A notice published last month in the Federal Register by the United States Drug Enforcement Administration (DEA) has formed varied reactions in the growing CBD (cannabidiol) industry and may soon result in a court battle over the legality of a substance that federal law enforcement considers a marijuana extract. The DEA reported a final rule to create a new Administration Controlled Substances Code Number for marijuana extract in December, clarifying in response to a comment submitted to the agency that CBD would fall within the new drug code. Marijuana extracts will remain a Schedule 1 controlled substance. The DEA explained the new drug policy would enable the agency to track quantities of cannabis extract separately.
The DEA said in the notice, “The creation of a new drug code in the DEA regulations for ‘marijuana’ extracts will allow for more appropriate accounting of such materials consistent with treaty provisions.” Hemp lawyers have disputed the DEA’s rule is inconsistent to the 2014 Farm Bill signed by Former President Barack Obama. Section 7606 of the 2014 Farm Bill authorized the growth and farming of industrial hemp, from which CBD seemingly derives. However, the notice raised worry that the DEA would move to crack down on producers and marketers of CBD, which has been researched as a medicine to treat epilepsy and widely marketed in dietary supplements.
Worried that CBD would be treated as a Schedule 1 narcotic, Jonathan Miller, a lawyer in Lexington, KY, with the firm Frost Brown Todd LLC, described as “apocalyptic” some initial reactions in the industry to DEA’s notice. “DEA cannot rewrite federal law, and federal law is very clear, particularly. Hemp that is grown pursuant to a pilot program, that the Controlled Substances Act is exempted,” Miller said in a phone interview. “We do not feel the DEA rule changes anything, especially for people who are part of hemp pilot programs,” Miller stated.
Yet, some hemp leaders are getting ready for a possible legal battle with the DEA in response to its notice. The new drug code is expected to take effect soon. The Hemp Industries Association stated last month in a press release, “The DEA final rule is concerning to the industry, as it creates confusion in the marketplace among consumers and legitimate businesses alike, and may potentially result in federal agencies improperly treating legal products such as CBD oils, body balms, and supplements as controlled substances.” The trade group added it was “strongly considering legal action” to protect the hemp industry.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
