CBD and Hemp Legal and Regulatory Roundup – June 2021 #4 | Kelley Drye & Warren LLP

Welcome to our weekly roundup of legal and regulatory news related to CBD and hemp:

U.S. District Judge Robert E. Wier launched a $ 9 million hemp farm contractual dispute against a CBD processor from Ore., Arguing that the farm did not show Ky. Was the appropriate venue for its claims. Third Wave filed for a declaratory judgment in March 2020, asking the court to cancel its contract with Pure Valley after being hit with a $ 9 million bill. In April 2020, Pure Valley asked Wier to dismiss the case for lack of jurisdiction over the matter, arguing that an “out-of-state defendant, like Pure Valley, cannot be dragged into a Kentucky forum simply because he entered into a contract with an entity that would be headquartered in Kentucky. Pure Valley noted that Third Wave shares Oregon citizenship with Pure Valley and that all negotiations regarding the allegedly broken contract took place outside of Ky. Before Judge Wier could make a decision on Pure’s claim. Valley, Third Wave filed for Chapter 7 bankruptcy and Wier remained in the contract litigation while bankruptcy proceedings were pending. When the bankruptcy case ended in March, Pure Valley asked the judge to reopen the case. Law 360 (sub. Req.)

Amazon’s decision to publicly support the legalization of cannabis has made waves in the industry, with many experts believing it could be the start of significant support and investment for this market. Following the passage of the Farm Bill 2018, an influx of investors and hemp growers, along with a huge boom in consumer desire for CBD, led to a glut of hemp crops. Due to the immaturity of manufacturing logistics and the supply chain, the industry could not ship hemp to its consumers quickly enough. This led to a 2019 hemp backlog that was carried over to 2020, which was made worse by the effects of the global pandemic. One of the main areas of concern for the hemp industry today is its poor logistics, an area in which Amazon excels, and one would imagine that further investment and support from Amazon in the industry could help solve many logistical problems of this immature sector. recently suffered. While at the moment things in the hemp industry appear to be struggling, in a post-pandemic world where the hemp industry is diversifying and at the same time improving its manufacturing and logistics, the future of hemp is on the horizon. promising announcement. FINSMS

According to a policy statement from the Hemp Industries Association (HIA) and its attorneys at the Kight Law Office, the 2018 Farm Bill removed hemp from the list of controlled substances, it also legalized extracts and derivatives of hemp, such than the compound Delta-8. The Kight Law Group analysis found that the lack of clarity surrounding Delta-8 stems from the fact that it is considered “synthetic” cannabis, which is illegal under the CSA. The DEA has not issued any formal guidance on whether Delta-8-THC derived from hemp is a controlled substance under federal law. The HIA said industry stakeholders should advocate for safe Delta-8 products and manufacturing methods, rather than sitting idly by while regulators attempt to ban the substance outright. Law 360 (sub. Req.)

Nevada Department of Agriculture (NDA) Nevada State Hemp Map was approved by the USDA on May 28. The NDA provided a presentation detailing the federal requirements for certified hemp growers. In addition, the NDA hosted three public workshops and a hearing to receive public comments and engage with industry. Department of Agriculture

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