Part II – Lobbying

► Since the implementation of the 2018 “Farm Bill” legalizing “hemp”, hemp
derived products have been flooding the market in the United-States.

Hemp like products like CBD are very high in demand especially in the medical and
nutritional field since CBD has health benefits.

SMC Laboratories has a particular interest in creating a regulatory environment for

the CBD business which maximizes profits.

Although the 2018 Farm Bill legalized hemp at the Federal level (which can now be
cultivated in US soil), state laws dictate the legality of what type of CBD product
people can use and which is prohibited (the law is different from state to state).

► Pharma is the most active and powerful opponent of legalized medical cannabis
and CBD.

The Pharma drug businesses are attempting to protect their money profits by
blocking fair competition from much safer and much cheaper medical marijuana
(Studies show that legalizing medical pot, and making it available in dispensaries,
reduces by 15-35% admissions for prescription opioid abuse and opioid overdose
deaths).

Its subversive activities against SMC Laboratories as well as the entire CBD
industry : sponsoring friendly anti-CBD researchers; funding friendly anti-CBD
organizations; lobbying government agencies; paying off politicians; and mounting
public relations campaigns.

► For SMC Laboratories, creating transparency about the relationships between

the CBD industry, related industries, and policymakers is essential to ensure
appropriate regulation of CBD products.

A. Identify the regulatory environment (Federal / State) regarding the various

CBD products

Which laws and regulations are relevant ?

At the federal level, the Agriculture Improvement Act of 2018 (the 2018 “Farm Bill”)
- signed into law on Dec. 20, 2018

At the state level, the 2018 Farm Bill explicitly preserved FDA’s authority to regulate
products containing cannabis or cannabis-derived compounds under the FD&C Act

How could SMC Laboratories optimize the current regulatory environment in order
to maximize profits ?
Identify facilitators and barriers to the CBD regulation implementation process :
– facilitators : the influence of state and federal congruence; increased
transparency; consideration of stakeholder concerns
– barriers : the influence of religiosity; lack of communication between
researchers and policymakers

B. Identify the decision makers – executive and legislative

Identify the key players and opponents - within and outside of the CBD
business

Federal government
Food and Drug Administration (“FDA”)
Courts of Justice
State legislators (senators) and governors
Pharmacy and Therapeutics Committees (“P & T Committees”)
Pro and Con lobbying groups (competitors within the CBD industry and opponents
from other big industries, such as Pharma)

Define a lobbying strategy to fight back against the subversive activities of

competitors and opponents :

Fight against political opposition based on ideological grounds and the over-
estimation of risk.

Show how the CBD business is a much more effective and safer competitor than
the Pharma industry.

Which lobbying avenues (administrative, legislative, campaign, judicial, political) do

you consider taking ?

Which tools (petition, legislative proposal, legal challenge, PR campaign...etc) do

you recommend ?

Petitions and PR campaigns – shaping the public opinion

Legislative and political lobbying, at the Federal level and within each State