Politics
New Bipartisan Bill In Congress Would Keep Hemp THC Drinks Federally Legal And Regulated Like Alcohol
A bipartisan duo of lawmakers have filed a new bill in Congress that would exempt hemp beverages from a currently scheduled ban on THC products derived from the plant.
The legislation’s introductions comes days after the Senate voted to delay the planned recriminalization of hemp, which is intended to give lawmakers more time to craft regulations as an alternative to prohibition.
The Beverage Regulatory Parity Act, from Reps. Beth Van Duyne (R-TX) and Greg Landsman (D-OH), introduced on Monday, would establish a three-tier system for distribution of hemp drinks, similar to the model currently used for alcohol. It would allow adults over 21 to purchase and consume hemp THC beverages with up to 5 milligrams of total intoxicating THC per serving.
A draft version of the hemp drinks legislation obtained earlier this year by Marijuana Moment would have used a more permissive limit that measured delta-9 THC specifically.
Under the bill as introduced, there would be a new federal tax on hemp drinks of 8 cents per milligram of intoxicating THC—a reduction from the 10 cents contemplated in the earlier draft measure.
Hemp drinks would be regulated by the Treasury Department’s Tax and Trade Bureau (TTB), the Department of Health and Human Services (HHS) and the U.S. Department of Agriculture (USDA), with requirements for testing, packaging, labeling and serving and container sizes.
“I’ve heard directly from people across North Texas who consume hemp-derived beverages, and businesses who sell them, that they need clarity, not a ban that pushes this market underground,” Van Duyne said in a press release. “The Beverage Regulatory Parity Act brings long-overdue certainty to the industry by regulating these beverages with the same proven structure that has successfully governed alcohol for decades.”
“I am glad to introduce this bipartisan legislation alongside Rep. Greg Landsman, because American families and responsible businesses deserve structure and sensible regulations that protect children while allowing adults to choose beverages they prefer,” she said.
Landsman, for his part, said that “there are people all over Southwest Ohio who have invested significantly in these products, and they’ve done so safely.”
“Now the federal government is telling them they can’t sell these products anymore,” he said. “Our bill is bipartisan and very straightforward. It will keep people safe and let these folks stay in business.”
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Under the new bill, legal beverages could only contain naturally-occurring cannabinoids that are cultivated and processed within the U.S.
Manufactures, wholesales and sellers of hemp drinks would be required to obtain federal permits.
Companies could not sell multi-serving containers larger than 750 milliliters under the legislation.
The legislation further clarifies that states, Indian tribes and localities could set regulations that are “more stringent” than federal rules, but says that they could not prohibit the shipment or transportation of hemp beverages through their borders on the way to other jurisdictions.
Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.
The Senate over the weekend, however, approved a funding bill that includes a provision to delay the effective date of the ban until December 11. Sen. Ted Budd (R-NC) had filed an amendment to strip that language and keep the prohibition on track as scheduled, but the body approved a motion to table the proposal from Sen. Amy Klobuchar (D-MN) in a vote of 61-32.
The House of Representatives, which previously passed a separate funding bill that does not include language to extend the hemp ban’s effective date, is scheduled to return from its recess on August 31.
The new hemp drinks bill is being supported by some members of the alcohol industry.
“For nearly a century, the alcohol regulatory system has kept consumers safe while giving legitimate businesses clear rules to operate under. Rep. Van Duyne’s bill extends that same proven framework to hemp-derived beverages,” Dawson Hobbs, executive vice president of government affairs forWine & Spirits Wholesalers of America (WSWA), said. “WSWA is proud to support this legislation and thanks the congresswoman for her leadership in addressing products that have grown in popularity and are already on store shelves. We urge Congress to act before the November 12 deadline eliminates responsible options from the marketplace entirely.”
Total Wine & More said the bill “brings low-dose hemp-infused beverages into the same three-tier system that has safely regulated beer, wine and spirits for decades.”
“This framework, with licensed manufacturers, distributors and retailers, along with age verification, testing and labeling standards, is a smart way to protect consumers while giving responsible businesses certainty,” the company said.
John Bodnovich, executive director of American Beverage Licensees, said the legislation is a “thoughtful and serious approach to regulating hemp beverages in the United States.”
“Licensed beverage retailers have been consistent in calling for a safe, well-regulated, and accountable marketplace for hemp beverages, just as they have supported the effective system of state-based alcohol regulation that promotes public safety and responsibility while meeting consumer needs,” he said.
