Interdependent Partner Network
What matters most in creating and sustaining business success, is building and strengthening interdependent links amongst an ecosystem. At Kase Farma we realize the importance of an interdependent partner network and focus on developing an ecosystem comprised of subject matter experts in broad acre farming from Canada and volatile extraction from the United States. Building and leveraging this ecosystem was needed to generate, develop and deliver an agricultural and pharmacological based hemp derived cannabinoid operation, and was ultimately the defining factor in its success. With the source of market differentiation shifting from innovative technology to the partner network, Kase Farma understands how to build and play their ecosystem.
Hemp Derived CBD Regulatory Compliance
The 2018 Farm Bill changed federal policy regarding industrial hemp, including the removal of hemp from the Controlled Substances Act and the consideration of hemp as an agricultural product. The Bill legalized hemp under certain restrictions and expanded the definition of industrial hemp from the last 2014 Farm Bill. The Bill also allows states and Native American tribes to submit a plan and apply for primary regulatory authority over the production of hemp in their state or in their tribal territory.
Previously, the 2014 Farm Bill defined industrial hemp and allowed for state departments of agriculture or universities to grow and produce hemp as part of research or pilot programs. Specifically, the law allowed universities and state departments of agriculture to grow or cultivate industrial hemp if:
“(1) The industrial hemp is grown or cultivated for purposes of research conducted under an agricultural pilot program or other agricultural or academic research; and
(2) The growing or cultivating of industrial hemp is allowed under the laws of the state in which such institution of higher education or state department of agriculture is located and such research occurs.”
The U.S. Department of Agriculture, in consultation with the U.S. Drug Enforcement Agency (DEA) and the U.S. Food and Drug Administration, released a Statement of Principles on Industrial Hemp in the Federal Register on Aug 12, 2016, on the applicable activities related to hemp in the 2014 Farm Bill.
- Hemp cannot contain more than 0.3 percent THC, per section 10113 of the Farm Bill. Any cannabis plant that contains more than 0.3 percent THC would be considered non-hemp cannabis under federal law and would thus face no legal protection under this new legislation;
- Under section 10113 of the Farm Bill, state departments of agriculture must consult with the state’s governor and chief law enforcement officer to devise a plan that must be submitted to the Secretary of USDA. A state’s plan to license and regulate hemp can only commence once the Secretary of USDA approves that state’s plan. In states opting not to devise a hemp regulatory program, USDA will construct a regulatory program under which hemp cultivators in those states must apply for licenses and comply with a federally-run program.
- The law outlines actions that are considered violations of federal hemp law which includes such activities as cultivating without a license or producing cannabis with more than 0.3 percent THC.
Cannabis in California is legal for both medical and recreational use. In recent decades, the U.S. State of California has been at the forefront of reform efforts of the legality of cannabis in the United States, beginning in 1972 with the state's first ballot initiative attempting to legalize cannabis. Although Proposition 19 was unsuccessful, California would later become the first state to legalize medical cannabis with the passage of the Compassionate Use Act of 1996 (Proposition 215). In November 2016, California voters approved the Adult Use of Marijuana Act (Proposition 64) to legalize the recreational use of cannabis.
A bill to regulate CBD in California and allow for California companies to legally produce and sell CBD products, including food and beverages, has passed the California Assembly and is being considered by the Senate. AB 228 would also create as much needed regulatory framework for CBD products within California. The Bill, authored by Ceclia Aguiar-Curry would explicitly permit the sale of hemp-derived CBD in foods, beverages and cosmetics.
California State Current Regulations
The California Department of Public Health (CDPH) adopted regulations for cannabis on January 16, 2019, the conclusion of a six-month rule making process that modified and made permanent the provisions of the emergency regulations. These regulations implement the mandates of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and outline the statewide standards and licensing requirements for commercial cannabis manufacturing and packaging and labeling of both cannabis and cannabis products.
The Farm Bill Act was the key piece of legislation that changed the legal status of hemp in the United States. In January 2019, the Office of Administrative Law (OAL) officially approved state regulations for cannabis businesses across the supply chain. These regulations provide licensing and enforcement criteria for commercial cannabis businesses in California, including distributors, retailers, microbusinesses, temporary cannabis events, and testing laboratories. Kase Farma is proud to be a fully compliant and licensed state cannabis business holding both a Type 7 Volatile Extraction License for manufacturing both adult and medicinal cannabis products as well as an Adult-Use and Medicinal-Distributor License with the State of California.
Kase Farma, An Industry Leader
Kase Farma is an industry leader driven by quality, integrity and innovation, managed by a world-class team of experts. Kase Farma currently operates out of a 22,000 sq. ft. manufacturing facility and is currently implementing a scaled-up, high through put extraction strategy utilizing IPGrow hemp-based cannabinoid plant within the existing facility. Kase Farma is licensed to operate in the areas of cultivation, extraction and distribution in the State of California, and is world renowned for its products that have been shown to assist with the reduction of certain medical conditions.