Reps. Andy Barr (R-KY) and Angie Craig (D-MN) have formally introduced the bipartisan Lawful Hemp Protection Act, comprehensive federal legislation designed to preserve lawful hemp commerce while establishing a long-awaited national regulatory framework for hemp-derived consumer products.

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The bill comes as the clock is ticking down toward a virtual ban on hemp-derived cannabinoid products set to go into effect on November 12. Congress legalized hemp in the 2018 Farm Bill but approved the ban last year after the emergence of a massive, unregulated, multi-billion-dollar hemp-derived intoxicating cannabinoid market. 

Although Congress had visions of hemp fiber, seed, and oil when it legalized low-THC (under 0.3 percent THC by dry weight) cannabis in the farm bill, it did not anticipate that creative entrepreneurs would figure out ways to extract THC and other cannabinoids from hemp plants, producing intoxicating products from what was supposed to be non-psychoactive hemp. 

Passing the Barr-Craig bill, or one of several competing bills already filed, would replace the prohibitionist approach of the looming ban with a regime that would allow the sale of such goods under strict regulation. This bill would establish a federal framework for labeling, packaging, age restrictions, product standards, cannabinoid oversight, and domestic sourcing requirements, while preserving lawful hemp commerce and recognizing the importance of consumer access to compliant products.

Instead of the 0.4 milligram total THC per container standard envisioned by the looming ban—a limit so low there would be no psychoactive effects—this bill would direct the Food & Drug Administration (FDA) to establish serving limits through rulemaking and scientific review. If FDA does not act within one year, the bill establishes serving limits of 5 mg THC for ingestible products, 50 mg THC for inhalable products, and 50 mg THC for topical products. The legislation also includes provisions addressing synthetic cannabinoids, FDA oversight, labeling requirements, age verification, impaired driving enforcement, hemp-derived beverages, and interstate commerce protections.
 
Among other things, the Lawful Hemp Protection Act would:

• Create a federal pathway for hemp-derived consumable products to be regulated within a lawful framework;
• Establish federal labeling and packaging requirements;
• Require 21+ labeling and age-verification requirements for hemp-derived consumable products;
• Require that hemp-derived cannabinoid products be derived exclusively from hemp cultivated, processed, finished, packaged, and labeled in the United States;
• Create a federal TTB permitting, registration, and oversight structure for manufacturers of hemp-derived cannabinoid products and wholesalers of hemp-derived beverages;
• Prohibit synthetic and artificially modified cannabinoids and other non-naturally occurring compounds; and impose a milligram-based excise tax on hemp-derived beverages of 5 cents per milligram of THC, a 5 percent tax on the sale price of other hemp-derived cannabinoid products, and a 5 percent tax on the sales revenue of manufacturers;
• Establish a three-tiered distribution system for hemp-derived beverages, separating manufacturers, wholesalers, and retailers;
• Allow hemp-derived cannabinoid products to be covered as a special supplemental benefit under Medicare Advantage;
• Preserve interstate transportation of compliant hemp products; and
• Allow states, territories, and Tribes to continue enacting their own regulations that are more stringent than federal law.

"Kentucky farmers helped build America’s hemp industry, and they deserve certainty," said Rep. Barr. "The Lawful Hemp Protection Act protects Kentucky agriculture, safeguards consumers, and establishes a commonsense regulatory framework that allows this important industry to continue to grow while ensuring products are safe and kept out of the hands of children. Kentucky has demonstrated that hemp can be successfully regulated while supporting farmers and protecting consumers. This legislation builds on that success by creating a national framework that rewards responsible producers, eliminates bad actors, and ensures consumers have confidence in the products they purchase."

"Minnesota became the model for responsible hemp regulation when it established a regulatory framework that complied with federal law and enabled local farmers and businesses to thrive," said Rep. Angie Craig (D-MN), the lead Democrat on the House Agriculture Committee. "My commonsense legislation will give regulatory clarity to Minnesota farmers, brewers and small business owners and provide an alternative to short-sighted federal policies that threaten Minnesota jobs and consumer choice. I am proud to have worked with Rep. Barr on a solution that protects our farmers and small businesses while also keeping our kids and communities safe." 

The legislation is unsurprisingly drawing support from various sectors of the hemp industry, especially those involved in the trade in hemp-derived cannabinoids.

"Reps. Andy Barr and Angie Craig deserve tremendous credit for stepping forward with a serious, science-based, and bipartisan solution at exactly the moment the hemp industry needs it most," said Jonathan Miller, General Counsel of the US Hemp Roundtable. "Their leadership on the Lawful Hemp Protection Act reflects a clear-eyed recognition that prohibition is the wrong path, and that American farmers, small businesses, manufacturers, retailers, and consumers deserve a workable federal framework built on responsible regulation."

"Reps. Craig and Barr understand that this isn't a partisan issue – it's about protecting farmers who planted in good faith, small business owners who built legal companies, and consumers who deserve safe, tested, legal products instead of being pushed into an unregulated market," said Brian Swensen, executive director of Hemp Industry and Farmers of America (HIFA). "We appreciate all the hard work that brought us to this point. This bill is a strong step toward establishing a proper regulatory framework."

"Rep. Barr’s bill is a smart, bipartisan, stakeholder-supported solution," said Christopher Lackner, founder and president of the Hemp Beverage Alliance. "On behalf of the country’s hemp beverage suppliers, distributors, retailers, and responsible adult consumers, we urge Congress to fast-track this legislation."

The bill also has the support of the American Healthy Alternatives Association, American Herbal Products Association, Americans for Prosperity, Coalition for Adult Beverage Alternatives (CABA), Kentucky Hemp Association (KYHA), Midwest Hemp Council, Team Hemp, Total Wine & More, and the Wine & Spirits Wholesalers of America (WSWA).

The legislation has been filed; the industry is lined up behind it, and even the Trump administration has signaled it is open to regulation, not prohibition. Now, it is time for the industry and its backers to try to push it through Congress.