Bipartisan Bill Filed to Let States Set Own Rules for Hemp Cannabinoids

By TheStreet Roundtable
about 19 hours ago
X X THC SFT WOULD

Sen. Rand Paul (R-KY) and a bipartisan pair of cosponsors, Sens. Jodi Ernst (R-IA) and Amy Klobuchar (D-MN), filed a bill Monday to create a regulatory framework for hemp-derived intoxicating cannabinoids that would allow states and Indian tribes the ability to opt out of the looming federal ban and set their own rules for such products.

The measure, S. 4315 (the Hemp Safety Enforcement Act), would allow states and tribes to create their own rules within the federal framework as long as they complied with minimal federal requirements, such as limiting sales to people 21 and over. It would also allow states and tribes to engage in interstate commerce in intoxicating hemp products as long as products were legal under the laws of both jurisdictions.

The bill comes as the hemp industry is just months away from the closing of the "hemp loophole," which saw an explosion of hemp-derived intoxicating cannabinoid products after hemp was legalized in the 2018 farm bill. Congress voted last November to close that loophole by redefining hemp as cannabis containing less than 0.3 percent total THC instead of the 2018 definition of 0.3 percent delta-9 THC. It also voted to limit the amount of intoxicating cannabinoids per serving and ban the use of synthesized cannabinoids.

The new rules are set to go into effect on November 13 unless Congress votes either to delay their implementation or to replace them with legislation that would regulate—not ban—hemp-derived intoxicating cannabinoids. Several bills seeking to either delay the ban or create a regulated intoxicating hemp supply are already being considered. Paul's bill is just the latest.

The ban targets products such as THC gummies, beverages, vapes, and smokables that were widely sold at gas stations, convenience stores, and online with no regulation, including age restrictions. Lawmakers argued that the products appealed to young users, but banning those products would cripple the $28 billion hemp cannabinoids industry.

In a series of X posts on Monday, Paul announced the bill.

"Congress's last-minute revival of hemp prohibition, included in last year's Continuing Appropriations Act, would ban most hemp products and wipe out the multi-billion-dollar industry, while depriving individuals of products they depend upon to improve sleep, relieve anxiety, and alleviate pain. My bill would protect thousands of jobs, family farms, and safe access for veterans and seniors," Paul wrote.

"About half the states, including Kentucky, have already established their own regulatory rules for hemp: age limits, serving size caps, and testing requirements. These state laws let farmers thrive while keeping products out of kids’ hands. My Hemp Safety Enforcement Act creates an 'opt-out' so states can continue regulating hemp themselves, as long as they maintain a minimum age for purchase and keep the ban on dangerous synthetic cannabinoids that don’t naturally occur in the hemp plant," he continued.

"It also preserves interstate commerce for legal products and is fully consistent with President Trump’s executive order expanding medical marijuana and CBD research. We can look out for public safety without trampling states’ rights or adult choice. We’ve seen prohibition fail before. It fails miserably."

The bill has been referred to the Senate Committee on Agriculture, Nutrition, and Forestry, where it awaits action.

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