Hemp and cannabis attorneys respond to NAAG: Prohibition is a “disastrous policy”
Today the Attorneys Committee of the Hemp Beverage Alliance sent a letter to Congressional leadership, in response to a recent letter sent to Congress by the National Association of Attorneys General (NAAG). Here’s what they said:
The Honorable Susan Collins
The Honorable Tom Cole
The Honorable John Boozman
The Honorable Glenn “GT” ThompsonDear Chairs:
We, the undersigned attorneys supporting and representing clients in the hemp industry, many of whom are members of the Hemp Beverage Alliance (HBA), write to you in response to the October 24, 2025 letter from the National Association of Attorneys General (the “AG Letter”), in opposition to a “hemp ban” contained in the Fiscal Year 2026 Agriculture Appropriations bill, Section 759 (the “Appropriations Bill”), and in support of reasonable and appropriate regulations for consumable hemp products.
As noted in the AG Letter, the Agricultural Improvement Act of 2018 legalized hemp under federal law. Hemp is a legislative construct. Both hemp and cannabis come from the same plant, Cannabis Sativa L. The difference is that hemp is grown to under 0.3% THC on a dry weight basis, and regulated cannabis (which remains federally illegal under the Controlled Substances Act) is grown to over 0.3% THC and sold in state-legal dispensaries. We agree with our State Attorneys General that, like other industries, there are bad actors in the hemp market that create products that illegally copy brands and sell to minors; however, we strongly assert that banning all hemp derivatives is an overbroad, disastrous policy that would punish responsible commerce and exacerbate the very problems the AGs seek to solve.
Over 40 states have finished hemp product regulations including more than a dozen states with robust regulatory frameworks, including Alabama, Colorado, Connecticut, Florida, Louisiana, New York, Tennessee, Minnesota, Georgia, Kentucky, Iowa, and Virginia. Other states are moving in the same direction of regulating versus banning (see, for example, Ohio and Texas). These state laws and regulations outline new licensing requirements for retail and manufacturing and include mandated testing, age gates (online and in store), label requirements (including warnings), disclosures, marketing restrictions, direct-to-consumer rules and restrictions, potency limits, and penalties for noncompliance. Compliance is generally overseen by either agriculture, cannabis or alcohol state agencies.
Most of these states have also defined and banned synthetic cannabinoids, including the cannabinoids listed in the AG letter, like Delta-8, Delta-10, THC-O, THCP, and HHC. These states are doing the work necessary to create a regulatory framework that protects adult consumers while dramatically decreasing the likelihood of children accessing hemp-derived products. These states are also engaging in enforcement activities, both with respect to the packaging and labeling of these products (see, for example, Florida and Missouri) and direct to consumer shipments (see, for example, Iowa, Oregon, Colorado and Maryland).
The AG Letter overreaches in a number of instances. For example, the signatories posit that “state efforts to outlaw hemp-derived psychoactive products to protect their citizens cannot solve this problem” and that “[s]uch efforts only lead to an uneven and ineffectual patchwork of bans and regulations that differ from State to State.” The AG Letter claims that state laws “will not stop the flood of mail-order THC products from streaming through interstate commerce.” We respectfully disagree.
As attorneys who practice in the world of intoxicating products, we are accustomed to advising on and complying with disparate state laws, rules, and guidance. Alcohol is subject to a “patchwork” of state laws and regulations across all 50 states and enforcement has effectively stopped any illegal mail-order alcohol from streaming through interstate commerce. Cannabis products are banned in a number of states and highly regulated in others, and yet our clients follow the applicable rules by managing state-level compliance specific to each state. These clients are manufacturers, suppliers, distributors, brand owners, retailers, packagers, blenders, and all of the ancillary businesses that service the consumable hemp industry.
The same holds true for the hemp industry. The businesses that we work with and support have been asking for regulations for years, including from the FDA, and are eager to work within defined regulatory frameworks, even if those frameworks might differ on a state-by-state basis. Far from being “ineffectual,” the states with hemp regulations, like Minnesota and Georgia, have found hemp businesses to be upstanding members of their communities who are just as interested in protecting children from intoxicating products as their state legislators. In addition, these states have embraced certain hemp-derived products, like hemp-derived THC beverages, as an alternative to alcohol. Some states like California, put emergency regulations in place, with 99.8% compliance – hardly ineffectual – and are now rolling consumable hemp products into their existing cannabis regulatory framework.
While we appreciate the efforts of our Attorneys General to protect the public from harm, and we agree that regulations are needed across the country, banning hemp products with any traceable THC via the appropriations process is not the way forward, especially when there has been little to no debate on this topic by Members of Congress. As House Representative James Comer from Kentucky noted in a letter to Speaker Mike Johnson opposing the ban:
“The inclusion of this language in the FY26 Agriculture-FDA Appropriations Bill clearly violates the prohibition in clause 2(b) of rule XXI of the rules of the House of Representatives, which provides that ‘a provision changing existing law may not be reported in a general appropriation bill.’”
Indeed, it appears that some of the Attorneys General who signed the letter do not actually support the currently proposed hemp ban in the Appropriations Bill. Last week, Minnesota Attorney General Keith Ellison, who signed the AG Letter, clarified his position with a Substack post titled, “Minnesota is developing a craft THC industry to be proud of.” In the post, AG Ellison acknowledged that he had created confusion on his position by signing the AG Letter and clarified that he is “and will remain a supporter of Minnesota’s THC edible industry that follows state law, supports businesses, farmers, and entrepreneurs across Minnesota, and creates products that people enjoy.” He further clarified that “[o]ne of the primary reasons [he] signed onto the letter is to ensure this industry continues to thrive.”
Similarly, in response to an email from one of the signatories to this letter, Colorado Attorney General Phil Weiser clarified that he “supports closing legal loopholes that allow the sale of recreational synthetic Tetrahydrocannabinol (THC) products without proper disclosure and regulation, not the outright banning of hemp products. Attorney General Weiser believes that this is an important mechanism to ensure consistent age restrictions, labeling standards, and safety requirements for these products.” (emphasis added)
Reading AG Ellison’s Substack and AG Weiser’s clarifying email response, it is clear that their desire to “close the loophole” that made hemp federally legal does not mean that they want a full ban, as is currently proposed in the Appropriations Bill. Instead, like those of us signing this letter, AG Ellison and AG Weiser want smart regulations that protect consumers.
Putting aside the confusion created by the AG Letter, and the flawed process of using a funding bill to “close the loophole,” the impact of such a ban cannot be understated. The hemp industry at large, including the industrial hemp farmers who the Attorneys General argue will be unscathed by such a ban, will in fact be decimated, particularly if no detectable THC is permitted in consumable products, as is currently included in the Appropriations Bill. Such a rule would make nonintoxicating CBD products illegal as well, something we believe the Attorneys General signing this letter do not support.
American farmers are already struggling mightily – this will be the nail in the coffin. The hemp industry supports 320,000 American jobs and generates $28.4 billion in regulated market activity. In Texas alone, a ban would shut down approximately 6,350 businesses, force job losses for 40,000 citizens, and destroy $7.5 billion in economic activity. In Minnesota, a ban would shutter 5,345 retailers licensed to sell hemp-derived edibles and beverages. These figures underscore the importance of preserving a regulated hemp market to support small businesses, farmers, and local economies. Consumers also want these products. Of significance, companies like Total Wine & More, Binny’s, Target, Circle K, Fresh Thyme, Doordash and others are now carrying hemp-derived lower potency edibles and beverages, and consumers are thrilled to have an alternative to alcohol.
As attorneys who work in the hemp industry, we ask that Congress allow the states to continue to regulate hemp products and avoid inclusion of a hemp ban in the Appropriations Bill that will prevent adult consumers from accessing these products and have a disastrous impact on so many well intentioned, hard-working, small business owners, who welcome a regulated environment.
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Alcohol distributors rally in support of hemp beverages.
More than 50 alcohol distributors from across the county sent a letter to Congress today, urging them to regulate hemp beverages. Here’s what they said:
Dear Speaker Johnson, Minority Leader Jeffries, Majority Leader Thune, Minority Leader Schumer,
On behalf of beer, wine, and spirits wholesalers across the United States, we respectfully urge Congress to avoid language that would create a prohibition on intoxicating hemp consumable products. Instead, we offer our support to help Congress effectively regulate and tax these products like alcohol.
We applaud the 2018 Farm Bill for unlocking new opportunities for American farmers, entrepreneurs, manufacturers, and wholesalers, like ourselves. Many of us are 3rd, 4th, and even 5th-generation American family businesses that have responsibly sold alcohol since the repeal of prohibition with the 21st Amendment in 1933. Our collective operations represent over $13 Billion in revenue, 20,000 employees, and span 26 States.
As demand for alcohol has shifted downwards in recent years, hemp products have created jobs, driven new investment, and helped us meet changing consumer demand. If prohibition is enacted, that demand will not disappear—it will simply move into unregulated channels, undermining both public health, safety and legitimate businesses.
The debate on hemp derived products is very analogous to the debate our forefathers endured at the beginning of the 20th Century. The 18th Amendment banned alcohol in 1919, but the ensuing 14 years of prohibition only created a thriving illicit market and a significant number of bad actors. Our forefathers realized the only way to eliminate these bad actors was to establish a robust regulatory framework where each State was given the authority to regulate products safely within its borders in a manner that respected the ethos of the citizens.
After the 2018 Farm Bill’s passing, a significant amount of American ingenuity led to the creation of many of the consumable hemp products on the market today. As a result, States have risen to the occasion to regulate and protect their citizens. As of this writing, all 50 States have implemented laws related to hemp. Additionally, 40 States have established a regulatory framework for consumable hemp products, with others planning debates in their next session.
We fully appreciate concerns regarding product integrity, underage access, and public safety. We offer nearly 100 years’ experience of safely bringing regulated beverages to market and keeping illicit products out. Adulterated and illicit alcohol is not an issue in America thanks to strong state-based regulations, trade practice rules, and laws that support wholesaler independence. With a century of alcohol experience, we welcome the opportunity to help educate Congress on how best to regulate intoxicating consumable hemp products.
We respectfully urge you to oppose efforts to close the so-called “hemp loophole” through any spending package or Farm Bill. Instead, we urge you to work with our industry to create comprehensive rules that protect communities, ensure product safety, and give responsible companies the certainty we need to operate safely and successfully. We stand ready to partner with you in this process.
Thank you for your consideration.
Tell Congress: Stop the Hemp Beverage Ban!
As we discussed on this week’s call, we are urging HBA members to immediately contact their U.S. senators and representatives and urge them to remove appropriations bill language that would kill the hemp beverage industry.
Please click here for guidance on how to craft an email and send it to your elected officials. Be sure to provide any feedback in the #fda-and-congress Slack channel.
MICHIGAN LAWMAKERS LOOK TO HEMP BEVERAGES FOR NEW STATE REVENUE SOURCE
A plan to regulate hemp beverage sales in the Michigan is seen as a source of needed revenue for the state, an example for other legislatures to follow.
"The real substance of proposed hemp regulations has yet to be finalized,” State Rep. Joseph Aragona, R-Clinton Township emphasized to Crain’s Detroit Business, but he said if it ultimately gets through the Legislature, the move could provide “hundreds of millions of dollars” in new taxes to help pay for various infrastructure needs.
“We’re still working out those details,” Aragona said. “In general, this should be hundreds of millions of dollars in additional revenue, easy.”
The news comes at a time when Gov. Gretchen Whitmer and lawmakers are struggling to figure out new income streams to pay for road repairs across the state.
Read the full article here (paywall protected): Crain’s Detroit Business
HBA SPEAKS WITH LEGISLATORS IN MICHIGAN ABOUT SENSIBLE REGULATION
HBA President Christopher Lackner recently testified about the need for sensible regulations on hemp beverages before the Michigan House Regulatory Reform Committee. Watch the testimony here.
HEMP BEVERAGE ALLIANCE LAUNCHES CAMPAIGN TO ESTABLISH REGULATORY FRAMEWORK IN MICHIGAN
(LANSING, Mich.) – The Hemp Beverage Alliance (HBA), the trade association for the hemp beverage industry with nearly 400 members in the United States, Canada and the United Kingdom, is establishing a coalition to create and support a sensible regulatory framework for hemp beverages in Michigan.
HBA representatives will meet on Thursday with several legislators and testify about the need for sensible regulations on hemp beverages before the Michigan House Regulatory Reform Committee.
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.
Hemp beverages are seltzers, sodas, mocktails, coffees, teas, and other non-alcoholic drinks that contain a small infusion of hemp-derived cannabinoids. Since hemp was legalized in the 2018 Farm Bill, states like Minnesota, Kentucky, Georgia, Tennessee and others have developed regulatory frameworks to create a safe and thriving industry.
“Across the country, adults increasingly are turning to hemp beverages as an alternative to what’s currently available at the bar or liquor store," said Christopher Lackner, president, Hemp Beverage Alliance. "By creating a regulatory framework for this new category in Michigan, local brewers, bar owners, distributors, and beverage retailers can adapt to this change in consumer behavior.”
The Hemp Beverage Alliance has retained the lobbying services of former state representative Graham Filler of McAlvey Merchant & Associates to help lead legislative efforts in Michigan.
“A sensible regulatory framework will allow a safe, thriving and transparent hemp beverage industry in Michigan while generating more tax revenues and creating new jobs,” said Filler. “As employment and sales tax revenue decline in the beer, wine and spirits sectors, the sale of hemp beverages, if properly regulated, could replace some of those lost tax dollars and jobs. ”
States with a regulatory framework for hemp products enjoy significant tax revenues. In 2024, Minnesota taxed hemp products at 10 percent and generated $11.6 million in revenue. Tennessee, which taxes hemp products at six percent, generated more than $11 million in revenue in 2024. That number jumped to $17 million for 2025. These numbers are expected to increase as awareness of the category grows.
About the Hemp Beverage Alliance
The mission of the Hemp Beverage Alliance is to create a safe and thriving industry through education, advocacy, best practices and partnership. We achieve this by providing consumers, retailers, and distributors with the information they need to better understand the industry; developing best practices to create consistency in labeling and manufacturing; working with elected officials and regulators to encourage common-sense regulation; and collaborating with cannabis and alcohol industries to create a marketplace that benefits everyone. More at: hempbeveragealliance.org.
About McLavey Merchant & Associates
McAlvey Merchant & Associates represents a diverse range of clients – organizations, institutions and companies of all sizes – across industries including environment and energy, education, healthcare, insurance, charitable organizations, city governments and more. We specialize in custom governmental and political strategy development that assists organizations in solving problems, facing challenges and achieving their goals. More at: mcalvey.com
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HEMP BEVERAGE ALLIANCE FORMALIZES INDUSTRY SALES DATA REPORTING THROUGH PARTNERSHIP WITH VERMONT INFORMATION PROCESSING
The Hemp Beverage Alliance (HBA) today announced a partnership with Vermont Information Processing (VIP) to compile and report on industry-wide aggregate sales data, establishing the first formal reporting of its kind on hemp beverage sales.
HBA is the trade association for the hemp beverage industry with nearly 400 members in the United States, Canada, and Europe. VIP provides distributor and retailer sales tracking services by collecting data from wholesalers of beer and wine across the country. Through the agreement with HBA, VIP is now collecting and compiling the similar data from hemp beverage producers.
“The hemp beverage marketplace is booming across the United States but until now there was a lack of reliable and trackable data for the industry,” said Christopher Lackner, president, Hemp Beverage Alliance. “The most accurate data for the industry comes from distributors and retailers, and through these reports we can more precisely monitor the sales increases of hemp beverages nationwide.”
In the first-ever examination of limited national sales data on hemp beverages across 42 states, HBA announced that the case-equivalent (CE) totals show an average monthly sales growth rate of 77% from January 2024 through August 2025. The initial 22 HBA-member companies to provide the data to VIP have seen nearly continuous monthly growth through all of 2024 and 2025.
“Vermont Information Processing is thrilled to partner with the Alliance by gathering and analyzing data from the rapidly growing hemp beverage industry,” said Michele Noonan, sales leader, VIP. “Our sales tracking services already benefit many HBA members, and as more companies within the hemp beverage sector engage with us, the industry’s growth and potential will become even more evident.”
Measuring the number of distribution points is another important metric for determining industry growth. In the preliminary data, HBA sees an upward trend that follows a similar pattern to case-equivalent volumes. The number of points of distribution jumped by 95% from August 2023 to August 2025. By August 2025 the number exceeded the known distribution points for all 2024.
The initial report also showed how Minnesota, an early adopter of hemp beverages and sensible regulation of the industry, still dominates the largest state share of the market. But as more states have entered the market, there were notable increases in sales in the Carolinas and Florida.
Through the new reporting system, VIP aggregates the data from HBA-member brands in an anonymous fashion and provides it to HBA. VIP hemp beverage clients are encouraged to contact HBA at info@hempbeveragealliance.org to contribute their data to the study and increase the veracity of these reports. As more HBA members provide their sales data to VIP, HBA intends to publish an expanded report on a quarterly basis starting in early 2026.
The Hemp Beverage Alliance 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.
About the Hemp Beverage Alliance
The mission of the Hemp Beverage Alliance is to create a safe and thriving industry through education, advocacy, best practices and partnership. We achieve this by providing consumers, retailers, and distributors with the information they need to better understand the industry; developing best practices to create consistency in labeling and manufacturing; working with elected officials and regulators to encourage common-sense regulation; and collaborating with cannabis and alcohol industries to create a marketplace that benefits everyone. More at hempbeveragealliance.org.
About Vermont Information Processing
VIP is the leading technology supplier for brewers, distributors, wineries, soda bottlers, and other companies in the beverage industry. From helping distributors improve their warehouse, delivery, and sales operations, to empowering suppliers to know where their products are and how they’re selling, VIP has the technology and expertise to help these businesses thrive. More at vtinfo.com
HEMP BEVERAGE ALLIANCE APPLAUDS TEXAS GOVERNOR’S EXECUTIVE ORDER FOR SENSIBLE HEMP PRODUCT REGULATION
The Hemp Beverage Alliance, the trade association of the hemp beverage industry with nearly 400 members in the U.S., Canada and the United Kingdom, today issued the following statement regarding Texas Governor Greg Abbot’s Executive Order regarding hemp product sales in the Lone Star State.
“The Hemp Beverage Alliance applauds Texas Governor Greg Abbott's commitment to sensible regulation of the industry in an effort to capture its vast economic potential, keep the products away from children, provide robust product testing and encourage transparent packaging information.”
“The HBA is committed to working alongside elected officials, policy experts and community leaders to develop federal, state and local policies that protect public health and strengthen our economies.”
“Hemp beverages are incredibly popular with Texans who are seeking additional choices in their adult beverage consumption habits. This executive order allows them to continue to enjoy these beverages while creating a safe, transparent and thriving category in the Lone Star State.”
Hemp beverages are seltzers, sodas, mocktails and other non-alcoholic drinks that contain a small infusion of hemp-derived cannabinoids.
The Hemp Beverage Alliance 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-overview.
About the Hemp Beverage Alliance
The mission of the Hemp Beverage Alliance is to create a safe and thriving industry through education, advocacy, best practices and partnership. We achieve this by providing consumers, retailers, and distributors with the information they need to better understand the industry; developing best practices to create consistency in labeling and manufacturing; working with elected officials and regulators to encourage common-sense regulation; and collaborating with cannabis and alcohol industries to create a marketplace that benefits everyone. More at hempbeveragealliance.org.
HBA LAUNCHES CAMPAIGN IN PENNSYLVANIA
(HARRISBURG, Pa.) – The Hemp Beverage Alliance (HBA), the trade association for the hemp beverage industry with nearly 400 members in the United States, Canada and the United Kingdom, is establishing a coalition to create and support a sensible regulatory framework for hemp beverages in the Keystone State.
Hemp beverages are seltzers, sodas, mocktails, coffees, teas, and other non-alcoholic drinks that contain an infusion of hemp-derived cannabinoids. Since hemp was legalized in the 2018 Farm Bill, states like Minnesota, Kentucky, Georgia, Tennessee and others have developed regulatory frameworks to create a safe and thriving industry.
“Hemp beverages are the fastest growing category in adult beverages, but we need a regulatory framework to protect consumers, keep products away from children, and allow the category to thrive,” said Christopher Lackner, president, Hemp Beverage Alliance. “We look forward to working with legislators, public health advocates, law enforcement, alcohol distributors and other stakeholders to create a system that works for everyone.”
HBA has retained Jay Wiederhold of Wanner Associates to lead their legislative efforts in the Commonwealth. Mr. Wiederhold served for 20 years as President of the Pennsylvania Beer Alliance (PBA).
“A sensible regulatory framework will allow a safe, thriving and transparent hemp beverage industry along with permitting the Commonwealth to generate tax revenues and create jobs. This is especially important as we see state budget shortfalls and employment declines in the beer, wine and spirits sectors,” said Wiederhold.
States with a regulatory framework for hemp products enjoy significant tax revenues. In 2024, Minnesota taxed hemp products at 10 percent and generated $11.6 million in revenue. Tennessee, which taxes hemp products at six percent, generated more than $11 million in revenue in 2024. That number jumped to $17 million for 2025. These numbers are expected to increase as awareness of the category grows.
“As a much larger state than Tennessee or Minnesota, Pennsylvania can expect significantly higher tax revenues from hemp beverages,” said Wiederhold.
The Hemp Beverage Alliance 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 at hempbeveragealliance.org/principles.
ABOUT THE HEMP BEVERAGE ALLIANCE
The mission of the Hemp Beverage Alliance is to create a safe and thriving industry through education, advocacy, best practices and partnership. We achieve this by providing consumers, retailers, and distributors with the information they need to better understand the industry; developing best practices to create consistency in labeling and manufacturing; working with elected officials and regulators to encourage common-sense regulation; and collaborating with cannabis and alcohol industries to create a marketplace that benefits everyone. More at hempbeveragealliance.org.
ABOUT WANNER ASSOCIATES
Wanner Associates is a leading government relations firm and dual association management organization. It is recognized for exceptional service and unwavering commitment to client success. The firm celebrated 40 years in business earlier this year, following their recent achievements of being named a top 50 lobbying firm by City & State Magazine, as well as having both the President and Vice President named in the Central Pennsylvania Business Journal Government Relations Powerlists. More at wannerassoc.com.
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REP. MORGAN GRIFFITH RELEASES DRAFT HEMP BILL
Rep. Morgan Griffith (R-VA) began circulating a draft standalone piece of federal legislation that would affirmatively allow and regulate consumable and inhalable hemp products. Here’s a quick summary of the 57-page draft:
Hemp consumable hemp products will be expressly permitted, including beverages, and regulated by FDA
Establishes milligram thresholds for total intoxicating cannabinoid content
Amends and reorganizes Food Drug & Cosmetic Act (FDCA) to create a new chapter for cannabinoid hemp products
Prohibits any added substance, such as alcohol, caffeine, tobacco, nicotine, melatonin or another substances with effects that could interact with cannabinoids or enhance or alter their effects
Provides labeling requirements including content per serving and per package of CBD (even if absent), total naturally occurring intoxicating cannabinoids (even if absent), and all cannabinoids present
Requires QR code linking to a certificate of analysis (COA)
Requires tamper evident packaging, but HHS can set requirements for tamper evidence and child safety packaging
Prohibits packaging that is attractive to people under 21
Implements manufacturing and testing standards including facility registration
Creates a cannabinoid hemp product list
Creates a hemp product advisory committee
Requires HHA to issue a rule specifying the milligram limits for cannabinoid product types
Hemp beverages than contain non-intoxicating cannabinoids can have up to 10mg per serving
Hemp beverages with intoxicating cannabinoids have a limit of .2 milligrams per serving.
This is not yet an official bill release as Rep. Griffith’s office is still gathering input and feedback. Interested stakeholders are encouraged to contact info@hempbeveragealliance.org with recommendations, as HBA will be gathering and compiling comments over the next several weeks.
We are thrilled to see positive regulatory language coming out of DC and forward to continuing to work with Rep. Griffith’s office to further develop this legislation.
And hats off to Michelle B., HBA’s general counsel, for her excellent analysis of this bill.