Politics
Industry Lawyers Condemn ‘Overbroad’ And ‘Disastrous’ Congressional Push To Ban Hemp THC Products
More than a dozen lawyers representing hemp businesses are slamming an “overbroad” and “disastrous” proposal to ban products with THC that’s advancing in the Senate and was recently supported by a coalition of state and territory attorneys general.
In a letter sent to key GOP congressional committee leaders on Friday, the attorneys—whose clients include many operators affiliated with the Hemp Beverage Alliance (HBA)—said that while they agree that “there are bad actors in the hemp market,” banning intoxicating cannabis products altogether would “punish responsible commerce and exacerbate the very problems the AGs seek to solve.”
The letter was delivered just days before the Senate released the text of an appropriations package that contains a version of the controversial hemp language. The chamber then agreed to advance it to a final vote, which could come imminently, but one GOP senator still has a back-up plan to try and block the ban.
“These states are doing the work necessary to create a regulatory framework that protects adult consumers while dramatically decreasing the likelihood of children accessing hemp-derived products,” the lawyers said, adding that the letter from the attorneys general “overreaches in a number of instances.”
Specifically, they said that signatories of the attorneys general letter mistakenly argue that state efforts to regulate hemp products are inadequate and only lead to “an uneven and ineffectual patchwork of bans and regulations.”
“We respectfully disagree,” the new letter says, pointing out that alcohol is already “subject to a ‘patchwork’ of state laws and regulations across all 50 states and enforcement has effectively stopped any illegal mail-order alcohol from streaming through interstate commerce.”
“Cannabis products are banned in a number of states and highly regulated in others, and yet our clients follow the applicable rules by managing state-level compliance specific to each state,” it says.
“The businesses that we work with and support have been asking for regulations for years, including from the FDA, and are eager to work within defined regulatory frameworks, even if those frameworks might differ on a state-by-state basis. Far from being ‘ineffectual,’ the states with hemp regulations, like Minnesota and Georgia, have found hemp businesses to be upstanding members of their communities who are just as interested in protecting children from intoxicating products as their state legislators. In addition, these states have embraced certain hemp-derived products, like hemp-derived THC beverages, as an alternative to alcohol.”
“While we appreciate the efforts of our Attorneys General to protect the public from harm, and we agree that regulations are needed across the country, banning hemp products with any traceable THC via the appropriations process is not the way forward, especially when there has been little to no debate on this topic by Members of Congress,” the lawyers said.
The new letter also points out that certain attorneys general who signed the earlier letter, such as Minnesota’s Keith Ellison (D), have since clarified that they don’t necessarily support an outright ban on hemp products containing THC as proposed in a House spending bill.
“Putting aside the confusion created by the AG Letter, and the flawed process of using a funding bill to ‘close the loophole,’ the impact of such a ban cannot be understated,” they said. “The hemp industry at large, including the industrial hemp farmers who the Attorneys General argue will be unscathed by such a ban, will in fact be decimated, particularly if no detectable THC is permitted in consumable products, as is currently included in the Appropriations Bill.”
“Such a rule would make nonintoxicating CBD products illegal as well, something we believe the Attorneys General signing this letter do not support,” the letter says.
They also noted that major corporations such as Total Wine, Target and Doordash have started selling hemp products since the crop was federally legalized under the 2018 Farm Bill, adding to the need to thoughtfully regulate—rather than prohibit—such items.
“As attorneys who work in the hemp industry, we ask that Congress allow the states to continue to regulate hemp products and avoid inclusion of a hemp ban in the Appropriations Bill that will prevent adult consumers from accessing these products and have a disastrous impact on so many well-intentioned, hard-working, small business owners, who welcome a regulated environment,” they said.
This is the latest in a string of messages to Congress about federal hemp policy and the potential for significant changes if a ban on hemp with THC is ultimately implemented.
For example, more than 50 alcohol distributors recently joined together to oppose efforts in Congress to ban intoxicating hemp products, stressing to lawmakers that as demand for alcohol has “shifted downward,” the cannabis market has helped sustain their industry.
Interestingly, there’s been particular division among alcohol stakeholders, many of which reported lobbying on hemp issues this year. There appears to be disagreement over the path forward as it concerns wholesalers who distribute alcohol and hemp products and major brands marketing their own beverages.
A group of major alcohol industry associations recently threw its weight behind the push to get lawmakers to ban intoxicating hemp products—at least on a temporary basis before the federal government creates a “robust regulatory framework” for the marketplace.
A leading consumer trade association that counts among its members corporations such as Coca-Cola, General Mills, Kraft Heinz and Nestlé is also putting pressure on Congress to ban intoxicating hemp products.
As Congress continues to navigate a path forward on funding legislation to end the ongoing government shutdown, lawmakers are still at work attempting to reach a deal on federal hemp laws—with one GOP senator telling Marijuana Moment that multiple options are on the table, though it will ultimately come down to what leadership wants.
Two GOP lawmakers—Sen. Mitch McConnell (R-KY) Rep. Andy Harris (R-MD)—have pushed aggressively for an outright ban on hemp products containing THC. But others such as Sen. Rand Paul (R-KY) have insisted that such a policy change would devastate the industry. And Paul said recently he’d go so far as to hold up large-scale spending legislation if a full ban was kept intact.
The senator also pushed back against the recent letter from the state and territory attorneys general who implored Republican leaders to fully prevent the marketing of intoxicating hemp products.
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As far as legislative options go, Paul did put forward legislative language recently to require a study and report on state regulatory models for hemp that could inform future revisions to the federal law—rather than prohibit sales altogether, as McConnell would have it.
In August, McConnell–who ushered in the federal legalization of hemp under the 2018 Farm Bill–took to the Senate floor to criticize those who opposed the ban, including Paul.
Meanwhile, Paul recently filed a standalone bill that would go in the opposite direction of the hemp ban, proposing to triple the concentration of THC that the crop could legally contain, while addressing multiple other concerns the industry has expressed about federal regulations.
The senator introduced the legislation, titled the Hemp Economic Mobilization Plan (HEMP) Act, in June. It mirrors versions he’s sponsored over the last several sessions.
