Vicente Sederberg LLP Hemp Update: September 2021
Sep 14, 2021
Sign up for Hemp and Cannabinoid Industry updates from Vicente Sederberg LLP
Federal Updates
FDA and CDC Warn Consumers About Hemp-Derived Delta-8 THC Products
The U.S. Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) issued warnings to consumers about the potential risks of Delta-8 THC. Importantly, neither agency proposed banning the production or sale of Delta-8 THC, but the CDC encouraged consumers to be aware of possible misleading labeling and the ingredient’s psychoactive qualities. Read the FDA consumer update “5 Things to Know about Delta-8 Tetrahydrocannabinol – Delta-8 THC” and the CDC health alert “Increases in Availability of Cannabis Products Containing Delta-8 THC and Reported Cases of Adverse Events” for more details.
FDA Rejects Applications for CBD as Dietary Supplements
The FDA recently rejected applications for full spectrum hemp cannabidiol products to be sold as a dietary ingredient. While the FDA unsurprisingly maintains its status quo with these rejections, the industry did get more insight into factors the FDA used to differentiate “full spectrum” from “CBD.” For more insight into this topic, read Shawn Hauser’s article “What is the FDA saying about Full Spectrum Hemp? Key Takeaways from Rejections of NDINs.”
USDA Hemp Acreage and Production Survey
This October, USDA’s National Agricultural Statistics Service will mail its first Hemp Acreage and Production Survey. The survey will provide needed data about the hemp industry to assist producers, regulatory agencies, state governments, processors, and other key industry entities. Producers may complete the survey online or complete and return the survey by mail.
Federal & State Overview: Regulation of Products Containing ‘Minor’ Hemp-Derived Cannabinoids
Move over CBD, there are new cannabinoids in town. CBD has been the most sought-after and utilized hemp-derived cannabinoid in consumer products, but due in part to technological advances, various other hemp-derived cannabinoids—including CBG, CBN, and CBC—are now creating a well-deserved buzz. Like any new hemp-derived product, it is crucial for businesses to understand the legal landscape and how these minor cannabinoids are regulated under federal law and the ever-evolving patchwork of state regulations. Read all about it in this VS Insight from Catie Wightman.
General Updates
Delta-9 in Edible Hemp Products: What’s a ‘Dry Weight Basis’ Anyway?
Hemp Grower spoke with VS Hemp & Cannabinoids Dept Chair Shawn Hauser and attorney Rod Kight to learn more about the legality of these products. Get their viewpoints here.
NIHC Update - Export Market Development: U.S. Industrial Hemp’s United Front
The National Industrial Hemp Council recently published an update that stated that, despite the challenges of the pandemic and regulatory uncertainty, demand for hemp fibers, grain and oil continues its dramatic rise. NIHC estimates that U.S. export of hemp and hemp-derived products exceeded $1.8 billion in 2020, up from $310 million in 2019. Read the update, which goes into detail about acreage, licensed growers, exports, opportunities, and the NIHC’s strategic vision.
State Updates
State-by-State Hemp & Cannabinoid Compliance Guide
VS’s hemp team is excited to publicly announce our State-by-State Hemp & Cannabinoid Compliance Guide — an affordable, easy-to-use compliance solution to help your business navigate the ever-changing regulatory environment of hemp-derived CBD products. Take the guesswork out of ensuring compliance with all aspects of selling hemp-CBD 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.
California
The California State Assembly and Senate recently passed AB-45. If signed into law by Governor Newsom—which is expected—the sale of food, beverages, dietary supplements, pet products, and cosmetics containing hemp-derived ingredients, including CBD, will be immediately permitted under California state law. The Governor has until October 10, 2021, to sign or veto the bill. If signed into law, the bill takes effect immediately. Read this VS Insights article from Andrea Golan and David Kramer for a high-level summary of AB-45’s key provisions.
Colorado
Gov. Polis and state Agricultural Commissioner Kate Greenberg recently announced the state’s hemp management plan was approved by the USDA.
Connecticut
Connecticut’s new adult-use cannabis law puts a ban on hemp-derived THC products. The new law prohibits products containing Delta-7, Delta-8, Delta-9 and Delta-10 from being sold outside licensed cannabis retailers or medical marijuana dispensaries.
Idaho
Idaho has submitted its state hemp plan to USDA for review and approval.
Michigan
Gov. Whitmer signed legislation on July 12 that will regulate hemp-derived Delta-8 THC and restrict sales to channels approved for state-legal marijuana starting October 11. In addition, state lawmakers introduced a four-bill package (House Bills 5058-61) that intends to legalize the sale of consumable hemp-derived CBD products. View Michigan’s current notes on CBD here.
North Carolina
North Carolina’s Department of Agriculture & Consumer Services and the North Carolina Industrial Hemp Commission announced that the state will end its hemp pilot program. All hemp producers must obtain a USDA grower license for the 2022 growing season.
Ohio
Ohio is now regulating Delta-8 in medical cannabis products. Under the new guidance, Delta-8 must be listed on the products label and packaging, and cultivators, processors and testing laboratories must now test for Delta-8 or any related THC isomers and analogs.
Texas
VS counsel Shane Pennington and the legal team for the plaintiffs in the case Texas Department of State Health Services et al. v. Crown Distributing LLC et al. have been working hard since August 2020 to overturn the smokable hemp ban in Texas. They finally received a Texas-sized triumph on August 23, 2021 when Judge Lora Livingston of the 261st Civil District Court ruled the Texas smokable hemp ban unconstitutional. The trial court’s watershed ruling vindicates the economic liberty of Texas hemp farmers and operators seeking to prosper from this untapped segment of the Lone Star State’s hemp market, as well as Texas hemp consumers who can now proudly purchase “made in Texas” smokable hemp products. Read more about the case in the VS Insights article “The Battle to Allow Smokable Hemp in Texas.”
USDA State & Tribal Hemp Plan Approvals
View the USDA approval status of each state and tribe hemp production plan here.
International Updates
Third Deadline Passes for Publication of UK CBD Novel Food List
The deadline set by the UK Food Standards Agency for the publication of the Novel Food Public List of Validated CBD applications passed without any further updates. The third such deadline to pass, the ongoing uncertainty is proving to be a headache for many with major retail contracts still in limbo – as brands await approval from the UK’s food regulators. Read more here.
EU Member Nations Have Varying Hemp THC Limits
European country THC limits currently vary from 0.0% to 0.6%, but recent bill in the Czech Republic may change that. The bill aims to establish its THC limit for industrial hemp at 1.0% effective in January 2022. This would put the Czech Republic ahead of the curve, but could result in potential conflict with the EU’s stance (0.3%). Read more here.
Events
CWCB Expo New York | November 4–6, 2021
Michelle Bodian and Brandon Kurtzman will take the podium on Friday, November 5, 2021 at 3 p.m. to present “Opportunities at the Intersection of Hemp and Marijuana” at the Cannabis World Congress and Business Exposition in New York. Attend their session for a timely update on the intersection of hemp and marijuana across the U.S., including which states allow the manufacture and sale of hemp ingredients and products by marijuana operators. Learn more and register here!
MJBizCon | October 19–22, 2021
Headed to MJBizCon next month? Don’t be a stranger! Get in touch if you’d like to connect during the conference, and don’t miss the sessions featuring Charles Alovisetti (Domestic Cannabis: The East Coast), Sahar Ayinehsazian (Cannabis Branding: An Inside Look at Multi-State Expansion), and Sally Kent Peebles (Domestic Cannabis: The South).
NIHC 2021 Hemp Business Summit | November 14–16, 2021
Planning on attending the National Industrial Hemp Council’s 2021 Hemp Business Summit in Washington, DC? VS hemp attorney Shawn Hauser will be there! Get in touch to schedule a meet up during the conference. Learn more about the conference and register here!
Contact our hemp team with any questions or licensing needs!