Full Transcript for Hemp’s 30-Day Countdown on Regulation and Risk

giving the leeway and the transition possibility for that change. 02:45.739 --> 02:51.743 [SPEAKER_00]: Now, the hemp industry has been going on with litigation and legislative efforts to prevent the ban for taking effect. 02:51.843 --> 02:53.864 [SPEAKER_00]: Texas has become a ground zero for the court and fight. 02:54.505 --> 03:06.332 [SPEAKER_00]: Hemp industry groups suited Texas Department of State Health Services and Federal Court after the agency reclassified Delta 8 and other hemp derived TSE compounds as scheduled one controlled substances. 03:06.973 --> 03:11.936 [SPEAKER_00]: Plain is arguing the ban is pre-empted by the 2018 Farm Bill, violating due process 03:16.502 --> 03:34.867 [SPEAKER_00]: and other one, and Travis County in Texas, over-relatable, smokeable hemp rules, and additional losses in the filed, alleging the band has created a monopoly for the states, Medicare marijuana program, other battles are in Missouri as well, the hemp industry is also challenging the states, and talks to getting him banned is constitutional. 03:35.367 --> 03:41.389 [SPEAKER_00]: But the overlying effect is going to be what the federal hemp band's going to create, regardless. 03:43.519 --> 03:47.480 [SPEAKER_00]: Now, there are several bills moving through Congress, aiming at softening or delaying the ban. 03:48.041 --> 03:55.363 [SPEAKER_00]: Most notable is the Hent planting predictability act, a bipartisan effort to push the update back two years into November 28. 03:55.743 --> 03:56.604 [SPEAKER_00]: We've been hearing about that. 03:57.204 --> 04:05.647 [SPEAKER_00]: So what has to happen is, do you get the bipartisan effort to bring the bill up for a vote before the midterm elections are after? 04:06.687 --> 04:26.492 [SPEAKER_00]: I don't know, but it has to be done before midterms and at this point we know the Congress is not coming back and yet in the session because there's still a lot of doing other things like well the Republicans have a convention going on this week and Democrats are also campaigning for the midterms so probably not going to be seeing a reconvening of Congress to where this will become a priority. 04:27.292 --> 04:32.753 [SPEAKER_00]: Now they might see the deadline and might do something about that but we haven't seen anything indications that might be that case. 04:34.836 --> 04:42.119 [SPEAKER_00]: Other roles will seek out the carve out the non-Toxic and intoxicating CBD products and raise the cap to more commercially viable threshold. 04:42.719 --> 04:50.383 [SPEAKER_00]: There is momentum behind the efforts and even the White House signal approach for predicting non-intoxicating and products from the bands over each. 05:02.747 --> 05:11.450 [SPEAKER_00]: Now, September 1st, the House of Representatives give the bill final congressional approval by partisan 370 to 48 vote and sending it to President Trump's desk. 05:11.490 --> 05:26.614 [SPEAKER_00]: So you'll have that to go and work for so after the midterms

we can see Congress coming back in and making something where they can revisit if they want to go and continue the ban or post point of the two years with the act we just mentioned. 05:27.584 --> 05:31.667 [SPEAKER_00]: The delay provision was based on the bipartisan hemp planting, particularly act. 05:32.528 --> 05:36.231 [SPEAKER_00]: Amy Klobuchar, I've been a soda, Rand Paul, Kentucky, just Berkeley of Oregon. 05:36.972 --> 05:40.014 [SPEAKER_00]: Democrats are Republicans and like all supporting this. 05:41.035 --> 05:49.642 [SPEAKER_00]: Since that cannabitalics continue to face an immediate November 12th ban, while naturally drive him TC products, we'll get that one month reprieve. 05:52.778 --> 05:56.079 [SPEAKER_00]: Now, more lawsuits, more bills, expect to go ahead and be brought forward. 05:56.879 --> 06:02.061 [SPEAKER_00]: And some of the most litigation insurance journal says here that they expected to fail. 06:03.081 --> 06:05.282 [SPEAKER_00]: But the Constitution's arguments are creative. 06:05.622 --> 06:09.503 [SPEAKER_00]: Congress has brought authority under the Commerce Clause to find what qualifies as a control substance. 06:09.923 --> 06:12.084 [SPEAKER_00]: A new definition is clear about its intent. 06:14.477 --> 06:24.160 [SPEAKER_00]: But in terms of insurers, insurance general says don't wait, Congress has provided a brief reprieve, but hemp companies and insurers that cover them should not be preparing for December 11th. 06:25.680 --> 06:27.381 [SPEAKER_00]: A one month delay is not a solution. 06:27.481 --> 06:29.621 [SPEAKER_00]: Winning is the worst possible risk management strategy. 06:30.021 --> 06:33.802 [SPEAKER_00]: The practical fall from the ban will be fought across nearly every coverage line. 06:34.883 --> 06:39.524 [SPEAKER_00]: They recommend product liability and property first when the ban takes effect inventory 06:43.313 --> 06:51.029 [SPEAKER_00]: product liability policies that were written to cover hemp drive products may suddenly be covering the sale or distribution of federally illegal marijuana. 06:52.496 --> 07:14.572 [SPEAKER_00]: cargo and stock throughput programs are also implicated as well, wholesalers, distributors, brands, that straddle the marijuana and hemp product categories should expect complications to coverage terms, exclusions to transit insurance for an inventory that may be reclassified midshipment if a product needs a warehouse as legal hemp and arrives at its destination as federal legal marijuana who bears the risk. 07:15.072 --> 07:16.293 [SPEAKER_00]: These are not hypothetical questions. 07:16.573 --> 07:18.735 [SPEAKER_00]: They must be answered by December 11th. 07:19.316 --> 07:21.758 [SPEAKER_00]: So these are serious issues. 07:22.519 --> 07:27.083 [SPEAKER_00]: And insurance drill is raising the right questions here in this case. 07:28.324 --> 07:31.046 [SPEAKER_00]: Be nice to have a folks with the insurers industry that I've had on before. 07:31.286 --> 07:38.993 [SPEAKER_00]: So talk about this, but you know, just haven't you had a chance to have any requests of the likes of Humber International and others that have been out there and have been featured on the program. 07:39.053 --> 07:39.193 [SPEAKER_00]: But 07:40.574 --> 07:41.515 [SPEAKER_00]: The doors open. 07:41.655 --> 07:44.437 [SPEAKER_00]: If you'd like to go and reach out to yours truly, so we can do that. 07:44.917 --> 07:55.925 [SPEAKER_00]: Brasco at cannabisread.com, BRASCO at cannabisread.com, reach out there, and we can set it up every very quickly, and we hope to go and do that with all you folks out there. 07:56.385 --> 08:01.409 [SPEAKER_00]: If you'd like to go and chime in on this hemp industry ban, that's coming up, and you know, have your voice heard. 08:01.729 --> 08:03.190 [SPEAKER_00]: We want to bring out the platform for you. 08:06.020 --> 08:17.243 [SPEAKER_00]: There's a lot to the story that I also know about when it comes to attacks, ramifications, the compliance ramifications, and so much more so to go and recommend to go ahead and look for that story and find out for yourselves. 08:17.263 --> 08:24.425 [SPEAKER_00]: Remember what a moment puts out a story about how convenience story industry says that Congress should regulate him, T.C. 08:24.445 --> 08:26.005 [SPEAKER_00]: products, and set a bayonet. 08:26.326 --> 08:33.828 [SPEAKER_00]: So an important advocacy from the convenience stores, which of there are hundreds of thousands 08:38.592 --> 08:43.735 [SPEAKER_00]: So convenience stores say that they are an ideal place to continue to sew hemp products under any of the rules that are enacted. 08:47.017 --> 09:02.866 [SPEAKER_00]: So the National Association of Community Sores or NACS, John Titz, a director of government relationships that the convenience retail channel with its well-established age verification procedures is suited to selling hemp products to lead adults legally and responsibly. 09:03.346 --> 09:06.128 [SPEAKER_00]: Yeah, because they see that when it comes to product 09:08.103 --> 09:16.550 [SPEAKER_00]: I mean, how many stores that are convenience stores do you see now that are selling VAT products and pretty expensively every store has them. 09:17.931 --> 09:30.942 [SPEAKER_00]: Especially when they lost the nicotine based products, the pens and all they need to find something was a replacement, but they also know they can also sell hemp T.C products and stores and they are able to go and sell them. 09:32.864 --> 09:34.545 [SPEAKER_00]: So they can find a way to go and do that. 09:34.686 --> 09:35.166 [SPEAKER_00]: They should. 09:35.486 --> 09:36.407 [SPEAKER_00]: That's what they want to build them. 09:38.451 --> 09:41.774 [SPEAKER_00]: I don't know if that's going to be enough to really make a difference for them, but we'll find out. 09:44.918 --> 09:49.222 [SPEAKER_00]: Coming up, we're going to go ahead and take the legal perspective of what the hemp band means. 09:49.803 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09:56.830 [SPEAKER_00]: As we are coming up towards that in the summer 12th date, hoping that everything will be finalized to give that out the summer 11th date, but we have that in play. 09:57.250 --> 09:58.351 [SPEAKER_00]: We just need to keep an eye on it. 09:58.872 --> 09:59.412 [SPEAKER_00]: Stay tuned. 09:59.773 --> 10:00.713 [SPEAKER_00]: We'll be back with more. 10:01.054 --> 10:02.015 [SPEAKER_00]: Plum business after this. 10:13.649 --> 10:21.576 [SPEAKER_00]: Welcome back to BluntBusiness on cannabisread.com, National Law Review has their legal perspective on what the federal hemp ban really means for the industry. 10:24.118 --> 10:35.247 [SPEAKER_00]: So the U.S. House of Representatives have this short-term funding bill pushing the recombinization of hemp TEC products to December 11th if it happens, we're waiting for that. 10:35.627 --> 10:38.950 [SPEAKER_00]: That's supposedly a sigh of relief for some, but when they look at it, 10:40.680 --> 10:48.224 [SPEAKER_00]: The media is widely referring to the legislative shift as a ban, it's technically an incredibly restrictive read-off edition of what constitutionally will help. 10:48.585 --> 10:54.128 [SPEAKER_00]: The upcoming rules seek the cap, local T-C, a total T-C content of 0.4 milligrams per container. 10:55.028 --> 11:00.111 [SPEAKER_00]: The month-long extension was widely explained by industry insiders, but a foregone conclusion, it's not. 11:02.272 --> 11:10.097 [SPEAKER_00]: So there is a debate about the three-curing issue in federal kin was policy, a profound disconnect between political strategy and public opinion. 11:11.716 --> 11:29.049 [SPEAKER_00]: that while marijuana and hemp reform remain markedly popular across broad drinking graphics of the American electric electric sees we politicians still struggle to navigate the issue we find by the parts of the support for some reason we still have people that are still antiquated a little bit behind in modern times what can i say 11:29.929 --> 11:33.674 [SPEAKER_00]: supporting industry often doesn't seem to yield the political payouts lawmakers respect. 11:34.494 --> 11:36.076 [SPEAKER_00]: And that, yeah, there's no lobby money. 11:36.276 --> 11:38.099 [SPEAKER_00]: We've talked about that for years of this program. 11:38.119 --> 11:41.923 [SPEAKER_00]: We had the lobbyists that did come on for a while talking to us. 11:42.704 --> 11:45.867 [SPEAKER_00]: Have we heard anything from them in this term of reclassification? 11:47.133 --> 12:03.358 [SPEAKER_00]: You know, is as if all these advocacy groups, all the respect they might be doing, trying to do great work, but they never had the money, and I haven't seen much of them doing anything from political standpoint to get cannabis legalized or decriminalized. 12:03.878 --> 12:04.538 [SPEAKER_00]: There has been enough. 12:06.080 --> 12:12.586 [SPEAKER_00]: If we had enough money out there to compete up against big pharma to change their opinions, it'll be a different story. 12:12.666 --> 12:16.729 [SPEAKER_00]: But again, some states aren't able to do something because of what they are. 12:16.769 --> 12:20.833 [SPEAKER_00]: They're market, but not the same for a federal sense. 12:22.614 --> 12:27.879 [SPEAKER_00]: I mean, the fact that we could hear from the NCAA, and for so many years when we were hosted there, Dennis Ashill, 12:31.140 --> 12:44.433 [SPEAKER_00]: when we hosted cannabis industry voice, it was nice to hear all these folks that were coming on board and talk about the fact that they are getting the meetings, they are getting conversations with lawmakers, policymakers, but nothing more. 12:45.119 --> 12:47.780 [SPEAKER_00]: And I don't know if that, we need to have moved either. 12:48.260 --> 12:54.483 [SPEAKER_00]: And trust me, we did try to talk to folks with NCAA since it changed in the very top of who's president now. 12:54.983 --> 12:58.064 [SPEAKER_00]: And we always welcome them on the program. 12:58.925 --> 13:01.846 [SPEAKER_00]: If they're able to make time for us, I know they have their own contents. 13:01.866 --> 13:06.768 [SPEAKER_00]: They can always have their own platform to go ahead and speak out what's we're doing, but we love to go and hear more of that perspective. 13:07.148 --> 13:11.670 [SPEAKER_00]: Because at the moment, it's been at least four or five years since I've heard from 13:14.856 --> 13:34.294 [SPEAKER_00]: And I don't know if all of them have stayed around since then or what, but, you know, from all the stories that I keep reading here on a regular basis, I haven't seen much interaction or much reaction or even just any kind of responses coming from these organizations when it comes down to it. 13:34.494 --> 13:38.358 [SPEAKER_00]: I mean, besides press releases, but I'll see what you're reporting on it and the 13:39.842 --> 13:45.763 [SPEAKER_00]: cannabis press in general that they're picking up quotes from any of these folks anyway or getting interviews with them for that matter. 13:47.864 --> 14:00.367 [SPEAKER_00]: So they said that the heaven that she has just entered its own version of in substance limbo state and over the next 30 days they expect to see two of the things that actually is fighting for the future of the market. 14:01.383 --> 14:26.008 [SPEAKER_00]: industry advocates, what we could do is see from the U.S. from the hemp industry as the U.S. hemp roundtable, they are utilizing the Lifeline to actively lobby for robust restrictions, age restrictions, age restrictions used to be strictly willing and safety testing deadlines and secure regulation of our outright prohibition prohibitions are pushing back arguing the late permits unregulated products remain accessible to minors. 14:26.809 --> 14:28.069 [SPEAKER_00]: So we know that there is 14:29.149 --> 14:42.897 [SPEAKER_00]: Several proposals for acts that could be brought up for vote, HR 6209, the American Head Protection Act, that was representative, that's representative Nancy Mason,

South Carolina Department of Board. 14:43.337 --> 14:46.739 [SPEAKER_00]: She's on quite a bit to go ahead and help and support for cannabis and hemp. 14:49.360 --> 14:50.701 [SPEAKER_00]: It's a clean, repeal option. 14:51.321 --> 14:55.523 [SPEAKER_00]: It's not removing out of committee and given the 14:57.769 --> 15:10.238 [SPEAKER_00]: is in a link book status right now and I guess, yeah, your her term is done because I think she's running for governor that we might not see much of this particular bill make it anywhere, but there is a proposal on the table. 15:11.099 --> 15:16.923 [SPEAKER_00]: The other way already talked about the hemp planting predictably act HR 7024 or Senate bill 3686. 15:18.084 --> 15:20.866 [SPEAKER_00]: It's been in proposed since January. 15:22.227 --> 15:22.347 [SPEAKER_00]: And 15:24.695 --> 15:32.939 [SPEAKER_00]: It remains in committee with no votes scheduled Congress already seems to welcome a opportunity to kick a difficult kind of the road and this has a got much traction. 15:33.159 --> 15:40.382 [SPEAKER_00]: They But again, if they want to do something while there's a deadline, looming, maybe they'll finally get to it, but we'll find out. 15:41.022 --> 15:51.807 [SPEAKER_00]: The other bills, the house bill, hemp enforcement monetization and protection, hemp act, the Griffith bill, HR7212, and this is also introduced in January. 15:55.084 --> 16:20.732 [SPEAKER_00]: amending the FDNC Act to require facility registration with the HHS, product listings and enabling the scholars, mandatory third-party testing and FDA recall authority and the FDA would have been completing former rulemaking on cannabinoid limits within three years if they miss a deadline that fall statutory limits kick in automatically report as five milligrams per serving or 30 milligrams per package for intoxicating cannabinoids in some accounts. 16:23.630 --> 16:47.146 [SPEAKER_00]: This bill is not expected to go and move past the until after the mid-term elections and will require significant compromise, which is why he's also a Griffith and the Griffith Republican from Virginia that if they modify this legislation, it will represent a fundamental sea change and the legal set of the hemp and place meaningful regulatory guard rules around the industry. 16:48.902 --> 16:51.904 [SPEAKER_00]: Another bill is Senate bill of 3474. 16:52.625 --> 16:57.728 [SPEAKER_00]: The cannabinoid Safety Regulation Accenters, Ron Wyden, just Berkeley of Oregon, part of this as well. 16:59.309 --> 17:04.293 [SPEAKER_00]: This was introduced in December of last year, federally legalizing and regulating hemp derived T.C. 17:04.313 --> 17:16.421 [SPEAKER_00]: products under FDA oversight with report limits of five milligrams for serving, 50 milligrams for package for edibles, topicals, and inhalables, assay for beverages, but 10 milligrams for package for beverages. 17:18.491 --> 17:24.774 [SPEAKER_00]: This is a Democratic Senate counterpart to the bill we just

talked about before, regularly rather than prohibit. 17:27.320 --> 17:52.619 [SPEAKER_00]: And then there is the beverage bill from representatives of Beth Van Dyne, Republican Texas and Greg Lansman, Democrat of Ohio, narrow sector spaces of bill, carving hemp beverages on the broader form, and set up a standalone regulatory regime for low-dills drinks, bottom of how alcohol is regulated by age verification, licensing, and state-level control points rather than making an FDA rule making track. 17:57.570 --> 18:13.638 [SPEAKER_00]: But notice something that this year, but there have been lobbying attempts from various representatives, the Senate Agriculture Committee's markup failed 10 to 11 and August over an unrelated food assistance dispute, so no amendment for hemp was adopted there either. 18:14.178 --> 18:26.064 [SPEAKER_00]: The formal extension, and government funding now share the same September 30th deadline, which means the Farm Bill track, and the provisions track are running on parallel non-sequence, which would end up carrying hemp language before December. 18:28.542 --> 18:36.645 [SPEAKER_00]: Could they get it a farm bill finally and get it at because other areas of agriculture will be affected along with hemp and then hemp would just benefit from it. 18:37.045 --> 18:38.586 [SPEAKER_00]: That could be something we would look forward to. 18:41.127 --> 18:46.409 [SPEAKER_00]: So, the scenario is looking in between now on December 11th that possible extension. 18:47.309 --> 18:50.850 [SPEAKER_00]: The short term delay rides the next funding bill. 18:50.910 --> 18:55.812 [SPEAKER_00]: Comprehensive regulatory framework passes as done on the delay and though for the delay 19:00.651 --> 19:10.842 [SPEAKER_00]: They conclude here in the National Law Review article that nothing about the December 11th deadline has gotten on the easier, excision only changed the date, not the substance. 19:11.983 --> 19:18.190 [SPEAKER_00]: FDA still not published the list of covered cannabinoids or defined container for purposes for the per container cat. 19:21.870 --> 19:41.037 [SPEAKER_00]: Everyone should plan for December 11 of the opera to date, which whether the fiscal year 2027, funding vehicle is a short, continuing resolution or full-year bill, do not assume the extension of regulation, how the same outcome for business owners, investors, and consumers. 19:41.197 --> 19:49.199 [SPEAKER_00]: The extension is a high-stakes waiting game, there are delays in the short time to draft a permanent legal regulatory framework, but in Washington, it's just enough time for everything to change. 19:52.549 --> 20:15.167 [SPEAKER_00]: we will see if anything can change just from it and fall that story for you as well here on book business as well as everything else we're waiting for some kind of word from cannabis reclassification for the DEA and we will fall that story as well and we'll keep it on the cannabis industry took a little break from it because I think it's still very important to go ahead and focus where hemp is at and that we've taken time on the program here 20:15.967 --> 20:27.592 [SPEAKER_00]: Over the years to address hemp, of course we had round tables and other discussions on hemp on a regular basis here on this program and on grassroots marketing, but we're glad to go and continue that conversation to keep it flourishing here. 20:28.113 --> 20:33.675 [SPEAKER_00]: And for those once again, if you want to go ahead and be a part and you'd like to go in comment on the program before that. 20:34.856 --> 20:37.837 [SPEAKER_00]: Number 12 for December, let us deadline reach out to me. 20:38.317 --> 20:42.719 [SPEAKER_00]: Brasco at cannabisread.com, BRASCO at cannabisread.com. 20:43.179 --> 20:44.200 [SPEAKER_00]: We'll talk to you next time.