As the hemp industry continues to evolve, business owners must stay informed about legal trends to ensure their operations remain compliant and competitive. Our latest coverage touches recent developments in Texas, Louisiana, and Georgia, and provides a preview of potential changes in the federal Farm Bill. We’ll highlight the implications of these trends for your business and offer actionable steps to help you navigate the shifting landscape.
Ronny D Saves Hemp!
Florida Governor Vetoes SB 1698
In a surprising move, Governor Ron DeSantis has vetoed Senate Bill 1698, which would have imposed strict regulations on hemp-derived products, citing concerns about the impact on small businesses. This veto ensures the continued sale of popular hemp products without new restrictions. However, before we go singing the governor’s praises, insiders have suggested that the move was a strategic effort to gain support from the hemp industry to help defeat the marijuana legalization initiative on the November ballot. The veto follows a strong lobbying campaign by the Florida hemp industry, showcasing the power of advocacy and the importance of industry support in legislative matters.
Federal Rescheduling and the Farm Bill Preview
Rescheduling of Marijuana
President Biden’s announcement to reschedule marijuana from Schedule I to Schedule III is a landmark decision. This change acknowledges marijuana’s medical value and lower abuse potential, potentially easing federal restrictions and expanding research opportunities.
Farm Bill Reauthorization:
The upcoming reauthorization of the Farm Bill poses potential threats to the hemp industry. Stay tuned for updates and be prepared to advocate for industry-friendly provisions.
Georgia: New Licensing and Compliance Requirements
Georgia’s Hemp Farming Act, Senate Bill 494, introduces both clarity and challenges for hemp business owners. The good news is the products are now age-restricted, but there are several causes for concern as well.
Key Points:
THC Definition Expanded: Includes total THCA language, making some products illegal.
Licensing Fees: Sliding scale fees based on business size, from $250 to $4,000.
Felon Ban: Licenses denied for applicants with certain drug-related felonies in the past ten years.
Operational Changes:
Product Compliance: Ensure all products meet the new THC definitions.
Obtain Licenses: Navigate the licensing process and budget for associated fees.
Advocate for Change: Push for more inclusive policies regarding licensing bans.
State Trends & Highlights
Texas
The Texas hemp industry is at a crossroads, with business owners pushing for fairer regulations to ensure long-term stability, while Lt. Gov. Dan Patrick is calling for stricter controls or a potential ban on THC-containing hemp products. This would severely impact businesses reliant on low-THC products, and as we have seen, prohibition of these products only sends consumers online to purchase them from out-of-state suppliers. At the end of the day, it’s business owners that are impacted most by blanket bans that don’t appeal to sensible regulations.
Current Situation:
- Over 7,700 active hemp dispensaries in Texas as of early 2024.
- Potential regulatory changes could drastically limit product offerings and impact business models.
Action Steps:
- Collaborate with Industry Organizations: The Texas Hemp Council has been at the forefront of the fight against unfair state regulations.
- Diversify Product Offerings: Consider expanding your product line to include non-THC hemp products to mitigate potential regulatory impacts.
Louisiana
In a significant victory for the hemp industry, Louisiana lawmakers rejected a push to ban THC-infused products. Instead, they established a regulatory framework to control this fast-growing state market, currently valued at $33 million.
Key Developments:
- House Bill 952: Passed with regulations including age restrictions and 5mg per serving limits for hemp-derived THC products.
- Senate Bill 237: Rejected, which would have banned THC products altogether.
New Restrictions:
- THC-infused beverages are now banned in bars and restaurants. Protectionist moves by the alcohol industry? At the expense of those trying to enjoy a more sober lifestyle? We’ll let you decide.
Implications for Business Owners:
- Continued Operations: Businesses can continue selling THC-infused products with new regulations… unless you have a liquor license.
- Product Adjustments: Adapt to new serving size limits and age restrictions to remain compliant.
- Advocacy: Engage with lawmakers to ensure future regulations support the industry’s growth.
Call to Action: Stay Vigilant!
The hemp industry is facing significant legal changes at both state and federal levels. For business owners, staying informed, advocating for fair regulations, and maintaining high standards of product quality are crucial. Engage with your state representatives, join industry organizations, and adapt your business strategies to navigate this evolving landscape successfully. Most importantly, keep following along with our articles to stay up to date!
