Hemp has gone mainstream in Georgia, with age limits, product testing and a growing acceptance of the newly regulated industry.
Since Georgia’s new hemp law went into effect Oct. 1, thousands of businesses across the state must comply with requirements on hemp products, including limiting sales to consumers over age 21, mandating product testing and banning some products, such as prerolled, smokable hemp cigarettes.
The regulations give the industry more legitimacy, but they also have limited consumer choices and harmed some businesses while benefiting others.
“The whole point of the law was protecting the public. Consumers are able to see what’s legal and illegal, and businesses are testing for that,” said Katherine Russell, director of policy for the Georgia Department of Agriculture. “Whenever you’re dealing with an emerging industry, it’s all new and it takes a while to figure out.”
There are now 4,100 licensed hemp businesses in Georgia. Most of them are retailers, but that number includes farmers, wholesalers, manufacturers and processors, according to the Department of Agriculture.
Regulation came with consequences both for businesses and critics of hemp products, which were allowed under the 2018 Farm Bill, a federal law that legalized hemp farming and distribution. Traditional marijuana remains illegal for recreational purposes under federal and Georgia laws.
Credit: Georgia Hemp Company
Credit: Georgia Hemp Company
Joe Salome, co-owner of the Georgia Hemp Co., said his business has suffered because it can no longer sell hemp in its flower form, and edibles are only allowed as gummies. Tinctures, drinks and creams are also permitted. Meanwhile, some gas stations have continued to sell products that are supposed to be prohibited, he said.
“We do want to see this normalized. But overregulating the industry, it’s like having a bunch of different types of milk but you can only sell one type,” Salome said. “Limiting options for businesses and consumers doesn’t help spur growth.”
Salome said Georgia should allow more kinds of edibles, larger serving sizes and hemp flower products.
Opponents of widespread hemp usage said Georgia’s law effectively legalized recreational marijuana by regulating delta-8 THC, which has a slightly different chemical structure than delta-9 THC, a compound in marijuana that produces a high.
For example, a product would be legal in Georgia as long as it has less than the federal limit of 0.3% delta-9 THC, but it could also contain 90% delta-8 THC, said Gregg Raduka, a board member for Georgians for Responsible Marijuana Policy, which opposes legalization.
A high level of delta-8 THC, which is allowed, would increase the potency of a hemp product even though it contained a low amount of delta-9 THC. Both forms of THC are tested in hemp products and publicly disclosed, according to state rules.
“The problem is there’s no limit to the THC content,” Raduka said. “The law, while it has excellent intentions, is, in some sense, meaningless when it comes to total THC content.”
Credit: Austin Steele
Credit: Austin Steele
Because retail licensing wasn’t required until the General Assembly approved Senate Bill 494 this year, it’s unclear how much the hemp industry has grown over the years. Georgia has allowed hemp farming under a state law approved in 2019.
Most businesses are complying with the law’s requirements, especially after they’re visited by an enforcement officer, Russell said. Stricter enforcement will begin soon.
Convenience stores are educating themselves to make sure they’re following the law before selling hemp products, said Angela Holland, president of the Georgia Association of Convenience Stores.
“They’re going to be on the hook for what’s on their shelves when they sell it,” Holland said. “They need to know it’s labeled correctly and that it meets the standards.”
Georgia is one of at least 34 states that allow hemp cultivation, according to the National Conference of State Legislatures. While Georgia prohibits recreational marijuana use, 24 states allow it.
More than 25,000 Georgians with physician-approved conditions are allowed to use medical marijuana, which can contain a higher level of delta-9 THC, up to 5%.
Regulation will result in fewer illicit products and an expansion of approved hemp products for sale, Russell said. Nonalcoholic hemp beverages are “the next big thing,” she said. Alcoholic hemp beverages aren’t allowed.
“There’s going to continue to be growth, and people are going to feel more confident selling in that space,” Russell said. “Because it’s becoming more legitimate, we’re seeing participants jump in from other industries like the alcohol industry.”
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