Baltimore, MD--A recreational cannabis bill progressing through the Maryland legislature has alarmed sellers of hemp-derived products such as CBD and Delta-8, who fear the bill could put them out of business.
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The bill establishes a regulatory framework for the adult-use cannabis industry, with a significantly lower THC cap than what is currently allowed under federal law. To sell products above the cap, sellers must obtain a Maryland cannabis license, a competitive and potentially expensive process. Nicholas Patrick, who leads an industry group for hemp-derived products, warns that this cap could be disastrous for Maryland's growing CBD and Delta-8 industries.
He owns three stores called Embrace CBD, with at least 60 similar stores across Maryland. Most of their products would be considered illegal under the proposed law. The CBD and Delta-8 industries expanded after the 2018 federal farm bill legalized hemp production. Unlike cannabis, hemp has low amounts of intoxicating compounds and various industrial uses. Hemp can be processed if the plant and hemp-derived products contain less than 0.3% Delta-9 THC by weight. Processors can extract and synthesize various cannabinoids from hemp, such as Delta-8, Delta-10, CBD, and CBG, which have therapeutic and intoxicating effects.
These products are sold in specialty stores and have been largely unregulated in Maryland. Patrick advocates for creating a new class of licenses that would allow stores like his to continue selling CBD and Delta-8 products and be regulated without needing an adult-use or medical cannabis license. However, with only a few weeks left in the legislative session, it seems unlikely that lawmakers will rally support for the Delta-8 and CBD industries. As legal cannabis is expected to grow into a multibillion-dollar industry in Maryland, lobbying efforts have increased, with nearly a quarter-million dollars spent on lobbying last year.
Learn more in this report.