The Michigan Legislature recently passed a law protecting the use of cannabidiol (CBD) oil derived from hemp. The legislation dovetails with the recently enacted 2018 Farm Bill, which provides that hemp is no longer an illegal substance under federal law.
State Representative, Steve Johnson, a sponsor of the Michigan legislation, stated: “CBD oil derived from hemp doesn’t get you high. It contains no more than 0.3 percent Tetrahydrocannabinol (THC). But the Michigan Department of Licensing and Regulatory Affairs (LARA) decided last summer to start classifying it the same way they do marijuana, which contains 5 to 35 percent THC.”
The new legislation clarifies that CBD oil derived from hemp falls under the definition of industrial hemp, rather than the definition of marijuana. Therefore, a medical marijuana card is not necessary to purchase CBD oil in Michigan.
Although the legislation provides welcome clarity, it does not mean that CBD oil is a completely unregulated substance in Michigan. Hemp/CBD companies need to continue to be mindful of Food and Drug Administration regulations which govern the use of CBD in food and dietary supplements. It is also anticipated that LARA will issue additional regulations regarding CBD oil. Until new federal and state regulations provide further guidance, navigating the CBD landscape will continue to be challenging.
Joseph M. Ammar is a partner in the Kalamazoo office. He is a member of the firm’s Banking, Bankruptcy and Creditors’ Rights Practice Group.
Before joining Plunkett Cooney, Joe was employed by National City Bank (now PNC Bank ...
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