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Hemp sector at risk as last minute shutdown bill adds language targeting intoxicating products

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The bill passed by the United States Senate to reopen the federal government includes language that could effectively shut down the country’s current hemp sector. Buried in the 141-page funding package is a provision that would ban the sale of unregulated intoxicating hemp-derived products, including delta-8 THC, and would change the definition of hemp in a way that would make most existing products illegal.

The word came a day before the vote, after pressure from states and parts of the marijuana industry. Hemp operators have long argued that resistance to hemp has a lot to do with safety and market protection, noting that calls for restrictions are most organized where marijuana is legal.

According to the US Hemp Bureau, “If passed, this legislation would wipe out 95% of the industry, shut down small businesses, and shut down America’s farms at a cost of $1.5 billion in lost tax revenue to states.”

Under language now attached to the funding bill, any hemp-derived product would have to meet strict limits for human or animal consumption. It could not contain more than 0.3 percent total THC and no more than 0.4 milligrams total THC in the entire package. Cannabinoids should be naturally occurring in the plant. Compounds produced by chemical conversion or other manufacturing methods would be prohibited. In practice, this would remove most intoxicating hemp products from gas stations, online stores, and corner stores across the country.

Supporters say the measure would close a loophole that has allowed intoxicating hemp products to spread without oversight. Opponents say it would stifle the hemp economy by leaving CBD and industrial hemp uses alone.

The conflict came to a head in Kentucky, where the two state senators found themselves on opposite sides. Senator Rand Paul warned that the language would kill an entire industry and hurt farmers and small businesses. He summarized the bill, Sharing in X that the provision has nothing to do with reopening the government and would hurt Kentucky agriculture.

The voices of the industry line up behind this vision. Tilray Brands stated: “As a leader in the hemp industry, Tilray Brands strongly supports forward-thinking smart regulation, not bans that stifle innovation, threaten small businesses and reduce consumer choices. The hemp language buried in the government’s funding bill is misguided, misguided in consumer interests, and misplaced in law.

The company added that responsible operators already comply with state regulations and called on Congress to work with the industry instead of passing restrictions that would eliminate an entire product category.

© Tilray Marks

Others are putting data on the table. “The data shows that adults are using hemp beverages responsibly to relax, reduce alcohol consumption and feel better without high levels of intoxication,” said Kevin Provost, CEO of MoreBetter. Chief Operating Officer Tyler Dautrich added, “This is not a legalization debate, this is a data-driven public health issue.

“Our industry is being used as a pawn by leaders as they work to reopen the government. Recriminalizing hemp will force American farms and businesses to close and disrupt the well-being of countless Americans who depend on hemp,” said Jonathan Miller, General Counsel of the U.S. Hemp Roundtable.

The hemp-derived beverage segment alone represents $1 billion in annual sales, largely driven by small businesses and supporting farmers, processors and retailers. A recent national poll shows that more than 70 percent of Americans want hemp products to be legal and available.

The Senate passed the bill 60 to 40. The House has yet to vote. The stakes are clear. If the language doesn’t change, the government could reopen the market for hemp-cannabinoids while they disappear.

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TSA clarifies that cannabis policy has not changed

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Over the past week, many news organizations have been running exaggerated headlines about a supposed change by the federal government to allow marijuana to be brought into airports and airplanes. But it’s not true, the Transportation Security Administration (TSA) tells Marijuana Moment.

“TSA’s policy on medical marijuana has not changed,” a TSA spokeswoman said in an email Wednesday.

“According to the TSA website: If any illegal substance or evidence of criminal activity is found during the security screening, TSA will refer the matter to law enforcement,” they said. While it’s true that the agency’s list of medical marijuana “What can I bring?” section of its website was updated on April 27, there were no major changes in policy.

Currently, the website says “Yes,” passengers can carry medical marijuana in carry-on and checked bags with special instructions. But the TSA cannabis policy has said “Yes” to medical marijuana, with the same caveats, since 2019.

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Alabama Officials Move To Delay Automatic Rescheduling Of Marijuana Under State Law Following Trump’s Federal Move

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“We’re not saying Alabama won’t do this. We’re definitely going to do this, but if you get it without objection, it’s scheduled right away.”

By Anna Barrett, Alabama Reflector

The governing body of the Alabama Department of Public Health voted Thursday against the federal rescheduling of marijuana, saying state health officials needed more time to determine how to implement it.

Dr. Scott Harris, Alabama’s top health official, told members of the state’s Public Health Commission that the state has “full intent” to implement the change.

“We’re not saying Alabama won’t do this,” Harris told the committee. “We’ll certainly do this, but if you get it without objection, it’s scheduled immediately. If you do nothing, it’s scheduled within 30 days. I’m going to ask you to take the third option, which is to oppose it. Then we just have a little time to figure this out with all our other stakeholders.”

The committee’s vote was unanimous. Brian Hale, ADPH’s legal director, said the objection would be open to public comment during the meeting. This period would last 30 to 60 days.

“The objection is simply to allow more time for input on the implications of this rescheduling,” Hale said. “There will be a public hearing, we’ll see the comments that way, and then we’ll talk to other stakeholders, licensing boards and others who might be affected to see what their input might be.”

In April, the US Department of Justice (DOJ) moved marijuana from Schedule I — the Drug Enforcement Administration’s (DEA) list of drugs with the least amount of abuse and legal use — to Schedule III, which, according to the DEA, drugs have a moderate to low potential for physical and psychological dependence. The order followed an executive order President Donald Trump signed in December to keep the DOJ on track to reschedule.

Former President Joe Biden ordered the DOJ to reschedule the drug in 2024, but hearings on the move were canceled in early 2025.

The federal mandate applies to medical marijuana products in states that allow the use of the drug. The move means those businesses can deduct business expenses from federal taxes and investigators have access to legal products in the state. As a Schedule I drug, only cannabis grown in a federal facility could be researched, greatly limiting the supply available to researchers.

Alabama has a medical cannabis program approved by the Legislature in 2021. A Montgomery The dispensary said last week it hopes to make medical marijuana available to patients soon. A message seeking comment from Vince Schillec, the dispensary’s owner, was left Thursday afternoon.

Harris said the reconsideration would not violate state law, but after speaking with the Alabama Medical Cannabis Commission (AMCC), he was unsure how the reconsideration would affect the program.

“We’ve worked very hard to try to figure out what the ramifications of this are. There are a number of things that don’t completely conflict with state laws or other regulations, but they require some thought as to how to implement them,” Harris said.

Justin Aday, AMCC’s general counsel, said in a telephone interview that the commission does not foresee any immediate impact from the federal reorganization or a delay in the reorganization at the state level.

“We certainly understand the commission and the desire to gather additional information about the implications of the federal reorganization and what the implications would be, depending on how medical cannabis is scheduled at the state level,” Aday said. “We will certainly participate in that process as necessary, and we will provide all the information we can.”

This story was first published by the Alabama Reflector.

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New California emergency marijuana rules aim to help state businesses

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California officials are making additional reforms to help the state’s marijuana businesses take advantage of federal tax and other benefits under the Trump administration’s redistricting move.

Specifically, the Department of Cannabis Control (DCC) proposed emergency regulations on Monday to allow companies with current licenses that use both medical and adult marijuana to secure a secondary license through a simplified process to separate the segments of their operations, as federal planning changes currently only cover medical cannabis.

Under the DCC’s proposal, marijuana companies could “create a second entity and hold two separate licenses (one for adult use and one for medicinal use) on the same premises” under the expedited regulations.

“DCC is working to make this pathway available due to the timing and uncertainty of the federal process,” the department said. “Additional operational components (such as tracking and tracing requirements, local permitting, tax collection, and other implementation issues) are still being evaluated and will be addressed through future guidance or rulemaking as needed.”

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