After months of research and negotiations, ISPA is disappointed to share The Venetian’s official statement restricting the advertising and selling of hemp-based products (i.e. CBD products) on their property. Knowing that such a ban would greatly impact an increasing number of ISPA members, ISPA undertook a firm stance of advocacy to defend this thriving trend in the industry. We will continue to balance this effort with the mutual commitment to helping ISPA resource partners adhere to The Venetian’s policies while still having the opportunity to attend and network with fellow industry professionals at the upcoming ISPA Conference & Expo.
Official Statement from The Venetian:
Pursuant to the 2018 Farm Bill, certain hemp with less than 0.3% THC is not illegal under U.S. Federal Law. The bill did not legalize CBD. CBD generally is still a Schedule I substance under the Controlled Substances Act (“CSA”). However, subject to the below, if a CBD product is hemp-based with less than 0.3% THC, such CBD product could fit within an exemption under the CSA.
To fit within the exemption mentioned above, a hemp-based product must be produced consistent with the bill, federal regulations, and applicable state regulations, and by a licensed grower. Hemp-based products that are not produced in this manner do not fit within the exemption and are still illegal under the CSA. Accordingly, only hemp-based CBD products that (a) were produced by a licensed grower consistent with the federal and state regulations and (b) contain less than 0.3% THC would fit within the exemption and would be legal under the CSA.
The U.S. Department of Agriculture (“USDA”) has not yet issued its regulations pursuant to the 2018 Farm Bill. Similarly, the Nevada Department of Agriculture (“NVDA”) has not yet issued its regulations pursuant to the 2019 Nevada legislation related to hemp-based products (SB 209 and SB 347) or created a plan as required to be submitted to the USDA pursuant to the 2018 Farm Bill. The USDA has stated that it intends to issue its regulations in fall 2019. The NVDA is expected to issue regulations and establish a plan within a similar timeframe.
In the meantime, parties are legally required to continue to operate subject to the limitations of the 2014 Farm Bill and any guidance thereunder, as stated by the USDA here. Based on the 2016 Statement issued jointly by the USDA, the DEA, and the FDA, hemp-based products may be sold in or among states with an agricultural pilot program for purposes of marketing research “but not for the purpose of general commercial activity.” Because hemp-based products cannot be sold for commercial purposes, we cannot allow hemp-based products to be sold or advertised for commercial purposes on property.
We understand that this is a continually evolving area and that there is some general confusion about what is legally permissible given the lack of enforcement and the overlap with state marijuana laws. At this time, we cannot allow hemp-based products to be sold or advertised for commercial purposes on property, as the 2016 Statement remains in full force and effect until the USDA issues its regulations. We continue to monitor this topic and will revisit it at the appropriate time.
If you have questions regarding The Venetian's policy or ISPA's direction moving forward, feel free to email ISPA President Lynne McNees at firstname.lastname@example.org or call her at 859.226.4260.