Cannabis Law and Compliance Archives - Page 24 of 37

Why Delta-8 is Being Made Illegal

by Travis C | May 26, 2021 | 420 News, Blog, Business, Cannabis Law, Cannabis Law and Compliance, Culture, Hemp, Hemp Law, Science & Technology, Stranger Than Fiction

As quickly as Delta-8 THC blew up, it’s being made illegal by states across the country.

It was only a matter of time.

Consumers and entrepreneurs have been an enjoying a regulation free, sub-legal way to get high and profit from Delta-8 THC. Now the DEA and USDA have taken notice, and in addition to the numerous states already taking action to make Delta-8 illegal on their own terms, the official law regarding Delta-8 is becoming more clear.

In fact, the current laws regarding hemp may already have it covered.

What is Delta-8 THC?

A very, very close relative to Delta-9 THC, the main psychoactive component of cannabis, Delta-8 THC is separated by just one subtle difference in its molecular structure. The similarity in molecular structure also leads to similar psychoactive effects although slightly suppressed.

Studies done on Delta-8 THC have revealed it to be roughly 75% the potency of traditional Delta-9 THC. With modern extraction technology and isolation techniques, manufacturers of D8 THC are able to produce products that get users high.

The reason that D8 THC is able to operate currently with near impunity is because of the wording of the 2018 Farm Bill. In the bill, “Hemp” is defined as:

The plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

Because the definition specifically includes Delta-9 THC and nothing else, this has been used by manufacturers as a de facto legalization of other tetrahydrocannabinols. However, looking a little more deeply into current rules and regulations on the books by the DEA and USDA, and depending on your definition of “synthetic”, the future of Delta-8 may have already been decided.

Synthetic Tetrahydrocannabinols

In August of 2020, the DEA released a set of interim rules regarding hemp. In this ruling they say, “For tetrahydrocannabinols that are naturally occurring constituents of the plant material, Cannabis sativa L., any material that contains 0.3% or less of D9 -THC by dry weight is not controlled, unless specifically controlled elsewhere under the CSA,” CSA being the Controlled Substances Act.

However in the same paragraph further down, we get to the part that matters to Delta-8 THC advocates; “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.“

By establishing a difference between naturally occurring cannabinoids that are produced in hemp and those that are derived and enhanced synthetically, the DEA virtually made a ruling against Delta 8. This is because, to the likely surprise of many (including myself), Delta 8 THC while naturally occurring in hemp, is in fact synthetically made from CBD when produced for retail sale.

How Delta 8 THC is Made

All cannabinoids, from CBD to THC and beyond begin as CBGA. Because of the shared molecular structure of cannabinoids, manipulating them is simpler than it may seem. While Delta-8 is relatively new, producers have been using these methods to manipulate cannabinoids for a long time to find exotic new cannabinoids.

While Delta-8 THC exists in a wide range of cannabis strains, it is in minuscule, trace amounts. To extract and purify Delta-8 from raw plant material with less than one percent of the targeted cannabinoid is unprofitable. This is why producers have begun converting other, more prevalent cannabinoids like CBD and Delta-9 THC into Delta-8.

The process of creating Delta 8 from CBD is nothing new, and is actually a patented isomerization process. It involves dissolving CBD in a solvent like heptane. An acid is then added into the solution and stirred constantly up to 18 hours on a heat plate. Once the chemical reaction is complete it will separate, where it can then be washed and dried and tested.

Compared to how your average Delta-9 extract is made, Delta-8 is a more lengthy, “synthetic” process. The Delta-8 is not there in the beginning, it is created in the end. And that’s why it’s a problem.

What does this mean for Delta 8 THC?

Unfortunately for producers and consumers alike, the great days of Delta-8 THC are likely coming to an end sooner rather than later. Over a dozen states have already banned Delta-8 THC, and more are considering passing their own laws against the cannabinoid. With the ruling by the DEA being brought into the open, it will be difficult for manufacturers to argue that Delta-8 is not in fact a synthetic cannabinoid.

In other words, those who continue to manufacture and sell Delta-8, even right now, are technically manufacturing and distributing a Schedule 1 substance. States in which Delta-8 THC has not been explicitly banned likely don’t need to worry about prosecution for the time being, as no official ruling on Delta-8 specifically has been passed down.

But as concern grows and more states ban Delta-8, it is going to become more difficult and less profitable for manufacturers to continue making it. Soon enough, Delta-8 will likely be another banned substance nationwide.

Texas Marijuana Concentrates and Psychedelics Bill Passed in Senate

by The Real Dirt | May 24, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Culture, Hemp Law, Medical Marijuana

Texas marijuana concentrates and psychedelics got a big win in the state senate

The Texas Senate has approved House-passed bills to reduce criminal penalties for possessing marijuana concentrates and require the state to study the therapeutic potential of psychedelics like psilocybin and MDMA. But because senators amended both pieces of legislation, they must first head back to their originating chamber before they can be sent to the governor’s desk.

Meanwhile, advocates are closely monitoring a separate bill to expand the state’s medical cannabis program, which cleared the House and was referred to a Senate committee on Thursday. But the fate of that proposal remains murky as a legislative deadline approaches. It must be acted on in the Senate State Affairs Committee in order to advance to the floor, and the end of the session is nearing.

Under HB 1802, which passed the Senate on Saturday in a 25-5 vote, the state would be required to study the medical risks and benefits of psilocybin, MDMA and ketamine for military veterans in partnership with Baylor College of Medicine and a military-focused medical center. As amended by a House committee, it would also mandate a clinical trial into psilocybin for veterans with PTSD, in addition to a broader review of the scientific literature on all three substances.

The Senate adopted a balanced budget amendment to the bill clarifying that the psychedelic studies wouldn’t be carried out unless there’s funding allocated the effort—a situation already accounted for by a contingent rider for the funds.

Former Gov. Rick Perry (R), who also served as U.S. energy secretary, has called on lawmakers to approve the psychedelics legislation.

The cannabis concentrates measure that also advanced through the Senate is a modest reform compared to another proposal to more broadly decriminalize marijuana possession that recently passed the House but has since stalled. But if enacted, HB 2593 would mark the first time that Texas has reduced penalties associated with marijuana since the 1970s.

Read Full Story on Marijuana Moment

Louisiana Governor Says Cannabis Legalization ‘Is Going To Happen’

by The Real Dirt | May 20, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Medical Marijuana, Politics

Louisiana cannabis legalization is coming according to the governor

Just a day after a bill to legalize marijuana in Louisiana stalled in the state legislature, Gov. John Bel Edwards (D) said on his live radio program Wednesday that cannabis legalization “is going to happen in Louisiana eventually.”

“In the past, as a legislator and as governor, I’ve been opposed to legalizing recreational marijuana,” the governor said on the monthly program, Ask the Governor. “I will tell you, I have come to believe that it is going to happen in Louisiana eventually.”

Edwards stressed that while he isn’t yet endorsing legalization—he declined to take a position on pending legislation in the House—he wants to “make sure that we do it right.”

“I suspect you’re going to see a lot of interest and studying the other states and making sure that we have a clear path forward,” he said. “One of the things that I’ve always said is that before we do it here, we need to make sure we study and learn all the lessons to be learned.”

“I think there’s a growing number of people who are sort of where I am,” the governor continued, “not quite comfortable yet but understanding that we’re likely to get there.”

Last month, in a pivot from his years of quickly dismissing questions about legalization, Edwards said that he had “great interest” in a marijuana bill that had advanced out of a House committee just hours earlier. That proposal, however, hit a speed bump on Tuesday after the full House of Representatives rejected a complementary tax measure.

Despite the setback for legalization broadly, numerous other cannabis-related bills have been advancing in the conservative state this session. The House last week approved legislation to decriminalize possession of small amounts of marijuana, which is now awaiting Senate consideration.

A separate House-passed measure that is also before the Senate would give the state’s existing medical marijuana patients access to cannabis flower and permit them to lawfully smoke it. Currently patients are able to vaporize cannabis preparations via a “metered-dose inhaler,” but they cannot purchase whole-plant flower and smoking is not allowed.

Edwards proactively brought up both of those measure in the radio appearance on Wednesday, suggesting he is closely tracking them and is potentially open to signing the proposals if they reach his desk this session.

Read Full Story on Marijuana Moment

Alabama governor signs medical marijuana legislation

by The Real Dirt | May 18, 2021 | 420 Culture & Travel, 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Medical Marijuana

Alabama medical marijuana signed by Governor

MONTGOMERY, Ala. — Alabama Gov. Kay Ivey signed medical marijuana legislation Monday as conservative opposition to the issue gradually faded after decades of debate.

The program will allow people with one of 16 qualifying medical conditions, including cancer, a terminal illness and depression, to purchase medical marijuana with the recommendation of a doctor. The approval came eight years after a medical marijuana bill in 2013 won that year’s so-called “Shroud Award” for the “deadest” bill of the year in the House of Representatives.

Ivey called signing the bill an “important first step” and thanked the sponsors, of the bill for their work. While the bill takes effect immediately, the bill sponsor estimated it will be about 15 months or so before medical marijuana is available in the state.

“This is certainly a sensitive and emotional issue and something that is continually being studied. On the state level, we have had a study group that has looked closely at this issue, and I am interested in the potential good medical cannabis can have for those with chronic illnesses or what it can do to improve the quality of life of those in their final days,” Ivey said.

The bill was sponsored by Republican Sen. Tim Melson, an anesthesiologist. It was handled in the House of Representatives by Republican Rep. Mike Ball, a former state trooper and state investigator. The approval came after a number of lawmakers shared stories of loved ones and their illnesses.

“Hopefully, we are going to help some people,” Melson said Monday night.

Melson said for people who have tried other treatments without success, that people will have “another option to treat themselves and get some relief.” The state Senate approved the bill in February by a 21-8 vote after just 15 minutes of debate. But the House of Representatives had traditionally been more skeptical of medical marijuana proposals and sent the bill through two committees before approving it 68-34.

The bill would allow the marijuana in forms such as pills, skin patches and creams but not in smoking or vaping products.

The program authorizes use of medical marijuana to treat for conditions including cancer-related nausea or vomiting, or chronic pain; Crohn’s disease; depression; epilepsy, HIV/AIDS-related nausea or weight loss; panic disorder, Parkinson’s disease; persistent nausea; post-traumatic stress disorder; sickle cell anemia; spasticity associated with multiple sclerosis, spinal cord injury and Tourette’s syndrome.

Representatives voted to name the bill after the son of a state Democratic representative, Laura Hall. She had first introduced a medical marijuana bill over a decade ago after her son Wesley ‘Ato’ Hall had died of AIDS.

Ball, who shepherded the bill through the House, said last week that “hearts and minds” were slowly changed on the issue.

“I think we just educated them as much as anything. This wasn’t done on emotion. This was done on science,” Melson said.

Original Story from ABC News

Republicans Push for Federal Legalization of Marijuana

by The Real Dirt | May 14, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Legalization, Politics

Republicans in the senate have introduced a federal legalization bill for cannabis.

Republican lawmakers introduced legislation this week that would federally legalize and regulate marijuana, saying the proposal was necessary to ensure “individual liberty” and protect states’ rights.

Representative Dave Joyce, a Ohio Republican, introduced the proposed legislation to end the longstanding federal prohibition of marijuana along with Representative Don Young, an Alaska Republican.

The bill would remove cannabis from the Federal Controlled Substances list; instruct the government to create a regulatory framework for marijuana similar to the alcohol industry; allow the Department of Veterans Affairs to prescribe medical cannabis; and protect financial institutions dealing with marijuana distributors and growers.

“For too long, the federal government’s outdated cannabis policies have stood in the way of both individual liberty and a state’s 10th Amendment rights. It is long past time that these archaic laws are updated for the 21st Century,” Young said in a Wednesday statement.

The Republican congressman noted that he is “proud” to represent a state that has already legalized and regulated marijuana.

“This bill takes significant steps to modernize our laws by removing cannabis from the Controlled Substances Act and allowing the VA to prescribe medical cannabis to veterans, in addition to finally permitting state-legal cannabis businesses to utilize traditional financial services,” he said.

Joyce released a similar statement, explaining the importance of his proposed legislation.

“With more than 40 States taking action on this issue, it’s past time for Congress to recognize that continued cannabis prohibition is neither tenable nor the will of the American electorate,” the GOP lawmaker said. Joyce said he looks forward to working with Democrats and Republicans to pass the bill.

Read Full Story from Newsweek

Marijuana industry expected to add $92 billion to US economy in 2021

by The Real Dirt | May 12, 2021 | 420 Culture & Travel, 420 News, Blog, Business, Cannabis Law and Compliance, Culture, Legalization, Medical Marijuana

Marijuana revenue is expected to surpass $90 billion in 2021

From jobs to tax revenue to commercial real estate, the marijuana industry has a large – and growing – impact on the broader economy in the United States.

The total U.S. economic impact from marijuana sales in 2021 is expected to reach $92 billion – up more than 30% from last year – and upwards of $160 billion in 2025, according to analysis from the newly published MJBizFactbook.

To measure the industry’s economic impact, MJBizDaily analyzed similar industries and applied a standard multiplier of 3.5 on projected recreational and medical marijuana retail sales.

The numbers are a best guess because the marijuana industry’s structure is somewhat unique because it encompasses agricultural, manufacturing and retail activity.

The economic impact of the marijuana industry is not the same as supply-chain revenues that are often used to estimate the “total size” of an industry.

Rather, the economic multiplier paints a picture of the impact the industry has on the broader economy.

In this case, for every $1 consumers and patients spend at retail locations, an additional $2.50 will be injected into the economy, much of it at the local level.

That impact comes directly from the day-to-day needs of workers in the cannabis industry, including spending on life’s necessities such as housing, transportation, entertainment and more.

Marijuana businesses, consumers and patients also pay hundreds of millions of dollars in state and local taxes that are used to fund state and local government activities, including schools and roads.

In addition, real estate receives a boost from new retail, manufacturing and agricultural businesses moving into an area or established companies expanding, increasing broader demand for commercial properties.

Cultivating and manufacturing marijuana can require large investments in equipment and technology that boost not only the local economy but also areas throughout the U.S.

The list goes on.

Using the same multiplier methodology can also offer insight into the local-dollar impact from sales of recreational and/or medical marijuana.

The economic impact will vary by state based on the size, maturity and type of market.

For example, as the largest market in the U.S., California’s marijuana industry is expected to pump close to $20 billion into the state’s economy in 2021.

No other state comes close to that amount.

But states such as Colorado, Illinois, Oregon and Washington will provide more than $10 billion each for their local economies in the coming years.

Expect the same for markets in densely populated states such as New Jersey and New York as they develop.

If we consider total population, some states benefit more than others.