THC-O Qualifies As Legal Hemp Under Federal Law, Appeals Court Says, Rejecting DEA’s Restrictive Stance

A U.S. appeals court has ruled that the hemp-derived cannabinoid THC-O-acetate is federally legal under the 2018 Farm Bill, rejecting the position of the Drug Enforcement Administration (DEA) that the chemical is a Schedule I controlled substance.

The opinion, published on Wednesday by the U.S. Court of Appeals for the Fourth Circuit, comes in an employment case that rests in part on the federal legality of the cannabinoid. In it, the majority of a three-judge panel ruled that DEA’s interpretation of what qualifies as illegal marijuana is overbroad and does not apply to THC-O, which can be synthesized from other cannabinoids found in legal hemp.

In rejecting DEA’s 2023 interpretation of the law, the Fourth Circuit panel sided with an earlier opinion out of the Ninth Circuit Court of Appeals that ruled the Farm Bill’s legalization of hemp removed restrictions on a wide range of cannabinoids, for example delta-8 THC.

“Because the statute is subject to this other reasonable (and, we think, better,) interpretation,” says the new Fourth Circuit opinion, “we reject [the employer’s] contention that the DEA’s interim final rule or letter mandates a finding that THC-O is illegal.”

“Between the DEA’s February 2023 letter and [the Ninth Circuit opinion], we think the Ninth Circuit’s interpretation of the 2018 Farm Act is the better of the two,” judges wrote. “And we’re free to make that determination ourselves, despite a contrary interpretation from the DEA, because we agree with the Ninth Circuit that [the federal definition of hemp] is unambiguous.”

Specifically, the opinion says, “The Ninth Circuit held that it didn’t need to consider the DEA’s position on synthetically derived substances because the definition of ‘hemp’ under the 2018 Farm Act was unambiguous in its application to all products derived from the cannabis plant, ‘so long as they do not cross the 0.3 percent delta-9 THC threshold.’”

To further justify its reasoning, the court cited a Supreme Court decision from this year that overturned the so-called Chevron doctrine of providing deference to federal agencies’ interpretations of ambiguous statutes, writing that it means judges need not defer to DEA’s own interpretation of the law.

The opinion says of the federal hemp definition: “Even if it were ambiguous, we needn’t defer to the agency’s interpretation, see Loper Bright Enters. v. Raimondo.”

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Missouri health department to begin enforcing ban on psychoactive cannabis compounds

On Sunday, the state of Missouri will begin enforcing Gov. Mike Parson’s executive order to crack down on psychoactive cannabis products.

The governor has said the products being targeted are often packaged to look like candy and can appeal to children, and they’re sold at convenience stores and other businesses with liquor licenses. The only exceptions will be for products that come from a source approved by the Missouri Department of Health and Senior Services (DHSS).

The executive order issued August 1st also required the Division of Alcohol and Tobacco Control to file an emergency rule to forbid liquor license holders from selling psychoactive cannabis, but the rule has been blocked by Secretary of State Jay Ashcroft.

In a statement, the Department of Health and Senior Services said the rejection of the emergency rule filing “has no impact” on their enforcing the executive order.

“Executive Order 24-10 does not apply to products under the control or purview of the Division of Cannabis Regulation pursuant to Article XIV of the Missouri Constitution and sold by establishments licensed pursuant to Article XIV of the Missouri Constitution,” the statement said.

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Intoxicating Hemp Products Are Undercutting South Dakota Medical Marijuana Sales, Businesses Tell Lawmakers

South Dakota’s legislative oversight committee on medical marijuana was thrust into the world of synthetic THC on Monday as members heard complaints about how loosely regulated, hemp-derived products are affecting the state’s medical marijuana industry.

The Medical Marijuana Oversight Committee heard from business owners and the State Public Health Laboratory director during a meeting in Pierre. They’re concerned about the growth in synthetically altered, hemp-derived products, sold under terms including delta-8 THC and delta-10 THC, which are compounds that can produce a high similar to marijuana. The compound that gives marijuana its high is delta-9 THC.

As with marijuana, the synthetic products take the form of smokable flower, pre-rolled joints, vape oil and edibles. Unlike marijuana, the companies that produce them aren’t subject to the testing, security and labeling requirements attached to the state’s legal medical cannabis market.

Alternatives not only pose a health risk, the witnesses told the oversight committee, but can cut into demand for medical marijuana since the products can be purchased without a medical marijuana patient card and can be loaded with large enough quantities of THC variants to act as a stand-in for marijuana.

Congress authorized hemp growing with the 2018 Farm Bill, and South Dakota has become the largest producer of hemp in the country after legalizing it four years ago. In that time period, the availability and variety of hemp-derived marijuana alternatives has exploded.

The Legislature passed House Bill 1125 last winter to address the “diet weed” market. The law, which went into effect in July but is being challenged in court, bans the creation or sale of some products created through chemical modification of hemp. Possession of the products is still legal.

The new law bans four THC variants, State Public Health Laboratory Director Tim Southern told the committee, but several others remain available. THC-A products, for example, remain widely available in smoke shops that had previously sold other products that are now illegal to sell.

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Nebraska Bill To Levy 30% Tax On Consumable Hemp Products Advances Out Of Committee

A legislative committee in Nebraska has advanced a sweeping tax bill that would, among other changes, impose a 30 percent sales tax on “consumable hemp” and CBD products. The proposal, broadly aimed at providing property tax relief, will now be considered by the full legislature.

On Monday, lawmakers on the Revenue Committee passed the bill, LB 34, on a 6–1 vote. The tax package combines various proposals that have been introduced during the state’s special legislative session, called by Gov. Jim Pillen (R) last month to deal with the property tax issue.

As approved by the committee, the bill would set a 30 percent sales tax on “consumable hemp products,” defined as finished products that contain hemp and that contain no more than 0.3 percent THC. Hemp products made from stalks or seed—that is, for fiber or food use—would not be included in the definition, nor would pharmaceuticals approved by the federal Food and Drug Administration (FDA).

Revenue Committee chair Sen. Lou Ann Linehan (R), who has played a central role in the tax discussion, first introduced the 30 percent hemp tax two weeks ago, in an earlier bill she sponsored. A separate proposal she introduced during the regular legislative session would have taxed consumable hemp and CBD at 100 percent, a rate that was later reduced to 25 percent before the underlying bill fizzled out.

“The 100% tax was unworkable for CBD companies in our state. They were concerned it would drive them out of business,” Sen. Anna Wishart (D), who’s backed past efforts to end marijuana prohibition in the state, told Marijuana Moment in an email at the time. “In talking with representatives from a group of CBD companies in the state, I worked with them and other senators to negotiate the tax down to 25%.”

The rate is now at 30 percent in the bill moving to the floor.

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USDA Adds Another Hemp Industry Representative To Trade Committee To Promote The Crop Globally

The U.S. Department of Agriculture (USDA) and the Office of the U.S. Trade Representative (USTR) have added another hemp industry executive to a federal trade advisory committee to help bolster efforts to promote U.S.-grown cannabis around the world.

Agriculture Secretary Tom Vilsack and USTR Representative Katherine Tai announced on Thursday that they have appointed Dylan Summers, vice president of government affairs for the CBD company Lazarus Naturals, to their Agricultural Technical Advisory Committee (ATAC) for Trade in Tobacco, Cotton, Peanuts and Hemp.

Summers is one of four hemp industry stakeholders on the 14-member ATAC, alongside National Industrial Hemp Council (NIHC) President Patrick Atagi, NIHC board member Patricia Sheikh and the Oregon Hemp Commission’s Eric Pike, who also founded the CBD company Root Origins.

The ATAC focused on tobacco, cotton, peanuts and hemp is one of six advisory committees under USDA and USTRE that offer the government technical advice about specific agricultural commodities and products.

A former marketing executive at NIHC, Kevin Latner, was appointed to a separate ATAC focused on processed foods in 2020. But he’s since left NIHC and is now affiliated with a group that deals with leather materials, while still serving on the committee.

As the latest member, Summers will serve as a hemp representative on the ATAC until at least 2028.

“The advisory committee system was created by Congress to ensure that U.S. agricultural stakeholders have input and insight into U.S. trade policy and negotiating objectives,” USDA said in an advisory. “Applications for committee membership are encouraged at any time and will be considered for future appointments.”

In recognition of hemp’s growing role in the agriculture sector, USDA and USTR formally renamed the ATAC to include last year to include the name of the crop. Previously, the first hemp appointees served on what was then called the ATAC for Trade in Tobacco, Cotton and Peanuts.

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Ohio GOP Lawmakers File Bills To Restrict And Regulate Intoxicating Hemp Products, Including Delta-8 THC

As Ohioans wait to legally purchase recreational-use marijuana, Republican lawmakers in both chambers of the General Assembly are trying to regulate adult-use hemp products.

State Rep. Sara Carruthers (R-Hamilton) introduced House Bill 642 on Thursday which would require the Ohio Director of Agriculture to issue recommendations for adult-use hemp products.

If the bill were to pass, the Director of Agriculture (who is currently Brian Baldridge) would conduct and issue a report to the General Assembly about the “sale and use of hemp products that could be used for intoxicating purposes.” The report would be in consultation with the Ohio Department of Public Safety.

The report could include:

  • A definition of adult-use hemp products that could include restrictions on the amount of THC allowed in adult-use hemp products based on serving size.
  • Where adult-use hemp products may be sold and how those products are stored.
  • Minimum age requirements to purchase adult-use hemp.
  • Penalties for selling adult-use hemp products to someone who is underage.
  • Testing standards and requirements for adult-use hemp products.
  • Advertising restrictions and labeling requirements for adult-use hemp products.
  • How to enforce these recommendations, which could be giving inspection authority to the Ohio Investigative Unit in the Department of Public Safety.

If the recommendations are adopted, they would be in effect for one year.

Ohio Gov. Mike DeWine (R) called on lawmakers earlier this year to ban or regulate delta-8, which he called “intoxicating hemp.”

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Congress Accidentally Legalized Weed Six Years Ago

Drive through durham, north carolina, where I live, and you might get the impression that marijuana is legal here. Retail windows advertise thc in glittery letters and neon glass, and seven-pointed leaves adorn storefronts and roadside sandwich boards. The newest business near my house is the Stay Lit Smoke Shop, where an alien ripping a bong invites you to use the drive-through.

In fact, neither medical nor recreational marijuana is legal in North Carolina. Technically, we’re getting high on hemp.

This is probably not what Congress had in mind when it passed the Agricultural Improvement Act of 2018, commonly called the 2018 Farm Bill, which made the production of hemp—cannabis’s traditionally nonpsychoactive cousin—legal for the first time in nearly a century. Lawmakers who backed hemp legalization expected the plant to be used for textiles and nonintoxicating supplements, such as CBD oil and shelled hemp seeds (great on an acai bowl). They didn’t realize that, with some chemistry and creativity, hemp can get you just as high as the dankest marijuana plant.

The upshot is that although recreational marijuana use is allowed in only 24 states and Washington, D.C., people anywhere in the U.S. can get intoxicated on hemp-derived THC without breaking federal law. These hemp-based highs are every bit as potent as those derived from the marijuana available in legalization states. I know this because I’ve tried recreational pot in California and Colorado, as well as 11 different hemp-derived intoxicants legally available here in North Carolina. I am not exaggerating when I say that they are indistinguishable in effect. In other words, six years ago, Congress inadvertently legalized weed across the entire United States.

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DeSantis Anti-Marijuana Legalization Campaign Gets $100K Donation From Cannabis Exec As Hemp Businesses Pledge $5M To State GOP

Amid new reporting that Florida-based hemp businesses are rallying behind Gov. Ron DeSantis’s (R) campaign to defeat a marijuana legalization initiative—with an apparent pledge from hemp executives to donate $5 million to the Republican party as it works to oppose the effort—one particular cannabis-affiliated company has come under the spotlight after contributing a $100,000 boost to the governor’s so-called “Florida Freedom Fund” after its initially tepid fundraising start.

This comes weeks after the governor vetoed a bill to ban most consumable hemp products in a move that some suspect was at least partly meant to garner the industry’s favor in his anti-marijuana crusade.

DeSantis launched the political action committee—which is targeting both the legalization measure and a separate abortion rights initiative that will appear on the November ballot—last month. It has about $121,000 on hand, the bulk of which comes from POB Ventures, which is linked to a medical cannabis worker training institution and a chain of hemp businesses.

In an exclusive interview with Marijuana Moment, the CEO of POB Ventures, Patrick O’Brien, said he’s not against adult-use cannabis legalization in principle—but is instead troubled by the specific language of the ballot initiative because it provides an option, rather than a mandate, for regulators to approve additional licenses. He suggested the framework could create a monopolized cannabis economy that primarily benefits the state’s existing medical marijuana companies, including the multi-state operators such as Trulieve that have primarily financed the legalization campaign.

“If you look very closely at the writing, they just messed up—and it was with full intent to mess this up,” O’Brien, who also runs the education platform Sativa University and the cannabis product company Chronic Guru, argued. “All they had to do was make a simple change from ‘may’ issue more licenses to ‘must’ issue more licenses, and we would have had a recreational market.”

By giving regulators that licensing discretion, the measure could effectively kneecap prospective businesses outside of the existing medical cannabis space, he claims.

But there’s been criticism of the major contribution to the DeSantis PAC, which O’Brien says he will continue to support beyond the initial donation.

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South Dakota Law Banning Intoxicating Hemp Products Takes Effect After Judge Declines To Block It

A new law barring the production or sale of high-inducing, hemp-derived cannabis products will take effect Monday after a judge declined to block it.

Hemp Quarters 605, a Pierre-based shop that sells those products, filed a lawsuit earlier this month in U.S. District Court in South Dakota. The business claims the new law’s provisions are unconstitutional and in conflict with federal law.

The 2018 federal Farm Bill legalized the production and sale of industrial hemp and hemp-derived products, provided they contain less than 0.3 percent of the intoxicating compound delta-9 tetrahydrocannabinol, known as THC, by dry weight.

House Bill 1125, signed into law in March by Gov. Kristi Noem (R), targets five types of chemicals that appear at low levels in hemp plants. The chemicals can be synthesized and added in amounts large enough for hemp products to ape the intoxicating effects of the delta-9 THC found in marijuana.

Marijuana remains illegal at the federal level, even though it’s legal in some states and medical marijuana is legal in South Dakota.

A violation of the new law will be a class 2 misdemeanor, the state’s lowest-level criminal offense. Like most laws adopted by the Legislature, its effective date is July 1.

Products like gummies, vape pens and smokable hemp containing the chemicals targeted by the new law are widely available across South Dakota. They’re sold in gas stations, grocery and liquor stores and in specialty smoke shops like Hemp Quarters 605.

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Most Consumable Hemp-Based Cannabinoid Products Would Be Banned Under Another GOP Committee’s New Bill

A GOP-led House committee has put forward a large-scale spending bill that contains language that would effectively ban most consumable hemp-derived cannabinoid products, including delta-8 THC and CBD items containing any “quantifiable” amount of THC.

The House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies posted the text of the legislation on Monday—just one day before a scheduled vote.

If enacted into law, cannabinoids that are “synthesized or manufactured outside of the plant” would no longer meet the definition of legal hemp.

The language is virtually identical to a provision of the 2024 Farm Bill that was attached by a separate committee late last month via an amendment from Rep. Mary Miller (R-IL).

The proposed ban faced sizable pushback from the hemp industry, though certain key marijuana businesses have joined prohibitionists in supporting the proposed policy change.

Many observers expect that the timeline for advancing the Farm Bill will be pushed back until next year, however, so the hemp provision’s inclusion in a must-pass spending bill raises the stakes for hemp industry advocates.

Supporters of the ban have described the language as a fix to a “loophole” that was created under the 2018 Farm Bill that federally legalized hemp.

While they’ve focused on the need to address public safety concerns related to unregulated “intoxicating” cannabinoid products such as delta-8 THC, some hemp industry advocates say the effect of the proposed language could be a ban on virtually all non-intoxicating CBD products as well, as most on the market contain at least trace levels of THC, consistent with the Farm Bill definition of hemp that allows for up to 0.3 percent THC by dry weight.

Hemp industry stakeholders have recognized that there’s a need to address legitimate concerns related to the unregulated market that’s proliferated since hemp was federally legalized, but the solution they’ve put forward is to enact strategic regulations to ensure product safety and prevent youth access.

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