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Michigan working up state hemp plan for USDA’s OK

By KEVIN WALKER

LANSING, Mich. — Right now Michigan state officials are working on policies and procedures to help businesspeople succeed at growing industrial hemp there.

In December 2018, President Trump signed the 2018 farm bill that legalized industrial hemp under U.S. law and designated the USDA as the federal agency with regulatory oversight. Federal law requires that states wanting an industrial hemp industry develop a state plan to dovetail with federal law.

Although Michigan's industrial hemp law, approved by voters last year in a statewide measure, came into effect on Jan. 15, the state is prohibited by federal law from issuing registrations or licenses to grow it until the state plan is in place and approved by the USDA.

Once the plan is submitted, the USDA has 60 days to review and approve it, according to information from the Michigan Department of Agriculture and Rural Development (MDARD).

A plan is required in order to show a state has adequate policies and procedures in place to ensure there is a record of where hemp is produced; that it does not contain more than 0.3 percent THC, the chemical compound in marijuana that gives users a “high;” for disposal of materials with a THC concentration of more than 0.3 percent; and for dealing with violations of federal and state regulations.

One popular use for hemp is in the production of CBD liquid product, or cannabidiol, an ingredient in hemp that reportedly does not produce the characteristic marijuana high. Consumers use CBD to treat pain, stress and anxiety. And there are other uses for industrial hemp.

In late December former Gov. Rick Snyder signed several bills into law that articulate policies and procedures regarding the development of a hemp industry in Michigan.

Under the legislation, MDARD is required to establish and operate a hemp licensing program, establish an industrial hemp licensing fund, establish a growers' registration program and establish a processor-handler license program for processing, handling, brokering or marketing industrial hemp.

On Dec. 28 Snyder signed Michigan House bills 6330, 6331 and 6380, which are now Public Acts 641, 642 and 648 of 2018. The legislation amended the Industrial Hemp Research Act, creating the new Industrial Hemp Research and Development Act.

The National Cannabis Industry Assoc. (NCIA) has taken a keen interest in what's happening in Michigan with industrial hemp and recreational marijuana – which was legalized by referendum in November – and has produced a webinar it posted on its website, which anyone can view for free. “Michigan Voted to Legalize Adult-Use Cannabis: What You Need to Know Now” was hosted by the NCIA's state regulations committee and recorded Jan. 22.

“I'm so excited that so many people are interested in what's going on in Michigan,” said Barton Morris, principal attorney, Cannabis Legal Group during the webinar. The firm is based in southeastern Lower Michigan.

In a separate interview, NCIA committee member Michael Cooper explained that regulations for marijuana and hemp will be the responsibility of different state departments and that businesses “should expect some significant differences in the regulation of adult-use cannabis and hemp in Michigan.” The exact nature of those differences is not yet clear.

The one-hour webinar can be viewed at https://thecannabisindustry.org

2/13/2019