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The US-Israel Legal Review 2019 53
enacted to provide a “sound, efficient, and privately
operated system for distributing and marketing
agricultural products.” The six major changes to
the law involve:
• The definition of Hemp
• The creation and approval of and compliance
with state Hemp plans
• The creation and approval of and compliance
with a federal Hemp plan
• The regulatory authority of the US Secretary
of Agriculture
• The transportation of Hemp products in
interstate commerce
• The effect of the farm bill on other laws, in
particular the Federal Food, Drug and Cosmetic
Act (FD&C Act.)
COMPLIANCE POINT: THC CONCENTRATION
The 2018 Farm Bill defines Hemp as “the plant
Cannabis Sativa L
. and any part of that plant,
including the seeds thereof and all derivatives,
extracts, cannabinoids, isomers, whether growing
or not, with a [THC] concentration of not
more
than 0.3 percent on a dry weight basis
.”
THC, or delta-9-tetrahydrocannabinol, is one of
the two best-known compounds contained in the
Cannabis sativa
plant, and is responsible for the
“high” feeling experienced by Marijuana users. The
other primary compound is Cannabidiol or (CBD),
which is not psychoactive and may have potential
clinical effects on anxiety disorders, movement
disorders, cognition and pain.
This means companies wishing to market Hemp
or Hemp-derived CBD products must ensure they
comply with the 0.3 percent THC concentration
limit. This should not be difficult, because in
general, Hemp contains only trace amounts of THC.
However, companies should be on notice that they
must be diligent in vetting suppliers of Hemp-based
CBD containing products to confirm their source.
We recommend including specific representations,
warranties and indemnification provisions in each
vendor agreement.
HEMP REGULATION: FOCUS ON THE STATES
The 2018 Farm Bill gives states the primary
responsibility for monitoring and regulating Hemp
production and requires them to produce a plan for
doing so. State plans must include:
• Practices for maintaining information on land
where Hemp is produced.
• Procedures for testing THC levels in Hemp.
• A disposal process for non-compliant Hemp
plants.
• Enforcement procedures for violations.
• Procedures for annual, random compliance
sampling.
• Procedures for sharing information with the
federal government.
• Certification that the state has the resources
needed to carry out its plan.
States have a significant amount of leeway in
crafting their plans, and are permitted to enact
laws that are stricter than federal Hemp laws. The
US Secretary of Agriculture must approve or reject
state plans within 60 days of submission. In states
without approved plans, Hemp producers must
comply with a plan to be established by the US
BILL BOGOT
PARTNER
JOSHUA HORN
PARTNER
Companies should be on notice
that they must be diligent in
vetting suppliers of Hemp-based
CBD containing products to
confirm their source.