Industry Lawyers Condemn ‘Overbroad’ And ‘Disastrous’ Congressional Push To Ban Hemp THC Products

More than a dozen lawyers representing hemp businesses are slamming an
“overbroad” and “disastrous” proposal to ban products with THC that’s
advancing in the Senate and was recently supported by a coalition of state
and territory attorneys general.

In a letter sent to key GOP congressional committee leaders on Friday, the
attorneys—whose clients include many operators affiliated with the Hemp
Beverage Alliance (HBA)—said that while they agree that “there are bad
actors in the hemp market,” banning intoxicating cannabis products
altogether would “punish responsible commerce and exacerbate the very
problems the AGs seek to solve.”

The letter was delivered just days before the Senate released the text of
an appropriations package that contains a version of the controversial hemp
language. The chamber then agreed to advance it to a final vote, which
could come imminently, but one GOP senator still has a back-up plan to try
and block the ban.

“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,” the lawyers said, adding that
the letter from the attorneys general “overreaches in a number of
instances.”

Specifically, they said that signatories of the attorneys general letter
mistakenly argue that state efforts to regulate hemp products are
inadequate and only lead to “an uneven and ineffectual patchwork of bans
and regulations.”

“We respectfully disagree,” the new letter says, pointing out that alcohol
is already “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,” it says.

“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.”

“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,” the lawyers
said.

The new letter also points out that certain attorneys general who signed
the earlier letter, such as Minnesota’s Keith Ellison (D), have since
clarified that they don’t necessarily support an outright ban on hemp
products containing THC as proposed in a House spending bill.

“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,” they said. “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,” the letter says.

They also noted that major corporations such as Total Wine, Target and
Doordash have started selling hemp products since the crop was federally
legalized under the 2018 Farm Bill, adding to the need to thoughtfully
regulate—rather than prohibit—such items.

“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,” they said.

This is the latest in a string of messages to Congress about federal hemp
policy and the potential for significant changes if a ban on hemp with THC
is ultimately implemented.

For example, more than 50 alcohol distributors recently joined together to oppose
efforts in Congress to ban intoxicating hemp products, stressing to
lawmakers that as demand for alcohol has “shifted downward,” the cannabis
market has helped sustain their industry.

Interestingly, there’s been particular division among alcohol stakeholders, many
of which reported lobbying on hemp issues this year. There appears to be
disagreement over the path forward as it concerns wholesalers who
distribute alcohol and hemp products and major brands marketing their own
beverages.

A group of major alcohol industry associations recently threw its weight
behind the push to get lawmakers to ban intoxicating hemp products—at least
on a temporary basis before the federal government creates a “robust
regulatory framework” for the marketplace.

A leading consumer trade association that counts among its members
corporations such as Coca-Cola, General Mills, Kraft Heinz and Nestlé is
also putting pressure on Congress to ban intoxicating hemp products.

As Congress continues to navigate a path forward on funding legislation to
end the ongoing government shutdown, lawmakers are still at work attempting
to reach a deal on federal hemp laws—with one GOP senator telling Marijuana
Moment that multiple options are on the table, though it will ultimately
come down to what leadership wants.

Two GOP lawmakers—Sen. Mitch McConnell (R-KY) Rep. Andy Harris (R-MD)—have
pushed aggressively for an outright ban on hemp products containing THC.
But others such as Sen. Rand Paul (R-KY) have insisted that such a policy
change would devastate the industry. And Paul said recently he’d go so far
as to hold up large-scale spending legislation if a full ban was kept intact
.

The senator also pushed back against the recent letter from the state and
territory attorneys general who implored Republican leaders to fully
prevent the marketing of intoxicating hemp products.


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As far as legislative options go, Paul did put forward legislative language
recently to require a study and report on state regulatory models for hemp
that could inform future revisions to the federal law—rather than prohibit
sales altogether, as McConnell would have it.

In August, McConnell–who ushered in the federal legalization of hemp under
the 2018 Farm Bill–took to the Senate floor to criticize those who opposed
the ban, including Paul.

Meanwhile, Paul recently filed a standalone bill that would go in the
opposite direction of the hemp ban, proposing to triple the concentration
of THC that the crop could legally contain, while addressing multiple other
concerns the industry has expressed about federal regulations.

The senator introduced the legislation, titled the Hemp Economic
Mobilization Plan (HEMP) Act, in June. It mirrors versions he’s sponsored
over the last several sessions.

The post Industry Lawyers Condemn ‘Overbroad’ And ‘Disastrous’
Congressional Push To Ban Hemp THC Products appeared first on Marijuana
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