Federal Government to Ban Hemp Derived and THC-Infused Products
As we have previously covered, there has been some controversy since the passage of the 2018 federal farm bill that helped legalize the cultivation of industrial hemp for farmers. Although it passed by the motto “Rope, not dope” in attempting to highlight hemp’s difference in producing low-level THC as compared to the similar marijuana flower, it soon unwittingly created a massive loophole that allowed for unregulated, psychoactive products to flood the US. This is because under the then-created definition, products containing less than 0.3% of the specific type of THC called delta-9, the main psychoactive component of cannabis, could still qualify as “hemp products” but manufacturers of products soon started adding chemically altered CBD products, such as delta-8 and delta-10, which had similar psychoactive effects as delta-9. By keeping delta-9 out of products or below the threshold, products were able to meet the low threshold that allows its products to be carried in grocery stores, convenience stores, and other businesses without requiring licensing similar to marijuana or alcohol products while still selling products with similar intoxicating effects, even permitting the sale to minors without further local regulation. Now, the federal government is seeking to close that loophole through the passing of the latest budget that will ban many of those products in the now $24 billion hemp industry which has been used in seltzers, gummies, and other snacks/beverages across the United States unless Congress takes additional action before it goes into effect. “It’s a big deal,” said Ryan Bandy, chief business officer of Indeed Brewing which makes THC-infused seltzers, “It would be a mess for our breweries, for our industry, and obviously for a lot of people who like these things.” Senator Mitch McConnell, who helped craft the 2018 farm bill, says that the new federal ban on THC products is necessary in that, “It will keep these dangerous products out of the hands of children, while preserving the hemp industry for farmers. Industrial hemp and CBD will remain legal for industrial applications.” Proponents of the regulation have pointed to statistics from states like Indiana which have reported that since the passage of the original bill there have been spikes in calls to poison control centers for pediatric exposure to THC as an example of why such regulation is necessary. Some in the legal marijuana industry have likewise welcomed the passage of the provision banning these unregulated products which many say cut into the expanding marijuana industry, with Kevin Sabet, president and CEO of Smart Approaches to Marijuana saying, “There’s really no good argument for allowing these dangerous products to be sold in our country.”
Chicago City Council Clears First Hurdle on Hemp Product Ban
Following the passage of the federal ban provision, a key Chicago City Council panel, the Committee on License and Consumer Protection, passed a proposal to ban similar intoxicating hemp products across the city, aiming to ban the products entirely within 10 days of its passage should it pass a wider vote. 13th Ward Ald. Marty Quinn proposed the ordinance, saying “Are we really going to prop up a shady industry that sells dangerous and unregulated products to children?” at a hearing over the ban. Mayor Johnson and industry leaders vehemently oppose the measure, who say it will cause massive losses in revenue and lead to job cuts and store closures if passed in its current iteration. “The proposed ban would disrupt a source of revenue for many of Chicago’s small businesses, and it would eliminate a market that numerous establishments have relied on to support their post-pandemic recoveries,” said Ivan Capifali, Johnson’s commissioner of the city’s Department of Business Affairs and Consumer Protection, who asked for more time to work out a regulatory framework, with industry leaders hoping to set a 21 year-old age requirement for buyers or other possibilities rather than an outright ban. In either case, now that a market has been set over the years since its passage with seemingly increasing popularity year-over-year, such measures may just drive the industry underground and open up buyers and sellers to criminal charges in the future which may be hard to enforce or for prosecutors to prove which products would be technically illegal under any new regulation.
