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November 26, 2024

State Compliance Update: Cannabis and Hemp Regulation Changes (November 2024)


The cannabis and hemp industries are navigating a rapidly changing regulatory landscape. In the last 60 days, several states have introduced significant changes that impact compliance. Let’s dive into the most critical updates as of November 14, 2024.


California: Emergency Regulations Ban Hemp Products

  • Status: California’s emergency regulation banning all intoxicating hemp products remains in effect until at least March 2025.
  • Scope: The ban covers all products containing any detectable THC, enforced by the California Department of Public Health.
  • Legal Challenge: An injunction to halt the regulation was denied, meaning the ban continues for now.
  • Impact: California remains off-limits for most hemp products until further notice.

New Jersey: Partial Enforcement of Hemp Law

  • New Restrictions:
    • No sales to individuals under 21 (already a common industry practice).
    • Broad definition of “synthetics,” severely restricting products like Delta-8 and Delta-10 THC.
  • Enforcement Focus: Retailers are the primary target, with actions led by the New Jersey Cannabis Regulatory Commission (CRC).
  • Future Risks: Full enforcement of the broader law could heavily impact the hemp market in New Jersey.

Ohio: Proposed Milligram Caps

  • Legislative Proposal:
    • Products limited to 0.5 mg Delta-9 THC per serving and 2 mg per container.
    • Total ban on other cannabinoids, including Delta-8 and Delta-10 THC.
  • Impact: If passed, the law would effectively eliminate most hemp products in Ohio, leaving little room for market viability.

Missouri: New Administrative Regulations Pending

  • History: Emergency regulations banning intoxicating hemp products were lifted in September.
  • Current Developments: Administrative regulations are being drafted to reintroduce similar restrictions.
  • Outlook: Industry stakeholders should prepare for renewed regulatory challenges.

Texas: Regulatory Crackdown Expected

  • Upcoming Legislative Session: Texas legislators, led by the lieutenant governor, are prioritizing restrictions on hemp.
  • Proposals Include:
    • A ban on Delta-8 THC.
    • Comprehensive restrictions on all intoxicating hemp products.
  • Industry Concerns: Texas’ robust hemp market faces significant threats. Advocacy efforts will be critical in the coming months.

Illinois: New Testing Regulations

  • Proposed Rules: Retailers may soon be required to conduct regular product testing, increasing compliance costs.
  • Timeline: Regulations are currently paused for public comment.
  • Potential Impact: Retailers relying solely on distributor-provided Certificates of Analysis (COAs) will need to adapt to new requirements.

Florida: Administrative Regulation Changes

  • Proposed Changes Include:
    • Ban on color additives, even natural ones, if used solely for coloring.
    • Stricter child-resistant packaging standards.
    • Expanded COA requirements to include batch production details.
  • Enforcement Timeline: Public hearing scheduled for December 10, with comments open through January 2025.
  • Impact: If passed, these changes could disrupt the market for hemp flower and edibles in Florida.

North Carolina: Heightened Enforcement

  • Current Actions: A series of raids by sheriffs and the DEA have targeted hemp retailers and distributors.
  • Misinterpretation of Law: Some law enforcement agencies are incorrectly applying total THC standards instead of Delta-9 THC standards, leading to product seizures and arrests.
  • Risks: Non-compliance can result in:
    • Product confiscation.
    • Bank account seizures.
    • Potential criminal charges.
  • Advice: Stakeholders should ensure all products meet federal and state Delta-9 THC limits.

What This Means for Your Business

With enforcement actions increasing and regulations tightening, non-compliance is no longer an option. Businesses must:

  1. Understand State-Specific Laws: Each state’s regulations vary significantly.
  2. Audit Products Regularly: Ensure compliance with labeling, testing, and THC limits.
  3. Stay Informed: Monitor proposed laws and enforcement trends to adapt quickly.

Conclusion

Staying compliant in the hemp and cannabis industry requires constant vigilance. If you need assistance navigating state regulations or conducting a 50-state compliance review for your products, contact us today. We’re here to help protect your business and ensure it thrives in this complex environment.

Stay tuned for next month’s compliance update!

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