Federal government, states grapple with regulating hemp products

(The Center Square) – While the U.S. Drug Enforcement Administration is on track to reclassify marijuana as a less dangerous drug, efforts at both the federal and state levels to regulate legal hemp products are ongoing.

Last week, U.S. Sen. Ron Wyden, D-Ore., introduced legislation – the Cannabinoid Safety and Regulation Act – that would facilitate the federal government regulating hemp products and keeping them out of the hands of Americans under the age of 21.

“Just like the tobacco industry marketing cigarettes to young people, nobody should be slapping fun cartoons and glitzy candy wrapper packaging on cannabis products meant for adults,” Wyden said in a news release. “A federal floor for regulation of hemp products is non-negotiable to ensure that consumers aren’t put at risk by untested products of unknown origin. My legislation will ensure that adult consumers know what they’re getting, and that hemp products are never sold or marketed to children.”

Other elements of the bill include having the Food and Drug Administration and the Alcohol and Tobacco Tax and Trade Bureau create rules for testing and labeling legal hemp-derived products for adults.

Wyden’s legislation is an attempt to bring more transparency to hemp products after the legalization of hemp production nationwide six years ago.

Congress legalized hemp and hemp-derived cannabinoid products containing less than 0.3% tetrahydrocannabinol, or THC, when it approved the 2018 Farm Bill. THC is responsible for the high or intoxication caused by marijuana.

However, by not implementing a regulatory framework for these products at the time, Congress essentially created a new nationwide trade in intoxicating hemp-derived products like beverages and edibles, which appeal to minors.

As a result, states are developing programs to oversee the hemp industry, including the regulation of commercial sales of recreational cannabis and encouraging the study of industrial hemp.

Last year, in Washington state – where recreational marijuana was legalized in 2012 – the Legislature passed Senate Bill 5367, which redefined “cannabis product” to include those with any detectable amount of THC. Previously, ordinary retailers like convenience stores and online sellers without a license from the Washington State Liquor and Cannabis Board could sell products that contained 0.3% or less THC.

SB 5367 redefined “cannabis product” to include products with any detectable amount of THC, a significant departure from the status quo. That translated into kids having easy access to THC-infused products like gummies and vapes. The law went into effect in the summer of 2023.

Nevertheless, a large number of mostly hemp-derived cannabidiol products remain on shelves in stores that don’t have a cannabis license all over the Evergreen State.

Aaron Pickus, media relations head at the Washington CannaBusiness Association, an organization representing Washington’s licensed and regulated cannabis and hemp industry, was vocal in his support for strict enforcement.

“It is unacceptable that impairing hemp-derived THC is widely available both online and in convenience stores across Washington,” he emailed The Center Square. “Unlike products of the regulated cannabis marketplace established by voters, hemp-derived THC concoctions are not lab tested for safety standards, nor subject to labeling requirements, nor taxed by the state.”

He applauded Washington’s efforts at tightening regulation.

“It is appalling they are sold in stores and online with no guards against youth access,” Pickus continued. “In Washington state, the Legislature has already banned unregulated hemp-derived THC products since adopting SB 5367 last year and we call for strict enforcement of this law.”

Pickus called for the federal government to take action as well.

“At the federal level, there is currently language in the agriculture appropriations bill (which we’re hearing will get rolled up into the omnibus appropriations bill) to close this loophole in the 2018 Farm Bill, making clear that these intoxicating products are illegal federally,” he said.

Earlier this month, California issued an emergency ban on hemp products with any amount of THC. Less than three weeks prior, Gov. Gavin Newsom had issued a temporary ban on said products. 

The U.S. hemp-derived cannabinoid market was estimated to be $28.4 billion last year, according to the 2023 U.S. National Cannabinoid Report by Whitney Economics.