Vicente LLP Hemp Update: December 2024
Dec 17, 2024
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Federal Updates
An Extension of the 2018 Farm Bill is Likely
Key programs authorized under the 2018 Farm Bill are set to expire on December 31, 2024. Congressional lawmakers are racing to finalize a one-year extension to the 2018 Farm Bill but disagreements remain over details.
USDA Delays DEA-Lab Testing Requirement for Hemp
In November, the U.S. Department of Agriculture announced it would further extend the deadline for federally approved hemp to be tested at Drug Enforcement Administration-licensed labs. The deadline has been pushed from December 31, 2024 to December 31, 2025.
Proposed “Cannabinoid Safety and Regulation Act” Would Regulate Hemp and Cannabinoids
Sen. Ron Wyden (D-OR) has introduced a new bill that would create a federal regulatory framework for hemp-derived cannabinoids, allowing states to set their own rules for products such as CBD while also empowering the Food and Drug Administration (FDA) to ensure that certain safety standards are met in the marketplace—including making sure that products aren’t marketed to children. Read more about the proposed regulations.
Senate Farm Bill Draft Proposes Major Hemp Regulation Changes
Senator Stabenow (D-OH) introduced a version of the Farm Bill that would alter the federal definition of “hemp” and distinguish it from “industrial hemp” in an effort to close loopholes for hemp businesses selling and producing intoxicating hemp products. The updated definition of “hemp” in Stabenow’s draft Farm Bill would change the current standard from 0.3% delta-9 THC to a standard of 0.3% total THC, including THCA.
State & District Updates
California Hemp Industry Faces Major Regulatory Setbacks
In late September, several hemp industry businesses and the U.S. Hemp Roundtable trade group filed a lawsuit against the California Department of Public Health to overturn the new California emergency regulations banning hemp-derived products containing any “detectable” amount of THC. The judge overseeing the case found that the plaintiffs had provided insufficient evidence to show that the emergency regulations resulted in irreparable harm to the industry and denied the plaintiffs' request. The plaintiffs have since filed a request to dismiss the lawsuit.
Hawaii Amends Regulations to Allow Low-Dose THC Products
Governor Green approved amendments to Hawaii Department of Health interim rules early this month to allow low-dose hemp gummies and beverages.
Illinois Delays New Hemp Regulations Due to Industry Outcry
Final approval of the state’s new hemp regulations was set for November 12, 2024, but after several small businesses in the industry opposed the plan, the new regulations have been put on hold. The regulations have been in the works for two years. A new date for rule finalization has not been announced.
Illinois Delays New Hemp Regulations Due to Industry Outcry
Final approval of the state’s new hemp regulations was set for November 12, 2024, but after several small businesses in the industry opposed the plan, the new regulations have been put on hold. The regulations have been in the works for two years. A new date for rule finalization has not been announced.
Judge Gives Partial Win to New Jersey Businesses that Challenged the State’s New Hemp Law
A federal judge ruled partially in favor of the hemp businesses that sued New Jersey state officials to stop enforcement of the state’s new law restricting sales of intoxicating hemp products. While the federal judge agreed that some of the law's provisions violated the U.S. Constitution’s dormant commerce clause, other provisions of the law, including the age restriction of 21+, remain in effect.
North Carolina Sting Operation Targets 100+ Vape Shops Illegally Selling Products Aimed at Youths
During a six-month-long tri-county investigation throughout Cumberland, Balden, and Robeson counties, law enforcement officials made undercover purchases at more than 100 different vape shops. The Drug Enforcement Administration supported local efforts. Search warrants were executed at various shops, and illegal THC products, including those appealing to younger people, were found.
Homeland Security and South Carolina Law Enforcement Division Seize Illegal THC Products from Retail Warehouse
In partnership with the Department of Homeland Security, the South Carolina Law Enforcement Division (SLED) conducted a joint investigation that led to the arrest of two brothers who were holding illegal THC products in a warehouse. The seized products include different variations of vape pens, liquids, edibles, and waxes that were labeled as fruit and candy flavors and appealing to minors. The brothers have been charged with several violations of the state’s drug laws.
Tennessee Issues New Hemp Regulations for Producers, Retailers and Products
On September 27, the Department of Agriculture introduced new permanent rules for hemp and hemp-derived cannabinoid products, as well as for hemp producers and retailers. Among the changes are regulations surrounding the retail sale of THCA. Previously, the only requirement placed on hemp-derived products was to contain less than 0.3% delta-9 THC. Now, products must also contain less than 0.3% THCA post-decarboxylation.
Ongoing Delta-8 THC Legal Battle Moves to the Texas Supreme Court
The Delta-8 THC battle in Texas continues, with the arena now moving to the Texas Supreme Court. On August 21, 2024, the Texas Department of State Health Services filed an opening brief with the Texas Supreme Court in the case Texas Department of State Health Services v. Sky Marketing Corp. as part of an ongoing effort to ban D8 in Texas, a battle the agency has been waging since 2021.
Texas Lieutenant Gov. Launches Initiative to Ban THC
Lt. Governor Dan Patrick recently announced new legislation that would ban the sale of consumable THC throughout the state, including in consumable hemp products. Senate Bill 3, if enacted, would override the 2019 Texas law that allowed consumable products with small doses of non-intoxicating delta-9 THC. The text of Senate Bill 3 has yet to be made publicly available.
DEA Conducts Joint Raid in Texas on Vape Shops Selling High-THC Products
Earlier this fall, several Texas vape shops were raided for allegedly selling products exceeding legal THC limits, sparking debate over interpretations of the 2018 Farm Bill and the legal gray area of cannabinoids like Delta-8 and THCA. This Insights post examines the seized products' THC levels, the DEA’s stance on synthetic THC, and the definition of hemp.
International Updates
Italy May Ban Hemp Flower
Eight years ago, Italy’s Parliament authorized trade in hemp, but the country’s conservative Prime Minister, Giorgia Meloni, says the 2016 law was too lax and wants to ban all hemp-derived products. This infuriates local entrepreneurs who say the move could cost thousands of jobs and imperil millions of euros of investments.
UK Agency Recommends Raising THC Threshold for Industrial Hemp in Line with EU and US
The United Kingdom’s Advisory Council on the Misuse of Drugs (ACMD) published an official recommendation that the THC limit on industrial hemp should be raised from 0.2% to 0.3%, bringing it in line with the European Union and the United States. This could have major implications for UK hemp farmers and the hemp industry at large.
General Updates
Hemp Tech Firm Receives $8.4M for Sustainable Construction and Automotive Alternatives
The U.S. Department of Energy (DOE) awarded $8.42 million to Hempitecture, a technology startup, to support the creation of an industrial hemp processing and manufacturing facility in Tennessee. The funding was awarded under the Advanced Manufacturing and Recycling Grant Program, offered through DOE’s Office of Manufacturing and Energy Supply Chains (MESC).
Indigenous Researchers Awarded $1.6M to Study Hemp for Soil Cleanup
In an initiative backed by the U.S. Environmental Protection Agency (EPA), Indigenous researchers from the Aroostook Band of Micmacs Native American Tribe are studying hemp’s potential to remove PFAS or “forever chemicals” through phytoremediation.
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