HCSHB593--INTOXICATINGCANNABINOIDS
SPONSOR: Perkins
COMMITTEEACTION:Voted"DoPasswithHCS"bytheStanding
CommitteeonCrimeandPublicSafetybyavoteof12to5.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
593.
Thisbillestablishesthe"IntoxicatingCannabinoidControlAct".
Thebillspecifiesthathemp,industrialhemp,hemp-derived
consumablebeverageproducts,andhemp-derivedproductsthatdonot
containintoxicatingcannabinoidswillnotbeconsideredmarijuana
andwillnotbesubjecttothelegalframeworkcontainedinthe
MissouriConstitution.
Thisbillspecifiesthatanyintoxicatingcannabinoid,inanyform
andfromanysource,issubjecttotheregulationspromulgatedby
theDepartmentofHealthandSeniorServicesunderArticleXIVof
theConstitutionandtreatedasmarijuanaundersuchregulations
andsoldonlyatdispensarieslicensedbytheDepartment.
Nopersonorentity,asidefromacomprehensivemarijuana
dispensaryfacility,medicalmarijuanadispensaryfacility,or
microbusinessdispensaryfacilitylicensedundertheprovisionsof
theConstitution,willconductbusinessorcarryon,underaname
thatcontainsaspartofthenametheword"dispensary"orany
similarword.
Thisbillspecifiesthatanexcisetaxof2%onretailsalesof
hemp-derivedconsumablebeverageproductswillbeimposedforall
taxyearsbeginningonorafterJanuary1,2026.Revenuederived
fromthistaxwillfundveterans'programs,drugabuseprevention
andeducationprograms,andfirstresponderprograms.
Thebillalsoestablishesthe"Hemp-DerivedConsumableBeverage
ProductsAct",theprovisionsofwhichwillbeenforcedbythe
DivisionofAlcoholandTobaccoControl(ATC)undertheDepartment
ofPublicSafety.Thefirstviolationoftheactwillyielda
penaltyof$250,andanysecondorsubsequentviolationwillbea
classDmisdemeanor. ThisActplacesrestrictionsonthepurchase,
use,andsaleofhemp-derivedconsumablebeverageproducts,
includingthatapersonisprohibitedfromknowinglysellingor
distributingahemp-derivedconsumablebeverageproducttoor
purchasingonbehalfofapersonwhoisunder21yearsold,orfrom
knowinglypersuading,enticing,sending,orassistingapersonwho
isunder21yearsoldtopurchaseorattempttopurchase,acquire, orreceiveahemp-derivedconsumablebeverageproduct. Thebill
prohibitsapersonunder21yearsoldfromknowinglypurchasing,
possessing,oracceptingahemp-derivedconsumablebeverageproduct
orknowinglyfalselyrepresentinghisorherageoridentityfor
thepurposeofpurchasingorreceivingahemp-derivedconsumable
beverageproduct. Apersonisalsoprohibitedfromundertakingany
taskwhileimpairedbytheuseofahemp-derivedconsumable
beverageproductifdoingsowouldconstitutenegligenceor
professionalmalpractice,apersonisprohibitedfromoperating,
navigating,orbeinginphysicalcontrolofamotorvehicle,
aircraft,motorizedwatercraft,oranyothervehiclewhileimpaired
bytheuseofhemp-derivedconsumablebeverageproducts. Drivinga
motorvehicleonapublicroadwhileconsumingoneofthese
productsorhavinganopencontainerofoneoftheseproductswhile
drivingamotorvehicleonapublicroadconstitutesaninfraction
andwillbeassessedfourpointsonthedrivingrecord.Thebill
alsoestablishesrequirementsandrestrictionsrelatedtothe
labeling,marketing,anddisplayingoftheproducts.
Thebillspecifiesthatanypersonwhoisinthebusinessofhemp-
derivedconsumablebeverageproductsinthisstatemustobtaina
licensefromATC.Anylicensegrantedtoaretailerwillbe
locationspecific;anylicensegrantedtoamanufactureror
distributorwillnotbelocationspecific. Thebillliststhe
stepsnecessarytoobtainandmaintainalicenseforaretailer,
distributor,andmanufacturer,aswellastheamountoftimea
licenseisvalidandfeesassociatedwithlicenserenewal.
Ifthesaleofhemp-derivedconsumablebeverageproductsbecomes
illegalunderfederallaw,thesaleoftheproductswillbe
prohibitedinthisstate,anylicensealreadyissuedinthestate
willberevoked,andATCwillnotstart,orwillstop,issuing
licensesundertheAct.
Thebillcreatesthe"HempBusinessFund",whichwillbea
dedicatedfundusedfortheadministration oftheAct.Thebill
alsoestablishesarequirementthatATCcreaterulesrelatedtothe
licensureofhemp-derivedconsumablebeverageproducts,as
specifiedinthebill,andtheDepartmentofHealthandSenior
Servicestocreaterulesrelatedtothetestingoftheproducts,
priortoApril1,2026.ATCisalsoauthorizedtoregulatethe
advertisingandpromotionoftheseproducts. Testingofanyhemp-
derivedconsumablebeverageproductsmustbeconductedonthe
productinitsfinalform,andthecertificateanalysismustreport
thetestresultsinspecifiedunitsofmeasureandinaccordance
withtherequirementsfortheseproductsinaccordancewiththe
provisionsofthisbill.ThebillrequiresATCtoconduct
randomizedinspectionsofhemp-derivedconsumablebeverageproducts
toensurecompliancewiththeprovisionsofthisbill. TheActprohibitsdiscrimination fromhemp-derivedconsumable
beverageproductmanufacturersagainstdistributorswithrespectto
anyoftheterms,provisions,andconditionsofthegranted
franchises. Unlessgoodcauseisestablished,amanufactureris
prohibitedfromunilaterallyterminating,refusingtocontinue,or
substantiallyalteringtheconditionofanyfranchisewiththe
productdistributor. Anyhemp-derivedconsumablebeverageproduct
distributormaybringanactionagainstamanufacturerofthese
productsforaviolationoftheprovisionsofthebillandmay
recoverdamagesandattorneys'feesfromthemanufacturer. Itwill
beacompletedefenseforamanufacturertoprovethatthe
termination,noncontinuance, orsubstantialchangewasdoneingood
faithandforgoodcause.
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: Supporterssaythatmanygroupshavevoicedtheir
concernsabouttheunregulatedcannabisproductsandhaveexpressed
concernsthatchildrencangointoastoreandbuytheseproducts.
Thisismeanttoregulateproductsyouseeinmoststoresinthe
StateofMissouri. Thiscomesafterthe2018FarmAct,which
removedacertainlevelofDelta-9THCbutCongressdidnotrealize
atthetimethattheproductscouldbemadeintoxicating. The
IntoxicatingCannabinoidControlActismeanttoalignthelawwith
Congress’sintent.Theproductssoldindispensariesarenaturally
derivedTHCproducts,andtheitemsfoundinconveniencestoresare
synthetically-producedintoxicatingitemsandtheyareusually
producedinChina.Becausethereisalackoftesting,thereisa
“rollofthedice”asfaraswhatkindofproductyouwillget.
TherearetalksinthefederalgovernmentabouthowtheFDAcan
regulatenon-intoxicatinghempproductsandpartofitislooking
atthetotalproductanditsintoxicatingcontent.
TestifyinginpersonforthebillwereRepresentative Perkins;SSM
Health;TomRobbins,MoCannTrade;MissouriCannabisTrade
Association;NicoPento,Elevate;andBJCHealthcare-Children's
Hospital.
OPPONENTS: Thosewhoopposethebillsaythatthisbillisa
dangertoMissouri’shempindustry. Itthreatensthelivelihoodof
veteransandthebenefitstoveterans. TheMissouriindustryis
tryingtoputsmallbusinessesoutofbusiness. Opponentsarenot
opposedtoregulation;theyareinfavorofregulationandwantto
goafterthebadactors.Thisbillseekstorewriteour ConstitutionwithoutgoingthroughtheConstitution. Thereisa
specificlevelofTHCthathasbeenallowedandtheproponentsof
thisbillaretryingtochangethatthroughstatute,subvertingthe
willofthepeople.ManyMissourianshaveinvestedeverythingthey
havetoadvocateforthisindustry,andtheymakesuretheir
productsaretestedandaresafeforconsumption. Theydowant
regulationandtheydowanttokeeptheirlivelihoods. Theanswer
istoregulate,noteradicate.
TestifyinginpersonagainstthebillwereJohnGrady,Slaphappy
Beverage;BrooklynHill,MoHempTradeAssociation;CraigKatz,Mo
Hemp-CBDKratom;GreatStateStrategies;andMissouriVape&
AlternativeProductsAssociation.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.