Considerations for Out-of-State Hemp Businesses Concerning Florida’s New Hemp Legislation
The Florida Legislature recently approved Senate Bill 1698 to regulate hemp products in the state and sent it to Governor Ron DeSantis’ desk for signature. The bill amends and adds to Section 581.217, Florida Statutes–the statute governing the state hemp program. The bill imposes strict THC limits on hemp extract products while banning certain cannabinoids altogether.
Specifically, the bill provides that the amount of THC in hemp extract products cannot exceed 5 milligrams per serving or 50 milligrams per container; and it prohibits the sale of products containing delta-8 THC, and other cannabinoids, including delta-10 THC, THCV, and THCP, by amending the definition of “hemp extract” to explicitly state that hemp extract does not contain the foregoing cannabinoids. If the bill becomes law, which is highly likely, then it will take effect on October 1st.
The limitations and restrictions set out in SB 1698 are important for out-of-state hemp businesses to be aware of, as they apply to hemp businesses, including those domiciled out of the state, that have dealings in Florida. For instance, if an out-of-state hemp retailer offers delta-8 THC gummies for sale on its website, and consumers can purchase these gummies for delivery to Florida addresses, then the hemp business would be subject to and in violation of the new bill, which altogether bans the sale of delta-8 THC in Florida. The new bill prevents online hemp retailers from shipping certain hemp products into Florida, including hemp extract products that contain a THC concentration exceeding 5 milligrams per serving or 50 milligrams per container and products that contain delta-8 THC, delta-10 THC, THCV, or THCP.
This is significant because if SB 1698 becomes law, it will have a substantial impact on out-of-state online retailers and distributors shipping to Florida. This will then also trickle down to out-of-state cultivators and manufacturers who supply hemp products to these online retailers and distributors.
If the bill becomes law, in order to be compliant with the new law, any out-of-state online hemp retailer who sells hemp extract products that contain a THC concentration exceeding 5 milligrams per serving or 50 milligrams per container, or products that contain delta-8 THC, delta-10 THC, THCV, or THCP, should consider setting up some sort of mechanism or tool on their website which would deny any of these products that are now illegal in Florida from being purchased by someone in or shipped to Florida.
In recent months, we have seen increased and stricter enforcement of § 581.217, Florida Statutes, by the Florida Department of Agriculture and Consumer Services (FDACS), and we expect to see even more inspections conducted by FDACS if the new hemp bill becomes law. Hemp businesses that receive stop-sale and/or stop-use orders from FDACS for their hemp products should contact an attorney for assistance.
