Welcome to our weekly roundup of CBD and hemp-related legal and regulatory news:
CBD
HHS urged to take actionon CBD regulation
The Council for Federal Cannabis Regulation (CFCR) requested a meeting with HHS Secretary Xavier Becerra to address what it says is a public health crisis "unfolding with increasing severity" due a "choke point" in the drug exclusion rule under the Food, Drug and Cosmetic Act that's preventing the FDA from regulating cannabidiol and products containing the chemical. The organization said the FDA's reading of the "exclusionary clauses" of the federal law "has needlessly hamstrung the agency while untested, unregulated, sometimes dangerous CBD products continue to proliferate throughout the country." It added it's critical that the CFCR and HHS work together to overcome the restrictions of the drug exclusion rule. Law 360 (sub. req.)
Federal legislation needed to clarify treatment of CBD products by regulators
December 16, 2021
Two bills introduced in the Senate, the Hemp Access and Consumer Safety Act and the Cannabis Administration and Opportunity Act, and one in the House of Representatives, the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021, would alter regulation of CBD products. The proponents of these bills argue there needs to be federal legislation or further FDA action to clarify the treatment of CBD products under federal law. The Regulatory Review
HEMP
Va.'s plan to regulate hemp production gets final nod from USDA
The approval comes ahead of Jan. 1, 2022, when hemp production must comply with 2018 Farm Bill provisions and the USDA's Domestic Hemp Production Program regulations. The Va. Department of Agriculture and Consumer Services (VDACS) is working to communicate the federal requirements to industrial hemp growers and is accepting applications for trained sampling and testing laboratories. The state's USDA-approved program includes the following changes:
- Hemp producer applicants must submit a criminal history report to VDACS;
- Registered hemp growers must test hemp crops for THC concentration 30 days before each lot is harvested by private sampling agents and testing laboratories; and
- Registered growers must report crop information and location to USDA's Farm Service Agency.
If the USDA provides more flexibility, VDACS will consider program modifications. Hemp Industry Daily
N.Y.'s Cannabis Control Board approves rules for smokable hemp
The regulator approved additional rules to regulate the state's CBD products, including new licenses, labeling requirements and the creation of a "craft" designation for small hemp farmers and CBD product manufacturers. The rules, which will undergo a 60-day period of public review, build off the regulations approved by the CCB at its Nov. meeting regarding the testing, labeling and packaging of cannabinoid hemp products. The rules require product labels to include the state or country of origin for the hemp used and create a license for hemp "farm-processors" - a designation for farmers that bring their hemp directly to market in its raw, smokable flower form. Other rules change the CBD cap in dietary supplements from 75 mg to 100 mg and raise the permitted THC concentration of intermediate hemp extract from 3% to 5%. Law 360 (sub. req.)
Va.'s plan to regulate hemp production gets final nod from USDA
The approval comes ahead of Jan. 1, 2022, when hemp production must comply with 2018 Farm Bill provisions and the USDA's Domestic Hemp Production Program regulations. The Va. Department of Agriculture and Consumer Services (VDACS) is working to communicate the federal requirements to industrial hemp growers and is accepting applications for trained sampling and testing laboratories. The state's USDA-approved program includes the following changes:
- Hemp producer applicants must submit a criminal history report to VDACS;
- Registered hemp growers must test hemp crops for THC concentration 30 days before each lot is harvested by private sampling agents and testing laboratories; and
- Registered growers must report crop information and location to USDA's Farm Service Agency.
If the USDA provides more flexibility, VDACS will consider program modifications. Hemp Industry Daily
Ore. urged to put proposed rules for hemp, cannabis regulation on hold
The U.S. Hemp Roundtable asked the Oregon Liquor and Cannabis Commission (OLCC) to pause finalizing and implementing its proposed rules for hemp and cannabis regulation in the state, saying they'are not based on science and set arbitrary thresholds and burdensome requirements. While the organization fully supports the state's bill authorizing the OLCC to adopt rules and regulations around hemp and cannabis products, it says the proposed rules "go beyond the legislative intent by extending restrictions and retail prohibitions to a wide range of non-intoxicating hemp products." The U.S. Hemp Roundtable said the proposed rules were developed without scientific basis or survey of existing products in the marketplace and, if finalized, would have a negative impact on the hemp industry in Ore., particularly affecting farmers and businesses. Law 360 (sub. req.)
Growers take advantage of Delta-8 loophole in Wis.
Wis.-based companies are capitalizing on a loophole in state and federal law that allows the sale of Delta-8. Although the state's legal CBD market permits the sale of topical oils and other products used to treat seizures, aches and anxieties, these products have a cap on the amount of THC that delivers the high (Delta-9). Federal law explicitly outlaws the production, sale and possession of Delta-9 THC, but the 2018 Farm Bill is silent on Delta-8, which is chemically similar and also produces a high. "Right now, there is no regulation," said Jeremy Smith, president of Tabease, a Waukesha-based company that sells Delta-8 mints. "It is the Wild West," he said, adding that it's getting to the point where the industry needs regulation. Wisconsin Public Radio
Hemp co. loses bid for partial summary judgment over $1.2M deal
Natural ingredients manufacturer Layn USA and its Hemprise affiliate lost a bid for partial summary judgment in a Colo. hemp supplier's suit over a failed $1.2-million business deal. In their motion for partial summary judgment, the defendants argued they followed a contract they entered into with Moose Agricultural and Colorado Hemp Solutions. They contended that when they sent the supplier's hemp for testing, it didn't have the THC and CBD levels required by a contract the companies signed. However, their bid was denied by U.S. District Judge R. Brooke Jackson, who found Layn is still liable for damages even though it assigned and transferred its duties to Hemprise after signing the original contract. Law 360 (sub. req.)
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