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The Hemp Industry in Oklahoma: What you need to know

The Hemp Industry in Oklahoma: What you need to know

The Oklahoma Industrial Hemp Agricultural Pilot Program is taking off. There’s some important laws and rules to know so you don’t get left behind.

Oklahoma’s Industrial Hemp Pilot Program allows universities and institutes of higher education to work with Oklahoma farmers to cultivate certified hemp seed for research purposes.  The state defines industrial hemp as “the plant Cannabis Sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3% on a dry weight basis.”

So already, Oklahoma has some serious restrictions on who can grow industrial hemp. But because they are still within the federal law put forward by The Farm Bill, they don’t need to change it.

Industrial Hemp in Oklahoma

Industrial hemp grown pursuant to the Oklahoma Industrial Hemp Pilot Program is excluded from the definition of “marijuana” in the state’s Uniform Controlled Dangerous Substances Act.  The definition of marijuana also expressly excludes CBD derived from the mature stalks (including cannabidiol [CBD] derived from the fiber, oil, or cake of the mature stalks), of the cannabis plant.

At this time, it is not clear whether CBD produced from industrial hemp flower would qualify as “industrial hemp” and therefore be excluded from the state’s definition of marijuana, or whether CBD must be produced from the mature stalks of the cannabis plant (both marijuana and hemp) to be exempt from the definition of marijuana.

This mish-mash of laws is going to make it difficult for those trying to enter the legal hemp and CBD industries in the state. It seems to be a grey area regarding where CBD can be derived from, with no clear “yes or no” answer on deriving it from the actual hemp flower. People can get away with a lot of things in grey markets, you just need to be willing to take that risk.

Selling Hemp in Oklahoma

 On February 19, 2019, the Oklahoma State Department of Health issued an announcement stating that businesses that manufacture or sell food products containing CBD are required by state law to obtain a food license. The agency indicated that it would give businesses until April 26, 2019 to comply with the law before initiating further action.

Suffice to say, if you are manufacturing or selling CBD edibles or other food products and don’t have your license already, you could be in some trouble. While commercial sales are permitted in Oklahoma, a product-specific legal analysis should be undertaken to fully understand the risks of operation in the state for your product.

More information on the rules regarding hemp sales and manufacturing can be found on the Oklahoma Agriculture, Food and Forestry website. 

Be Prepared

It is important to keep in mind that Oklahoma hemp laws are different from the federal law. It doesn’t matter if you abide by federal law to the tee in Oklahoma, you can still get in trouble if you don’t go through the proper application process to join the Pilot Program.

Another aspect of cannabis industries (including hemp) is that they are mostly new. Each state establishes their own laws surrounding hemp, and those laws can change. Under those laws could be additional regulations that also change over time.

As a business owner in the hemp industry, you need to be able to adjust your business to meet these new regulations, sometimes on short, strict deadlines. However, Oklahoma is starting off on the right track. Regulations should loosen over the next year or two as more is learned about hemp’s potential, and more opportunities will be opened to the general public to enter the industry.

Ready to apply? Here’s the link to the application.

Learn more about the legal hemp industry, the laws surrounding it and the economic opportunities that are available on The Real Dirt Podcast, featuring Shawn Hauser and Andrew Livingston from Vicente Sederberg LLC. Shawn is the head of V.S.’s Hemp Division, and Andrew is the Director of Economics and Research for the firm.

Get exclusive legal advice that would costs thousands anywhere else, only on The Real Dirt.

Oklahoma Hemp Bust (Update)

Oklahoma Hemp Bust (Update)

Four men were arrest during an Oklahoma hemp bust back in January. Now two men are finally free, with the other two with unsure futures.

The Real Dirt reported on a story back in January that involved a company transporting hemp through Oklahoma. The hemp was poorly stored, resulting in odor that could be smelled 2 miles down the road, by police.

What happened next cause quite some controversy in the new legal Oklahoma hemp industry.

The Original Oklahoma Hemp Bust

In early January Andrew Ross from Aurora, CO was providing security for the transport of several thousand pounds of what he claimed to be industrial hemp from Oklahoma to Colorado. Ross and the semi-truck he was assisting was pulled over in Pawhuska, Oklahoma after running a red light. 

The officer smelled what he claimed to be cannabis as he approached Ross’ van, at which point Ross told him that they were the security for the semi-truck transporting hemp. Ross was then instructed to open the semi-truck, revealing over 9,000 pounds of hemp or cannabis.

After conducting a field test, which tests for any amount of THC, the officer believed the plants to be cannabis and not hemp. However, legal hemp can have up to .3% THC. This led to a lengthy delay in the case as the local police had to send the plants to be lab-tested, which was additionally delayed by the government shutdown in January.

During this time, two of the four who were arrested — Ross, one other in the van and another two in the semi-truck were arrested in total — have remained in prison since they couldn’t afford bail. They most likely won’t be released until the conclusive results of the tests come back.

The Update

While four men were arrested back in January, only the two truck drivers who couldn’t afford bail have remained in prison, until about a month ago. In late March, all charges were dropped against the truck drivers Tadesse Deneke and Farah Warsame.

But for Andrew Ross and his partner that provided security for the transport, the legal battle is not over. While a local man from Tulsa actually offered to pay the bond for Deneke and Warsame to get them out of jail, setting them free, The DA is still pursuing charges aginst the security company.

Of the seized material that was tested, eight of the eleven tests conducted came back “hot”. In other words, the THC levels of the samples tested above the legal amount of .3%, with the hot samples testing between .38% and .5% THC. That is no longer considered legal hemp under federal law.

According the DA’s ongoing investigation, the security drivers for the truck may have had more knowledge about what they were transporting compared to the truck drivers. Implicating that they could have know they were transporting illegal hemp, and let the drivers, who had no experience with hemp, transport it anyway.

What Comes Next?

While the security guards are not being held in jail since they posted bail, their charges have still not been dropped. If convicted, they could face up to 20 years in prison for transportation of illegal cannabis.

And this is case is still far from over. The next court appearance for the security guards is not until August 8th, 2019. The evidence is starting to point toward foul play. If the security guards knew they were transporting illegal material, they will be held responsible, along with the company that grew the hemp to begin with.

If it really is true that almost none of the hemp on the truck was .3%, then this is a case of someone trying to skirt the law, but not getting close enough to do it. This is a weeding out process, and people will try to take advantage of a new, infantile industry with little regulation or state oversight currently.

The Real Dirt will continue coverage of this case as it develops.

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Legal Hemp or Illegal Cannabis?

Legal Hemp or Illegal Cannabis?

Legal hemp may have been included in the 2018 Farm Bill, but that hasn’t stopped some serious issues from arising since its passing.

Farmers everywhere rejoiced when legal hemp was signed into the Farm Bill at the end of 2018. But the bill has yet to actually take effect, and it could be another year before federal law surrounding hemp actually takes hold.

This delay hasn’t stopped many from jumping in head first to the hemp industry in an attempt to get ahead of the curve. Unfortunately, state governments aren’t as eager to jump in.

Oklahoma Hemp Bust

In early January Andrew Ross from Aurora, CO was transporting several thousand pounds of what he claimed to be industrial hemp to Oklahoma to Colorado. Ross’ semi-truck was pulled over in Pawhuska after running a red light. 

The officer smelled what he claimed to be cannabis as he approached Ross’ van, at which point Ross told him that they were the security for the semi-truck transporting hemp. Ross was then instructed to open the semi-truck, revealing over 20 bags of the green plant.

After conducting a field test, which tests for any amount of THC, the officer believed the plants to be cannabis and not hemp. However, legal hemp can have up to .3% THC. This has led to a lengthy delay in the case as the local police have had to send the plants to be lab-tested, which was additionally delayed by the recent government shutdown.

Unfortunately, during this time, two of the four who were arrested — Ross and one other in the van and another two in the semi-truck were arrested in total — have remained in prison since they couldn’t afford bail. They most likely won’t be released until the conclusive results of the tests come back.

Legal Hemp In Oklahoma

Industrial hemp was legal in Oklahoma before the Farm Bill was signed. This means that the hemp Ross claims to be transporting, is perfectly legal in the state. But that isn’t the problem here.

The issue is that law enforcement and government officials alike cannot confidently judge the difference between “legal hemp” and “illegal cannabis”. When field tests will always say cannabis if there is any trace of THC, no police officer can realistically judge a situation in which they smell what they think is cannabis, even if hemp smells exactly the same.

A similar issue has arose in Idaho, where there are no such hemp laws on the books, and the government is in no hurry to abide by the new Farm Bill.

Biggest Bust In History (?)

Law enforcement officials are saying it could be the biggest cannabis bust in state history. If it is cannabis that they found in the back of Dennis Palamarchuk’s semi-truck, that is.

During a routine highway semi-truck safety inspection, the conducting officer smelled strong odor of what they suspected to be cannabis. Much like Ross’ story, the truck statement claimed that the 31 bags in the truck all contained industrial hemp. However, since this happened in Idaho, where there are no laws on the books regarding hemp at the state level, it has caused more problems.

legal hemp bust in oklahoma and idaho

Over 6,000 pounds of hemp that supposedly tested positive for THC. The amount of THC has not been specified.
Photo courtesy of Idaho State Police

According to the Farm Bill, states that do not have hemp laws on the state level have two options. Propose a plan to the federal government for their own hemp laws that still stay within federal guidelines, or follow federal law on the state level. Idaho has neither submitted a plan nor assumed the laws put forth in the Farm Bill as of yet.

This means that whether or not Palamarchuk was transporting hemp or cannabis is irrelevant. In Idaho, both are currently still illegal. Thus, Dennis was arrested for trafficking, and as it stands, police have seized over 7,000 pounds of what they consider to be cannabis. While testing positively as hemp may help Dennis legally, it appears that there is little to be done for him in this situation.

What Happens Next?

These two separate but similar issues have highlighted serious problems in law enforcement’s ability to recognize and distinguish differences between now federally legal hemp, and illegal cannabis. Current technology does not allow police officers conducting a normal stop and search to confidently judge the results of a field test.

As laws change, state governments will have no choice but to follow federal law in some manner and allow transportation of industrial hemp. How the states will enforce this while keeping hemp separate from cannabis is yet to be seen. If these two busts are any sign of things to come, however, we have a long way to go.