Missouri Legislature Moves to Regulate Hemp-Derived Consumable Products

In an effort to establish regulatory oversight for hemp-derived consumable products, the Missouri legislature is considering multiple bills aimed at addressing issues such as youth access, licensing, taxation, advertising, testing, and labeling. The proposed legislation follows last year’s executive order by Missouri’s former governor to limit the availability of intoxicating hemp products. Here’s a breakdown of the key proposals currently under consideration.

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The Missouri Hemp Consumer Protection Act

Introduced by Representative Ben Baker, this bill seeks to regulate the sale, distribution, and consumption of hemp-derived consumables. Key provisions include:

• Age Restrictions:?Prohibits individuals under 21 from purchasing or selling hemp-derived consumables, with exceptions for supervised consumption by parents or guardians and veterans aged 18 or older.
• Licensing and Fees:?Requires manufacturers, distributors, and retailers to obtain licenses from the Division of Alcohol and Tobacco Control (DATC), with fees ranging from $100 to $250 annually.
• Testing and Labeling:?Mandates full-panel testing of hemp-derived consumables overseen by the Department of Health and Senior Services (DHHS). Labels must include specific product information.
• Retail and Food Service Regulations:?Retailers and food service establishments must be licensed to sell these products, which are prohibited from being sold at temporary events without a permit.
• Advertising and Marketing:?The DATC will regulate promotions, ensuring compliance with advertising standards similar to those of alcohol sales.
• Prohibited Activities:?Prohibits individuals from operating vehicles or performing tasks while impaired by hemp-derived consumables.
• Enforcement and Penalties:?The DATC is authorized to conduct audits and inspections, with violations resulting in fines and potential misdemeanors.

HB 393

Proposed by Representative Dave Hinman, HB 393 introduces additional regulatory measures with a focus on taxation and compliance:

• Taxation:?Imposes a 2% excise tax on hemp-derived consumables beginning January 1, 2026, with revenue allocated to veterans’ programs, drug abuse prevention, and first responder initiatives.
• Age Restrictions:?Restricts sales to individuals under 21 and mandates that retailers keep these products in restricted areas.
• Licensing:?Requires businesses dealing in hemp-derived consumables to obtain a license from the DATC, with specific restrictions on proximity to schools.
• Testing and Labeling:?The DHHS will oversee product testing, requiring Certificates of Analysis (COA) for compliance.
• Packaging and Serving Size:?Sets THC limits for serving sizes and packaging, with violations leading to product seizure.
• Hemp Business Fund:?Establishes a dedicated fund for licensing fees to support industry oversight.
• On-Premises Sales and Consumption:?Establishments selling hemp-derived beverages must be licensed and adhere to strict age restrictions.
• School Policies:?Requires school districts to implement policies prohibiting hemp-derived products on school property by July 1, 2026.

HB 463

Representative Barry Hovis’ bill focuses on licensing and distribution of hemp-derived beverages:

• Licensing:?Establishes separate licenses for manufacturers, wholesalers, and retailers. Entities may not hold multiple types of licenses.
• Sales and Distribution:?Manufacturers may only sell to wholesalers, and retailers cannot distribute products from outside the U.S.
• Regulations and Standards:?Sets health and safety requirements for product testing and labeling, with fines escalating from $1,000 to $25,000 for repeated violations.
• Marketing Restrictions:?Prohibits advertisements appealing to individuals under 21.
• Taxation:?Authorizes the DATC to set a retail tax rate between 6% and 8%.

The Intoxicating Cannabinoid Control Act

Proposed by Senator Nick Schroer, this act would classify intoxicating cannabinoid products as marijuana, requiring them to be regulated under Missouri’s existing cannabis framework. The bill proposes:

• Regulation by the DHHS:?Intoxicating cannabinoid products would be subject to the same regulations as marijuana, including cultivation, manufacturing, advertising, and sales restrictions.
• Exclusive Sales Locations:?Products could only be sold at licensed marijuana dispensaries.
• Interagency Coordination:?The DHHS would collaborate with the Department of Public Safety and other agencies to enforce the act.

Why These Proposals Matter

The rapid growth of the hemp-derived consumables market has exposed gaps in regulatory oversight, prompting state lawmakers to act in the absence of comprehensive federal regulations. The 2018 Farm Bill, which legalized hemp, inadvertently allowed the proliferation of intoxicating hemp products, creating concerns about consumer safety and youth access.

Missouri’s proposed legislation reflects a broader trend of states implementing their own regulatory frameworks to ensure responsible marketing, sales, and consumption. With Congress set to reauthorize the Farm Bill later this year, federal regulations may soon provide additional guidance.

As the legal landscape continues to evolve, staying informed is crucial for consumers, businesses, and regulators alike. These proposed laws aim to strike a balance between supporting the hemp industry and protecting public health, ensuring that hemp-derived consumable products are safe, properly labeled, and responsibly marketed.

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