Business
Cannabis Seeds are Legal to Buy and Sell Says the DEA – Can You Start Ordering Them Online Now?
Can you legally order cannabis seeds online and have them delivered to your door?
The Drug Enforcement Administration (DEA) has officially established that cannabis seeds are primarily uncontrolled and legal, even though it is still illegal under federal law. The legality still stands regardless of how much THC would ultimately be produced in buds if those seeds were grown. The DEA recently reviewed federal law and its implementing rules in response to an inquiry from Shane Pennington, a lawyer specializing in cannabinoid regulatory issues, about the legality of cannabis tissue culture, seeds, and “other genetic material” containing a maximum of 0.3% THC.
The department confirmed that marijuana seeds were once strictly controlled, but that is no longer the case due to hemp’s federal laws, as Shane Pennington discussed in an episode of his On Drugs newsletter. The US Drug Enforcement Administration (DEA) has acknowledged that marijuana seeds are not controlled substances under the Controlled Substances Act (CSA), regardless of how much THC the plant they grow into eventually produces. This is because the seed has a THC content of less than 0.3% by dry weight and thus meets the definition of hemp.
The legislative decision could have far-reaching ramifications in the future. Still, it is likely to be confined to simplifying cross-state transportation and increasing consumer sales of cannabis seeds. On the other hand, companies selling seeds must be cautious about how they market their products to clients to avoid violating other cannabis prohibition legislation.
Shane Pennington reached out to the DEA last November to inquire about the legality of cannabis seeds. Pennington told CBD-Intel that he received numerous calls as soon as the report went out. People are beginning to use his letter in various ways, and he is confident that changes will soon be visible.
Pennington anticipates that cannabis businesses will start citing the DEA’s letter to support their legality in court and before state regulators. The DEA’s announcement will likely lead to changes in the business, including those that affect tax implications and trademark rights on products that can now be marketed legally.
Pennington stated that he would see how various officials and judges would respond. He thinks that we will start to see this in the coming month or so.
Aside from seeds, the new DEA letter clarifies that any other substance extracted or derived from the marijuana plant, such as tissue culture and any other cellular components with a concentration of delta-9-tetrahydrocannabinol not exceeding 0.3% on a dry weight basis, meets the criteria of “hemp” and therefore is not constrained under the CSA.
Possible Opposition at the State level
Currently, transportation is the most affected sector. The advantages of reducing transportation barriers include broadening the cannabis genetic pool, leading to new and improved flavors and trends. It would also be beneficial when researching the effects of diverse strains on medical patients.
According to the DEA ruling, marijuana seeds should be allowed in and out of the United States, including across state lines. Suppose the DEA agrees to classify seeds, extracts, and genetic material with less than 0.3% THC as hemp, which is the logical decision. In that case, there should be no import/export restrictions on cannabis seeds, Pennington added. The problem is that one can never know unless it is seen in action.”
Meanwhile, the official view at the state level is that there should be no federal intervention with the transportation of products such as seeds, extracts, and cellular components that satisfy the THC criterion for the hemp exemption. However, states can nonetheless prohibit products not overseen by the CSA and thus permissible under federal law. This implies that conditions will nevertheless be able to ban the transfer of illegal cannabis products through their borders.
However, according to Pennington, states tend to frequently structure their drug policies based on DEA rulings, which will almost certainly result in state-level reforms. This decision may have some influence on state statutes soon.
Managing Marketing while Selling Weed
The statement clears up the business practice for businesses that sell cannabis seeds. However, this new rule could become entangled with other legal requirements. According to Rod Kight, a lawyer for the cannabis industry, even though the sale of cannabis seeds is legal, taking part in the production of a prohibited substance like cannabis is still banned.
As a supporter of marijuana, Kight remarked to CBD-Intel, that he believes that any advancement by enforcement agencies that permits a broader reading of the legislation is typically favorable. The most significant change, in his opinion, is that companies that sell cannabis seeds will now be able to advertise that their products have a high THC potential openly. He believes this to be a trap.
Advertising the potential of cannabis seeds, such as a specific genetic strain recognized for producing plants with high THC contents, would increase demand for them. Still, law enforcement might also view it as a plot to commit a crime. According to Kight, during his interview with CBD-Intel, one can sell marijuana seeds, but naturally, there isn’t much of a profit for only sources. He added that when his clients reach out to him about marketing their products, he advises them against doing that since it could lead them to problems.
Kight believes that the DEA’s letter on marijuana seeds should be viewed with skepticism, given the agency’s lengthy history of resisting changes to relax cannabis laws. You might want to rethink that when the DEA says anything that appears beneficial for cannabis.
Conclusion
On paper, because hemp and marijuana seeds generally contain nominal THC levels that wouldn’t exceed the legal threshold, the DEA is essentially conceding that people can have cannabis seeds. This rule still applies regardless of how much THC the resulting plant might produce, as long as the seeds contain less than 0.3 percent delta-9 THC.
Of course, it continues to be federally illegal to use any cannabis seeds to grow still-prohibited marijuana. This is why Kight’s warnings and call for optimum caution around the new development should not be disregarded. To be on the safer side, watching how everything plays out before putting out that advert for Cannabis seeds is your best shot.
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
Business
Alabama to make another attempt Dec. 1 to award medical cannabis licenses
Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.
The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).
Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.
Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.
That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.
Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.
Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.
A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.
Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/
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