Momentum to redraw federal rules for hemp-derived cannabinoid products yet again is building on Capitol Hill, where lawmakers are expected to return to the issue after Tuesday’s midterm elections.
But not all products currently on the market claiming the federal Farm Bill protections scheduled to run out on Dec. 11 will make the cut, a major hemp lobby told MJBizDaily.
“We expect there to be some real movement after the election,” said Jonathan Miller, general counsel for the U.S. Hemp Roundtable.
“We’re increasingly confident we will have a fix,” he added. “We’re not sure what will be in it, but we feel really good about it.”
But rather than popular hemp-derived THC drinks or low-dose gummies, the top priority for Congress will be to ensure the viability of President Donald Trump’s CBD reimbursement plan, currently stalled out thanks to the looming ban.
“The most popular product on Capitol Hill is CBD,” Miller said. “That’s the first thing that will be part of any solution.”
The fate of other products, such as inhaled hemp flower or vaporizers, is far less certain, he said. And many are already forbidden under state law.
Is Congress going to save the estimated $38 billion hemp industry?
Lawmakers on both sides of the partisan divide have introduced proposals to regulate rather than ban certain hemp-derived cannabinoid products. But so far, none have advanced to a hearing.
Pending hemp regulatory bills include:
- The Hemp Enforcement, Modernization and Protection (HEMP) Act, introduced in January by Republican U.S. Rep. Morgan Griffith of West Virginia and Texas Democratic U.S. Rep. Marc Veasey, which is intended to be limited to CBD products like the ones meant to be partially covered by a Center for Medicaid and Medicare Services pilot.
- The Hemp Safety Enforcement Act, introduced in April by U.S. Sen. Amy Klobuchar, a Minnesota Democrat, and U.S. Sen. Rand Paul, a Kentucky Republican, would allow states to simply opt out of the federal ban.
- The Lawful Hemp Protection Act, introduced in August and sponsored by U.S. Rep. Andy Barr, a Kentucky Republican, and Minnesota Democratic Rep. Angie Craig, would tax and regulate hemp THC products on the federal level for the first time and set new product standards, such as a higher permissible THC content.
- The Beverage Regulatory Parity Act, also introduced in August and cosponsored by Texas Republican U.S. Rep. Beth Van Duyne and Ohio Democratic U.S. Rep. Greg Landsman, which would exempt THC beverages from the ban and impose a federal excise tax based on THC percentage.
Griffith on Monday said that a spending package passed as a reconciliation bill, which needs only a simple majority to pass the U.S. Senate rather than a filibuster-proof 60-vote supermajority, is a likely path forward for hemp regulations.
However, such a bill would also have to include tax provisions.
Will Congress save hemp-derived THC beverages?
One possibility would be pairing Griffith’s CBD bill with Van Duyne and Landsman’s beverage carveout, Griffith told Roll Call.
A bill that just allowed for beverages to keep federal protections is a nonstarter, Hemp Roundtable’s Miller told MJBizDaily.
“It won’t be a beverage carve-out,” he said.
Much more likely to pass is a proposal that includes key elements, including:
- Requirements for accurate product labeling and testing
- Mandated good manufacturing practices
- Age-gating and packaging restrictions that keep products out of the hands of minors and that prohibit packaging that mimics popular food items
- A ban hemp imports from China, the world’s largest hemp producer
U.S. companies imported about 400,000 kilograms of hemp oil from China last year, compared to 3 million kg from Canada, according to the most recent federal data.
A ban on Chinese imports is likely to appease lawmakers in deep-red rural areas where farmers have embraced hemp as a new cash crop.
Said Miller: “It only helps American farmers.”
Chris Roberts can be reached at chris.roberts@mjbizdaily.com.
