A handful of CBD and cannabis companies turned out to be figments of the imagination as a con artist successfully duped investor after investor, but his conning spree has come to an end.

A California man pleaded guilty April 5 to a slew of federal criminal charges for swindling investors out of $18.4 million. He conned several investors—all as he was already completing a sentence for prior criminal charges—by inventing companies that he claimed invested in hemp farms and cannabis-infused retail products. He also claimed to run a sham bottling business for CBD-infused products. The bogus businesses turned out to quickly fall apart.

People magazine reports that Mark Roy Anderson, 69, pleaded guilty to two counts of wire fraud, according to an announcement from the U.S. Attorney’s Office, Central District of California.

Anderson took the plea agreement, and admitted to engaging in two separate schemes that swindled investors. His scheme kicked off right after he was released from federal prison while he was on home confinement and supervised release. Police say Anderson has been conning people since the 1990s but moved into the cannabis sector where there was a lot of loot to be gained.

From June 2020 to April 2021, Anderson convinced investors to fund his company Harvest Farm Group, to harvest and process hemp grown on his farm into medical-grade CBD isolate. 

“Anderson convinced investors to invest in Harvest Farm Group by falsely representing that, through the company, he owned and operated a hemp farm in Kern County,” the report reads. “He also lied that had already completed successful and profitable harvests of hemp from the farm. He also falsely said he was using his own machinery and equipment to convert the hemp into CBD isolate and Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream.”

Anderson weaseled his way out of skeptical investors and claimed that past fraud convictions were not in fact him. When investors demanded money, Anderson falsely told them that sales of products derived from hemp grown at the farm had been delayed because of the COVID-19 pandemic.

In another scheme, which ran from April 2021 to May 2023, Anderson duped investors by soliciting money for Bio Pharma and Verta Bottling—two more sham companies—by claiming that these businesses successfully manufactured, bottled, and packaged commercial products.

Specifically, he claimed Bio Pharma manufactured and sold infused products such as CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and a variety of food products.

“Anderson falsely stated that his bottling companies owned and possessed millions of dollars’ worth of assets, including—in Bio Pharma’s case—hemp biomass, CBD isolate, CBD oil, and—in Verta Bottling’s case—manufacturing equipment and an assignable lease for a warehouse to manufacture and sell its products,” the announcement reads.

How did he do this? Anderson carefully fabricated fake legal and business documents, which included fake purchase order contracts that he claimed showed agreements with third-party companies to purchase tens of millions of dollars’ worth of products manufactured by his bottling companies. Anderson also provided victims with fake samples of products he claimed that he manufactured by his bottling companies.

Investors have been warned about bogus cannabis companies before.

In 2019, Massachusetts Secretary of the Commonwealth William Galvin issued a warning to potential cannabis industry investors to be wary of scams and unscrupulous operators after filing fraud charges against two entrepreneurs in the state. In an alert released by Galvin’s office, the secretary urged investors to approach offers for unregistered securities from unlicensed sellers with caution, noting that the cannabis industry is not monitored by federal regulators or state-chartered banks.

“No one regulator can police this marketplace,” Galvin said in the statement. “My Securities Division intends to scrutinize these offerings to proactively prevent investor harm.”

Celebrities like Tom Hanks and Sacha Baron Cohen have been targets of fake CBD or cannabis companies, sometimes in the form of fake endorsements or misuse of their likenesses. Sacha Baron Cohen’s massive $9 million lawsuit was filed against a dispensary that ran a billboard ad with his image without permission, but the actor and plaintiff have reached an agreement to drop the lawsuit.

According to court documents filed on July 12, 2021, Sacha Baron Cohen filed a $9 million lawsuit against Somerset, Massachusetts-based Solar Therapeutics, a dispensary, for running a billboard ad with his image without his permission.

Solar Therapeutics erected a billboard on an interstate highway in Massachusetts that features a picture of Baron Cohen as Borat, with his thumbs up and the words “It’s Nice!,” one of Borat’s catchphrases.

The Iowa state Senate on Tuesday approved a bill to cap the THC potency of consumable hemp products, sending the measure to the desk of Republican Governor Kim Reynolds for consideration. The legislation, House File 2605, was passed by the Senate by a vote of 31-18 after receiving approval from the Iowa House of Representatives last month.

If signed into law by the governor, the measure would amend the Iowa Hemp Act to cap the THC potency of hemp products at 4 milligrams per serving, with a maximum limit of 10 milligrams per package. The legislation also requires warning labels on hemp product packaging and sets a minimum age of 21 to purchase hemp products containing THC. Additionally, the bill adds new restrictions and sanctions related to the manufacturing, possession and sales of consumable hemp products, including penalties for businesses that sell such products without first registering with state regulators.

Republican Senator Dan Dawson, the sponsor of House File 2605, said the bill is “desperately needed regulation.”

“There has to be some type of guardrails on here,” he said, the Des Moines Register reported on Tuesday.

The senator said that the bill is needed to maintain separation between over-the-counter hemp products and those regulated by the medicinal cannabidiol (CBD) program, which was passed by state lawmakers in 2014 to legalize the possession of low-THC CBD products for medicinal purposes.

“The Iowa Hemp Act, or the program that we’re talking about here today, needs to be at a milligram usage less than our medical cannabidiol program, otherwise the lines are blurred,” argued Dawson, according to a report from online news source We Are Iowa.

“The medical cannabidiol program actually puts an individual with a doctor to get these products, that’s the biggest distinction,” added Dawson, the Capital Dispatch reported on Tuesday. “The Iowa hemp program has none of those barriers there. So if we want to protect Iowans with these products … there has to be some type of guardrails on here, to make sure that the medical cannabidiol program is the program that we can direct Iowans to when they have one of these diagnosed conditions.”

Lawmaker Warns of Bill’s ‘Unintended Consequences’

During a House debate on the bill last month, Democratic Representative John Forbes told his colleagues that he has concerns the bill will have “unintended consequences” for people who use hemp products outside of the state’s regulated cannabidiol program, including people who are using THC or CBD to help them recover from opioid addiction. 

“I think we’re not hitting the nail on the head here, when it comes to being able to help Iowans that are seeking out this as an alternative to maybe taking other prescription medications, and increasing quality of life, helping them,” Forbes said.

Forbes also noted that many CBD products come in formulations such as capsules with 2 to 4 milligrams of THC per serving. Under House Bill 2605’s provisions, such products would only be available in packages of two to five capsules, a restriction that many manufacturers would find overly burdensome. If the bill is signed into law, many consumers may find that the hemp products they are accustomed to purchasing may no longer be available in Iowa.

“It does have a major impact on, I think, the people here in the state of Iowa that sought out ways to manage their health issues,” Forbes said, according to a report from The Gazette. “A lot of the people that go to these do purchase them because they’ve been on chronic pain medications and they’re trying to reduce that.”

“This legislation will make it much more difficult for people in the state of Iowa,” he added. “They’re going to go out and buy this stuff online … they won’t have a business they can go into.”

In the upper chamber of the state legislature, Republican Senator Tom Shipley said that when he helped draft the Iowa Hemp Act in 2019, he knew that there were “some nefarious motives behind this,” including some businesses that had plans to sell products that were not covered by the law.

“We found out some people could find an angle to get around things and do things that are not good for Iowans,” Shipley said. “And I just want to stand up in support of Senator Dawson’s bill to try and close some of these loopholes that even I could figure out were coming.”

In addition to regulating hemp products that are being used by consumers therapeutically, supporters of the legislation said it is needed to help protect those who choose to use hemp recreationally. Dawson said the bill is “desperately needed regulation on this industry, to not only protect industry but also to protect the consumers who might indulge in these products.”

A recent property tax relief bill in Nebraska is seeking to create new income opportunities for the state, including a variety of sales tax exemptions. This includes adding sales taxes for products like candy and soda, as well as services such as pet care and grooming, but most importantly, adding a 100% tax to CBD and hemp products.

Legislative Bill 388 was recently passed by the Nebraska Legislature’s Revenue Committee on March 21 in a seven to 10 vote. The bill was initially introduced by Sen. Lou Ann Linehan in January, who is also the chair of the Revenue Committee. “Sales tax exemptions will be removed on pop and candy, on pet services, on advertising revenue over $1 billion dollars, increased taxes on games of skill to 20%, and lottery tickets,” Linehan wrote in an outline. “Taxes on cigarettes will increase from 63 cents to one dollar and on vaping by 20%. We are going to tax hemp and CBD at 100%. This will result in new revenue of $182 million dollars.”

Overall, Linehan estimated that this would allow approximately $560 million in property tax credit funds that would be granted to schools, providing $3,000 per student in foundational aid. It would also create $650 million in property tax relief. The outline also describes “essentials” such as electricity, natural gas, or propane, as things that should not be taxed. “We are in a time of great revenue growth,” the outline concluded. “We have the revenues to pay for this now and for the foreseeable future.”

These proposals have created a rift among Nebraskan legislators. Gov. Jim Pillen approved the committee’s work on approving the bill so it can proceed to the floor for debate. “I want to congratulate the members of the Revenue Committee on advancing historic and transformational property tax relief and reform out of committee on a 7-0 vote,” Pillen said in a statement. “Thank you for delivering once in a lifetime transformational property tax relief plan to all Nebraskans.”

Many others, such as Sen. Julie Slama, expressed shock regarding the CBD and hemp tax increase. “I’m 100% opposed to LB-388, which is the largest tax increase in Nebraska history,” Slama said.

John Gage, state director of Americans for Prosperity, criticized the bill. “There’s nothing innovative about raising taxes on Nebraskans. This bill does not solve our property tax problem and will result in a higher tax bill for hardworking families,” Gage said, according to KETV. “This is the kind of big government nonsense you expect in California, not Nebraska. Legislators will be held accountable if they choose to vote for the largest tax increase in state history.”

Platte Institute CEO Jim Vokal called LB-388 a bad tax policy. “In recent years, the legislature has repeatedly succeeded and shown the best path to lowering taxes is to constrain all sources of revenue and spending growth,” said Vokal. “Such constraints need to be imposed upon local governments. We believe that constraining state and local revenue and spending growth is the best path forward rather than raising new sales tax revenues to lower property tax revenues.”

Cannabis is illegal in Nebraska, although sales of hemp-derived cannabinoid products continue to thrive. In January, Legislature Bill 199 was introduced by Sen. Teresa Ibach which, if passed, would ban the sale, possession, and consumption of such products. “While a product could be advertised as delta-8 or delta-10, these products could—and most likely do—contain chemicals, compounds and other impurities that are not listed on the label,” Ibach explained.

Meanwhile, advocates with Nebraskans for Medical Marijuana (NMM) are hard at work collecting signatures to qualify their medical cannabis initiative for the 2024 ballot later this year. The group needs to collect signatures from 7% of voters in the state and 5% of voters in 38 of the state’s 98 counties (with approximately 125,000 raw signatures in total) by July 3.

As of March 15, NMM said on social media that it has collected more than 72,000 signatures from voters in nearly all Nebraska counties (with the exception of Grant, Keya Paha, McPherson, Sheridan, and Wheeler). NMM has attempted to get medical cannabis legalized since 2020. Back then, they only collected 14,212 signatures in three qualified counties, followed by 16,328 signatures in four counties in 2022. 

Recent polling conducted by the Neilan Strategy Group in February revealed that 70% of participants want to see medical cannabis legalization. “Nebraskans are clearly ready to legalize medical marijuana,” the Neilan Strategy Group stated.

NMM held its own poll in 2022 and found that 80% of participants said they approved of medical cannabis legalization. “Nebraskans are obviously ready to legalize medicinal cannabis,” said NMM campaign manager Crista Eggers, who explained how excited advocates are to be making so much progress this year. “We’re very excited about where we’re at. This time, we’re going to get it done or it is not going to happen,” Eggers said.

In the midst of blossoming cannabis and CBD reform throughout the West, hemp-derived cannabinoid products are increasingly taking center stage as legislators continue to raise red flags surrounding the lack of regulation and intoxicating potential of these products.

Just in the past several months, a number of states have moved to introduce new policies to limit or ban the sale of psychoactive hemp-derived cannabinoid products, like delta-8 THC. Similarly, many are calling out some of the issues surrounding the regulatory gaps surrounding hemp-derived products in the market.

Among them is CBD Oracle, a consumer research company aiming to improve safety and transparency surrounding cannabis products. 

Most recently, it turned its attention to CBD gummies and other hemp products available for purchase on Amazon.com. While the company notes that Amazon will “tell you confidently” that they do not allow CBD gummies on the platform, CBD Oracle’s new independent analysis on such products begs to differ.

A Look at Amazon’s Approach to Hemp and CBD Products

While Amazon doesn’t technically allow CBD products, CBD Oracle suggests that sellers on the site largely get around this obstacle by avoiding the term “CBD” and instead using “hemp” on packaging and in product descriptions. 

Neurogan CEO Jan Brandup said that Amazon’s “hemp products” are not related to actual hemp and rather use the term as a sales tactic.

“It’s alarming how easily consumers are deceived into trusting these products, just because they are sold on a reputable platform like Amazon,” Brandup said. “The best case is they may drain your wallet.”

Sunday Scaries CEO Mike Sill agreed, adding that many of the products on Amazon automatically lack credibility and ultimately quality due to the nature of the platform’s regulations.

“When you search for ‘CBD gummies’ on the platform, no reputable brands populate in your search results,” Sill said. “The reason for this is that credible brands like Sunday Scaries, Charlotte’s Web and cbdMD are not allowed to sell on Amazon without being banned.”

Rather, Sill said these companies engage in “brand burning,” meaning that once they are banned from Amazon, they essentially rebrand with a new name and packaging only to reupload the same products to the site and continue sales.

“Their business model doesn’t include a focus on building a reputable brand and providing the highest quality and safest products to consumers; they are just looking for a quick sale and will do whatever is necessary to stay ‘live’ on Amazon,” Sill said.

So what exactly do Amazon “hemp” products contain?

Investigating the Contents of Amazon’s ‘Hemp’ Products

In an effort to analyze the specific contents of CBD products on Amazon, the company purchased 56 of the most popular hemp products on the site and tested them through InfiniteCAL Labs. Most of the products (80%) were gummies, with eight tinctures, two topical creams and one pack of mints. A majority (89%) also made specific numerical claims regarding dosage.

Around 30% (17 of 56) of the products tested contained CBD, averaging 547 mg per package. However, there was a large variance in CBD quantity between products, with a minimum of 28 mg of CBD and a maximum of 1,582 mg. While CBD Oracle notes that this at least shows Amazon isn’t being totally dishonest about some of these products containing hemp and hemp compounds, it still violates Amazon’s policies and may not be legally compliant.

THC is also banned from Amazon sales, though six (11%) of the tested products contained the cannabinoid with the three containing the most comprised primarily of delta-8 THC. While all of the products were under the THC threshold set by the 2018 Farm Bill, the three delta-8 products “had very high quantities of THC” with 641, 2,507 and 3,028 mg per pack. The product with the highest amount of THC had 76 mg per gummy.

The majority of tested products (35 of 56 products, or 62.5%) contained no cannabinoids at all with more than a third (24 of 56 products, or 43%) containing no hemp.

InfiniteCAL Lab Manager Dr. Erik Paulson explains that hemp is typically infused into consumable products through hemp seeds, which contain no cannabinoids, or through extractable material pulled out of leaves, stems or buds — generally to create cannabinoid-infused products.

“Simply put, if you buy ‘hemp’ from Amazon it is likely that you will actually be buying an expensive jar of gummy bears. Gelatin and sugar, priced at a premium,” CBD Oracle notes in the report.

The report also confirmed that a whopping 96% of tested products did not advertise an accurate dosage.

“If we assume the dosage listing refers to cannabinoids (and not just the total mass of hempseed oil), just two products were confirmed by lab testing to have a dosage within 10% of that listed on their labels,” the report states. “They contained an average of just 25% of the advertised dosage. In most cases, this was less than advertised, but one product primarily containing delta-8 THC had twice the promised dosage.”

In addition, 52% of the products appeared to make an unapproved medical claim, and almost 95% of products did not provide Certificates of Analysis (COA), typically considered an essential for reputable companies selling hemp products.

A Growing Issue and Potential Solutions

While the report focused on Amazon products, CBD Oracle notes the prevalence of this trend, as other companies like eBay, Walmart and Alibaba carry similar products — sometimes the exact same options.

Authors note the potential ramifications of selling these products, beyond safety and health concerns, in that it could undermine the broader hemp and cannabis industries and the reform progress so many are actively pushing for.

“Amazon has demonstrated that they don’t understand the difference between hemp seed oil and hemp extract that contains cannabinoids,” said Forge Hemp’s Kelly Lombard. “As long as sellers are vague about a product’s contents, Amazon doesn’t seem to care. This is problematic because U.S. consumers need more information about hemp and CBD, not less. Amazon’s convenience and return policy may entice more consumers to try hemp products, but if their experience is negative, that hurts the industry.”

CBD Oracle also lists some potential solutions to remedy these issues, though they largely fall on Amazon to either adhere to more strict verification and COA guidelines, if not completely remove any products making false claims. They note that customers tend to have limited impact and that individual efforts to combat or report these products may ultimately result in frustration and wasted time. 

Authors also cite that the current model, a blanket ban on CBD encouraging companies to be dishonest and actively work around it, may not be the answer.

“Even establishing a bare minimum requirement for hemp sellers — showing an up-to-date lab report — would be enough to send the snake oil sellers running for the hills,” the report concludes. “Will you be able to pretend that CBD isn’t available on your platform? No. But customers who are buying CBD on your platform — who already exist, like it or not — would be much, much more likely to get safe products that offer what they say on the label.”

Yet another state is cracking down on hemp-derived products, some of which have intoxicating effects, and South Carolina’s approach to food products that contain hemp is among the most extreme.

The South Carolina Department of Health and Environmental Control (DHEC) issued a warning in a letter dated Jan. 22, banning the manufacture, distribution, and sale of food and beverage products containing hemp-derived products as ingredients in the state’s marketplace.

While CBD products can easily be found in most states thanks to a lack of clarity in federal regulations, the U.S. Food & Drug Administration (FDA) has repeatedly warned that products containing CBD are illegal under the Federal Food, Drug, and Cosmetic Act. 

The FDA routinely issues warnings that adding CBD to a food means those products are adulterated, or against products with any sort of medical claims, but the agency has delayed finalizing rules.

“Therefore, the following hemp products are NOT APPROVED to be added to food or beverage products,” the letter reads. 

• Viable, non-sterilized hemp seeds, raw hemp leaves, and raw microgreens, and any other raw, unprocessed form of hemp biomass as they are considered “plant material” and may not be possessed without a Grower or Processor License 
• Pure CBD Isolate 
• Delta-8 THC, Delta-9 THC, or Delta-10 THC 
• THC-0 or any other derivative 
• “Full spectrum” whole-plant extract (i.e. “full spectrum hemp oil/extract” from biomass) if it includes health claims, or bears any sort of declaration of THC or CBD 
• Any hemp product that is NOT manufactured in a food-grade establishment inspected under GMP or cGMP regulations. 
• Any hemp or hemp-derived product that promotes its medical or health benefits

The only exceptions are basically hemp seed derivatives. “The FDA evaluated three Generally Recognized As Safe (GRAS) notices for hemp products and found that the use of such products as described in the notices is safe. Therefore, the following hemp products may be legally marketed in human foods and are APPROVED to be used as ingredients in food and beverage products,” the letter continues.

“While DHEC’s goal is to educate while we regulate this growing niche of manufacturers and distributors of foods and beverages containing hemp-derived products as ingredients, our obligation under the requirements of both federal and state law is to remove from commerce all food and beverage products containing non-conforming hemp-derived products as ingredients,” Sandra Craig, Director of the DEHC’s Division of Food and Lead Risk Assessments, said in a letter announcing the bans.

Sellers can use full-spectrum whole-plant extract as an ingredient in food and beverage products if and only if the hemp-derived ingredient meets the following requirements: 

• A “full spectrum” hemp oil or extract from biomass contains the naturally occurring ratios and array of phytonutrients found in hemp. 
• Using a full spectrum hemp oil as an ingredient must be referred to in the ingredients list on the food or beverage label as “Full Spectrum Hemp Oil” or “Full Spectrum Hemp Extract.” The label may not contain health claims and may not bear any sort of declaration of “THC”, “CBD”, or “Delta-9” products or isolates. 
• When companies in South Carolina receive their “full spectrum hemp oil/extract” from their approved supplier, it must contain no more than 0.3% Delta-9 THC, as evidenced by Certificates of Analysis (COAs). The use of concentrates or “work in progress hemp oil from biomass” containing more than 0.3% Delta-9 THC, is illegal. Companies may NOT use “crude” hemp-derived oil, “work in progress” hemp oils over 0.3% Delta-9 THC, non-food grade oils, or dilute hemp oils containing an illegal amount of THC (> 0.3%) to a “legal” level. Hemp products containing more than the legal limit of THC are no longer considered to be hemp but are a Schedule I Drug. Hemp products that contain more than 0.3% THC are NOT ALLOWED to be possessed by anyone in South Carolina, and they are NOT ALLOWED to be introduced into foods or beverages.

The letter also bans any mention of THC, dosages, and several other restrictions. The letter also reminds hemp sellers that only intrastate hemp product sales are allowed.

But they’re not only going after hemp-derived cannabinoid products that are synthetically derived from hemp biomass, and known for psychoactive effects—i.e. delta-8 THC, THC-O, etc.—they’re going after products with CBD, hemp leaves, plant material and more as well. Delta-8 THC only appears in nature in minute amounts, and intoxicating amounts have to be re-added to hemp via a refluxing process in a lab. This is why states are opting to either crack down on it or regulate it like marijuana. The 2018 Farm Bill opened a legal loophole, accidentally legalizing these ingredients. Delta-8 THC products seeped into the medical markets in some states.

At least a dozen other states are actively pursuing solutions to ban hemp-derived products in one form or another.

An Iowa legislative panel this week approved a bill that sets limits on consumable hemp products sold in the state. The measure, House Study Bill 665, was approved on Wednesday by the House Public Safety Subcommittee by a vote of 2-0. 

The bill, which was submitted to the state legislature by the Iowa Department of Public Safety (DPS), gives the state Department of Health and Human Services (HHS) the authority to regulate consumable hemp products. Under the measure, HHS can set cannabinoid potency limits on hemp products and set rules for their distribution and sale. The legislation also limits sales of consumable hemp products to adults aged 21 and older and sets criminal penalties for those who sell or give such products to minors.

Hemp products were legalized federally by the 2018 Farm Bill, followed by the legalization of the crop in 2019 by the Iowa Hemp Act. But neither law sets quality standards for consumable hemp products or includes provisions to regulate their production, distribution and sale.

The lack of regulation has led to a nationwide proliferation of hemp-derived products with intoxicating cannabinoids including Delta 8 and Delta 9 THC, among others. In Iowa, state lawmakers say they thought that such products were prohibited by the Farm Bill and the Iowa Hemp Act.

“We thought we were dealing with the intoxicating aspect, only to find out that there are ways to get around that,” Rep. Steve Holt told The Gazette. “So it’s sort of the wild, wild west out there in a lot of ways, with THC-infused drinks being able to be served to minors, a lot of other things going on that are not acceptable.”

Josie Wagler, the Department of Public Safety’s legislative liaison, said that the wide availability of intoxicating hemp products in Iowa made it necessary for the department to develop a regulatory proposal.

“We’ve seen an emergence of high potency, high-THC products hit the market,” Wagler said. “And coupled with that, there are no age restrictions for purchasing these products. So really the purpose is to get at that, and to give HHS and law enforcement some additional tools to help regulate these highly intoxicating products.”

The bill is supported by mental health advocates including Leslie Carpenter, the co-founder of Iowa Mental Health Advocacy, who told lawmakers that high-potency THC products pose the risk of serious mental consequences such as psychosis, especially when they are used by young people.

“I fully support medical marijuana,” Carpenter said during a House subcommittee hearing on Wednesday, according to a report from Radio Iowa. “It’s the high potency THC products and that currently a child can walk into a store and purchase them that makes me very concerned.”

Business Owners Oppose Legislation

Business owners in Iowa’s hemp industry oppose House Study Bill 665, saying the legislation goes too far. Scott Booher, the operator of Four Winds Farms, said that his business grows hemp for CBD and CBG, a cannabinoid that many people use to help with chronic pain, anxiety and sleep. He said he has many customers who buy these products for their children, but the bill advanced on Wednesday would make such use a criminal offense.

“Let’s look at what needs to be taken care of instead of just sweeping everybody under the rug,” Booher told lawmakers at the hearing. “We have patients that are kids, we have parents that buy our hemp products for their children. For ADD, for behavioral problems.”

Licensed hemp grower Tyson Allchin called out legislators for changing the standards regulating hemp and medical marijuana production. He believes he is the first Iowa grower to produce a hemp product that meets the standards for human consumption.

“My flower was packaged and labeled as a food-grade ingredient, lessons on infusion and extraction for personal use had been planned out and promoted, and HHS approved it on January 31,” Allchin told Iowa Capitol Dispatch. 

“And six days later, this bill attempts to ban it. I’ve exceeded state requirements, requirements which exceed federal guidelines,” Allchin added. “I’ve done everything required of me, and the state (is) continuously changing my goal. How can small farms ever get established when the state keeps moving our goal line?”

Booher said that he agrees that some hemp producers are selling intoxicating products that are not in line with the spirit of hemp legalization laws. But the bill advanced by lawmakers on Wednesday conflates businesses like his that produce non-psychoactive products with bad actors in the industry.

“Some of these people who are creating high THC products need to be held accountable in a different way,” Booher said, “maybe not with people who have low THC products.”

Representative Phil Thompson said he appreciates that many people are “willing to admit there are bad actors” and that he understands the frustration of business owners who are following the rules in place.

“But this is an important conversation to advance,” Thompson said. “I appreciate DPS on working on this and bring forth some guidelines on regulating this.”

The legislation has now been referred to the full House Committee on Public Safety for further consideration.

The Department of Justice has rescinded a DEA decision to fire a special agent who was let go due to a positive reading for CBD on a drug test.

DEA special agent Anthony L. Armour will be re-hired as a special agent and be reimbursed for back pay and legal expenses after a years-long court battle that stretches back to 2019 when a routine drug test showed he had been using CBD, which Armour maintained in court was for the purpose of treating chronic pain in lieu of highly-addictive opioid based painkillers.

“I’m excited to be getting back to work at DEA,” Armour said to The New York Times. “I hope to finish my career at DEA by helping its mission in taking dangerous drugs like fentanyl off the streets.”

Armour’s battle with chronic pain goes back to an injury he sustained during his college football career. He was also injured on the job as a DEA agent in a car crash during a surveillance operation, after which he suffered from back pain and a sprained neck. He ordered CBD products and a vaporizer from the internet, under the impression that he was not taking any illegal risks as the 2018 Farm Bill federally legalized hemp products. 

“For Armour and many others in this country, this change meant new opportunities—particularly as to CBD, a non-THC cannabinoid in the cannabis plant,” a portion of the lawsuit said. “Armour hoped CBD oils could play a role in his pain management. That he did is unsurprising. From Martha Stewart to Wrigley Field, CBD has become embedded in American culture.”

After he failed the drug test, Agent Armour turned the CBD products he had ordered into his superiors. Under federal law, hemp-derived products are defined as such if they contain less than 0.3% THC (please follow these handy-dandy little hyperlinks if you want more information on the clusterfuck of loopholes the Farm Bill created with regard to hemp-derived cannabis products). Of the three different hemp-based products Agent Armour turned in, court documents showed that two of them tested within the 0.3% THC range but one of them tested above the allowed threshold at 0.35%, which could be due to the notoriously unreliable potencies of hemp products and the methods by which they are tested.

The DEA even went so far as to double down on their decision years into the lawsuit in late August of 2023. They filed a court brief defending Agent Armour’s termination just days before the Department of Health and Human Services officially recommended the federal rescheduling of cannabis from Schedule 1 to Schedule 3. The DEA also issued an official notice to all DEA employees after Armour’s termination to avoid all CBD products despite their federally legal status.

“Mr. Armour was an outstanding DEA agent when he took a chance in 2019. He believed it was unlikely that CBD products would cause him to test positive for marijuana, but he knew it was possible, and he bought those unregulated products on the internet and consumed them anyway,” the DEA brief said. “Mr. Armour argues that he ‘displayed negligence or poor decision-making,’ and DEA properly held him accountable for his poor decisions when they resulted in a verified positive drug test. DEA lost trust in Mr. Armour and properly removed him.”

Despite a years-long fight to keep Agent Armour off the payroll the DEA has agreed to reinstate him and pay him $470,000 in back pay and legal fees, according to the New York Times who obtained a copy of the court filings from earlier this month. Agent Armour told the New York Times he still sees value in using CBD for pain management but that he will consult a medical professional for viable alternatives upon his return to work. 

“Federal drug testing policies—and importantly, attitudes about drug testing—have not caught up with the times. I’m not the only career law enforcement officer in this country with chronic pain, nor am I the only law enforcement officer that has turned to legal cannabis products to address pain,” Agent Armour said in court testimony in September. “Nobody should have to choose between suffering pain and serving our country.”

Minnesota legalized adult-use cannabis in 2023 and medical cannabis back in 2014, and with the emergence of the pending market comes a new report documenting the cannabis habits among consumers in the state.

While the report primarily looks at consumption and buying habits of Minnesotans, it also notably suggested that the state will need a minimum of 381 cannabis dispensaries across the state. This is because of state law, which requires one dispensary for every 12,500 Minnesotans.

The report details the findings of a project commissioned by the Minnesota Office of Cannabis Management looking to better understand current attitudes of cannabis consumers and demand in the state. Specifically, it pulls from data collected from the June 2023 and Sept. 2023 Regulatory Determinants of Cannabis Outcomes Survey (RDCOS), which is used to gather state-specific data on cannabis-related outcomes and administered on a quarterly basis.

Data collected from 494 participants residing in Minnesota who completed the full survey were included in the sample, and all were past-year cannabis consumers. The percentage of participants residing in each county is “almost perfectly correlated with the percentage of actual Minnesota residents in each county,” so authors suggest that the data is consistent with actual county populations in the state.

Minnesotan Cannabis Usage Habits Examined

The report first looks at consumption frequency among respondents, noting that 83% of qualified participants consumed cannabis at least monthly, with 40% consuming cannabis daily or almost daily. It also notes that 40% of the total sample said they are medical cannabis patients. 

Authors clarify that these figures are “likely no representative of the absolute prevalence of past-month cannabis consumption among past-year consumers in the state, not of medical cannabis participants in the broader cannabis consuming population,” stating that the RDCOS successfully oversampled frequent consumers to provide greater confidence in quantifying total demand.

The report notes that these patterns are consistent with other U.S. states, with individuals in the sample consuming flower and concentrates slightly less (11 days out of the month versus 12 days in the national sample for flower and five days versus six days in the national sample for concentrates). Edibles and vapes were consistent between Minnesota and national data, at seven and eight days out of the month, respectively.

The report also looked at alternative cannabinoid consumption, with more than 50% of the sample reporting the use of at least one alternative cannabinoid over the past month and 68% indicating use of alternative cannabinoids in the past. 

Delta-8 THC was the most popular for past-month use at 32% followed by CBD at 31%. More participants said they used CBD “before, but not in the past month” at 40%, though numbers still remained strong in this category for delta-8 at 33%.

A Closer Look at Obtaining Cannabis in Minnesota

Participants reportedly obtained 24.77 grams of cannabis within the past month across the entire sample, a slightly higher figure than the national average “suggesting a robust market for cannabis-related businesses,” the report says.

Most participants said they obtained cannabis from friends and family (67.6%), followed by adult-use dispensaries (61.3% — though the report notes this likely means lower-potency hemp-based edible retailers given that recreational cannabis dispensaries are not yet up and running). Dealers were the next largest source (53.4%) followed by medical dispensaries (42.7%).

Participants were most likely to report sourcing cannabis from a dealer more than once over the past month compared to the reported frequency of sourcing from other options, with 41% of those purchasing from a dealer reporting going two or more times in the past month. In contrast, 35% of those sourcing from adult-use dispensaries went two or more times, along with 26% of those utilizing medical dispensaries.

“Importantly, these data suggest an overall high prevalence of obtaining cannabis from a dealer, an illicit source, among Minnesota residents, which stands to reason as legal adult-use sources are not fully available,” the report notes.

About 25% of the sample also reported cultivating cannabis at home, with two cannabis plants on average per participant.

Looking Big Picture

Finally, the report looked at broader practices around cannabis consumption, finding that respondents on average traveled 18 minutes each way to purchase cannabis, similar to the national sample. 

Participants in the sample spent a median of $40 on cannabis within the past month, a slightly lower figure than respondents in states with similar adult-use cannabis laws from the national sample (a $75.50 median).

While the report notes that there will be “no less than 381 retail registrations” given the state’s population size, authors state that many local governments may look to have more retail registrations than the minimum so that number may very well be higher when the market finally finds its footing.

“It is impossible at this time to understand the necessary supply of cannabis vs. hemp needed to accommodate total demand without further research,” authors wrote. “Until the adult-use market is launched and sales for both types of outlets can be thoroughly assessed, estimates of adequate product supply and outlets for the adult-use program will likely be inaccurate.”

The full report is available here via KSTP-TV.

Over one-fifth of adults in America reported using hemp-derived cannabinoids such as cannabidiol (CBD) and delta-8 tetrahydrocannabinol (THC) in a survey of responses collected last summer. 

Researchers not only identified the extent of how popular hemp-derived products are, but emphasized that states that prohibit cannabis lead to a higher rate of delta-8 THC use—probably because that’s all people can get legally in those states.

The study, “Past-Year Use Prevalence of Cannabidiol, Cannabigerol, Cannabinol, and Δ8-Tetrahydrocannabinol Among US Adults,” was published Dec. 13 in the Journal of the American Medical Association (JAMA) and referenced data gathered in a 2019 Gallup poll.

According to the new findings, 25.2% of adults reported past-year use of any emerging hemp-derived cannabinoid, including delta-8 THC, CBD, cannabigerol (CBG), cannabinol (CBN), etc. Of those, 21% of adults said they had used CBD specifically. Other products derived from hemp had lower rates of use: 11.9% of the survey respondents reported using delta-8 THC, 5.2% reported using CBG, and 4.4% reported using CBN—one of the least significant cannabinoids. 

The study was written by doctors Adrianne R. Wilson-Poe, Tristin Smith, Michael R. Elliott, Daniel J. Kruger, and Kevin F. Boehnke. “We provide the first estimates, to our knowledge, of past-year use prevalence of CBN, Δ8-THC, and CBG in the US. A Gallup poll reported that 14% of US adults personally used CBD in 2019; our reported 21% use prevalence of CBD represents a 50% increase over the past 4 years,” researchers wrote. 

“Prevalence of past-year cannabis use was somewhat higher than in other studies but was similarly associated with younger age, and past-year cannabis use was also associated with using emerging cannabinoid products,” the report continues. “Higher Δ8-THC use in states without medical or adult-use cannabis laws suggests that cannabis prohibition may unintentionally promote Δ8-THC use. There are few controlled human studies with emerging cannabinoids, but surveys suggest these products are used for treating sleep or pain¹ and in place of other drugs, including pain medications.”

The researchers noted that hemp products are frequently psychoactive, and these are the main compounds they’re concerned with.

“Based on these results, we support ongoing public health surveillance efforts targeting emerging cannabinoids because of lack of industry standards to protect consumers and similar pharmacology or effects of Δ9-THC and its hemp-derived impairing analogues (eg, Δ8-THC), which may be of particular concern for adolescents and young adults,” the study reports. “Study limitations included not assessing emerging cannabinoid use patterns (eg, dose and use frequency) and possible sampling biases, although NORC implements probability-based recruitment best practices for their AmeriSpeak panel. Our results highlight the importance of future research to better understand perceptions of safety, motivations for use, and outcomes of use of these products.”

Researchers cautioned that the products are not regulated and could put patients at the risk of adverse effects from unknown contaminants. 

The 2018 Farm Bill legalized the cultivation and sale of hemp, and it created a legal loophole, allowing hemp-derived products that are now sold online and at smoke shops, gas stations, and other retailers. 

Medscape reports that the U.S. Food & Drug Administration (FDA) does not regulate hemp-derived products; therefore, no federal standards exist for testing ingredients for safety or verification of ingredients as listed on labels. 

“If someone is picking up one of these products to use medically, and it ends up having heavy metals and pesticides and it doesn’t even have the active ingredient in it, that is not good,” said Kevin F. Boehnke, PhD, a research assistant professor in the Department of Anesthesiology and the Chronic Pain and Fatigue Research Center at the University of Michigan in Ann Arbor. 

Prohibition Leads to Delta-8 Use

In states where medical cannabis is legal, residents had 56% lower odds of using delta-8 THC, whereas those in states where adult-use cannabis is legal had 55% lower odds of using delta-8 THC than those surveyed in states without legalization. 

The findings suggest “cannabis prohibition may unintentionally promote delta-8-THC use,” Boehnke and his colleagues wrote. 

Alice Kuo, MD, PhD, a pediatrician and professor of internal medicine and pediatrics at the David Geffen School of Medicine at the University of California in Los Angeles, told Medscape that she has seen a large increase in patients who say they use cannabinoid products, and believe them to be “natural.”

“My official response to patients who ask me for my opinion is that I don’t have enough scientific background to give an opinion: If you think it helps you and you have no side effects, then I’m not going to tell you to stop,” Kuo said. 

The FDA warns about delta-8 THC and similar products, which it says are products that have not been proven to be safe.

Colorado State University (CSU), Pueblo’s Institute of Cannabis Research (ICR) announced that it will fund $800,000 to cannabis research, split between six studies conducted by CSU and the University of Colorado (UC). The ICR is the official Cannabis Research Institute of Colorado, and as of 2019, funding comes from the Colorado Marijuana Tax Cash Fund.

The six studies include a variety of unique topics related to CBD and children with Autism Spectrum Disorder, the various effects of THC and its properties that may lead to addiction disorder, new ways to measure impairment for cannabis in roadside tests, and more.

According to an interview conducted by Westword with ICR director Chad Kelly, many more studies are already being conducted in Colorado. “There are a number of studies out there in which I’m very excited to see what the outcomes are. In many cases, I’m sure there will be additional research needed to carry it to the next level, but we’re really fortunate to be able to engage the best researchers throughout Colorado,” said Kelly.

Endocannabinoids in Children with Autism Spectrum Disorder and Changes with Cannabidiol (CBD) treatment

 Led by Dr. Nicole Tartaglia, who is also a professor at UC Anshutz Medical Campus, this study will explore how CBD shows promise as a treatment for behavioral difficulties in children with autism. “In this project we will compare levels of 14 different endocannabinoids and the primary enzymes that regulate them in autistic children 4-17 years of age from the CASCADE study to non-autistic children in the same age range,” an ICR study summary stated. “Further, we will study changes in the endocannabinoid system in autistic children after treatment with CBD, and also explore the endocannabinoid profile of autistic children who had a positive response to CBD treatment to help make better recommendations related to which autistic children might respond best to CBD treatment.”

Examination of the bi-directional interactions between phytocannabinoids and a human-associated gut microbiota

Co-led by Dr. Jessica Prenni and D. Tiffany Weir, this study will explore how phytocannabinoids interact with the human gut microbiome. “Successful completion of this project will generate fundamental knowledge around how phytocannabinoids modulate the gut microbiome and provide proof-of concept and preliminary data for exploring interindividual differences in phytocannabinoids metabolism that can be leveraged in future human clinical studies utilizing phytocannabinoids for reducing both intestinal and systemic inflammation,” the summary explained.

Investigation of polycyclic aromatic hydrocarbons resulting from vaped or dabbed cannabis/cannabis-derived products with known adverse health effects

The vitamin E acetate illness that occurred back in 2019 prompted many studies about the potential harms of vaping both cannabis or non-cannabis products. This study, led by Dr. Alison Pauer, will closely examine a toxicants called polycyclic aromatic hydrocarbons (PAH), which is classified as a carcinogen. Specifically, the study claims that terpenes can produce PAH when cannabis is heated up to very high temperatures. “Thus, PAHs are already a public health concern, and we will investigate the potential generation of PAHs from vaping or electronic dabbing of cannabis and cannabis-derived products, especially those with high terpene concentrations,” ICR explained.

Developing predictive models to distinguish alcohol use, cannabis use and co-use: an exploration of electroenceph-alography (EEG) metrics and traditional intoxication measures

Determining cannabis impairment in drivers is difficult because it can remain in a person’s system long after a person has consumed. This study, led by CSU professors Dr. Hollis Karoly and Dr. Patti Davies, will explore the efficacy of separately identifying impairment through cannabis or alcohol with roadside tests using elecrtroencephalography (EEG). “The goal of this study is to use EEG to differentiate alcohol and cannabis co-intoxication from single-substance intoxication and identify which of the aforementioned neurocognitive components are most strongly associated with alcohol, cannabis or co-use,” the summary stated.

Increasing the Analytical Testing Capability of Cannabinoids and Concomitant Phytomolecules in Cannabis-derived Plant Matrices

For a more plant-focused study, Dr. Williem Baurerle seeks to examine cannabis water use requirements and determine the most efficient way to increase nutrients and conserve water in the process. Developing best practices to improve and optimize nutrient and irrigation efficiency will provide small- to large-scale Cannabis producers with scientific knowledge to increase their input efficiency, reduce resource waste, and increase the sustainability of a horticulture industry critical to Colorado’s economic growth and prosperity,” ICR explained.

Identifying the neuronal cell-types responsible for the rewarding and aversive properties of THC

UC Boulder professor Dr. David Root seeks to find out about how THC offers “rewarding qualities” and claims that it can sometimes lead to addiction. “Our primary goal is to identify which neurons in the brain’s ‘reward center’, the ventral tegmental area, are affected by THC, how these neurons are physiologically altered by THC, and the necessity of these neurons for the rewarding or aversive properties of THC,” the study summary stated. 

In addition to these six newest studies, ICR has also funded five cannabis studies in 2023 and 10 in 2022 that are ongoing. The ICR started in 2015, and has completed 40 studies since 2018.