Florida’s Struggle with Hemp Regulation: A Missed Opportunity in 2023 Legislative Session

In the 2023 legislative session, Florida lawmakers once again failed to pass comprehensive regulations on hemp-derived THC products. This marks the second consecutive year the state has not addressed concerns related to the fast-growing hemp industry, despite ongoing lobbying from industry stakeholders, including hemp product producers, retailers, and public health advocates. The lack of resolution has left many in the hemp sector frustrated and uncertain about the future of their businesses.

Disparities Between Senate and House Bills Hindered Progress on Hemp Regulation

The failure to pass legislation this year primarily stems from significant differences between two key pieces of proposed legislation. The Senate bill, SB 438, sponsored by Republican Senator Colleen Burton of Polk County, and the House version, HB 7027, sponsored by Republican Representative Michelle Salzman of the Panhandle, both aimed to regulate the rapidly expanding hemp market. While both bills sought to address key issues such as potency caps, advertising restrictions, and mandatory testing by certified medical cannabis laboratories, they diverged significantly in their approaches.

The Senate bill sought to impose a complete ban on synthetic cannabinoids like Delta-8 and Delta-10, which have become popular in the hemp market. It also proposed that hemp-infused drinks could only be sold at locations with a liquor license. In contrast, the House bill did not include provisions for banning synthetic cannabinoids and did not require liquor licenses for retailers. However, it introduced a 15 percent excise tax on all hemp purchases, which would have impacted both consumers and business owners.

For many in the hemp industry, the Senate bill’s outright ban on synthetic cannabinoids was seen as a significant overreach. Industry professionals feared it would decimate their businesses, particularly those focused on products such as Delta-8, which have a growing customer base. On the other hand, the House bill, while not without its challenges, was viewed by some as a more balanced approach.

The Growing Impact of Hemp-Derived THC Beverages in Florida

One notable trend in the hemp market that surfaced in the past year was the increasing popularity of hemp-derived THC beverages. These products, which contain varying amounts of THC, have gained traction in Florida’s vibrant hospitality and tourism sectors. The Senate bill would have restricted the sale of these beverages to establishments with liquor licenses, which critics argue would have significantly stifled their growth.

Michael Smith, co-owner of Herban Flow, a store in St. Petersburg that specializes in THC-infused drinks, expressed concern that such a restriction would hurt his business, which caters to tourists and local residents seeking non-alcoholic cannabis options. “Florida being such a tourism and hospitality state, these bars are trying to develop server menus and other types of non-alcoholic menus for people to partake and join out with their friends. The Senate bill would have taken that ability away completely,” said Smith.

While the Senate bill capped THC-infused beverages at 5 milligrams of THC per container, the House bill proposed a slightly higher limit of 10 milligrams per container. Additionally, the House bill would have banned consumption of THC beverages on the retailer’s premises, a provision that Smith believed would have severely impacted sales and customer experience.

Florida’s Struggle to Find Consensus on Hemp Regulation

As the session drew to a close, it became clear that lawmakers would not be able to reconcile the differences between the two bills, leaving the hemp industry in a state of limbo. Industry advocates like Jonathan Miller, general counsel for the U.S. Hemp Roundtable, voiced disappointment that no legislation was passed but noted that the House version of the bill offered a better starting point for future negotiations.

“We said that it wasn’t perfect, but it was a significant improvement on the Senate bill,” Miller explained. “In the end, nothing passing was better than the Senate bill passing. I’m hopeful 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 protects both farmers and consumers.”

Hemp Businesses on Edge Amid Regulatory Uncertainty

For small business owners like Carlos Hermida, who owns two hemp shops in the Tampa Bay area, the lack of a clear regulatory framework is causing anxiety. Hermida’s business relies heavily on the sale of hemp-derived products, including Delta-8 and other cannabinoids that would have been banned under the Senate bill. “I was honestly afraid that we would have to close down,” said Hermida. The uncertainty surrounding the regulation of hemp products has left many entrepreneurs in the state on edge, unsure of whether their businesses will remain viable in the long term.

Despite the absence of new regulations, Hermida noted that the failure to pass the bills this year would likely help his bottom line in the short term. “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,” he said. But he also expressed concern about the future. “We need clear regulations to survive long-term,” he emphasized.

The Need for Comprehensive Hemp Regulation

Advocates for hemp regulation argue that the lack of action in Florida leaves consumers and businesses vulnerable to unregulated products. Ellen Snelling, a member of the Hillsborough County Anti-Drug Alliance, expressed her disappointment at the failure of the legislature to pass meaningful hemp regulations. “I thought, ‘This is great. This is going to work this year,’” said Snelling, referring to a special workgroup convened by House Speaker Daniel Perez earlier in the session. “But as time went on, it just seemed like they weren’t going to come to a consensus and get it done.”

Snelling and others in the public health and safety community stress the importance of regulating hemp products to ensure consumer safety and prevent potential harm. “This stuff has got to be regulated,” Snelling added.

A National Trend of Inaction on Hemp Regulation

Florida is not alone in its struggle to pass hemp regulations. Several other states, including Georgia, have also faced difficulties in passing legislation to regulate hemp-derived THC products. In Georgia, a bill that sought to address concerns about high THC dosages passed in the state Senate but stalled in the House. This reflects a broader national trend of states grappling with how to regulate the booming hemp industry while balancing the interests of businesses, consumers, and public health.

Jonathan Miller of the U.S. Hemp Roundtable noted that the hemp industry is experiencing a “game of whack-a-mole” in legislative sessions across the country. “We try to hammer down issues as they come up, but sometimes we miss,” he said. However, Miller remains optimistic that lawmakers will eventually find solutions that provide strong consumer protection while ensuring access to hemp products.

Looking Ahead to Future Hemp Legislation in Florida

As the 2023 legislative session officially closed, Florida lawmakers left the issue of hemp regulation unresolved. Both the Senate and House bills had garnered strong support in committee, and the Senate bill passed unanimously in a floor vote. However, the lack of consensus between the two chambers prevented meaningful action. Despite this setback, proponents of hemp regulation remain hopeful that the issue will be revisited in future sessions.

Rep. Michelle Salzman, sponsor of the House bill, acknowledged the need for ongoing dialogue. “We will continue to debate how hemp affects public health and our economy,” Salzman said in a recent statement. “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.”

As Florida continues to struggle with hemp regulation, industry stakeholders and consumers alike will be watching closely to see what steps lawmakers take in future legislative sessions to address this pressing issue.

Florida lawmakers failed to pass hemp regulation bills during the 2023 legislative session, leaving businesses and consumers uncertain about the future of hemp-derived THC products in the state. Read on to understand the challenges and missed opportunities.