Wisconsin Lawmakers Move to Counteract Upcoming Federal Hemp Ban
This is the second part in a FOX 11 Investigates series. Click here to read the first story.
Legislative Response to a Pending Federal Restriction
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(WLUK) — Wisconsin lawmakers are taking action and proposing bills to supersede a federal hemp ban scheduled to kick in late next year.
Legislators and many hemp producers alike support an age minimum and new industry standards for buying and selling THC products. These are legal products derived from the cannabis plant.
Wisconsin lawmakers are taking action and proposing bills to supersede a federal hemp ban scheduled to kick in late next year. (WLUK)
But from there, exactly how to regulate the products is where things become complicated. Drinks, edibles and other Delta-9 THC-infused products were federally legalized seven years ago, but will be banned in November 2026 unless state lawmakers create new laws to supersede the federal one.
The proposals on the table are:
- A bill to ban hemp-derived products, essentially codifying the pending federal ban, proposed by Rep. Lindee Brill (R-Sheboygan Falls)
- A bill to allow hemp-derived products but with regulations, governed by existing alcohol division, proposed by Rep. Rob Swearingen (R-Rhinelander)
- A bill to allow hemp-derived products but with regulations, hasn’t yet been released by Sen. Patrick Testin (R-Stevens Point)
One local hemp farmer says there are some regulations in place currently.
“We have packaging requirements. Weights and measures has that. USDA requires certain things. The FDA requires certain things,” said Craig Thran, owner/founder of Three Tall Pines in Plymouth. “I mean, just in a standard packaging principle, there’s already guidelines out there. And we’re all following that in this industry.”
Lawmakers say more regulations are needed. Of course, the first bill would essentially eliminate the industry in Wisconsin altogether.
Swearingen and Testin’s proposals would both include a 21+ age requirement to purchase products and limits on potency.
Swearingen’s bill also includes a new oversight group to regulate intoxicating products, born out of the group that already oversees alcohol. Additionally, it would implement new taxes and a three-tier system — the model requiring a separate producer, distributer and retailer.
“Safety, again, is the first thing,” said Swearingen. “Second of all, the excise tax, taxes on those products, and it’d be taxed through the wholesaler level, which is very standard, and again, that’s why three-tier exists.”
He said it makes sense to employ the same model as alcohol with another intoxicant and believes it’s the easiest way to regulate for safety. But hemp producers say it would hurt them.
“The three-tier system would probably knock 80-90% of our business out,” said Thran. “We will have to live here and choose, ‘Do I farm? Can I afford to sell what I produce?’ Because there’s the second-tier middle man that distributes. As a farmer, I will not be able to be a distributor. I can no longer distribute my own goods. I’ll have to have another entity that I use, which will take a cut 20-30%. And then that gets sold to a retailer. So, you will have to choose whether I will be licensed as a farmer, as a distributor or a retailer. And I cannot own two or more of those tiers.”
There’d also be a hefty tax on products in Swearingen’s proposal:
- $0.03 per mg of THC for beverage
- $0.045 per mg of THC for non-beverage
- $50 per oz. for hemp flower or hemp plant parts
Additionally, retailers of hemp-derived products would have to get licenses. Establishments with a Class A or Class B liquor license would be grandfathered in.
Multiple producers raised concerns about the bill benefitting alcohol interests, as Swearingen previously served as president of the Tavern League. FOX 11 asked Swearingen whether it’s a conflict of interest.
“No, no. I was Tavern League president 14 years ago,” said Swearingen. “I used to be in the restaurant business. I’m no longer in the restaurant business, so I mean, we’re all citizen legislators. All of us have outside jobs, or had outside jobs. Sure, hospitality was my background, you know, whether it was tourism or alcohol. So that’s always been my background. So to me, no. There’s definitely no interest. And again, I was Tavern League president 14 years ago.”
Both Swearingen’s bill and Testin’s proposal would include an age minimum. That’s supported by many in the industry.
“That’s number one is for safety,” said Swearingen. “We have to make it eligible at 21 years old.”
“You need to be selling to 21,” agreed Thran.
“Strictly here, we’re 21+. We’re always checking IDs,” said Alex Hernandez of The Dispensary – Appleton. “We self-regulate on that rule.”
Both bills would also limit potency, so you can’t put an unlimited amount of THC in a product, and the bills would set standards for labeling and marketing, which is also supported by the various hemp producers FOX 11 spoke with. The ban or the three-tiered system is a different story.
“Well, definitely right now ,our main approach to this is lobbying. Definitely getting our legal teams out to speak with members of Congress — locally, as well as federally,” said Hernandez. “I know for us, nothing we have to change business-specifically, so still going on as normal. But we’re pretty hopeful that things will change before then, just with of course, how many businesses are going to be affected.”
Most in the hemp industry don’t support Brill’s ban or Swearingen’s proposal. Both lawmakers expressed their proposals are for safety. However, various members of the hemp industry support Testin’s efforts.
Lawmakers have a year to sort out how to regulate the product. The federal ban will kick in starting November 2026.
While hemp is currently legal, efforts to legalize recreational marijuana in Wisconsin have been unsuccessful.
