THC hemp products face a federal ban next month. Can Congress act before then?
A national ban on hemp-derived THC products currently on store shelves takes effect next month, leaving businesses in Minnesota to scramble ahead of an uncertain future.
But advocates hope there will be a fast fix before the Dec. 11 deadline hits.
At issue is a new definition of hemp products in federal law. Part of a deal to reopen the government last year removed products with more than 0.4 milligrams of THC — the psychoactive ingredient that produces a high — from the definition of hemp, which effectively puts a federal ban on the drinks and edibles available for purchase today.
Most of what is available on store shelves in Minnesota has five milligrams per serving, which was part of the state's own regulations enacted in 2022. Stricter hemp THC rules would mean consumers cannot purchase the products at liquor stores, restaurants and brewery tap rooms, and businesses would face steeper tax burdens and other barriers to operating.
Total retail sales of hemp-derived THC products in Minnesota hit $180 million dollars last year. Bob Galligan, with the Minnesota Craft Brewers Guild, said THC-infused drinks have been a bright spot for the beer industry facing sagging sales due to changing consumer habits.
"I think it couldn't come at a worse time," said Galligan. "Just because people are struggling really right now, just with the rising cost of goods, rising cost of labor. Everything is just changing so quickly on a dime."
In September, lawmakers did vote to delay the implementation of the federal ban by one month; it was originally set to take effect this week. DFL Sens. Amy Klobuchar and Tina Smith led that effort and the governor-elect also pledged to do more before her time in federal office ends.
"We must pass bipartisan legislation to give Minnesota's hemp producers, retailers, and customers certainty. I have already introduced several bipartisan bills with [Republican] Sen. Rand Paul, and am working with [Republican] Sen. Tim Sheehy on another," Klobuchar told WCCO in a statement.
Galligan is lobbying Congress to act. He said he's grateful to Klobuchar, Smith and other members of the state's Congressional delegation for working on the issue and he remains hopeful there can be a deal before the deadline.
"One month in Washington D.C. right now is what six months would have been in the 80s," he quipped.
But he acknowledged that some businesses are already feeling the impact by laying off or furloughing staff, and halting production.
Northern Coffeeworks in Minneapolis, for example, was selling THC products before its point-of-sale provider, Square, notified them to stop those sales. A spokesperson for the company said it began notifying sellers in August of the incoming federal rules.
That will force the business to adjust for the lost revenue.
"Ok we're not doing THC products anymore so like will we have to increase prices on things to make up for lost profit?" Kara Bohlen, a barista, told WCCO earlier this week. At minimum, Galligan hopes Congress will at least extend the delay while it works out any federal regulations that could keep the hemp THC businesses operating.
"If it does take that extra time, all we ask is that you don't shut off the lights, so that we have to turn them back on," he said.