DEA Reschedules Epidolex, Not All CBD Drugs
In a major shift in federal policy, the DEA announced that it has rescheduled Epidolex, a CBD based anti-seizure drug with less than .1% THC content. The DEA moved the drug from Schedule I to Schedule V. This is the first time ever a cannabis based drug has been rescheduled. The DEA based this decision on the FDA’s approval of the drug. Now that a CBD product has been shown to have accepted medical use, CBD no longer fits the requirement that Schedule I drugs have no such use. Many think this will lead to the rescheduling of CBD entirely. An internal report by the FDA says they are willing to take it farther and deschedule CBD all together. Until then, CBD manufacturers should not expect rescheduling unless their specific product has received FDA approval.
Other CBD Products Are Still Schedule I
The Brookings institute previously published a detailed report explaining why CBD is not legal in all 50 states. It comes down to this, CBD products contain trace amounts of THC and any amount of THC makes it Schedule I. The DEA made an exception to this rule when it approved Epidolex allowing up to .1% THC. Not much, but better than nothing. However this is not the only reason CBD is Schedule I. Under the Controlled Substances Act (CSA) cannabis includes every cannabinoid, not just THC. So CBD itself is Schedule I and prohibited by the federal government. What if the CBD is derived from legal hemp plants and not flowering cannabis plants? First off, CBD derived from hemp is not considered medical grade by many experts. Second, it does not matter the source of the CBD. Just the fact that it is CBD makes it Schedule I. Third, under the Controlled Substances Act the DEA has the authority to both set and interpret the Schedules. If the DEA says CBD is Schedule I, it is Schedule I. Why are CBD products on the shelves at Walmart, advertised in national magazines, and manufactured by mainstream companies? Because they don’t know the law or they don’t care. Maybe they didn’t talk to a lawyer, and if they did, maybe were they not given accurate advice. Maybe they were thoroughly warned and decided to take a gamble because being prosecuted would never happen to them. Can you afford a DEA seizure, raid, or arrest? If not, then you should think twice about entering the CBD market.
Watch Out For State Laws
A caution for CBD producers in legal states like California. CBD is often classified as a cannabis product that requires a state license. In California, the Department of Public Health (CDPH) regulates cannabis manufacturing including CBD extracts. According to them, manufacturing CBD products from hemp requires a state industrial hemp license. These licenses have not been developed yet and are not currently available. Therefore the CDPH license is the only one available to hemp-based CBD manufacturers. This is a lot of trouble to go through for a hemp-based CBD company. In states like California, CBD manufacturers may be better off obtaining a CDPH cannabis license and producing whole flower extracts than ignoring state law and taking the hemp-based CBD gamble.