The House of Representatives of Washington is considering the approval of House Bill 2334 that would allow for the licensed producers and processors of marijuana to use CBD from a source that hasn’t been licensed by Washington’s LCB or the Liquor and Cannabis Board. The House Bill refers to the CBD products as any type of product that consists of cannabidiol and will allow the use of these products coming from unlicensed sources for as long as the product has less than 0.3% of the THC.
Closed Loop Market
The regulated cannabis market of Washington is a closed loop in that it works based on the principle that no marijuana should come in the state and nothing must ever go out as well. Only growers that are licensed by the state produce everything that’s being sold in the stores. If anyone is caught bringing in cannabis from an outside source, then the board will be forced to revoke their license.
How the House Bill Can Affect the Market
House Bill 2234 will have the most impact on the processors of CBD who want to incorporate CBD on their products. These include marijuana capsules, oils, candies, and some other products. Some processors of CBD in the state have already considered the idea of incorporating unlicensed CBD into their products that have higher CBD concentrations. CBD processors who have chosen to enrich their CBD products with unlicensed ones can do so but at their own risk.
The legal basis on the claim that using CBD from cannabis that’s obtained from outside the state is based upon the idea that not all cannabis is actually considered marijuana and that products that contain CBD derived from industrial hemp or from certain parts of the cannabis plant are not included in the list of the Federally-controlled substances, as defined under the Federal Law.
The 2014 US Farm Bill
The 2014 US Farm Bill created a framework for cultivating industrial hemp legally, which is often referred to as cannabis with THC concentration below 0.3%. The Bill allows for the states to create pilot programs for the purpose of hemp research. Washington has this particular program, although it’s underfunded. Hemp crops that were cultivated in compliance with the pilot program imposed by the state are in legal pursuant to the bill, although any sale of products obtained from the research is strictly prohibited.
In the previous year, the legislature of the state required a study of the viability of allowing CBD processors to use hemp that’s only cultivated by licensed farmers. It’s also possible that processors can use the CBD products derived from a hemp cultivator from another state, which has implemented the Industrial Hemp Program in accordance with the Farm Bill. However, the DEA has issued a statement saying that the interstate transfer of industrial hemp is actually beyond the scope of the Bill and is therefore considered illegal.