There was a time when possessing any amount of cannabis was a criminal offense. The laws are now blurred. Certain states have enacted adult use while others grant medical patients access. Meanwhile, there are localities in Texas and other states upholding fully prohibitory weed laws that have voted in decriminalization initiatives to decrease the dangers of having a bit of weed.
With all these varying states of legality, police must be having a heck of a time figuring out who to bust and who to let go. That rings especially true thanks to the proliferation of the intoxicating hemp market. For some time, these businesses operated without repercussions, much to the ire of some licensed brands. Now, that time may be coming to an end.
As raids on smoke shops, bodegas, and corner stores selling hemp products are publicized from Oregon to New York, one may ask, “Is it the end of the grey area?”
What is intoxicating hemp?
The 2018 Farm Bill legalized hemp for industrial use and CBD products. This opened the door to national eCommerce reach for CBD brands and a loophole for nimble business owners. Brands started selling hemp-derived THC products a few years ago after discovering a few ways to create THC out of Farm Bill-compliant hemp.
Whether the products are crafted from full spectrum hemp using isomerization or the extractor is using a wicked-huge amount of hemp testing at 0.3 percent THC to get enough to make a person feel high–it has posed an issue for law enforcement officers.
Hemp busts and bans become priority
Adult-use cannabis brands and hemp companies are operating under very different guidelines. From regulations to taxation, it has looked a lot easier to make money in hemp rather than becoming a licensed operator. However, this heyday could be coming to a close as various state governors sign intoxicating hemp bans into law and police continue a quiet assault on bad actors.
New York has been battling unlicensed operators through a government-backed initiative. Operation Padlock opened the door for police to close unlicensed hemp and THC stores after issuing a warning. The state is adamant that many of the products they’ve seized are adorned with child-luring cartoons or look like traditional candy wrappers with punny names.
By July, NYC Mayor Eric Adams claimed that the state had seized $41M in unregulated products and issued $65M in fines. The operation has already lost in court as affected businesses file lawsuits.
On the other coast, Laguna Beach, Calif. opted out of allowing legal cannabis businesses from taking root there. Recently, the city police department busted a local smoke shop for distributing cannabis and psilocybin. The raid rendered cannabis flower, extracts, and edibles alongside psilocybin chocolates and candy. According to a Laguna Beach Police Department Instagram post, the raid was made possible by a citizen tip. An image shared of the bust shows the packaging does not have any child-attracting features.
The future of hemp is anyone’s guess
A Google business listing for the raided smoke shop shows it is permanently closed. Other California smoke shops and corner stores selling intoxicating hemp products dealt with a reckoning when Assembly Bill 8 took effect in September. The bill made the sale of intoxicating hemp illegal, and police began seizing hemp products from unregulated stores immediately.
LA Times reports that from September to November, law enforcement confiscated almost 5500 hemp products from 102 stores. The stores filed suit against the city, citing a lack of warning. That suit has since been blocked. According to the Times, store owners have been compliant overall as the new laws become solidified into reality. SFGate reported that this has not stopped regulated brands from moving into the hemp space, they simply don’t sell in California.
Many other states are figuring out the best action for this growing space, generally by regulating or banning it. Around 15 states have made hemp-THC illegal, and other lawmakers are attempting to do the same. In Texas, a potential ban has resulted in mounting activist efforts opposing the move. That story is echoed in different fonts from state to state.
These coast-to-coast case studies raise many questions but seem to illuminate one answer. Efforts from lawmakers indicate the government may back the regulated cannabis industry as it attempts to untie the knot of regulatory confusion woven around intoxicating hemp. Only time will tell what the hemp space will look like once the thread is pulled.
