The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: CS/SB 1698
INTRODUCER: Agriculture Committee and Senator Burton
SUBJECT: Food and Hemp Products
DATE: January 29, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Becker Becker AG Fav/CS
2. Becker Yeatman FP Pre-meeting
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1698 makes a number of changes to s. 581.217, F.S., the State Hemp Program.
The bill modifies the definition of “attractive to children” to include containers displaying toys,
novel shapes, animations, promotional characters, licensed characters, or other features that
specifically target children, or, for hemp extracted intended for inhalation, the addition of any
flavoring. It revises the definition of “hemp” and “hemp extract” and provides a definition of
“total delta-9-tetrahydrocannabinol concentration.”
The bill adds requirements for the manufacture, delivery, hold, and offer for sale to the
regulation of the distribution and sale of hemp extract. It specifies that if a batch is sold at retail
that it must meet the new requirements for total delta-9-tetrahydrocannabinol concentration
limits. It also requires such products to be sold in a container that includes the toll-free telephone
number for the national Poison Control Help line.
The bill clarifies that hemp extract may only be sold to or procured by a business in this state if
that business is properly permitted. A business or food establishment may not possess hemp
extract products that are attractive to children.
The bill prohibits the department from granting permission to remove or use, except for disposal,
hemp extract products subject to a stop-sale order which are attractive to children until the
department determines that the hemp extract products comply with state law.
REVISED: BILL: CS/SB 1698 Page 2
The bill prohibits an event organizer from promoting, advertising, or facilitating an event where
hemp extract products sold that do not comply with general law or are sold by a business that is
not properly permitted.
Before an event where hemp extract products are sold or marketed, an event organizer must
provide the department with a list of the businesses selling or marketing hemp extract products at
the event and verify that each business is only selling hemp products from an approved source.
The event organizer must ensure that each participating business is properly permitted.
The bill takes effect July 1, 2024.
II. Present Situation:
Industrial Hemp
Industrial hemp is a Cannabis sativa plant (cannabis) that has been cultivated for approximately
10,000 years as a fiber and grain crop. It is used for textiles, building materials, seed oil, and
essential oil.
1
Cannabis
Cannabis is a Schedule I controlled substance.
2
It is a felony of the third degree
3
to sell,
manufacture, deliver, or possess with intent to sell, manufacture, or deliver, cannabis in Florida.
4
As a controlled substance in chapter 893, F.S., “cannabis” is defined to mean: all parts of any plant
of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part
of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the
plant or its seeds or resin. The term does not include “marijuana,” as defined in s. 381.986, F.S., if
manufactured, possessed, sold, purchased, delivered, distributed, or dispensed, in conformance
with s. 381.986, F.S., [the Compassionate Medical Cannabis Act of 2014], hemp as defined in
s. 581.217, F.S., [the state hemp program], or industrial hemp as defined in s. 1004.4473, F.S.,
[industrial hemp pilot projects].
5
Medical Marijuana
On November 4, 2016, Amendment 2 was approved by the electors and is codified in Article X,
section 29, of the Florida Constitution. This section of the constitution became effective on
January 3, 2017, and created several exemptions from criminal and civil liability for:
Qualifying patients medically using marijuana in compliance with the amendment;
Physicians, solely for issuing physician certifications with reasonable care and in compliance
with the amendment; and
1
See University of Florida, UF/IFAS Industrial Hemp Pilot Project at: https://programs.ifas.ufl.edu/hemp/ (last visited
January 22, 2024).
2
Section 893.03(1)(c)7., F.S.
3
Section 775.082, F.S., provides that a felony of the third degree is punishable by a term of imprisonment not to exceed
5 years. Section 775.083, F.S., provides that a felony of the third degree is punishable by a fine not to exceed $5,000.
4
Section 893.13(1)(a)2., F.S.
5
Section 893.02(3), F.S. BILL: CS/SB 1698 Page 3
Medical marijuana treatment centers (MMTCs), their agents, and employees for actions or
conduct under the amendment and in compliance with rules promulgated by the Florida
Department of Health.
Subsequently, the Legislature passed SB 8-A in Special Session A of 2017.
6
The bill revised the
Compassionate Medical Cannabis Act of 2014
7
in s. 381.986, F.S., to implement Article X,
section 29 of the Florida Constitution.
The term medical marijuana includes two distinct forms of the plant genus Cannabis:
Marijuana without any limitation or restriction on the percentage of THC;
8
and
“Low-THC cannabis” in which the percentage of THC is limited to 0.8 percent or less and
has more than 10 percent of cannabidiol
9
weight for weight.
10
The Coalition for Medical Marijuana Research and Education located at the H. Lee Moffitt Cancer
Center and Research Institute, Inc., is authorized to conduct medical marijuana research and
education.
11
A MMTC and a qualified patient or caregiver are specifically exempt from the criminal prohibition
against the possession of cannabis.
12
2014 Federal Farm Bill and State Industrial Hemp Pilot Programs
The Agricultural Improvement Act of 2014 (2014 Farm Bill) defined industrial hemp and allowed
state departments of agriculture or universities to grow and produce industrial hemp as part of
research or pilot programs. Specifically, the law allowed universities and state departments of
agriculture to grow or cultivate industrial hemp if:
The industrial hemp is grown or cultivated for purposes of research conducted under an
agricultural pilot program or other agricultural or academic research; and
The growing or cultivating of industrial hemp is allowed under the laws of the state in which
such institution of higher education or state department of agriculture is located and such
research occurs.
13
The 2014 Farm Bill defines “industrial hemp” to mean:
…the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and
all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether
6
Chapter 2017-232, Laws of Fla.
7
Chapter 2014-157, Laws of Fla.
8
THC, or tetrahydrocannabinol, is the main active ingredient in cannabis and is responsible for most of the psychological
effects of cannabis.
9
Cannabidiol (CBD) is a chemical compound, known as a cannabinoid, found in cannabis. CBD does not have the same
psychoactivity as THC. See Michael J Breus, Despite What You May Think... CBD Is Not Weed (Sept. 20, 2018), Psychology
Today, available at: https://www.psychologytoday.com/us/blog/sleep-newzzz/201809/despite-what-you-may-think-cbd-is-
not-weed (last visited January 22, 2024).
10
See s. 381.986(1)(e) and (f), F.S.
11
Section 1004.4351, F.S.
12
See s. 381.986(14), F.S.
13
Agricultural Improvement Act of 2014, Pub. L. No. 113-79, s. 7606, 128 Stat. 912 (2014) (codified at 7 U.S.C. s. 5940). BILL: CS/SB 1698 Page 4
growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than
0.3 percent on a dry weight basis.
14
Section 1004.4473, F.S., authorizes the Florida Department of Agriculture and Consumer Services
(department) to oversee the development of industrial hemp pilot projects for the Institute of Food
and Agricultural Sciences (IFAS) at the University of Florida, Florida Agricultural and Mechanical
University, any land grant university in the state that has a college of agriculture, and any Florida
College System institution or state university that has an established agriculture, engineering, or
pharmacy program.
15
The purpose of the pilot projects is to cultivate, process, test, research, create,
and market safe and effective commercial applications for industrial hemp in the agricultural sector
in this state. The department has adopted a rule addressing safety, compliance, and accountability
and other concerns.
16
2018 Federal Farm Bill
In the Agricultural Improvement Act of 2018 (2018 Farm Bill), the U.S. Congress legalized
industrial hemp as an agricultural product by removing hemp’s classification as a controlled
substance.
17
The 2018 Farm Bill defines “hemp” to mean:
…the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and
all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether
growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than
0.3 percent on a dry weight basis.
18
The 2018 Farm Bill allows a state department of agriculture or an Indian tribe to submit a plan to
the United States Secretary of Agriculture and apply for primary regulatory authority over the
production of hemp in their state or tribal territory. A state or tribal plan must include:
A procedure for tracking land upon which hemp will be produced;
Testing methods for determining THC concentration levels of hemp;
Methods for effective disposal of noncompliant products;
Enforcement procedures;
Inspection procedures; and
Certification procedures for the persons authorized to produce hemp producers, test hemp
products, inspect hemp producers, and enforce the provisions of the state or tribal plan.
19
14
Id.
15
Section 1004.4473(2)(a), F.S.
16
Fla. Admin. Code R. 5B-57.013 (2018).
17
Agricultural Improvement Act of 2018, Pub. L. No. 115-334, s. 12619, 132 Stat. 409 (2018) (codified at
21 U.S.C 802(16)).
18
Agricultural Improvement Act of 2018, Pub. L. No. 115-334, s. 10113, 132 Stat. 409 (2018) (codified at 7 U.S.C.
s. 1639o).
19
Agricultural Improvement Act of 2018, Pub. L. No. 115-334, s. 10113, 132 Stat. 409 (2018) (codified at 7 U.S.C.
s. 1639p). BILL: CS/SB 1698 Page 5
State Hemp Program
The state hemp program was created within the Department of Agriculture and Consumer
Services (department) to regulate the cultivation of hemp in Florida.
20
Section 581.217(3)(e), F.S., defines the term “hemp” to mean:
…the plant Cannabis sativa L. and any part of that plant, including the seeds thereof, and
all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers thereof,
whether growing or not, that has a total delta-9-tetrahydrocannabinol concentration that
does not exceed 0.3 percent on a dry-weight basis, with the exemption of hemp extract,
which may not exceed 0.3 percent total delta-9-tetrahydrocannabinol on a wet-weight
basis.
Section 581.217(3)(f), F.S., defines the term “hemp extract” to mean “a substance or compound
intended for ingestion, containing more than trace amounts of cannabinoid, or for inhalation which
is derived from or contains hemp and which does not contain other controlled substances.” The
term does not include synthetic cannabidiol or seeds or seed-derived ingredients that are generally
recognized as safe by the United States Food and Drug Administration.
21
Products that are intended
for inhalation and contain hemp extract may not be sold in this state to a person who is under
21 years of age.
22
The department was required to seek federal approval of the state plan for the regulation of the
cultivation of hemp with the United States Secretary of Agriculture (USDA) in accordance with
the 2018 Farm Bill within 30 days of adopting rules.
23
A license is required to cultivate hemp
24
and to obtain a license, a person must apply to the department and submit a full set of fingerprints.
25
A person seeking to cultivate hemp must provide the department with a legal land description and
GPS coordinates of where the hemp will be cultivated.
26
The department must deny an application
under certain circumstances.
27
Distribution and Retail Sale of Hemp Extract
Hemp extract may only be distributed and sold in this state if the product has a certificate of
analysis prepared by an independent testing laboratory that states:
The hemp extract is the product of a batch tested by the independent testing laboratory;
The batch contained a total delta-9-tetrahydrocannabinol concentration that did not exceed
0.3 percent pursuant to the testing of a random sample of the batch;
The batch does not contain contaminants unsafe for human consumption; and
20
See s. 581.217, F.S.
21
Section 581.219(3)(f), F.S.
22
Section 581.217(7)(d), F.S.
23
Section 581.217(4), F.S.
24
Section 581.217(5)(a), F.S.
25
Section 581.217(5)(b), F.S.
26
Section 581.217(5)(d), F.S.
27
Section 581.217(5)(e), F.S. BILL: CS/SB 1698 Page 6
The batch was processed in a facility that meets certain human health or food safety
requirements.
28
Additionally, hemp extract may only be distributed or sold in a container that includes:
A scannable barcode or quick response code linked to the certificate of analysis of the hemp
extract batch by an independent testing laboratory;
The batch number;
The Internet address of a website where batch information may be obtained;
The expiration date; and
The number of milligrams of each marketed cannabinoid per serving.
29
Such container must:
Be suitable to contain products for human consumption;
Be composed of materials designed to minimize exposure to light;
Mitigate exposure to high temperatures;
Not be attractive to children; and
30
Be compliant with the United States Poison Prevention Packaging Act of 1970.
31
III. Effect of Proposed Changes:
CS/SB 1698 makes a number of changes to s. 581.217, F.S., the State Hemp Program.
Definitions
The bill modifies the definition of “attractive to children” to include containers displaying toys,
novel shapes, animations, promotional characters, licensed characters, or other features that
specifically target children, or, for hemp extracted intended for inhalation, the addition of any
flavoring. It revises the definition of “hemp” to outline that hemp extract may not exceed 0.3
percent total delta-9-tetrahydrocannabinol concentration on a wet-weight basis or exceed 2
milligrams per serving and 10 milligrams per container on a wet-weight basis, whichever is less.
The bill revises the definition of “hemp extract” to prohibit it from containing synthetic or
naturally occurring versions of controlled substances listed in s. 893.03, F.S., such as delta-8-
tetrahydrocannabinol, delta-10-tetrahydrocannabinol, hexahydrocannabinol,
tetrahydrocannabinol acetate, tetrahydrocannabiphorol, and tetrahydrocannabivarin. It also
creates a definition for “total delta-9-tetrahydrocannabinol concentration” to mean a
concentration calculated as: [delta-9-tetrahydrocannabinol] + (0.877 x [delta-9-
tetrahydrocannabinolic acid]).
28
Section 581.217(7)(a), F.S.
29
Id.
30
Section 581.217(3)(a), F.S., defines “attractive to children” to mean manufactured in the shape of humans, cartoons or
animals; manufactured in a form that bears any reasonable resemblance to an existing candy product that is familiar to the
public as a widely distributed, branded food product such that a product could be mistaken for the branded product,
especially by children, or containing color additives.
31
Section 581.217(7)(a), F.S. BILL: CS/SB 1698 Page 7
Distribution and Sale of Hemp Extract
The bill adds requirements for the manufacture, delivery, hold, and offer for sale to the
regulation of the distribution and sale of hemp extract. It specifies that if a batch is sold at retail
that it must meet the new requirements for total delta-9-tetrahydrocannabinol concentration
limits. It also requires such products to be sold in a container that includes the toll-free telephone
number for the national Poison Control Help line.
The bill clarifies that hemp extract may only be sold to or procured by a business in this state if
that business is properly permitted. A business or food establishment may not possess hemp
extract products that are attractive to children.
The bill prohibits the department from granting permission to remove or use, except for disposal,
hemp extract products subject to a stop-sale order which are attractive to children until the
department determines that the hemp extract products comply with state law.
The bill prohibits an event organizer from promoting, advertising, or facilitating an event where:
Hemp extract products that do not comply with general law, including hemp extract products
that are not from an approved source are sold or marketed; or
Hemp extract products are sold or marketed by businesses that are not properly permitted by
this section and chapter 500.
Before an event where hemp extract products are sold or marketed, an event organizer must
provide the department with a list of the businesses selling or marketing hemp extract products at
the event and verify that each business is only selling hemp products from an approved source.
The event organizer must ensure that each participating business is properly permitted.
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None. BILL: CS/SB 1698 Page 8
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
There are additional requirements for businesses that manufacture, distribute, or sell
products containing hemp extract. Event organizers have additional requirements to
ensure businesses participating in the event meet certain requirements.
C. Government Sector Impact:
The department could incur increased costs to ensure compliance with the changes set
forth in the bill.
The Florida Department of Law Enforcement estimates the bill will have a total fiscal
impact on their department of $2,972,519, of which $2,028,092 is nonrecurring. This is
mostly for Salaries and Benefits, Operating Capital Outlay, and Contracted Services.
32
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends section 581.217 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Agriculture on January 23, 2024:
The committee substitute adds a requirement that hemp extract must be sold in a
container that includes the toll-free telephone number for the national Poison Help line.
32
Florida Department of Law Enforcement Agency Analysis on file with the Senate Agriculture Committee. BILL: CS/SB 1698 Page 9
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.