CBD and Cannabis

Each week, NACS brings you a round up news and information on cannabis and CBD to help you stay updated on the fast-moving products and their legality. Here are the topics in the news for the week of Feb. 16 to Feb. 22:
U.S. Federal Activity

· Federal Lawmakers Push FDA to Allow CBD-Infused Food Products. A bipartisan group of members of Congress is asking the Food and Drug Administration to provide a legal pathway for food products infused with CBD. In a letter, the lawmakers sought guidance on existing pathways for food products that contain CBD, whether the FDA has had any role in recent enforcement actions in states like New York and Ohio, and when the agency will hold a public hearing on the regulation of products containing CBD. (Source: Marijuana Moment)
U.S. State and Local Activity
· California Reports Over $300 Million in Revenue on Legal Cannabis in First Year. The California Department of Tax and Fee Administration revealed that it collected $345.2 million in revenue last year as a result of excise, sales and cultivation taxes imposed on its recreational marijuana industry, despite initial projections that the industry could generate upwards of $1 billion in annual tax revenue. (Sources: California Department of Tax and Fee Administration; Washington Times)
· Chicago Officials to Track Businesses that Sell CBD Products. Illinois and Chicago permit the retail sale of CBD products, as long as they are derived from hemp and have less than 0.3% THC. If a firm discloses in its business license that it is selling CBD products, the city is making note of it in case additional regulations are adopted. (Source: Chicago Tribune)
· Officials Order Local Michigan Restaurants and Coffee Shops to Pull CBD Products. Local health officials in Michigan—including the Oakland County Health Division, the Detroit Health Department and the Ingham County Health Department—have ordered business owners at bars, restaurants and coffee shops to stop selling CBD, citing the federal Food and Drug Administration’s rules. (Sources: Detroit Free Press; Lansing Journal)
· Michigan Looks to Provide Banking Solution to Marijuana Businesses. With legal recreational sales on the horizon, state regulators and business groups are working to address the lack of banking options available to marijuana businesses because of the substance’s status as an illegal drug at the federal level. The state, for example, is working to facilitate relationships through a pending data portal that could prove the legitimacy of pot businesses and help banks meet federal vetting requirements. (Source: Detroit News)
· New Hampshire Marijuana Legalization Bill Clears Key Committee Vote. A bill to legalize marijuana in the Granite State cleared the House Criminal Justice and Public Safety Committee by a vote of 10-9. The bill, which would allow adults 21 and older to possess and purchase cannabis products and establish an associated regulatory scheme, still faces a long road in the legislature and a potential veto from the state’s governor. (Source: Marijuana Moment; New York Times)
· New Jersey Lawmakers Reach Deal with Governor Over Marijuana Legalization. After months of negotiations, Governor Phil Murphy and legislative leaders in New Jersey have reached a broad agreement on a bill to legalize recreational marijuana in the state. The details are still being hammered out, but one piece of the agreement is sure to raise eyebrows: a $42 per ounce tax on the sale of recreational cannabis. (Source: Politico – New Jersey; New York Times; Asbury Park Press)
· Ohio Lawmakers Consider Lifting Ban on Selling CBD Products. A measure introduced in the Ohio Senate would legalize hemp and its derivatives within the framework of the 2018 Farm Bill. Currently, Ohio law does not differentiate between hemp and marijuana, so state regulators have said all hemp-related products are legal only through the state’s new medical marijuana program. (Source: Cincinnati Enquirer)
Miscellaneous
· Market for Cannabis Beauty Products Grows. Cannabis beauty has become so trendy that Wall Street analysts have started treating it as a standalone category. (Source: CNBC)