Several major alcohol industry participants are backing a new bill in Congress that would exempt hemp beverages from a currently scheduled ban on THC products derived from the plant while enacting new provisions to tax and regulate the cannabis drinks like alcohol.
“Appropriately dosed hemp-derived beverages belong in a regulated adult beverage marketplace, not in a legal gray area,” Dawson Hobbs, executive vice president of government affairs for Wine & Spirits Wholesalers of America (WSWA), said in a press release supporting the new Beverage Regulatory Parity Act, introduced on Monday by Reps. Beth Van Duyne (R-TX) and Greg Landsman (D-OH).
“We thank Congresswoman Van Duyne and Congressman Landsman for their leadership advancing a framework that treats these products differently from other hemp products and builds on the alcohol regulatory system’s long record of consumer protection,” he said.
“The conversation has evolved beyond whether hemp-derived beverages should be regulated to how they should be regulated,” Dobbs said. “This legislation moves that conversation forward by following the long record of success in regulating alcohol through a federal and state partnership.”
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 hemp product ban until December 11, with the support of the White House. 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 in a vote of 61-32.
Hemp industry supporters believe the delay, if approved by the House and enacted into law, will give them more time to convince Congress to enact regulations for THC products as an alternative to prohibition.
Separately, the Beverage Alcohol Merchants Coalition (BAMCO)—a coalition of alcohol retailers—also endorsed the new hemp THC drinks bill.
“We applaud Representatives Van Duyne and Landsman for putting forward a regulatory framework for low-dose hemp beverages that aligns interests and addresses consumer demand,” Jonathan Grella, a spokesman for BAMCO, said in a press release.
“Their bill provides a path to a safe, regulated marketplace for low-dose hemp beverages while supporting Congress and the Administration in removing synthetic and inhalable products,” he said. “We look forward to working with Representatives Van Duyne and Landsman to build on the proven safeguards of the beverage alcohol system and get the regulation right.”
BAMCO’s members include Total Wine & More, BevMo! by Gopuff, ABC Fine Wine & Spirits, Spec’s Wine and Spirits & Finer Foods, as well as a group of hemp product wholesalers.
“This is exactly the kind of serious, bipartisan work needed to move the conversation from prohibition to responsible regulation,” Grella said. “Consumers deserve safe products, parents deserve strong protections for children, and responsible businesses deserve clear, enforceable rules. Our members are ready to be part of the solution.”
Under the new bill, adults over 21 could purchase and consume hemp THC beverages with up to 5 milligrams of total intoxicating THC per serving.
There would be a new federal tax on hemp drinks of 8 cents per milligram of intoxicating THC.
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.
Legal beverages could only contain naturally-occurring cannabinoids that are cultivated and processed within the U.S.
Manufacturers, 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.
