Senate committee advances bill to regulate hemp products, caps THC in beverages and funds testing

Senate Bill 438, a proposal to regulate Florida’s hemp and hemp-extract industry including THC-infused beverages, was reported favorably by the Florida Senate Committee on Agriculture after the committee adopted an amendment clarifying that testing is required at final batch testing closest to the consumer.

Sponsor Sen. Colleen Burton told the committee the bill would require testing and certification, set retail and event restrictions, and add administrative fines for noncompliance. Burton said the testing regimen mirrors that used in Florida’s medical marijuana program and that the Department of Health would continue to have compliance responsibilities. “The testing protocol provides safety for our products in that it makes sure that there are not substances within those products that we know are dangerous for humans,” Burton said. The bill also appropriates $2,000,000 from the General Revenue Fund for testing equipment to support Florida-designated laboratories.

The measure sets a 5-milligram limit of hemp-derived THC per serving and a 50-milligram limit per package for edibles and beverage products; it requires hemp extract products to be tested and not sold on open shelves (they must be behind a barrier), with an explicit exception allowing beverages to be placed where other intoxicating beverages are displayed for logistical reasons. The bill also adds store-location restrictions and prevents some unregulated street fairs and similar events from allowing vendors who cannot be verified as legal retailers.

Committee debate included public testimony both supporting and opposing the bill. Industry representatives such as Scott Ashley of Wine and Spirits Distributors of Florida, Jared Ross of the Florida Beer Wholesalers Association and Chaz Bayless of ABC Fine Wine & Spirits supported regulation that treats THC beverages like other intoxicating beverages to protect public safety and prevent sales to minors. Will Spartan of Pico Beverage Group and other producers described voluntary testing and labeling practices and urged the committee to adopt workable distribution rules.

Opponents and retail operators raised concerns about several provisions. Small nonalcoholic beverage retailers Urbanflow (testified by Caitlin Smith and Michael Smith) asked the committee not to require liquor-store licensing for specialty nonalcoholic shops and warned that a 5-milligram per-serving cap could encourage consumers to “drink more” to reach desired effects. Treadwell Farms and other Florida hemp growers warned the committee the industry still has limited commercial acreage and urged careful consideration of farmer impacts. Several witnesses asked for clarification on advertising and event-approval procedures to avoid unintended consequences for lawful vendors who operate farmers markets and community events.

George Fernandez, CEO of an ISO/17025-accredited Florida lab, presented testing data his laboratory collected over six months from products sold in smoke shops and other retailers. “71 out of 111 samples tested over point 3% delta 9 THC. That’s 64%,” Fernandez said; he also reported pesticide and microbial failures in that sample. Fernandez contrasted those results with medical-marijuana samples his lab tested, which showed far lower failure rates under Florida’s medical regulatory framework.

The committee took and adopted amendment barcode 1000076, which Sen. Burton said clarifies that testing must occur at the point of final batch testing closest to the consumer. The amendment was adopted by voice vote. At the roll call on the committee substitute for SB 438 as amended the committee recorded unanimous yes votes from the senators present; committee staff recorded the bill as reported favorably.

The committee did not send the measure to the floor in the same meeting; it was reported out of committee with a favorable recommendation and the appropriated equipment funds noted. Lawmakers and stakeholders flagged several items for future work: the adequacy and capacity of testing labs and regulators, the details of event permitting and advertising restrictions, how per-package limits will affect product formulations marketed as a 30-day supply, and whether beverage distribution should be integrated with existing alcohol beverage controls and taxation.

Votes at a glance: the committee adopted amendment barcode 1000076 (clarifying final-batch testing) and reported CS for SB 438 favorably by recorded roll call.