Hemp growers raise concerns about MD Cannabis plan, lawmakers say it closes a loophole
ANNAPOLIS - As the concerns continue to linger among some in the hemp industry as lawmakers in Annapolis move through proposals to set up the adult-use, recreational marijuana industry, some legislators said the language giving pause wasn’t an oversight – it was written on purpose.
Included in the adult-use framework system is language that seeks to cap the level of tetrahydrocannabinol, or THC, included in hemp-derived products, like CBD oil or Delta-8. Delta-8 is a strain of THC that’s different than the type of THC that’s included in the traditional cannabis products.
Inside this massive bill are a few lines that threaten to upend the entire hemp industry,” Nicholas Patrick said, owner of Embrace CBD Wellness. “The THC milligram cap will make it so the only product we will be able to sell is a CBD isolate product.
Patrick, also the co-founder of the Maryland Healthy Alternatives Association, said the hemp industry grew in 2018 after the federal Farm Bill was greenlit and opened the door for the industry to expand. He noted the various ways people use CBD products to help offset aches, anxiety, and other ailments. However, during that time the market was largely unregulated.
Senate President Bill Ferguson, D-District 46, said Friday the concern from the hemp growers and businesses is “a tough issue and I think a lot of legislators are struggling with this right now,” though he said the language in question was written to close a loophole.
It’s this loophole that exists because of federal exemptions. This product was never anticipated to be on sale with no regulation,” Ferguson said. “It’s capitalism so people find a way to sell what people want. But it can be a very dangerous substance.
“The default is probably going to be less sympathetic to ongoing operations because this was never intended to be an ongoing legal product,” Ferguson said when asked if there would be assistance for the hemp industry.
Sens. Brian Feldman, D-District-15, and Antonio Hayes, D-District 40, along with Dels. Vanessa Atterbeary, D-District 13, and C.T. Wilson, are the sponsors of the legislation in both chambers. WBFF sent the following questions to the lawmakers asking about the hemp concerns, including:
- Did you speak with anyone in the hemp industry about the proposed THC cap included in the bill language before the bill was introduced?
- Have you spoken with anyone from the hemp industry recently about their concerns with the proposal? If so, when did that happen?
- Do you believe there will be an amendment to eliminate the THC cap in the current language?
- Is the government responsible for these hemp businesses and farms if they close due to these new regulations included in the current legislation?
- Will anything be done to help these businesses and farm owners offset the cost of closure if or when the THC cap is included in the final passage of the cannabis plan?
Sen. Hayes was the only lawmaker to respond, telling WBFF he and his colleagues have “heard from many hemp operators” and the Senate version of the plan “establishes a framework for the cannabis industry in our state.”
In considering this legislation we have prioritized the public safety by ensuring any intoxicating elements mixed with hemp and/or cannabis is appropriately regulated,” Hayes said. “In doing so we are closing loopholes created by the [farm bill] that has in some case enabled product availability to our constituents and consumers that may present risk.
Products sold at Patrick’s stores rely on hemp farmers like Levi Sellers who owns a farm in Washington County. Sellers said his farm focuses on using aquaponics and has partnered with the U.S. Department of Agriculture on aquaponic research to help the industry.
“I’ve been trying to work with the Department of Agriculture for well over a year,” Seller said when explaining how he offered to connect state agriculture industry experts with his sources in West Virginia who have gone through a testing and regulatory process. “The former administration is not welcome to that. But we have some hopes the current administrations would be willing to go that route and help save the hemp industry.”
Sellers is also the president of the Maryland Hemp Coalition. He and Patrick both said they welcome regulation, noting implement stringent testing and other packaging regulation could help weed out bad actors in the industry that threaten their legitimacy and hinder trust with customers.
With a THC cap at the proposed rate, Patrick said it would put him out of business.
If they become restricted, we will have no products left to sell and all of us will have to shutter our doors by July 1,” Patrick said.
Sellers echoed the same concern, noting the “existing hemp industry will be completely gutted” if amendments aren’t made.
“If this bill goes through as written, my family has devoted their entire retirement into investing in this farm and this operation and my future to provide and fed my child and my family, my wife,” Sellers said. “With this language, it will effectively shut down the products we produce which will completely bankrupt my farm and we will be forced to close our doors and move out state.”
WBFF also questioned Gov. Moore about the proposed legislation and what, if any, assistance the state could offer hemp businesses who would be impacted by the regulations included in the bill.
In a statement to WBFF, Press Secretary Carter Elliott said Gov. Moore “is committed to working with leaders in the General Assembly to create an adult-use cannabis market that provides opportunity to entrepreneurs in the state—specifically focusing on those who have been disproportionately impacted by the war on drugs.
“This is why on his very first full day in office he released $40 million to the Cannabis Business Assistance Fund to provide seed funding for help to businesses in the application and upstart process” Elliott said. “Through this funding both technical assistance and direct aid will be provided to small businesses to unleash the opportunity in communities across the state.”
While lawmakers and Gov. Moore said the hemp growers and business owners could apply for licenses through the adult-use system, Patrick said it’s unlikely they would get a license through the current framework.
