Creates provisions relating to hemp businesses
The legislation significantly reforms existing state laws regarding hemp products by creating a new classification for hemp beverages separate from other cannabis products. It stipulates that all hemp beverages must comply with testing and labeling regulations, which require manufacturers to disclose ingredient information, including potential allergens and cannabinoid content. The bill aims to protect consumers by ensuring that hemp beverages are produced safely while complying with health standards, potentially fostering a more organized marketplace. Additionally, a seven percent excise tax on hemp beverage sales intends to generate state revenue for the administration of the program.
Senate Bill 697 introduces comprehensive regulations for the production, distribution, and sale of hemp beverages in Missouri, establishing a licensing framework for manufacturers, wholesalers, and retailers. This bill categorizes 'hemp beverages' as products intended for human consumption that derive from hemp plant parts, establishing clear definitions and requirements for manufacturers. The bill also mandates registration with the Department of Health and Senior Services and imposes strict labeling, packaging, and health standards to ensure consumer safety, particularly to avoid targeting children with marketing materials.
While supporters of SB 697 argue that it regulates a burgeoning industry and protects consumers, there are concerns regarding the restrictions imposed on the manufacturers and retailers. Some members of the industry fear that the licensing fees and compliance requirements may discourage small businesses from entering the market. Moreover, the enforcement of age restrictions and labeling limitations has elicited debate over whether they might hinder business promotional activities, leading to calls for adjustments before the bill's passage. The balance between regulation and market accessibility remains a point of contention in discussions surrounding the bill.