Tag: hemp

Georgia $150M class action lawsuit accuses STIIIZY, Cookies, others of selling marijuana as hemp

A federal racketeering lawsuit filed in Georgia last week alleges that California cannabis brand leaders STIIIZY and Cookies – along with 12 co-conspirators – illegally sold marijuana products that had been intentionally mislabeled as federally-legal delta-8 hemp goods, and asks for a minimum of $150 million in damages.

The class action suit, filed Feb. 6 in U.S. District Court in the northern district of Georgia, claims that resident Hannah Ledbetter was misled by the defendants into purchasing the federally illegal marijuana products that had been sold as federally legal hemp goods that included 0.3% delta-8 THC or less, which is the federal threshold for legal hemp products.

“Defendants have conspired to import, manufacture, distribute, and possess illegal (delta-8) THC vape pens that are marijuana” and not hemp under federal law, the suit charges. “This scheme could only be accomplished through a pattern of racketeering activity.”

The suit asserts that Ledbetter carefully inspected the product labels prior to purchase “because she did not want to break the law.”

Rather, the suit claims, the products that Ledbetter ultimately bought – at multiple retail chains that do business in Georgia – were found to have delta-9 THC “far above what is allowed by law,” according to third-party testing results.

STIIIZY IP LLC, Cookies Creative Consulting & Promotions, and their partners “have facilitated the manufacturing, distribution, and/or sale of illegal marijuana to thousands of people over the course of the last four years,” the suit charges

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Florida Senate Committee Unanimously Passes Bill To Restrict Hemp-Derived Products With New THC Limits

Ashley Guy runs a smoke shop in Tallahassee. She says she’s thrived since she moved from Seattle to Florida five years ago, with profits of more than $5 million from the sales of cannabis hemp products. But if a new proposal in the Florida Legislature passes, “this would just decimate business” she said on Tuesday.

She added that if the caps on THC—the compound in the plant associated with getting you high—on hemp products were imposed, customers would simply buy multiple packages of “gummies,” or would buy higher-dose products online from other states.

Guy and other hemp entrepreneurs are back in the legislature in 2024, fighting again to ensure they can continue to make a living in the hemp industry. But on Tuesday, lawmakers in a committee decided to impose restrictions on hemp products and substantially regulate the hemp market in Florida.

That was met with strong opposition by members of the industry, but nonetheless, the legislation (SB 1698) passed unanimously in the Senate Agriculture Committee. (Keep in mind that lawmakers in the House and Senate need to agree to be able to pass the legislation.)

The measure is being sponsored by Polk County Republican Colleen Burton.

It would make a number of changes to the hemp industry in the state, which has operated legally since 2019, shortly after the passage of the 2018 U.S. Farm Bill. That bill made hemp production and distribution legal under federal law and allowed states to create such programs. The Farm Bill defined hemp as the cannabis plant with one key difference: hemp cannot contain more than 0.3 percent of THC.

The most lucrative part of the hemp industry has involved the production of biomass that contains cannabidiol (CBD), a non-psychoactive compound believed to treat health conditions like anxiety, stress, anxiety and inflammation.

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State Agriculture Departments Across U.S. Push Congress To Triple The THC Limit For Hemp As 2024 Priority

The National Association of State Departments of Agriculture (NASDA) is calling on Congress to increase the THC limit for legal hemp as one of their 2024 policy priorities.

As lawmakers resume work on the next iteration of the Farm Bill, the group representing state agriculture officials in 50 states and four U.S. territories is aligning itself with hemp industry stakeholders, urging Congress to more than triple the THC threshold for hemp from the current limit of 0.3 percent THC by dry weight to 1 percent.

“Increasing the THC concentration to one percent would enable farmers to plant more seed varieties,” NASDA said in a one-pager describing its 2024 Farm Bill asks. “This action also retains limits on THC concentration while giving farmers greater assurance their crop will be viable.”

It’s one of five key policy areas for the legislation that the association says it will be focusing on this year. NASDA CEO Ted McKinney said in a press release on Monday that members “see urgent need for action in these areas to support farmers and ranchers in their ability to grow our nation’s food, fiber and fuel.”

“Further, we believe these are the areas where state departments of agriculture are uniquely positioned to champion policy solutions this year,” he said.

The 0.3 percent THC limit for hemp that was imposed under the 2018 Farm Bill that federally legalized the crop has long been subject to criticism from stakeholders and lawmakers across the aisle. And one Justice Department researcher recently called into question the rationale for the restriction, suggesting it was arbitrarily decided based on a 1950s-era article that was adopted into federal statute.

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Ohio Governor Pushes Lawmakers To Ban Or Limit Delta-8 THC Products

Ohio Gov. Mike DeWine (R) wants the state to either ban or regulate delta-8 THC products.

But since there’s nothing he can do administratively, he is urging lawmakers to do something in regards to intoxicating hemp products like delta-8.

“I would be very happy to have a ban,” DeWine said during a press conference, holding up packages of delta-8—one resembling Frosted Flakes, another looking like Cocoa Puffs and a third that looks like Trolli candy.

“It’s up to the legislature. If it is moved basically under the marijuana protocol, you wouldn’t see packaging like that…and I would be satisfied with that.”

Seventeen states have banned delta-8 and seven more have restrictions around it, according to the National Cannabis Industry Association.

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Justice Department Researcher Questions 0.3% THC Limit For Hemp, Saying Federal Law Based On 1950s Anecdote

A person would need to “smoke a joint the size of a telephone pole” to get high from hemp, even if it marginally exceeds the 0.3 percent THC threshold that separates the federally legal crop from prohibited marijuana, a Justice Department researcher says.

It’s part of what makes the federal definition of hemp, as set out in the 2018 Farm Bill, a bit perplexing. While the intent of the low THC standard is to prevent people from accessing an intoxicating product, the origin of the specific 0.3 percent rule doesn’t appear to be especially grounded in science.

“It’s just a really hard line, and it’s a really low line,” Frances Scott, a physical scientist at the National Institute of Justice (NIJ) Office of Investigative and Forensic Sciences under DOJ, said in an episode of the Justice Today podcast that was posted this month.

In 2022, Scott helped lead a study that involved testing dozens of products that are marketed as legal hemp. The findings, published in Police Chiefs Magazine, revealed that the “vast majority” crossed the 0.3 percent THC threshold, making them “legally marijuana.”

“Some of these were like 0.35 percent, 0.4 percent, okay? So they’re really tiny amounts,” she said. “The implication is, this is legitimate farmers legitimately trying to grow hemp. They’re not trying to grow illicit marijuana and get you high because, quite frankly, you’d have to smoke a joint the size of a telephone pole to get much off of that 0.35 percent, right?”

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Minnesota Officials Form Interagency Plan To Rein In Sales Of High-THC Marijuana Being Sold As Legal Hemp

Minnesota’s cannabis regulators say they have a plan to fill a gap in state law that could be letting some hemp retailers sell marijuana flower without consequence.

Charlene Briner, the interim director of the new Office of Cannabis Management, said Thursday that she is working with other agencies to provide a temporary method to inspect and test raw cannabis flower to make sure it does not violate current law.

She said the agency will look into using inspectors from the Office of Medical Cannabis and the Department of Agriculture to exercise the Office of Cannabis Management’s authority to stop the sale of cannabis flower that is illegal marijuana masquerading as legal hemp.

“OCM is evaluating how to leverage existing enforcement capacity at the Office of Medical Cannabis to act on OCM’s behalf and how we can develop capacity to test raw cannabis flower,” Briner said.

“We’ll be sharing more about those plans as we put them in place,” she said.

To be legal to sell now, hemp flower must contain only 0.3 percent delta-9 THC or less. Such hemp plants do not have enough THC to be intoxicating when eaten or smoked. But by processing the hemp for edibles and beverages, the THC content can be enhanced to produce an intoxicating effect.

Some hemp retailers and smoke shops have been selling raw cannabis flower that might or might not exceed those legal limits. Hemp inspectors have not acted against such sales—or even to test the flower—because while the Office of Medical Cannabis regulates hemp sales, the law doesn’t give it any authority over unprocessed flower.

The loophole became public late last year when former Office of Medical Cannabis director Chris Tholkes discussed it on the national podcast Weed Wonks. She said her inspectors have seen sales of raw cannabis flower that the stores claim is legal hemp but that the inspectors suspect is not.

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Ohio GOP Governor Pushes Lawmakers To Allow Marijuana Sales ‘Very Quickly’ And Ban Intoxicating Hemp Products

Ohio’s Republican governor is adamant that lawmakers must pass legislation as soon as possible to expedite regulated recreational marijuana sales and also ban purchases of intoxicating hemp products.

With the legislature coming back into session for the new year, Gov. Mike DeWine (R) said “we just need to get something done” to address the adult-use sales rollout timeline under a voter-approved legalization law that took effect last month.

It’s a “strange situation” the state has found itself in, he said, with sales currently set to open up in late summer or early fall. DeWine said he supports a bill the Senate passed last month, which would provide for sales through existing medical cannabis dispensaries within 90 days of enactment. However, he acknowledged the House has a differing version and pushed for lawmakers to “work together and make sure that we can deal with with this problem.”

“Our bill that we would prefer would allow us to start selling this marijuana in a controlled basis. The people who said they were for this said, ‘Let’s do it the same way we do with liquor—control how it’s done,’” he said. “Under our bill, we would be able to sell that very quickly now, early in this year, through the facilities that now do the medical marijuana.”

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Missouri Bills Would Regulate Hemp-Derived Delta-8 THC Like Marijuana

A Republican state senator has filed legislation to renew last spring’s failed effort to regulate intoxicating hemp products in Missouri, such as Delta-8 drinks and edibles.

Delta-8 THC products can be sold in stores in Missouri because the intoxicating ingredient, THC, is derived from hemp, not marijuana which is a controlled substance. And hemp is federally legal.

There’s no state or federal law saying teenagers or children can’t buy them or stores can’t sell them to minors—though some stores and vendors have taken it upon themselves to impose age restrictions of 21 and up.

And there’s no requirement to list potential effects on the label or test how much THC is actually in them.

State Sen. Nick Schroer, a Republican from O’Fallon who chairs the legislative committee that oversees Missouri’s marijuana rules, said the products are too easily accessible to children, particularly teenagers.

“I’ve had constituents reaching out to me saying that their kids had been hospitalized,” Schroer said.

Schroer’s bill would task the Missouri Department of Health and Senior Services (DHSS) with regulating these products, as the agency currently does for the state’s marijuana program. And products would have to be sold at DHSS-licensed dispensaries. State Rep. Chad Perkins, a Bowling Green Republican, has filed a companion bill in the House.

DHSS spokeswoman Lisa Cox said the department does not take positions on proposed bills.

“However,” she said, “we do acknowledge the potential and ongoing public health impact of unregulated THC products.”

Over the past few years, Cox said there’s has been an increase in children going to the hospital for cannabis exposure.

“The department has increased its emphasis on regulatory mechanisms that protect health and children in order to minimize any contribution of the regulated cannabis market to such incidents,” she said. “As of right now, there is no such protective framework for unregulated THC products.”

Sean Hackman, president of the Missouri Hemp Trade Association, said his organization advocates for measures such as prohibiting sales to minors and mandating clear user instructions and rigorous product testing.

“While any overdose report, especially those involving minors, is deeply concerning, this does not constitute a public health emergency but rather an opportunity for improved regulation,” Hackman said in an email to The Independent in response to the legislation.

The association opposes tasking the department with regulating the products and requiring them to be sold in dispensaries.

A similar bill filed by Republican state Rep. Kurtis Gregory of Marshall got stuck in committee during the last legislative session.

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New York Lawmakers Send Governor Bill To Allow Hemp Seeds In Food For Pets, Horses And Llamas

The New York legislature has sent a pair of bills to the governor that would allow hemp seeds to be included in animal feed for pets, horses and camelids such as llamas and alpacas.

About five months after the Assembly and Senate passed the legislation from Assemblymember Donna Lupardo (D) and Sen. Michelle Hinchey (D), the identical versions from each chamber were transmitted to Gov. Kathy Hochul (D) on Wednesday.

The measures specify that industrial hemp seed that could be added to certain animal feed includes seed hulls and seed meal. Supporters say that the cannabis products could be a nutritious additive that’s high in protein and fiber.

“Industrial hemp produces a wide range of useful materials, including building materials, fibers that can be woven into clothing, chaff for animal bedding, and seeds that are available on grocery store shelves in items [like] granola, snack bars, and cookies,” a justification memo attached to the legislation says. “Industrial hemp is federally approved for each of these uses.”

“Only the seeds of the industrial hemp plant, including shell casings and seed meal resulting from processing hemp hearts for human consumption, would be authorized for use in animal feed,” it continues. “Studies indicate that industrial hemp seed provides a high protein, high fiber ingredient for animal consumption.”

The legislation, which is similar to measures that have been enacted in Montana and Pennsylvania, is backed by the National Hemp Association.

“Protecting industrial hemp production in New York will encourage greater production and research into the myriad uses of this plant, including as a renewable building material,” the text says. “It will also open the door for small, New York-based animal food processors to establish this marketplace before hemp seeds are authorized far use in commercial feed nationally.”

A fiscal note says that the legislation could ultimately increase tax revenue for the state because of “increased sales of New York hemp seed product and commercial feed.”

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