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When Can We Expect Federal CBD Regulations?


Guest blog by Kathy Patchel, RZA Legal summer extern


Since the federal legalization of industrial hemp last year, Americans have been waiting on regulations from the FDA concerning CBD products. CBD may be derived from hemp to create a multitude of different products with varying uses. You may have seen CBD products in your local store or used them yourself. CBD products have been legal in Colorado since legalization of marijuana, from which CBD may also be derived. The issue now is that states without legalized marijuana don’t have any guidance on CBD.


The United States Postal Service provided some guidance on mailability of cannabis and hemp-related products in June 2019.  But the FDA has been grappling with its task of regulating CBD and other hemp-derived products, and with just cause. Issues such as uniform testing, warning labels and other issues are apparently proving more difficult to craft.


The FDA is focused on safety and maintaining incentives for clinical research. Their concern is that if CBD is available as a dietary supplement there will be a dramatic loss in incentives for clinical research and potential for CBD will be lost.  The FDA provides lots of information about how CBD and other cannabis-derived ingredients are treated under current law and policy, but not much about how it intends to move forward at this point in time.


Another major concern of the FDA is that dietary supplement companies are already starting to make unsupported claims that their CBD products can cure serious illnesses like cancer or Alzheimer’s disease which may prevent people from seeking proper care for such illnesses. The FDA has also reported finding that many CBD products often do not have any CBD or an inaccurate amount. Rest assured that any forthcoming FDA regulations will address issues such as these.


In March 2019, then FDA Commissioner Scott Gottlieb opined it would take years for the FDA to create rules to allow hemp-derived CBD to be used in food products unless Congress stepped in.  The FDA held a hearing in late May 2019 for stakeholders to contribute and propertied to have regulations circulated as early as the end of summer or early fall. But still no guidance has been issued.


In late September 2019, 26 members of the house of representatives sent a letter to the FDA urging guidance on this explosive new market.  That day, Senator Mitch McConnell managed to have the Senate Appropriations Committee to add provisions into an agricultural spending bill directly FDA to issue guidelines for hemp-derived CBD products within 120 days.


In October 2019, four major U.S. dietary supplement trade associations requested Congress provide guidance on CBD product marketing and sale.  


Needless to say, the pressure is on for the FDA to release guidance for this booming industry that's moving forward with no signs of pumping the breaks.


So, now we wait. 


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After serving in-house, Brian moved into consulting, where he helped develop one of the nation’s first industry-specific liability insurance policies for a nationwide carrier. He later advised clients on competitive licensing applications and regulatory strategy across multiple jurisdictions, counseling on legislative, regulatory, and public policy matters. Brian joined RZA Legal in 2020, where he represents Colorado businesses and property owners throughout the full lifecycle of their operations and investments. His practice includes real estate acquisitions and dispositions, commercial leasing, land use and zoning matters, entity structuring and financing, contract negotiation, regulatory compliance, employment matters, and state and local government representation. He regularly works with mountain community clients navigating complex local regulations affecting development, use, and operation of real property. Brian also assists municipalities with drafting and revising ordinances governing regulated business activity, balancing operational realities, community priorities, and legal risk. Brian is active in legal scholarship and education. He has published in the University of Virginia Journal of Social Policy & the Law and the Pepperdine Law Review, written on regulatory reform for the Cannabis Industry Journal, and previously served as an adjunct professor of law at the University of Wyoming. Before practicing in Colorado, Brian worked in New York City in private practice and clerked for a judge on the U.S. Court of International Trade. Brian lives in Grand Lake, Colorado, with his wife and has volunteered as a first responder with Grand County Mountain Rescue and Rocky Mountain National Park Rescue since 2015. Outside of work, he enjoys backcountry skiing, playing old-time rock ’n’ roll, and spending time with family in New Jersey. Brian is licensed to practice law in Colorado, New Jersey, and New York. Optional closing sentence: You don’t have to navigate an evolving regulatory and real estate landscape alone—RZA Legal is prepared to guide you at every stage.

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