Politics
Delaware Lawmaker Withdraws Bill To Regulate Hemp-Derived THC Drinks
“I just feel like we didn’t have enough time left to make sure everybody felt comfortable with the bill.”
By Briana Hill, Spotlight Delaware
Delaware’s unregulated market of hemp-derived THC products will remain unchecked for now, as lawmakers pull back on a bill that would have created policy around where and how THC-infused drinks could be sold.
Late last week, Rep. Debra Heffernan (D-Bellefonte) announced in a Facebook post that she is tabling a bill that would have taken beverages infused with tetrahydrocannabinol (THC), the compound responsible for the “high” in marijuana, and regulated them exclusively through Delaware’s three-tier alcohol system.
The bill would have prohibited the sale of such drinks in any gas station, smoke shop, convenience store or hemp shop that currently sells them.
Heffernan’s move to stall the bill comes amid weeks of debate between liquor store operators and hemp businesses owners, who have both argued that having the ability to sell the products would make or break their businesses.
THC-infused products have become popular in such stores since the passage of the 2018 U.S. Farm Bill, which created a loophole allowing for the legal commercial and retail sale of hemp-derived substances.
Hemp is legally defined as a non-intoxicating cannabis plant that contains 0.3 percent or less THC by dry weight. But entrepreneurial hemp farmers have figured out a way to chemically convert the non-intoxicating compound cannabidiol (CBD) from hemp into intoxicating substances like delta-9 and delta-8 THC. It’s technically legal as long as the hemp at time of harvest stays below legal thresholds.
‘Not enough time left’
Heffernan decided to put the measure on hold, saying that she didn’t feel like there was enough time to get the beverage bill completed considering the concerns that arose from retailers who still wanted to be able to sell the products.
“I just feel like we didn’t have enough time left to make sure everybody felt comfortable with the bill,” Heffernan told Spotlight Delaware.
She also wants to be able to gain more input from Delaware’s new marijuana commissioner, Joshua Sanderlin.
Sanderlin, who was appointed to the role on May 14, told Spotlight Delaware that his primary goal regarding the illicit market is to establish regulations for hemp products, since there is currently no oversight at all.
He affirmed that the marijuana industry is equipped to regulate hemp products, but when asked if he would consider putting hemp stores into Delaware’s regulated marijuana industry so that they can continue to sell their products, he said it was an “early question.”
Now that the bill has been stalled, liquor stores can still sell THC-infused beverages, just without the proposed regulations or the 50-cent tax per 12-ounce can that would have been implemented under the legislation.
Edward Mulvihill, president of the Delaware Small Beverage License Council and Director of Sales & Marketing at Peco’s Liquor Store, says liquor businesses will continue to operate in a “gray area,” but he hopes to see clear regulations soon that define what these beverages are and how they should be taxed and sold.
Hemp and CBD shops will also see some temporary relief with the measure being paused. Jena Murray, president of the U.S Hemp Roundtable, which represents various hemp companies both in and out of state, noted that she and other advocates will continue to push for policy in Delaware that is inclusive to hemp and CBD businesses that have already been selling hemp-derived THC consumable products.
But with both proposals on hold, and potential regulation around THC products being stalled until next year, it is unclear how the lack of enforcement will continue to burden the state.
It is also whether state officials will have to provide more resources to crack down on shops that are selling illegal products.
Hemp products becoming more popular
The widespread sale of the products in Delaware has increased over the past few years, raising concerns among state officials, who have noted an increase in reports of underage consumption and the use of harmful chemicals in the products.
The Delaware Department of Alcohol and Tobacco Enforcement, which has currently been keeping track of the unregulated market, did not respond to a request for comment on Monday.
Early last month, Heffernan introduced a larger measure to tackle the unregulated market, which, in addition to regulating THC beverages through the state’s alcohol establishments, would have placed hemp-derived THC edibles like gummies, chocolates, smokable flower, and oils under the purview of Delaware’s marijuana industry.
The original bill was met with backlash from hemp and CBD store operators, who said that the bill would take all of the products off their shelves and force them to close their businesses.
But those within the alcohol industry said that the bill was coming at a convenient time considering that many liquor stores statewide have been experiencing a decline in revenue over the past two years.
Last month during the House Economic Development/Banking/Insurance & Commerce Committee hearing, co-founder of Universal Beverage Importers, Jason Giuliano, noted that THC-infused beverages could make up to 20% in liquor store sales.
But about a month after the original measure was introduced, Heffernan divided the proposal into two bills, with the goal of only move forward this legislative session with the measure that would regulate THC drinks, noting that the beverage bill had more “agreement on the path forward.”
She said she would talk with more stakeholders over the summer before finalizing the second bill that would regulate other edible THC products, with hopes of having something to file in January.
This story was first published by Spotlight Delaware.
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