Category: Hemp

The Smokable Hemp Ban in Texas is Enjoined Until 2021

Smokable Hemp Ban 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.

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Will CBD Be Classified as a Dietary Supplement?

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”).  

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Cannabinol (CBN): Is It Legal?

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.

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Financial Due Diligence for Hemp-Related Businesses: Banking Update

Financial Due Diligence for Hemp-Related Businesses

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. 

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What Are the Next Big Cannabinoids?

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. 

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DSHS Final Rules

DSHS Final Rules

The Texas Department of State Health Services (“DSHS”) adopted and published its final rules governing the Texas consumable hemp program (the “DSHS Final Rules”) to the Texas Register. The DSHS Final Rules become effective on August 2, 2020. Any potential changes to the statute governing our hemp program will not occur until the Texas Legislature reconvenes in January of 2021.  

To the detriment of many in the Texas hemp industry, the DSHS Final Rules only slightly diverge from the DSHS Proposed Rules. Our prior blog series on the DSHS Proposed Rules provided an in-depth analysis of the proposed DSHS rules. This blog focuses on the changes made by DSHS in the adopted Final Rules. 

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Marijuana Enforcement: By The Numbers

Marijuana Enforcement By The Numbers

Over the past decade, a growing number of states have enacted marijuana legalization laws or have moved toward discretionary or non-enforcement policies for marijuana offenses, resulting in an overall decrease in arrests related to the substance. But how do the numbers differ from area to area or from race to race? Earlier this year, the American Civil Liberties Union (the “ACLU”) detailed a research report entitled A Tale of Two Countries: Racially Targeted Arrests in the Era of Marijuana Reform to examine racial disparities at a national, state, and county level regarding marijuana enforcement. Below, we take a closer look at the report and provide a detailed overview to further explore marijuana culture in the United States. 

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Seven Problems with the DSHS Proposed Rules

Seven Problems with The DSHS Proposed Rules

Our hemp attorneys recently sat down to identify seven issues with the Texas Department of State Health Services (“DSHS”) Proposed Rules for Texas’ consumable hemp program. If you are a consumable hemp manufacturer, processor, distributor, or retailer, it is not too late to submit your comments directly to DSHS. Comments can be submitted to DSHS until June 7, 2020.

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DSHS Proposed Rules Part II

DSHS Proposed Rules Part II

If you joined us for Parts I through III of this Series, you will know that the Texas Department of State Health Services (“DSHS”) published its proposed rules to govern the Texas consumable hemp program (the “DSHS Proposed Rules”) in the Texas Register on May 8, 2020. The DSHS Proposed Rules are open for public comment for 31 days, meaning the public comment period closes on June 7, 2020. To provide comment on any of the draft rules, you can submit your comments directly to DSHS via email to DSHSHempProgram@dshs.texas.gov. When emailing comments, you will need to indicate “Comments on Proposed Rule 19R074 Hemp Program” in the subject line. Written comments may also be submitted to Rod Moline, Ph.D., R.S., Section Director, Mail Code 1987, Texas Department of State Health Services, P.O. Box 149347, Austin, Texas 78714-9347. 

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