A bipartisan U.S. Senate bill designed to keep hemp-derived cannabinoid products federally legal while establishing a national regulatory framework is expected to be introduced soon.
Senator Tim Sheehy (R-MT) and Senator Amy Klobuchar (D-MN) have been working for months on the proposal, which is expected to serve as the Senate counterpart to the Lawful Hemp Protection Act introduced in the House by Representatives Andy Barr (R-KY) and Angie Craig (D-MN).
Sheehy first publicly discussed the forthcoming legislation in July, saying a bipartisan group was coming together around a regulatory alternative to prohibition and that legislation would be introduced “relatively soon.” According to a source familiar with the matter, the proposal is nearing introduction.
Although the final Senate text has not yet been released, Sheehy’s description of the proposal has closely tracked the approach taken by the House’s Lawful Hemp Protection Act.
That legislation would replace strict federal restrictions on hemp-derived cannabinoid products with a comprehensive regulatory structure. It would redefine hemp as cannabis containing no more than 1% total THC on a dry-weight basis, prohibit sales of hemp-derived cannabinoid products to anyone younger than 21 and establish federal manufacturing, testing, labeling and packaging requirements.
The House proposal would also restrict certain synthetic or artificially modified cannabinoids and establish federal taxes on hemp-derived cannabinoid products.
For hemp beverages, the legislation would impose a tax of 5 cents per milligram of THC. Other hemp-derived cannabinoid products containing THC would be subject to a 5% retail tax.
Congress is working against a December deadline after President Donald Trump signed legislation in September delaying most of the new federal hemp restrictions until December 11.
The temporary extension gives lawmakers additional time to develop a longer-term approach to regulating hemp-derived THC and other cannabinoid products before the stricter provisions take effect.
Klobuchar said following passage of the extension that the additional time would allow Congress to pursue a long-term solution while avoiding an abrupt disruption for farmers, manufacturers, retailers and consumers.
Introduction of the Sheehy-Klobuchar proposal would give supporters of a regulated legal hemp market bipartisan legislation in both chambers of Congress as lawmakers consider whether to establish nationwide standards rather than allow the tougher federal restrictions to take effect in December.
