The legislation establishes a framework for the licensing of manufacturers and retailers of intoxicating hemp products. Licenses will be contingent upon compliance with safety, testing, and labeling regulations. Moreover, the bill prohibits the sale of intoxicating hemp products to individuals under 21 years of age and mandates strict age verification processes. These measures are designed to ensure consumer safety and to uphold public health standards while fostering responsible consumption of hemp products.
Summary
House Bill 1328 introduces significant regulations and an excise tax for the sale of intoxicating hemp products in Missouri. Starting January 1, 2026, retailers will be required to collect a 2.25% excise tax on the retail sale of these products. The revenue from this tax will be directed into the Missouri Hemp Development Fund, which is specifically intended for initiatives related to public health, agriculture, veterans' support, and the expansion of the hemp industry. This marks a considerable regulatory shift aimed at controlling the commercial aspects of hemp-derived products within the state.
Contention
Critics of HB 1328 may argue that the imposition of taxes and the licensing requirements could stifle small businesses involved in the hemp industry, potentially creating barriers to entry for new market participants. Proponents claim that these regulations will help standardize the industry and secure consumer safety, making the hemp market more reliable. Additionally, the bill's focus on funding public health initiatives and veteran support programs is likely to generate discussion regarding the allocation of tax revenues and whether such funding will adequately address the needs of these communities.