Hemp is Federally Legal!

Dec 20, 2018

Today President Donald Trump signed hemp legalization into law as part of the 2018 Farm Bill, which immediately removes hemp from the Controlled Substances Act. Now, hemp will be treated like other agricultural commodities such as tomatoes or corn.

Hemp is a variety of the Cannabis sativa plant species that is grown for the industrial uses of its derived products. It has extremely low levels of THC, and is higher in CBD – a compound that is believed to have benefits in treating anxiety, arthritis, stress and other conditions. Hemp-derived CBD sales reached $190 million in the United States alone last year according to the Hemp Business Journal, with total sales for the U.S. hemp industry topping $820M.

Hemp entrepreneurs are excited about the new potential business opportunities, and certainly this opens up more avenues for research of this plant, which is believed to be one of the first plants to be spun into usable fiber 10,000 years ago. Of course, it’s just the beginning of implementation, and Hemp Industry Daily summarizes what’s next:

Hemp producers holding cultivation licenses in the 42 states with existing pilot programs won’t see an immediate change. Those state laws will remain in effect until the U.S. Department of Agriculture (USDA) has time to review the state regulations to decide which pass muster.
The USDA must come up with national hemp regulations “as expeditiously as practicable,” an uncertain timeframe. The national plan must include procedures for checking THC content and plans to destroy plants that test “hot.”
The U.S. Food and Drug Administration retains authority over foods, drugs and cosmetics. That means that while CBD is legal in Jan. 1, that doesn’t necessarily mean it is legal to add hemp or CBD to food products or dietary supplements.
States, territories and Indian tribes have no deadline to submit hemp-regulation plans to the USDA. But once a plan is submitted, the USDA has 60 days to approve or reject it.
If a state’s oversight plan is rejected, hemp growers will be “subject to a plan established by the (USDA) to monitor and regulate that production.”
The USDA has one year to study progress in the 42 states and “determine the economic viability of the domestic production and sale of industrial hemp.” Those findings will then be presented to Congress.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

MEDIA CONTACT

Natalie Villanueva, Director of Marketing
954.333.4308 | natalie.villanueva@gmlaw.com

This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

Next Previous

News

Hemp is Federally Legal!

Share

Subscribe for
News & Events

News & Events

News & Events

News

Hemp is Federally Legal!

Share

Subscribe for News & Events

News & Events

News & Events

Subscribe for
News & Events