possession of Entheogenic Plants and Fungi” such as psilocybin, ayahuasca and ibogaine.
It further stipulates that possession and use of psychedelics by adults “should be considered among the lowest law enforcement priorities for the City of Santa Cruz.”
This is the latest in a series of local policy victories for the psychedelics reform movement, which kicked off with a successful ballot measure vote in Denver to decriminalize psilocybin mushrooms last May. Oakland’s City Council then unanimously approved a measure to make a broad range of plant- and fungi-derived psychedelics among the city’s lowest law enforcement priorities.
Now activists across the country are hoping to replicate that resolution, with organizers in roughly 100 cities aiming to decriminalize certain psychedelic substances through ballot initiatives and legislative action at the local level.
In November, Santa Cruz’s City Council heard testimony from the group behind the resolution, Decriminalize Santa Cruz. It was then referred to the Public Safety Committee and was amended prior to returning to the full body for a final vote.
Councilmembers revised the original measure in order to “to recognize the need for harm reduction and education for youth and families about drug prevention.” A provision was also inserted to clarify that “the sale, use and cultivation of Entheogenic Plants and Fungi to and by minors should be considered an exception that should require appropriate investigation by the Santa Cruz City Police Department.”
The word “cultivation” was also removed from provisions specifying the measure’s scope. But before the full Council vote on Tuesday, several advocates used the public comment portion of the meeting to urge that it be added back in, and members adopted that request before approving the final resolution.
“With possession and use being inserted without cultivation, that actually encourages the black market because there’s nowhere else to go,” Cummings, the mayor, said. “If people are are cultivating at themselves they know exactly what they’re producing.”
Activists celebrated their city becoming the third in the U.S. in less than a year to decriminalize certain psychedelic substances.
“These eight months we’ve been working on the resolution, I’ve met so many people whose lives were saved by entheogenic plants and fungi,” Julian Hodge, a founder of Decriminalize Santa Cruz and a member of Students for Sensible Drug Policy, told Marijuana Moment. “The Santa Cruz City Council took a great step to help those people today. I am incredibly proud to be part of this movement, and can’t wait to see the change we continue to make in the future.”
Another provision of the measure instructs the city’s state and federal lobbyists to “work in support of decriminalizing all entheogenic psychoactive plants, and plant and fungi-based compounds listed in the Federal Controlled Substances Act.”
Beyond Decriminalize Santa Cruz, a newly formed group called Project New Day also advocated for the reform move. The organization, which is focused on promoting research into psychedelics for the treatment of addiction and other mental health conditions, sent a press release on Tuesday highlighting comments from a military veteran who overcame addiction with the help of medically supervised psychedelics treatment.
“Psychedelic-assisted therapy saved my life,” Dylan Jouras said. “It’s important that people know there is an effective way to get better from addiction and deep mental health issues.”
While the local Santa Cruz resolution wouldn’t allow legal sales of psychedelics, another group of advocates is currently collecting signatures toward placing a broad statewide psilocybin legalization initiative before California voters on the November ballot.
In Oregon, organizers are hoping to put a proposal before voters that would legalize psilocybin for therapeutic use. Separately, a campaign in that state is pushing a measure to decriminalize possession of all drugs with a focus on funding substance misuse treatment.
Democratic presidential candidate Andrew Yang said at an Iowa campaign stop last week that he wants to legalize psilocybin for military veterans.
New Mexico Lawmakers Approve Marijuana Legalization Bill
A New Mexico Senate committee approved a bill on Tuesday that would legalize marijuana for adult use.
With a little more than three weeks left in the state’s short 2020 legislative session, lawmakers are making clear their intent to advance the legalization proposal in a timely fashion.
The bill, which is supported by Gov. Michelle Lujan Grisham (D), cleared the Senate Public Affairs Committee in a 4-3 vote.
Sen. Jacob Candelaria (D) led the introduction of the bill before the committee, testifying that he believes “2020 is the year New Mexico becomes the third state to enact legalization of cannabis through legislative action,” following Vermont and Illinois.
“We know that New Mexicans across the state, from rural to urban centers, are with us on this issue.”
“Bringing an underground market aboveground takes a lot of deliberation, statewide input from community members and stakeholders, ingenuity and learning from other states’ experiences,” the senator, who is himself a medical cannabis patient, said. “The criminalization of cannabis disproportionately harms and criminalizes young people and people of color, sponsors violence and corruption by those who currently exclusively trade in cannabis in the black market. The current situation, our status quo that relies on a black market outside of the medical program, does nothing to curb youth access to cannabis.”
The governor included legalization in her formal 2020 legislative agenda and discussed the importance of establishing a well-regulated and equitable cannabis market in her State of the State address this month.
✅ SB 115, legalizing recreational adult-use cannabis, successfully passes out of its first committee! Recreational cannabis will be the next frontier of our economic expansion, creating 11,000 jobs across New Mexico & true economic potential for every part of the state. #SB115 pic.twitter.com/jgLnRX8UDY
— Michelle Lujan Grisham (@GovMLG) January 29, 2020
The day after Lujan Grisham’s agenda was released, lawmakers filed the legalization bill, which would allow adults 21 and older to possess and purchase marijuana from licensed retailers. The legislation also contains social justice provisions such as automatic expungements for prior cannabis possession convictions.
The proposal would not allow home cultivation; however, it does decriminalize the cultivation of up to three plants and six seedlings, making the offense punishable by a $50 fine without the treat of jail time.
Additionally, the bill would eliminate the gross receipts tax for medical cannabis sales, mandate that recreational dispensaries service registered patients and create a subsidy program for low-income patients to access marijuana.
Recreational cannabis sales would be taxed at nine percent, with revenue going toward that subsidy program in addition to a “cannabis industry equitable opportunity investment fund” to support entrepreneurs from communities most impacted by the drug war, a “community grants reinvestment fund” and a workplace training program, among other programs.
— NM Senate Democrats (@NMSenateDems) January 29, 2020
According to a fiscal analysis, the state stands to bring in nearly $6.2 million in recreational cannabis revenue in Fiscal Year 2021. By FY20204, that amounts would rise to nearly $34 million. Municipalities and counties would rake in additional revenues.
“Legalizing and regulating will bring one of the nation’s largest cash crops under the rule of law, generating an estimated between 11,000 and 13,000 jobs for New Mexicans in every corner of the state,” Candelaria said.
The legislation must still pass in two other panels—Judiciary and Finance—before it gets a full vote on the Senate floor.
This latest development at the committee-level is the product of months of work from legislators and the governor’s administration. Last summer, Lujan Grisham formed a working group tasked with reaching out to community members and stakeholders, studying various components of cannabis regulation and submitting recommendations ahead of the current session.
The final report, which was released in October, laid out a number of proposed rules and restrictions for a legal marijuana market.
Earlier last year, the New Mexico House of Representatives approved a bill to legalize marijuana but it later died in the Senate. Lawmakers did send Lujan Grisham a more limited bill to simply decriminalize cannabis possession, which she signed.
While it’s possible that the current committee-passed legislation will be amended as it makes its way to a full Senate vote, or that companion legislation could be changed in the House, recent polling shows that New Mexico residents are widely in favor of the general policy change. Three-out-of-four residents who participated in a state-funded survey that was released last month said they back legalization.
If all goes according to the governor’s plan, a final legalization bill will be delivered to her desk by the end of the session—and upon her signature, New Mexico would likely become the 12th state to legalize recreational marijuana.
That said, lawmakers in states across the U.S. are eyeing cannabis reform this year, and a marijuana legalization bill advanced in a New Hampshire House committee earlier on Tuesday.
Photo courtesy of Philip Steffan.
New Hampshire Lawmakers Approve Marijuana Legalization Bill
A New Hampshire House committee approved a bill on Tuesday that would legalize marijuana for adult use in the state.
While the legislation doesn’t provide for retail sales, it would allow individuals 21 and older to possess and gift up to three-fourths an ounce of cannabis and grow up to six plants. The model would be similar to neighboring Vermont’s non-commercial cannabis system.
The Criminal Justice and Public Safety Committee advanced the bill in a 13-7 vote.
“I think that the legalization of cannabis is more popular than the legislature itself or the governor or any other political entity in the state of New Hampshire,” Chairman Renny Cushing (D) said prior to the vote. “This is something that the people of the state of New Hampshire want. They don’t want to be treated like they’re criminals if they have a plant.”
Watch New Hampshire lawmakers discuss the marijuana legalization bill below:
This vote comes a week after the panel held a hearing on the proposal, with advocates and stakeholders testifying in favor of the reform move.
“Like most Granite Staters, this committee understands that it’s time for New Hampshire to stop prohibiting cannabis,” Matt Simon, New England political director for the Marijuana Policy Project, said in a press release. “Adults in the ‘Live Free or Die’ state should not be punished for their choice to use a substance that is objectively less harmful than alcohol.”
“Now that New Hampshire is literally surrounded by jurisdictions where cannabis is legal for adults, our current policies can no longer be justified in any way,” he said. “It’s time for the House, Senate and Gov. Chris Sununu to work together and move cannabis policies into the 21st century.”
A floor vote by the full House of Representatives is expected on February 6.
Tax-and-regulate marijuana legislation has advanced in the legislature in prior sessions, but it never arrived on the governor’s desk.
Even if it did make it that far, however, it’s unclear if Sununu, a Republican, would sign it. He’s voiced opposition to commercial legalization, and he vetoed a bill last year that would’ve allowed medical cannabis patients to cultivate their own marijuana, raising questions about whether he’d be willing to support this latest measure extending that right to all adults over 21.
In any case, the New Hampshire development comes amid a flurry of legislative activity around cannabis in the Northeast.
New York Gov. Andrew Cuomo (D) included legalization in his budget last week, as did Rhode Island’s governor, who pitched a state-run cannabis model in her plan. In New Jersey, the legislature approved a referendum to put the question of recreational legalization before voters during the November election. Top lawmakers in Connecticut are also confident that marijuana reform will advance this year. In Vermont, advocates are hopeful that lawmakers will add a legal sales component to the state’s current noncommercial cannabis law.
Photo courtesy of Philip Steffan.