The Republican-led US House Committee has introduced a controversial bill to redefine hemp in federal law. This would place sweeping restrictions on popular hemp substances that are intoxicating, such as Delta-8THC and CBD oil. Industry leaders claim that this could destroy the $30 billion hemp industry.
The bill, introduced this week by the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, passed its first hurdle with a narrow 9–7 vote on 5 June. The bill will be heard by the full House Appropriations Committee on 11 June.
The measure, if passed, would amend the Farm Bill 2018’s definition for hemp. Currently, products can contain up to 0.3% Delta-9THC dry weight. In recent years, this ‘loophole’ has allowed the US intoxicating hemp market to surge.
Vicente Economics says that it is difficult to estimate the size of intoxicating hemp, but we can see a wider picture by looking at the monthly data of three states which have specific taxes on hemp cannabinoid products:
| State | 12-Month Sales | Annual Growth Rate | Per Capita Sales |
| Tennessee | 245.4 Million Dollars | 59.8% | $40.50/adult |
| Minnesota | 145.1 Million | 70.4% | N/A |
| Louisiana | The smallest market | 25.9% | N/A |
States in the US are scrambling for legislation that will crackdown on this industry. Many legislators have equated these synthetic substances with unregulated cannabis used by adults. These bills can be overreaching and could threaten legitimate industrial hemp operations.
Under the proposed changes, the definition would shift to ‘total THC’, including THCA, the plant’s raw form of THC, and would specifically prohibit hemp-derived cannabinoid products with any ‘quantifiable’ level of intoxicating cannabinoids or any cannabinoids produced through synthetic conversion.
This language echoes previous failed attempts to restrict the market, including the so-called ‘Miller Amendment’ to last year’s Farm Bill draft.
The US Hemp Roundtable predicted that this proposed amendment would eliminate 90-95% the hemp industry in the United States.
The organisation is now calling on its members to ‘stop this backdoor ban before it gains traction’.
Andy Harris (R) of Maryland, Subcommittee Chairman and vocal opponent of cannabis reforms, supported the new provision.
He said: “This legislation closes the hemp loophole from the 2018 Farm Bill that has resulted in the proliferation of intoxicating cannabinoid products, including Delta-8 and hemp flower being sold online and in gas stations nationwide under the false guise of being ‘USDA approved,'”
Aaron Smith, CEO and Co-Founder of the The National Cannabis Industry Association (NCIA) responded to the latest efforts to quash the industry federally, suggesting this would benefit ‘drug cartels’.
Hemp-derived products containing THC are widely available in the United States. This budget provision will not change this fact despite the legislator’s intentions, it is going to ensure that these products are manufactured and sold with no oversight. It’s a win for the drug cartels, at the cost of the public’s health and safety. Congress must empower the federal agencies in order to properly regulate these drugs. They should not double-down on prohibitionist policies which have been proven ineffective both in terms of practice and public opinion.