Alcohol Industry Urges Congress to Regulate, Not Ban, Consumable Hemp Products

WSWA Appeals to Congress

A major alcohol industry association, Wine & Spirits Wholesalers of America (WSWA), is urging congressional leaders to establish a regulatory framework for hemp-based intoxicating cannabinoids rather than imposing an outright ban. This appeal comes in response to a proposed large-scale agriculture bill advancing in the House.

In a letter sent to the House and Senate Agriculture Committee leaders on Wednesday, WSWA called for “critical action to ensure that intoxicating hemp products sold across the country are safe for consumers” as lawmakers work on the 2024 Farm Bill.

Advocating for Federal Regulations

“We strongly advocate for clear federal rules and regulations that define intoxicating hemp compounds and to grant states the authority to regulate these products within their borders,” WSWA stated.

The Potential of CBD

The letter also highlighted the potential benefits of CBD, including managing symptoms of alcohol use disorder. This comes shortly after the House Agriculture Committee approved an amendment to the 2024 Farm Bill that would effectively ban most consumable hemp products, leading to ideological divisions within the cannabis sector.

Shift in Tone

While WSWA previously criticized the attempt to ban intoxicating hemp products as a continuation of the failed federal prohibition policy, their latest letter adopts a more moderate tone. The association now suggests that Congress could also enact legislation allowing states to ban the products altogether if deemed necessary.

Public Health Concerns

“The absence of federal oversight has resulted in significant public health risks,” WSWA warned. They emphasized that the safety, purity, and potency of these products cannot be guaranteed, posing a serious threat to consumers. The association also raised concerns about the accessibility of these potentially dangerous products to minors, some of which mimic popular candy and snack packaging.

Proposed Policy Solutions

To address these issues, WSWA proposed several policy solutions that could be incorporated into the final Farm Bill:

Granting agency authority to establish federal rules and regulations defining hemp compounds, including a ban on synthetically derived compounds.

Empowering states to regulate the sale, transport, and import of naturally occurring intoxicating hemp compounds within their borders.

Comparison to Alcohol Regulation

WSWA suggested that hemp cannabinoid products could be regulated under the Treasury Department, similar to alcohol. “Just as the 21st Amendment empowered states to regulate the transport and import of alcoholic beverages, states should be granted similar authority over intoxicating hemp compounds,” the letter stated. This regulatory structure would ensure that these products are safely manufactured, marketed, and sold, with states having the authority to regulate or ban them as needed.

Broader Legislative Context

Meanwhile, the House Agriculture Committee’s legislation also aims to reduce regulatory barriers for certain hemp farmers and scale back a ban on industry participation by people with prior drug felony convictions. Specifically, it would allow the U.S. Department of Agriculture (USDA), states, and tribal entities to eliminate a policy preventing people with felony drug convictions in the past ten years from being licensed to produce industrial hemp.

Advocates had hoped for more comprehensive language, such as that described in Senate Democrats’ recent summary of their forthcoming Farm Bill draft, which would mandate the elimination of the ban rather than simply authorizing it.

Industry Response and Future Prospects

Bipartisan lawmakers and industry stakeholders have criticized the FDA for not enacting regulations for hemp-derived CBD, which they blame for the economic stagnation in the hemp industry. FDA Commissioner Robert Califf testified before the House Oversight and Accountability Committee in April, indicating the agency’s position that it needed additional congressional authorization to regulate the non-intoxicating cannabinoid.

The USDA is reportedly revoking hemp licenses for farmers simultaneously growing marijuana under state-approved programs, highlighting ongoing federal prohibition conflicts.

Despite these challenges, the hemp market began to rebound in 2023 after significant losses the previous year. According to the latest annual industry report from the USDA, the hemp market in 2022 was larger than all state marijuana markets and roughly equaled sales for craft beer nationally.

As the 2024 Farm Bill progresses, lawmakers and stakeholders will continue to navigate these regulatory and economic complexities, aiming for a balanced approach that ensures consumer safety and industry growth.