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52 The US-Israel Legal Review 2019
US: CANNABIS LAW
T
he 2018 Farm Bill, a comprehensive update of
the United States’ agricultural laws, has opened
up a wealth of new opportunities in the rapidly
growing Hemp and Cannabidiol (CBD) product
space, but patience and diligence will be needed for
companies hoping to take full advantage.
Hemp and Marijuana are close cousins, coming
from different varieties of the same species of
plant,
Cannabis sativa
. Marijuana typically refers to
the psychotropic drug, while Hemp is cultivated for
a wide variety of products, including textiles, foods
and personal care products, to name a few.
CANNABIS LAW LANDSCAPE
In recent years, a growing number of US states have
legalized Marijuana in various forms for medical or
recreational use, but the overall legal landscape for
Marijuana remains an uneven patchwork of laws
and regulations. This is complicated by Marijuana’s
continued inclusion as a Schedule 1 controlled
substance that cannot be manufactured, possessed
or distributed under the federal Controlled
Substances Act (CSA).
Untilpassageofthe2018FarmBill,Hempwasalso
considered a controlled substance under the CSA’s
definition of Marijuana, hindering its production
and limiting its market. The CSA makes it unlawful
to manufacture, distribute, or dispense, or possess
with intent to manufacture, distribute or dispense”
any controlled substance. The CSA also makes it a
crime to possess any controlled substance except
as authorized by the Act. The level of restriction
depends on the schedule on which a substance is
included, with Schedule 1 being the strictest.
Before passage of the 2018 Farm Bill, the CSA
defined Marijuana in relevant part as “all parts of
the plant
Cannabis sativa L
., whether growing or not;
the seeds thereof; the resin extracted fromany part
of such plant; and every compound, manufacture,
salt derivative, mixture, or preparation of such
plant, its seeds or resin.” This included Hemp.
HEMP REMOVED FROM LIST OF
CONTROLLED SUBSTANCES
However, the Farm Bill expressly removed Hemp
from the definition of Marijuana. This means Hemp
is no longer a controlled substance under US law.
As such, it is not subject to US Drug Enforcement
Agency (DEA) regulation, and is instead treated like
an agricultural product subject to US Department
of Agriculture (USDA) oversight.
The majority of the changes promulgated by the
2018 Farm Bill are contained in amendments to
the Agricultural Marketing Act of 1946, which was
EmergingOpportunities in
theUSHempandCBDSpace
2018 Federal legislation removes obstacles to
commercialization, controlled substance concerns
The FarmBill removed Hemp
from the definition of Marijuana
in the federal Controlled
Substances Act. For regulatory
purposes, it is now considered
an agricultural crop.