In 2020, 69% of voters in the state of Mississippi passed a medical cannabis initiative, but the Supreme Court of the state nullified the measure. Two years later, the legislature approved the Mississippi Medical Cannabis Act, allowing the establishment of a high-quality, regulated industry. Less than a year later, more than 20,000 residents in the state were benefitting from the program.
Medical cannabis production in the state is strictly regulated, with all growers having to apply for permits before they can commence their operations. Every plant is also tracked from the time it hits six inches in height through maturity until it is made into a product. Producers may also be subject to quality inspections.
Additionally, all products must pass quality inspections at an independent laboratory approved by the state’s health department.
Currently, the state’s medical cannabis industry serves more than 43,000 patients at more than 160 running dispensaries. The industry is made up of 65 microgrowers and 61 growers who cultivate the product along with 31 processing facilities and 5 laboratories to analyze product quality.
Despite this progress, the legislature failed to factor in the effect the unregulated intoxicating hemp industry would have on the legal medical cannabis program.
The Centers for Disease Control and Prevention (CDC) and the U.S. Food and Drug Administration (FDA) have, in the past, warned against using intoxicating hemp products. These entities have explained that these products haven’t been tested for contaminants or additives and are often mislabeled, making it hard for consumers to know their contents.
HB 1676 was recently introduced to regulate hemp cultivation and processing by bringing intoxicating products under medical cannabis guidelines. Advocates cited an investigation which determined that the products contained mycotoxins, pesticides and about 40 times the legal limit of THC. To produce intoxicating hemp products, synthetic THC forms are added to hemp extracts.
The measure was met with a lot of resistance, particularly from cultivators of hemp. While it was approved by both houses, it died in conference.
A letter addressed to Congress by the attorneys general of 20 states, including Tennessee and Arkansas, argued that not regulating intoxicating hemp products was a crisis that would affect public safety.
While both Arkansas and Mississippi have operational medical cannabis industries, the former state has imposed a ban on intoxicating products. If Mississippi wants its medical cannabis market to grow without being stifled, the legislature will need to act against intoxicating hemp products. It may also need to reduce the numbers in its industry, which is already overbuilt; there are too many dispensaries to serve its patients. This is in comparison to Arkansas, which has 102,000 patients being served by 38 dispensaries.
The contention between marijuana and intoxicants made from hemp is likely playing out in a lot more jurisdictions, including in states where cannabis companies such as Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) have operations.
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