Vicente Sederberg LLP Hemp Update: July 2022
Jul 28, 2022
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Federal Updates
2023 Farm Bill: House Agriculture Subcommittee Holds Hearing on Hemp
A congressional panel held a hearing this week that touched on a wide range of hemp issues, with lawmakers and witnesses—including two state agriculture commissioners and industry representatives—highlighting reforms they would like to see made as part of the 2023 Farm Bill. Read more here and watch the committee's discussion in the video below.
Long-awaited Cannabis Administration and Opportunity Act Introduced
The Cannabis Administration and Opportunity Act (CAOA) was released last week by Senators Chuck Schumer (D-NY), Ron Wyden (D-OR) and Cory Booker (D-NJ). The Act has several provisions relating to hemp CBD, read this summary from the U.S. Hemp Roundtable.
New FDA User Fee Bill Unveiled with No “Dietary Supplement” Provisions
On July 14, Sen. Richard Burr (R-N.C.) introduced legislation that funds FDA user fee programs, but excludes language that would require manufacturers to list their dietary supplement products with FDA. This bill is distinguishable from the FDA Safety and Landmark Advancements Act (FDASLA), which would create mandatory product listings (MPL) for manufacturers and distributors of dietary supplement products. The natural products industry trade associations are opposed to any legislation including the MPLs. Learn more.
FDA Officials Wrestle with CBD in Day-Long Meeting on Science “Challenges”
After a day-long meeting on the science challenges of regulating CBD, the FDA still has more questions than answers. But, they are making strides on conducting the research and collecting needed data to release product regulations. Read more. Related: Johnson & Johnson Urges FDA To Take Interim Steps As It Continues To Review CBD.
Bill Introduced in Senate Reflects Criticism of FDA GRAS Program
The FDA responds to the majority of GRAS (generally recognized as safe) notifications with a “no questions” letter, affirming the conclusions of qualified experts who make safety determinations of food ingredients based on publicly available scientific information. But critics maintain the GRAS program is broken, allowing manufacturers to circumvent FDA review and ultimately jeopardizing public health. Read more from Natural Products Insider.
General Updates
Federal Appeals Court’s Delta-8 Legality Ruling Adds to Hemp Product Chaos
A federal appeals court in California has found delta-8 THC products are lawful under the 2018 Farm Bill and may receive trademark protection, but the legal status of these products marketed across the U.S. is far from uniform and clear. Read the full article, authored by VS hemp attorneys Michelle Bodian and Catie Wightman.
Hemp Quality Standards Cut Delta-8 THC from Consideration
The hemp CBD industry’s leading quality standards-setting organization, U.S. Hemp Authority, proposed that buzzy delta-8 THC products do not qualify as legitimate legal products outside of marijuana dispensaries. The language in it’s newest iteration of standards now reads that prohibited hemp products “include delta-8 THC, delta-9 THC, delta-10 THC, THCO, HCH, exo-THC.” Read more.
Epilepsy Patients Navigate a Murky, Unregulated CBD Market
This article highlights the current challenges with CBD regulation, showing how epilepsy patients must navigate the sometimes-murky CBD market without the benefit of regulations, guidance from doctors, or coverage from health insurers.
Major League Baseball to Allow CBD Sponsorships
The MLB stated in a conference call on June 21 that CBD is now an “approved category” which means that teams are now allowed to sell CBD sponsorships as long as the brand has received an NSF certification (a verification that a product has no THC). Read more.
Grain & Fiber Hemp Exemption Campaign Needs Your Help!
Producers who choose to grow hemp for grain and/or fiber purposes are at very low (if any) risk of harvesting an illegal crop. Therefore, federal law should not mandate testing and instead enforce reasonable programs that require harvest designation and visual inspection of hemp fields, both of which are far less burdensome to the American farmer.
The Grain & Fiber Exemption Campaign hopes to create an exemption framework for grain and fiber industrial hemp. Learn more about the campaign at https://www.hempexemption.com/
Campaign goals:
- Draft legislation and pass a bill creating an exemption for industrial hemp grain & fiber
- Educate lawmakers about the need for exemptions and opportunities with grain & fiber
- Secure bipartisan support for the exemption framework
- Unite and mobilize advocates!
State Updates
California
Earlier this year, the California Department of Public Health (CDPH) published proposed emergency regulations detailing the registration requirements and annual fees for those who manufacture, pack, label, or warehouse hemp extract or hemp products. Persons engaged in these activities must obtain an Industrial Hemp Enrollment and Oversight Authorization (IHEO) and a product-type registration. CDPH recently posted the IHEO and product-type registrations. Read this article from Andrea Golan and Ariane Beckman for required registration details.
Louisiana
Act No. 498 (HB 758), signed by Governor Edwards on June 16, 2022, and effective immediately, amends Louisiana’s hemp law by setting maximum THC limits per serving and per package and requires consumers to be at least 21 to purchase a product that contains more than 0.5 milligrams of total THC. These new restrictions make it challenging for both retailers and enforcement to understand how to comply with and enforce Louisiana’s hemp rules and regulations. Read more about it in this VS Insights article from Andrea Golan.
Vermont
On July 1, the Vermont Agency of Agriculture, Food, and Markets (VAAFM) announced that it plans to withdraw its USDA-approved Hemp Production Plan beginning Dec. 31, 2022. To grow hemp in Vermont next year, farmers must register with the USDA.
State-by-State Hemp & Cannabinoid Compliance Guide
VS’s State-by-State Hemp & Cannabinoid Compliance Guide is an affordable, easy-to-use compliance solution to help your business navigate the ever-changing regulatory environment of hemp-derived products. Take the guesswork out of ensuring compliance with all aspects of selling hemp-derived products in different states—from packaging and labeling, to testing, distribution, and more.
Request a complimentary consultation with an attorney to discuss a customized package that best fits your needs.
Status of State and Tribal Hemp Production Plans for USDA Approval
International Updates
Vicente Sederberg Contributes to APPG for CBD Products' Business Plan to Future-Proof UK Cannabis Industry
The APPG for CBD Products recently delivered "A Plan for a Legal and Regulated UK Hemp and Cannabis Sector" to the UK Government. VS partner Shawn Hauser and VS's director of economics and research Andrew Livingston contributed to the business plan, which offers an industry analysis and series of recommendations to create a well-regulated, multi-faceted and competitive UK cannabis industry. View the plan here.
UK FSA Finalizes CBD Product List
After a long and complex process, the UK’s Food Standards Agency last week published its final list of CBD products that can be marketed in England and Wales. Read more here.
European Food Standards Agency Halts CBD Novel Foods Applications
To be fully authorized (and sold) within EU member states, a CBD product must have a novel food application with the European Food Standards Agency (EFSA). Now the EFSA has paused the processing of all CBD novel foods applications because the EFSA’s scientists “cannot currently establish the safety of cannabidiol (CBD) as a novel food due to data gaps and uncertainties about potential hazards related to CBD intake.” Before the announcement, the European agency had been processing 19 applications for CBD products, all of which are now in limbo. Read more.
Events
2022 AICPA & CIMA Agricultural Industry Conference | Aug. 8–10 | Denver, CO
VS partner Shawn Hauser will take the stage for the session “Hemp, Cannabis, and Farming Update” on August 9 at 5:10 p.m. Learn more about the conference and register here.
The Agricultural Industry Conference will be held concurrently with the AICPA & CIMA Cannabis Industry Conference, where VS partner Adam Fine will present two sessions on August 8: “The Legal and Regulatory Environment” at 1:35 p.m. and “Cannabis Regulatory Fireside Chat” at 4:40 p.m.