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CBD and THC Legality - State and Federal Overview

To learn about CBD and THC regulation in the US today, you should start with the 2018 Farm Bill and the key changes it made to the status of hemp legality.

 

CBD, or cannabidiol, is one of many compounds that can be found in hemp. How it is treated by U.S. law rests a lot on whether it comes from hemp or what the law calls marijuana.

Tetrahydrocannabinol (THC) is another compound found in cannabis and hemp that is most closely linked to the plant's intoxicating effects. The amount of THC in a product is very important to the law.

Cannabis that has less than 0.3% THC by dry weight is usually considered hemp under federal law. In the eyes of the federal government, anything above that amount is considered marijuana.

How the Farm Bill Changed the Law at the Federal Level

To learn about CBD and THC regulation in the US today, you should start with the 2018 Farm Bill. It did not make canabis legal in all situations. 

Here’s a quick overview of the changes: 

  • "Hemp" and its derivatives should not be on the federal list of controlled drugs as long as the plant and its products have less than or equal to 0.3% THC by dry weight.
  • Allow the transport and sale of legal hemp and goods made from hemp between states. This means that a CBD product made from hemp that follows federal rules could theoretically go from one state to another, even if those states have different rules.
  • Set up a way for states and tribes to get federal approval for their hemp production plans, or let the federal government make plans if they don't present their own.

This means that CBD products made from hemp that have less than 0.3% THC are not considered controlled substances at the government level. However, they still have to follow other laws, like those about labeling, importing, farming, consumer products and any state-specific regulations.

How the Federal Government Handles THC and Marijiuana 

Federal law says that THC levels above 0.3% are still linked to marijuana-related categories. That leads to several things:

Growing cannabis that has more THC than the legal limit for hemp is considered growing marijuana, which is still illegal under federal law unless it's for approved study purposes or in very limited other situations.

Federal law still makes it illegal to have, make, or sell cannabis with a higher THC content, even in states that allow adults to use these products or for medical reasons.

There are a lot of problems with banking, insurance, and doing business between states because of this split. Hemp businesses have to follow certain rules, but cannabis companies with more THC still have to follow federal laws.

Other Federal Agencies’ Laws for CBD and THC 

Under the Farm Bill, the U.S. Department of Agriculture (USDA) is in charge of growing hemp. Important points are:

  • If the USDA says it's okay, states and groups can run their own hemp programs with their own rules for licensing, testing, and sampling.
  • Hemp plants need to be checked for THC levels, usually right before they are picked. If a crop has more THC than what is allowed, it might need to be cleaned up or destroyed in a controlled way.
  • To stay in line with their state or government hemp plan, farmers must keep records, dispose of hemp appropriately if it is above the limit for THC, and file reports.

This framework mostly treats hemp as an agricultural product, but it has tight rules about THC compliance.

CBD and THC: Federal vs State Laws 

In the US, CBD and THC from hemp are part of a stacked system:

  • Federal standard: Hemp with less than 0.3% THC is legal as a farming product, as long as it is regulated by the federal government. The federal government still has different rules for marijuana and products with more THC.
  • Overlays by state: Each state can decide for itself how to make, distribute, and sell goods made from hemp and cannabis with more THC. Some are very similar to the federal rules on hemp, while others add limits or make the rules more general.

Even if a product is legal at the federal level, it might not be legal in some states. One example is that some states limit the kinds of goods that can be sold, even if they come from hemp. For example, foods and inhalable forms are not allowed.

Conversely, some states allow cannabis with a higher THC level for medical or adult use, even though these products are still officially illegal at the federal level.

That's why businesses and consumers must deal with both levels of government at the same time, not just one.

How Different States Handle CBD and THC 

There are federal rules about hemp, but each state has its own rules about CBD and THC. The details change all the time, but most states follow a few general patterns.

Some states let people over a certain age (usually 21) buy and have higher-THC cannabis products for their own use. These states usually also have strong hemp programs.

In these states:

  • CBD goods made from hemp can usually be found in regular stores, though there are sometimes rules about testing, labeling, and packaging them.
  • Products with more THC can only be bought at approved dispensaries or similar places, and there are strict rules about licensing, tracking, and taxes.

There may still be limits on where goods can be sold because of local laws, like city or county bans on dispensaries.

There are often a lot of rules about how to market, make, and use marijuana in public, even in places where it is legal for adults. These rules are often changed as regulators see how markets change.

Some states don't let stores sell cannabis to adults, but they do have legal frameworks:

  • People who are qualified can sign up and buy higher-THC products from licensed stores, usually with a recommendation from a medical worker.
  • In general stores, CBD goods made from hemp may still be sold, but there are sometimes more rules than in states where marijuana is legal for adults.

Different states have very different limits on products, rules on how they must be packaged, and (if there are any) qualifying circumstances.

Hemp programs and medical cannabis programs may be run by different bodies in these states. This means that rulebooks for CBD products made from hemp and products with more THC may be different.

Access is less open to a smaller group of states. Some only allow CBD products made from hemp that have strict THC limits and clear labeling rules. They may also not allow certain types of products, like foods, drinks, or inhalables.

Others focus on limiting substances that get you high from hemp, like some types of THC made from CBD, while letting hemp products that don't get you high go through.

Not only growers may have to get licenses and register, but also makers, distributors, and retailers. These states may change their rules often, so businesses need to keep a close eye on them to stay in line.

Legal Status of CBD and THC 

The legal status of CBD and THC in the US is a mix of federal rules, state tests, and a market that changes quickly. Hemp was given a clear legal category by the 2018 Farm Bill. However, the rise of new product types and the growth of state cannabis programs have shown that there are still gaps and gray areas that lawmakers are trying to fill.

The best thing for people who work with or are thinking about CBD and THC products is to stay aware and be careful. Laws decide not only what can be sold, but also how things must be made, named, and shown to the public, and these rules will keep changing over the next few years.