Push to allow more hemp THC drinks in Colorado fails as federal ban looms

A push to allow hemp THC beverages to be sold in bars and restaurants in Colorado failed in the state Legislature this week.

Senate Bill 164 would have created a legal pathway for sales of hemp-derived THC drinks outside of licensed cannabis retailers. But due to a “lack of votes,” the bill’s chief sponsor withdrew the proposal amid opposition from the marijuana industry, according to The Denver Gazette.

“What is lacking here is not interest,” state Sen. Julie Gonzalez, a Denver Democrat, told the newspaper.

“What is lacking is not expertise. What is lacking is political will.”

Are hemp THC beverages legal in Colorado?

Supporters argued that the bill could help Colorado build a regulated market for cannabis beverages as consumer interest in the sector continues to grow.

Currently, hemp beverages containing 1.75 milligrams of THC or less can be sold in bars and liquor stores. Gonzalez’s bill would have increased the limit to 10 mg per 12-ounce serving.

Grocery and convenience stores would have been permitted to sell lower potency products with up to 3 mg of THC.

Cannabis operators view drinks as a promising category for new consumers looking for alternatives to smoking or vaping. And beverage companies aware of declining alcohol consumption are keen to develop a new product attractive to wellness-minded customers.

But in Colorado, the debate exposed the ongoing tension between state-regulated cannabis and hemp-derived competition.

In comments to lawmakers, Adam Foster, with an organization called the Responsible Cannabis Coalition, said the effort was a “ploy” by hemp companies headquartered out-of-state to sell THC products in Colorado outside of the regulated cannabis market, The Gazette reported.

“We ask that you stick with the common-sense idea that all intoxicating THC products should be regulated the same under Colorado law,” he said, according to the newspaper.

Did the Farm Bill include hemp THC protections?

Meanwhile, nearly all hemp THC products are due to lose their protections under federal law in November. And so far, efforts to delay or stop the ban have failed in Washington.

Draft Farm Bill language that passed the House of Representatives on Thursday did not have any hemp THC protections, adding to uncertainty for businesses built around products containing hemp-derived THC.

Republican U.S. Reps. James Comer and Andy Barr of Kentucky each pursued separate amendments tied to the looming federal crackdown on most nonindustrial hemp-derived products now on the market, as convenience store trade association NACS reported.

Barr withdrew his amendment, which would have set up a regulatory and licensing framework, while Comer’s proposal to delay the deadline by a year was not allowed to advance.

The U.S. Senate must now pass its own version of the Farm Bill. A bipartisan proposal that would allow individual states to opt out of the federal hemp THC ban has yet to be heard in committee.