Welcome to
our weekly roundup of CBD and hemp-related legal and regulatory news:
CBD
CBD company Charlotte’s Web secures $56.8M investment from BAT
British American Tobacco acquired a 19.9% stake in the Colo.-based Charlotte’s Web. The CBD and hemp company said the investment was made in the form of a convertible debenture that’s convertible at BAT’s discretion. Charlotte’s Web also noted it will have pro-forma cash and short-term investments of about $65 million once the deal closes
Hemp
Iowa hemp producers say state is overrun with unlicensed product
More than 800 Iowa retailers are licensed to sell consumable hemp products, but some of the 120 licensed manufacturers say the state is overrun with unlicensed product and the fees are too high to compete with national companies. Iowa received 82 complaints from Mar. 2021 though Aug. 2022, about alleged violations of the consumable hemp rules. The Inspections and Appeals Department issued 34 enforcement actions in that period, which were mostly letters asking retailers to stop the illegal behavior. The state delivered two 30-day suspensions to dispensaries, as both had previous warnings.
Cows get high, produce THC milk from eating cannabinoid-rich industrial hemp silage
Researchers from the German Federal Institute for Risk Assessment found cows fed with industrial hemp silage, a common ingredient in animal feed, showed increased yawning, salivation and unsteady movements, which are potential indicators of cannabinoid intoxication. These compounds could also be transferred into the milk they produce, with some samples showing levels high enough to impact human health.
N.C. man argues previous court opinion wrongfully criminalized hemp
Joseph Teague says the N.C. Court of Appeals’ decision, which it subsequently withdrew and reissued with modifications, made numerous errors in its analysis of hemp policy. Specifically, Teague alleges the opinion’s holding would essentially criminalize much activity involving hemp that took place between 2018, when the state first passed an industrial hemp legalization statute, and June 2022, when new hemp legislation was enacted.
Hemp Food Association rebooted
The Hemp Food Association became defunct when the unknown legal status of hemp foods saw the market die for a couple of years. Original founder and hemp food pioneer Richard Rose believes hemp foods are still an under-appreciated market and few government grants have been awarded into research into seed as food, instead concentrating grant cash on fiber products. Membership of the rebooted HFA is free to consumers, hemp food marketers and manufacturers.
Cannabis
Second class action complaint for labeling THC levels above 10% threshold
Rocky Willeford filed a class action complaint against Greenfield Organix and the LPF JV for allegedly mislabeling and marketing the King Roll prerolls as containing more THC than what exists. The complaint suggests, despite Calif. law requiring THC labels to be within 10% of actual content, King Prerolls advertised in excess of this allowed margin for error. The prior lawsuit was filed by Jasper Centeno and Blake Wilson against Dreamfields Brands and Med for America by the same law firm as the suit against Greenfield.
Out-of-state sales ban unconstitutional, says Ore. cannabis company
Jefferson Packing House alleges the state law prohibiting the out-of-state sale of locally cultivated cannabis is unconstitutional and contradicts the dormant commerce clause. As such, the law should be vetoed by the court. The suit names as defendants Ore. Governor Kate Brown (D) , state AG Ellen Rosenblum and the executive director of Ore.’s cannabis regulator, Steve Marks.
Sacramento cannabis residency challenge moves to Ninth Circuit
Kenneth Gay, who claims he’s fulfilled all the requirements of Sacramento’s Cannabis Opportunity Reinvestment and Equity program, except that he lives outside the state in Mich., asked the appellate court to override U.S. District Judge Kimberly J. Mueller’s Oct. decision to abstain on a ruling given federal illegality. Gay claims Sacramento is in violation of the Dormant Commerce Clause for limiting applications for storefront dispensary cannabis licenses to Calif. residents. Judge Mueller called that a shaky constitutional foundation in her Oct. decision.
Cannabis researcher’s suit over DEA delays is dismissed
U.S. District Judge Mary S. McElroy found while the law isn’t clear on whether the appellate courts have exclusive jurisdiction over challenges to the DEA and AG’s actions, they’re available courts and on the balance the MMJ International researcher will see little harm from dismissal because she can refile the case in the D.C. or First Circuit courts. Meanwhile, the company appears close to resolving the outstanding issues with the DEA and anticipates the agency will issue a registration to the company soon, but it’s prepared to file in the circuit courts if needed, said MMJ president Duane Boise.
Fla. Agriculture Commissioner appeals dismissal of gun rights for cannabis users
Commissioner Nikki Fried (D) and her patient co-plaintiffs have appealed the decision to the Court of Appeals for the Eleventh Circuit. The case against the DOJ centers on the argument that the federal firearms ban for cannabis patients is unconstitutional. Judge Allen Winsor ruled people who use marijuana, regardless of state law, are engaging in criminal activity at the federal level, and that there’s precedent to deny them the right to have firearms.
Judge blocks cannabis regulators from issuing first set of marijuana retail licenses
U.S. District Judge Gary L. Sharpe agreed with Variscite NY One that the state’s licensing scheme is a likely violation of the dormant commerce clause, for discriminating against the Mich.-based owner. The order arrives weeks before regulators are expected to recommend the approval of the first tranche of conditional adult-use retail dispensary licenses at the Cannabis Control Board’s Nov. 21 meeting. The order bars the N.Y. Office of Cannabis Management from issuing retail licenses for the Finger Lakes, central N.Y., western N.Y., mid-Hudson and Brooklyn regions that were to host approximately two-fifths of the 150 licenses regulators planned on issuing.