2020 Election: Cannabis and Hemp/CBD Enjoy Bipartisan Support
This article originally appeared in the December edition of Presence Marketing’s Industry Newsletter
By Steven Hoffman
In a country divided, there was one thing in the 2020 elections that enjoyed bipartisan support, and that was cannabis.
In New Jersey, 67% of voters approved the legalization of recreational marijuana for people age 21 and over. The new recreational market is expected to generate $1.9 billion in sales in the state, resulting in $126 million in sales tax revenue, according the estimates from New Jersey’s Office of Legislative Services, reported Bloomberg News,.
In all, five more states in the U.S. approved ballot measures legalizing cannabis use for adults, including Arizona, Mississippi, Montana, New Jersey and South Dakota. Prior to the 2020 election, 11 states and Washington, D.C., had legalized marijuana.
According to the U.S. Hemp Roundtable, “It would be premature to proclaim the Biden/Harris Administration as pro-cannabis. But while both Biden and Vice President-Elect Kamala Harris once took adverse positions, their campaign called for the de-criminalization of marijuana and expungement of convictions. This should translate to a Department of Justice that will place a much lower priority on policing levels of THC in hemp and hemp extracts.”
Jonathan Miller, General Counsel for the U.S. Hemp Roundtable, told Let’s Talk Hemp, “We are increasingly optimistic about hemp’s political prospects. Nearly all of our biggest supporters, from both parties, won reelection, and the likely changes among the political leadership at FDA, USDA and DEA could help resolve some of the more difficult issues that farmers and the industry have been facing.”
According to the U.S. Hemp Roundtable, hemp industry champions in Congress scored some victories on Election Day 2020:
Senate Majority Leader Mitch McConnell (R-KY), who led the fight for hemp’s legalization in the 2014 and 2018 Farm Bills, won reelection by a more than 20 point margin in Kentucky. It is still not clear whether McConnell will remain Majority Leader, but even if Democrats take control of the U.S. Senate, hemp will be secure under the leadership of Chuck Schumer (D-NY) (and McConnell would remain a powerful force as Minority Leader.)
U.S. Senator Jeff Merkley (D-OR), who has led efforts to pressure the USDA and FDA into support for the hemp and CBD industries, won reelection by a nearly 20 point margin as well.
Cannabis champion Senator Corey Gardner (R-CO) lost by a wide margin, but his victorious opponent, John Hickenlooper, oversaw one of the first successful state hemp programs in Colorado and should be an industry ally.
Reps. Kurt Schrader (D-OR) and Morgan Griffith (R-VA), lead sponsors of HR 8179-- critical legislation that would open up a legal pathway for the sale of hemp-derived CBD as a dietary supplement – cruised in their reelection bids.
Reps. David Joyce (R-OH) and Earl Blumenauer (D-OR), authors of a strong letter to DEA, urging that agency to withdraw its troublesome interim final rule on hemp, won overwhelming re-election victories.
U.S. Hemp Roundtable also reported “One sour note: longtime hemp champion, Rep. Collin Peterson (D-MN) lost a hard-fought battle for re-election in an overwhelmingly Republican district. The hemp industry owes Rep. Peterson a huge debt of gratitude for his important work on the 2018 Farm Bill, introducing legislation to protect hemp-derived CBD, and most recently, helping secure an extension for states to operate under the 2014 Farm Bill. We look forward to working with his replacement as Chair of the House Agriculture Committee,” the hemp advocacy organization said in a statement.
In related news, voters in Oregon approved the decriminalization of possession of small amounts of drugs, and a separate ballot initiative made the state the first to legalize therapeutic use of psychedelic mushrooms. In Washington, D.C., voters passed a measure to decriminalize psychedelic mushrooms and other psychedelic plants and fungi, reported NBC News. (The City of Denver, CO, was the first to decriminalize hallucinogenic mushrooms in 2019). Speaking in Oregon, Kassandra Frederique, executive director of the Drug Policy Alliance, told the Associated Press, “Today’s victory is a landmark declaration that the time has come to stop criminalizing people for drug use.”
Bipartisan Support Builds for Legislation to Legalize the Sale of Hemp-derived CBD in Dietary Supplements
Photo: Pexels
This article originally appeared in Presence Marketing’s November 2020 Newsletter
By Steven Hoffman
Legislation is advancing that potentially bodes well for sellers of dietary supplements made with hemp-derived CBD.
According to reports from the U.S. Hemp Roundtable, 18 members of Congress have signed on in support of a bill introduced in September in the U.S. House of Representatives that would “make hemp, cannabidiol derived from hemp, and any other ingredient derived from hemp lawful for use under the Federal Food, Drug and Cosmetic Act as a dietary ingredient in a dietary supplement, and for other purposes.”
The Bill, H.R. 8179, the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2020, enjoys bipartisan support. If passed, it would allow hemp-derived CBD and other hemp-derived ingredients to be legally marketed as an ingredient in dietary supplements, as long as the products comply with current legal requirements for new dietary ingredients, as well as other requirements pertaining to dietary supplements under federal law.
“In a year when Congress is bitterly divided and has been unable to find agreement on key issues such as pandemic response and aid relief, there is unusual and exciting agreement around a potential bill to allow hemp CBD to be marketed as a dietary supplement, with 18 members from both parties supporting the bill,” said the U.S. Hemp Roundtable in a statement.
“H.R. 8179 … is more than hemp and supplements, however. It represents an opportunity to provide consumers greater product safety and confidence due to regulations, hemp farmers an economic lifeline, and states struggling from reduced revenues a new source of profitable opportunity,” said the U.S. Hemp Roundtable. “Failing to establish a regulatory pathway for legalizing hemp-derived CBD will continue to reduce economic opportunity for U.S. hemp farmers and deny consumers access to safe, quality products. H.R. 8179 would help stabilize the hemp markets, open up a promising economic opportunity for U.S. agriculture and honor the commitment made to growers in the 2018 Farm Bill,” the organization added.
Hemp Can Provide an Economic Stimulus
“Once FDA does legally recognize and regulate CBD products, the hemp industry can provide a needed financial jolt to a nation emerging through economic recovery. Regulatory relief for the hemp-derived CBD industry constitutes an economic stimulus package for the nation’s farmers and small businesses without requiring one dime from the American taxpayer,” the U.S. Hemp Roundtable stated.
“Independent surveys predict that with a regulatory pathway, sales of CBD products would grow from approximately $1.2 billion in 2019 to anywhere from $10.3 billion to $16.8 billion by 2025,” U.S. Hemp Roundtable concluded.
The bipartisan legislation, introduced by Rep. Kurt Schrader (D-OR) and Rep. Morgan Griffith (R-VA), would direct the U.S. Food and Drug Administration (FDA) to use its authority and resources to set a clear regulatory framework for hemp and hemp-derived CBD and assure consumer protection for these products, reported the American Herbal Products Association (AHPA) in a release. For marketers of hemp-based CBD in dietary supplements, the bill would eliminate regulatory hurdles and uncertainty that have hampered the category’s growth.
The bill’s lead co-sponsor, Rep. Morgan Griffith, added, “Hemp was historically an important crop for Virginia farmers, and dietary supplements made from it do not possess dangerous addictive qualities. Nevertheless, the current state of regulation creates confusion about its legal uses. I joined this bipartisan bill to provide certainty for hemp farmers that their crop may find legal uses,” said Rep. Griffith in a statement.
Other sponsors of the bill include Representatives Tulsi Gabbard (D-HI), James Comer (R-KY), Peter DeFazio (D-OR), Don Bacon (R-NE), Ron Kind (D-WI), Mike Rogers (R-AL), and more. In total, nine Republicans and nine Democrats signed on to sponsor the bill.
In response to the proposed legislation, leading dietary supplement industry associations, including AHPA, the Consumer Healthcare Products Association (CHPA), the Council for Responsible Nutrition (CRN), Citizens for Health, and the United Natural Products Alliance (UNPA), have endorsed H.R. 8179. The National Grocers Association and the National Association of State Departments of Agriculture, along with the U.S. Hemp Roundtable and other hemp industry leaders, also have endorsed H.R. 8179.
Hemp Industry Pushes Back on the DEA; Gains Congressional Support
In related news, U.S. Senators Ron Wyden (D-OR) and Jeff Merkley (D-OR) joined others in championing the potential of hemp CBD by sending a letter on October 22, 2020, to U.S. Drug Enforcement Administration (DEA) Acting Administrator Timothy Shea to make clear that the DEA’s Interim Final Rule (IFR) regarding hemp is in opposition to federal law and derails the intent of the 2018 Farm Bill.
"We are grateful for Senator Wyden and Merkley’s leadership and are hopeful that the DEA will listen and take necessary steps to withdraw its misguided rule. We will continue to pursue our efforts to fix this problem in Congress and/or the courts," said Jonathan Miller, General Counsel for the U.S. Hemp Roundtable.
DEA's Interim Final Rule (IFR) drew strong objections from the hemp industry overall as it potentially criminalizes the hemp extraction process, undermining the industry and U.S. hemp farmers.
In mid-October, the Hemp Industries Association (HIA) along with South Carolina-based CBD maker RE Botanicals filed a federal lawsuit claiming that the DEA is unlawfully attempting to regulate certain products derived from lawful hemp by misinterpreting the 2018 Farm Bill.
Specifically, said the plaintiffs, the DEA classifies intermediary hemp material (IHM) and waste hemp material (WHM), two necessary and inevitable byproducts of hemp processing, as Schedule I controlled substances. The plaintiffs argue that Congress deliberately removed such commercial hemp activity from the DEA's jurisdiction when it legalized hemp production, including hemp processing, via the 2018 Farm Bill.
The filing is the second such federal action is as many months taken by the plaintiffs on behalf of the hemp industry. In September, HIA and RE Botanicals filed an initial federal lawsuit challenging DEA’s rule and perceived interference in the industrial hemp market.
Resources
H.R. 8179 Bill
H.R. 8179 Fact Sheet
H.R. 8179 White Paper
H.R. 8179 Two-pager with Bill Sponsors
Legislation Would Legalize Sale of Hemp-derived CBD in Dietary Supplements
It’s Hemp vs. the DEA … Again!
CBD Industry Takes the Fight to the DEA
Legislation Would Legalize Sale of Hemp-derived CBD Once and For All in Dietary Supplements
This article originally appeared on LetsTalkHemp.com.
By Steven Hoffman
As Americans readied for a long Labor Day Weekend, two members of Congress on September 3 introduced a bill in the U.S. House of Representatives to “make hemp, cannabidiol derived from hemp, and any other ingredient derived from hemp lawful for use under the Federal Food, Drug and Cosmetic Act as a dietary ingredient in a dietary supplement, and for other purposes.”
The Bill, HR 8179, the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2020, if passed, would allow hemp-derived CBD and other hemp-derived ingredients to be legally marketed as an ingredient in dietary supplements, as long as the products comply with current legal requirements for new dietary ingredients, as well as other requirements pertaining to dietary supplements under federal law.
The bipartisan legislation, introduced in the U.S. House of Representatives by Rep. Kurt Schrader (D-OR) and Rep. Morgan Griffith (R-VA), would direct the U.S. Food and Drug Administration (FDA) to use its authority and resources to set a clear regulatory framework for hemp and hemp-derived CBD and assure consumer protection for these products, reported the American Herbal Products Association (AHPA) in a release.
For marketers of hemp-based CBD in dietary supplements, the bill would eliminate regulatory hurdles and uncertainty that have hampered the category’s growth.
“The Schrader/Griffith bill would ensure that hemp-derived CBD, and other non-intoxicating hemp ingredients, could be lawfully marketed as dietary supplements,” said the U.S. Hemp Roundtable in a statement. “The bill would require CBD and hemp extract product manufacturers to comply with the entire existing comprehensive regulatory framework for dietary supplements, which ensures that the products are deemed safe, properly labeled, and prepared utilizing Good Manufacturing Practices. Passage would also help stabilize the hemp markets, open up a promising economic opportunity for U.S. agriculture and honor our commitment made to farmers in the 2018 Farm Bill.”
Bill co-sponsor Rep. Morgan Griffith added, “Hemp was historically an important crop for Virginia farmers, and dietary supplements made from it do not possess dangerous addictive qualities. Nevertheless, the current state of regulation creates confusion about its legal uses. I joined this bipartisan bill to provide certainty for hemp farmers that their crop may find legal uses,” said Rep. Griffith in a statement.
In response to the proposed legislation, four leading dietary supplement industry associations, including AHPA, the Consumer Healthcare Products Association (CHPA), the Council for Responsible Nutrition (CRN), and the United Natural Products Alliance (UNPA), applauded a bill that would protect public health by providing legal clarity in the cannabidiol/CBD marketplace.
“A growing number of Americans view hemp and hemp derived CBD as a way to improve health and wellbeing, driving high consumer demand and a proliferation of CBD-containing products in the marketplace. While the 2018 Farm Bill changed the law to allow hemp farming, regulatory uncertainty remains about the inclusion of hemp and hemp-derived CBD in dietary supplements. This lack of regulatory clarity along with insufficient oversight around hemp and hemp-derived CBD exposes consumers to potentially unsafe products and lack of consistency in product quality,” said AHPA in a September 4 release.
“A legal hemp and hemp-derived CBD pathway would also provide much needed certainty to hemp farmers,” AHPA added. “The dietary supplement industry is proud to support the Hemp and Hemp-derived CBD Consumer Protection and Market Stabilization Act of 2020 and we urge Congress to consider including the bill in a legislative vehicle soon.”
AHPA, CHPA, CRN, UNPA, along with the U.S. Hemp Roundtable, sent lawmakers a letter expressing unified support for the legislation, AHPA reported.
The parent company of Let’s Talk Hemp Media, We Are for Better Alternatives (WAFBA), signed on as an Endorser of the bill.
# # #
Could California Pass the Most Regressive CBD Regulations in the Country?
This article originally appeared on LetsTalkHemp.com.
By Steven Hoffman
The CBD/hemp industry learned only this past week of a piece of legislation drafted for stakeholder review by the California state administration that would prohibit interstate commerce of hemp extract and ban the sale of hemp products to individuals under 21 years of age in the Golden State. Hemp industry leaders are calling the draft language “draconian” and fear it could hamper the work that Assembly Members Cecilia Aguiar-Curry and Buffy Wicks have done to advance good legislation for hemp.
Editor’s Note: This article has been revised, based on subsequent input from a source for the story.
Hemp industry leaders were surprised this week when the California Governor’s office floated regressive language to regulate the hemp extract market to the point where interstate commerce would not be allowed, and where sale of CBD products including tinctures, dietary supplements, ingestible products and topicals would be prohibited to individuals under 21 years of age, enforced with criminal penalties.
Photo Credit: Wikimedia Commons – Andre M.
Additionally, industry leaders expressed concern over this brand new language which has not been vetted. The concern here is that the CA legislature is only is session until August 31st, and the language coming out of the Governor’s office is completely different than the language shared with them for their feedback.
This could prohibit good language from being passed as early as next week before the state legislature takes its recess. Included among the draft regulations are rumored excessive fees to manufacturers and retailers, and overly broad authority to limit serving sizes, and to treat non-psychoactive hemp products as if they were alcohol, marijuana or tobacco.
“The challenge here is that the California General Assembly leaves town next week. We are running up against a deadline,” said Jonathan Miller, attorney with Frost Todd Brown in Lexington, KY, and director of the firm’s hemp practice, and general counsel for the U.S. Hemp Roundtable.
According to Miller, “There are three parties involved – the governor and his administration, including the California Department of Public Health, the state legislature, and the hemp industry. For two years, the Department of Public Health has said it is illegal to sell CBD as a dietary supplement or food additive, but they haven’t really enforced it across the board. However, we have seen enforcement actions against stores on a county level. We would like to see legislation passed that explicitly says cannabinoids can be sold. We are now negotiating with the governor’s office and are optimistic we can get a good bill passed, but we are running out of time. In some of the drafts, we’ve seen some things that we thought were poison pills. We either reach agreement over the weekend or we are going to fight. No bill is better than a bad bill,” Miller added.
According to one lobbyist working on the hemp language in California who declined to be named, if such language is eventually passed “It would give California the most restrictive law in the country. It’s also a matter of existing jobs in hemp and agriculture. Hopefully the administration and legislature will be mindful that some businesses will leave the state, and some will go bankrupt. And consumers may not understand that their access to hemp and CBD products could be cut off,” the individual said.
Chris Boucher, CEO of Farmtiva in Laguna Beach, CA, a longtime hemp advocate and entrepreneur, has been involved in six pieces of legislation in California, starting with the first in 1995, he said. Boucher encourages hemp industry associations to rally the farm community in California to write letters and make phone calls. He too, expressed concern about the lack of time to respond to restrictive draft legislation.
Boucher and other industry experts expressed support for California Assembly Members Cecilia Aguiar-Curry and Buffy Wicks for their work on legislation to advance the hemp products industry in the state – and also to contact Governor Gavin Newsom’s office to express support for the hemp industry.
“These days it seems everyone is reaping the benefits of CBD – except the State of California. Why? Because hemp-derived CBD isn’t legal here,” said California Assembly Member Buffy Wicks in a Tweet made on August 10. “That’s why I’ve joined Assembly Member Aguiar-Curry to fix this, so our farmers, retailers, consumers – and state coffers – can benefit.”
Attorney Jonathan Miller encourages hemp advocates that want to get involved to visit www.hempsupporter.com, hosted by the U.S. Hemp Roundtable, and sign up for free. “Once you get to the website, it allows you to easily send an email to the Governor’s office and to your state legislators. Once you are on our list, we’ll send out email alerts to all our hemp supporters to let them know of developments and to enlist them for support.”