Welcome to our weekly roundup of CBD and hemp-related legal and regulatory news:
CBD
Calif.-based CBD retailer, manufacturer denied Rule 11 sanctions against wellness company
U.S. Magistrate Judge William Matthewman found Medterra CBD and Rejuvenol Laboratories didn’t meet their “very high burden” of establishing Rule 11 sanctions against Healthcare Resources Management Group were warranted. Judge Matthewman noted Rule 11 is meant to deter baseless filings, however, just because the record evidence failed to establish a triable issue against Medterra and Rejuvenol, that isn’t sufficient to make specific findings of Rule 11 bad faith conduct. Law 360 (sub. req.)
Hemp
Va. bill places hemp stores, farmers at risk of losing business
A bill heading to Gov. Glenn Youngkin’s (R) desk could criminalize the use and distribution of CBD products and potentially hurt hemp farmers, if passed. The Virginia Hemp Coalition is urging Youngkin to amend SB 591 to avoid thousands of Va. businesses from crashing. Advocates said the bill contradicts federal law, which currently allows hemp products to be sold with 0.3% Delta 9 THC. The bill was introduced by Sen. Emmett Hanger (R), who grew concerned upon learning of kids being hospitalized in Va. after accidental ingestion of cannabis. Marijuana Moment
Minn. regulator clarifies trace amounts of Delta-9 in hemp is not marijuana
Hemp industry advocates applauded a decision by the Minn. Board of Pharmacy saying trace amounts of Delta-9 found in hemp products don’t violate the CSA. The conclusion addresses an issue raised by a Minn. Court of Appeals decision in Sept. State and federal law determine hemp is legal so long as it contains less than 0.3% Delta-9. However, the appeals court upended that definition and said the distinction between marijuana and hemp stops at the plant. Star Tribune.
N.Y. opens online applications for cannabis licensing to hemp farmers
Gov. Kathy Hochul (D) opened applications for hemp farmers looking to obtain a license to grow adult-use cannabis in the state through the state’s Seeding Opportunity Initiative. The initiative, she said, “will create meaningful opportunities for economic empowerment for New York farmers and impacted communities.” The application portal advances what Hochul is calling the first-in-the-nation program intended to jumpstart the cannabis industry, allowing those with cannabis-related offences to be able to sell products grown in N.Y. WHAM.
Atlanta law firm seeks court order declaring chemical related to intoxicating ingredient in marijuana is legal
Pate, Johnson & Church filed the suit in response to DA Patsy Austin-Gatson’s statement that the possession, sale or distribution of Delta-8 is illegal under state law. The suit claims the DA interpreted “hemp” and “hemp products” incorrectly under state law. In addition to a declaration that Delta-8 and Delta-10 products are legal, the firm is seeking a court order prohibiting Austin-Gatson and the state from prosecuting business owners for selling them. Fox 5 Atlanta.
Cannabis
Most regulation of hemp in Mich. will transfer to Cannabis Regulatory Agency
The Michigan Department of Agriculture and Rural Development (MDARD) currently regulates hemp, however, effective Apr. 13, responsibility for hemp regulation will turn over to the Marijuana Regulatory Agency, which becomes the Cannabis Regulatory Agency. Authority over hemp processors and handlers, under the Industrial Hemp Research and Development Act, will shift to the new CRA as well, but MDARD will continue to oversee hemp cultivation. The Daily Reporter.
Pa. hospital faces discrimination lawsuit for cancelled job offer over medical marijuana use
Kayla Rivera filed a lawsuit against St. Luke’s Physician Group, alleging violations of the Americans with Disabilities Act and Pa.’s Medical Marijuana Act. Rivera’s complaint notes that she suffers from PTSD and anxiety disorders and she was certified by a medical physician to use medical marijuana in the evenings so she wouldn’t be impaired during the daytime. Rivera was offered employment at the center as a receptionist, contingent upon a drug test and medical examination. She received a positive test for marijuana, and the next day, she provided a St. Luke’s substance abuse coordinator with a copy of her medical marijuana card. When Rivera inquired a few days later about starting her employment, she received a letter notifying her that the employment offer had been withdrawn. Law 360 (sub. req.)
Federal transportation agency proposes new marijuana testing method
Current DOT policy mandates urine testing for marijuana, which advocates and experts view as problematic because THC metabolites can appear in a person’s urine for weeks or months after consumption, resulting in false positive results for people who are not actually impaired on the job. The practice of forcing workers to urinate in a collection jar is also viewed as a potentially invasive procedure. In a notice, the department is recommends testing of oral saliva be added as an alternate option. According to the DOT, THC is generally detectable in saliva anywhere from one to 24 hours after use. Marijuana Moment
Ill. obtains court order to award 60 additional craft cannabis growing licenses
Sangamon County Judge Gail Noll lifted the injunction that held up awarding the licenses until litigation was settled, allowing the state cannabis regulator to award 60 additional craft cannabis growing licenses. The Ill. Department of Agriculture issued a statement that it’s evaluating the ruling “to determine the best way to move forward as quickly and efficiently as possible while maintaining our commitment to a fair and equitable licensing process.” Craft growers see the decision as a major victory for applicants trying to get started in the business. Chicago Tribune (sub. req.)
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