Latest news with #HB7027
Yahoo
07-05-2025
- Business
- Yahoo
Florida hemp industry wins another reprieve from regulations this year
A Tallahassee hemp store. (Photo by Mitch Perry/ Florida Phoenix) A year ago, members of Florida's hemp industry were lobbying Gov. Ron DeSantis 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 (they are expected to return to Tallahassee later this month to deal exclusively with budget-related matters). State Sen. Colleen Burton via Florida Senate Rep. Michelle Salzman via Florida House 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% 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.' 'Honestly afraid' Carlos Hermida, who owns two hemp shops in the Tampa Bay area, says the Senate's ban on synthetic cannibinoids like Delta-8 and Delta-10 would have eliminated most hemp products from his establishments. 'I was honestly afraid that we would have to close down,' he said last week when it became evident there would be no bill this year. 'Of course it will be good for my bottom line. I can still sell drinks, I can sell the products that my customers need, and I can still advertise.' A new element in this discussion from a year ago has been the emergence of hemp-derived THC beverages being sold throughout the state. Burton's proposal would have required sales only at locations licensed to sell alcoholic beverages. Both bills limited the amount of THC in such drinks (5 milligrams per container in the Senate, 10 milligrams per container in the House), while the House bill would have banned consumption of such drinks on the retailer's premises. Those restrictions might work for establishments like ABC Fine Wine & Spirits, a major liquor retail chain, said Michael Smith, co-owner of Herban Flow in St. Petersburg. But it wouldn't work for his two stores, which feature a large selection of THC-infused drinks. 'With [Florida] being such a tourism/hospitality state, these bars are trying to develop server menus and other type of non-alcoholic menus for people to partake and join out with their friends, and the House bill would have taken away on-site consumption completely,' he said. 'Losing that ability to go out there and sell at festivals and farmers markets, that would have significantly hurt us.' During the final committee stop in the House, Rep. Salzman said she was resolute in keeping that provision in her bill, saying that there are no mechanisms to test for intoxication from those THC-infused drinks. 'This stuff has got to be regulated' With Congress largely silent on the issue, it has been up to the states to regulate hemp-derived THC products since the U.S. Farm Bill legalized hemp in 2018. While roughly half the states in the nation have placed some regulations on such products (and some, such as Idaho, have banned the product outright), Florida continues to struggle with such measures. That's a problem, says Ellen Snelling, of the Hillsborough County Anti-Drug Alliance. 'I'm extremely disappointed,' says said, noting that House Speaker Daniel Perez had convened a special workgroup that met for three days during the first week of the session to learn more about the hemp business from those in the industry. 'I thought, 'This is great. This is going to work this year,'' she recounted. Then Snelling saw the disparate House and Senate bill versions posted. 'As time went on, it just seemed like they weren't going to come to a consensus and be able to get it done. But both bills had some positive things in it, and I just wish there was some way that they have gotten together and gotten a bill passed, because it's past time, because this stuff has got to be regulated.' Florida is not the only state that failed to come up with regulations on hemp-derived THC products this year. In Georgia last month, a bill addressing concerns about high THC dosages passed in the state Senate but stalled in the House, as well. 'It's really a game of whack-a-mole,' said U.S. Hemp Roundtable's Miller. 'Over the course of legislative sessions, we've seen things pop up and we try to hammer them down, and sometimes we miss but in general I think the movement is towards robust regulation as opposed to bans. I think with this new hemp beverage industry there's a lot more excitement about that, and so I think you're going to see more Legislatures really trying to come up with solutions that provide for strong access to consumers while ensuring protection of the products.' It should be noted that both Senate and House bills passed unanimously in all of the committees in which they were heard, and the full Senate voted unanimously in support of that bill when it came to the floor last month. The House version never came to the floor of that chamber. 'We will continue to debate how hemp affects public health and our economy,' Salzman told the Phoenix in an emailed comment last week. 'There are legal gaps we need to address in the future and I look forward to working with my colleagues to ensure these products are safe and protect consumers, while still allowing Florida farmers to thrive.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Forbes
18-04-2025
- Business
- Forbes
Florida Bills Seek To Regulate And Tax Hemp-Derived THC Products
Industrial hemp plants grow in a greenhouse at the University of Florida's Institute of Food and ... More Agricultural Sciences (UF/IFAS) Mid-Florida Research & Education Center in Apopka, on Tuesday, Oct. 8, 2019. (Ricardo Ramirez Buxeda/Orlando Sentinel/Tribune News Service via Getty Images) Florida lawmakers have moved forward with two bills aimed at regulating hemp-derived THC products, setting up a taxation system, and establishing rules for sales. The House Committee unanimously approved on April 16 two proposals that would strengthen regulations on hemp-derived THC products and introduce a 15% excise tax on their retail sales. Although Florida legalized medical cannabis in 2016, recreational cannabis remains illegal in the state. However, hemp-derived THC products have become popular across Florida and in all U.S. states as an alternative to illegal recreational cannabis. Now, as these products exist in a legal gray area, lawmakers are looking to regulate them. The first bill that aims to shape the hemp-derived THC industry in Florida, HB 7029, would require all retailers selling these products to register with the state's Department of Agriculture and Consumer Services, known as DACS. The plan includes a 15% excise tax on all hemp-derived THC products. The first $6 million raised would go straight to DACS, funding enforcement, and product testing through its General Inspection Trust Fund. Anything beyond that would flow into the state's general fund. The legislation doesn't stop at taxes. It lays out how businesses should handle payments and filings. Retailers would also need to keep detailed records. DACS would have the authority to inspect and audit to ensure everything's above board. The bill also sets penalties for those who try to cut corners, especially when it comes to fraud. Every package would need a scannable code linking to key info like batch numbers, expiration dates, and how much THC or other cannabinoids are in each serving. Estimates suggest this tax could bring in over $1.5 billion each year, based on numbers from 2022. But it wouldn't kick in right away. The tax only takes effect on January 1, 2026, if HB 7027 or a similar bill also makes it through. The second bill, HB 7027, takes indeed things further with tighter rules. It would limit sales to businesses that hold a food permit and block anyone under 21 from even entering those stores. It also changes how the state defines 'hemp extract,' expanding it to cover anything with more than a trace amount of THC. The bill sets dosage limits for various product types, and by 2029, those limits would be cut in half. Also, stores couldn't sell these products near schools or at public events, and each customer would face daily purchase limits, depending on the type of product they're buying. While the Florida House is working to regulate hemp-derived THC, the state Senate is taking a different approach. The Senate approved a new set of rules targeting this fast-growing market last week. The Senate bill, SB 438, would ban all Delta-8 THC products outright. It also puts strict caps on hemp-derived Delta-9 THC products, limiting it to five milligrams per serving or 50 milligrams per container. Hemp-infused drinks wouldn't be exempt, as they'd be capped at five milligrams of THC per container and could only be sold in stores with a liquor license. Testing would also be ramped up. Every final batch of hemp extract would have to be tested in a certified marijuana lab. The results would need to be verified and signed off by two lab employees before the product hits shelves. A similar bill cleared the Senate with full support last year. But Governor Ron DeSantis vetoed it after pushback from the hemp industry. While both House and Senate proposals aim to tighten control over hemp-derived THC products, the details split the two bills down different paths. The House version doesn't ban Delta-8 or other synthetic cannabinoids. The Senate bill does. The House proposal further includes a daily purchase cap of 100 milligrams of THC and blocks sales at public events, festivals, and convenience stores that allow anyone under 21. The Senate proposal, however, takes a tougher line. It calls for a full ban on synthetics and tighter controls overall. Where the House leaves room for compromise, the Senate leans into strict regulation. Industry voices have pushed back, especially against the daily cap and the broad packaging restrictions, as reported by Florida Phoenix. Some even worry about the impact on CBD products that don't cause a high, like Jodi James, president of the Florida Cannabis Action Network, as reported by Cannabis Business Time. Nevertheless, the message from both the Florida House and Senate is that the wild they're of hemp-derived THC in Florida may be coming to an end. Florida wouldn't be the first state to regulate hemp-derived THC products. Some states have already banned them, while others have placed restrictions. In February, an Alabama senator introduced a bill to ban intoxicating hemp products like delta-8 THC. States such as California, Colorado, and New York, where adult-use cannabis is legal, have fully banned delta-8 THC. On the other hand, Connecticut, Louisiana, and Maryland have chosen to regulate it. In other states, hemp-derived THC products remain legal but remain largely unregulated.
Yahoo
16-04-2025
- Business
- Yahoo
Florida House panel OKs tax on all hemp-derived THC products
Hemp being grown indoors for flower to produce CBD oil. (Florida A&M University hemp pilot project report to Florida Senate Agriculture Committee) All hemp-derived THC products would be taxed at 15% 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 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 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 know 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% 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. Salzman said following the meeting that she will exempt those products before the bill's final hearing before House Commerce Committee next week. 'That's a no-brainer,' she said. 'The purpose of this is to give it a sin-tax, and if you're not using it for sin, then yes.' The measure says that the first $6 million of revenue collected from the tax would go into a General Inspection Trust fund for enforcement and testing of hemp-derived products. The rest would go into the state's main account, the General Revenue Fund. Atlhough the House and Senate bills differ in some respects, one similarity that members of the committee voiced concerns about was a requirement that hemp-containing beverages be sold only through shops licensed to sell alcoholic beverages. 'I don't think that we should be picking winners and losers here,' said Naples Republican Rep. Lauren Melo. 'I, too, would like to see convenience stores added back in.' 'I, too, think it should be treated like alcohol,' added Broward County Democratic Rep. Christine Hunschofsky. 'And therefore should be available in the same way that alcohol is.' Southeast Florida Republican Rep. Toby Overdorf said he would like to see more work regarding synthetics, which are not listed in the House measure. Much is the same in the House and Senate bills; both would prohibit packaging that might be attractive to children and require the Department of Agriculture and Consumer Affairs to certify any hemp-testing laboratory in Florida or any other state. The House bill prohibits THC products from being sold, given, bartered, furnished, or delivered to consumers at festivals, fairs, trade shows, farmers' markets, expositions, or pop-up retail establishments. And it would ban anyone from ingesting them within 1,000 feet of a public or private elementary, middle, or secondary school between the hours of 6 a.m. and midnight. The bill will move to the Commerce Committee next week, its likely final stop before reaching the floor. SUPPORT: YOU MAKE OUR WORK POSSIBLE
