As mentioned above, CBD is no longer considered a Schedule I controlled substance under the Farm Act. However, under the DEA’s definition, it remains on the list. This allows for individual states to create exceptions to the status of CBD, even when cultivated from hemp plants grown legally under the act. It also maintains illegal status for any CBD sourced from plants produced in settings that are not consistent with that Act, or by an unlicensed grower. It is expected that more clarification on the status of CBD will come early this year (2019).
And now, onto the thorny issue of legality. The simple answer to the question is yes — if it is extracted from hemp. The 2014 Farm Bill established guidelines for growing hemp in the U.S. legally. This so-called “industrial hemp” refers to both hemp and hemp products which come from cannabis plants with less than 0.3 percent THC and are grown by a state-licensed farmer.
The passing of SB 218 through the Kentucky legislature created a new subsection of KRS 260.850m to 260.289, in which the Industrial Hemp Advisory Board outlines the purpose of an industrial hemp research program, establish license provisions, and create new requirements and license application procedures. This state’s approach is for the potential medical and industrial applications. 
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