Panelists from the Florida hemp industry, or business executives who interact with it, offered insight Wednesday during a meeting of the Combined Workgroup on Hemp on how best to protect consumers while also creating a level playing field at all levels of the industry, from seed to buyer.
The group included farm owners, retailers and beverage industry executives, and each offered varying words of caution — from too much self-regulation of crops to kids being able to get their hands on potentially dangers products containing THC.
House Speaker Daniel Perez established the workgroup to discuss possible hemp regulation after a bill that cleared the Legislature last year was vetoed by Gov. Ron DeSantis citing concerns that it may hinder small businesses who operate within or adjacent to the hemp industry.
Jammie Treadwell, who owns Treadwell Farms in Umatilla, praised existing regulations in Florida she says go beyond what some states have in place, particularly on consumer safety and testing requirements. But she found arsenic in one of her farm’s crops, believed to be leftover from soil on the land that was previously used for citrus. As a bioaccumulator, hemp crops can pull even trace elements of various chemicals from the soil. Treadwell said they destroyed the crop, “which was hurtful for us, but it was the right thing to do,” and added that it was a matter of self-regulation and not prompted by existing laws.
Randy Rembert, who runs Rembert Family Farms, echoed similar concerns, but added that it is possible for underage consumers to purchase hemp products. While it’s unlikely, he said younger users are sometimes able to acquire hemp products online, sometimes using social media to confirm legal age even if that’s not accurate. Rembert Family Farms sell a variety of hemp products, including gummies and lollipops that may be enticing to kids.
He said existing regulations are adequate, and his company verifies in-person sales by checking a buyer’s ID. For online sales, he said the company uses social media to verify age, and declines the sale if they are unable to verify legal age.
“We’re going to vet you properly to make sure, and also you’re going to have to have a credit card processed. Now also, with our processing, it’s mostly PayPal, and with PayPal you have to have a credit card and you have to be verified through PayPal,” Rembert said.
JD McCormick, a hemp retailer and president of the Florida Healthy Alternatives Association, told members of the workgroup that he supports regulation, noting that after the federal 2018 Farm Bill paved the way for legal hemp cultivation and sales, “it was safe to invest in Florida.” But now he says the “pendulum may have swung too far” in the other direction.
He pointed to figures from a meeting of the same workgroup on Tuesday in which the Florida Department of Agriculture and Consumer Services (FDACS) told members there were only two acres of hemp cultivated last year, despite more than 14,000 acres licensed. “More certainty would allow them to grow” on those unused acres, he argued.
During Wednesday’s meeting, FDACS Director of Food Safety Matthew Curran clarified the disparity between acreage licensed to grow hemp and the number of acres that actually harvest, noting that just because a business is licensed to grow hemp, doesn’t mean it will. His clarification seemed to support McCormick’s point that a lot of land is available for growth, but isn’t being used.
He said any regulatory framework should ensure small businesses benefit, while also ensuring products stay out of kids’ hands.
“No industry is perfect,” he said, “but please don’t let the perfect be the enemy of good.”
And David Bear, CEO of the Lewis Bear Company beverage distributor, offered another suggestion — regulating hemp similarly to beer, which operate under a long-standing three tier system that separates those who make the beer, those who transport it and those who sell it.
“It was designed to prevent conflicts of interest (and) ensure product integrity,” Bear said, adding that “it has proven effective and should serve as a foundation” for hemp regulation.
Like others from the industry, he agreed that hemp products can be “intoxicating and should be regulated as such.”
What he doesn’t want is “a patchwork of rules,” noting as other industry leaders did that certainty is needed for small businesses to thrive.
Bear also suggested lawmakers consider imposing an excise tax on hemp beverages, much like what is done with alcholic beverages.
Chas Bailes III, the CEO of ABC Fine Wine and Spirits, spoke from the perspective of retailers. His stores sell THC, delta-9 containing beverages derived from hemp. But his company is largely self-regulating. Internally, the company imposed a policy limiting sales of hemp beverages to 10mg per serving of THC. ABC only began selling THC beverages about six months ago, and since has seen an increase in demand, Bailes said. But he said the age demographic most often purchasing those products are older adults around 45 to 50 or older.
Lawmakers were briefly able to ask questions, or offer comments about their concerns about the hemp industry. Rep. Mike Giallombardo expressed concern about how much product is coming into Florida from out of state or country. George Fernandez, the CEO of Modern Canna Laboratories, confirmed that most of the products his company has tested are coming from out of state.
That transport offers another challenge, as Giallombardo noted. Hemp products, he said, have been found to increase in potentcy after they’ve been tested, meaning consumers may be getting a stronger product than what labeling would suggest.
But McCormick said the average hemp product is tested four times before it reaches the consumer, suggesting any alteration in potency would be caught through that process.
The workgroup began meeting on March 3, and was scheduled to meet for seven days to hear from experts, regulators and industry leaders. The group will not consider legislation, and it is not hearing testimony from the public. Once the meetings have concluded, the group, with its 24 members, will be tasked with identifying any additional information or resources needed to make legislative decisions on the issue.
Legislation, meanwhile, is already pending.
Democratic Sen. Tracie Davis is carrying this year’s version of hemp legislation (SB 1030) in the upper chamber. Democrat-turned-Republican Rep. Hillary Cassel filed its House analog (HB 601). Neither have yet had a hearing.
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Florida Politics reporter Jesse Scheckner contributed to this report.
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