As I understand it, according to the 2018 Farm Bill, CBD and hemp extracts may be included in federally legal products for sale, provided the concentration of THC does not exceed the limit defined in the Farm Bill.
The largest change for hemp is hemp and hemp-derived products will no longer be Schedule I controlled substances. This is huge news. It removes the issue of hemp and hemp-derived CBD from being federally illegal and means banking with checking accounts and loans at normal interest rates can be obtained in the industry.
Further, the IRS should remove the 280E tax code for hemp now, which considers all hemp and cannabis businesses to be “trafficking” Schedule I or II drugs and dictates only deductible expenses in the business are the cost of goods sold.
It appears the USDA will regulate the growing of hemp, and FDA will regulate any products containing hemp or CBD that are sold as topicals, food additives, dietary supplements or drugs. Interstate commerce of hemp and hemp products can now legally occur. Individual states can refuse to allow sales in their state, but a state cannot interfere with interstate commerce: transport of hemp through the state.
The FDA Commissioner Scott Gottlieb, M.D., issued a statement of FDA’s position on the 2018 Farm Bill. “Just as important for the FDA and our commitment to protect and promote the public health is what the law didn’t change: Congress explicitly preserved the agency’s current authority to regulate products containing cannabis or cannabis-derived compounds under the Federal Food, Drug, and Cosmetic Act (FD&C Act) and section 351 of the Public Health Service Act.” FDA is working on “providing potential regulatory pathways for products containing cannabis and cannabis-derived compounds,” Dr. Gottlieb revealed.
