We have all been waiting, with something close to bated breath, for a fix to the looming closure of the THC “loophole” in November. Today, we at least have a small glimmer of potential hope worth watching.
Rep. Beth Van Duyne of Texas has circulated a draft bill called the Hemp-Derived Beverage Regulatory Clarity Act. You can read the draft bill here.
At a high level, the bill would put hemp beverages under the authority of the Alcohol and Tobacco Tax and Trade Bureau (the “TTB“). Businesses that make, distribute, wholesale, sell, or ship hemp beverages across state lines or internationally would need a federal TTB permit. The TTB would also be responsible for writing the rules on things like production standards, testing, records, inspections, product tracking, labels, advertising, serving sizes, container sizes, and other compliance requirements (you know, all the things that matter). Finally, the bill would cap hemp beverages at 5 milligrams of total delta-9 THC per serving, ban sales to anyone under 21, and impose a federal tax of 10 cents per milligram of hemp-derived cannabinoid in the beverage – among other things.
So, is this good news? Maybe. Potentially, yes.
Any workable federal compliance framework is better than an outright ban, especially for responsible beverage producers that are already trying to operate in a regulated environment. It also fits with what we have been hearing in the industry and from politicians: “a fix is coming (we promise!) before November.”
But there is still tons of important work to be done.
The draft bill is a draft and still only a framework, at best. Many of the details that matter most to industry members would still have to be written later by the TTB through regulations or guidance (i.e. the “rule-making process” – cue ominous music).
For alcohol producers, those details are not academic. The big questions are operational. Can a brewery, winery, or distillery use the same facility? The same equipment? The same employees? The same warehouse? The same distribution relationships? Would hemp beverage activity create issues with existing TTB permits, alcohol premises rules, tied-house restrictions, state licenses, tax obligations, label rules, or advertising restrictions?
The draft bill does not answer those questions yet. It tells us there may be a federal path to compliance, but not how smooth, practical, or realistic that path will actually be for alcohol industry members that are already licensed and regulated.
State law would still matter too. The draft bill would preserve the ability of states, local governments, and tribes to impose stricter rules. It would also prohibit shipment into jurisdictions where the receipt, possession, sale, or use of hemp beverages might violate applicable law. So even if Congress creates a federal pathway, state-by-state compliance is not going away.
My practical takeaway is probably best described as cautious optimism.
This draft is potentially positive for the hemp beverage industry and for TTB-permitted alcohol producers already working in the category. It suggests there may be a federal path forward.
But the bill is not final, the rules are not written, and the small details will matter most.
We are actively reviewing the proposal and watching where it goes. Industry members should keep their eyes on it as well.
Thanks for reading.