Major alcohol distributors and retailers are supporting bipartisan legislation that would establish a federal regulatory system for hemp-derived THC beverages rather than subject them to a looming prohibition.
The Beverage Regulatory Parity Act, introduced by Reps. Greg Landsman and Beth Van Duyne, would allow certain hemp drinks to remain on the market while placing them under taxation, testing, labeling, and sales requirements modeled partly on the alcohol industry.
The Wine and Spirits Wholesalers of America has endorsed the proposal. Dawson Hobbs, the group’s executive VP for government affairs, said hemp beverages with controlled THC levels should be sold within a regulated adult marketplace.
The measure comes as Congress considers changes to federal hemp policy. Under the 2018 Farm Bill, hemp products containing no more than 0.3% delta-9 THC by dry weight were legalized federally. Legislation signed last year would substantially tighten that definition, limiting legal products to those containing no more than 0.4 mg of total THC per package.
That restriction was originally scheduled to take effect November 12. However, a Senate-approved funding measure postpones implementation until December 11, although the House must still act on the provision. An amendment from Senator Ted Budd seeking to remove the delay was tabled by a 61-32 vote.
Hemp businesses and advocates have argued that the additional time could provide an opportunity for Congress to establish a regulatory framework instead of imposing an outright ban.
The Beverage Alcohol Merchants Coalition, which represents alcohol retailers, has also backed the legislation. Jonathan Grella, the coalition’s spokesman, said the proposal could establish safeguards for consumers while giving businesses clearer requirements.
Under the proposed legislation, consumers aged 21 and older could purchase beverages containing as much as 5 mg of intoxicating THC per package. The products would also face a federal excise tax of 8 cents for each milligram of THC.
Oversight would be divided among the Agriculture Department, the TTB, and the DHHS. Manufacturers would face requirements covering product testing, labels, packaging, serving sizes, and container limits.
The legislation would permit only naturally occurring cannabinoids produced and processed in the U.S. Producers, wholesalers, and retailers would need federal permits, while containers holding multiple servings could not exceed 750 milliliters.
States, tribes, and local governments would retain authority to impose tougher requirements. However, the bill would prevent them from blocking hemp beverages merely because they are being transported through their jurisdictions to another destination.
The marijuana industry and its leading actors like Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) are likely to keep a close eye on this legislation as it makes its way through Congress as it could have ramifications for the cannabis industry.
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