Over the first half of 2021, many states passed laws, implemented, or proposed new regulations regarding hemp cultivation, processing, and CBD products. These changes range from updates to testing, labeling, and packaging requirements, to adjustments in license requirements and limits on the types of hemp-derived products that can be sold.
In an industry undergoing constant updates and an everchanging patchwork of state hemp laws and regulations, it is critical for hemp businesses and other cannabis industry participants to stay up to date on how changes in the laws and rules may affect them. Below is a breakdown of notable updates that have occurred in 2021 so far. Stay tuned, as hemp and cannabinoid regulatory changes are always happening.
In April, the Colorado Department of Public Health and Environment finalized regulations establishing testing and labeling requirements for hemp products and registration requirements for hemp product manufacturers. The regulations became effective in April 2021 with a delayed effective date of July 1, 2021, for testing and labeling requirements.
Title 22, Chapter 17 of the Idaho Code became effective on April 16, 2021, legalizing the production, sale, and processing of industrial hemp, and requiring the Idaho Department of Agricultural to prepare a state hemp production plan by September 1, 2021. This law legalizes the transportation of hemp through Idaho but does not legalize hemp or CBD products for sale.
In February, the Iowa Department of Inspections and Appeals released rules establishing testing, packaging, and labeling requirements which took effect March 2, 2021.
In March, Chapter 68 of the Kentucky Acts was signed into law requiring ingestible or cosmetic cannabidiol product manufacturers to obtain permits as food or cosmetic manufacturer while establishing labeling and testing requirements for those products.
In March, Chapter 59 of the 2021 Laws of Montana became effective, directing the state’s Department of Agriculture to promulgate regulations for hemp derivatives and hemp crude, including licensing, fees, and transportation requirements.
In January, the New York Department of Health took over the authority of cannabinoid hemp and cannabinoid hemp products, while also releasing their online applications for hemp processors, retailers, and distributor licenses. Then again in May, the Department of Health amended its draft cannabinoid hemp regulations (originally proposed in October 2020) in response to public comment. A second comment period is ongoing and public comments are being accepted until July 17, 2021.
In April, updates to Chapter 4.1-18.1 and subsection 1 of section 4.1-18.1-05 of the North Dakota Code were signed into law making it unlawful for a hemp licensee to engage in the isomerization of cannabinoids or sell products created through that method. The law also allows the Commissioner of Agriculture to set a THC concentration limit allowable in hemp.
In April, a bill creating Section 3-601 in the Oklahoma statutes, was signed by the Governor. This section allows a licensed hemp individual whose hemp has been deemed non-compliant by the Department of Agriculture, Food, and Forestry to request approval to remediate the non-compliant product. This rule becomes effective November 1, 2021.
In May, the Rhode Island Department of Business Regulation proposed new regulations governing hemp products. Public comments are being accepted through June 18, 2021.
In April, updates and additions to Chapter 38-35 “Industrial Hemp” of the South Dakota codified laws were signed into law, which brought South Dakota’s hemp program in line with the final USDA hemp rules. It also legalized growing hemp in smaller locations and removed transportation permit requirements.
In January, Tennessee Increased the age limit for the sale of smokable hemp and hemp vaporizers from 18 to 21.
In March, amendments made to Chapter 41.1 of the Code of Virginia were signed into law, which excludes federally licensed and produced hemp from the definition of “marijuana.” In addition, federally licensed hemp producers are exempted from state industrial hemp program registration requirements.
In May, Chapter 104 of the Washington 2021 Laws was signed into law allowing processors to obtain hemp processor registrations. The Washington Department of Agriculture will also offer a hemp extract certification for processors that manufacturer hemp extract for use in food and export it to other states. It will certify that the product complies with Washington’s inspection and sanitation requirements.
Vicente Sederberg LLP is continually monitoring changes to hemp laws and regulations. Please contact our hemp team for more information or guidance.
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