The Evolving CBD Market – A Letter From The Editor
As I write this letter, HB 2334 is sitting on Inslee’s desk after passing both the Washington House and Senate. By the time you receive this publication, this bill will likely be law impacting the growing CBD market.
(The bill was signed by Inslee on 3/21/18 and goes into effect on June 19th, 90 days post adjournment – see House Bill 2334 below for more detailed info)
The core of HB 2334 focuses on the use of CBD as an additive for 502 companies, paving the way for non-licensed companies to produce this commodity (CBD Isolate) and a pathway for 502 processors to legally bring safe product into WA with added traceability.
The bill is controversial for a few reasons:
First, the Washington hemp program is less developed than competing states like Colorado, Kentucky and Oregon. This will result in spurring the already established importation of CBD.
Second, the bill also undercuts the value of CBD processing material due to the difference in regulatory and production costs for Hemp, which is regulated by the Department of Agriculture.
Third, there is controversy surrounding those licensees who have been using CBD isolate: LCB officers had not been prioritizing enforcement of CBD additive, however with this bill passing this is sure to change. This reminds me of when the Seattle PD turned a blind eye to delivery Cannabis in the gap between legal marijuana laws passing, and retail stores opening.
What should you do to prepare?
If you are holding onto CBD material intended for processing, you run the risk of a major pricing collapse.
A kilo of Hemp derived CBD isolate (1000 grams), testing at 99% is available on the market for between $7 and $8 / gram (current market price). If you are using CBD in your cartridges, topicals and/or edibles, you will be competing against companies who use isolate to lower their cost of production. Consider working on formulations now and securing your supply in preparing for this change. Finding a good supply for this material is convoluted and please be wary of “Isolate Brokers” – there are lots of empty promises that are plaguing this market.
*See the Actual House Bill 2334
*Learn more on the Progression of HB 2334