H.R. 9830: Lawful Hemp Protection Act

This bill would set up a federal system for hemp and hemp-derived products, especially products containing cannabinoids such as drinks, edibles, and other consumer goods. It would draw a line between lawful hemp products and products that are treated more like intoxicating drugs by banning synthetic intoxicants and hemp products with high THC levels.

What products would be covered

The bill would regulate hemp-derived cannabinoid products and beverages. It would require these products to meet federal rules for manufacturing, testing, labeling, packaging, and distribution. It would also place limits on how these products can be marketed and sold.

Age, labeling, and safety rules

The bill would generally require purchasers to be at least 21 years old. It would also require labeling rules so consumers can see information about what is in the product. Manufacturers and sellers would have to follow standards meant to make products safer and more consistent, including testing requirements.

Taxes, permits, and reporting

The bill would impose excise taxes on hemp-derived beverages and other covered hemp products. Businesses dealing in these products would need permits and would have reporting obligations. The bill would also create rules for how products move through the supply chain and how they are distributed.

Enforcement and penalties

The bill would create civil and criminal penalties for violations of the new rules. It would also fund oversight activities and enforcement related to impaired driving. In addition, it would establish a zero-tolerance impaired-driving standard for states that choose to adopt that approach under the bill’s framework.

State authority

The bill would preserve state authority, meaning states could still enforce their own laws and rules in this area, as long as they are consistent with the federal framework or otherwise permitted under it.

Overall effect

In practical terms, the bill would move hemp-derived intoxicating products out of a loosely regulated space and into a more formal system with federal oversight, taxes, permits, age restrictions, testing, labeling, and penalties for noncompliance. It would also ban certain synthetic or high-THC hemp intoxicants.

Relevant Companies

• PM — Philip Morris International could be affected if hemp-derived beverages or similar products compete with or are sold through consumer-packaged goods channels it operates in or adjacent to.
• BUD — Anheuser-Busch InBev could be affected if hemp-derived beverages face new taxation, labeling, and distribution rules that change the beverage market.
• DEO — Diageo could be indirectly affected through the alcoholic beverage market if hemp-derived intoxicating drinks become more regulated and compete for shelf space and consumer demand.
• CURLF — Curaleaf Holdings, a hemp/cannabis-related company, could be directly affected by restrictions, testing requirements, and taxes on hemp-derived cannabinoid products.
• TCNNF — Trulieve Cannabis could be impacted if its hemp-derived product lines are subject to the bill’s federal rules and restrictions.
• GTBIF — Green Thumb Industries could be affected by changes to the regulatory treatment of hemp-derived intoxicating products.