Over the last several years, there has been a dramatic increase in retail and online sales of products containing hemp-derived and synthetically created cannabinoids. As a result, an increasing number of states are poised to take legislative action this year to regulate and curb sales of these novel products. Below is a brief overview of legislation that has been introduced on the state level this year.
California
On February 7, 2024, Assembly Bill 2223 (AB 2223) was introduced in the California Assembly by Assembly member Cecilia Aguiar-Curry (D). Among other changes, the bill seeks to add a new term—“synthetically derived cannabinoid”—to California law, which would be defined as a substance that is derived from a chemical reaction that changes the molecular structure of any substance separated or extracted from the plant Cannabis sativa L. (excluding decarboxylation from a naturally occurring cannabinoid acid). The bill also amends the definition of “industrial hemp” to clarify that no product may contain “any synthetically derived cannabinoid.” The bill would strengthen California’s existing regulation of these substances, such as delta-8-THC, delta-10-THC, and THCA.
Nebraska
Nebraska Legislative Bill 999 (LB 999), introduced by Senator Teresa Ibach (R) on January 5, 2024, seeks to clarify that CBD products that contain THC above legal limits, especially synthetic delta-8-THC and similar delta compounds, are illegal under Nebraska law. The bill would also turn over regulation of hemp cultivation from the Nebraska Department of Agriculture (NDA) to the U.S. Department of Agriculture (USDA). If LB 999 does pass, the NDA director will send a formal letter to USDA rescinding the state hemp plan, and Nebraska hemp producers would then be required to apply for a license to produce hemp under the USDA production program.
Florida
Senate Bill 1698 (SB 1698) and House Bill 1613 (HB 1613), filed in January 2023 and January 2024, respectively, aim to restrict the delta-9-THC content in hemp products to 2 mg per serving or 10 mg per container, whichever is lower. These bills introduce the concept of “Total delta-9-tetrahydrocannabinol concentration” and set strict limits on total delta-9-THC content in hemp products, effectively banning products with high levels of THCA. Additionally, SB 1698 and HB 1613 propose to prohibit the inclusion of synthetic or naturally occurring versions of controlled substances in legal “hemp” extract.
South Dakota
House Bill 1125 (HB 1125), introduced on January 22, 2024, in the South Dakota legislature, aims to prohibit the sale of hemp-derived products that have undergone chemical modification or conversion. This includes compounds such as delta-8-THC and delta-10-THC, which would be classified as “chemically derived cannabinoids” under the proposed law. HB 1125 seeks to make these chemically derived cannabinoids illegal in the state, aiming to regulate the sale of hemp-derived products more strictly.
As the hemp-derived cannabinoid market continues to evolve, states are taking proactive steps to ensure consumer safety and regulatory compliance. Stay informed about these legislative developments as they unfold to navigate the evolving landscape of hemp-derived products.
Stay tuned to Zari Financials for further updates and insights on regulatory changes impacting the hemp industry.
