[[{“value”:”The Republican-controlled Congress is pushing forward a federal ban on THC products derived from hemp, including Delta-8. If it passes, it could spell disaster for Arizona’s hemp industry.
On June 5, a U.S. House of Representatives subcommittee approved a $25.5 billion spending bill containing a small provision that would make most hemp-derived cannabinoid products federally illegal. It will have to be approved by the full Appropriations Committee before it goes to a vote in the House, but the already-embattled industry has reason to sweat the possibility of an outright ban.
In March, Arizona Attorney General Kris Mayes announced an initiative to crack down on hemp products with THC being sold outside dispensaries and in gas stations or liquor stores, with fines of up to $20,000 per sale.
“This is obviously not legal,” Mayes said. “And we are going to enforce the law.”
Hemp industry lobbyists and representatives have argued that it is legal, pointing to the 2018 Farm Bill signed by President Donald Trump that accidentally legalized hemp-derived THC products. That loophole has resulted in hemp-derived THC products, including drinks and gummies, popping up outside of dispensaries in Arizona and beyond.
Rep. Tom Cole, an Oklahoma Republican who chairs the House Appropriations Committee, addressed the farm bill in the new bill’s summary. He wrote that the change will close “the hemp loophole that has resulted in the proliferation of unregulated intoxicating hemp products, including Delta-8 and hemp flower, being sold online and in gas stations across the country.”
Cole’s bill redefines hemp as cannabis with a THC concentration of under 0.3 percent, altering the classification of Delta-8 and similar hemp-derived products. In the bill summary, Cole said doing so was the “mandate of the American people.”
Rep. Juan Ciscomani, a Tucson Republican and the only Arizona lawmaker on the committee, did not respond to a question about his stance on the provision. But Sully Sullivan, the executive director of the Hemp Industry Trade Association of Arizona, criticized the bill in a statement to Phoenix New Times:
“If Congress reverses course and bans hemp-derived cannabinoids, they won’t be fixing a loophole — they’ll be dismantling an industry Congress intentionally made legal. Lawmakers were fully aware of hemp’s natural cannabinoids, including Delta-8, when they passed the 2018 Farm Bill. To now call these products ‘unintended’ is dishonest and deeply damaging. Hemp has faced a century of political suppression, and once again, small farmers and entrepreneurs are being sacrificed to protect corporate interests. HITA stands with the American people — for access, for fairness, and for the future of American-grown hemp.”
Arizona Attorney General Kris Mayes holds up THC-infused products that she said are being illegally sold outside of dispensaries.
Morgan Fischer
Previously, Sullivan has said that the Arizona Legislature shoulddo more to regulate hemp productslocally but not ban them outright. HITA also worked to ensure that hemp-derived products were not regulated like non-hemp THC products, which would require them to be sold only in dispensaries.
Currently, the state barely regulates hemp. That’s strikingly different from the highly regulated marijuana industry, which is dominated by the powerful collective of license holders that make up the Arizona Dispensaries Association. Each license is worth tens of millions of dollars, making it nearly impossible to break into the industry.
A bill introduced earlier this year by state Sens. David Gowan and Analise Ortiz — a Republican and a Democrat, respectively — would have created a regulatory framework for hemp products and the industry that creates them. It never received a hearing.
Arizona NORML, an organization that advocates for marijuana reforms, wrote on social media in March that for small retailers who “will never be able to afford the $10-20 million dollar license to sell” marijuana products, hemp is a good business to enter to sell similar products. The organization also criticized state regulation efforts that would result in hemp products being “controlled by the limited license oligopoly that is Arizona dispensaries.”
Ann Torrez, the executive director of the Arizona Dispensaries Association, did not respond to a request for comment. The industry group presumably would stand to gain if the congressional bill passes, as it would further cement Mayes’ position that hemp products are illegal in Arizona if sold outside of dispensaries.
HITA is still trying to battle Mayes in court on that point. On June 20, a judge will rule on the organization’s motion to let Arizona hemp businesses keep operating while it challenges Mayes’ crackdown. Asked about the bill in Congress, which would seem to strengthen Mayes’ hand, Mayes spokesperson Richie Taylor said the attorney general “will continue to monitor any potential changes to federal law.”
He declined to comment further, citing pending legislation.
“}]] A legal loophole has allowed hemp-based weed products to be sold outside dispensaries in Arizona. It may soon close. Read More
