Hemp entrepreneurs object as regulation of THC products moves to full House

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

The bills (HB 7027, 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% 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 container. The bill limits “inhalables” (such as joints and vaping machines) and edibles to 5 milligrams per serving (an increase of 2.5 mg from last week’s version).

Another provision would prohibit anyone from receiving more than 100 mg 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 subject 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.

Three-year attempt

This is the third year in a row lawmakers have spent considerable time and energy attempting to regulate intoxicating hemp-derived THC products, which have grown in popularity since the state legalized the product in 2019.

Regulations passed during last year’s Session but were vetoed by Gov. Ron DeSantis after heavy lobbying by members of the hemp industry. As a way to show their appreciation, a number of hemp entrepreneurs sent funds to the Republican Party of Florida and other groups organized to oppose Amendment 3, the constitutional amendment that, if passed, would have legalized recreational cannabis for all adults 21 and over.

For whatever reason, many of those same hemp entrepreneurs who regularly testified in opposition to those proposals filed in the 2023 and 2024 Legislative Sessions have been absent from the public debate as the bills have moved through their respective chambers this spring. But that détente ended on Tuesday, as people who work in the hemp industry testified before the House Commerce Committee that the proposal would severely affect their bottom lines.

JJ Coombs, who operates three hemp businesses based out of Fort Lauderdale, said a problem with the House legislation is that it would put the same limits on the amount of THC in both edibles and inhalables.

“They are completely different products,’ he said. “Edibles are consumed in a single serving while inhalables are consumed over a period of time, often going weeks without having to purchase another device.”

Patrick Shatzer of Sunmed/Your CBD Store summarized the letter accompanying DeSantis’ veto; the Governor wrote that that bill would “impose debilitating regulatory burdens on small businesses and almost certainly fail to achieve its purposes.”

“The intent is to stop intoxicating (elements) and to stop bad actors,” Shatzer said. “These laws are not going to allow the good actors to operate.”

Lobbyists for alcohol interests expressed disappointment that the legislation does not allow for individuals to drink hemp-infused THC beverages at the establishment where they buy such products. Scott Difford, with Delta Beverages, said his products are sold in more than 570 restaurants and bars in Florida, and he asked Salzman to amend the bill to allow for on-premises consumption by adults 21 and over.

Salzman insisted that provision was important, citing the absence of any mechanism to test for intoxication by such products.

Second Amendment angle

A couple of hemp business officials tried a new argument — that its limitations on THC in hemp-infused products would compel military veterans to sign up as a medical marijuana patient in Florida.

That, they said, would violate their Second Amendment rights because federal law classifies marijuana as a Schedule I controlled substance, causing complications for medical marijuana patients who want to own firearms. (Former Agriculture Commissioner Nikki Fried lost a federal lawsuit in 2022 challenging federal prohibitions on medical-marijuana patients buying and possessing guns).

J.J. McCormick, Chair of American Healthy Alternatives Association, described a conversation he had with a military veteran who uses hemp-derived THC products.

“He said as someone who held clearances and often had to be nimble in their employment, both stateside and overseas, he would never get a medical marijuana license because he would be forced to lie and perjure himself on background checks to obtain firearms and sign contracts,” he said.

“This is a one-two punch that displaces thousands of Florida families,” added Shai Ortiz, CEO of Siesta G, based in eastern Hillsborough County. “This stifles innovation. This stifles Florida-first values.”

The regulations passed unanimously in committee, however, and now go to the floor for a vote — where they will have to be reconciled with the Senate version to get to DeSantis’ desk this year.

“This is a commonsense bill built on collaboration,” Salzman said, resulting in a measure that is unified around a single goal: “protecting Floridians while preserving opportunities.”

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Mitch Perry reporting. Florida Phoenix is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Florida Phoenix maintains editorial independence. Contact Editor Michael Moline for questions: [email protected].