June 12, 2023

National Legislative Trends for Regulating Hemp Products

As we’ve been talking about for the past few months, states across the United States are regulating hemp products, especially intoxicating hemp products. Let’s take a look at what’s happened in the last month.

Delta-8, Delta-10, THC

So in the last month, the regulations have continued to go on sort of a patchwork quilt across the United States. For those of us in the camping cannabis space, at least since 2018, we’re pretty used to this by now. However, for the intoxicating hemp derived space so Delta-8, Delta-10, THC, all these products that are federally legal but are still intoxicating are sort of the focus of most states is is them right now.

And those products are on the chopping block too, so to say. In the past month, we’ve seen several states do a couple of different things and we’re going to talk about those trends. Minnesota did a complete overhaul of its program, as well as overhauling and passing recreational cannabis. Any consumable hemp products now over five milligrams a piece or 25 milligrams total per package have to be sold in a licensed retail or regulated retail space.

Think dispensary. Florida almost outlawed all intoxicating cannabinoids, but at the last minute it was saved. Now it only requires childproof packaging. Products can only be sold to those who are 21 years of age and older. There are some new marketing regulations basically geared towards not marketing these products to kids. A ban on packaging that’s attractive to children and putting the products behind the counter in any retail space.

You can probably get the trend there being making sure these guys don’t get a hold of these products. Tennessee now requires a tax on all of these products sold. Requires licensing for manufacturers and sellers. Requires new standards of testing. Child resistant packaging, new label warnings, new disclaimers and expiration dates on all products. Virginia basically outlawed the entire hemp industry in that they put a two milligrams total THC per package limit except for products with a ratio of 25 to 1 CBD to THC.

This has effectively gotten rid of all intoxicating cannabinoids that were in Virginia and really most hemp products in general. Similar bills to all of these have been introduced in North Carolina, Connecticut, Texas, Illinois and several other states. Some of the trends, you might notice are childproof packaging. See my video on childproof packaging to talk more about it.

Limiting products that are attractive to children

If anybody’s been in a vape shop or a hemp derived products shopping experience lately, especially outside of the regulated space, you will notice there are a lot of products on the market that look a lot like candy. They look a lot like existing other products. Skittles. Power heads. Lemon drops. I mean, you name it. If it’s a gummy candy that we’re used to buying in the gas station, there’s probably an intoxicating hemp derived product that pretty much mirrors it. Nobody likes this for an obvious reason. Yes, it’s popular with adults. Yes. There’s an attractiveness there?

It probably speaks to our inner child. I’m sure Freud would have something to say about that. But the problem is, is that for actual children, it’s also looks like their candy. So we can’t be doing that anymore. 21 and up. The idea is to treat cannabis, especially intoxicating products, most of which are edibles or or consumables, like alcohol. Unless you’re 21 years of age, you should not be having access to it.

Retail availability, whether it’s limiting these products, being in dispensaries only, or it’s requiring all retailers to be licensed, or is requiring that any retailer that sells these products to put them behind the counter so that they have to educate or ID verify prior to giving them the products. Retail availability is a big trend in the regulations right now.


A lot of these new regulations come with a tax scheme for these types of products, especially hemp derived consumables. The hemp space has enjoyed not being taxed for a very not a very long time, but pretty much for the last five years, unlike the regulated cannabis space which is taxed out the wazoo. That trend is coming to an end.

That time is over. These products again, especially hemp consumables in the intoxicating space, are going to be taxed by most states. Will they be taxed at the same level as regulated cannabis? Probably not. But certainly there’s going to start being some tax associated with that to not only survive, but thrive in the hemp and cannabis space. You have to be ready to pivot.

You have to be ready to look around the corner. You have to be proactive, not reactive. So I talk about these trends because it’s time to look at them now and start potentially implementing them into your product, into your business. Now, don’t wait until you’re forced because you might not be in the right space to do it. Then if you’ve got the funds and the time now, consider making some of these changes.
Now looking at your distribution partners, looking at your retail partners, looking at your manufacturing.

From beginning to end, you need to decide how much money you’re going to need to spend. If you’re going to have to spend more and be prepared for that. If you’re not ready to pivot, you won’t survive.

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