Bipartisan bill seeks federal pathway for hemp‑derived cannabinoids
On July 22, Representatives Andy Barr (R‑Ky.) and Angie Craig (D‑Minn.) introduced the Lawful Hemp Protection Act, a piece of legislation designed to give the hemp industry a clear regulatory framework while addressing concerns about product safety and market stability.
Industry stakeholders call for regulatory certainty
Since the 2018 Farm Bill removed hemp from the Controlled Substances Act, companies have operated in a gray area, waiting for the Food and Drug Administration (FDA) to issue concrete rules for cannabinoid‑infused products. Jonathan Miller, general counsel of the US Hemp Roundtable, told NutraIngredients that the bill could deliver the certainty the sector has been requesting for years.
“If this bill passes, or another passes with a robust regulatory framework, most companies interested in the space will jump in eagerly, [as] regulatory certainty is what the industry has been demanding for years,” Miller said. He added that many nutrition and supplement firms have remained on the sidelines because they lack clear guidance on how hemp‑derived cannabinoids may be marketed and sold.
Graham Rigby, president and CEO of the American Herbal Products Association (AHPA), echoed that sentiment, noting that the legislation would give farmers workable federal rules and open a long‑term growth market for finished hemp products.
FDA would establish product standards
The Lawful Hemp Protection Act directs the Secretary of Health and Human Services—acting through the FDA—to create maximum cannabinoid content limits, labeling requirements, good manufacturing practices (GMPs), and other product standards for hemp‑derived cannabinoid items. The bill stipulates that the FDA must complete this rulemaking within twelve months of enactment; if the agency misses that deadline, default statutory limits would take effect.
Key provisions of the FDA mandate
- Maximum allowable total cannabinoid content per product and per serving.
- Labeling that clearly discloses cannabinoid potency and serving size.
- GMP requirements covering cultivation, extraction, formulation, and packaging.
- A minimum purchase age of 21 years for all hemp‑derived cannabinoid products.
- A requirement that consumable hemp products be cultivated, processed, and packaged in the United States.
The legislation also introduces a tax structure: a five‑cent‑per‑milligram excise tax on hemp‑derived beverages, a five percent tax on other hemp‑derived cannabinoid products, and a separate five percent tax on manufacturers’ gross sales revenue. States retain the authority to impose stricter rules than the federal baseline.
Debate over the dietary‑supplement provision
Not all industry voices support every element of the bill. Daniel Fabricant, PhD, president and CEO of the Natural Products Association, criticized the fallback clause that would allow dietary supplements to contain up to 5 mg of THC per serving if the FDA fails to set limits within a year.
“5 mg of THC is not a health‑and‑wellness product; it’s a product to get high and should be only for recreational or adult use,” Fabricant told NutraIngredients. He argued that THC should be considered an adulterant in dietary supplements and that products marketed as supplements should contain only de minimis amounts of any psychoactive compound.
What companies need to prepare for
Legal experts warn that compliance obligations will shift if the Lawful Hemp Protection Act becomes law. Rend Al‑Mondhiry, partner and co‑chair of the regulatory group at Amin Wasserman Gurnani LLP, noted that firms would need to adjust to new age‑verification processes, revised labeling, updated THC measurement standards, prohibitions on synthetic and artificially modified cannabinoids, and the federal tax framework outlined above.
Al‑Mondhiry cautioned that some existing products might require reformulation or repositioning to meet the proposed serving limits and labeling rules. She also reminded manufacturers that state‑level requirements could still apply, as the bill permits states to maintain stricter regulations than the federal standard.
Despite the added compliance burden, Al‑Mondhiry characterized the legislation as a preferable alternative to a blanket prohibition, which she said would “nearly eliminate most products on the market.”
Looking ahead
Industry groups such as the US Hemp Roundtable and AHPA say they will continue working with lawmakers to refine the bill, aiming to avoid unintended consequences while securing a stable pathway for hemp‑derived cannabinoids. Miller warned that if Congress does not enact either the Lawful Hemp Protection Act or another legislative solution before pending federal restrictions take effect later this year, the fallout for the sector could be severe.
“It would be simply devastating and hard to recover from, but we are cautiously optimistic that we will find a solution or at least an extension of the moratorium before November,” Miller concluded.
For more details on the proposal, see the original coverage Here
