The Delaware House Economic Development/Banking/Insurance & Commerce Committee heard a bill from State Rep. Deb Heffernan's (D-Bellefonte) Tuesday that would narrowly limit the sale of consumable hemp products and create regulations for THC-infused beverages in the First State.
In 2018, the federal government passed the Farm Bill, which made the official distinction between hemp and marijuana by defining hemp as any cannabis plant with no more than .3 percent THC, which provides the psychoactive effect known as a “high.”
Stores across Delaware sell consumable hemp products, — one of the most common being CBD gummies, which has no psychoactive effect — but Delaware lawmakers have also been made aware of smoke shops and gas stations selling consumable hemp products with high concentrations of THC.
In an effort to crack down on these sales, Rep. Heffernan introduced a bill that would only allow retail marijuana dispensaries to sell consumable hemp products, regardless if its THC concentration is less than .3 percent.
"There's hemp-derived THC edibles, like gummies and other candy-like items, that are being sold all over in many gas stations, markets, smoke shops, and there's been a real problem — school resource officers have said that almost every day they're confiscating these items, and so these would then only be sold, which was what the intent of the marijuana law, was to have them only sold in the marijuana retail locations, and that allows them to be tested and make sure they're safe," Rep. Heffernan said in her opening remarks.
Recreational marijuana dispensaries remain inoperable in Delaware as the Office of the Marijuana Commissioner remains in coordination with the FBI to complete lottery winner background checks.
The new definition of a consumable hemp product under Delaware law would be "a commodity containing THC that is manufactured from hemp or marijuana for commercial or research purposes and is intended for human ingestion, inhalation or other internal consumption and is not an infused beverage."
Several small businesses came to speak in opposition of this change, arguing this new definition of "consumable hemp products" supersedes the federal definition and would harm small businesses who are following testing regulations.
“Sunmed is doing clinical studies with our products. We are the only CBD company that has gotten some of our products through these clinical studies, and as my husband stated, this will put us out of business," Yvonne Plump, the co-owner of Sunmed CBD in Delmar with her husband Michael, said during public testimony.
"I'm capable of being compliant as a smoke shop that already IDs people to make sure they're of age, does labs, etc. Vote no to change the law, to stray away from the federal hemp guidelines. Vote no on this bill because hemp should be regulated in a way that still keeps the market free, not killing small businesses and arbitrarily allowing them only at dispensaries when, like I — like many, weren't privileged enough to win the lottery to get a retail license. This bill makes no sense and will destroy my business," said Nicole Chick, the co-owner of boutique-styled smoke shop Puffster in Dover.
THC-infused beverages have also entered the market in Delaware, and this bill aims to retroactively apply some regulations, largely modeled after Connecticut's approach.
The bill would allow only specially licensed liquor stores to sell THC-infused beverages, add a $1 tax per container, limit drinks to 10mg of THC, and make the Office of the Alcohol Beverage Control Commissioner the regulatory body of these beverages instead of the Office of the Marijuana Commissioner.
Liquor store owners largely spoke in favor of the bill, noting a recent decline in alcohol sales and the desire to tap into the THC beverage market, but several raised concerns over the $1 per can tax.
“I just wanted to say I'm supportive of regulation — sensible regulations and taxation. I believe taxing this liquid 40 times higher than what we do currently with beer is insane, and it would absolutely decimate this industry as it's budding," said Dewey Beer Company Co-Owner Mike Reilly, who noted the brewery is already selling its own THC-infused beverage known as Delta Crush.
Following public comment, State Rep. Bill Carson (D-Smyrna) said he spoke with Rep. Heffernan and said she is willing to make some changes — either adding some amendments or introducing a substitute bill — around "separating the product" and "discussing the tax rate."
In hearing some changes are forthcoming, committee members unanimously voted to release the bill.
