A congressional Republican who plans to immediately introduce legislation to federally regulate hemp-derived products instead of a ban that would take effect this year says the plan is opposed by a coalition of odd bedfellows that includes the alcohol industry, marijuana companies and opponents of cannabis legalization.
Rep. Andy Barr (R-KY) said during a Zoom meeting Thursday with members of the Hemp Industry & Farmers of America (HIFA) that his bill would create a “regulatory and tax framework” that would “provide a lifeline and … a permanent legal pathway to this market,” according to a transcript obtained by Marijuana Moment.
Hemp derivatives containing less than 0.3 percent delta-9 THC by dry weight were made federally legal under the 2018 Farm Bill signed by President Donald Trump in his first term. But late last year, Trump signed new legislation containing provisions that will redefine hemp so that only products with a total of 0.4 milligrams of THC per container will be legal starting Nov. 12.
Barr said the recriminalization of THC hemp products would “jeopardize the crop that’s being stored right now” after farmers grow it and thwart “future opportunities to grow this crop.”
“That’s why we need this legislation to establish a regulatory framework and create parity with other similar products, especially in the beverage category,” he said, according to a transcript of the meeting. “We want to create a level playing field with other adult beverages so that farmers have the confidence to be able to sell in a mature market with protections that achieve what we want to achieve (for safety, targeting age consumers, but also supporting our farmers all the way).
But the effort faces opposition not only from prohibitionist forces, but also from segments of the alcohol industry and marijuana businesses that sell cannabis products under limited state-based licensing systems, according to congress.
Distilled spirits producers have “understandable concerns about competition” from hemp-derived THC drinks, Barr said. He added that companies at the wholesale level of the alcohol industry could be an ally because they “want to distribute” cannabis drinks.
“I think the wholesaler wants a three-tiered system, so we’ve worked to try to get that, again, with a one-to-one, where there would be direct-to-consumer exemptions, where it would make sense to be on a state-by-state basis,” he said.
“We recognize that the spirits and other adult beverage groups don’t want competition. That’s natural. But what we want is regulation and taxation… We want a level playing field. Competition and choice is something I believe in. And giving consumers choices. Competition is good… You’re looking at one of the bourbon industry’s staunchest advocates for choice, I think he might be pro-hemp and pro-Kentucky bourbon.
“Then you have prohibitions,” said the congressman. “And they are there, and they may not be convincing, but they exist.”
“And finally, there’s another category, and that’s the marijuana industry that also sees it as competition,” Barr said, according to a transcript of the meeting. “They’re going to want to push the industry into specialized dispensaries. My view is that it’s not the same. Maybe that’s right for the marijuana industry, but I don’t think that’s right for this hemp-derived products industry.”
Barr’s next bill, called the “Hemp Protection Act” in drafts seen by Marihuana Moment, would impose age-restricted labeling requirements on hemp products, subject to Food and Drug Administration (FDA) oversight. There would also be taxes on hemp products administered by the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB).
Meanwhile, White House officials recently briefed Barr’s office on pending legislation to create a regulatory framework for hemp..
Last month, Vince Haley, director of the White House Domestic Policy Council, and James Braid, assistant to the president for legislative affairs, sent hemp policy suggestions to the congressman’s office.
“We appreciate your work to advance policy,” the executive order Trump signed in December, which included provisions to protect Americans’ access to CBD products, the staff wrote in a letter to Congress.
“We are submitting draft legislation and comments to your account to address the final statutory definition of hemp-derived cannabinoid products to ensure that Americans have access to adequate full-spectrum CBD products while maintaining Congress’ intent to limit the sale of products that pose serious health risks,” White House officials said, according to a social media screencast. “We are ready for further discussion and technical assistance.”
The annex to the administration’s proposed legislative text has not been released publicly, and the White House and Barr’s office did not respond to Marihuana Moment’s requests for more details.
During a meeting with representatives of hemp companies on Thursday, the congressman said there is a “tremendous opportunity” in agriculture, farming and this industry in general, according to the transcript.
“I’m from central Kentucky. All four of my grandparents were born and raised in central Kentucky. I grew up in central Kentucky. And at one time, that was the burley tobacco capital of the world. Since tobacco production has declined, our farmers have been looking for alternatives. And industrial hemp and hemp-derived products have created a tremendous opportunity and this market has created a tremendous opportunity. I look forward to consumers working with the industry to provide stability and certainty to the industry. for this to be properly seen as a mature industry, for the law to have some permanence and to reduce the uncertainty that exists today, so that this market can thrive.
Barr also said that cannabis products could provide a safer alternative to prescription drugs, especially for military veterans.
“To the extent that we can promote opioid alternatives or opioid avoidance and help veterans with anxiety or sleep deprivation or insomnia or post-traumatic stress disorder, that’s what we want to do, create those opportunities for our veterans to care for them,” he said. “We think this is a great opportunity for our veteran community.”
HIFA officials on the call said they expect Barr’s bill to be introduced next week, although the proposed deadline for the legislation has already been pushed back several times in recent weeks as Barr has engaged with stakeholders, tweaked draft provisions and sought initial sponsors to introduce the proposal.
The House of Representatives recently a Farm Bill with provisions to support producers of industrial hemp—but without any language delaying or changing the federal recriminalization of THC hemp products that takes effect in November.
Trump last month It inspired lawmakers in Congress to take action to change the currently planned hemp banwhich suggested that full-spectrum CBD products threaten to be federally recriminalized.
“I’m calling on Congress to update the Act so Americans can continue to have access to the full-spectrum CBD products they trust and support, while maintaining Congress’ intent to restrict the sale of products that pose health risks,” the president said in a Truth Social message Thursday, the same day his administration announced it is moving forward to re-regulate marijuana.
“We need to do this RIGHT and FAST, especially for those who have found CBD to help them,” he said. “Also, I’m told it will help our BIG FARMERS that we love and will always be around.”
The main retailer Target, meanwhile, recently moved to expand sales of hemp THC drinks to more states.
The Wine & Spirits Wholesalers of America (WSWA), for its part, according to the House Failure to include provisions to delay or modify the ban on THC hemp products was a “missed opportunity.”
“A ban will not take these products off the market, it will push consumers into unregulated online channels without age verification, product standards or accountability,” said Dawson Hobbs, WSWA executive vice president of government affairs.