Rep. King Files Hemp Production and Regulation Bill: HB 3948

We anticipate a substitute filing by Representative King that will substantially change some of the language discussed in this blog.

On March 11, 2021, Rep. Tracy King (D) filed HB 3948 that focuses on the regulation and production of hemp and consumable hemp products in Texas. This bill provides administrative penalties, imposes and authorizes fees, and creates criminal offenses. Additionally, the bill covers higher institutions, permissible THC content, additives, synthetics, and more. Below, we’ve summarized this bill to keep you in-the-know with Texas hemp legislation. The Senate version of this bill is SB 1776. 

Ritter Spencer, PLLCRep. King Files Hemp Production and Regulation Bill: HB 3948
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Further Expansion of Texas’ Compassionate Use Program with H.B. 1535 in 2021

After establishing the Texas Compassionate Use Program in 2015 and augmenting it in 2019, Rep. Stephanie Klick (R) has once again initiated expanding the program with an incremental approach. With several beneficial provisions, this bill will potentially be the most effective and favorable legislation regarding medical marijuana reform in Texas. Although there are more comprehensive medical marijuana bills in other states, H.B. 1535 presents a significant opportunity for the Texas cannabis community. 

Ritter Spencer, PLLCFurther Expansion of Texas’ Compassionate Use Program with H.B. 1535 in 2021
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The Final Rule: The USDA’s Establishment of a Domestic Hemp Production Program

On January 19, 2021, the United States Department of Agriculture (USDA) put forth a final rule to concretely establish a domestic hemp production program. This final rule becomes effective on March 22, 2021, and puts forth structured rules, regulations, and guidelines regarding the production of hemp nationwide. The USDA’s final rule is a provisional response to the Agriculture Improvement Act of 2018 (the 2018 Farm Bill), which permitted states and tribal nations to participate in hemp production programs and removed hemp from the Controlled Substances Act’s (CSA) definition of marijuana. Until the issuance of this final ruling, the USDA had previously only released an interim final rule, which was open to public comments and suggested revisions. Below, we break down the distinguishing and notable provisions the USDA incorporated into this new framework.

Ritter Spencer, PLLCThe Final Rule: The USDA’s Establishment of a Domestic Hemp Production Program
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Predictions For the CBD Market in 2021

After an unprecedented year politically, socially, and economically, cannabidiol (“CBD”) continues to significantly impact the United States’ retail markets and even the health sector. This highly sought after cannabinoid is becoming increasingly common in various forms, including tinctures, topical applications, oils, capsules, and more. But what is next for CBD in 2021? Below we explain our predictions regarding CBD’s influence in the coming year. 

Ritter Spencer, PLLCPredictions For the CBD Market in 2021
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The Smokable Hemp Ban in Texas is Enjoined Until 2021

In June of 2019, the state of Texas passed HB 1325, which, in part, authorizes and directs the Texas Department of State Health Services (“DSHS”) to enact rules regarding the processing and manufacturing of smokable hemp products. See Tex. Health & Safety Code § 443.204(4). In August of 2020, DSHS banned the processing, manufacturing, distribution, and retail sale of smokable hemp products throughout the state of Texas. See Tex. Admin. Code § 300.104. With its excessive regulations, DSHS essentially stifled the smokable hemp market in Texas, forcing existing companies, such as Crown Distributing LLC (“Crown”), to move their businesses out of state.

Ritter Spencer, PLLCThe Smokable Hemp Ban in Texas is Enjoined Until 2021
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Will CBD Be Classified as a Dietary Supplement?

The U.S. Food and Drug Administration (“FDA”) currently prohibits cannabidiol (“CBD”) from being added to food, beverages, or cosmetics and from being sold as a dietary supplement. While we await further guidelines from the FDA, Congressmen Kurt Schrader of Oregon and Morgan Griffith of Virginia introduced on September 4, 2020, H.R. 8179, the “Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2020”, which would allow hemp, CBD, and any other hemp-derived ingredient to be sold as dietary ingredients in dietary supplements under the Federal Food, Drug, and Cosmetic Act (the “FD&C Act”).  

Ritter Spencer, PLLCWill CBD Be Classified as a Dietary Supplement?
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Cannabinol (CBN): Is It Legal?

As different cannabinoids begin to gain recognition in the hemp and marijuana industries, it is crucial to discuss the legal considerations and challenges facing manufacturers, producers, retailers, and other cannabis-based businesses. In such a new space, promising cannabinoids have the potential to make a significant impact on the market. One of the cannabinoids gaining notable traction is known as cannabinol (“CBN”). Today on the blog, we review its legal status.

Ritter Spencer, PLLCCannabinol (CBN): Is It Legal?
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Ritter Spencer Files Lawsuit Challenging Smokable Hemp Bans in Texas

Yesterday, our office filed a lawsuit against the Texas Department of State Health Services (“DSHS”) on behalf of our client, Crown Distributing LLC (“Crown”), challenging the smokable hemp bans in Texas. A copy of our filed Petition can be accessed here.

Ritter Spencer, PLLCRitter Spencer Files Lawsuit Challenging Smokable Hemp Bans in Texas
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Financial Due Diligence for Hemp-Related Businesses: Banking Update

In June of 2020, the Financial Crimes Enforcement Network (“FinCEN”) issued updated guidance regarding the Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) regulations for hemp-related business consumers. Financial institutions must do their due diligence for customers, but especially for hemp-related businesses, as the legalities and recommended practices are continually changing. Additionally, the National Credit Union Administration (“NCUA”) recently put forth further guidance for credit unions serving hemp-related businesses. As the hemp industry continues to progress, the banking industry is actively organizing their expectations and guidelines to keep up and simplify hemp-related interactions. Below, we summarize each of these resources to give you the straightforward essentials. 

Ritter Spencer, PLLCFinancial Due Diligence for Hemp-Related Businesses: Banking Update
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What Are the Next Big Cannabinoids?

The booming cannabidiol (CBD) industry is expanding at a rapid rate and shows no signs of slowing down. The legal cannabis industry also continues to make new strides, as cannabis advocates, reform groups, lobbyists, and lawyers remain active in legislative efforts. As time progresses, more states are adapting and adjusting their respective policies. Cannabis and hemp products, including those which contain hemp-derived CBD, are becoming less taboo and these products are now more legally accessible than ever before. 

Ritter Spencer, PLLCWhat Are the Next Big Cannabinoids?
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