Earlier this week, the Florida legislature passed a bill (SB 1698) that will limit the amount of THC in hemp-derived products and threatens to upend the novel cannabinoid industry in the state.

For the past few years, Florida defined hemp extract as “a substance or compound intended for ingestion, containing more than trace amounts of a cannabinoid, or for inhalation which is derived from or contains hemp and which does not contain controlled substances” that cannot contain a delta-9 concentration of more than 0.3% on a wet-weight basis. There has been no prohibition on types of extract that can be used to make products like gummies or vapes. Delta-8, delta-9, and delta-10 products have been sold in Florida in accordance with a regulatory framework addressing testing, packaging and labeling, as well as certain permit requirements.

While Florida law previously only looked to the delta-9 THC content of a hemp product, SB 1698 redefines the term “hemp extract” and prohibits “controlled substances listed in s. 893.03; any synthetic cannabinoids; ordelta-8-tetrahydrocannabinol, delta-10-tetrahydrocannabinol, hexahydrocannabinol, tetrahydrocannabinol acetate, tetrahydrocannabiphorol, and tetrahydrocannabivarin.” Additionally, the law prohibits hemp or hemp extract from exceeding a delta-9 concentration of more than 0.3% on a wet-weight basis or from exceeding “5 milligrams per serving and 50 milligrams per container on a wet-weight bases, whichever is less.”

Put simply, the law purports to bar the sale of delta-8 and delta-10 hemp products in Florida and alters the permissible amount of delta-9 concentration in approved products. These changes will force companies that do business in the hemp-derived product industry in Florida to significantly pivot operations, by phasing out their delta-8 and delta-10 product lines completely and/or altering production to comply with the new 5 milligrams per serving limit.

Manufacturers and sellers of the impacted products are clearly impacted by Florida’s new law, and the Florida hemp industry could face serious short-term risks, given that the demand for such hemp may be dramatically reduced.

Once signed by Gov. Ron DeSantis, the law will take effect October 1, 2024. 

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Caroline Bradley-Kenney also contributed to this article.