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MISSOURI ATTORNEY GENERAL OPENS INVESTIGATION INTO INTOXICATING HEMP PRODUCTS
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POLITICS
MISSOURI ATTORNEY GENERAL OPENS INVESTIGATION INTO INTOXICATING HEMP PRODUCTS
Published
8 seconds ago
on
April 23, 2024
By
Marijuana Moment
“When purchasing products, Missourians have a right to know if they will be
subject to serious and potentially dangerous side effect.”
By Rebecca Rivas, Missouri Independent
Missouri Attorney General Andrew Bailey (R) launched an investigation into four
companies Wednesday as part of an effort to crack down on intoxicating hemp
products.
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The problem, according to Bailey, is the products in question—such delta-8
edibles and vape pens—are not clearly labeled to indicate that they’ll get you
high.
“When purchasing products, Missourians have a right to know if they will be
subject to serious and potentially dangerous side effects,” Bailey stated in his
press release, “like psychotic episodes, severe confusion, hallucinations and
other life-threatening problems.”
Intoxicating hemp products are completely unregulated but can still be sold in
places like bars and gas stations—because hemp is federally legal.
However, everyone from the companies making these products to stores selling
them to elected officials want to see age restrictions put in place by the
state, along with label and testing requirements.
Two Republican lawmakers have proposed legislation to do that, but the bills
would also likely ban a majority of the intoxicating hemp products currently on
the market—putting hundreds of companies out of business.
The large divide in how regulations should happen has essentially tanked the
bills’ chances of making it to the governor’s desk.
Bailey seems to be joining the push to regulate the products. However, it’s
unclear exactly who he’s targeting.
Bailey issued a “civil investigative demand,” which are essentially subpoenas,
to CBD Kratom Connect LLC of St. Louis, a company that several leaders in the
hemp industry say they’ve never heard of and which has virtually no online
presence indicating it is operating in Missouri.
Some wonder if Bailey meant to target CBD Kratom, which is one of the largest
intoxicating hemp companies in the state and country.
When asked for clarification, Madeline Sieren, spokeswoman for the Attorney
General’s office, said: “Unfortunately because the investigations are ongoing, I
cannot comment beyond what is written in the CIDs.”
Also based in St. Louis, CBD Kratom has over 60 retail locations throughout
Chicago, Dallas, Houston, New York, Philadelphia and St. Louis. And it has no
connection to CBD Kratom Connect, the company’s owner David Palatnik told The
Independent Thursday.
During hearings regarding the proposed legislation, Palatnik testified in
support of banning products that look like candy and are attractive to
children—the exact issue Bailey is hoping to address by the investigations.
“It’s an issue in the industry that some people sell child-looking packaging
that is also fraudulent and is also a violation of federal laws,” Palatnik said.
“So we’d agree with the attorney general on that front.”
His company ensures all its products have transparent labeling, he said.
Palatnik says he opposed the legislation proposed in the Missouri General
Assembly because of the harmful impact it would have on hemp businesses.
On Wednesday, Bailey also ordered an investigation into American Shaman, one of
the largest intoxicating hemp companies in the state and country.
Vince Sanders, owner of American Shaman, told The Independent Thursday that his
company makes gummies and chocolates made with hemp-derived THC, but they’re
sold in child-proof containers, similar to what is required by state law for
marijuana products.
“They all say ‘21-plus,’” Sanders said. “If you’re in one of our stores, you
actually have to sign a document that says you understand that these are
psychoactive.”
Sanders has also been a vocal and influential opponent to the proposed
legislation.
Two individuals also received investigation notices from Bailey: Cara Buchanan
with Smoke Smart LLC in St. Louis and Tariq Zeiadeh with Vape Society Supplies
in Columbia.
An employee at the Smoke Smart location in St. Peters said Buchanan no longer
owns the business or lives in Missouri, and the current owners do not operate as
Smoke Smart LLC. Zeidadeh has not responded to a request for comment.
In his press release, Bailey states that he’s received reports that businesses
were “potentially violating the Missouri Merchandising Practices Act, which
grants Missourians the right to a marketplace free from fraudulent or deceptive
business practices.”
Bailey also pointed to the six elementary-age children in St. Louis County who
became sick and intoxicated at school after reportedly ingesting delta-8
products that were packaged as “Nerds Rope Bites and Mad Monkey Sour Strawberry
Premium Gummies.”
The attorney general’s office didn’t respond to The Independent’s question on
whether any of the four companies under investigation made the products in the
St. Louis County incident.
The great divide
Among the biggest supporters of the proposed legislation are leaders of the
marijuana industry. The intoxicating hemp industry poses a major threat to
marijuana businesses.
Hemp is often known for being the part of the cannabis plant that doesn’t get
people high. It’s full of CBD, a nonpyschoactive cannabinoid that helps people
relax and is often found in massage oils and sleep aids.
However, hemp was taken off the controlled substance list in 2018 by the last
U.S. Agriculture Improvement Act, more commonly known as the farm bill. Since
then, people have found numerous ways to make intoxicating products from
hemp—largely through a chemical process of converting CBD to THC. The market for
things like delta-8 drinks and edibles is one of the fastest growing markets in
the country.
Because of the farm bill, there’s no state or federal law saying teenagers or
children can’t buy them or stores can’t sell them to minors—though some stores
and vendors, including American Shaman and CBD Kratom, have taken it upon
themselves to impose age restrictions of 21 and up.
Mitch Meyers, partner at BeLeaf Medical, said at a recent industry summit that
the intent of the bill was to put the hemp-derived products under the strict
packaging and other requirements that marijuana companies must go through.
“So that’s why we’re just in complete amazement that this stuff just can be out
there without any of these checks and balances,” Meyers said.
The Missouri Hemp Trade Association has continuously advocated for measures such
as prohibiting sales to minors and mandating clear user instructions and
rigorous product testing.
The big problem the hemp industry has with the legislation is that it would
place these products under the same constitutional framework and rules that the
marijuana industry must abide by—including the mandate that products are only
sold at licensed marijuana dispensaries regulated by the cannabis division
within the Missouri Department of Health and Senior Services.
There are no new marijuana facility licenses available currently, so there would
be no way for the current hemp storefronts to sell these products.
Last week, Republican state Rep. Barry Hovis of Whitewater offered a different
draft of the House legislation—backed by the hemp industry—that would allow the
Division of Cannabis Regulation to issue licenses to companies that sell
intoxicating hemp products, as well as oversee age restrictions and labeling
requirements.
—
Marijuana Moment is tracking more than 1,400 cannabis, psychedelics and drug
policy bills in state legislatures and Congress this year. Patreon supporters
pledging at least $25/month get access to our interactive maps, charts and
hearing calendar so they don’t miss any developments.
Learn more about our marijuana bill tracker and become a supporter on Patreon to
get access.
—
Under Hovis’s proposal, the licensees would not come under other marijuana
rules, which includes a ban on the “chemical conversion” process used to create
the majority of hemp-derived THC products. The state rules also require that THC
may only come from cannabis cultivated by a Missouri-licensed cultivation
facility. Most hemp-derived THC is currently brought in from other states.
Few products currently on the market would meet these requirements.
Hovis’s proposal failed, largely because the division said the licensing fee he
proposed wouldn’t produce enough revenue to cover the division’s costs.
“There’s something we need to do because of the unregulated market that we have
right now,” Hovis said. “I do feel that for the safety of children… this would
be a good move.”
State Sen. Karla May, a Democrat from St. Louis, said she plans on offering an
amendment to Republican Sen. Nick Schroer’s bill to regulate these products,
which will likely be similar to Hovis’s proposal. May said the license fees in
her proposal will be higher.
Schroer’s bill could be brought up on the Senate floor for debate any time, May
said, and that’s when she’d offer her proposal.
“My only concern is that we get an independent structure for these businesses,”
May said, “and that they don’t have to come up under marijuana. Because the only
license they will be given is a microbusiness license and that is not fair to
them.”
> Second Missouri House Panel Approves Bill To Legalize Psilocybin Therapy For
> Veterans
This story was first published by the Missouri Independent.
Marijuana Moment is made possible with support from readers. If you rely on our
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