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House Reintroduces SAFE Banking Act To Normalize Cannabis Commerce

In a letter to several members of the House Financial Services Committee today, the American Bankers Association expressed support for the SAFE Banking Act of 2021, which would provide a safe harbor for depository institutions seeking to serve legitimate cannabis-related businesses in states where such activity is legal.

On Thursday, The United States House of Representatives reintroduced a critical cannabis banking bill. Ed Perlmutter (D-CO), Steve Stivers (R-OH), Nydia Velazquez (D-NY), and Warren Davidson (R-OH) brought the SAFE banking act back to the House along with the support of over 100 additional cosponsors. The bill, which is expected to effortlessly advance, previously passed the house in 2019 and 2020 but was squashed by the Republican-controlled senate. However, now that Democrats control both the White House and Senate, the bill has a real chance of passing.

What Is The SAFE Banking Act? The Secure and Fair Enforcement (SAFE) Banking Act would allow legitimate cannabis businesses acting within the confines of the law access to the same banking services as other companies. Currently, despite the industry generating millions of dollars in tax revenue, cannabis entrepreneurs are seen more like criminals in the in the eyes of major financial institutions. Not only are cannabis operations effectively barred from traditional lending, but it’s also nearly impossible for these businesses to legally open a bank account. As a result, dispensaries and other cannabis businesses are obligated to deal primarily in cash-only transactions, making them prime targets for criminals. According to Representative Perlmutter, “Thousands of employees and businesses across this country have been forced to deal in piles of cash for far too long. It is the responsibility of Congress to step up and take action to align federal and state laws for the safety of our constituents and communities.” The bill remains largely the same as it was in 2019 and 2020, but with added language that explicitly includes hemp and hemp-derived CBD related businesses, which still struggle in accessing financial services despite the legalization of hemp in the 2018 Farm Bill. The current version of the bill has been updated slightly to include minor technical changes to the safe harbor, strengthened hemp provisions, and other technical updates.

The SAFE Banking Act’s Path Forward In 2019, The SAFE Banking Act was introduced as a stand-alone bill. Despite overwhelmingly passing the House, it would never see the Senate floor. A year later, House Democrats attempted to embed the bill in part of their larger Coronavirus relief package, pointing out the inherent dangers of operating an “essential business” in a cash-only capacity during the height of a catastrophic pandemic.

After considerable criticism from Republicans, the House eventually dropped the SAFE Banking Act from the relief bill’s final draft. Perlmutter harkened back to this subject in his Thursday address, saying, “In many states, the industry was deemed essential yet forced to continue to operate in all cash, adding a significant public health risk for businesses and their workers. As we begin our economic recovery, allowing cannabis businesses to access the banking system would also mean an influx of cash into the economy and the opportunity to create good-paying jobs.”

The Senate is expected to introduce its own version of the bill this week. For the last two years, this is where the SAFE Banking Act has predominantly run into challenges. However, this time around, the Senate has a more favorable makeup—split 50-50 between Republicans and Democrats, with Vice President Kamala Harris acting as the tiebreaker. Perlmutter remains optimistic the bill will make it all the way to President Biden’s desk. He said, “I think this is going to get a full legislative review, and we’re going to get a good product, a good piece of legislation, and send it to the White House.”

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Department of Agriculture (USDA) Establishment of a Domestic Hemp Production Program – Final Rule

AGENCY: Agricultural Marketing Service, Department of Agriculture (USDA).

ACTION: Final rule.

 

Department of Agriculture (USDA)

 

SUMMARY: This final rule supersedes the interim final rule that established the Domestic Hemp Production Program, as mandated by the Agriculture Improvement Act of 2018 (2018 Farm Bill).

This rule includes regulations used by the Department of Agriculture (USDA) to approve plans submitted by States and Indian Tribes for the domestic production of hemp. This rule also includes regulations on the Federal hemp production plan for producers in States or territories of Indian Tribes that do not have their own USDA-approved plans. The program provides requirements for maintaining records about the land where hemp is produced, testing the levels of total delta-9 tetrahydrocannabinol, disposing of non-compliant plants, licensing hemp producers, and ensuring compliance under the new program.

DATES: This rule is effective March 22, 2021.

FOR FURTHER INFORMATION CONTACT: Bill Richmond, Branch Chief, U.S. Domestic Hemp Production Program, Specialty Crops Program, AMS, USDA; 1400 Independence Ave. SW, Stop 0237, Washington, DC, 20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: William.Richmond@usda.gov.

 

SUPPLEMENTARY INFORMATION: This rule is issued under the authority of section 10113 of the 2018 Farm Bill (Pub. L. 115-334; December 20, 2018), which amended the Agricultural Marketing Act of 1946, as previously amended (7 U.S.C. 1621 et seq.) (AMA), by adding Subtitle G (sections 297A through 297E). Section 297B of the AMA requires the Secretary of Agriculture (Secretary) to evaluate and approve or disapprove State or Tribal plans regulating the production of hemp. Section 297C of the AMA requires the Secretary to establish a Federal plan for producers in States and territories of Indian Tribes not covered by plans approved under section 297B. Section 297D of the AMA requires the Secretary to promulgate regulations and guidelines relating to the production of hemp under sections 297B and 297C in consultation with the U.S. Attorney General. AMS issued an interim final rule (IFR) on October 31, 2019 (84 FR 58522), and began its initial implementation of the program.

To date, USDA has approved approximately 45 State and Tribal hemp plans. However, not all of the States and Tribes have implemented their plans for various reasons, including the need to take additional steps to complete State legislative or rulemaking processes or to establish the regulatory scheme as well as the extension of the 2014 Farm Bill Program.

Thus, as of November 2020, twenty States and nine Tribes have submitted reports on their respective programs. Based on the reports submitted by States and Tribes in 2020, producers have planted 6,166 acres under the 2018 Farm Bill hemp plans, of which approximately 730 acres were subject to disposal. As of the effective date of this final rule, the interim final rule is superseded. This final rule replaces the IFR at 7 CFR part 990, effective March 22, 2021.

The Agricultural Marketing Service (AMS), which has been delegated authority to administer the U.S. Domestic Hemp Production Program, provided multiple opportunities for public comment. AMS accepted comments during an initial comment period from October 31, 2019, through December 31, 2019. This initial comment period was extended for an additional 30 days on December 18, 2019 (84 FR 69295), ending January 29, 2020. AMS reopened the comment period for 30 additional days on September 8, 2020 (85 FR 55363), ending October 8, 2020.

A total of approximately 5,900 comments were received during all comment periods from States; Indian Tribes; industry and agricultural organizations; private citizens; members of Congress, the scientific community; agencies; and individuals involved in the growing, processing, transporting and marketing of hemp.

For More Information on USDA Hemp Provisions and Definitions –

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Hempy St. Patrick’s Day from Inspirational Technologies

Inspirational Technologies wishes everyone a “Hempy” St Patrick’s Day.

The Inspirational Technologies Language Dictionary defines “Hempy” as an adjective meaning “having joyful interactions with others at a socially acceptable distance, from one another”.

 

 

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Industrial Hemp Advisory Council of Florida Department of Agriculture and Consumer Services – Announce Telephone Conference

Greetings All!

Florida Hemp -Florida Department of Agriculture and Consumer Services Established . 2019

The Florida Department of Agriculture and Consumer Services announces a telephone conference call to which all persons are invited.

DATE AND TIMEApril 1, 2021, 3:00 p.m.

PLACE: Call in: 850-391-8548, Access Code: 968 930 131#

GENERAL SUBJECT MATTER TO BE CONSIDERED: This is a meeting of the Industrial Hemp Advisory Council to conduct general business.

For more information, you may contact: cannabis@fdacs.gov

Agenda

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CBD -You’re Guidebook to Growing Home Hemp 2021

With everyone on social isolation, businesses shutdown, and some mild uncertainty in the cannabis/hemp industry, what better time than now to work on your green thumb and start your own home-grow?

Growing Hemp during Staying Home Guide


Indoor or Outdoor? Now that the US has given us a guide on Hemp (see our post on the USDA) effective March 22, 2021. For those who would like to try their hand at Hemp, remember now we should follow the instruction of law. Aside from that, what is a good process to get going? 

The very first thing you’ll need to do is decide if you want to grow your plants inside or outside.

Of course, indoor grown CBD flowers will be of superior quality, but it takes more work and a larger initial investment.

Choosing to grow inside also depends largely on if you have enough space to pull it off. A nice sized closet would work, where you can hook up some lights and the plants will have enough room to grow both in height and width, but be mindful of your electric use outside the growroom, as your utility bills will go up significantly.

If you plan to grow outside, you’ll want to get familiar with your gardening zone, this will help you determine when to plant your crop for best results. Gardening zones in the United States are listed as 1-9, with 1 being the coldest and 9 being the hottest. Typically, somewhere between zones 6 and 8 will be optimal, but you can grow quite a bit in zone 9 if you have an adequate watering source.

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Some areas might not be suitable for growing CBD Flowers outside at all, so bear that in mind when doing your research. Another option that’s becoming increasing popular is growing CBD hemp flowers in a greenhouse. Greenhouses replicate the atmosphere of an indoor grow, to an extent, and will save you a lot of money in energy costs. They allow for year-round cultivation in a climate controlled environment where you can regulate the sunlight exposure as you wish.

If I were to choose an option, I’d personally go with the greenhouse.

Once you’ve settled on where you want to grow your plants, you’ll need to get everything set up. That starts with deciding what strain/s you want to grow. Cultivation methods for CBD hemp flowers can vary depending on the strain you’re growing. Do you want a regular strain or an autoflowering strain? Indica, sativa, or hybrid?

Any specific strains you like better than others? Let’s take a quick look at how each of these options might impact your grow-op or your final product.

Picking a Strain

We’ll start with regular strains vs autoflowering. With CBD flower plants, there are 2 main stages of the growing cycle: the vegetative stage and the flowering stage. The transition from one stage to the next requires changes in the plant’s light cycle. When growing outside, you’ll need to make sure you plant in the correct season, so your plants go into the vegetative stage when time “springs forward”.

If you’re growing inside, you’ll need different colored light bulbs to replicate the changes. With autoflowering strains, well, they switch to the flowering stage automatically without any assistance from external light sources.

These strains are typically more user-friendly and would be ideal for the novice grower, but generally speaking, the quality of the buds is not quite as good as with regular strains.  The next step is to pick an actual strain.

You’ll need to decide if you want indica, sativa, or hybrid – although let’s be honest, these days, nearly all strains are hybrids; but more on that another time. Also, do you want a specific CBD hemp flower strain or are you O.K. with something random and new? This is the easy part since it really all boils down to personal preference.

For the record, a few easy to grow strains are Blue Dream, Green Crack, and Harlequin.

Getting Set Up Seeds or Clones? Seeds have more options but much more difficult. Clones are easier to grow but can be harder to find and sketchy to transport depending on where you live.

 

If you choose to start from seed, the first thing you will need to do is get your plant sprouted. If you’re buying good quality seeds from a trusted seedbank, you can go ahead and put the seeds straight into the soil and let them do their thing.

 

If you receive some seeds and want to test their viability before putting planting them directly, you can germinate the seed by putting in a damp paper towel, in a warm place with indirect sunlight.

I use a window where there is an overhang from the roof. Direct sunlight is often too strong for germinating seeds and even for young, barely sprouted plants.

Now when it comes to actual growing equipment, that will vary based on the growing method you choose (indoor, outdoor, soil, hydro, aeroponic, etc.), or the climate you live in if you choose to grow outdoors. 

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That said, here are a few basic items you will likely need no matter where or how you plan on growing: Growing tent (with built in ventilation system) Lights (with different color and wattage bulbs to for the flower stage)

 

 

Soil, coco coir, or another planting medium, Filtration fixtures 

Timers, Thermometer, Hydrometer  Pots and other basic gardening tools 

You can get all of these items for about $500 to $750, again, depending on your geographic location as well as what exactly you need.

If you’re growing inside, you’ll need to account for the higher utility bills as well.

This all might sound a bit pricey, but keep in mind, this is just the initial investment.

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In the long run, you will save money not having to buy flower and you will have much more control over the final product. After getting the initial items together, we are now ready to move forward and find that seed that will satisfy the government regulations and your foot in the soil. 

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