“If intoxicating cannabinoids are what you’re after, visit your friendly local marijuana retailer.”
By James Brooks, Alaska Beacon
Alaska’s state government has approved new rules for inexpensive hemp-derived cannabis products, also known as “diet marijuana”.
Intoxicating hemp products must now be regulated by state’s marijuana board. This will result in their removal from vape shops, and other unregulated retailers across the state.
The changes will also affect some non-intoxicating products. The so-called “full spectrum” hemp products that are intended to treat epilepsy and chronic pain contain a variety cannabinoids. Some of these cannabinoids have been restricted by the industrial hemp program in California. The state’s industrial hemp program will require manufacturers to extract and combine certain chemicals separately or apply for approval via the marijuana regulatory process. This adds time and expense.
The new regulations have been signed by Lt. Governor. Nancy Dahlstrom (R), who signed the new regulations last week, will be in effect on November 3.
Members of Alaska’s legal marijuana sector championed these changes, saying they would close a loophole in safety that allowed cannabis-like intoxicants to be sold without taxes to Alaskans underage.
Brandon Emmett is the co-chairman of Gov. Mike Dunleavy’s task force for recreational marijuana recommended the change in early 2018.
Hemp businesses that have vocally opposed this change say Alaska’s marijuana business is more interested in eliminating a competitor.
“Their interest doesn’t concern protecting children.” Danny Ferguson, of Primo Alaska in Anchorage, said that it’s all about protecting their money.
I have over 13,000 edibles [made from hemp] in my store. He said, “I have no way of selling them in Alaska until November.”
The state’s industrial hemp program is being changed.
A federal law from 2018 and a state statute adopted two years earlier define hemp as cannabis plants containing less than 0.3 percent THC, a psychoactive chemical. Cannabis plants with more THC are classified as marijuana and strictly regulated.
Even though hemp has low levels of psychoactive chemicals it can still be processed, refined and extracted to create intoxicating products.
These products can be purchased in gas stations, vape shops and other stores, as they are not produced by the marijuana industry of the state. Only specially licensed vendors can grow and sell marijuana products.
Hemp-derived product are also taxed much lower than marijuana and can be purchased by Alaskans who are under the age of 21 (the minimum age for marijuana purchase in Alaska).
Joan Wilson, the director of Alaska Alcohol and Marijuana Control Office which regulates marijuana, said: “I think that this was an unintended result.”
The state marijuana board instructed Wilson to work with the Alaska Department of Natural Resources, which regulates hemp and hemp-based products. The marijuana industry urged the state also to take action and crack down on hemp-based products.
According to Ryan Tunseth of the Alaska Marijuana Industry Association (a trade association), the new regulations are as important for the marijuana industry as the changes in the marijuana tax system.
He said that the law is important because it prevents minors from getting their hands on intoxicating substances. “Secondly, it ensures that those who sell intoxicating goods follow all the regulations Alaskans demand, so that the state can collect tax revenue.”
Ferguson and other hemp-product producers say that they have spent large amounts of money setting up their business, only to find out the state has changed the rules.
He will be able continue to sell his products in Texas and other states, but many Alaskan manufacturers are still starting out and may go out of business. He speculated that store retailers who depend on hemp products for their livelihoods might also be affected.
Ferguson says that while they could be regulated the same way as marijuana businesses, it’s not likely to happen due to cost and complexity.
He believes that the Department of Natural Resources has improperly partnered with the marijuana industry, marijuana regulators and hemp producers. He expects the hemp sector to organize and resist these changes.
He said, “We are going to sue these people.”
Wilson said that other states had seen similar lawsuits following changes to their hemp rules. However, she believes Alaska has a strong position to defend itself since it is not making hemp products illegal. They simply need to be licensed as marijuana.
The Alaska Beacon published this story first.
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Photo by Kimzy Nanny.
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