FACT SHEET ON RECENT FEDERAL ACTION

HEMP BEVERAGES ARE ALREADY REGULATED AT THE STATE LEVEL

  • The 2018 Farm Bill expressly legalized hemp

  • In the absence of a federal regulatory framework, states have moved forward with their own regulations. 

    • 40 states have regulations on the books for hemp beverages

    • In almost every state, these frameworks include testing, age-gating, label requirements, and milligram caps.

  • The hemp beverage industry absolutely wants sensible regulations at the federal level.

THIS WEEK’S VOTE WAS A VOTE TO END THE GOVERNMENT SHUTDOWN, NOT TO CLOSE DOWN THE HEMP BEVERAGE INDUSTRY

  • This week’s vote to open the federal government was just that: a vote to open the government. 

  • Unfortunately, the hemp beverage industry was a victim in that bill package. Language to shut down our industry was included without congressional debate or public discussion.

  • If there is a silver lining, it is that the long-term future of the hemp industry is now front and center with Congress and in the national media.

FOR NOW, IT’S BUSINESS AS USUAL. BUT CONGRESS MUST WORK WITH INDUSTRY TO CREATE A FEDERAL FRAMEWORK

  • The hemp beverage industry remains open for business this week, next week, next month, and next year.

  • States have already demonstrated how to regulate hemp beverages.

  • Stakeholders in the brewing, distribution, retail, convenience, and hemp beverage industries stand ready to work with Congress to get this done.

BILL DETAILS

  • Creates a ONE YEAR timeframe for implementation. In other words, hemp beverage legality stays status quo federally for one year from the time the bill is signed.

  • Creates a .4 mg per serving cap on beverages per container (not per serving).

  • There are no carveouts for different products or sales channels. This broad language affects the entire hemp industry in 365 days. 

  • Federal law does not automatically change state law. States may need to modify their laws. There is no deadline by which states need to change their laws. 

  • After one year, if there is no change to federal law, products above 0.4mg will be classified as either marijuana or a synthetic cannabinoid - both of which are Schedule 1 substances on the CSA.

HBA SUPPORTS REGULATIONS

  • HBA supports regulatory principles that set sensible limits for THC content, keep products away from children, provide robust product testing, and create tax revenues for the public benefit. 

  • These principles can be found on the trade association’s website: hempbeveragealliance.org/principles.

  • HBA looks forward to working with Congress and other stakeholders to build a federal framework that works for everyone.


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HEMP BEVERAGE INDUSTRY CONTINUES TO THRIVE DESPITE CONGRESSIONAL SETBACK