Industrial Hemp Products and Marijuana Licenses

Friends,

The MED issued a compliance tip for hemp producers and marijuana licensees that explains how to sell, manufacture, and test industrial hemp products in Colorado’s regulated marijuana marketplace. Both retail and medical marijuana stores can now sell industrial hemp products. MED and Colorado Department of Public Health and Environment (“CDPHE”) regulations govern what hemp products a marijuana store can sell, as well as manufacturing and testing requirements for hemp products.

MED’s rules define “Industrial hemp product” as “a finished product containing Industrial Hemp that is a cosmetic, food, food additive, or herb; is for human use or consumption; contains any part of the hemp plant, including naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins, or derivatives; and contains a delta-9 tetrahydrocannabinol concentration of no more than three-tenths of one percent.”

Beginning July 1, 2020, all industrial hemp products sold in a marijuana store or used as ingredients in marijuana infused products must pass all required testing for potency, microbial contaminant, residual solvent contaminants, and metals contaminants.

For Sale of Industrial Hemp Products in Marijuana Stores:

• Marijuana stores cannot sell unprocessed hemp plants or smokable hemp flower.

• Marijuana stores may only sell industrial hemp products which were produced in a facility licensed by the CDPHE as a manufactured food and storage facility.

• Marijuana stores do not need to use METRC to track industrial hemp products.

• There are no quantity or sales limitations for sales of industrial hemp products in marijuana stores.

For Marijuana Products Manufacturers:

• Beginning July 1, 2020, MIPS can only use industrial hemp product as an ingredient if it was received from a CDPHE registered facility and has passed all required testing.

• MIPs cannot process industrial hemp plant material that was not previously processed at a CDPHE registered facility.

For Marijuana Testing Facilities:

• Medical and retail marijuana testing facilities may only accept industrial hemp product for testing if the product is from a CDPHE registered facility.

• Testing facilities must enter industrial hemp products into METRC.

• METRC has provided a support bulletin regarding handling of industrial hemp products in METRC.

• Testing facilities must track and report industrial hemp products the same way as required for marijuana products.

For CDPHE Registrants:

• CDPHE registrants must take test samples of industrial hemp products in accordance with MED’s rules for marijuana product sampling, MED rule 4-110.

• CDPHE registrants do not need any MED license or METRC records in order to produce or submit industrial hemp products for sampling.

McAllister Garfield represents marijuana stores, CDPHE-registered industrial hemp products facilities, and marijuana testing facilities, and handles all related regulatory matters with the MED and CDPHE. If you have any questions about regulations concerning industrial hemp products and your CDPHE or marijuana licenses, contact McAllister Garfield today.

Regards,

McAllister Garfield Team