The Utah and New Mexico Legislatures passed commercial hemp legislation this week that include provisions that regulate CBD products like cannabis. If signed by the states’ governors, the legislation will become law. The recent legislation might foreshadow a national trend as states’ amend hemp legislation to conform with the 2018 Farm Bill. Requiring CBD products that are intended for human consumption to meet standards that are similar to cannabis products will help the industry achieve a certain level of credibility that it desperately needs. We believe that CBD manufacturers and product companies should consider using cannabis best practices when manufacturing and testing products as well as developing labels. These practices can help a company differentiate a CBD product from others, and obtain a competitive advantage as states move to more robust standards.
Utah’s Hemp and Cannabinoid Act Amendments. directs the state’s Department of Agriculture to adopt rules to create a licensing program for the commercial hemp industry including growers, cultivators, processors and those marketing hemp or hemp products. The bill also requires the Department to adopt regulations governing the registration of cannabinoid products that are intended for human consumption with the Department, and to set standards for the testing and accurate labeling of CBD products. The bill defines cannabinoid products as a hemp product that is processed into a medicinal dosage that contains less than 0.3% THC.
The New Mexico Hemp Manufacturing Act specifically requires the licensing of manufacturers that are performing hemp extraction, processing or engaging in other manufacturing activities. Engaging in these activities without obtaining the appropriate license could result in a Schedule 1 criminal charge. New Mexico’s legislation provides a robust regulatory framework to ensure the safety, sanitation and security of the finished product.
CBD businesses that are transporting CBD products to these states or over the internet should seek guidance on how the new registration regimes impact these activities. Not following the rules could lead to the seizure or destruction of CBD products as well as possible criminal charges.