TALLAHASSEE, Florida — Gov. Ron DeSantis has vetoed a bill that sought to bring new restrictions to Florida’s rapidly growing hemp industry, saying the new regulatory controls would have strangled small businesses that have opened because of hemp.

What happened: The bill, SB 1698, would have restricted sales of hemp-derived products that include alternative forms of THC, which are marketed to provide the same effects as marijuana. DeSantis wrote in a transmittal letter about the veto that the goals of the bill were commendable but the burden on small businesses would be too much.

“The bill would, in fact, impose debilitating regulatory burdens on small businesses and almost certainly fail to achieve its purposes,” DeSantis wrote. “Senate Bill 1698 would introduce dramatic disruption and harm to many small retail and manufacturing businesses in Florida.”

DeSantis went on to write that the Legislature should propose a similar measure during the next legislative session, with input from all relevant stakeholders.

“Sensible, non-arbitrary regulation will provide businesses and consumers alike with much-needed stability — safeguarding public health and safety, allowing legitimate industry to flourish, and removing bad actors from the market,” DeSantis wrote.

Why it matters: The veto is a major win for the hemp industry, which has grown rapidly after Congress gave states permission to regulate hemp in 2018. With little federal regulation, hemp stores began selling products infused with chemicals known as Delta-9 and Delta-8 THC, which are marketed as providing euphoric effects similar to pot. State Agriculture Commissioner Wilton Simpson also pushed for hemp restrictions last year that DeSantis signed into law, requiring someone to be at least 21 years old to purchase products, banning the sale of products that appear to be marketed to children and creating a potency cap on hemp products.

In a statement, Simpson wrote the state already has strong restrictions on the books.

“We still have strong laws on the books to protect children from these harmful drugs thanks to the bill sponsored by Senator [Colleen] Burton and approved by Governor DeSantis last year. The department will continue to aggressively implement the law,” Simpson wrote in the statement.

The veto was a huge win for the hemp industry, which went to great lengths to encourage DeSantis to reject the bill, including dual billboard messages pasted on either side of a major roadway on the way to the Governor’s Mansion. In a statement, the Florida Healthy Alternatives Association, a trade association for the industry, wrote the bill would have single-handedly killed the state’s hemp industry.

“The legislature heard our concerns, but didn’t fully appreciate the impact of their legislation,” Healthy Alternatives wrote in the statement. “Governor DeSantis understands that everyday Floridians rely on hemp and CBD products to stay away from harmful and addictive medications, and that thousands of Floridians have built local businesses to serve this critical need.”