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US Senate delays federal ban on hemp-based THC products, aiding Minnesota industry

The US Senate passed a procedural vote delaying a federal ban on intoxicating hemp products until Dec. 11, giving Minnesota's THC beverage and edible industry a temporary reprieve.

US Senate delays federal ban on hemp-based THC products, aiding Minnesota industry
Graphic: Amrit Khabar NewsroomImage rights policy

Key Facts

Senate action
Passed procedural vote on Aug. 3 to consider a short-term funding bill that delays the hemp ban.
New regulation date
Originally set to take effect Nov. 11.
Delay until
Dec. 11 under the continuing resolution.
THC limit
Ban applies to products with more than 0.4 milligrams of THC.
Minnesota lawmakers
Sen. Tina Smith, Sen. Amy Klobuchar, Rep. Angie Craig support delay or regulation.
Industry response
MC Nutraceuticals said: 'This industry lobbied for its life — and moved the line.'

Background

Minnesota has developed a robust industry producing drinks and edibles made from THC derived from hemp. These products, including gummies and beverages, are marketed for their health benefits and have been sold under state regulations.

Last November, Congress outlawed hemp-infused edibles containing more than 0.4 milligrams of THC, the psychoactive ingredient in cannabis. The ban was included in a massive spending bill and gave the industry a year to adjust to the restrictions.

The new federal regulations were scheduled to take effect Nov. 11. Industry advocates warned that these rules would cripple Minnesota manufacturers of gummies, drinks, and many CBD products.

Current Situation

Late Monday, Aug. 3, the U.S. Senate passed a procedural vote allowing consideration of a short-term bill that would fund the federal government until Dec. 11 and delay the implementation of the new federal regulation on intoxicating hemp products.

The Senate bill, known as a continuing resolution (CR), is expected to win final approval later this week. It provides only a month's worth of respite, but the intoxicating hemp industry and its allies in Congress hailed the reprieve.

Sen. Tina Smith said in a statement: 'Adults should be allowed to have a THC beverage if they so choose. Minnesota has created one of the strongest, most carefully regulated systems in the country to allow the sale of hemp products. The initial ban set to take place was ill-advised and would have hurt both hemp farmers and Minnesota breweries alike.'

Key Dates and Actions
Date Event
Last NovemberCongress outlawed hemp-infused edibles with more than 0.4 mg THC
Nov. 11New federal regulations were to go into effect
Aug. 3Senate passed procedural vote to delay ban
Dec. 11Delay expires under continuing resolution
Dates are as reported in the source.

Impacts

The delay gives advocates more time to lobby for legislation that would blunt the impact of the intoxicating hemp ban. Sen. Amy Klobuchar and Rep. Angie Craig have introduced bills that would regulate intoxicating hemp products instead of eliminating them.

Klobuchar said: 'The new government funding bill in the Senate includes a key provision based on my bipartisan bill to delay the federal hemp ban … so other states can put more sensible safety rules in place like we have in Minnesota. This delay was immediately necessary to give Minnesota hemp producers and customers certainty, while giving Congress more time to get to a long-term fix.'

Craig said regulation of the hemp industry has worked well in Minnesota: 'Minnesota led the charge on regulating legal hemp in a thoughtful and safe way, and now the federal government wants to pull the rug out from under them, putting thousands of Minnesotans out of work. That is unacceptable, and it is also bad policy.'

Future Outlook

Scenario analysis: The possibilities below are not certain predictions.

The reprieve is temporary, and the industry faces uncertainty. If Congress fails to pass a long-term fix by Dec. 11, the ban could take effect, potentially harming Minnesota hemp farmers and breweries.

The marijuana lobby, which seeks to put intoxicating hemp products on the same playing field as pot, decried the Senate's action. Cory Harris, a lobbyist for the American Trade Association for Cannabis and Hemp, said: 'Now, we face the scenario where every time we're going to have a fight over which cannabis derived products are illegal.'

Harris also noted that under the proposed legislation by Klobuchar and Craig, states that don't allow hemp-derived THC products might not be able to keep them out because customers could purchase them online. The outcome depends on whether Congress can agree on a permanent regulatory framework.

Source: postbulletin.com

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