Summary#
This bill creates a federal system to regulate non-alcoholic hemp-derived beverages. It defines what counts as a hemp-derived beverage, says the Food and Drug Administration (FDA) will treat these drinks as food, and gives the Tax and Trade Bureau (TTB) authority over manufacturing, labeling, advertising, distribution, and permits. Key rules in the bill include a per-serving limit of 5 milligrams of intoxicating delta-9 tetrahydrocannabinol (THC); a ban on synthetically-derived cannabinoids; a rule that hemp used must not be grown outside the United States; and a prohibition on marketing the product as a dietary supplement. The bill sets a three-tier distribution system (manufacturer → wholesaler → retailer), requires permits for manufacturers and wholesalers, and creates labeling and warning requirements. It also imposes an excise tax of 8 cents per milligram of intoxicating THC in a beverage, specifies criminal penalties and forfeiture for some violations, and allows States, localities, and Tribal governments to have stricter rules or to prohibit these beverages.
What it means for you#
- Consumers: You must be 21 or older to buy, possess, or consume these hemp-derived beverages. Labels must show servings and milligrams of each naturally-occurring cannabinoid, safety warnings for special populations, how long effects may take, and a notice that use may cause a failed marijuana drug test. Drinks cannot contain added alcohol, nicotine, caffeine, or other substances that the FDA finds could harm consumers when combined with cannabinoids.
- Retailers: Retailers must buy from permitted wholesalers, follow labeling and advertising rules, and may face fines or forfeiture for violations.
- Manufacturers and wholesalers: They must obtain TTB permits, meet uniform manufacturing and testing rules, and cannot hold permits for multiple tiers at once. Some intermediate manufacturing materials may temporarily exceed per-serving THC limits but only under strict conditions and up to 20% THC by weight.
- State, local, and Tribal authorities: They may enforce stricter rules or ban these beverages; this bill does not stop jurisdictions from doing so.
Expenses#
- The bill imposes an excise tax of 8 cents per milligram of intoxicating THC in each hemp-derived beverage, assessed at the time of removal from the manufacturer.
- Criminal fines specified in the bill include fines of $1,000 per offense for violations of certain requirements; retailers may be treated as committing separate violations for each beverage sold in violation.
- Forfeiture: Persons violating certain distribution provisions may forfeit the hemp-derived beverages involved.
- No publicly available information on projected federal revenue from the tax, implementation costs for agencies, or compliance costs beyond the tax and fines.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.