ALERT: New Federal Hemp Restrictions

On November 12, President Donald Trump signed into law an appropriations package which includes provisions that recriminalize hemp products containing THC and other cannabinoids that have spread in popularity since being legalized under the 2018 Farm Bill. Under the Farm Bill, hemp has been considered legal hemp if it contains less than 0.3 percent delta-9 THC on a dry weight basis. Under that basis the hemp industry has grown into a multibillion-dollar industry, producing all manner of hemp-derived, cannabinoid containing products, such as beverages, creams, and gummies.  

The new restrictions under the spending bill come into effect within one year and state that the weight will apply to total THC— not just delta-9 THC – including THCA, delta-8, and other popular isomers. This includes “any other cannabinoids that have similar effects (or are marketed to have similar effects) on humans or animals as a tetrahydrocannabinol.” The ban also applies to “any intermediate hemp-derived cannabinoid products which are marketed or sold as a final product or directly to an end consumer for personal or household use” as well as synthetic or manufactured cannabinoids not found naturally. Most importantly, legal hemp-derived products will be limited to a total of 0.4 milligrams per container of total THC or any other cannabinoids with similar effects. While technically the ban does not apply to CBD, many CBD containing products (such as “full spectrum” products) will still be impacted if they contain even trace amounts of banned cannabinoids over these limits.

The ban also requires that within 90 days, the FDA and other agencies must publish lists of all cannabinoids known to be naturally produced by Cannabis sativa L. plants and all tetrahydrocannabinol class cannabinoids.

Are additional changes to the ban expected in the meantime? The ban faced significant opposition from both Democrats and Republicans prior to passing, and numerous legislators have already introduced measures to limit or amend the ban. Dilworth Paxson’s cannabis attorneys are currently monitoring the rapidly developing legislative landscape. 

What does this mean for hemp manufacturers, growers, researchers, and retailers? Hemp businesses, retailers which stock hemp-derived products, and researchers using hemp-derived material should immediately evaluate current inventory, distribution and wholesale agreements, leases, and practices for compliance with the ban and to assess any potential business and legal impact prior to the ban going into effect. Kiliaen Strong and Dilworth Paxson’s experienced cannabis attorneys are available to assist in this process.