Listen to this post

Earlier this week, the Florida legislature passed a bill (SB 1698) that will limit the amount of THC in hemp-derived products and threatens to upend the novel cannabinoid industry in the state.

For the past few years, Florida defined hemp extract as “a substance or compound intended for ingestion, containing more than trace amounts of a cannabinoid, or for inhalation which is derived from or contains hemp and which does not contain controlled substances” that cannot contain a delta-9 concentration of more than 0.3% on a wet-weight basis. There has been no prohibition on types of extract that can be used to make products like gummies or vapes. Delta-8, delta-9, and delta-10 products have been sold in Florida in accordance with a regulatory framework addressing testing, packaging and labeling, as well as certain permit requirements.

While Florida law previously only looked to the delta-9 THC content of a hemp product, SB 1698 redefines the term “hemp extract” and prohibits “controlled substances listed in s. 893.03; any synthetic cannabinoids; ordelta-8-tetrahydrocannabinol, delta-10-tetrahydrocannabinol, hexahydrocannabinol, tetrahydrocannabinol acetate, tetrahydrocannabiphorol, and tetrahydrocannabivarin.” Additionally, the law prohibits hemp or hemp extract from exceeding a delta-9 concentration of more than 0.3% on a wet-weight basis or from exceeding “5 milligrams per serving and 50 milligrams per container on a wet-weight bases, whichever is less.”

Put simply, the law purports to bar the sale of delta-8 and delta-10 hemp products in Florida and alters the permissible amount of delta-9 concentration in approved products. These changes will force companies that do business in the hemp-derived product industry in Florida to significantly pivot operations, by phasing out their delta-8 and delta-10 product lines completely  and/or altering production to comply with the new 5 milligrams per serving limit.

Manufacturers and sellers of the impacted products are clearly impacted by Florida’s new law, and the Florida hemp industry could face serious short-term risks, given that the demand for such hemp may be dramatically reduced.

Once signed by Gov. Ron DeSantis, the law will take effect October 1, 2024. Please stay tuned for additional updates from your friends at Budding Trends.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Whitt Steineker Whitt Steineker

As co-chair of Bradley’s Cannabis Industry team, Whitt represents clients in a wide range of cannabis issues. In addition to providing a full suite of legal services to cannabis companies, Whitt and the Cannabis Industry team advise non-cannabis clients – from banks to…

As co-chair of Bradley’s Cannabis Industry team, Whitt represents clients in a wide range of cannabis issues. In addition to providing a full suite of legal services to cannabis companies, Whitt and the Cannabis Industry team advise non-cannabis clients – from banks to commercial real estate companies to insurance companies and high net worth individuals – on best practices for interacting with cannabis companies.

Whitt is one of the leading voices in the cannabis bar – recognized as a “Go-To Thought Leader” by the National Law Review. He has presented on cannabis issues at conferences around the country.  His work has been featured in the National Law JournalLaw360, and the Westlaw Journal. And he has been quoted in an array of legal and mainstream publications from Law360 and Super Lawyers to the Atlanta Journal-Constitution and the Associated Press.

Photo of Slates C. Veazey Slates C. Veazey

Slates is a member of Bradley’s Cannabis Industry team, advising clients on a variety of cannabis issues and in a wide range of sectors. From individuals and entities interested in participating in the new Mississippi medical cannabis program to non-plant-touching companies impacted by…

Slates is a member of Bradley’s Cannabis Industry team, advising clients on a variety of cannabis issues and in a wide range of sectors. From individuals and entities interested in participating in the new Mississippi medical cannabis program to non-plant-touching companies impacted by that emerging market, Slates and his partners provide the full suite of services that Bradley offers to its many other clients — but with a specific understanding of the ever-changing cannabis industry. His work has been featured in The National Law Journal, JD Supra, and the Cannabis Business Executive. Slates also has been quoted by the Mississippi Business Journal and Mississippi Today regarding Mississippi’s medical cannabis program.

Photo of Caroline Bradley-Kenney Caroline Bradley-Kenney

Caroline Bradley-Kenney is an associate in the firm’s Litigation Practice Group.

Prior to joining Bradley, Caroline clerked for Justice David M. Ishee of the Supreme Court of Mississippi and for the Hon. Anthony N. Lawrence III of the Mississippi Court of Appeals.