Florida Hemp Industry Notches a Major Win from Governor DeSantis

On June 7 Governor Ron DeSantis vetoed Florida Senate Bill 1698, which was sent to him by the Florida legislature in March of this year. He has also indicated his policy priorities for the hemp industry going forward.

SB 1698, an attempt to reign in Florida’s hemp industry, would have:

• capped delta-9 THC in products to no more than 5 milligrams per serving and 50 milligrams per container
• redefined total delta-9 THC concentration under state law to also include THCA (a nonintoxicating cannabinoid that becomes psychoactive THC when heated)
• prohibited synthetic cannabinoids, delta-8 THC, delta-10 THC, hexahydrocannabinol (HHC), tetrahydrocannabinol acetate (THCOA), tetrahydrocannabiphorol (THCP), or tetrayhydrocannabivarin (THCV).

Florida hemp industry stakeholders lobbied heavily for the veto, and their efforts paid off. In his veto statement, Governor DeSantis noted that as of 2023, Florida Law already prohibits the sale of hemp products to anyone under 21, prohibits the sale of products that are attractive to children, requires hemp processing facilities to meet food safety and sanitation standards, and imposes a 0.3% delta-9 THC potency cap on hemp extract. See Fla. Stat. § 581.217.

Governor DeSantis rejected the “debilitating regulatory burdens” that SB 1698 would have imposed on small retail and manufacturing businesses in Florida. In addition, he set forth several suggestions of where he believes the Florida legislature should focus its policy-making next session:

• set standards for cultivation, processing, and handling of hemp products to ensure the purity, potency, and safety such products, including “unit purchase caps that better correspond to the character of the products and their intoxicating capabilities.”
• develop guidelines for accurate labeling, including cannabinoid content, sourcing information, health claims, and dosing instructions;
• ensure that hemp-derived cannabinoids are sold behind the counter and that hemp retail shops operate outside sufficient proximities from schools, religious institutions, and other areas where children and families regularly gather. Gov. DeSantis also encouraged the legislature to “consider measures to prevent the ubiquity and concentration of these retail locations in communities across the State.”

The next Florida legislative session will convene in March 2025. It remains to be seen whether the legislature will try again to regulate major segments of the hemp market out of existence, such as delta-8 products, out of existence, or whether it will focus its efforts where Governor DeSantis suggests. Meantime, Florida will continue to be a safe haven for hemp-derived products that are more and more being prohibited in other states.

Holon Law Partners specializes in regulatory compliance with the complex state regulatory frameworks applied to hemp cannabinoid products. Please call our team at  (866) 372-0726 or email us at: info@holonlaw.com if you need assistance with this area.