Tag: hemp

Texas House Approves Bill To Ban Consumable Hemp-Derived THC Products

The Texas House late Wednesday gave initial approval to a bill that would ban all products containing tetrahydrocannabinol, or THC, likely spelling the end for the state’s short-lived hemp industry.

Under the legislation, which is nearing the governor’s desk for approval, adults would face up to a year in jail for possessing hemp products with any amount of THC—a stricter penalty than what is on the books for possessing up to 2 ounces of marijuana.

The bill’s expected passage portends a minor earthquake for the state’s economy, effectively shuttering a field that, by one estimate, accounts for roughly 50,000 jobs and generates $8 billion in tax revenue annually.

THC products, now a ubiquitous presence at gas stations, convenience stores and thousands of other retailers across Texas, are now poised to be taken off the shelves. The about-face comes six years after the Legislature inadvertently touched off a massive boom in hemp-based products when lawmakers, intending to boost Texas agriculture, authorized the sale of consumable hemp.

Though that 2019 law does not allow products to contain more than trace amounts of delta-9 THC, it did not establish that same threshold for other hemp derivatives. Critics say the hemp industry has exploited that loophole to the tune of more than 8,000 retailers now selling THC-laced edibles, drinks, vapes and flower buds.

The vote ended months of suspense over how the House would handle competing calls to ban or regulate THC, the psychoactive element in marijuana.

This session, Lt. Gov. Dan Patrick (R), who oversees the Senate, has led the charge to eradicate the industry, which he accuses of preying on susceptible minors by setting up stores near schools and marketing products to children. The Senate passed legislation in March to ban all THC products, and the Republican leader threatened to force an overtime session of the Legislature if the House did not get on board.

“I’ve been here for 17 years at the Texas Capitol—10 years as your lieutenant governor. I’ve never been more passionate about anything,” Patrick said in a video posted on social media Monday evening. “I’m not gonna leave Austin until we get this done.”

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One Out Of Four Indian Tribes In The U.S. Is Now Involved In Marijuana Or Hemp Programs, New Map Shows

A new infographic from an advocacy group representing Native American tribes in the legal cannabis industry shows that more than a fourth of Indigenous communities in the continental United States are now involved with marijuana or hemp programs.

The map, created by the Indigenous Cannabis Industry Association (ICIA) in collaboration with the law firm Vicente, shows the locations of more than 100 tribal marijuana and hemp programs across the country.

Overall, approximately 26 percent of the 358 federally recognized Indigenous communities in the continental U.S. are now involved in some sort of cannabis program, the groups said.

The data, they said in a press release, “shows that the Indigenous cannabis industry is trending upward in terms of jobs, community development, and overall industry growth, with many Tribes currently scaling to meet demands for global cannabis distribution.”

“Since the first regulated Indigenous cannabis storefront opened almost 10 years ago in Washington State,” the groups said, “dozens of sovereign Indigenous communities have created their own unique regulatory systems to govern cannabis cultivation, production and sales.”

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Marijuana And Alcohol Businesses Should Join The Hemp Industry In The Fight For Regulation Instead Of Prohibition

In recent months, leading organizations and companies in the alcohol and marijuana space have jumped into the hemp sector, offering their support for clear federal legalization and robust oversight of hemp products.

The U.S. Hemp Roundtable, the hemp industry’s national advocacy organization, welcomes them—but asks them to join us in a framework that rejects prohibition, embraces regulation, prevents access by minors and protects retail and e-commerce for all elements of the diverse hemp industry.

Since the 2018 Farm Bill federally legalized hemp, it’s been a rollercoaster ride. After a brief gold rush, the Food and Drug Administration’s (FDA) refusal to regulate CBD led to a crash in prices and widespread disruption. But with a hemp industry as resilient as its stalk, innovators pioneered direct-to-consumer (DTC) sales and developed a new market for adult health and wellness products–including a hemp beverage boom which now meets growing demand for non-alcoholic options.

Today, the hemp extract market has surged to $28.4 billion, creating 328,000 agriculture and retail jobs, with a $13.2 billion employment impact and $1.5 billion generated in state tax revenues. Its popularity is not surprising—hemp products are made in the USA, harvested from crops grown by American farmers, manufactured by innovative U.S. entrepreneurs and sold by small businesses dotting the nation.

Competing interests have taken note of hemp’s success. A few marijuana multi-state operators (MSOs) have led efforts at the state and federal level to ban hemp products, and/or seek monopoly control over distribution. But the majority of marijuana advocates support regulation, not prohibition. In fact, many cannabis companies have found new life via hemp. We’re excited to join an emerging new effort to bring the entire cannabis family together in a united policy-making venture.

More recently, the alcohol industry is weighing in as hemp beverages have gained space on shelves previously reserved for liquor. Leading organizations such as the Wine & Spirits Wholesalers of America and the American Beverage Licensees have called for Congress and state legislators to explicitly legalize and regulate hemp beverages, which in 2024 boasted $380 million in revenues.

But warning clouds loom. In some states, efforts to regulate beverages include bans on other types of hemp products, such as edibles or CBD tinctures fully 85 percent of the hemp product marketplace). In others, there is a rush to ban DTC sales—a lifeline to hundreds of thousands of adult consumers.

Texas has emerged as a key battleground. In response to Lt. Gov. Dan Patrick’s (R) crusade to criminalize all hemp products, HB 28 was introduced as a hemp beverage carveout. Unfortunately, that bill would ban nearly all non-beverage hemp products, criminalize DTC and dramatically reduce the number of retailers who can sell these products.

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Alabama Governor Faces Contrasting Calls To Sign Or Veto Hemp Regulation Bill On Her Desk

A bill aimed at regulating consumable hemp products has landed on Gov. Kay Ivey’s (R) desk, but its future is uncertain.

HB 445, sponsored by Rep. Andy Whitt (R-Harvest), would establish regulations for consumable hemp products in Alabama, but the bill’s language and potential consequences have led the hemp industry to suggest the possibility of litigation and led to uncertainty among lawmakers, business owners, patients and lobbyists.

“It is my hope that the governor signs the bill this week. I think it’s a good piece of legislation. I think it’s a bipartisan piece of legislation, and certainly, we have to get the guardrails up on this industry,” Whitt said in a phone interview Tuesday.

Key provisions of the bill include:

  • Testing and labeling requirements for all consumable hemp products.
  • Caps of 10 milligrams per individually wrapped product, with a cap of 40 milligrams per package.
  • Authorization for the Alcoholic Beverage Control (ABC) Board to license retailers of these products.
  • Restrictions on retail establishments selling hemp products.
  • Prohibition of sales to minors.
  • Prohibition of smokable hemp products and restrictions on online sales and direct delivery.
  • Imposition of an excise tax on consumable hemp products.

The bill defines “consumable hemp product” broadly as any finished product intended for human or animal consumption that contains any part of the hemp plant or its derivatives, but explicitly bans smokable hemp products and certain psychoactive cannabinoids.

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Florida Lawmakers Again Failed To Regulate Hemp Products This Session

A year ago, members of Florida’s hemp industry were lobbying Gov. Ron DeSantis (R) to veto a bill regulating hemp-derived THC products that many claimed if signed into law would be a devastating blow to their livelihoods.

Their mission was accomplished when he did in fact veto the proposal last June.

That won’t be required this year; the Legislature failed to pass anything on hemp before unofficially ending the legislative session on Friday night (although they are expected to return to Tallahassee later this month to deal exclusively with budget-related matters).

The central problem appeared to be the substantive differences between the Senate bill sponsored by Polk County Republican Colleen Burton (SB 438) and the House version (HB 7027) sponsored by Panhandle Republican Michelle Salzman.

The two measures would have capped the potency of hemp-derived THC products, placed advertising restrictions, and required hemp to be tested by a certified medical cannabis laboratory. But there were some big differences: The Senate bill (like its 2024 version) called for the outright ban of synthetic cannabinoids like Delta-8 and said that the newly popular hemp-infused drinks could only be sold through a retailer holding a liquor license.

Salzman’s bill in the House did not ban Delta-8. Neither did it call for retailers to have a liquor license, but it did include a 15 percent excise tax on all hemp purchases. Jonathan Miller, general counsel for the U.S. Hemp Roundtable, said the House bill was better for his industry than the Senate’s version, and said he appreciated the work that Rep. Salzman devoted to trying to find the right balance.

“In its final form, we said that it wasn’t perfect, but it was a significant improvement on the Senate bill and so in the end nothing passing was better than the Senate bill passing,” Miller said. He’s “hopeful,” he said, that between now and next year’s legislative session “people will realize that the House version is the model to start working from and hopefully produce something that really both protects farmers and consumers at the same time.”

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Massachusetts Lawmakers Consider Bills To Set Tighter Controls On Intoxicating Hemp-Derived Products

Massachusetts legislators this session are looking to take hemp-derived intoxicating products—which contain the same active ingredient as marijuana but are not regulated the same way—off shelves in gas stations, convenience stores and vape shops across Massachusetts.

The hemp products, which are generally edible and intoxicating like gummies or candies, have already been declared illegal in the state by several state agencies but continue to pop up in certain stores outside of dispensaries. Most of these products come from out of state.

Some business owners who sell the intoxicating products argue that the state agencies haven’t settled the matter because hemp is legal federally—through a loophole in the 2018 federal Farm Bill which legalized hemp. Hemp and marijuana are the same plant, but this law removed hemp from the classification of marijuana as long as it contains less than 0.3 percent THC— the psychoactive ingredient in cannabis—by volume.

Four bills have been filed on Beacon Hill to bring any consumable hemp-derived products like edibles, concentrates, tinctures, oils and capsules, under the purview of the Cannabis Control Commission or give local boards of health oversight to remove these products from stores other than dispensaries. Hemp products that are sold in dispensaries like CBD gummies are already regulated by the commission. These bills would specifically target intoxicating products being sold outside of dispensaries.

“[Hemp products] face no additional tax impositions, no host community agreements, no recall process, no FDA testing requirements, no age limits,” said Rep. Dawne Shand, a Newburyport Democrat, at a Joint Committee on Cannabis Policy hearing on Wednesday. “The intoxicating hemp industry makes a mockery of cannabis laws.”

Shand, a member of the committee, is pushing a bill that would prohibit intoxicating hemp products from being sold without an endorsement from the Cannabis Control Commission.

Rep. Michael Soter, a Republican from Bellingham, has two bills that would address hemp-derived products.

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Nebraska Lawmakers Advance ‘De Facto Ban’ On Wide Range Of Consumable Hemp Products

A legislative proposal to crack down on “synthetic” consumable hemp or other THC products advanced Monday over some opponents’ preference for regulations and not a “de facto ban.”

Legislative Bill 316, from state Sen. Kathleen Kauth (R) of the Millard area, would redefine most “hemp” products to mean “marijuana,” putting them legally in line with existing enforcement and penalties. It advances a key priority of Nebraska Attorney General Mike Hilgers (R) to restrict products that exceed 0.3 percent tetrahydrocannabinol (THC) concentrations, the compound most commonly associated with getting a person high.

“These compounds are masquerading as hemp but are in fact dangerous synthetic chemicals that have never been tested for consumption in humans,” Kauth said during debate.

‘We need to do something’

The bill advanced 33-13, though at least two supporters—state Sens. Tom Brandt (R) of Plymouth and Ben Hansen (R) of Blair—said the bill would need to be amended to maintain their support and overcome the 33-vote threshold for a filibuster. Three more centrist Democratic lawmakers declined to take a position on the bill: state Sens. Eliot Bostar of Lincoln, Jason Prokop of Lincoln and Dan Quick of Grand Island.

Multiple opponents said they preferred the regulatory regime proposed in LB 16 by state Sen. John Cavanaugh (D) of Omaha, the lead opponent to Kauth’s bill. Cavanaugh’s bill would need to hitch a ride on a different bill, or “co-opt” LB 316. Cavanaugh filed more than a dozen amendments to LB 316 to try.

“I’m opposed to hijacking other people’s bills, but I put it on here because I think people in this body will agree that we need to do something,” Cavanaugh said.

Cavanaugh described the goal of attacking only “synthetic” products as a “red herring,” “misnomer” and “misdirection” in part because chemical “synthetic marijuana”—K-2 or “spice”—has already been banned for more than a decade. Kauth’s broader bill on hemp-derived products, he said, would cost more than $1.6 million, at least, in state tax revenue, at a time the state faces a major projected budget deficit.

However, he said his bill could generate $7.7 million with an improved regulatory system.

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Florida Bills To Regulate And Tax Hemp Products Advance To House Floor Votes

A measure that would regulate hemp-derived THC products in Florida passed unanimously in its second and final committee in the Florida House on Tuesday, but only after hemp entrepreneurs expressed their strongest criticism of such regulations this legislative session.

The bills (HB 7027 and HB 7029), sponsored by Panhandle Republican Rep. Michelle Salzman, are different in some respects to the Senate version that passed unanimously in that chamber two weeks ago—most significantly in that it puts a 15 percent excise tax on the sale of all such products.

Another difference with the Senate version is that it doesn’t ban consumption of delta-8, the hemp-derived THC product that has grown in popularity since hemp was legalized in the United States through the 2018 U.S. Farm Bill.

The House bill would limit the amount of THC in derived products. Regarding hemp-infused drinks, beverages cannot contain more than 5 milligrams of THC hemp per 6-ounce contains. The bill limits “inhalables” (such as joints and vaping machines) and edibles to 5 milligrams per serving (an increase of 2.5 milligrams from last week’s version).

Another provision would prohibit anyone from receiving more than 100 milligrams of hemp-derived THC in a single 24-hour period.

The bill would prohibit any individual from ingesting hemp consumable THC products within 1,000 feet of a public or private elementary, middle or secondary school between 6 a.m. and midnight. A violator would be subjected to a $25 fine or 50 hours of community service.

Salzman amended her bill from last week in two key respects: It would now allow places like gas stations to sell hemp-infused THC drinks, and it would not place any limitations on non-intoxicating CBD products.

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Hemp Farmers Say Texas Bill To Rein In Intoxicating Cannabinoid Products Could Destroy State Industry

Andrew Hill, who studied and farmed hemp in California before it was legal in Texas, was a keynote speaker at the state’s first-ever agricultural hemp expo in Dallas in 2019. Amid considerable hype and excitement that followed the recent federal legalization of hemp, Hill tried to warn farmers that the industry wasn’t as profitable as state officials and seed vendors were pitching.

“There were guys running around telling farmers they could make $2,500 to $3,000 an acre on hemp. Being an actual farmer, not trying to sell seeds or clones, I couldn’t help but burst out laughing,” Hill said. “Everyone looked at me and asked what was so funny, and they gave me the mic and I said, ‘Ladies and gentlemen, I’ll tell you right now—I haven’t seen over $1,000 an acre since 2015.’”

Still, Texas lawmakers embraced the opportunity hemp presented in 2019, legalizing hemp products of the cannabis plant with less than 0.3 percent THC, the psychoactive component in marijuana. Hill’s Texas Star Hemp Farms was among those to make the investment necessary to profit from hemp, including owning almost all the means of production and sales and spending millions on seeds, licenses and facilities.

Six years after that initial rush, industrial hemp farming in Texas stands on the brink. Senate Bill 3, which would ban any consumable hemp products that contain even trace amounts of THC, could destroy what farmers like Hill have built.

“Now, considering things like hemp hearts, hemp seed oils, salad dressings and those health products that don’t have any cannabinoids in them to get you high, [they] will still be illegal under this law,” Hill said.

Hill is one of about 450 licensed hemp producers in the Texas Industrial Hemp Program at risk of losing a chunk of their livelihoods as Texas lawmakers have prioritized banning tetrahydrocannabinol, or THC, products. Farmers say there is no way they can produce hemp without traces of THC, even for non-consumable products like clothing and paper, meaning SB 3 could deliver a death blow to the industry.

The GOP-controlled Legislature authorized the sale of consumable hemp a year after it was legalized nationwide to boost Texas agriculture by allowing the commercialization of hemp containing trace amounts of delta-9 THC.

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Florida House Committee Approves Hemp Regulatory Bill That Would Impose 15% Tax On All THC Products

All hemp-derived THC products would be taxed at 15 percent under a proposal passed in a Florida House committee on Wednesday.

The measure is one of two regarding regulation of hemp-derived THC products sponsored by Panhandle Republican Rep. Michelle Salzman that were approved unanimously in the House Budget Committee.

The main bill (HB 7027) is a companion to a Senate bill (SB 438) that has already passed unanimously in that chamber, although they do contain significant differences. Among them is that Salzman’s bill would not ban delta-8, the hemp-derived THC product that has grown in popularity since hemp was legalized in the United States through the 2018 U.S. Farm Bill.

Like its Senate companion, the House bill limits the amount of delta-9 THC in hemp-derived products such as beverages and gummies. It says edibles must contain no more than 2 milligrams, be individually wrapped and be sold in containers with no more than 20 edibles.

That raised objections from Patrick Shatzer of Sunmed/Your CBD Store, who says his company is the largest CBD brick-and-mortar business in the country, with 260 locations nationwide and 42 in Florida.

“The size of the gummies—limited to 2 grams—that’s just a tiny little pinkie size wide,” he said to the committee. “That’s not the industry standard. The industry standard is anywhere from 5 to 8 grams.”

Shatzer also objected to the provision limiting 20 servings per container, saying the average dietary supplements permit 30 gummies in a container. And he raised objections to a prohibition on selling, delivering, bartering, giving or furnishing hemp consumables that total more than 100 milligrams of THC to a person in a 24-hour period, saying it would be unenforceable.

Rep. Salzman replied that, while she is open to changing some of those limits, she is holding firm on limiting personal consumption of such products to 100 milligrams of THC a day.

“If somebody knows that they can’t buy more than 100 milligrams in that day, it’s going to give them a warning subconsciously, ‘Maybe I shouldn’t have more than 100 milligrams of this stuff in a day,’” she said. “And if you want more than 100 milligrams of this stuff a day, you probably need to get a medical cannabis card.”

Regarding the proposed 15 percent excise tax on hemp products, Jodi James of the Florida Cannabis Action Network said that not all hemp products are intoxicating, and that those that aren’t should not be taxed at all.

“In the state of Florida, we don’t tax vitamins, we don’t tax supplements,” she said.

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