Month: March 2019

Federal Legislation to Allow Banks to Work with State-Legal Marijuana Businesses Advances in the House

Posted by wnnadmin | Mar 31, 2019 | News |

Federal legislation that would allow banks and other financial institutions to provide services to marijuana businesses that are legal under their state’s law has been passed by a key House panel.

According to Reuters, the bill would provide sought-after clarity to banks across the country that want to do business with the growing marijuana industry, where companies have struggled to gain access to the financial system. The issue is especially relevant now that 10 states in the U.S. have legalized marijuana for recreational purposes; over 30 have passed some form of medical marijuana legalization.

The measure was broadly backed by a mixture of Democrats and Republicans. It now proceeds to the full House, where it is expected to be passed by the Democrat-led chamber in the near future. However, the bill faces an uncertain future in the Republican-led Senate, according to analysts.

“While all but 3 states allow for some form of legal cannabis use, marijuana is still illegal on the federal level”, states Reuters. “That has left banks largely unwilling to do business with businesses that sell marijuana or related enterprises, out of concern they could run afoul of federal laws.

In particular, banks are wary that taking deposits from pot businesses while marijuana remains illegal at the federal level could violate anti-money laundering laws, which in turn could put at risk their federal charters or access to federal payments systems.”

Currently, companies in the marijuana industry have extremely limited options for dealing with their finances, with many relying on strictly cash to do business. Numerous lawmakers noted that operating exclusively in cash can be extremely dangerous, making companies a target for theft.

The bill has the backing of the banking industry, where firms are eager for reassurance from the federal government they can engage in this sort of business. The American Bankers Association has told Congress it takes no stance on the legality of marijuana, but its widespread adoption by states “raises practical issues that must be addressed.”

Reuters notes that “Some Republican lawmakers expressed concern over permitting banks to engage in business that is still technically illegal. If Congress wants to allow banks to get into the marijuana business, it should legalize marijuana, they said.”

But proponents of the bill argued that with the vast majority of U.S. states taking steps to further legalize marijuana use, it makes no sense to refuse those businesses access to banks.

“The toothpaste is out of the tube, my friends,” said Representative Denny Heck, a Democrat from Washington.

The post Federal Legislation to Allow Banks to Work with State-Legal Marijuana Businesses Advances in the House appeared first on TheJointBlog.

FDA Suggests Congress Holds the Key to Legalizing CBD-Infused Foods

Posted by wnnadmin | Mar 30, 2019 | Hemp |

During a recent interview with the Brookings Institution, Scott Gottlieb, the departing head of the Food and Drug Administration (“FDA”), explained it would take several years for the agency to come up with rules that would legalize the use of hemp-derived cannabidiol (Hemp-CBD) in food products, unless Congress steps in.

Gottlieb acknowledged the strong interest among CBD stakeholders and lawmakers in developing a regulatory framework through which Hemp-CBD could be infused to food. The problem, Gottlieb explained, is that CBD has been approved as a drug (i.e., Epidiolex) and was not previously used in the food supply.

The FDA Commissioner further argued that putting a drug that wasn’t previously used in food into the food supply would require the agency to go through a formal rulemaking process.

As we previously discussed, thus far, the FDA has only adopted informal, non-binding guidelines as its primary method of policy making for CBD as they afford the agency more flexibility. Adopting regulations through the formal rulemaking process would take two to three years, possibly longer, given the controversial nature of CBD as a compound closely associated with marijuana and that is used as a drug ingredient. Gottlieb suggested that a more efficient way of clarifying the situation would be for Congress to issue additional legislation that expressly allow the use of Hemp-CBD in foods. While the congressional intend behind the 2018 Farm Bill was to legalize the production of Hemp-CBD, lawmakers failed to define the meaning of “production,” thus, leaving open for interpretation whether the sale of Hemp-CBD and its use in food product was legal.

Similarly to a statement made in front of a House Appropriations subcommittee last month, the Commissioner suggested that the approval of Hemp-CBD infused food may turn on whether the CBD infused to food is an isolate or is used in its naturally-occurring form (see here for more background information on this distinction).

I think you need to come up with a framework that defines concentration levels, where you would create some kind of cut off, and that would be up to the agency to do….CBD in high concentrations isn’t risk-free, and in low concentration, it probably is safe—I don’t want to make a declaration here. It’s also a question of whether it’s providing any kind of therapeutic benefit in those concentrations, although people seem to believe that it has some value.”

During the interview, the Commissioner also shared that the Drug Enforcement Administration (“DEA”) would have to “formally deschedule” Hemp-CBD before moving forward with regulatory changes, even though the 2018 Farm Bill removed Hemp-CBD from the Controlled Substance Act and shifted its regulation from the Department of Justice (which oversees the DEA) to the U.S. Department of Agriculture.

I think the prevailing view is that the plain language of the statute [the Farm Bill] intended for that, but I’m not sure that DEA has done that yet. But that’s another step that would have to take place. DEA would have to formally de-schedule CBD derived from hemp.”

For now, Gootlieb explained that the agency is creating a “high-level work group” tasked with identifying “some potential legislative pathways to create a framework for allowing CBD into the food supply.” The work group will soon be formally announced and will hold a public meeting to solicit comments from Hemp-CBD stakeholders. According to the Commissioner, the work group should release recommendations by the summer.

Study: Washington Teens Not Using More Marijuana Following Legalization

Posted by wnnadmin | Mar 29, 2019 | News |

The legalization of marijuana in Washington State is not associated with an increase in marijuana use by most teens, according to a study published in The Journal of Adolescent Health.

For the study researchers from Washington State University, the University of Massachusetts, and the Colorado School of Public Health assessed trends in teen marijuana use and employment in the years immediately prior to and immediately following the enactment of retail marijuana sales (2010 to 2016), reports NORML in a news release.

The study found that “marijuana use decreased significantly among working and non-working 8th and 10th graders.” Marijuana use similarly declined among 12th graders who were not employed, while among 12th graders who were employed more than eleven hours per week marijuana use actually increased over the study period, though just slightly. The study’s authors acknowledged that this latter finding was not unexpected because “the workplace may expose adolescents to peer or adult coworkers’ potentially unhealthy behaviors, including substance use.” Authors further acknowledged that working youth were also more likely to have reported using cannabis prior to the passage of legalization.

The full text of the study, titled “Employment and marijuana use among Washington state adolescents before and after legalization of retail marijuana,” appears in The Journal of Adolescent Health.

The study’s full abstract can be found below:

Purpose

The purpose of the study was to describe associations between employment and marijuana use among adolescents 2 years before passage of 2012 ballot initiative and 2 years after the implementation of retail recreational marijuana sales took place in Washington.

Methods

We used 2010 and 2016 data from Washington’s statewide school-based Healthy Youth Survey, which is completed by more than 76,000 youth annually and representative of 8th, 10th, and 12th graders in public schools. We used “difference-in-differences” regression to estimate the odds of current, past 30-day marijuana use by working status and hours worked per week compared with nonworking youth.

Results

Working adolescents in all grades had higher prevalence of recent marijuana use compared with nonworking adolescents. Youth working in formal settings, such as retail and service sectors, were more likely to use marijuana than nonworking and youth working in informal settings, such as babysitting. Between 2010 and 2016, marijuana use decreased significantly among working and nonworking 8th and 10th graders. Among working 12th graders, marijuana use increased significantly over time relative to nonworking youth (adjusted odds ratio: 1.34, 95% confidence interval: 1.22–1.48). Associations were stronger for youth who worked more hours per week.

Conclusions

Working youth were more likely to use marijuana before and after Washington’s legalization of retail marijuana. Legalization was associated with increases in marijuana use specifically among 12th-grade working youth. States legalizing marijuana may consider implementing interventions to support healthy behaviors among working youth.

The findings are similar to survey data released by the federal government in late 2017, which found that the current rate of marijuana use among Colorado and Washington teens is now lower than it was prior to the states legalizing marijuana for adult use. The report found that the rate of past-month marijuana use by individuals ages 12-17 dropped nearly 20% from 11.13% in 2014-2015 to 9.08% in 2015-2016.

The post Study: Washington Teens Not Using More Marijuana Following Legalization appeared first on TheJointBlog.

Study: CBD May be Effective in the Treatment of Painful Diabetic Neuropathy

Posted by wnnadmin | Mar 27, 2019 | News |

According to a new study being published by the journal Brain Research, and epublished online by the National Institute of Health, cannabidiol (CBD) ” may be effective in the treatment of painful diabetic neuropathy “.

“Most diabetic patients describe moderate to severe pain symptoms whose pharmacological treatment is palliative and poorly effective”, states the study’s abstract. “Cannabidiol (CBD) has shown promising results in painful conditions.” With this in mind, researchers “aimed to investigate the potential antinociceptive effect of CBD over the mechanical allodynia in streptozotocin-induced diabetic (DBT) rats, as well as its involved mechanisms.”

For the study, “Wistar adult male diabetic rats were treated acutely or sub-chronically (for 14 days) with CBD (0.1, 0.3 or 3 mg/Kg, intraperitoneal; i.p.) and had their mechanical threshold assessed using the electronic Von Frey. ” Acute treatment with CBD (at doses of 0.3 and 3 mg/Kg) “exerted a significant anti-allodynic effect, which is not associated with locomotor impairment. “The antinociceptive effect of CBD (3 mg/Kg) was not altered by the pre-treatment with CB₁ or CB₂ receptor antagonists (AM251 and AM630; respectively; both at a dose of 1 mg/kg, i.p.) nor by glycine receptor antagonist (strychnine hydrochloride, 10 μg/rat, intrathecal, i.t.).”

“However,” the study states, “this effect was completely prevented by the pre-treatment with the selective 5-HT_1A receptor antagonist WAY 100135 (3 μg/rat, i.t.). Sub-chronic treatment with CBD (0.3 or 3 mg/Kg) induced a sustained attenuation of the mechanical allodynia in DBT rats.”

DBT rats “presented significantly lower spinal cord levels of serotonin, which was prevented by the daily treatment with CBD (0.3 mg/Kg).”

Taken together, the data “suggest that CBD may be effective in the treatment of painful diabetic neuropathy and this effect seems to be potentially mediated by the serotonergic system activation through 5-HT_1A receptors.”

The full abstract can be found below:

Most diabetic patients describe moderate to severe pain symptoms whose pharmacological treatment is palliative and poorly effective. Cannabidiol (CBD) has shown promising results in painful conditions. Then, we aimed to investigate the potential antinociceptive effect of CBD over the mechanical allodynia in streptozotocin-induced diabetic (DBT) rats, as well as its involved mechanisms. Wistar adult male diabetic rats were treated acutely or sub-chronically (for 14 days) with CBD (0.1, 0.3 or 3 mg/Kg, intraperitoneal; i.p.) and had their mechanical threshold assessed using the electronic Von Frey. Acute treatment with CBD (at doses of 0.3 and 3 mg/Kg) exerted a significant anti-allodynic effect, which is not associated with locomotor impairment. The antinociceptive effect of CBD (3 mg/Kg) was not altered by the pre-treatment with CB₁ or CB₂ receptor antagonists (AM251 and AM630; respectively; both at a dose of 1 mg/kg, i.p.) nor by glycine receptor antagonist (strychnine hydrochloride, 10 μg/rat, intrathecal, i.t.). However, this effect was completely prevented by the pre-treatment with the selective 5-HT_1A receptor antagonist WAY 100135 (3 μg/rat, i.t.). Sub-chronic treatment with CBD (0.3 or 3 mg/Kg) induced a sustained attenuation of the mechanical allodynia in DBT rats. DBT rats presented significantly lower spinal cord levels of serotonin, which was prevented by the daily treatment with CBD (0.3 mg/Kg). Taken together, our data suggest that CBD may be effective in the treatment of painful diabetic neuropathy and this effect seems to be potentially mediated by the serotonergic system activation through 5-HT_1A receptors.

This abstract, and a link to the full text, can be found on the National Institute of Health’s website at the following link: https://www.ncbi.nlm.nih.gov/pubmed/30898678

The post Study: CBD May be Effective in the Treatment of Painful Diabetic Neuropathy appeared first on TheJointBlog.

Going Postal: USPS Provides Guidance on Mailing Hemp-CBD

Posted by wnnadmin | Mar 27, 2019 | Hemp |

Recently the United States Post Office (“USPS”) issued an advisory on “Acceptance Criteria for Cannabidiol (CBD) Oil and Products Containing CBD.” Those criteria are as follows:

1. A signed self certification statement, subject to the False Statements Act (18 U.S.C. § 1001). Statements must be printed on the mailer’s own letterhead, must be signed by the mailer, and must include the text “I certify that all information furnished in this letter and supporting documents are accurate, truthful, and complete. I understand that anyone who furnishes false or misleading information or omits information relating to this certification may be subject to criminal and/or civil penalties, including fines and imprisonment.”

This first prong is straight forward. The mailer must include a sworn statement that all the related documents are accurate and truthful and include the above quote indicating an understanding of the penalties that come along with lying to a federal agency.

2. The industrial hemp producer possesses a license issued by the Department of Agriculture, for the state where the Post Office/acceptance unit is located, which includes documentation identifying the producer by name and showing the mailer is authorized by the registered producer to market products manufactured by that producer.

The second prong is a little more complicated. It requires that the hemp producer hold a license from the state Department of Agriculture where the Post Office or acceptance unit is located. This statement fails to consider cases where hemp or hemp products are shipped from a state that is different than the state of cultivation. Consider an online hemp retailer operating out of New York. New York has an industrial hemp program but is not a major hemp growing state so our retailer sources products that were produced and processed in Colorado. The retailer has done her due diligence and has copies of each farmer’s license to cultivate hemp. However, based on the fact that she uses hemp cultivated in another state, it does not appear that she could comply with this prong. Her best option is likely to include copies of the Colorado licenses with her shipments.

The second prong also requires documentation showing that the mailer is authorized by the register producer to “market products.” A letter from the producer could likely satisfy this requirement but it may also prove challenging for retailers who may not have a direct relationship with the producers who are growing hemp that is used in Hemp-CBD products.

3. The industrial hemp, or products produced from industrial hemp, contains a delta-9 THC concentration of not more than 0.3% on a dry weight basis.

The third prong requires that the hemp or hemp product has less than 0.3% THC concentration. This means that both raw hemp and products derived from hemp must have a THC concentration of less than 0.3%. Usually, these test results are contained in a Certificate of Analysis (“COA”). That means that each shipment of hemp or hemp products should have the corresponding test results for that lot or batch.

Marijuana Moment first reported on the new guidance from USPS. We’ve written about how USPS lost an administrative appeal over the mailability of shipping Hemp-CBD before so it’s not as if this new guidance means that the USPS will now allow CBD to be mailed. I read the guidance to provide insight as to what the USPS is looking for when it finds a shipment of hemp or Hemp-CBD. This guidance is also only temporary and specifically states that it may be altered or rescinded as other federal agencies figure out exactly how to regulate hemp. What this letter does not do is prevent state-level law enforcement from seizing hemp shipments, as was recently the case in Idaho. State agencies are not bound by USPS memos.

For now, it’s best for industry stakeholders to try their best to comply with this guidance by providing the sworn statement, a copy of any licenses associated with hemp being mailed, and a copy of any COAs associated with the hemp or hemp products.