What Does Rep. Mace’s States Reform Act Have to Do With Hemp? – Hemp Grower
Taking a page out of alcohols playbook, a new bill on Capitol Hill intends to regulate cannabis through the Alcohol and Tobacco Tax and Trade Bureau (TTB) while relegating hemp oversight duties to the FDA.
The States Reform Act (SRA), sponsored by U.S. Rep. Nancy Mace, R-S.C., would end federal cannabis prohibition, implement a 3% cannabis excise tax, regulate interstate commerce and provide automatic expungement for non-violent cannabis convictions, among other provisions.
The legislation also aims to assign different primary oversight bodies to cannabis and hempkeeping one plant divided based on THC potency.
But with recent collisions between hemp industry stakeholdersspecifically those with ties to the CBDmarketplaceand the U.S. Food and Drug Administration, regulatory assignments have become a top dialog in federal policy discussions.
Many cannabis advocacy organizations publicly opposed the idea of their segment of the industry being regulated by the FDA following the introduction of the Cannabis Administration and Opportunity Act (CAOA), another legislative proposal to end federal prohibition that is sponsored by Sens. Chuck Schumer, D-N.Y., Ron Wyden, D-Ore., and Cory Booker, D-N.J.
RELATED: Industry Organizations Submit Feedback on Cannabis Administration and Opportunity Act
And if the cannabis industry can avoid the FDA as its primary regulator under federal legalization, then the question arises: should the hemp industry steer clear too?
Vicente Sederberg | vicentesederberg.com
Shawn Hauser, a partner at Vicente Sederberg LLP, who co-chairs the law firms hemp and cannabinoids department, compared the possible regulatory split in the SRA to the alcohol industry, where beer, wine and liquor are regulated by the TTB, while drinks like kombucha, that fall below the 0.5% alcohol by volume threshold, are regulated under the guidelines of the FDA.
As it pertains to cannabis and hemp, the differentiating threshold is 0.3% THC, as defined in the 2018 Farm Bill.
Generally, for hemp, [industry stakeholders] are concerned about FDA oversight now, and theyre concerned about it going forward, especially if cannabis is under this TTB structure, and maybe theres a benefit to regulating the whole plant that way, Hauser said. I think thats an important discussion that needs to be had. Whats the right approach for the whole plant?
In relation to TTB and FDA authority, whether the low-THC and high-THC versions of the plant should be treated differently is a question that needs to be considered, Hauser said.
The hemp industry has been in a lot of regulatory purgatory with the FDA since the 2018 Farm Bill legalized the production of hemp, she said.
It deferred to FDA the regulation of finished products, which it has yet to finalize, Hauser said. And thats been a real obstacle for the hemp industry. And one of the things that the Mace bill kind of does differently from the [CAOA] is really regulate cannabis like alcohol by giving TTB the primary regulatory authority over cannabis. (The CAOA would give primary authority to the FDA, TTB and the Bureau of Alcohol, Tobacco, Firearms and Explosives.)
Perhaps mostly notably, Maces SRA would waive drug preclusion language in the Federal Food, Drug and Cosmetic Act (FD&C Act) from applying to cannabis or hemp.
The drug preclusion provision, as currently applied to CBD, asserts that once a substance is studied or approvedfor use in a drug, that same substance cannot be used as an ingredient in a food or dietary supplement, Hauser said.
That provision is, in part, where the collision lies between CBD stakeholders and the FDA. Citing its own approval of CBD as an active ingredient in Epidiolex, a pharmaceutical epilepsy drug, the FDA has ruled that non-pharmaceutical CBD cannot be marketed as or in a dietary supplement based on drug preclusion language.
That provision is the reason why the FDA takes the position that CBD is illegal in food and dietary supplements, Hauser said. The States Reform Act would waive the preclusion for cannabis and for hemp, but it would still regulate hemp products under the FDAs purview as food and dietary supplements, while cannabis products would be regulated largely by TTB, like alcohol.
More focused efforts to remove drug preclusion language from the FD&C Act are included in current legislation in Congress.
In the House, U.S. Reps. Kurt Schrader, D-Ore., and Morgan Griffith, R-Va., reintroduced the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act (House Bill 841), which would waive drug preclusion language for CBD in dietary supplements only, Hauser said.
And U.S. Sens. Ron Wyden, D-Ore., Rand Paul, R-Ky., and Jeff Merkley, D-Ore., filed the Hemp Access and Consumer Safety Act (Senate Bill 1698), which would waive the drug preclusion for CBD in both food and dietary supplements, she said.
SRA also would waive the language for CBD in food and dietary supplements, as well as for all cannabis products, Hauser said.
Harris Bricken | harrisbricken.com
Jesse Mondry, an attorney with Harris Bricken who represents clients in the cannabis industry and regularly writes on litigation issues involving hemp and CBD, also talked about FDA implications in SRA.
I think we all, in the hemp industry, know that the FDA has dragged its feet on giving the industry any guidance on CBD, he said. That has had a real chilling effect on the growth of the industry. And hopefully, if this were to pass, and the FDA is authorized and even directed to promulgate regulations, that the FDA will get that sorted out faster.
In addition to TTB and FDA regulatory indications, SRAs potential impact on requirements revolving around the U.S. Department of Agricultures (USDA) relationship to the hemp industry, as well and opening the doors for new players and industry growth, are other examples of the legislations reach, Mondry said.
In theory, [SRA] should allow the USDA to eliminate or reduce the number of regulatory requirements in the licensing process, because many of those are designed to disincentivize and penalize persons who may seek to grow marijuana under the guise of a hemp license, he said.
Mondry is based out of Oregon, where law enforcement officials and regulators have recently been cracking down on illicit cannabis operations masquerading under hemp licenses.
RELATED: Hemp Field Inspections in Southern Oregon Reveal Staggering Number of Illicit Cannabis Operations
The USDA expressly states that a number of its reporting requirements are so bad the Farm Service Agency may provide accurate and real-time information to law enforcement, particularly federal law enforcement, Mondry said. That sort of need and that impetus should be substantially eliminated, and it should have the effect of lessening the regulatory burden on hemp farmers.
Also a potential domino effect of cannabis being removed as a Schedule I drug from the Controlled Substance Act would be protections for hemp labs that still fall under the U.S. Drug Enforcement Administrations (DEA) authority, Mondry said.
DEA officials maintain that any material containing more than 0.3% delta-9 THC on a dry-weight basis is still classified as a Schedule I substance, and therefore certain stages of hemp extraction can be viewed as non-compliant. During certain stages of refinement, the THC levels of intermediary hemp materials are concentrated, meaning they are above the legal THC limit, before they are remediated further to a final, THC-compliant product in the extraction process.
As it stands, the DEA maintains some jurisdiction over hemp. Under the USDAs final rule, which went into effect in March, hemp testing labs are required to obtain DEA certification by the end of 2022. So far, labs all across the country have obtained this certification.
The USDA has incorrectly, in my view, sought to impose this DEA certification program on hemp testing labs, Mondry said I think ending that requirement would help end the bottleneck at this testing level and allow the hemp CBD industry to scale up. Thats just one way to do that.
In the broader reform picture, Mondry said an end to federal cannabis prohibition might result in an increased entry of participants into the hemp market.
[That includes people] who previously stayed on the sidelines and refrainedfrom entering the hemp market because of the connection and association with marijuana, he said. And Im thinking here, Wall Street investment firms, banks, large agribusiness, major manufacturers of food and beverage products. So, I think if the States Reform Act were to pass, we could see the hemp market really pick up and really grow rapidly. Thats sort of my take on it.
Mondry said he was more pleased than surprised when Mace, a Deep South Republican, introduced federal cannabis legislation. SRA represents a growing corps of voicesfrom both sides of the political spectrum to end prohibition, he said.
Hauser said much of the same.
I thought it was really positive, she said about Maces SRA introduction. I think the bipartisan support will really move the needle, and its representative of where the public is as far as supportive regulation, and theres a need for reform and a tax-and-regulate system, and thats something both sides of the aisle agree on.
See original here:
What Does Rep. Mace's States Reform Act Have to Do With Hemp? - Hemp Grower
- Sen. Rand Paul says Caribbean boat strikes 'go against all of our tradition' - NBC News - October 19th, 2025 [October 19th, 2025]
- Sen. Rand Paul introduces tourism project for EKY - WKYT - October 19th, 2025 [October 19th, 2025]
- Senator Rand Paul highlights new tourism initiative to boost Eastern Kentucky economy - LEX18 - October 19th, 2025 [October 19th, 2025]
- EXCLUSIVE INTERVIEWS WITH UKRAINIAN PRESIDENT VOLODYMYR ZELENSKYY, SEN. RAND PAUL AND SEN. TIM KAINE THIS SUNDAY ON MEET THE PRESS WITH KRISTEN WELKER... - October 19th, 2025 [October 19th, 2025]
- Trump Slams Rand Paul After He Moves To Block Military Pressure Campaign Against Venezuela: 'Nasty Liddle' Guy' - Latin Times - October 19th, 2025 [October 19th, 2025]
- Senator Rand Paul announces new organization to focus on Eastern Kentucky tourism - WOWK 13 News - October 17th, 2025 [October 17th, 2025]
- Rand Paul COVID vaccine theories aren't helping to bridge public health divide | Opinion - Yahoo - October 15th, 2025 [October 15th, 2025]
- Rand Paul COVID vaccine theories aren't helping to bridge public health divide | Opinion - The Courier-Journal - October 15th, 2025 [October 15th, 2025]
- Press Release: Rand Paul Proposes Amendment to Terminate Federal Reserve's Assistance to Major Banks in 2026 NDAA - Quiver Quantitative - October 11th, 2025 [October 11th, 2025]
- Republican Sen. Rand Paul Set To Cosponsor Initiative To Prevent Trump Admin From Striking Boats In The Caribbean - Latin Times - October 11th, 2025 [October 11th, 2025]
- Press Release: Chairman Rand Paul Introduces Safeguarding Personal Information Act of 2025 - Quiver Quantitative - October 9th, 2025 [October 9th, 2025]
- Article | Rand Paul blocks Senate extension of cyber information sharing law - POLITICO Pro - October 9th, 2025 [October 9th, 2025]
- There has to be someone who 'believes debt is a problem,' says Sen. Rand Paul - Fox Business - October 4th, 2025 [October 4th, 2025]
- Sen. Rand Paul weighs in on government shutdown, believes it will be 'short lived' - Yahoo - October 4th, 2025 [October 4th, 2025]
- Press Release: Senator Rand Paul Releases Report on TSA's Targeting of Veterans and Lawmakers - Quiver Quantitative - October 4th, 2025 [October 4th, 2025]
- Sen. Rand Paul: Bidens TSA Targeted Veterans, Lawmakers, Mask Critics, and Air Marshals Wife - The Daily Signal - October 4th, 2025 [October 4th, 2025]
- Rand Paul Slams GOP Funding Bill on Fox News Warns It Will Wipe Out DOGE Cuts - Yahoo - October 2nd, 2025 [October 2nd, 2025]
- Kentucky Sen. Rand Paul appears on 'Face the Nation' on CBS - WLKY - September 30th, 2025 [September 30th, 2025]
- Sen. Rand Paul says he would "prefer not to have troops" in Portland, but supports Trump's action - CBS News - September 30th, 2025 [September 30th, 2025]
- Transcript: Sen. Rand Paul on "Face the Nation with Margaret Brennan," Sept. 28, 2025 - Yahoo - September 30th, 2025 [September 30th, 2025]
- Targeted by Trump, Rep. Thomas Massie teams up with Rand Paul for district tour - Louisville Public Media - September 30th, 2025 [September 30th, 2025]
- Trump-targeted GOP congressman Massie tours his Kentucky district with support from Sen. Rand Paul - ABC News - Breaking News, Latest News and Videos - September 28th, 2025 [September 28th, 2025]
- Rand Paul quips Kimmels thanks is first time Ive ever been on his program - Kentucky Lantern - September 25th, 2025 [September 25th, 2025]
- Sen. Rand Paul, Rep. Thomas Massie host forums with Northern Kentucky voters - WLWT - September 25th, 2025 [September 25th, 2025]
- He is so bad hes lost Rand Paul and Ted Cruz: Nicolle Wallace on Trumps crackdown on free speech - MSNBC News - September 25th, 2025 [September 25th, 2025]
- Rand Paul calls NKY a bastion of conservatism at Thomas Massie Rally - LINK nky - September 25th, 2025 [September 25th, 2025]
- Rep. Thomas Massie tours district with Sen. Rand Paul - Spectrum News - September 25th, 2025 [September 25th, 2025]
- Rand Paul and Ted Cruz: The FCCs phony right-wing critics - Salon.com - September 25th, 2025 [September 25th, 2025]
- Rand Paul quips Kimmels thanks is first time Ive ever been on his program - somerset-kentucky.com - September 25th, 2025 [September 25th, 2025]
- Rand Paul vows to protect free speech but says theres no right to employment - Kentucky Lantern - September 23rd, 2025 [September 23rd, 2025]
- GOPs Rand Paul Says He Will Fight FCC Meddling in Free Speech - Bloomberg - September 23rd, 2025 [September 23rd, 2025]
- Rand Paul vows to protect free speech but says theres no right to employment - The Paducah Sun - September 23rd, 2025 [September 23rd, 2025]
- New Bill: Senator Rand Paul introduces S. 2769: Safeguarding Personal Information Act of 2025 - Quiver Quantitative - September 23rd, 2025 [September 23rd, 2025]
- Sen. Rand Paul rips FCC chair Brendan Carr over Jimmy Kimmel threat: No business weighing in on this - New York Post - September 23rd, 2025 [September 23rd, 2025]
- RAND PAUL BLASTS FCC OVER KIMMEL SUSPENSION: ABSOLUTELY INAPPROPRIATE Sen. Rand Paul is torching FCC Chairman Brendan Carr. Carr appeared to pressure... - September 23rd, 2025 [September 23rd, 2025]
- Sen. Rand Paul discusses wide range of topics on NBC's 'Meet the Press' - WLKY - September 23rd, 2025 [September 23rd, 2025]
- Rand Paul's last-minute demands push key cybersecurity law to the brink - Axios - September 21st, 2025 [September 21st, 2025]
- You have your time, Bernie: Rand Paul and Sanders in Senate dustup over letting RFK-fired CDC chief answer - Yahoo - September 21st, 2025 [September 21st, 2025]
- Senator Rand Paul speaks on looming government shutdown - Eyewitness News (WEHT/WTVW) - September 21st, 2025 [September 21st, 2025]
- Rand Paul clashes with Bernie Sanders, former CDC director over vaccinating infants - Fox News - September 19th, 2025 [September 19th, 2025]
- EXCLUSIVE INTERVIEWS WITH GOV. JOSH SHAPIRO, SEN. RAND PAUL AND MEL ROBBINS THIS SUNDAY ON MEET THE PRESS WITH KRISTEN WELKER - NBCUniversal News... - September 19th, 2025 [September 19th, 2025]
- You have your time, Bernie: Rand Paul and Sanders in Senate dustup over letting RFK-fired CDC chief answer - The Independent - September 19th, 2025 [September 19th, 2025]
- Senator Rand Paul speaks on political temperature in Washington - Eyewitness News (WEHT/WTVW) - September 19th, 2025 [September 19th, 2025]
- Rand Paul blocks Trumps nominee for State Department Middle East post - Washington Times - September 17th, 2025 [September 17th, 2025]
- New Bill: Senator Rand Paul introduces S. 2733: Duplication Scoring Act of 2025 - Quiver Quantitative - September 17th, 2025 [September 17th, 2025]
- Dr. Rand Paul Introduces Six Penny Plan to Balance the Federal Budget in Five Years - Senator Rand Paul (.gov) - September 17th, 2025 [September 17th, 2025]
- Sen. Rand Paul on a variety of issues affecting Kentucky and the country - Spectrum News 1 - September 13th, 2025 [September 13th, 2025]
- Fauci told email recipients to delete them after reading: Rand Paul - NewsNation - September 11th, 2025 [September 11th, 2025]
- Gerth: Rand Paul opposition to military action may show Trump fever is breaking | Opinion - The Courier-Journal - September 11th, 2025 [September 11th, 2025]
- Rand Paul Forced to Explain to JD Vance That Abitrary Killing Is Bad - The New Republic - September 11th, 2025 [September 11th, 2025]
- Rand Paul is the chair of the Senate Homeland Security Committee - Spectrum News - September 11th, 2025 [September 11th, 2025]
- Rand Paul has been serving as junior United States senator from Ky since 2011 - Spectrum News - September 11th, 2025 [September 11th, 2025]
- Rand Paul splits from GOP as US Senate votes down forcing release of Epstein files - somerset-kentucky.com - September 11th, 2025 [September 11th, 2025]
- SEN RAND PAUL: The GOP once knew how to fix the deficit now theyre losing the battle - Fox News - September 11th, 2025 [September 11th, 2025]
- The government has been misleading us for years, argues Sen. Rand Paul - Fox News - September 11th, 2025 [September 11th, 2025]
- Fauci ordered deletion of emails relevant to COVID-19 origins, Rand Paul alleges - Washington Examiner - September 11th, 2025 [September 11th, 2025]
- Rand Paul Calls Out JD 'I Don't Give A Sh*t' Vance For Bombing Stance - Yahoo News New Zealand - September 11th, 2025 [September 11th, 2025]
- Rand Paul rips JD Vance's assertion that executing cartel members is the 'best use of our military' - Fox News - September 9th, 2025 [September 9th, 2025]
- Vance post on boat strike really ticked me off, Rand Paul says - Politico - September 9th, 2025 [September 9th, 2025]
- Rand Paul clashes with JD Vance over US strike on boat leaving Venezuela - Politico - September 9th, 2025 [September 9th, 2025]
- The GOPs Elizabeth Warren: Vance happy to feud with Rand Paul - Politico - September 9th, 2025 [September 9th, 2025]
- Rand Paul speaks the truth - Forward Kentucky - September 9th, 2025 [September 9th, 2025]
- Senator Rand Paul warns tariff price increases are coming soon - LEX18 - September 6th, 2025 [September 6th, 2025]
- Former CDC official calls Sen. Rand Paul a bigoted bully in response to criticism - CNN - September 6th, 2025 [September 6th, 2025]
- Rand Paul Slams Trump For Unilateral Strike On Suspected Drug Vessel: 'Where Does It End?' - HuffPost - September 5th, 2025 [September 5th, 2025]
- Rand Paul called out after saying gay CDC officials lifestyle disqualified him from government - The Independent - September 3rd, 2025 [September 3rd, 2025]
- Homophobe Rand Paul says gay CDC official's 'lifestyle' made him unfit to be in government - Advocate.com - September 3rd, 2025 [September 3rd, 2025]
- Rand Paul called out after saying gay CDC officials lifestyle disqualified him from government - inkl - September 3rd, 2025 [September 3rd, 2025]
- Why Rand Paul says Kentucky bourbon business will continue to suffer with 'triple whammy' - The Courier-Journal - August 27th, 2025 [August 27th, 2025]
- Rand Paul will be Kentucky's next senior senator. What that means for the commonwealth - The Courier-Journal - August 27th, 2025 [August 27th, 2025]
- Rand Paul sounds alarm over Trump Admin buying 10% Intel stake | RISING - The Hill - August 26th, 2025 [August 26th, 2025]
- Article | Rand Paul disses Trumps plan for a government stake in Intel - POLITICO Pro - August 26th, 2025 [August 26th, 2025]
- Rand Paul will be Kentucky's next senior senator. What that means for the commonwealth - thegleaner.com - August 26th, 2025 [August 26th, 2025]
- Net Worth Update: Senator Rand Paul Made an Estimated $385.0K in the Stock Market Last Month - Quiver Quantitative - August 24th, 2025 [August 24th, 2025]
- Rand Paul Is Working To 'Reach A Compromise' On Hemp THC Product Laws With McConnell And House Lawmakers - Marijuana Moment - August 9th, 2025 [August 9th, 2025]
- Rand Paul warns against retaliatory tariffs: 'It's fighting words when you come after Kentucky bourbon' - Fox Business - August 7th, 2025 [August 7th, 2025]
- Rand Paul says we 'aren't going to know' the motive of Trump's would-be assassin - AOL.com - August 3rd, 2025 [August 3rd, 2025]
- Sen. Rand Paul discusses the prospect of abolishing the Federal Reserve - Fox News - August 1st, 2025 [August 1st, 2025]
- 'Absolutely insane': Rand Paul raises alarm by 'casually' suggesting Trump third term - rawstory.com - August 1st, 2025 [August 1st, 2025]
- Rand Paul lost to Trump's bill, but still came out on top for July | Opinion - The Courier-Journal - August 1st, 2025 [August 1st, 2025]