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Tipsheet

Hemp Industry Gearing Up for Battle After Spending Bill Ban

AP Photo/Matthew Barakat

The hemp industry is gearing up for a fight after Congress passed a spending bill that included a provision that would essentially ban hemp-derived THC products and others made from the plant.

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The bill passed the Senate after it rejected an amendment filed by Sen. Rand Paul (R-KY) that would have removed the provision from the bill. The House also passed the bill, which President Donald Trump signed into law on Wednesday.

When the provision was made public, it ignited a firestorm of debate over the issue.

From The Hill:

The hemp industry is regrouping and gearing up for a significant lobbying blitz following passage of the government funding package that contained a provision they say would outlaw nearly all hemp products. 

The legislation clarifies the definition of hemp to ban all hemp-derived products containing THC, which were legalized by the 2018 farm bill. 

Legal hemp products are limited to a total of 0.4 milligrams per container of total THC, or any other cannabinoids with similar effects. Cannabinoids that are synthesized or manufactured outside the plant, such as delta-8 THC, are banned. 

The Food and Drug Administration now has 90 days to publish a list of natural and synthetic cannabinoids and provide a definition for “container.” 

According to the U.S. Hemp Roundtable, the vast majority of hemp products on the marketplace surpass the 0.4 milligram threshold, even the nonintoxicating ones. 

In a memo released Thursday, the trade group said the hemp industry took a serious blow, but they’re confident in finding a path forward because the language in the funding bill gives a one-year period before the ban takes effect. 

“We’re disappointed, but not defeated,” the group said. “Our new mission, friends: 365 days to regulate, NOT ban.”

The group pointed to a draft bill circulated over the summer from Rep. Morgan Griffith (R-Va.) that would establish a detailed regulatory scheme for hemp-derived products, including milligram thresholds, labeling requirements, and a new chapter in the Food, Drug, and Cosmetic Act explicitly giving the FDA authority over cannabinoid hemp products.

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Related:

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The provision would ban over 95 percent of all hemp extract products, allowing the sale of products have have less than 0.4 mg of total THC per container.

The U.S. Hemp Roundtable issued a press release in which it argued that the language “was fueled by misinformation and unrelated political maneuvering.”

The organization stated that senators “were promised that this bill protects non-intoxicating CBD products, which is manifestly untrue — the large majority of non-intoxicating CBD products on the marketplace feature more than 0.4 mg of THC per container.

The organization further explained that lawmakers were told that the provision would target fully synthetic products and “high THC products that are marketed to kids.” However, banning these products “will shift these products to the black markets.”

Opponents of the ban point out that it would eliminate a $28 billion industry and threaten over 300,000 jobs in agriculture, manufacturing, and retail. Family farms and small businesses would face closure.

Others point to the fact that seniors, veterans, and others use these products to treat conditions such as PTSD, chronic pain, anxiety, insomnia, and others. They argue that regulation, not prohibition, is a better way to approach the issue.

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