U.S. Senate Passes Funding Bill with Hemp Regulation Provision

The United States Senate passed a funding package last night intended to end the government shutdown.  Included in that package is an important provision to close a loophole in the Agriculture Improvement Act of 2018 (aka the 2018 Farm Bill) which has enabled the sale of various “intoxicating” hemp-based products. The provision would prohibit the unregulated sale of intoxicating hemp-based or hemp-derived products, including delta-8 (THC), in gas stations and corner stores. More specifically, the adopted language would: Restrict hemp-derived cannabinoid products for human or animal use if they contain more than 0.3 % total tetrahydrocannabinols (including THCA) on a dry weight basis and exclude cannabinoids which are not capable of being naturally produced by the plant or were synthesized or manufactured outside the plant.

While now passed by the Senate, the loophole closure still requires House approval and must be signed into law by the President. If enacted, the new restrictions would not take effect until one year after the law’s passage. Senator Rand Paul (R-KY) actively opposed the inclusion of the intoxicating hemp provisions on behalf of the hemp industry and farmers in his state, which has raised the possibility of delay or changes.

If this change impacts a project you are working on, please contact attorneys Matthew Glennon at mglennon@pullcom.com or Andy Glassman at aglassman@pullcom.com to discuss further.