Navigating the ever-changing landscape of cannabis and hemp regulations can be daunting. Over the past 60 days, significant changes have occurred in several states. Here’s a detailed breakdown of the key updates that could impact your business.
California: Emergency Regulations Ban Hemp Products
California’s Governor has introduced emergency regulations banning all hemp products containing detectable THC. Key points include:
- Timeline: The emergency regulation was submitted on September 13, with a 10-day comment period. If approved, it becomes effective for 180 days.
- Impact: This regulation bans intoxicating and non-intoxicating hemp products alike.
- Uncertainty: Potential injunctions could delay or stop implementation.
Stay tuned, as rapid changes are likely.
New Jersey: New Legislation Tightens Controls
On September 12, New Jersey’s governor signed a law significantly restricting hemp products:
- Sell-Through Period: Businesses have 30 days to clear existing inventory.
- Future Sales: Hemp products can only be sold through cannabis retailers, dispensaries, or liquor stores once the Cannabis Regulatory Commission establishes new rules (expected within six months).
- Immediate Impact: Sales of hemp products will halt within 30 days unless alternative measures are introduced.
Missouri: Pushback on Emergency Regulation
Missouri’s governor attempted to restrict intoxicating hemp products, but efforts were thwarted:
- Legislative Failures: Proposed bills and emergency regulations to ban sales outside the regulated cannabis market were unsuccessful.
- Current Stance: The Missouri Department of Health will focus only on misbranded products. As long as products comply with labeling laws, they can be sold.
Georgia: Comprehensive Regulatory Overhaul
Georgia has introduced sweeping changes to its hemp market:
- Effective Date: October 1.
- New Standards: Adoption of a total THC standard, replacing the Delta-9 standard.
- Licensing Requirements: Manufacturers and retailers must now obtain licenses.
- Permitted Products: Only gummies and beverages will be allowed.
- Age Restrictions: No sales to individuals under 21 (effective July 1).
Tennessee: New Regulations Enforced
Tennessee’s emergency regulations, passed in July, will begin enforcement on October 1:
- Licensing: Required for all parts of the supply chain.
- Milligram Caps: Products cannot exceed 25 mg of cannabinoids per serving.
- Concentration Limits:
- Delta-9 THC: 3% by dry weight.
- Other cannabinoids (Delta-8, Delta-10, etc.): 0.1% by dry weight.
- Packaging and Taxes: Stricter labeling requirements and excise tax enforcement are also in effect.
Iowa: Strict THC Limits
Iowa’s new law, effective since July, sets some of the nation’s strictest THC limits:
- Caps: 4 mg THC per serving and 10 mg per container.
- Excise Tax: None yet, though future proposals are anticipated.
New Hampshire: THC Product Ban Remains
Despite efforts to repeal existing bans, New Hampshire continues to restrict THC products outside regulated markets:
- Status Quo: Hemp products with THC remain banned outside adult-use and medical markets.
North Carolina: Crackdown on Compliance
While regulations remain unchanged in North Carolina, enforcement has ramped up:
- Mass Raids: Law enforcement agencies, in collaboration with the DEA, are conducting raids on hemp shops and vape retailers.
- Compliance Testing: Controlled buys and product testing are leading to arrests and product seizures.
- Legal Limits: Hemp products must contain no more than 3% Delta-9 THC by dry weight.
- Penalties: Retailers are facing trafficking charges, financial losses, and tax bills for seized products.
Conclusion: Stay Ahead of the Changes
The regulatory environment for hemp and cannabis is shifting rapidly. Businesses must remain vigilant and proactive to stay compliant. If you’re struggling to keep track of these changes, our team can help create tailored compliance plans for your product line.
Contact us today to safeguard your business and stay ahead of the curve. See you next month for another compliance update!
