Bipartisan lawmakers in the U.S. House of Representatives have introduced legislation that would preserve access to certain hemp-derived THC products while establishing new federal rules governing their manufacture, labeling, taxation and sale.
The Lawful Hemp Protection Act was filed Wednesday by Representatives Andy Barr (R-KY) and Angie Craig (D-MN). The proposal would partially reverse broad federal hemp restrictions scheduled to take effect November 12.
In a press release, Barr said “Kentucky farmers helped build America’s hemp industry and they deserve certainty. The Lawful Hemp Protection Act protects Kentucky agriculture, safeguards consumers and establishes a commonsense regulatory framework that allows this important industry to continue to grow while ensuring products are safe and kept out of the hands of children.”
Under legislation signed into law last year, the federal definition of hemp is set to change so that finished products containing more than 0.4 milligrams of total THC per container are no longer considered legal hemp.
Barr and Craig’s 60-page bill would replace that limit with a framework allowing hemp and its derivatives to contain up to 1% total THC on a dry-weight basis. The measurement would apply to finished consumer products rather than raw flower, unfinished ingredients or products still being processed.
Products containing cannabinoids that are not naturally found in or capable of being produced by the hemp plant would remain prohibited.
The proposal would restrict hemp-derived consumable products to those 21 and older, requiring purchasers to present government-issued identification during in-person or online transactions. Products could not use branding, packaging or marketing designed to appeal to minors or imitate well-known commercial products.
Labels would be required to disclose the amount of THC per serving and package, state that the product is for adults 21 and older and display a government warning regarding pregnancy, impaired driving and potential health risks. The Food and Drug Administration would also be directed to establish maximum allowable amounts for individual cannabinoids within 18 months.
Hemp-derived products would generally need to be cultivated, processed, packaged and labeled in the United States. Packaging would also be required to meet federal child-resistance standards.
The bill would impose a 5% fee on the retail price of most hemp-derived consumable products sold through interstate commerce. Hemp beverages would instead face a tax of 5 cents for every milligram of THC they contain.
The Alcohol and Tobacco Tax and Trade Bureau would oversee retailer registration and establish a three-tier manufacturing, distribution and retail system for hemp-derived beverages similar to the system used for alcohol.
Hemp and its derivatives containing no more than 0.3% delta-9 THC on a dry-weight basis were federally legalized through the 2018 Farm Bill signed by President Trump during his first term. The law resulted in a rapidly expanding market for CBD, delta-8 THC, hemp beverages and other cannabinoid products.
Trump has since called on Congress to reconsider the restrictions scheduled to take effect in November, warning that they could eliminate access to nonintoxicating CBD products used by many Americans.