Wisconsin GOP Lawmakers Are Divided On How To Regulate Hemp THC Products

*“It would behoove us to work together…to make sure that we—in my humble
opinion—protect our constituents, but also protect an industry that I think
is needed.”*

*By Isiah Holmes, Wisconsin Examiner*

Wisconsin lawmakers are backing competing visions for the future of hemp in
the state.

One proposal, (SB 682), was discussed during a Thursday meeting of the
Senate Committee on Agriculture and Revenue.

The bill would create a regulatory structure for hemp-derived cannabis
products which would preserve the state’s hemp industry despite a federal
ban set to take effect in November. Without state-level intervention, or
the federal government choosing to reverse course, hemp growers and
distributors fear that Wisconsin’s $700 million industry and about 3,500
jobs will disappear.

Sen. Patrick Testin (R-Stevens Point), chair of the Agriculture and Revenue
Committee presented the bipartisan hemp bill to his committee, which he
authored with bipartisan support.

Testin’s legislation would define hemp as cannabis plants with no more than
0.3 percent of delta-9 THC (or the maximum concentration allowable under
federal law up to 1 percent, whichever is greater) and define “hemp-derived
cannabinoids” as any such compound extracted from the hemp plant. THC
concentrations would be determined using specific high-performance testing
methods.

Wisconsinites would need to be at least 21 years old to purchase
hemp-derived cannabinoid products under the bill, which mandates that
products undergo independent lab testing to ensure that they contain the
amount and type of cannabinoids described on the product’s label. This
practice, known as truth-in labeling, is something the hemp industry has
called for in recent years.

Products could not be sold under the bill without labeling including
contact information for the manufacturer or brand owner, serving sizes per
container of product, ingredient lists including allergens, potency labeled
in milligrams and any necessary warnings. Under the bill, hemp-derived
products could not contain more than 10 milligrams of THC in a single
serving.

Testin said Thursday that globally, the industrial hemp market was valued
at roughly $11 billion in 2025, and is expected to reach $48 billion by
2032. “Despite its wide availability, the regulation of [hemp-derived
cannabinoid] products is essentially non-existent, leaving a patchwork of
different approaches taken by states across the country,” he said.

In Wisconsin, such products “are generally recognized as legal but
unregulated,” Testin said.

“There are no state laws that restrict the sale to minors, regulate the
potency or content of [hemp-derived cannabinoid products], or establish
labeling or packaging requirements.” Minnesota, Kentucky, Tennessee and
other states have moved to enact their own regulations, Testin said.
“Regulations are needed to eliminate the current uncertainty regarding the
status of [hemp-derived cannabinoid products], provide stability and
certainty for businesses looking to enter this segment of the economy and
enact public safety regulations.”

Both Testin and Rep. Tony Kurtz (R-Wonewoc) have worked on hemp laws for
Wisconsin since the federal Farm Bill passed in 2018.

“I’ve actually grown hemp,” said Kurtz, recalling that in 2019 “it was kind
of a wide open market.”

People that Kurtz and others called “bad actors” throughout the hearing
also rode the hemp wave, seeing it as a “get rich quick scheme.” Kurtz said
that today, the hemp industry is filled with people who want to do the
right thing, but that “bad actors” have persisted.

Kurtz said SB 682 is designed to ensure that Wisconsinites “get the very
best product, and they know what they’re getting.”

He stressed that “if we do nothing, then hemp is going to be illegal at the
federal level…but it will still be legal here in the state of Wisconsin. So
I think it would behoove us to work together, get a good compromise, a good
common sense piece of legislation to make sure that we—in my humble
opinion—protect our constituents, but also protect an industry that I think
is needed.”

Although hemp would be illegal at the federal level, a state-level industry
could still operate similarly to the way some states have fully legal
recreational or legalized cannabis programs, largely because the federal
government has not cracked down on those industries.

Testin added that “regardless of anyone’s thoughts as it relates to
cannabis and cannabinoids, it’s here. And obviously we have a lot of
different approaches as to how to best move forward.”

He repeatedly took aim at the “stupidity” of what he described as “our
overlords” in Washington D.C., but also criticized other hemp-related bills
being pushed in Wisconsin. Whereas some Republicans are seeking to ban hemp
products outright, others have differing ideas about how a legal industry
should be regulated.

A bill introduced by Sen. Eric Wimberger (R-Oconto), SB 681, would require
that manufacturers and distributors of hemp-derived cannabinoid products
have permits. Products would be sold under a three-tier system, and would
be regulated similarly to alcohol under the Division of Alcohol Beverages,
a component of the Department of Revenue, which would be renamed to the
Division of Intoxicating Products.

Although both Testin and Wimberger’s bills have gained bipartisan support,
Testin described Wimberger’s bill as “the dead bill” and “deader than dead.”

Testin argued that SB 681 would over-regulate the hemp industry, and even
lead to a monopolization effect where a small number of entities could
control who gets hemp permits, shape an otherwise competitive market and
operate in a “good ol’ boys club” manner.

Sen. Sarah Keyeski (D-Lodi) highlighted the divide among state Republicans
over hemp and cannabis products, stressing that Democrats are not the ones
holding up legalization and regulation.

The committee room was filled with people from across the hemp industry who
listened to the conversation. When lawmakers questioned how to ensure that
children do not acquire intoxicating hemp products, distributors and
manufacturers pointed to age-verification software even for online sales,
which require a photograph and image of a driver’s license to approve an
order.

There was also discussion about how to prevent products from being marketed
to children using cartoon-like advertising and appealing candy wrappers.

Some veterans testified, describing how hemp helped them alleviate pain,
kick addictive pain killers, soothed PTSD symptoms and calmed the body for
sleep.

Other testimony centered on the danger involved in crossing state lines to
Michigan or Illinois to acquire cannabis to treat various medical
conditions.

Hemp farmers stressed that they need to know now how they will be affected
by a looming federal ban as they decide when or whether to plant their
crops in the spring.

Much of the public testimony was supportive of Testin’s bill, though some
speakers said that it needed to be amended to protect farmers and growers,
and also expand the kinds of products it would cover including drinks and
gummies.

“Yes, we are now in a scenario where there are intoxicating hemp products,”
said Testin. “But just no different than anything like beer, wine or
alcohol, we need to have some sensible regulations put in place, which this
bill aims to do just that.”

As for “concerns about getting baked or getting high from these products,”
Testin added, “it’s no different than those individuals who go out and
consume too many old fashioneds at fish fry on a Friday night, or have too
many beers. It’s about personal choice and responsibility, but at the same
time making sure that we have some regulations put in place.”

The hemp industry deserves to “thrive and grow,” Testin said, while the
public deserves protection and to know “that this stuff isn’t falling into
the hands of people it shouldn’t be in, like kids.”

*This story was first published by Wisconsin Examiner.*

*Photo courtesy of Brendan Cleak.*

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