Cannabis industry divides following Governor’s Executive Order
Governor Mike Parson, alongside Attorney General Andrew Bailey and other state officials, held a press conference Wednesday to announce measures addressing the proliferation of unregulated cannabis products in Missouri. This initiative aims to mitigate the risks posed by these products, particularly to children.
Governor Parson highlighted that while marijuana for adult and medical use is legal and regulated in Missouri, the lack of federal and state standards for hemp-derived compounds, such as delta-8 and delta-10 THC, has led to a surge in unregulated products.
These compounds, which have similar intoxicating effects to marijuana, are readily available in liquor stores, gas stations, and online, without any legal age restrictions, quality controls, or regulation in the state.
“These products are marketed in eye-catching ways that attract young customers,” Parson said, emphasizing the danger of children mistaking these products for regular candy. “Consumption of these unregulated products can lead to poisoning, unintended intoxication, and severe health risks.”
Attorney General Bailey supported Parson’s concerns by referencing incidents where children across the country were hospitalized after consuming THC-laced edibles.
“Missourians are not immune from this national public health crisis,” Bailey said. “We must end deceptive business practices that profit from illicit substances at the expense of children’s safety.”
Department of Health and Senior Services Director Paula Nickelson underscored the unique health risks posed by chemically derived cannabinoids from hemp. She cited a 600% increase in emergency room visits and hospitalizations among children under five due to cannabis poisoning since 2018.
In response to these concerns, Parson announced executive order 24-10, effective September 1, 2024, this order prohibits the sale of unregulated psychoactive hemp products unless sourced from an approved provider. Enforcement will be carried out by the Missouri Division of Alcohol and Tobacco Control (ATC).
ATC Supervisor Michael Leara explained that the division has jurisdiction over approximately 17,000 licensed facilities in Missouri and will work to ensure compliance with the new order. Leara also acknowledged the challenges faced by responsible retailers who have independently imposed age restrictions and scrutinized their product sources.
“We will use the month of August to educate our licensed liquor retailers across the state about the governor’s order,” Leara said. “They have one month to voluntarily remove these products from their premises.”
During the press conference, representatives from the hemp industry expressed their frustration. They argued that they had been advocating for regulations since 2022 but felt their efforts had been ignored.
Parson emphasized the urgency of protecting children’s health over industry concerns.
“We cannot allow the safety of our children to be compromised by unregulated products,” Parson asserted. “This is common sense 101.”
Insights and reactions
“Law enforcement from across Missouri has been calling on policymakers to take greater steps to protect the health and public safety of Missourians from these untested, unsafe products, which are actively being marketed to Missouri kids. As one of if not the most regulated industry in the state, we agree with law enforcement on this issue and support the steps announced today,” Missouri Cannabis Trade Association said in a statement.
John Mueller, CEO of Greenlight Dispensary, also lauded the Governor’s decision.
“Greenlight commends Governor Mike Parson’s decision to ban the sale of unregulated and untested hemp-derived products that contain compounds like Delta-8. This decision is a critical step towards protecting Missouri’s residents, especially our youth. These products have been far too easily accessible, and their deceptive packaging has led to numerous adverse health incidents.
“Cannabis products are subject to strict regulatory oversight. Our products at Greenlight undergo rigorous testing for approximately 54 different impurities, ensuring that Missouri patients and consumers have access to safe, high-quality options. This level of scrutiny should be the standard across the industry.
“Greenlight stands ready to support the implementation of these new regulations. The governor’s order will help create a safer environment for consumers while also leveling the playing field for responsible, law-abiding cannabis businesses in our market.
“We commend Governor Parson for his leadership on this critical issue and look forward to continuing our work in providing Missourians with safe, regulated cannabis products that meet the highest standards of quality and safety.”
While the marijuana industry largely cheered the executive order, those in the hemp industry expressed disappointment and disapproval.
CBD Kratom issued a statement to Greenway in response to the Governor’s mandate.
“CBD Kratom condemns the fear-mongering created by the Governor’s Executive Order 24-10 and comments made during the August 1, 2024 press conference regarding federally legal cannabinoids. We encourage the Governor’s and Attorney General’s offices to use currently available laws, including deceptive practices under the FTC Act, to combat trademark infringement products, such as the “Lifesavers” held by the Governor during the press conference.
The statement continues, “CBD Kratom expresses disappointment with Governor Parson’s Executive Order 24-10 as it does not nearly address the safety aspects the industry has been supportive of, such as age restrictions and proper labeling. If the intention was to keep certain products out of children’s hands and promote public safety, the Governor’s office would have simply implemented an age restriction, which it did not do. Instead, the Executive Order attempts to monopolize where specific products can be sold and paints safe, federally legal products as harmful, thus causing fear and confusion among responsible consumers. As Missouri’s oldest and most well-respected cannabinoid hemp retailer, CBD Kratom looks forward to engaging in our continued efforts to educate and put forth commonsense regulation.”
The US Hemp Roundtable also weighed in calling for action and advocacy, releasing the following statement, “The war on hemp has found its way to the Show Me State. Under an executive order signed TODAY by the Governor of Missouri, food products that contain delta-8 THC, delta-10 THC, THC-O, THCP, THCV, HHC, or similar substances would be banned, deemed unapproved and adulterated. According to the order, these substances are psychoactive cannabis products for which there are no safety standards, packaging requirements, or other regulations in Missouri.
“FAQs released with the order state that CBD, CBN, and similar substances that do not have psychoactive effect are not included. Unfortunately, the order sweeps in some federally legal hemp products.
“Over the last few years, marijuana industry-funded efforts to pass legal bans on hemp products have rightly failed in the Missouri legislature. This Hail Mary action by a lame-duck Governor who leaves office in a few months is unprecedented across the country.
“This ban will not take effect until September 1; there are necessary regulatory steps that would need to occur. More significantly, a legal challenge to this highly unorthodox action is expected. We would hope to prevent this from devastating the hemp products industry in Missouri and eliminating economic opportunities for hemp farmers and small businesses.”
While the most significant immediate impact will be on those retailers with liquor licenses that were also selling intoxicating hemp products, hemp advocates and industry participants told Greenway that though the order is not a full or complete ban on hemp-derived cannabis products, the limitations to product production will not only impact operators and businesses but their consumers as well.
Hemp industry leaders say they are disheartened at any restriction of product and point to a lack of age restriction as a key piece of context for addressing the predominant problem addressed by the Governor during his press conference, the access of intoxicating products to minors.
Hemp advocates and industry participants told Greenway that the executive order does not adequately address the industry’s primary safety concerns, such as age restrictions and proper labeling. They expressed frustration that the order seems to favor marijuana companies while not implementing straightforward solutions to keep certain products out of children’s hands.