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Due Diligence

Our mission at Hidden Lake is to make hemp-based products more widely available. But we also know that laws and regulations regarding cannabis products can be difficult to understand in the ever-changing legal and very bureaucratic environment of the United States Legislature. CBD is becoming one of the 21st centuries fastest growing industries with an expected $20 billion incoming to the market by the summer of 2019. Facing that type of growth means that the rules of the industry will be evolving very quickly. We strongly advise our customers to research and understand the rules and regulations regarding hemp and hemp-based products from the federal regulations down to local county laws. After knowing your pertinent legal information we recommend you proceed with caution as you shop at Hidden Lake.

What is Industrial Hemp?

The term “industrial hemp” means the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3% on a dry weight basis. Hemp has practical purposes across several industries including print, clothing, skincare and other nutraceuticals, biofuels and plastics. Just about the only thing Hemp can’t do is get people “high.” Given its common genus with Marijuana people often think hemp has similarly intoxicating effects to Marijuana. However, the two differ most in their cannabinoid makeup and are grown and bred with very different intentions from each other.

Federal vs. State

Legislatures For starters: Click here for a list of industrial hemp regulations by state. Each state has their own way of handling hemp farmers, and legalization of hemp as a diverse, industrial resource. Some states require more oversight from their respective governmental bodies while others you will find to be more laissez faire. While the states are independently learning to embrace the hemp as a versatile utility, the American federal government still closely associates hemp to Marijuana and therefore applies its schedule-1 priority from the DEA to hemp.

duotone hemp plants

Hemp Facts

  • A member of the cannabis family containing less than 0.3% THC
  • Hemp is sustainable crop farmed for its flowers, leaves, and stalks
  • It has been utilized by the paper, clothing, and nutraceuticals industries as an essential component to new products
  • Because of its strength, hemp fiber can be used for composite materials that could be used to make anything from skateboard decks to car and stealth fighter bodies.
  • Hemp ≠ Marijuana 

What are cannabinoids?

Cannabinoids are any compounds found in cannabis which bind to receptors in human cells. The two most common Cannabinoids are cannabidiol (CBD) and the aforementioned THC; the psychoactive compound found in Marijuana, still a schedule-1 drug. While in any given strain of cannabis there can be more than 80 other cannabinoids, it’s all eyes on THC and CBD these days. CBD is a cannabinoid which does not feature the psycho-active component of THC but has (mostly anecdotally) offered relief throughout the body and mind.

Is CBD Schedule 1?

The Controlled Substances Act of 1970, signed and enacted by Richard Nixon, details a Schedule 1 classification as the following: (1) SCHEDULE I.— (A) The drug or other substance has a high potential for abuse. (B) The drug or other substance has no currently accepted medical use in treatment in the United States. (C) There is a lack of accepted safety for use of the drug or other substance under medical supervision. Currently, under these laws, we do see Marijuana and Hemp listed as a schedule 1 contender but products containing <0.3% THC have been outlined in other documents to be acceptable for research and implementation through state departments of agriculture.


This spelling of the word “Marijuana” is an American tradition originally defined in the “Marihuana Tax Act of 1937.” The definition is as follows: The term “Marihuana” means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin. Such term does not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination.

The 2014 Farm Bill

The Agricultural Act of 2014 began to outline some ways business and researchers could begin to more widely finding uses, and utilizing hemp across the country. It gave us the definition of Industrial Hemp and a platform to begin work under agricultural pilot programs. The main purpose of this bill was to initiate regulate market tests of industrial hemp amongst responsible industry participants.

The 2018 Farm Bill

Congress is set to sign another farm bill by the end of the fall of 2018. If passed this will serve as the legalization of hemp as a crop. Schools and state agriculture departments have had four years to work on technical and market research and hemp will be back on American shelves for the first time in 50 years. 


Industrial Hemp: The plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

Sec.7606 of the 2014 Farm Bill

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