OPINION: SB903 is a calculated attack on the small hemp industry
Virginia made selling Delta-8 THC and certain CBD products illegal on July 1. Was this move about safety or something else?
SB903 started as a way to mandate child-proof packaging on hemp products and prevent the advertising of hemp products to children under 21 — values that most reputable dedicated hemp companies were complying with anyway. However, through the 2023 legislative session, this bill became more than a straightforward safety regulation and evolved into another leg up for multi-state medical cannabis corporations. SB903 will create a much more dangerous and unregulated environment by placing unenforceable restrictions on hemp products. As Virginia drags their feet on recreational cannabis legislation, Virginians are becoming increasingly impatient and confused.
What’s this really about?
These are the major changes enacted with SB 903:
Mandates child-proof packaging
Requires a $1,000 license to retail hemp products
Redefines hemp as cannabis
Sets an arbitrary THC limit on CBD products (25:1 CBD:THC ratio), making them less effective and less beneficial
$10,000/day civil penalties with jail time
I would love to be able to say that this bill was based solely on scientifically-backed ideas and consumer safety, but that’s just not the case. To restrict CBD products so drastically is an obvious ploy initiated by medical industry lobbyists to cripple the small, independent cannabis industry that’s been patiently waiting for reasonable rec sales legislation.
Besides the child-proof packaging requirement and the thousand-dollar license limiting access to the hemp market (and thus hopefully ridding the market of bad actors), the rest is simply over-regulation.
A handful of negative impact statements (in this case, kids getting access to products) would not usually be cause for such sweeping and drastic regulations on a mostly innocent industry. If this was anything but the cannabis industry, such draconian legislation would not have made it this far.
This is a perfect example of how strong the stigma surrounding cannabis still is. (More people have died from drinking too much water than have died from consuming too much cannabis. Cannabis overdose deaths = 0.)
Adult consumers and law-abiding hemp companies should not be punished because of a minority in the industry that doesn’t care what happens after a product leaves its shelves in the hands of a consumer. The $1,000 retail hemp license alone would have been enough to mitigate these issues.
Wait, I thought Virginia legalized marijuana in July of 2021?
Well, yes and no. Virginia legalized possession and adult use only and has not established an infrastructure for adult sales.
From the Virginia Cannabis Control Authority’s website:
Legal:
Adults 21 years and older may possess not more than one ounce of cannabis on their person or in any public place.
Generally, adults 21 years and older may use marijuana in private residences. However, nothing prohibits the owner of a private home from restricting the use of marijuana on its premises.
Adults 21 and over may grow up to four plants per household (not per person) according to specified requirements.
“Adult sharing” or transferring one ounce or less of marijuana between persons 21 or older without remuneration is legal. "Adult sharing" does not include instances in which
marijuana is given away contemporaneously with another reciprocal transaction between the same parties;
a gift of marijuana is offered or advertised in conjunction with an offer for the sale of goods or services; or
a gift of marijuana is contingent upon a separate reciprocal transaction for goods or services.
Illegal:
Except for possession by a person in his residence or possession by a licensee in the course of his duties related to such licensee's marijuana establishment, any person who possesses on his person or in any public place
more than four ounces but not more than one pound of marijuana or an equivalent amount of marijuana product as determined by regulation promulgated by the Board is guilty of a Class 3 misdemeanor and, for a second or subsequent offense, a Class 2 misdemeanor and
more than one pound of marijuana or an equivalent amount of marijuana product as determined by regulation promulgated by the Board is guilty of a felony punishable by a term of imprisonment of not less than one year nor more than 10 years and a fine of not more than $250,000, or both.
It remains illegal for anyone under the age of 21 to consume, purchase, or possess marijuana or to attempt to consume, purchase, or possess any amount of marijuana.
It remains illegal to distribute or sell marijuana and/or to possess any amount of marijuana with the intent to distribute or sell it. This prohibition applies equally to businesses that will not be permitted to sell, “gift,” or in any other way distribute marijuana.
Existing safety measures remain in place, including prohibiting the use of marijuana while driving a motor vehicle or while being a passenger in a motor vehicle being driven; possessing marijuana on school grounds, while operating a school bus, in a motor vehicle transporting passengers for hire, or in a commercial vehicle.
It remains illegal to consume marijuana or offer marijuana to another person in any public place.
What about recreational sales?
All bills establishing a structure for an open recreational sales market were killed in the 2022 and 2023 legislative sessions.
To purchase cannabis legally in Virginia, you must 1) be a resident of Virginia, 2) get a medical card, and 3) go to one of the corporatized medical cannabis dispensaries.
Downsides to the Virginia medical cannabis program:
No competition exists for these cannabis dispensaries, so they charge high prices for sub-par products.
Prices are such that they are not accessible for most cannabis users, especially if they are on disability, or government assistance, or have a limited income.
When it comes to educating patients on products and making recommendations, dispensary staff has been reported to fall short of what the community requires, especially when many of those who have no other choice but to visit a dispensary often do not have friends in the cannabis community to talk to about their use.
Having a medical cannabis card may limit access to certain gun permits. Having guns and marijuana together is very murky territory on the federal level.
Dispensaries have fallen behind in offering products that contain other major and minor cannabinoids that have proven to be beneficial for therapeutic uses, such as CBD, CBN, CBG, Delta-8, and THC-V.
How will SB903 be enforced?
Not well.
One of the things that was extremely frustrating about this article I was featured in back in May was the opposing opinion:
The Prevention Council of Roanoke County says it’s important these products are kept out of the hands of children.
“There’s just too many questions at this point,” said Nancy Hans, executive director of the organization. “We’re very concerned about how easy it is to access for kids and teens and even adults. I mean, I think there are adults that think because it’s on the shelf, that it’s regulated, and none of it is.”
The statement that hemp products were not regulated at all is completely false.
VDACS (Virginia Department of Agriculture and Consumer Services) already had the power to regulate hemp products and enforce certain rules and standards before the passing of SB903. The problem is their budget limits their enforcement power. There are many CBD stores, vape shops, and gas stations selling various gray-area products, and not enough VDACS staff to properly inspect all of them throughout the year.
Higher consequences for not complying with the new regulations will remove dedicated hemp businesses that already care about safety from the marketplace, while those who don’t care as much about safety will continue to sell whatever they want because they know the enforcement is poor and they’re willing to take the chance that VDACS won’t catch them. This issue is also extremely low on law enforcement’s priorities because hemp enforcement is technically under VDACS jurisdiction. Unless law enforcement considers those products “marijuana” instead of hemp, businesses operating in the dark-gray area will fly under the radar.
From the consumer perspective, not being able to buy these products from a trusted boutique shop will force them to go to the black market or to the dispensary. Per the aforementioned cons of dispensaries, I predict most consumers will resort to the black market.
I also predict we will have another uptick in reports of people getting sick from black-market THC cartridges. Remember the Vitamin E acetate in vapes scares? Yeah, that had basically nothing to do with the nicotine vaping industry and everything to do with illegitimate manufacturers putting unsafe THC vape products out into the community.
Will SB903 be reversed?
Probably not. Just because it’s not fair doesn’t mean it will go away.
It was extremely frustrating to watch politicians (both Republicans and Democrats) pushing this bill through the session while saying, “Well, we don’t think this bill is perfect, but we can go back and fix it later.” This might be the most idiotic thing I’ve ever heard. Our representatives should know better than anyone that changing the law is easier said than done.
Part of SB903’s mandates have yet to be established, but compliance with the new law is expected in the meantime. VDACS is still working on setting up the department responsible for issuing the new $1,000 license required to retail hemp products, due in the fall of 2023.
What you CAN do: Your vote matters! In this year’s election, pay attention to who has fought for and against the cannabis industry. Use your vote to put into office those who will stick up for the cannabis industry.
The Virginia Hemp Coalition issued a 2023 Voter Guide, which rates each of our representatives on a scale of A to F. A being “Always looking out for us” and F being “Always working against us.” There are only 6 total that received an A rating, which is pretty disappointing.
How are Virgina hemp companies adapting to SB903?
Many companies will be unable to adapt and will be forced to close. Many jobs will be lost. I also predict a massive drop in tax revenue.
New compliant 25:1 CBD:THC products have entered the market. For example, a 10mg dose of THC will also contain 250mg of CBD. Such products can still get you high, but they will arguably be much less effective due to CBD’s potential to partially modify and slightly reduce the effects of THC.
I also have concerns about the long-term effects on the liver and kidneys since a study regarding the pharmaceutical synthetic copy of CBD has shown some negative effects on liver function in very high doses. While we can’t be sure whether this is true for naturally occurring CBD or not, such high doses of CBD may have other unwanted side effects, such as diarrhea and stomach discomfort.
As for CBD products, many are being reformulated to comply with the new regulation. I have concerns that some of my customer’s favorite full-spectrum CBD products will have to be more heavily refined and, therefore, not as natural or effective as products we’ve carried in the past.
