can you leagally grow marijuana for cbd oil

Is Hemp The Same Thing As Marijuana?

There’s been a lot of discussion about hemp recently, since the 2018 Farm Bill made it legal for farmers to grow industrial hemp for the first time since the passage of the 1970 Controlled Substances Act (or, practically speaking, since the 1937 Marihuana Tax Act).

There are still quite a few restrictions and regulations associated with growing hemp, but the fact that hemp is now legal – while marijuana is not – has raised a lot of questions.

NC State’s College of Agriculture and Life Sciences, and NC State Extension, are engaged in a variety of research and educational programs related to hemp. That puts us in a position to help answer some of the most common hemp questions.

What’s the difference between hemp and marijuana?

Hemp and marijuana are, taxonomically speaking, the same plant; they are different names for the same genus (Cannabis) and species.

“Hemp and marijuana even look and smell the same,” says Tom Melton, deputy director of NC State Extension. “The difference is that hemp plants contain no more than 0.3 percent (by dry weight) of THC (tetrahydrocannabinol), the psychoactive substance found in marijuana. By comparison, marijuana typically contains 5 to 20 percent THC. You can’t get high on hemp.”

In other words, Cannabis plants with 0.3 percent or less of THC are hemp. Cannabis plants with more than 0.3 percent THC are marijuana.

Is it now legal to grow hemp in North Carolina?

It is legal to grow hemp, but you must be licensed.

In North Carolina, licenses must be approved by the state’s Industrial Hemp Commission, which is affiliated with the N.C. Department of Agriculture & Consumer Services. Licensed growers must abide by stringent regulations, including tests to ensure that the THC levels in any hemp remain at or below the limit of 0.3 percent.

Why is there interest in growing hemp?

In short, the answer is that farmers grow things for which there is a market – and there appears to be a market for industrial hemp.

“Many see industrial hemp as a rapidly growing industry and a way to replace losses in acreage or value in other commodities,” Melton says.

What are some benefits and uses of hemp?

Industrial hemp has many potential uses. Hemp fibers can be used in textiles or industrial processes. Hemp can also be used for grain, and the flowers are often used as a source for cannabidiol, a hemp extract also known as CBD.

“Ninety-five percent of North Carolina hemp crops are grown for their flowers,” Melton says. “CBD is widely acclaimed for use in addressing many aches, pains and mental disorders. However, there is little data supporting many of the claims.”

And the regulatory requirements related to CBD can be confusing.

Is growing hemp for CBD legal?

“Growing hemp for its flowers was already legal, prior to the 2018 Farm Bill, under the 2014 Farm Bill,” Melton says. “The 2014 Farm Bill allowed states to have Industrial Hemp Pilot Research Programs, under which any part of the hemp plant could be produced by a licensed grower.

“Prior to the 2018 Farm Bill, extraction of CBD from the flower would have been considered illegal by the U.S. Drug Enforcement Administration (DEA). The laws pertaining to CBD were, and are, complicated and not mutually agreed upon even by states or cannabis lawyers,” Melton says.

“However, it is clear that, even prior to the 2018 Farm Bill, North Carolina was producing hemp flowers legally by licensed growers. The 2018 Farm Bill effectively moved oversight from the DEA to the U.S. Department of Agriculture for hemp and all its derivatives and extracts. At the same time, the law removed CBD that is produced by licensed growers of industrial hemp from the controlled substance list. The USDA has not developed its program yet – the Farm Bill was only signed in December 2018 – so we are still operating our NC Pilot program and licensing farmers under that.”

According to a Feb. 8 announcement from the N.C. Department of Agriculture & Consumer Services, CBD is considered a drug by the U.S. Food and Drug Administration and cannot legally be added to food or animal feed that is for sale – nor can companies make health claims about products containing CBD.

Note: NC State has a wide array of resources for growers and others with questions about industrial hemp. You can access all of those resources on the Industrial Hemp page of NC State Extension.

New York legalized recreational marijuana. Here’s how much you can now possess

ALBANY – New York has become the 15th state to legalize marijuana for recreational use, immediately allowing anyone over the age of 21 to possess up to three ounces even though legal sales remain at least a year off.

Gov. Andrew Cuomo signed the Marijuana Taxation and Regulation Act into law Wednesday afternoon, a day after the state Legislature approved it by a wide margin.

The new law will create a new Office of Cannabis Management to set up regulations and licensing for cannabis growers, processers and sellers, even paving the way for lounge-like stores where people can use marijuana products on site.

“This is a historic day in New York — one that rights the wrongs of the past by putting an end to harsh prison sentences, embraces an industry that will grow the Empire State’s economy, and prioritizes marginalized communities so those that have suffered the most will be the first to reap the benefits,” Cuomo said in a statement.

Here’s what just became legal, and what remains a ways off:

How much weed are you allowed to possess in NY?

Effective immediately, it is legal for anyone 21 or older to possess up to three ounces of cannabis in New York — at home or in public.

If you have a concentrated form of cannabis (like an oil), you can legally possess up to 24 grams, according to the new law.

More specifically, the law allows those 21 and older to possess, obtain, purchase, or transport cannabis up to three ounces.

But selling it remains off limits for the time being, putting the state in something of a gray area: It’s legal to buy and possess up to three ounces of marijuana, but it’s still illegal (for now) to sell it.

“At this point, if you are just possessing it or if you’re buying it, those aren’t crimes anymore unless it’s over the legal amounts,” said Emma Goodman, staff attorney for the Legal Aid Society’s special litigation unit.

Eventually, it will be legal to possess up to five pounds of marijuana at your private residence. (More on that in a bit.)

When will dispensaries open in NY?

In theory, legal marijuana sales at licensed dispensaries and on-site consumption spaces can’t begin until April 1, 2022, at the absolute earliest.

In practice, it will likely be longer than that.

The law’s tax structure — a 13% tax on retail sales, plus a per-flower and potency tax on distributor-to-retail sales — doesn’t take effect until April 1, 2022. That means, in theory, sales could start then.

But there are many things that have to happen before then.

The governor and legislative leaders need to make appointments to a state board that will oversee the Office of Cannabis Management. The governor has to pick an executive director of the office.

The office will have to come up with a host of regulations that will guide the licensing of growers, distributors and sellers. Then the state will have to go through the licensing process. Growers will have to grow; dispensaries will have to be set up.

When all that happens? Then legal sales can start. It will take some time.

Can I smoke weed in NY now? Where?

The new marijuana law equates cannabis products to smoking and vaping tobacco under the Clean Indoor Air Act, which limits where smoking can and can’t occur.

That means, for the most part, you can smoke marijuana anywhere you can legally smoke cigarettes.

But there are some significant exceptions.

The new law says you cannot use cannabis products while inside your personal vehicle, unlike cigarettes. Nor can you use marijuana in a dedicated smoking area of a restaurant, bar or any other food service establishment, including on their outdoor patio.

You can’t use marijuana at a cigar bar, according to the new law. Nor can you at tobacco shops or e-cigarette stores.

Smoking of any sort remains prohibited at a variety of indoor and public locations under the Clean Indoor Air Act, including places of employment, bars, indoor and most outdoor areas of restaurants, public transportation, school grounds and general hospitals, among other places.

Also, marijuana remains illegal on the federal property. If you’re caught possessing cannabis on federal property or transporting it over state lines, you could face penalties.

Can I grow marijuana in NY at my home? How much?

Eventually, you will be able to grow cannabis at your home. But it will be quite a while before it’s allowed.

Under the law, each New York resident age 21 and older can grow up to three mature and three immature plants at their home or on their property, up to six mature and six immature plants per household.

But home grow won’t be allowed for certified medical marijuana patients until the state issues regulations for it, no later than six months from now. And for all other growers, it won’t be allowed until no later than 18 months after the first legal marijuana sales take place in New York.

So if you’re not a certified patient in the state’s medical marijuana, you won’t be able to start growing until late 2023 at the absolute earliest — and possibly into 2024 or even 2025.

Once the home grow provisions take effect, New York residents will be able to keep up to five pounds of marijuana in their home legally — though they will still only be allowed up to three ounces outside their home.

Jon Campbell is the New York State Team editor for the USA TODAY Network. He can be reached at [email protected] or on Twitter at @JonCampbellGAN.

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Can you leagally grow marijuana for cbd oil

No, except that providers licensed under the Montana Medical Marijuana Program may sell marijuana and marijuana products to registered cardholders in the program.

An individual cardholder may possess up to 1 ounce of marijuana (or the equivalent in concentrates or edibles), and may purchase up to 5 ounces per month, but may not distribute it to other people.

Is adult-use marijuana possession and use legal in Montana?

As of January 1, 2021, adults 21 and over may possess and use up to one ounce of marijuana with no criminal penalties.

However, marijuana consumption and possession (including medical marijuana) remains prohibited in public and certain other locations. It is also prohibited under federal law on all federal lands and waters.

Marijuana (except medical marijuana) is prohibited in hospitals and other health care facilities.

Operating a motor vehicle under the influence of marijuana remains illegal.

Contact your local law enforcement agency for more information.

When will adult-use sales begin in Montana?

Certain medical marijuana licensees will be allowed to also sell adult-use marijuana starting on January 1, 2022.

Is it legal for individuals in Montana to grow their own marijuana?

Adults may cultivate up to two mature marijuana plants and two seedlings for private use in a private residence, subject to certain restrictions. (Medical marijuana cardholders may cultivate up to four mature plants and four seedlings). The plants may not be visible to the public.

Is growing hemp permitted in Montana?

Yes. Hemp growers are licensed by the Montana Department of Agriculture.

Cannabis Sales and Licensing FAQ

Will adult-use marijuana be available for sale in all Montana counties on January 1, 2022?

No. In counties where the majority of voters supported Initiative 190 in November 2020, adult-use sales may occur starting in January 2022. In counties where the majority of voters opposed Initiative 190, adult-use marijuana sales will remain prohibited.

What types of adult-use marijuana licenses will be available?

In addition to continuing the Montana Medical Marijuana Program, the Department of Revenue will issue separate licenses for marijuana cultivators, manufacturers, dispensaries, transporters, and testing laboratories.

The Department will offer 13 different cultivation or “canopy” licenses for cultivation facilities of different sizes.

A worker permit will also be required for any employee participating in any part of a marijuana business.

Can anyone apply for a license to grow or sell recreational marijuana, or manufacture recreational marijuana products?

No. From January 1, 2022, until July 1, 2023, only Montana medical marijuana licensees who were licensed on November 3, 2020 (or had an application pending with DPHHS on that date) may be issued a license for cultivation, manufacture, or sale of adult-use marijuana.

Will there be limits on the THC content in adult-use marijuana products?

When licensees are able to operate, edible adult-use marijuana products may contain up to 10 mg of THC per serving, and up to 100 mg of THC in an entire package.

The total psychoactive THC of marijuana flower may not exceed 35%.

Topical products may contain no more than 6% THC and no more than 800 mg of THC per package.

A marijuana product sold as a capsule, transdermal patch or suppository, may contain more than 100 mg of THC, and no more than 800 mg of THC in an entire package.

These limits do not apply to sales by licensed medical marijuana providers to medical marijuana cardholders.

Will medical marijuana and recreational marijuana be available at the same business?

Yes. A licensed recreational marijuana provider and licensed medical marijuana dispensary may operate in a shared location. A single entity may also be licensed for both medical and recreational marijuana.

Are there adult-use marijuana licenses available for tribes?

Yes. The Department of Revenue may issue a total of eight combined-use licenses (for cultivation and sale), one to each of the eight federally recognized Indian tribes located in Montana (or to a business that is majority-owned by the tribe). Those licensees may operate within 150 air miles of the exterior boundaries of the reservation or tribal service area, if all other licensing conditions are met and they are located in a county that allows recreational marijuana licensees.

How can I get more information on licensing for adult-use marijuana cultivation, sales, transportation, manufacture, or laboratory testing?

The Department of Revenue is currently evaluating what rules and processes are necessary about these topics.

Will marijuana licensees be permitted to sell their licenses the way alcohol licensees may sell their licenses to buyers approved by the Department?

No. The marijuana licenses may not be transferred.

Will a cannabis provider need an Alternative Nicotine or Vapor Products License?

You must have an Alternative Nicotine or Vapor Products Retail license if you sell alternative nicotine or related products, including:

  • E-cigarettes
  • Vapor Devices or Mods
  • Accessories
  • Liquid or e-juice

The license has a $20 annual fee. You may apply for a new license or renew an existing license using the eStop Business Licenses Service.

You need an alternative nicotine license even if you have a tobacco retailer license.

Who do I contact for additional information about applying for or managing an Alternative Nicotine or Vapor Products Retail License?

If you have questions or concerns about any Tobacco Product License or Alternative Nicotine or Vapor Product License, please call (406) 444-4351 or email [email protected]

Local and County Cannabis Regulation FAQ

What counties approved Initiative 190, and which counties did not?

The counties currently allowing recreational are outlined on the map. The current status of each county was determined by the results of Initiative 190 or from a local election held since HB-701 was passed by the Montanan Legislature.

  • Counties in red have no recreational adult-use cannabis sales.
  • Counties in green allow recreational adult-sue cannabis sales.
  • Counties in blue have opted to include the local option sales tax on cannabis sales.

For more information, please see Cannabis Tax.

Could a county change its position on marijuana businesses operating in its locality?

Yes. In a county where the majority of voters opposed Initiative 190, adult-use sales will be allowed if that county holds an election and a majority of the voters choose to allow marijuana businesses to operate in that jurisdiction.

In a county where the majority of voters supported Initiative 190, certain marijuana businesses could be prohibited if that county holds a local election and a majority of the voters choose to prohibit that type of business from operating.

When can a county expect their local option marijuana excise tax distribution?

Local option marijuana excise tax distributions will be made 60 days after the quarter ending due date to ensure tax moneys have been fully received and reconciled.

Period Ending Distribution Date
March 31 June 15
June 30 September 15
September 30 December 15
December 31 March 15

Cannabis Tax FAQ

What will the tax be on recreational marijuana?

Recreational marijuana will be taxed at 20% of retail sales.

Medical marijuana will continue to be taxed at 4% of retail sales.

Local jurisdictions may add an additional tax of up to 3%.

Can I claim a reduction on my cannabis tax return for using higher value products or superior production techniques?

No, the law does not provide for exemptions or reductions of cannabis tax for cost of goods sold.

Will I be taxed on bad debt sales (sales deemed uncollectible)?

Yes. The cannabis tax is calculated on the marijuana provider’s gross sales.

If I am a registered cardholder that cultivates my own product, am I subject to cannabis taxation?

No, the dispensaries are the responsible party for collecting and remitting the tax. If you only cultivate for personal use this is not taxable, being a licensed provider for additional cardholders is a taxable relationship.

What is included as a "sale" for the cannabis tax? Do I pay the tax on products I give away?

All gross sales of marijuana and marijuana infused products are taxable.

The tax is on the gross retail price, which is the established price for which a marijuana product is sold to a purchaser before any discount or reduction.

“Sale” or “sell” means any transfer of marijuana products for consideration, exchange, barter, gift, offer for sale, or distribution in any manner or by any means. This includes marijuana and marijuana infused products.

Am I required to file a cannabis tax return if I have no sales for the quarter?

Yes. You must still submit a tax return through the TransAction Portal (TAP) for zero dollar returns.

What is taxed if I sell marijuana infused products? Can I separate the ingredients on the receipt and only tax the value of the marijuana included in the product?

The entire gross sale amount for the marijuana-infused end-product is subject to the tax.

Can I reduce the price for aged cannabis products?

Yes, if you change your price and that price is offered to all customers, that is the new established retail price.

The established retail price and any changes to that price should be documented and maintained in your records.

Can I offer a reduced price for bulk purchases of cannabis products?

Yes. If the new price is offered to all customers, it becomes the new established price.

If I offer product on credit, when is the tax reported?

Tax is due on the retail price of the products at the end of the quarter in which the product is received by the consumer.

How do I calculate the tax on discounts to individual cannabis customers?

The tax will be applied on the established retail price for the product. Discounts for a group or individual do not change the established retail price.

Products priced below the established price for a select demographic is considered a reduction price, tax must be applied to the established retail price.

As a Cannabis provider, do I need an Alternative Nicotine or Vapor Products Retail License?

You must have the Alternative Nicotine or Vapor Products Retail license if you sell alternative nicotine products, including:

  • E-cigarettes
  • Vapor devices or mods
  • Accessories
  • Liquid or e-juice

This license has a $20 annual fee. You may apply for a new license or renew an existing license using the eStop Business Licenses Service.

You need an alternative nicotine license even if you have a tobacco retailer license.

If I have questions or need additional information about applying or managing my Alternative Nicotine or Vapor Products Retail license, who do I contact?

If you have questions or concerns about any Tobacco Product License or Alternative Nicotine or Vapor Product License, please call (406) 444-4351 or email [email protected]

Cannabis Wage Withholding FAQ

As a cannabis provider, how do I register for a wage withholding account?

You can register your wage withholding account electronically through TransAction Portal (TAP) or by using the Montana Department of Revenue Business Registration (Form GenReg).

As a cannabis provider, do I need an Employer Identification Number (EIN) to issue W-2s?

Yes, you cannot issue W-2s to an employee using your Social Security Number (SSN). If you do not currently have an EIN, you can easily apply for one here.

As a cannabis provider, can I compensate my employee(s) with room and board or any other type of non-cash payments?

As defined in 39-51-201, Montana Code Annotated, “Wages means all remuneration payable for personal services, including the cash value of all remuneration payable in any medium other than cash. The reasonable cash value of remuneration payable in any medium other than cash must be estimated and determined pursuant to rules prescribed by the department.” So, if you pay with livestock, living quarters, material goods or other non-cash payments, you must report their market value as wages on a form W-2.

As a cannabis provider, will I be considered and agricultural grower/employer?

No, cannabis is not recognized as an agricultural crop in Montana.

As a cannabis provider, can I give my employees a 1099 NEC (Nonemployee Compensation) to report wages earned?

No, employee wages and withholding must be reported on the federal form W-2.

As a cannabis provider, when can I report compensation earned on a 1099 NEC?

Compensation reported on a 1099 NEC should only be given to those individuals or entities that are established and engaged in a business of their own. UI law defines an independent contractor as “an individual working under an independent contractor exemption certificate provided for in 39-71-417, MCA”. If you have paid or contemplate paying someone as an independent contractor, the individual should have an independent contractor exemption certificate. You should ask for a copy of that and retain it for your records.

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