U.S. Congress Comes to the Rescue of THC-Infused Beverages

With just a few months to go before a possible ban on many hemp-derived cannabinoid products—which we’ve already told you about— here or here, two U.S. lawmakers are proposing a specific regulatory framework for beverages containing THC.

The text, titled Beverage Regulatory Parity Act, was filed on August 10 by the representatives Beth Van Duyne, a Republican from Texas, and Greg Landsman, a Democrat from Ohio.

The project aims to continue marketing beverages with low levels of THC derived from hemp, while subjecting them to a federal regulatory framework modeled after the one applied to alcoholic beverages. The products in question could contain up to 5 mg of total THC per serving and would be available only to consumers who are at least 21 years old.

This initiative comes as Congress has yet to decide on a new definition of hemp, adopted last year and could render many references illegal as of November 12. The Senate recently voted to postpone this deadline to December 11, but the House of Representatives has yet to vote on the matter.

A framework inspired by the alcohol model

The bill calls for the establishment of a three-tier distribution system, with manufacturers, distributors, and retailers subject to federal licensing. Beverages would also be regulated by the Tax and Trade Bureau (TTB), the Department of Health and Human Services (HHS) and the Department of Agriculture (USDA).

Manufacturers should comply with regulations regarding, among other things, testing, labeling, packaging, and sales formats. Multi-serving containers may not exceed 750 milliliters.

The bill also calls for a federal tax of 8 cents per milligram of THC, as well as the ban on synthetic cannabinoids. Only cannabinoids that occur naturally in the plant and are grown and processed in the United States may be used.

States, tribal territories, and local governments would retain the ability to adopt rules that are stricter than federal regulations. However, they would not be able to prevent the transport of these beverages to other jurisdictions.

A deadline that has the industry concerned

The project is taking place in a market that has grown significantly in recent years. Some drinks containing THC derived from hemp are now sold in several states and available in certain institutions, events and national chains.

However, regulatory uncertainty has increased as November 12 approaches. Several states have begun to adopt their own restrictions. In Ohio, for example, a recent change in the law limits the sale of hemp-derived THC products to regulated cannabis retailers.

The relevant economic stakeholders therefore see the bipartisan bill as an opportunity to move past a period of uncertainty. Representatives from the alcoholic beverages sector are also among its supporters, believing that existing distribution channels and oversight mechanisms could serve as the basis for regulating THC-infused beverages.

Support that is not universally shared

The project's proponents present this approach as a compromise between maintaining the market and strengthening controls. Beth Van Duyne believes, therefore, that both consumers and businesses need clear rules rather than a ban that could drive the activity into the black market.

Greg Landsman For his part, he highlights the investments already made by companies in his state and advocates for regulations that would allow them to continue operating while enhancing safety.

Support from certain players in the beverage industry is another sign of momentum, but the proposal has not garnered consensus across the entire cannabis sector. In particular, industry organizations have announced their opposition to the idea of granting special treatment to THC-infused beverages.

The question now is whether the U.S. Congress will be able to adopt a specific framework before the new federal definition of hemp takes effect. With a tight legislative schedule and the House still in recess until August 31, the future of THC-infused beverages therefore remains largely dependent on the debates set to take place in Washington over the coming weeks.