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Lawful Hemp Protection Act
Introduced Jul 22, 2026 · Last action Jul 22, 2026 — Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Agriculture, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Summary
This legislation is called the Lawful Hemp Protection Act. It is being reviewed by a committee.
Full bill text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9830 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9830
To preserve lawful hemp commerce while protecting consumers from high-
THC synthetic intoxicants, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 22, 2026
Mr. Barr (for himself and Ms. Craig) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committees on Energy and Commerce, Agriculture, and
Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To preserve lawful hemp commerce while protecting consumers from high-
THC synthetic intoxicants, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Lawful Hemp Protection Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Protecting minors and preventing children's access to
hemp products is central to the public interest and to the
long-term credibility of the hemp industry. Strong age-control
measures are necessary to prevent misuse and safeguard public
health.
(2) Many Americans, including veterans and seniors, rely on
consumer hemp products for wellness. Ensuring that such
products are consistently manufactured, accurately labeled, and
domestically sourced is essential to maintaining public trust
and protecting consumers.
(3) Clear provenance standards and the elimination of
deceptive or look-alike products promote responsible industry
growth, protect consumers, and reinforce confidence in lawful
hemp commerce.
SEC. 3. DEFINITION OF HEMP.
(a) In General.--Section 297A of the Agricultural Marketing Act of
1946 (7 U.S.C. 1639o) is amended--
(1) by redesignating paragraphs (2) through (6) as
paragraphs (4) through (8), respectively; and
(2) by striking paragraph (1) and inserting the following:
``(1) Hemp.--
``(A) In general.--The term `hemp' means the plant
Cannabis sativa L. and any part of that plant,
including the seeds thereof and all naturally occurring
derivatives, extracts, cannabinoids, isomers, acids,
salts, and salts of isomers, whether growing or not,
with a total tetrahydrocannabinol concentration
(including tetrahydrocannabinol acid) of not more than
1 percent on a dry weight basis.
``(B) Inclusion.--Such term includes industrial
hemp.
``(C) Exclusions.--Such term does not include--
``(i) any viable seed from a Cannabis
sativa L. plant where the seed exceeds a total
tetrahydrocannabinol concentration (including
tetrahydrocannabinol acid) of more than 1
percent on a dry weight basis;
``(ii) any intermediate hemp-derived
cannabinoid product containing--
``(I) cannabinoids that are not
capable of being naturally produced by
a Cannabis sativa L. plant; or
``(II) cannabinoids that are
capable of being naturally produced by
a Cannabis sativa L. plant and--
``(aa) are produced,
manufactured, or converted
using chemical synthesis,
hydrogenation, acetylation,
alkylation, or any other
artificial process that adds
to, removes from, or otherwise
alters the molecular structure
of a cannabinoid so that it
contains one or more functional
groups or substituents that are
not present in any naturally
occurring cannabinoid
constituent of Cannabis sativa
L., including--
``(AA)
hexahydrocannabinol
(HHC);
``(BB)
tetrahydrocannabinol
acetate (THC-O-
acetate);
``(CC)
tetrahydrocannabiphorol
(THCP); and
``(DD) any other
artificially modified
analog or homologue of
a naturally occurring
cannabinoid, as
determined by the
Secretary in
consultation with the
Secretary of Health and
Human Services; or
``(bb) are produced,
manufactured, or converted
using any solvent, extraction
method, or other means of
production determined by the
Secretary, in consultation with
the Secretary of Health and
Human Services, to pose a risk
to the public health;
``(iii) any intermediate hemp-derived
cannabinoid product marketed or sold as a final
product or directly to an end consumer for
personal or household use; and
``(iv) any final hemp-derived cannabinoid
products containing--
``(I) cannabinoids that are not
capable of being naturally produced by
a Cannabis sativa L. plant; or
``(II) cannabinoids that are
capable of being naturally produced by
a Cannabis sativa L. plant and--
``(aa) are produced,
manufactured, or converted
using chemical synthesis,
hydrogenation, acetylation,
alkylation, or any other
artificial process that adds
to, removes from, or otherwise
alters the molecular structure
of a cannabinoid so that it
contains one or more functional
groups or substituents that are
not present in any naturally
occurring cannabinoid
constituent of Cannabis sativa
L., including--
``(AA)
hexahydrocannabinol
(HHC);
``(BB)
tetrahydrocannabinol
acetate (THC-O-
acetate);
``(CC)
tetrahydrocannabiphorol
(THCP); and
``(DD) any other
artificially modified
analog or homologue of
a naturally occurring
cannabinoid, as
determined by the
Secretary, in
consultation with the
Secretary of Health and
Human Services; or
``(bb) are produced or
manufactured using any solvent,
extraction method, or other
means of production determined
by the Secretary, in
consultation with the Secretary
of Health and Human Services,
to pose a risk to the public
health.
``(2) Industrial hemp.--The term `industrial hemp' means
hemp--
``(A) grown for the use of the stalk of the plant,
fiber produced from such a stalk, or any other non-
cannabinoid derivative, mixture, preparation, or
manufacture of such a stalk;
``(B) grown for the use of the whole grain, oil,
cake, nut, hull, or any other non-cannabinoid compound,
derivative, mixture, preparation, or manufacture of the
seeds of such plant;
``(C) grown for purposes of producing microgreens
or other edible hemp leaf products intended for human
consumption that are derived from an immature hemp
plant that is grown from seeds that do not exceed the
threshold for total tetrahydrocannabinol concentration
specified in paragraph (1)(C)(i);
``(D) that is a plant that does not enter the
stream of commerce and is intended to support hemp
research at an institution of higher education (as
defined in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001)) or an independent research
institute;
``(E) grown for the use of a viable seed of the
plant produced solely for the production or manufacture
of any material described in subparagraphs (A) through
(D); or
``(F) grown for the use of the whole plant, or any
part thereof, for the extraction, production, or
manufacture of any non-intoxicating non-cannabinoid
essential oil, aromatic compound, terpene, or other
non-intoxicating non-cannabinoid volatile organic
compound derived from such plant.
``(3) Unfinished hemp-cannabinoid ingredient.--The term
`unfinished hemp-cannabinoid ingredient' means an oil, extract,
concentrate, distillate, or other intermediate substance that--
``(A) that meets the criteria specified in
paragraph (1) to be considered hemp, except that such
ingredient may contain concentrations of total
tetrayhdrocannabinol exceeding 1 percent during
processing, provided that the material--
``(i) remains exclusively with actors or
entities licensed or otherwise lawfully
permitted to manufacture, transport, or store
the material under the Lawful Hemp Protection
Act; and
``(ii) is not offered for retail sale;
``(B) is not for consumer use;
``(C) is not a finished hemp product; and
``(D) is produced solely for incorporation into a
finished cannabinoid product through further
processing.''.
(b) Conforming Repeal.--Section 781 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agency
Appropriations Act, 2026 (division B of Public Law 119-37) is repealed.
SEC. 4. FDA OVERSIGHT AND MILLIGRAM LIMITATIONS.
(a) Definitions.--Section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321) is amended--
(1) in paragraph (g)(1), by adding at the end the
following: ``Such term does not include a hemp-derived
cannabinoid product.'';
(2) in paragraph (s), in the matter preceding subparagraph
(1), by striking ``food (including any substance'' and
inserting ``food (including industrial hemp intended for human
or animal use and hemp seed, hemp seed oil, or hempseed protein
not containing cannabinoids, any substance''; and
(3) by adding at the end the following:
``(tt)(1) The term `hemp-derived cannabinoid product'--
``(A) means any finished product for human or animal use
that--
``(i) that meets the criteria specified in
paragraph (1) to be considered hemp; and
``(ii) contains one or more cannabinoids;
``(B) includes a hemp-derived cannabinoid dietary
supplement;
``(C) includes, in cases that the Secretary determines
appropriate, an intermediate hemp-derived cannabinoid product;
and
``(D) may include ingestibles, beverages, oral tinctures
and sublinguals, capsules and tablets, inhalables, and topicals
and transdermals.
``(2) A hemp-derived cannabinoid product shall be deemed to be a
food within the meaning of this Act.
``(uu) The term `hemp-derived cannabinoid dietary supplement'--
``(1) means a dietary supplement that--
``(A) is derived from hemp;
``(B) contains one or more cannabinoids; and
``(C) is for ingestion in tablet, capsule, softgel,
gelcap, powder, gummy, chew, lozenge, tincture, oil,
spray, strip, or liquid form;
``(2) may include ingestibles, oral tinctures and
sublinguals, and capsules and tablets; and
``(3) does not include--
``(A) any product for inhalation, application to
the skin, or transdermal absorption;
``(B) raw, floral hemp material, an unfinished
hemp-cannabinoid ingredient, or work-in-process
materials;
``(C) industrial hemp;
``(D) hemp seed, hemp seed oil, or hempseed protein
not containing cannabinoids; and
``(E) a product containing any cannabinoid not
found in, or capable of being produced in, the hemp
plant, as identified on the lists published and updated
under section 425(d).
``(vv) The terms `hemp',`industrial hemp', and `unfinished hemp-
cannabinoid ingredient' have the meanings given those terms in section
297A of the Agricultural Marketing Act of 1946.
``(ww) The term `GRAS substance' means a substance that is
generally recognized, among experts qualified by scientific training
and experience to evaluate its safety, as having been adequately shown
through scientific procedures (or, in the case of a substance used in
food prior to January 1, 1958, through either scientific procedures or
experience based on common use in food) to be safe under the conditions
of its intended use, as described in section 201(s).''.
(b) Prohibited Acts.--Section 301 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 331) is amended by adding at the end the
following:
``(jjj) The introduction or delivery for introduction into
interstate commerce of a hemp-derived cannabinoid product that is not
derived exclusively from hemp cultivated in the United States,
processed within the United States, and finished, packaged, and labeled
within the United States.
``(kkk)(1) The sale of a hemp-derived cannabinoid product to any
person younger than 21 years of age.
``(2) The possession or consumption of a hemp-derived cannabinoid
product by any person younger than 21 years of age.''.
(c) Adulteration.--Section 402 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 342) is amended by adding at the end the
following:
``(j) If it is a hemp-derived cannabinoid product, and--
``(1) its cannabinoid content exceeds a maximum allowable
amount established under section 425(b);
``(2) it contains a cannabinoid not included on the lists
published and updated under section 425(d);
``(3) it is a cannabinoid hemp product for, or to be used
in or on, food-producing animals;
``(4) it contains any added substance, such as alcohol,
caffeine, tobacco, nicotine, or melatonin, which, when combined
with cannbinoids, could interact with such cannabinoids or
enhance or alter the effects of such cannabinoids in a manner
that is harmful to the consumer, as determined by the
Secretary;
``(5) it contains a food additive or a GRAS substance,
which when combined with the cannabinoids in such product,
could cause harm to the consumer (as determined by the
Secretary); or
``(6) it has been manufactured, processed, packed, or held
in any factory, warehouse, or establishment and the owner,
operator, or agent of such factory, warehouse, or establishment
delays, denies, or limits an inspection of, or refuses to
permit entry to, or inspection of, such factory, warehouse, or
establishment.''.
(d) Misbranding.--Section 403 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 343) is amended by adding at the end the
following:
``(z) If it is a hemp-derived cannabinoid product, and--
``(1) its labeling does not adhere to the requirements
under section 425(a);
``(2) its advertising or promotion is false or misleading
in any particular;
``(3) it is in package form, unless it bears a label
formatted in such manner as the Secretary may prescribe by
order;
``(4) its labeling does not bear adequate directions for
use, or adequate warnings against use by children, that are
necessary for the protection of users, or conform to such other
requirements in all respects as may be prescribed by the
Secretary;
``(5) its labeling does not include a disclaimer of risks
posed by the specific cannabinoid contained or purported to be
contained in the product, including the risk of drug test
failure;
``(6) its labeling does not include a disclaimer that the
Food and Drug Administration has not determined the product to
be safe or effective for treating any condition;
``(7) its labeling makes a claim regarding the product's
effect (or lack thereof) on the structure or any function of
the body of humans or other animals;
``(8) it is in package form for use by humans, and it
contains product packaging features imitating images popularly
used to advertise to children or otherwise market to anyone
under 21 years of age, including--
``(A) labeling depicting, or in the shape of,
characters (real or imaginary), animals, vehicles,
cartoons, candy, or fruit; and
``(B) brightly colored products and packaging;
``(9) it is in package form for use in animals, and its
label and labeling do not contain prominently placed,
conspicuous--
``(A) warnings that the product should not be used
by humans; and
``(B) statements that the product is for use in
animals, including any such statements specifying the
intended species;
``(10) it was manufactured, processed, packed, labeled, or
held by or in an establishment that has not been issued a
permit under section 5902A of the Internal Revenue Code of
1986;
``(11) it does not adhere to the uniform manufacturing and
testing requirements established under section 425(c) or there
was a failure or refusal to provide access to any records as
required under chapter 56 of the Internal Revenue Code of 1986;
or
``(12) it is not in compliance with such formatting
requirements as the Secretary may specify (such as a
requirement for the use of standard and uniform labeling and an
identifying symbol) with respect to any word, statement, or
other information the Secretary requires to appear on the label
or labeling of the product.''.
(e) Hemp-Derived Cannabinoid Products.--Chapter IV of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 341 et seq.) is amended by
adding at the end the following:
``SEC. 425. HEMP-DERIVED CANNABINOID PRODUCTS.
``(a) Labeling Requirements.--A hemp-derived cannabinoid product
shall be considered misbranded within the meaning of section 403(z)
unless such labeling meets the following requirements:
``(1) Its principal display panel displays, in a font size
not smaller than 8 points, the statement `Contains __ mg THC
per serving and __ mg THC per package. For users 21+ only.',
where the blanks shall be filled in with the applicable
quantity of THC in milligrams per serving and per package,
respectively.
``(2)(A) Its principal display panel bears a warning
statement concerning the effects of consuming hemp-derived
cannabinoid products, including with respect to pregnancy and
impaired driving.
``(B) The statement under subparagraph (A) shall--
``(i) appear in a conspicuous and prominent
location on the principal display panel;
``(ii) be printed in a font size not smaller than 6
points, or not smaller than the smallest type size used
elsewhere on the label, whichever is larger;
``(iii) appear in a color that contrasts with the
background on which it appears;
``(iv) include the words `GOVERNMENT WARNING' in
capital letters and bold type; and
``(v) be worded in such manner as the Secretary, in
consultation with the Surgeon General of the Public
Health Service, determines appropriate.
``(3) If it is in package form, bears a label containing--
``(A) a statement on the front of the product
packaging indicating that the product is a cannabinoid
hemp product;
``(B)(i) the serving size; and
``(ii) the number of servings per package;
``(C) the ingredients;
``(D) the content per serving and per package of
any and all cannabinoids, if present above a nominal
level, as determined by the Secretary;
``(E) for products for human use, a disclaimer of
the presence in the product of any major food allergen,
processing aid, or compound, which the Secretary may
require to be disclosed;
``(F) a statement clearly specifying if the product
is intended for animal use, human use, or for use by
humans and animals;
``(G) a disclaimer of known risks to special
populations, including children, those who are pregnant
or breastfeeding, and those taking drugs known to
interact with the product;
``(H) a quick response (QR) code, any other
scannable mechanism, or internet address that leads to
a web page with testing results for the cannabinoid
hemp product in the form of a certificate of analysis;
``(I) clear instructions of use, if applicable; and
``(J) information about how to report adverse
events resulting from use of the product.
``(b) Maximum Cannabinoid Content.--
``(1) Establishment.--Not later than 12 months after the
date of enactment of this section, the Secretary shall
establish, with respect to any hemp-derived cannabinoid
product--
``(A) a maximum allowable amount of total
cannabinoid content for such product and each serving
of such product; and
``(B) for each cannabinoid present in such a
product, a maximum allowable amount of such cannabinoid
for such product and each serving of such product.
``(2) Frequency of review.--The Secretary shall review and,
as appropriate, revise the maximum allowable amounts under
paragraph (1) not less frequently than--
``(A) once every 3 years; or
``(B) as soon as scientific evidence warrants
reconsideration.
``(3) Rulemaking.--The Secretary shall establish and revise
the maximum allowable amounts under paragraph (1) through a
notice-and-comment rulemaking process that is informed by--
``(A) peer-reviewed scientific research on the
safety and physiological effects of individual
cannabinoids;
``(B) consumer usage data and adverse event
reports;
``(C) input from qualified medical and scientific
experts;
``(D) consultation with State regulatory
authorities with experience overseeing hemp or cannabis
markets; and
``(E) consideration of product form, intended use,
and target consumer population.
``(4) Failure to timely establish maximum allowable
amounts.--In the case that the Secretary fails to establish the
maximum allowable amounts under paragraph (1) within the 12-
month period described in such paragraph, until such time that
the Secretary establishes alternative amounts, the following
maximum allowable amounts for total tetrahydrocannabinol
content shall apply:
``(A) With respect to a hemp-derived cannabinoid
product for oral consumption, 5 milligrams per serving.
``(B) With respect to an inhalable hemp-derived
cannabinoid product, 50 milligrams per serving.
``(C) With respect to a topical hemp-derived
cannabinoid product, 50 milligrams per serving.
``(c) Manufacture and Testing.--
``(1) Establishment.--The Secretary shall establish such
uniform manufacturing and testing requirements for hemp-derived
cannabinoid products (including intermediate hemp-derived
cannabinoid products) as the Secretary determines to be
necessary. Such requirements shall include the following:
``(A) Manufacturing and testing requirements for
key components, potential contaminants, and cannabinoid
content.
``(B) A requirement that each such product be
tested by a laboratory accredited to ISO/IEC 17025--
``(i) following post-harvest processing,
extraction, or any other manipulation, as
determined by the Secretary; and
``(ii) when the product is in the form in
which it is to be sold to a consumer.
``(2) Reliance on standard-setting bodies.--In establishing
the uniform manufacturing and testing requirements under
paragraph (1), the Secretary may recognize and rely on
standards developed by appropriate standard-setting bodies that
have relevant expertise and are subject to third-party
auditing.
``(3) Inspection of records.--The Secretary may inspect
such records as may be necessary to determine compliance with
the uniform manufacturing and testing requirements under
paragraph (1).
``(d) Publication of List.--
``(1) In general.--Not later than 90 days after the date of
the enactment of the Lawful Hemp Production Act, the Secretary,
in consultation with other relevant Federal agencies, shall
publish--
``(A) a list of all cannabinoids known to the
Secretary to be capable of being naturally produced by
a Cannabis sativa L. plant, as reflected in peer
reviewed literature; and
``(B) a list of all tetrahydrocannabinol class
cannabinoids known to the Secretary to be naturally
occurring in the plant.
``(2) Updates.--The Secretary shall periodically review and
update the lists under subparagraphs (A) and (B) of paragraph
(1).''.
(f) Applicability.--The amendments made by this section shall only
apply with respect to hemp and any products derived from or containing
hemp, including industrial hemp, hemp-derived cannabinoid products, and
unfinished hemp-cannabinoid ingredients introduced or delivered for
introduction into interstate commerce on or after the date that is 180
days after the date of enactment of this Act.
SEC. 5. ALLOWING COVERAGE OF HEMP-DERIVED CANNABINOID PRODUCTS UNDER
MEDICARE ADVANTAGE AS A SPECIAL SUPPLEMENTAL BENEFIT FOR
THE CHRONICALLY ILL; CODIFYING SUBSTANCE ACCESS
BENEFICIARY ENGAGEMENT INCENTIVE.
(a) Medicare Advantage Special Supplemental Benefit for the
Chronically Ill.--Section 1852(a)(3)(D)(ii) of the Social Security Act
(42 U.S.C. 1395w-22(a)(3)(D)(ii)) is amended by adding at the end the
following new subclause:
``(III) Inclusion of hemp-derived
cannabinoid products.--Beginning with
respect to the first plan year
beginning after the date of enactment
of this subclause, an MA plan may, in
accordance with such criteria as the
Secretary may specify, include as a
supplemental benefit under this
subparagraph coverage of a hemp-derived
cannabinoid product (as defined in
section 201(tt) of the Federal Food,
Drug, and Cosmetic Act).''.
(b) Substance Access Beneficiary Engagement Incentive Under CMI
Models.--Section 1115A of the Social Security Act (42 U.S.C. 1315a) is
amended by adding at the end the following new subsection:
``(h) Substance Access Beneficiary Engagement Incentive.--
``(1) In general.--Beginning on the date that is 1 year
after the date of enactment of this subsection, a provider of
services or supplier participating in a specified model may, in
accordance with such criteria as the Secretary shall specify,
offer an applicable individual receiving items or services from
such provider or supplier a beneficiary engagement incentive
consisting of--
``(A) consultation regarding the possible use of
hemp-derived cannabinoid products (as defined in
section 201(tt) of the Federal Food, Drug, and Cosmetic
Act); and
``(B) subject to such limits as the Secretary shall
specify, the provision of such hemp-derived cannabinoid
products.
``(2) Specified model.--For purposes of paragraph (1), a
specified model is a model tested under this section for which
the Secretary determines that the beneficiary engagement
incentive described in such paragraph is appropriate.''.
SEC. 6. TAXES ON HEMP-DERIVED CANNABINOID PRODUCTS AND RELATED
REQUIREMENTS.
(a) In General.--Subtitle E of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 56--HEMP-DERIVED CANNABINOID PRODUCTS
``subchapter a--definitions; taxes
``subchapter b--qualification requirements for manufacturers of hemp-
derived cannabinoid products and wholesalers of hemp-derived beverages
``subchapter c--operations by manufacturers of hemp-derived cannabinoid
products and wholesalers of hemp-derived beverages
``subchapter d--distribution system for hemp-derived beverages
``subchapter e--general provisions relating to hemp-derived cannabinoid
products
``subchapter f--miscellaneous general provisions
``subchapter g--penalties
``Subchapter A--Definitions; Taxes
``Sec. 5900. Definitions.
``Sec. 5901. Tax on hemp-derived beverages.
``Sec. 5901A. Tax on hemp-derived cannabinoid products.
``Sec. 5901B. Tax on sales revenue of manufacturers of hemp-derived
cannabinoid products.
``Sec. 5901C. Method of collecting tax.
``SEC. 5900. DEFINITIONS.
``When used in this chapter--
``(1) Hemp-derived cannabinoid product.--The term `hemp-
derived cannabinoid product' has the meaning given such term in
section 201 of the Federal Food, Drug, and Cosmetic Act. Except
as otherwise provided in this chapter, such term includes hemp-
derived beverages.
``(2) Hemp-derived beverage.--The term `hemp-derived
beverage' means a hemp-derived cannabinoid product which is a
non-alcoholic beverage intended for human consumption.
``(3) Removed for consumption or sale.--The term `removed
for consumption or sale' means any removal of a hemp-derived
cannabinoid product from the premises of the manufacturer of
such product.
``(4) Manufacturer.--
``(A) In general.--The term `manufacturer', when
used with respect to hemp-derived cannabinoid products,
means any person who--
``(i) is engaged in the business of
preparing, processing, modifying, or
manipulating hemp, including any unfinished
hemp-cannabinoid ingredient, to produce such
products for purposes of wholesale or retail
distribution, and
``(ii) has a permit to engage in such
business under subchapter B.
``(B) Hemp; unfinished hemp-cannabinoid
ingredient.--For purposes of subparagraph (A), the
terms `hemp' and `unfinished hemp-cannabinoid
ingredient' have the meanings given such terms in
section 297A of the Agricultural Marketing Act of 1946.
``(5) Wholesaler.--The term `wholesaler', when used with
respect to hemp-derived beverages, means any person who is
engaged in the business of purchasing such beverages for resale
at wholesale and has a permit to engage in such business under
subchapter B.
``(6) Retailer.--The term `retailer', when used with
respect to hemp-derived beverages, means any person who is
engaged in the business of purchasing such beverages for resale
to consumers.
``SEC. 5901. TAX ON HEMP-DERIVED BEVERAGES.
``(a) Imposition and Rate of Tax.--
``(1) In general.--A tax is hereby imposed on all hemp-
derived beverages produced, and removed for consumption or
sale, within the United States. The rate of such tax with
respect to each hemp-derived beverage shall be 5 cents on each
milligram of tetrahydrocannabinol in such beverage.
``(2) Illegally produced hemp-derived beverages.--Any hemp-
derived beverage which is produced at any place in the United
States, on the premises of any person who does not have a
permit under subchapter B, shall be subject to tax at the rate
prescribed in paragraph (1).
``(b) Determination and Collection of Tax.--
``(1) In general.--The tax imposed by subsection (a)(1) on
a hemp-derived beverage shall be--
``(A) determined at the time such beverage is
removed for consumption or sale, and
``(B) paid by the manufacturer of such beverage in
accordance with section 5901C.
``(2) Illegally produced hemp-derived beverages.--The tax
imposed by subsection (a)(2) on a hemp-derived beverage shall
be due and payable immediately upon production.
``(c) Applicability of Other Provisions of Law.--All administrative
and penal provisions of this title, insofar as applicable, shall apply
to any tax imposed by subsection (a).
``SEC. 5901A. TAX ON HEMP-DERIVED CANNABINOID PRODUCTS.
``(a) Imposition and Rate of Tax.--
``(1) In general.--A tax is hereby imposed on all hemp-
derived cannabinoid products (other than hemp-derived
beverages) produced, and removed for consumption or sale,
within the United States. The rate of such tax with respect to
each hemp-derived cannabinoid product shall be the amount equal
to 5 percent of the price for which such product is sold.
``(2) Illegally produced hemp-derived cannabinoid
products.--Any hemp-derived cannabinoid product (other than a
hemp-derived beverage) which is produced at any place in the
United States, on the premises of any person who does not have
a permit under subchapter B, shall be subject to tax at the
rate prescribed in paragraph (1).
``(b) Determination and Collection of Tax.--
``(1) In general.--The tax imposed by subsection (a)(1) on
a hemp-derived cannabinoid product shall be--
``(A) determined at the time such product is
removed for consumption or sale, and
``(B) paid by the manufacturer of such product in
accordance with section 5901C.
``(2) Illegally produced hemp-derived cannabinoid
products.--The tax imposed by subsection (a)(2) on a hemp-
derived cannabinoid product shall be due and payable
immediately upon production.
``(c) Applicability of Other Provisions of Law.--All administrative
and penal provisions of this title, insofar as applicable, shall apply
to any tax imposed by subsection (a).
``SEC. 5901B. TAX ON SALES REVENUE OF MANUFACTURERS OF HEMP-DERIVED
CANNABINOID PRODUCTS.
``(a) Imposition and Rate of Tax.--A tax is hereby imposed on all
manufacturers of hemp-derived cannabinoid products. The rate of such
tax with respect to each manufacturer shall be the amount equal to 5
percent of the sales revenue of such manufacturer for the taxable year.
``(b) Sales Revenue Defined.--For purposes of this section, the
term `sales revenue' means the gross receipts from the sale of hemp-
derived cannabinoid products.
``(c) Determination and Collection of Tax.--The tax imposed by
subsection (a) on a manufacturer of hemp-derived cannabinoid products
shall be--
``(1) determined at the close of the taxable year, and
``(2) paid by such manufacturer in accordance with section
5901C.
``(d) Applicability of Other Provisions of Law.--All administrative
and penal provisions of this title, insofar as applicable, shall apply
to any tax imposed by subsection (a).
``SEC. 5901C. METHOD OF COLLECTING TAX.
``(a) Collection by Return.--The taxes imposed by this subchapter
shall be collected on the basis of a return. The Secretary shall by
regulation prescribe the period or event for which such return shall be
filed, the time for filing such return, the information to be furnished
on such return, and the time for payment of such taxes.
``(b) Exceptions.--Notwithstanding subsection (a), any tax imposed
by section 5901(a)(2) or section 5901A(a)(2) shall be immediately due
and payable at the time provided by such provisions. Such tax shall be
assessed and collected by the Secretary on the basis of the information
available to the Secretary in the same manner as taxes payable by
return but with respect to which no return has been filed.
``(c) Assessment.--If any tax imposed by this subchapter is not
paid in full at the time required for such payment, it shall be the
duty of the Secretary, subject to the limitations prescribed in section
6501, on proof satisfactory to the Secretary, to determine the amount
of tax which has been omitted to be paid, and to make an assessment
therefor against the person liable for the tax. The tax so assessed
shall be in addition to the penalties imposed by law for failure to pay
such tax when required.
``Subchapter B--Qualification Requirements for Manufacturers of Hemp-
derived Cannabinoid Products and Wholesalers of Hemp-derived Beverages
``Sec. 5902. Application for permit.
``Sec. 5902A. Permit.
``Sec. 5902B. Judicial review.
``SEC. 5902. APPLICATION FOR PERMIT.
``Every person, before commencing business as a manufacturer of
hemp-derived cannabinoid products, or wholesaler of hemp-derived
beverages, and at such other time as the Secretary shall by regulation
prescribe, shall make application for the permit provided for in
section 5902A. The application shall be in such form as the Secretary
shall prescribe and shall set forth, truthfully and accurately, the
information called for on such form. Such application may be rejected
and the permit denied if the Secretary, after notice and opportunity
for hearing, finds that--
``(1) the premises on which it is proposed to conduct the
business are not adequate to protect the revenue, or
``(2) such person (or any person required by regulation to
be listed in the application)--
``(A) is not likely to maintain operations in
compliance with this chapter,
``(B) has been convicted of a felony violation of
any provision of Federal or State criminal law relating
to hemp-derived cannabinoid products, or
``(C) has failed to disclose any material
information required or made any material false
statement in the application.
``SEC. 5902A. PERMIT.
``(a) Issuance.--A person shall not engage in business as a
manufacturer of hemp-derived cannabinoid products, or wholesaler of
hemp-derived beverages, without a permit to engage in such business.
Such permit, conditioned upon compliance with this chapter and
regulations prescribed thereunder, shall be issued, in such form and in
such manner as the Secretary shall by regulation prescribe, to every
person properly qualified under section 5902. A new permit may be
required at such other time as the Secretary shall by regulation
prescribe.
``(b) Suspension or Revocation.--
``(1) Show cause hearing.--If the Secretary has reason to
believe that any person holding a permit--
``(A) has not in good faith complied with this
chapter, or with any other provision of this title
involving intent to defraud,
``(B) has violated the conditions of such permit,
``(C) has failed to disclose any material
information required or made any material false
statement in the application for such permit,
``(D) has failed to maintain the premises in such
manner as to protect the revenue,
``(E) is, by reason of previous or current legal
proceedings involving a felony violation of any other
provision of Federal criminal law relating to hemp-
derived cannabinoid products, not likely to maintain
operations in compliance with this chapter, or
``(F) has been convicted of a felony violation of
any provision of Federal or State criminal law relating
to hemp-derived cannabinoid products,
the Secretary shall issue an order, stating the facts charged,
citing such person to show cause why the permit should not be
suspended or revoked.
``(2) Action following hearing.--If, after a hearing, the
Secretary finds that such person has not shown cause why the
permit should not be suspended or revoked, such permit shall be
suspended for such period as the Secretary deems proper or
shall be revoked.
``SEC. 5902B. JUDICIAL REVIEW.
``If the Secretary denies a person a permit under section 5902, or
suspends or revokes the permit of a person under section 5902A, such
person may obtain judicial review by filing in the United States Court
of Appeals for the circuit wherein the person resides or has the
person's principal place of business, or in the United States Court of
Appeals for the District of Columbia, within 60 days after such denial,
suspension, or revocation, as the case may be. Any findings of fact by
the Secretary, if supported by substantial evidence, shall be
conclusive.
``Subchapter C--Operations by Manufacturers of Hemp-derived Cannabinoid
Products and Wholesalers of Hemp-derived Beverages
``Sec. 5903. Inventories.
``Sec. 5903A. Reports.
``Sec. 5903B. Packages, marks, labels, and notices.
``SEC. 5903. INVENTORIES.
``Every manufacturer of hemp-derived cannabinoid products, and
every wholesaler of hemp-derived beverages, shall make a true and
accurate inventory at the time of commencing business, at the time of
concluding business, and at such other times, in such manner and form,
and to include such items, as the Secretary shall by regulation
prescribe. Such inventories shall be subject to verification by any
internal revenue officer.
``SEC. 5903A. REPORTS.
``Every manufacturer of hemp-derived cannabinoid products, and
every wholesaler of hemp-derived beverages, shall make reports
containing such information, in such form, at such times, and for such
periods as the Secretary shall by regulation prescribe.
``SEC. 5903B. PACKAGES, MARKS, LABELS, AND NOTICES.
``Every hemp-derived cannabinoid product shall, before such product
is removed for consumption or sale, be put up in such package and bear
the marks, labels, and notices, if any, that the Secretary by
regulation prescribes.
``Subchapter D--Distribution System for Hemp-derived Beverages
``Sec. 5904. Distribution system.
``SEC. 5904. DISTRIBUTION SYSTEM.
``The Secretary shall prescribe regulations to establish and
implement a three-tiered distribution system for hemp-derived
beverages. Such regulations shall, at a minimum, require the following:
``(1) Tier 1--manufacturers.--A manufacturer of hemp-
derived beverages may only sell or transfer such beverages to a
wholesaler of hemp-derived beverages.
``(2) Tier 2--wholesalers.--A wholesaler of hemp-derived
beverages may only--
``(A) purchase such beverages from a manufacturer
of hemp-derived beverages, and
``(B) sell or transfer such beverages to a retailer
of hemp-derived beverages.
``(3) Tier 3--retailers.--A retailer of hemp-derived
beverages may only purchase such beverages from a wholesaler of
hemp-derived beverages.
No person may hold permits under subchapter B as both a manufacturer of
hemp-derived beverages and a wholesaler of hemp-derived beverages, and
no person may hold any interest, directly or indirectly, in more than
one tier. The separation among the three tiers shall be strictly
maintained.
``Subchapter E--General Provisions Relating to Hemp-derived Cannabinoid
Products
``Sec. 5905. Records to be maintained.
``Sec. 5905A. Right of entry and examination.
``Sec. 5905B. Purchase, receipt, possession, or sale of hemp-derived
beverages after removal.
``Sec. 5905C. Restrictions relating to marks, labels, notices, and
packages.
``SEC. 5905. RECORDS TO BE MAINTAINED.
``Every manufacturer of hemp-derived cannabinoid products, and
every wholesaler of hemp-derived beverages, shall keep such records in
such manner as the Secretary shall by regulation prescribe.
``SEC. 5905A. RIGHT OF ENTRY AND EXAMINATION.
``The Secretary may, during business hours, enter the premises of
any manufacturer of hemp-derived cannabinoid products, or wholesaler of
hemp-derived beverages, for the purpose of examining--
``(1) any records required under section 5905, or
``(2) any hemp-derived cannabinoid products stored on such
premises.
``SEC. 5905B. PURCHASE, RECEIPT, POSSESSION, OR SALE OF HEMP-DERIVED
CANNABINOID PRODUCTS AFTER REMOVAL.
``(a) Restriction.--No person shall--
``(1) with intent to defraud the United States, purchase,
receive, possess, offer for sale, or sell or otherwise dispose
of, any hemp-derived cannabinoid product (after such product
has been removed for consumption or sale) upon which the tax
has not been paid or determined in the manner and at the time
prescribed by this chapter or regulations thereunder,
``(2) with intent to defraud the United States, purchase,
receive, possess, offer for sale, or sell or otherwise dispose
of, any hemp-derived cannabinoid product (after such product
has been removed for consumption or sale) which is not put up
in a package as required under section 5903B or which is put up
in a package not bearing the marks, labels, and notices
required under such section, or
``(3) otherwise than with intent to defraud the United
States, purchase, receive, possess, offer for sale, or sell or
otherwise dispose of, any hemp-derived cannabinoid product
(after such product has been removed for consumption or sale)
which is not put up in a package as required under section
5903B or which is put up in a package not bearing the marks,
labels, and notices required under such section.
Paragraph (3) shall not prevent the sale or delivery of hemp-derived
cannabinoid products directly to consumers from proper packages, nor
apply to such products when so sold or delivered.
``(b) Liability to Tax.--Any person who possesses hemp-derived
cannabinoid products in violation of subsection (a)(1) or (a)(2) shall
be liable for a tax equal to the tax on such products, as applicable
under subchapter A.
``SEC. 5905C. RESTRICTIONS RELATING TO MARKS, LABELS, NOTICES, AND
PACKAGES.
``No person shall, with intent to defraud the United States,
destroy, obliterate, or detach any mark, label, or notice prescribed or
authorized, by this chapter or regulations thereunder, to appear on, or
be affixed to, any package of hemp-derived cannabinoid products before
such package is emptied.
``Subchapter F--Miscellaneous General Provisions
``Sec. 5906. Regulations.
``Sec. 5906A. Application of State laws.
``SEC. 5906. REGULATIONS.
``The Secretary shall prescribe such regulations or other guidance
as may be necessary or appropriate to carry out the purposes of this
chapter.
``SEC. 5906A. APPLICATION OF STATE LAWS.
``Compliance with this chapter with respect to carrying on any
trade or business shall not be held to exempt any person from any
penalty or punishment provided by the laws of any State for carrying on
such trade or business within such State, or in any manner to authorize
the commencement or continuance of such trade or business contrary to
the laws of such State; nor shall the payment of any tax imposed by
this chapter be held to prohibit any State from placing a tax on the
same trade or business for State or other purposes.
``Subchapter G--Penalties
``Sec. 5907. Civil penalties.
``Sec. 5907A. Criminal penalties.
``SEC. 5907. CIVIL PENALTIES.
``(a) Omitting Things Required or Doing Things Forbidden.--Whoever
willfully omits, neglects, or refuses to comply with any tax imposed by
this chapter, or to do, or cause to be done, any of the things required
by this chapter, or does anything prohibited by this chapter, shall, in
addition to any other penalty provided in this title, be liable to a
penalty of $1,000 for each such omission or commission.
``(b) Failure To Pay Tax.--Whoever fails to pay any tax imposed by
this chapter at the time prescribed by law or regulations, shall, in
addition to any other penalty provided in this title, be liable to a
penalty of 5 percent of the tax due but unpaid.
``(c) Applicability of Section 6665.--The penalties imposed by this
section shall be assessed, collected, and paid in the same manner as
taxes, as provided in section 6665(a).
``SEC. 5907A. CRIMINAL PENALTIES.
``(a) Fraudulent Offenses.--Whoever, with intent to defraud the
United States--
``(1) Engaging in business unlawfully.--Engages in business
as a manufacturer of hemp-derived cannabinoid products, or
wholesaler of hemp-derived beverages, without obtaining the
permit required by this chapter or regulations thereunder, or
``(2) Failing to furnish information or furnishing false
information.--Fails to keep or make any record, return, report,
or inventory, or keeps or makes any false or fraudulent record,
return, report, or inventory, required by this chapter or
regulations thereunder, or
``(3) Refusing to pay or evading tax.--Refuses to pay any
tax imposed by this chapter, or attempts in any manner to evade
or defeat the tax or the payment thereof, or
``(4) Removing hemp-derived cannabinoid products
unlawfully.--Removes for consumption or sale, contrary to this
chapter or regulations thereunder, any hemp-derived cannabinoid
product subject to tax under this chapter, or
``(5) Purchasing, receiving, possessing, or selling hemp-
derived cannabinoid products unlawfully.--Violates any
provision of section 5905B(a)(1) or (a)(2), or
``(6) Destroying, obliterating, or detaching marks, labels,
or notices before packages are emptied.--Violates any provision
of 5905C,
shall, for each such offense, be fined not more than $10,000, or
imprisoned not more than 5 years, or both.
``(b) Other Offenses.--Whoever, otherwise than as provided in
subsection (a), violates any provision of this chapter, or of
regulations prescribed thereunder, shall, for each such offense, be
fined not more than $1,000, or imprisoned not more than 1 year, or
both.''.
(b) Trust Fund for Oversight of Hemp-Derived Cannabinoid
Products.--Subchapter A of chapter 98 of such Code is amended by adding
at the end the following new section:
``SEC. 9512. TRUST FUND FOR OVERSIGHT OF HEMP-DERIVED CANNABINOID
PRODUCTS.
``(a) Creation of Trust Fund.--There is hereby established in the
Treasury of the United States a trust fund to be known as the `Trust
Fund for Oversight of Hemp-derived Cannabinoid Products', consisting of
such amounts as may be appropriated to such Trust Fund as provided in
this section.
``(b) Transfer to Trust Fund of Amounts Equivalent to Certain
Taxes.--There are hereby appropriated to the Trust Fund for Oversight
of Hemp-derived Cannabinoid Products amounts equivalent to the taxes
received in the Treasury under sections 5901A and 5901B.
``(c) Expenditures From Trust Fund.--Amounts in the Trust Fund for
Oversight of Hemp-derived Cannabinoid Products shall be available,
without further appropriation, to the Secretary for making
expenditures--
``(1) to carry out the requirements of chapter 56,
``(2) to administer or conduct oversight of any hemp
commerce regulatory program, as authorized by law,
``(3) to carry out any consumer protection activities
related to hemp-derived cannabinoid products, as authorized by
law, and
``(4) to support States that cooperate with the Secretary
in carrying out the requirements of chapter 56.
``(d) Annual Report to Congress.--The Secretary shall submit an
annual report to Congress and include in such report with respect to
the preceding year--
``(1) the amounts appropriated to the Trust Fund for
Oversight of Hemp-derived Cannabinoid Products under subsection
(b), and
``(2) any expenditures made from such Trust Fund under
subsection (c).''.
(c) Highway Trust Fund.--Section 9503 of such Code is amended by
adding at the end the following new subsection:
``(g) Zero-Tolerance for Impaired Driving.--There are hereby
appropriated into the Highway Trust Fund amounts equivalent to 1
percent of the total taxes received in the Treasury each year under
section 5901 (relating to taxes on hemp-derived beverages). Such
amounts shall be available for making expenditures to support State-
level enforcement, training, and testing technologies related to the
zero-tolerance for impaired driving standards described in section 180
of title 23, United States Code.''.
(d) Disclosure of Returns and Return Information.--Section 6103(l)
of such Code is amended by adding at the end the following new
paragraph:
``(23) Disclosure of returns and return information to
federal, state, tribal, and local agencies administering or
enforcing hemp laws.--
``(A) In general.--Returns and return information
with respect to taxes imposed by chapter 56 may be open
to inspection by, or disclosure to, any Federal, State,
tribal, or local agency charged under any Federal,
State, tribal, or local hemp law with responsibility
for the administration or enforcement of such law for
the purpose of, and only to the extent necessary in,
the administration or enforcement of such law. However,
such returns and return information shall not be so
disclosed if the Secretary determines that such
disclosure would seriously impair Federal tax
administration.
``(B) Public information.--The Secretary shall make
publicly available the name and business address of
each manufacturer of hemp-derived cannabinoid products
and each wholesaler of hemp-derived beverages.
``(C) Definitions.--Any term used in this paragraph
which is also used in chapter 56 shall have the same
meaning for purposes of this paragraph as when used in
such chapter.''.
(e) Conforming Amendments.--
(1) Section 6091(b)(6) of such Code is amended--
(A) by striking ``and firearms'' and inserting
``firearms, and hemp-derived cannabinoid products'',
and
(B) in the heading thereof, by striking ``and
firearms'' and inserting ``firearms, and hemp-derived
cannabinoid products''.
(2) Section 7613(a)(2) of such Code is amended by striking
``and firearms'' and inserting ``firearms, and hemp-derived
cannabinoid products''.
(3) The table of chapters for subtitle E of such Code is
amended by adding at the end the following new item:
``Chapter 56--Hemp-derived Cannabinoid Products''.
(4) The table of sections for subchapter A of chapter 98 of
such Code is amended by adding at the end the following new
item:
``Sec. 9512. Trust Fund for Oversight of Hemp-derived Cannabinoid
Products.''.
(f) Deadline for Regulations.--The Secretary of the Treasury (or
the Secretary's delegate) shall prescribe regulations to implement
chapter 56 of the Internal Revenue Code of 1986 (as added by this
section) not later than 1 year after the date of the enactment of this
Act.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
hemp-derived cannabinoid products sold on or after the date on
which the Secretary publishes the regulations prescribed under
subsection (f).
(2) Transition rule.--
(A) In general.--No person may engage in business
as a manufacturer of hemp-derived cannabinoid products,
or wholesaler of hemp-derived beverages, after the date
of the enactment of this Act until such person has a
permit in accordance with chapter 56 of the Internal
Revenue Code of 1986 (as added by this section) and
regulations prescribed thereunder. Notwithstanding the
preceding sentence, any person who is engaged in
business as a manufacturer of hemp-derived cannabinoid
products, or wholesaler of hemp-derived beverages, on
the date of the enactment of this Act may continue to
engage in such business on the condition that--
(i) the person applies for a permit within
30 days after the date described in paragraph
(1), and
(ii) beginning on the date described in
paragraph (1), complies with such chapter 56
and such regulations.
(B) Penalties.--A violation of subparagraph (A) by
any person shall be treated for all purposes in the
same manner as a violation of chapter 56 of the
Internal Revenue Code of 1986 (as added by this
section), and such person shall be subject to the same
penalties, and to the same extent, as for a violation
of such chapter.
(3) Trust funds.--The amendments made by subsections (b)
and (c) shall apply to taxes received after the date described
in paragraph (1).
(4) Disclosure of returns and return information.--The
amendment made by subsection (d) shall apply to disclosures
after the date described in paragraph (1).
SEC. 7. UNFAIR COMPETITION AND UNLAWFUL PRACTICES.
(a) In General.--It shall be unlawful for any person engaged in
business as a manufacturer or wholesaler of hemp-derived beverages to
directly or indirectly--
(1) require, by agreement or otherwise, that any retailer
of hemp-derived beverages purchase such beverages from such
person to the exclusion, in whole or in part, of hemp-derived
beverages sold or offered for sale by other persons if--
(A) such requirement is made or such person engages
in such practice to such an extent as substantially to
restrain or prevent transactions in any such beverages,
or
(B) the direct effect of such requirement is to
prevent, deter, hinder, or restrict other persons from
selling or offering for sale any such beverages to such
retailer,
(2) induce any retailer of hemp-derived beverages to
purchase any such beverages from such person to the exclusion,
in whole or in part, of hemp-derived beverages sold or offered
for sale by other persons if--
(A) such inducement is made or such person engages
such practice to such an extent as substantially to
restrain or prevent transactions in any such beverages,
or
(B) the direct effect of such inducement is to
prevent, deter, hinder, or restrict other persons from
selling or offering for sale any such beverages to such
retailer by--
(i) acquiring or holding (after the
expiration of any existing permit) any interest
in any permit with respect to the premises of
the retailer,
(ii) acquiring any interest in real or
personal property owned, occupied, or used by
the retailer in the conduct of the retailer's
business,
(iii) furnishing, giving, renting, lending,
or selling to the retailer, any equipment,
fixtures, signs, supplies, money, services, or
other thing of value, subject to such
exceptions as the Secretary shall by regulation
prescribe, having due regard for public health,
the quantity and value of articles involved,
established trade customs not contrary to the
public interest and the purposes of this
subsection,
(iv) paying or crediting the retailer for
any advertising, display, or distribution
service,
(v) guaranteeing any loan or the repayment
of any financial obligation of the retailer,
(vi) extending to the retailer credit for a
period in excess of the credit period usual and
customary to the industry for the particular
class of transactions, as the Secretary shall
by regulation prescribe, or
(vii) requiring the retailer to take and
dispose of a certain quota of any of such
beverages,
(3) induce any trade buyer engaged in the sale of hemp-
derived beverages to purchase such beverages from such person
to the exclusion, in whole or in part, of hemp-derived
beverages sold or offered for sale by other persons if--
(A) such inducement is made or such person engages
in such practice to such an extent as substantially to
restrain or prevent transactions in any such beverages,
or
(B) the direct effect of such inducement is to
prevent, deter, hinder, or restrict other persons from
selling or offering for sale any such beverages to such
trade buyer by--
(i) commercial bribery, or
(ii) offering or giving any
disproportionate bonus, premium, or
compensation to any officer, employee, or
representative of the trade buyer, or
(4) sell, offer for sale, or contract to sell to any trade
buyer engaged in the sale of hemp-derived beverages, or for any
such trade buyer to purchase, offer to purchase, or contract to
purchase, any such beverages on consignment or under
conditional sale or with the privilege of return or on any
basis other than a bona fide sale, or where any part of such
transaction involves, directly or indirectly, the acquisition
by such person from the trade buyer or such person's agreement
to acquire from the trade buyer other hemp-derived beverages
if--
(A) such person or trade buyer engages in such
practice to such an extent as substantially to restrain
or prevent transactions in any such beverages, or
(B) the direct effect of such sale, purchase,
offer, or contract is to prevent, deter, hinder, or
restrict other persons from selling or offering for
sale any such beverages to such trade buyer.
(b) Application to Bona Fide Return of Merchandise.--Subsection (a)
shall not apply to any transaction involving solely the bona fide
return of merchandise for ordinary and usual commercial reasons arising
after the merchandise has been sold.
(c) Application to State and Local Agencies.--Paragraphs (1), (2),
and (3) of subsection (a) shall not apply to any agency of a State or
any political subdivision thereof, or to any officer or employee of
such an agency.
(d) Penalties.--Any person who violates a requirement of subsection
(a) shall be guilty of a misdemeanor, and upon conviction, be subject
to a fine of not more than $1,000 and the seizure and forfeiture of all
hemp-derived beverages involved in such violation.
(e) Secretary Defined.--For purposes of this section, the term
``Secretary'' means the Secretary of the Treasury (or the Secretary's
delegate).
(f) Other Definitions.--Any term used in this section which is also
used in chapter 56 of the Internal Revenue Code of 1986 (as added by
this Act) shall have the same meaning for purposes of this section as
when used in such chapter.
SEC. 8. PROHIBITION RELATED TO UNFINISHED HEMP-CANNABINOID INGREDIENTS.
(a) In General.--It shall be unlawful to market, sell, distribute,
or ship an unfinished hemp-cannabinoid ingredient to any person other
than a manufacturer of hemp-derived cannabinoid products who has a
permit under chapter 56 of the Internal Revenue Code of 1986 (as added
by this Act) for the purpose of further manufacturing such product into
a finished hemp-derived cannabinoid product.
(b) Penalties.--Any person who violates subsection (a) shall be
guilty of a misdemeanor, and upon conviction, be subject to a fine of
not more than $1,000. In addition to such fine, such person may have
their permit under chapter 56 of the Internal Revenue Code of 1986 (as
added by this Act) suspended or revoked.
(c) Unfinished Hemp-Cannabinoid Ingredient Defined.--For purposes
of this section, the term ``unfinished hemp-cannabinoid ingredient''
has the meaning given such term in section 297A of the Agricultural
Marketing Act of 1946.
SEC. 9. ZERO TOLERANCE FOR IMPAIRED DRIVING.
(a) In General.--Chapter 1 of title 23, United States Code, is
amended by adding at the end the following:
``Sec. 180. Zero tolerance for impaired driving
``(a) In General.--For fiscal year 2027 and each fiscal year
thereafter, the Secretary shall withhold 10 percent of the amount
required to be apportioned to any State under paragraphs (1) and (2) of
section 104(b) if such State does not have in effect a law that meets
the requirements of subsection (b).
``(b) Requirements.--The requirements of this subsection are as
follows:
``(1) For purposes of enforcing laws relating to impaired
driving, impairment due to hemp shall be assessed using the
same field sobriety evaluation standards and protocols that law
enforcement officers apply to determine impairment caused by
lawfully prescribed pharmaceutical substances, including
opioids, benzodiazepines, and other controlled medications.
``(2) Any person determined to be operating a motor vehicle
while impaired by hemp shall be subject to the same penalties,
fines, license suspensions, and other sanctions as apply to
driving under the influence of alcohol or other impairing
substances under the laws of the State in which the violation
occurs.
``(c) State Enforcement.--Nothing in this section shall be
construed to limit the authority of any State to enforce its own laws
relating to impaired driving, provided such laws apply penalties for
hemp impairment that are no less stringent than those applied to
alcohol-related impairment.
``(d) Rule of Construction.--This section shall not be construed to
require the development of a per se blood or bodily fluid concentration
threshold for hemp-derived cannabinoids as a precondition for
enforcement of impaired driving laws.''.
(b) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, is amended by adding at the end the following:
``180. Zero tolerance for impaired driving.''.
SEC. 10. PROTECTION OF STATE REGULATORY AUTHORITY AND INTERSTATE
COMMERCE.
(a) Preservation of State Rights.--Except as provided in subsection
(b), nothing in this Act or the amendments made by this Act shall be
construed to preempt or limit the authority of a State, territory, or
Indian Tribe to enact or enforce laws and regulations governing the
production, manufacture, distribution, importation, or sale of hemp or
hemp-derived cannabinoid products within the borders, or exportation
out of the borders, of such State, territory, or Indian Tribe that are
more stringent than, or at least as protective as would be permitted
under an alcoholic beverage regulatory scheme comparable to, the
standards in this Act and the amendments made by this Act.
(b) Non-Interference With Interstate Commerce.--Pursuant to clause
3 of section 8 of article I, United States Constitution, no State,
territory, or Indian Tribe may enact or enforce any law that prevents
the passage and delivery of a hemp-derived cannabinoid product through
the borders of such State, territory, or Indian Tribe if such product
complies with this Act and the amendments made by this Act.
(c) Definitions.--In this section:
(1) Hemp.--The term ``hemp'' has the meaning given the term
in section 297A of the Agricultural Marketing Act of 1946 (7
U.S.C. 1639o), as amended by section 3 of this Act.
(2) Hemp-derived cannabinoid product.--The term ``hemp-
derived cannabinoid product'' has the meaning given the term in
section 201 of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 321), as amended by section 4(a) of this Act.
SEC. 11. SEVERABILITY.
If any provision of this Act or the amendments made by this Act, or
the application of any such provision to any person or circumstance, is
held to be unconstitutional or otherwise invalid by a court of
competent jurisdiction, the remainder of this Act and the amendments
made by this Act, and the application of the provisions of this Act and
the amendments made by this Act to any other person or circumstance,
shall not be affected thereby.
<all>Official legislative text sourced from the public record (cached on CivicsHQ).
Official source
View the original bill, actions, and full legislative record on Congress.gov.
Status
In Committee
- 1Introduced
- 2Committee
- 3Floor
- 4Passed
- 5Signed
Timeline reflects current normalized status only. Full action history is not yet stored in the API.
Sponsors
- Rep. Barr, Andy [R-KY-6]RHouseKY
Votes
Voting records are not yet available for this bill.