Bipartisan Bill Aims to Save Hemp THC Products From Looming Federal Ban

(Photo: Eva Russo/Richmond Times-Dispatch via AP)

A bipartisan group of lawmakers has introduced legislation that would replace a looming federal crackdown on hemp-derived THC products with a nationwide regulatory framework modeled in part on the alcohol industry.

Reps. Andy Barr (R-Ky.) and Angie Craig (D-Minn.) on Wednesday unveiled the Lawful Hemp Protection Act, a proposal that would legalize, regulate and tax hemp-derived cannabinoid products while establishing national standards for manufacturing, labeling, sales and distribution.

The legislation arrives as the hemp industry faces a Nov. 12 deadline, when language approved by Congress last year is scheduled to take effect that would effectively outlaw most consumable hemp products sold today.

Instead of prohibition, the new bill would create a federal regulatory system overseen by the U.S. Food and Drug Administration while allowing states to maintain stricter rules if they choose.

One of the most significant provisions would raise the federal definition of legal hemp from the current limit of **0.3% delta-9 THC** to **1% total THC on a dry-weight basis**, potentially preserving many hemp-derived products that would otherwise become illegal.

The proposal would also:

•  Restrict sales of hemp cannabinoid products to consumers 21 and older.
• Require new packaging, labeling and marketing standards.
• Direct the FDA to establish cannabinoid limits for finished products within 12 months. If the agency misses that deadline, the legislation would automatically cap ingested products at 5 milligrams of cannabinoids and inhalable or topical products at 50 milligrams.
• Create a three-tier distribution system for hemp beverages similar to the one used for alcohol, separating producers, distributors and retailers.
• Impose a 5% retail excise tax on hemp cannabinoid products, along with an additional 5-cent-per-milligram THC tax on hemp beverages.

The legislation would also prohibit cannabinoids that do not naturally occur in cannabis or are synthesized, a provision aimed at restricting intoxicating hemp-derived compounds such as delta-8 and delta-10 THC.

Barr said the bill would provide long-awaited certainty for Kentucky’s hemp industry while establishing consumer protections.

“Kentucky farmers helped build America’s hemp industry and they deserve certainty,” Barr said in a statement. “The Lawful Hemp Protection Act protects Kentucky agriculture, safeguards consumers, and establishes a commonsense regulatory framework.”

Craig said the proposal would provide regulatory clarity for farmers, brewers and small businesses while preserving consumer choice.

The measure has already attracted broad support from hemp and beverage organizations, including the Hemp Beverage Alliance, Hemp Industry & Farmers of America, Kentucky Hemp Association, Wine & Spirits Wholesalers of America and the Coalition for Adult Beverage Alternatives.

Jonathan Miller, general counsel of the U.S. Hemp Roundtable, called the legislation a “serious, science-based, and bipartisan solution” that would replace prohibition with responsible regulation, according to Law360.

Not everyone agreed.

The American Trade Association for Cannabis & Hemp criticized the proposal, arguing it would effectively revive the market for intoxicating hemp-derived products that Congress sought to eliminate when it approved the federal hemp restrictions last year.

The bill is one of several competing hemp proposals now before Congress, including measures that would delay implementation of the November ban, leave regulation entirely to the states or preserve only CBD products.