It’s no secret that hemp derived THC cannabinoids are being targeted by State governments, including Arkansas. The state of Arkansas has a new law that will effectively outlaw and place all hemp-derived Delta-8, Delta-9, Delta-10 THC, and other relatable products on the state’s controlled substances list. Let’s take a closer look at Act 629, the new law that brings this all into effect this August 1st, 2023.
Act 629 / Senate Bill 358
Senate Bill 358 was signed into law back in April, turning it into law, known as Act 629 now. Act 629 makes selling any products that contain Delta-1, Delta-3, Delta-4, Delta-6, Delta-6a, Delta-8, Delta-9, Delta-10, Delta 10a, illegal. They are now classified as a Schedule VI drug in the state. The new law now also requires hemp manufacturers, or anyone selling hemp products to obtain and maintain an annual license, they must now keep hemp-product sale records, and require specific labeling on packaging of hemp products specifically banning candy or cartoon figures from being on packaging. It does not prevent the transportation of hemp-derived products through the state.
Laws such as Act 629 have been actively popping up fast in many States across the USA. This is due to the grey area loophole of the Farm Bill of 2018. This federal bill made all hemp legal to grow and distribute if its dry weight of THC was under 0.3%. Nowhere in the bill did it mention banning variations of THC or the process of converting CBD Cannabidiol into other cannabinoids.
What does this mean for Arkansas?
For many Arkansas businesses that specifically sell CBD and hemp-based products it will mean most likely they’ll be closing their doors. A report from 40/29 News interviewed a hemp store owner in the state and said that Delta-8 and relatable products made up nearly 80% of their business in the last 2 years. This seems to be the case for many CBD and hemp shops across the state. Many customers would frequent these shops for an alternative to medical cannabis dispensaries due to it being a cheaper option and not requiring a medical cannabis registry card.
With Arkansas medical sales tallying in at around $94.4 million in the first four months of 2023, the current 38 dispensaries are generating major tax income for the state. Recently Arkansas surpass $100 million in tax revenue since it’s original medical cannabis launch in 2019. Perhaps the state does not want to compete with other hemp businesses. Senator Justin Boyd one of the sponsors of Bill 358 main concern was the fact that children were capable of purchasing hemp derived delta products and that many of the packaging was appealing for a younger audience.
What are your thoughts on the subject? Do you think all USA states will move to make similar laws? Comment below!
