Marijuana Moment: Delaware Governor Signs Bill To Regulate And Tax Hemp THC Drinks

[Tokeativity]

Delaware’s governor has signed a bill that seeks to regulate hemp-derived THC beverages—including with an age limit, potency restrictions and taxes.

Gov. Matt Meyer (D) signed HB 373 from Rep. Debra Heffernan (D) into law last week and announced the action on Tuesday. The legislation as enacted restricts sales of hemp THC drinks to people aged 21 and older.

Beverages would be limited to 10 milligrams of delta-9 THC per single-serving container and a maximum of 60 milligrams per package containing multiple single-serving drinks. Large-sized 750 milliliter bottles could have up to 170 milligrams of delta-9 THC.

Single-serving THC drinks would be taxed at 50 cents each, while 750 milliliter bottles would receive an $8.50 tax.

Hemp THC drinks could only be sold to consumers at licensed liquor stores or marijuana dispensaries.

Products would also need to meet state packaging, labeling, advertising, testing, sampling and safety standards.

An amendment that was added to the bill by the Senate before its final passage clarifies that the legislation does not “prohibit or restrict the manufacture, distribution, or sale of hemp products or cannabinoid products that are not infused beverages, provided that such products are produced and sold in compliance with applicable federal and State hemp laws or regulations and any other applicable State or federal food, drug, consumer safety, or other regulations.”

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The bill as signed contains a sunset clause, however, that says legal hemp beverage sales will terminate in the state if federal restrictions take effect that would make it so any “beverage authorized or regulated under this Act would be classified as a controlled substance under Federal law.”

Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.

Several members of Congress have filed bills to delay or alter the planned federal recriminalization of hemp THC products, and the Trump administration has called for similar action, but those efforts have not yet gained traction with House or Senate leadership.

Meanwhile, in Delaware, the state’s top marijuana regulator recently touted changes to cannabis policies that lawmakers passed this session—including the hemp beverage bill—saying they will “further strengthen” the state’s regulatory framework.

In May, Meyer signed a bill to let terminally ill patients use medical cannabis in hospitals.

Under the reform, patients and their caregivers will be responsible for acquiring and administering medical marijuana, and it will need to be stored securely at all times in a locked container. Smoking or vaping of medical cannabis will be prohibited, so patients will need to consume it via other methods.

Facilities will be able to prohibit medical marijuana use if they determine that such use would have an “adverse impact on the medical care and treatment of the patient or is otherwise contraindicated.”

They will also be able to suspend permission to use cannabis if a federal agency such as the U.S. Department of Justice or Centers for Medicare and Medicaid Services takes an enforcement action against such use or “issues a rule, guidance, or otherwise provides notification to health care facilities that expressly prohibits the use of medical marijuana in health care facilities.”

Earlier this month, lawmakers voted to override the governor’s veto of a separate bill that would prevent local governments from imposing onerous zoning restrictions on marijuana businesses that make it more challenging for them operate in their jurisdictions.

Delaware’s adult-use cannabis market launched last August, with the governor touting the state’s first “successful” weekend of adult-use cannabis sales, with total purchases for medical and recreational marijuana totaling nearly $1 million—and compliance checks demonstrating that the regulated market is operating as intended under the law.

But when it comes to local control, Meyer aligned himself with county governments in a way that some lawmakers say is kneecapping the industry with zoning restrictions that limit the expansion of the commercial market.

An additional piece of zoning-related legislation enacted this session clarifies that marijuana business spacing requirements apply only to retail dispensaries, letting non-retail operations like cultivation, manufacturing and testing facilities operate without additional spacing restrictions.

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Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.

Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.
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Separately, a House committee this session approved a bill to decriminalize public consumption of marijuana, but it didn’t advance further. While certain legal marijuana states like Colorado and Ohio still impose criminal penalties for public cannabis use, Delaware stands out as especially punitive, with a maximum penalty that carries the risk of jail time in addition to a fine.

Last year, Meyer detailed a conversation he had with Colorado Gov. Jared Polis (D) about regulating the marijuana industry—drawing a contrast between their respective responsibilities given the fact that Colorado is much larger with more local jurisdictions to interact with compared to Delaware, which has just three counties.

The launch of Delaware’s legal market came about two years after marijuana legalization was enacted into law under former Gov. John Carney (D).

Ahead of the sales roll-out, the current governor last July toured one of the state’s cannabis cultivation facilities, praising the quality of marijuana that’s being produced, which he said will be the “French wine of weed.”

The launch of the legal market came with some controversy, however, with critics alleging that allowing medical operators to start adult-use sales ahead of other license applicants is unfair. Dozens of other would-be retailers that have either already received licenses or are still awaiting issuance will need to wait for further regulatory approvals until they can open their doors—a situation that’s frustrated some advocates.

Regulators initially projected that recreational sales would start by last March, but complications related to securing an FBI fingerprint background check service code delayed the implementation. Lawmakers passed a bill to resolve the issue, and the FBI subsequently issued the code that the stat’s marijuana law requires.

The post Delaware Governor Signs Bill To Regulate And Tax Hemp THC Drinks appeared first on Marijuana Moment.

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