Michigan’s Licensing and Regulatory Affairs Division released an “Advisory Bulletin” titled Cannabidiol (“CBD”) and Industrial Hemp (“Hemp”) Products similar in format to those that have been released for other clarifications under the Medical Marihuana Facility Licensing Act (MMFLA).
This bulletin raised a great deal of concern amongst not only those operating MMFLA compliant “provisioning centers”, but also even more so amongst individuals selling hemp derived CBD products in other retail settings such as health food stores, gas stations, dr’s offices, along with manufacturers of industrial hemp derived CBD products.
The Michigan Industrial Hemp research Act defines Industrial Hemp as:
(c) “Industrial hemp” means the plant Cannabis sativa L. and any part of the plant, whether growing or not, with a delta-9-tetrahydrocannabinol concentration of not more than 0.3% on a dry weight basis.
This research act specifically authorizes the cultivation of industrial hemp under the following conditions.
Sec. 3. (1) The department or a college or university in this state may grow or cultivate, or both, industrial hemp for purposes of research conducted under an agricultural pilot program or other agricultural or academic research project.
(2) The department or a college or university that transports industrial hemp as part of a research project authorized under this act shall include along with a shipment of industrial hemp a letter on the department’s or the college’s or university’s letterhead that provides notice that the shipment includes industrial hemp authorized under the industrial hemp research act.
(3) A college or university in this state may receive direct grants from the federal government or any other source for the purpose of conducting research authorized under this act.
History: 2014, Act 547, Imd. Eff. Jan. 15, 2015.
This program although implemented in January of 2015 has resulted in absolutely no research projects being submitted to the Michigan Department of Agriculture and Rural Development (MDARD). The reasons for this are based on the inconsistent policies set forth by the federal Farming Bill as compared to the constantly changing DEA police towards Hemp and marijuana. A couple institutions have made efforts but have yet to successfully engage in a program as a result of being help by the DEA recommended seed importation policy.
Nonetheless Industrial Hemp cultivation has expanded greatly across the US and internationally, and is now being sold all across the state of Michigan.
LARA’s advisory bulletin specifically states that:
“Marihuana does not include industrial hemp grown or cultivated (or both) for research purposes under the industrial hemp research act. The Industrial Hemp Research Act limits industrial hemp to cultivation or research and does not authorize its sale or transfer.“
This language was at first glance confusing, as it on one hand acknowledges the difference between marihuana and industrial hemp, and on the other hand says that the Industrial Hemp Act limits industrial hemp to cultivation and research not transfer or sale.
LARA Live Q and A on CBD:
LARA received a great deal of follow up inquiries and determined that it would be valuable to have a live stream of this session available on facebook.
What was garnered from this discussion is that LARA has taken a strict definition of Industrial Hemp, not based on the Federal law, but based on Michigan Law.
They are going by the argument that The Michigan hemp research program only is applicable to plants that meet the .3% thc requirement along with being run through a Michigan educational institution as set forth in the rules. Therefore, the fact that the current status of the Michigan Industrial Hemp program does not yet have any members, none of the industrial hemp that is in Michigan is derived from the Michigan Hemp research program, and thus is viewed by LARA as not being Industrial Hemp and is therefore pulled back into the definition of Marihuana.
There is a link to the videotaped meeting at the end of this article.
IMPACT OF THIS RULE
This LARA bulletin is not codified law and is a little bit more difficult to predict its ultimate enforcement effect. It seems like a foregone conclusion that MMFLA Provisioning Centers will be required to acquire CBD products from MMFLA licensed growers and processors, but what is slightly less clear is how much LARA will enforce this bulletin on those who sell out of state hemp derived CBD products in stores that aren’t already under LARA’s normal range of regulation under the MMFLA. Taken to its strictest meaning these items can only be sold under the MMFLA, but its anyone’s guess as to how they will be enforced.
Conflicting Views
There is however a distinctly different viewpoint between the LARA bulletin and MDARD when it comes to the ability to transfer or sell Hemp and Hemp derived products. LARA’s bulletin claims these can’t be sold or transferred under the MDARD run Industrial Hemp Research ACT.
It is important to remember that LARA DOES NOT RUN THE RESEARCH ACT, MDARD DOES. Therefore, MDARD’s determination as I have garnished through a phone discussion with their team members is that there is no set restriction on what MDARD will view as research and development, which they said would include a research and development project focused on testing the viability of oh lets say “Industrial hemp derived CBD” on the market place in Michigan. Based on MDARD allowing that and LARA stating that Industrial Hemp derived CBD falls outside of the definition of Marihuana, then in theory anyone who is able to successfully set up a Industrial Hemp research project in michigan could become the only legal supplier of CBD, or any hemp derived product for that matter.
For anyone who looks at this and wants to know more about how they may become involved in this industry, get licensed to grow hemp, all while complying with LARA, MDARD, State of Michigan, DEA, and US AG requirements, please contact the law office of Michael Komorn
800-656-3557
Josh@komornlaw.com
Josh Colton, Esq.
Komorn Law, PLLC
LARA Videotaped meting link
