Welcome to our weekly roundup of CBD and hemp-related legal and regulatory news:
U.S. District Judge J. Paul Oetken revealed CBD Universe and SLS Brands reached a settlement in principle but didn’t provide any details. SLS Brands sued CBD Universe, ski gear company Spyder and brand owner Authentic Brands Group in 2019 after its contract with Spyder and Authentic Brands to make Spyder-branded skincare products fell apart and the companies joined with CBD Universe to make the products instead. SLS Brands said it entered into a licensing agreement with Authentic Brands and Spyder in 2017 with a plan to make Spyder-branded skincare products through 2022. The agreement barred Authentic Brands and Spyder from contracting with anyone else to make the products. SLS Brands spent roughly $400,000 developing and marketing the products and was in the process of developing CBD products when Authentic Brands and Spyder struck a deal in 2019 with Tilray. Law 360 (sub. req.)
A Kansas State University study suggests feeding cattle industrial hemp reduces their stress levels and makes them lie down more. That could prove beneficial to ranchers because relaxed steers tend to be healthier. The researchers said hemp could be a natural way to decrease stress-related respiratory infections and other ailments when cattle are being transported or weaned off their mothers. The team also found, while hemp was absorbed, it didn’t accumulate in the steers’ systems. NPR.
The bill, with amendments from Gov. Glenn Youngkin (R), redefines THC in Va. statutes to eliminate any mention of Delta-9, a change that means hemp operators will no longer be able to sell intoxicating THC isomers such as Delta-8 outside marijuana sales channels. Other highlights of the bill include a ban on the sale of hemp edibles in the shape of animals, fruits or people and limits on the sale of smokable hemp to people older than 21. The Delta-8 ban takes effect on Oct. 1. MJ Biz Daily.
N.C.’s Hemp Pilot Program expired in Jan., handing oversight of the industry in the state over to the USDA. The bill that created the program has an expiration date of June 30, 2022, so many farmers in the industry are worried that without further action by legislators, hemp could become illegal again in the state. While trade advocates are working with legislators for changes, the N.C. Dept. of Agriculture and Consumer Services maintains hemp producers fall under the USDA’s federal hemp program and the NCDA&CS supports conforming state law with the federal definition of hemp. ABC News.
Officials at Grissom Air Reserve Base are warning airmen they could fail a drug test and face disciplinary action if they eat products that contain hemp or CBD. Servicemembers should remain “hyper-vigilant” about what they eat as more and more snacks, drinks, shampoos, lotions and protein powders are using hemp or hemp seed oil as an ingredient. Air Force policy specifically states the use of products containing or products derived from hemp, such as CBD, are prohibited, the release states, noting the policy “applies regardless of the route of administration, ingestion or use.” Grissom Air Reserve Base.
N.Y.’s Cannabis Control Board approved 52 hemp farmers’ applications to begin cultivating cannabis for the state’s incoming adult-use market. The state moved quickly to approve the applications to meet the coming growing season. Furthermore, the regulators approved a resolution to issue new proposed regulations governing home cultivation of cannabis for registered medical marijuana patients, including issuing rules about how seeds can be stored by home growers. Meanwhile, the Saint Regis Mohawk Tribe will open three regulated adult-use cannabis stores in N.Y., on tribal land near the Canadian border. Law 360 (sub. req.)
MMJ International Holdings and MMJ BioPharma Cultivation claim the DEA delayed the medical cannabis research application process and refused to provide an update despite multiple attempts. MMJ petitioned the DEA in Dec. 2018 for the green light to import the specific strains of marijuana needed to conduct planned clinical trials, which were already approved by the FDA. What followed, alleges the company, was a years-long stalling effort from the DEA as it slowly completed its inspection of MMJ’s facilities. The company states it reached out to the agency director, asked its congressman to intervene and called the DEA’s general customer line – all to no avail. Law 360 (sub. req.)
A Sacramento cannabis company, D.C.D., is suing the city in Calif. state court, alleging it exceeded its authority in levying a 1% fee on cannabis businesses and falsely claimed the fee is necessary to mitigate the negative impacts of the legal marijuana trade. The company wants the court to void and refund any fees with interest. D.C.D. is represented by Garner & Associates, the same firm representing 6492 Florin Perkins in a similar suit against the city. Law 360 (sub. req.)
The DOJ will return all cash seized from an armored car company used by legal marijuana dispensaries during several traffic stops in Calif. The seizures occurred based on what authorities learned in Kan. during a May traffic stop of an Empyreal Logistics car. The company filed a federal lawsuit detailing how a sheriff’s deputy in Dickinson County, Kan., stopped one of its vehicles transporting cash from licensed marijuana dispensaries to banks and credit unions, seizing more than $165,000. The U.S. Attorney’s Office in Kan. filed a civil forfeiture action against Empyreal, asserting the cash was in violation of the CSA. However, the DOJ has since agreed to return all funds seized by the San Bernardino County Sheriff, Calif., on its behalf, approximately $1.1 million, in exchange for dropping the suit. The settlement doesn’t address the San Bernardino Sheriff or the case in Kan. Marijuana Moment.
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