Delaware lawmakers are currently debating competing legislative proposals aimed at establishing a regulatory framework for hemp-derived THC products. With the legislative session nearing its conclusion, four distinct bills have been introduced to address the sale and oversight of intoxicating compounds derived from hemp, which have become widely available outside the state’s regulated marijuana market.
The proliferation of these products, including gummies, vapes, and infused beverages, stems from a provision in the 2018 U.S. Farm Bill. This federal legislation defined hemp as a cannabis plant containing 0.3 percent or less THC by dry weight, inadvertently creating a pathway for the chemical conversion of non-intoxicating cannabidiol (CBD) into intoxicating substances like delta-8 and delta-9 THC, provided the source hemp meets the federal threshold. This regulatory gap has led to a fast-growing industry, with products sold in various retail outlets, including smoke shops and convenience stores, often without the stringent oversight applied to licensed marijuana sales, as reported by Marijuana Moment.
Legislative Proposals for Hemp-Derived THC Products
House Bill 395: Integration into Marijuana Framework
Representative Nnamdi Chukwuocha (D-Wilmington) introduced House Bill 395, which proposes to fold intoxicating hemp products into Delaware’s existing licensed marijuana system. The bill seeks to expand the definition of THC to encompass various forms of the compound and establish a stricter 0.4 milligram total THC limit for finished products. This threshold aligns with federal language passed last fall, which is scheduled to take effect in November, aiming to address the “hemp loophole.”
According to Rep. Chukwuocha, the bill’s objective is to align Delaware’s regulations with federal standards, enhance consumer safety, and restrict access for minors. Violations under this proposed legislation involving intoxicating products would generally be classified as a Class A misdemeanor, potentially escalating to a Class G felony in specific circumstances, such as proximity to schools or daycares.
House Bill 401: A Separate Regulatory Path
In contrast, House Bill 401, sponsored by Representative Sean Lynn (D-Dover) and State Senator Kyra Hoffner (D-Smyrna), proposes a separate licensing system specifically for hemp-derived THC products, excluding beverages. This bill would enable existing hemp retailers to apply for licenses through the Office of the Marijuana Commissioner, allowing them to sell products containing no more than 10 milligrams of THC to adults aged 21 and older. Gas stations, grocery stores, and convenience stores would be ineligible for these licenses.
Rep. Lynn stated that his bill aims to acknowledge the role of existing hemp store owners as “pioneers” in the market. The measure also mandates lab testing for potency and contaminants, requires warning labels, and implements packaging rules designed to deter appeal to children. Additionally, HB 401 would impose a 6 percent state excise tax on retail hemp sales, which is lower than the 15 percent tax applied to marijuana sales.
Industry and Regulatory Perspectives
The debate surrounding these bills highlights a division among stakeholders. Delaware Marijuana Commissioner Joshua Sanderlin expressed support for HB 395, arguing that intoxicating hemp products should be regulated similarly to marijuana due to their shared plant origin and psychoactive effects. Commissioner Sanderlin also noted that unlicensed hemp retailers are undercutting the state’s regulated marijuana industry by operating without comparable rules for testing, labeling, taxation, and age restrictions. The Delaware Division of Tobacco and Alcohol Enforcement (DATE) has already issued 70 cease-and-desist letters to over 60 businesses selling THC products, according to DATE spokesman Lt. Michael Loiseau.
Conversely, some legislators and hemp retailers have voiced concerns about the impact of HB 395 on small businesses already operating in the hemp market. Joseph Daniels, owner of Hidden Stash, a smoke shop in Laurel, asserted that his products are tested. Marijuana retailers, however, generally favor HB 395, while hemp retailers and smoke shop owners oppose it.
HB 401 has also faced opposition, particularly from licensed marijuana businesses. James Brobyn, Director of the Delaware Cannabis Industry Association and owner of Field Supply dispensary, criticized the bill, suggesting it would provide an “easy, low-cost path” for hemp retailers compared to the stricter zoning, security, and testing requirements faced by marijuana licensees. State alcohol and tobacco regulators also opposed HB 401, citing concerns over a lack of clear enforcement authority for their agency and the bill’s narrow focus on delta-9 THC, potentially leaving loopholes for other intoxicating hemp-derived compounds.
Broader Context of Hemp-Derived Cannabinoids
A separate piece of legislation, sponsored by Senator Hoffner, aims to clarify the legal distinction between hemp-derived products and marijuana under Delaware law. This bill also proposes testing standards and would prevent law enforcement from using the mere presence of hemp products as the sole basis for arrest, search, seizure, or criminal prosecution. This legislative effort underscores the ongoing complexity in regulating the evolving market for hemp-derived THC products and ensuring consistent application of state and federal guidelines.
Disclaimer: This article is for informational purposes only and does not constitute medical advice. Hemp Gazette does not provide medical recommendations, diagnoses, or treatment plans. Always consult a qualified healthcare practitioner before making any decisions regarding your health or any medical condition. Statements concerning the therapeutic uses of hemp, cannabis, or cannabinoid-derived products have not been evaluated by Australia’s Therapeutic Goods Administration (TGA). Medicinal cannabis products in Australia are accessed via prescription pathways under TGA regulation.
