Senate committee advances bill to regulate ‘novel cannabis’ products derived from hemp

Senator Chris Smitherman introduced SB 255, saying the bill would regulate products that contain cannabis found in or derived from hemp and that the proposal defines those items as "novel cannabis products." "That is that is our bill in essence, mister chairman," Smitherman said before the committee opened a public hearing.

Under the measure, the Department of Revenue would license and regulate retailers of novel cannabis products. The bill would prohibit any business that sells or serves alcoholic beverages from obtaining a license for these hemp-derived products. It would require the Department of Agriculture and industry stakeholders to approve testing and labeling requirements and would levy a 6% tax on sales of novel cannabis products. The measure would create a Novel Cannabis Safety Fund into which license fees, civil penalties and tax proceeds would be deposited to administer the act and support public-safety-related activities.

During the public hearing, industry speakers urged the committee to adopt regulation that protects consumers while allowing lawful businesses to remain in the market. Luke Garner, CEO and founder of EasyHempco, said his company operates a hemp-beverage business that serves consumers statewide and supports strict age verification and testing. "We fully believe and support responsible regulation that can coexist with our continued business and operations like ours," Garner said. He and other business witnesses urged allowing sales in grocery and convenience stores, arguing that prohibiting broad retail distribution would sharply reduce their market and threaten jobs.

Andrew Versiglio, representing multiple Piggly Wiggly stores, described in-store measures already in place, including placing hemp beverages in the beer department and using point‑of‑sale prompts to ensure ID checks. He said grocery retailers are willing to follow licensing and testing rules if permitted to sell the products. Wynn Prescott, representing convenience-store interests, made similar arguments and urged that language be modified so convenience stores can participate under a regulatory regime.

Other witnesses, including John Parker and industry representatives, urged regulation that minimizes youth access while avoiding the growth of unregulated black markets. After public testimony, committee members moved and seconded a favorable report. Senator Smitherman and others said they were willing to continue working with industry stakeholders on technical changes to the substitute language.

The committee approved SB 255 with a favorable report; sponsors said they would continue discussions on technical language in the substitute before the bill proceeds.