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Bill filed in Tennessee to regulate and tax CBD and Delta 8 THC

Bill filed in Tennessee to regulate and tax CBD and Delta 8 THC

Tennessee might regulate and tax CBD and Delta 8 THC products

A Republican lawmaker is seeking to tax and regulate the existing cannabis industry in the state.

Rep. Chris Hurt (R-Halls) filed House Bill 1690 this week. The bill seeks to regulate psychotropic hemp-derived cannabinoids, which include products that have more than 0.1 percent THC. (Current federal regulations limit THC to 0.3 percent.) That includes products containing the newly popular Delta-8 THC but not pure CBD products, which do not contain THC.

As a member of the Agriculture and Natural Resources Committee, a former hemp farmer and current co-owner of CBD ProCare — a CBD company in Dyersburg — Hurt says he filed the bill in an effort to “legitimize the industry.”

According to Hurt and Joe Kirkpatrick of the Tennessee Growers Coalition, who collaborated with Hurt on the writing of the bill, no other state has legislation that specifically taxes and limits the sale of hemp-derived cannabidiol products.

“People think that Tennessee is the last to do anything when it comes to the hemp industry,” Kirkpatrick says, “but they are forgetting that Tennessee was the first state to allow and define smokable hemp and the first state to allow the feeding of hemp to livestock.”

HB1690 would do three things: create a licensing requirement for retailers and wholesalers, establish a 6.6-percent excise tax on the wholesale of hemp-derived cannabinoids and limit sale of psychotropic hemp-derived products like Delta-8 to those 21 and older.

The bill would require retailers and wholesalers to apply for an annual $200 license through the Tennessee Department of Agriculture. Based on the licensing structure outlined, Kirkpatrick says he would expect the state to collect $160,000 annually in fees. (The legislative Fiscal Review Committee has not yet analyzed the potential economic impact of the legislation.) Licenses could be revoked or suspended at the discretion of the Department of Agriculture.

Kirkpatrick estimates that the proposed 6.6 percent tax, modeled after the tax on tobacco, could generate as much as $4-5 million in annual revenue for the state. Hurt and Kirkpatrick would like to see the money collected from licensing and the wholesale tax used to increase the resources at the Department of Agriculture to ensure product safety.

Florida Bill Would Regulate Delta-8 and Overhaul Medical Cannabis

Florida Bill Would Regulate Delta-8 and Overhaul Medical Cannabis

Florida bill would regulated Delta 8 THC and overhaul medical cannabis industry
A Florida bill seeks to place strict limits on delta-8 THC and overhaul the state’s medical cannabis program, which would include a new cannabis oversight agency and new rules preventing the sale of dispensary licenses for monetary gain.

bill in Florida would place strict limits on THC potency of synthetic and hemp extracts, such as delta-8 THC, and include other reforms to the state’s medical cannabis law, Florida Politics reports. The bill’s sponsors, Democratic Rep. Andrew Learned and Republican Rep.

Spencer Roach describe the proposal as the “first major update” to the state’s medical cannabis statute since voters approved the reforms five years ago.

Under the proposal, sales of hemp products designed for consumption, including delta-8 products, would only be permitted to individuals 21-and-older.

Additionally, the measure would increase the terms of medical cannabis patient licenses and the time between required doctor appointments, which the bill sponsors say combined would cut an estimated 60% of the cost of participation in the medical cannabis program.

It would also remove physician appointments for medical cannabis patient recertification under specific guidelines, allow recertification via telehealth, end the practice of selling medical cannabis dispensary licenses for monetary gain, create new industry testing requirements, and increase the transparency of state regulations.

Under the proposal, the course required by Florida for physicians that recommend medical cannabis would triple from two to six hours.

The bill was introduced on Monday November 29, but has not yet been moved to any committee.

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Delta 8 THC Banned in New York

Delta 8 THC Banned in New York

Delta 8 THC banned in New York by cannabis control board

Rules to allow for delta-8 THC could come in the “future,” but in the meantime, those for CBD in food and beverages have been finalized.

Delta-8 THC was front and center during the latest meeting of New York’s cannabis regulators, as officials work to stand up what will be one of the world’s biggest cannabis markets.

The state’s Cannabis Control Board (CCB) met on Wednesday, for the third time, to approve Cannabinoid Hemp regulations presented by the Office of Cannabis Management. The package of rules will now regulate hemp products, including CBD products, by creating “clear” guidelines for what kinds of products and activities are allowed, and which ones aren’t, “to help foster the development of a robust cannabinoid hemp industry.”

The rules also seek to enhance consumer protection and quality control through testing and labeling, and to “enforce against” products that don’t meet the bar and those that are explicitly banned.

“Delta-8, similar to delta-9 THC, is psychoactive, has psychoactive properties, particularly when synthesized through the processing process. Because of that, we’ve decided to hold off on including the regulations for those products in this package and that will be addressed in the future adult use packages,” Chris Alexander, executive director of the Office of Cannabis Management (OCM), within which the Board sits, said during a question and answer portion of the meeting, when asked specifically where delta-8 rules stood.

The regulations do, however, allow for cannabinoids, like CBD, to be added to foods and beverages, if they meet the state’s standards, which will require that each product be made using Good Manufacturing Practices. Last month, California Gov. Gavin Newsom signed AB 45, which will now allow hemp-derived CBD (or other cannabinoids) in supplements, foods, drinks, cosmetics, and pet food.

“I’m pleased that we will be advancing the cannabinoid hemp program today, just as we have done with the expansion of the medical marijuana program at prior meetings,” Tremaine Wright, chair of the Board, said at the start of the meeting. (As Cannabis Wire recently reported, the Board has already moved to allow for medical cannabis shops to sell flower products, which several have started to do, and released rules for patients to home grow.)

Board member Jen Metzger gave an overview of the hemp program in New York. In 2015, the Department of Agriculture and Markets launched the state’s Industrial Hemp Agricultural Research Pilot Program. Metzger said this program “exploded” after it launched, with 800 farmers registered to grow, most for cannabidiol (CBD).

When the Marijuana Regulation and Taxation Act passed in March, legalizing cannabis for adult use, the Cannabinoid Hemp Program was transitioned under the umbrella of the new Office of Cannabis Management.

USPS Bans Mailing Hemp, CBD and Vape Cartridges

USPS Bans Mailing Hemp, CBD and Vape Cartridges

USPS bans mailing hemp, CBD and vape cartridges

The U.S. Postal Service (USPS) on Wednesday released its final rule on the mailability of vapes, asserting that even devices designed for federally legal hemp derivatives like CBD generally cannot be shipped through the U.S. mail.

The agency has been developing the regulations to comply with a bill passed by Congress last year that is mostly aimed at stopping nicotine vaping devices from being mailed—though it has broader implications. Despite significant public comment on an earlier proposed version of the rules that urged USPS not to interpret the law in a way that restricts hemp businesses, the agency ultimately said that cannabis vapes fit the definition of what lawmakers moved to ban.

There are some exceptions, but stakeholders are disappointed by the final rule.

During public comment, some argued that the bill was specifically meant to restrict mailing of nicotine-based vapes. But while the legislation refers to limitations on “electronic nicotine delivery systems,” or ENDS, it defines that term as “any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device.”

USPS explained in the rule, which is set to be published in the Federal Register on Thursday, that by the letter of the law, that includes hemp and marijuana vapes.

“It goes without saying that marijuana, hemp, and their derivatives are substances,” the agency said. “Hence, to the extent that they may be delivered to an inhaling user through an aerosolized solution, they and the related delivery systems, parts, components, liquids, and accessories clearly fall within the [Preventing Online Sales of E-Cigarettes to Children Act’s] scope.”

Other commenters argued that USPS shouldn’t impose the restriction on cannabis products because the ban could conflict with state or local marijuana laws—or because Congress has approved spending legislation that prohibits the use of Justice Department funds for interfering in state-legal medical cannabis programs.

USPS said those arguments are not valid because, 1) it’s part of the federal government and is, therefore, unaffected by state or local marijuana policies and 2) it’s not part of the Justice Department, which is the only branch of the government restricted by the state protection rider in appropriations legislation.

The agency further clarified that hemp containing up to 0.3 percent THC is federally legal and is generally mailable, but only “to the extent that they are not incorporated into an ENDS product or function as a component of one.” As such, while business can generally mail out legal hemp-derived products, that’s only the case if they are not vaping products covered under the new law.

“The POSECCA and the Agriculture Improvement Act overlap, but they do not conflict. The Agriculture Improvement Act merely excludes certain products from the CSA. It does not affirmatively declare hemp and hemp derivatives to be mailable in any and all circumstances, superseding all other relevant laws (such as the POSECCA). For its part, the POSECCA restricts the mailability of only certain hemp-based and related products; hemp-based non-ENDS products are unaffected, as are ENDS products falling within one of the PACT Act’s exceptions. That Congress has rendered some subset of a class of goods to be nonmailable while leaving the remainder mailable is not some sort of legal conflict, but, rather, how mailability regulation typically works.”

Oregon Declares State of Emergency Over Illicit Hemp Farms

Oregon Declares State of Emergency Over Illicit Hemp Farms

Ilicit hemp farms make up 50% of operations in an Oregon county

There were several concerns among states following the federal legalization of hemp in 2018. One of the primary being the regulation of both cannabis and hemp together in states where cannabis has been legalized.

One such state is Oregon, which legalized cannabis in 2014 and quickly saw a massive boom in the new industry. The state was producing so much cannabis that the price per pound tanked, almost causing the entire industry to crash in just a couple of years.

So when the government legalized industrial hemp on the federal level in 2018, many states including Oregon saw it as an opportunity to broaden the accessibility to the cannabis industry for farmers. Many in Oregon were looking for an alternative to THC-rich cannabis due to the oversaturated market, which led them to switch to hemp instead.

Others joined when hemp was legalized as they recognized the potential of the growing CBD market, and more nefarious actors joined to take advantage of one of the biggest overlying issues in the hemp/cannabis industry; figuring out the difference.

Illicit Hemp Farms

Hemp and cannabis are technically one and the same. While the genetics have branched apart from each other over time, the plant remains very similar at their core. Both contain THC and CBD, but while cannabis was bred to have more THC, hemp traditionally has lower THC levels already, making it easier to breed out.

The Farm Bill requires that hemp contain no more than .3% THC, an infinitesimal amount that can’t produce a psychoactive high. This requirement is what helped drive the CBD as market, as all other cannabinoids aside from Delta-9 Tetrahydrocannabinol (THC) are technically legal.

Since the plants look so similar to each other, a large portion of the farms claiming to be growing legal hemp, have actually been growing illicit cannabis without proper licensing.

With cannabis legal in Oregon now, these illegal farms operate with near impunity next to Oregon’s highly regulated cannabis market. With many western states being hit with drought this year, these illegal farmers are also illegally stealing water from the surrounding creeks and wells. One illegal cannabis farm recently raided by authorities was illegally drawing water from the Illinois River to feed over 72,000 marijuana plants.

The Jackson County Board of Commissioners recently declared a state of emergency warning of “an imminent threat to the public health and safety of our citizens from the illegal production of cannabis in our county.”

The illegal cannabis farms are often posing as legal hemp farms, the commissioners noted. The Oregon Health Authority and the Oregon Liquor and Cannabis Commission recently reported that nearly 50% of registered hemp farms inspected in the state are illegally growing cannabis, with a THC content greater than legal limits.

What is Delta 10 THC? Delta 10 Gummies and Delta 10 Cartridges explained

What is Delta 10 THC? Delta 10 Gummies and Delta 10 Cartridges explained

What is Delta 10 THC?
When the federal government legalized industrial hemp in 2018, it changed a lot of things. It also opened up plenty of loopholes.

After the explosion of CBD and just about every hemp producer trying to sell their CBD products, the market became extremely saturated. While the market for CBD products is still huge (and growing), there are other cannabinoids that have been discovered in hemp that provide different effects.

You may have heard of CBG and CBN, two cannabinoids similar to CBD that have been shown to have therapeutic effects without producing a psychoactive high. However, there have been new, synthetically produced cannabinoids that actually do provide psychoactive effects while staying in a grey area of legality due to being derived from legal hemp.

The latest in this evolution of grey market cannabinoid products is Delta 10 THC.

Delta 8 THC and THC O Acetate

Delta 8 THC was the first synthetic cannabinoid to blow up in popularity, with advertisements of a legal high nearly identical to traditional Delta 9 THC. For some, being synthetically manufactured can be a major turn off, bringing back memories of K2 or Spice — entirely synthetic “cannabinoids” created from scratch and sprayed on various herbs — which resulted in numerous injuries and deaths.

However Delta 8 is made a little differently. Instead of making it entirely from scratch, Delta 8 THC is most commonly made from CBD. Through an isomerization process, CBD can be converted in Delta 8 THC. There are lab tested Delta 8 products that are reliable, and just as many that are not, so buyer beware.

But what happens when you take Delta 8 — which is made through chemical processes — and add more chemical processes? You get THC O Acetate.

While Delta 8 THC occurs in low concentrations in cannabis that must be extracted and isolated, THC-O Acetate — commonly called ATHC or THC-O — is not naturally occurring in the cannabis plant and can only be made synthetically.

THC-O is a man-made cannabinoid produced by using specific chemicals to acetylate THC. Acting as a metabolic prodrug for THC itself, THC-O works in the same manner as heroin does as a metabolic prodrug for morphine. That alone is enough to rub many cannabis users the wrong way, especially whole plant advocates.

However the high that THC O Acetate can produce is enough for many to overlook how it is made. According to anecdotal experiences form users, THC O Acetate has been shown to be nearly 3x more potent than Delta 9 THC, and has been described as psychedelic, producing visual hallucinations.

However there are currently very few reliable THC O Acetate manufacturers, with only one claiming to have a pure, clean process for making it. With over a dozen states banning Delta 8 THC, and not enough reliable producers or consumer information on THC O Acetate, consumers and producers are looking for yet another replacement.

They may have found it with Delta 10 THC.

What is Delta 10 THC?

The good news about Delta 10 THC, is that it’s made in a near identical way to Delta 8 THC. It appears in similar trace amounts to the point where it’s not worth the time or money to try and extract it purely from a hemp plant. This means it has to be created from something like hemp-derived CBD through a chemical process.

So in the case of how to consume Delta 10 THC, it will almost always be found in the form of Delta 10 THC gummies or other edibles and Delta 10 THC vape cartridges made from distillate. This is because there is no hemp flower that produces enough Delta 10 THC that could actually be felt through normal flower consumption.

User reports of Delta 8 THC claim that it provides a more relaxing and appetite stimulating effect, similar to what most would call an “indica”. Delta 10 THC users on the other hand report it to feel more like a “sativa”; uplifting, energetic, etc..

Neither Delta 8 or Delta 10 THC provide the same intense high that Delta 9 THC can. But according to David Reckles from Private Label Hemp Lab, Delta 10 could potentially surpass Delta 8 in popularity as it provides an uplifting high that isn’t overwhelming or accompanied by paranoia and anxiety that some feel from Delta 9 THC.

Is Delta 10 THC Legal?

Just like Delta 8 THC and THC O Acetate, Delta 10 THC exists in a legal grey area. Because it is technically derived from federally legal hemp which has a Delta 9 THC concentration below .3%, and the Farm Bill specifically mentions only Delta 9 THC concentrations, Delta 10 and other cannabinoids are technically legal.

However, in a ruling on CBD and other cannabinoids legalized by the Farm Bill, the DEA says, “For synthetically derived tetrahydrocannabinols, the concentration of D9 -THC is not a determining factor in whether the material is a controlled substance. All synthetically derived tetrahydrocannabinols remain schedule I controlled substances.“

Unfortunately as government is wont to do, the DEA failed to clarify what constitutes a “synthetically derived tetrahydrocannabinol”, leaving it up for interpretation. To Delta 10 THC producers, the fact that nobody is getting busted is enough to continue making it, whether it turns out to be illegal or not.

In the same vein, the caution is on the consumer when purchasing Delta 10 THC gummies or Delta 10 THC cartridges. Not just because of the lack regulation on producers which results in shady products that could potentially be dangerous, but also because it is still THC. In other words, it’s possible for someone who gets drug tested for THC to test positive, despite only using Delta 10.

While Delta 10 THC, Delta 8 THC and THC O Acetate may be “legal” alternatives to Delta 9 THC in states where cannabis is still prohibited, it could change at any moment. Whether that means you should stock up on all the Delta 10 and Delta 8 you can get your hands on or just wait for legalization to come your state is up to you.

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