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Is CBD Really Legal in the U.S.?

11 May 2019

Farmi Bill

Is CBD oil legal in all 50 states? The answer is yes. Thankfully, hemp-derived CBD is readily available and is 100% legal in all U.S. states. But before taking a closer look at the CBD oil laws of each state, let’s discuss the recent legalization of hemp in the U.S.

On December 20, President Trump signed the 2018 Farm Bill that federally legalizes industrial hemp in the U.S. Hemp is a variety of the cannabis plant. The bill included language that removed hemp from the Controlled Substances Act, so it is no longer a Schedule I drug.

What Does the Hemp Act Do?

From the U.S. Hemp Roundtable, which is one of the hemp industry’s leading business trade associations, comes the following synopsis of the recently signed Act:

  1. The bill now positions hemp firmly as a farming commodity, instead of an illegal and controlled substance grouped with marijuana. Section 297A (p. 429) of the farm bill defines hemp as all parts of the plant less than 0.3% THC, including “derivatives,” “extracts,” and “cannabinoids.” It also permits hemp production in all states and territories.
  2. This furthermore removes all hemp products and products made from hemp-derived compounds such as cannabidiol (CBD) beyond the reach of the CSA. Therefore, the Drug Enforcement Administration (DEA) cannot interfere with interstate commerce of hemp products. This is significant. In the words of U.S. Hemp Roundtable General Counsel Jonathan Miller: “This should give comfort to federally regulated institutions—banks, merchant services, credit card companies, e-commerce sites, and advertising platforms—to conduct commerce with the hemp and hemp product industry.”
  3. Farmers will also be granted crop insurance, and they can fully participate in USDA programs for certification and competitive grants.
  4. Hemp is now included in the USDA supplemental and alternative crops programs, as well as the USDA critical agricultural materials programs.
  5. State and Native American Tribal governments have the power to impose federally independent restrictions or requirements on hemp growth and the sale of hemp products. They are prohibited, however, from stopping interstate transport of hemp or hemp products.
  6. States and tribes are allowed to submit plans to the USDA to implement a permanent hemp growing program.
  7. The Act orders the states and tribes to develop procedures and regulations to address violations, including corrective action in the case of negligence.
  8. Regulation of CBD ingestibles and topical hemp products is still under FDA jurisdiction.

The agriculture law, which allocates billions of dollars in subsidies to farmers, was approved by the U.S. Senate on December 11. On December 12, the U.S. House approved the bill with a 369–47 vote. And today, President Trump signed it into law—a momentous month for many players in the industry.

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