The popularity of hemp beverages has surged over the past year. In response, local lawmakers are taking initiative to regulate these products amid the legal uncertainties stemming from the 2018 Farm Bill. While state legislators are discussing standards and best practices, local authorities are enacting measures more swiftly, often passing legislation within weeks.
Federal Hemp Legalization and Its Impact
The 2018 Farm Bill, also known as the Agricultural Improvement Act, legalized hemp and its derivatives, allowing products that contain no more than 0.3% delta-9 THC. This legislation has led to the emergence of hemp-derived THC beverages that can produce psychoactive effects while not being categorized as “marijuana.” As such, the regulatory landscape for these products remains unclear, creating opportunities and challenges for local governments.
Recent Local Hemp Beverage Ordinances Across the U.S.
Numerous local governments are now revising their THC laws to address the burgeoning hemp beverage market. Noteworthy examples include:
Chicago’s Proposed THC Tax and Restrictions
In February, the Chicago City Council introduced an ordinance to impose taxes based on the THC content of hemp beverages. While the ordinance has not progressed through additional hearings, the council recently approved a measure prohibiting cannabinoid product sales in the O’Hare Residential Area, which likely affects hemp beverages.
Maryland’s Emergency Cannabis Ordinance
The North Beach Town Council in Maryland is considering an emergency ordinance to ban the distribution and consumption of cannabis products, including hemp beverages, at public events. This measure reflects a growing concern over managing cannabis-related activities in community settings.
Minnesota Counties Pioneering Self-Service Sales
Following Minnesota’s groundbreaking legislation in 2022, local jurisdictions, including Hennepin County, have enacted ordinances allowing individuals over 21 to engage in self-service sales of lower-potency hemp beverages. This regulation, effective May 6, illustrates a proactive approach to managing the hemp beverage industry.
Mississippi Cities Response to State Inaction
In contrast, Mississippi cities are taking a more cautious approach. On May 5, the Brandon City Council enacted an ordinance banning the sale of THC beverages within the city limits, following unsuccessful attempts by the state legislature to regulate intoxicating hemp products. The Attorney General’s subsequent opinion confirmed that sales of hemp-derived products for human consumption are restricted unless conducted by licensed medical cannabis dispensaries.
Future of Local Hemp Beverage Regulation
As interest in hemp beverages continues to grow, many local governments are likely to explore further regulation to shape this emerging industry. Monitoring local legislative activity will be crucial for understanding the evolving compliance landscape.
Public policymaking often starts at the local level, resulting in a patchwork of laws across the nation. With thousands of municipalities actively addressing these issues, staying informed will be essential for stakeholders in the cannabis industry.