Cannabis Administration and Opportunity Act Released this AM!

This morning, the long-awaited Cannabis Administration and Opportunity Act (CAOA) was released by Senators Chuck Schumer (D-NY), Ron Wyden (D-OR) and Cory Booker (D-NJ).

Click here for links to the bill and the overview summary.

While many on Capitol Hill are skeptical that this comprehensive cannabis reform legislation can get passed this year, the political winds continue to blow strongly in our direction. At a minimum, this bill serves as a key starting point for discussion, and there is a realistic chance that portions of the legislation could find their way into the law by December.

We will be doing a very thorough scrubbing of this bill for you in the next few days, but from our cursory review, we highlight the following provisions that relate to hemp/CBD:

• Hemp-derived CBD would be regulated as a dietary supplement. Note that this bill imposes a stricter regulatory regime for hemp than other dietary supplements (including daily serving caps, labeling and packaging requirements, and mandatory filings of New Dietary Ingredient Notifications), and it applies only to CBD, not other cannabinoids. (Section 504, p. 202)
• Guidance would be issued on criteria to evaluate the safety of CBD as a food/beverage additive. (Section 504(g), p. 205)
• A process would be established to allow for the delivery of “hot hemp” – hemp inadvertently produced with a level of THC that exceeds federal law – to cannabis enterprises. (Section 303, p. 225)
• Extensive fair banking provisions and consumer protections would open up financial institution access to cannabis and hemp businesses. (Sections 701-707, p. 245)
• The bill would redefine hemp’s THC concentration levels, currently no more than 0.3% delta 9 THC on a dry weight basis to:
  • Products made or derived from hemp could not exceed 1 milligram of total THC per 100 grams on a dry weight basis;
  • Total THC would be defined to include delta-8 THC, delta-9 THC, delta-10 THC, THCA, and cannabis-derived substances with similar effects on the body; and
  • Plant material could not exceed 0.7% of total THC on a dry weight basis. (Section 803, p. 289)

We will be analyzing this in the coming days and share our thoughts about all of these provisions next week. In the meantime, please share with us your thoughts by emailing us here.