Zinger Key Points
- The Beer Institute calls for strong regulation and safety measures for intoxicating hemp and cannabis products.
- They recommend the tax rate to be set 'higher than the highest' applied to any alcoholic beverage product.
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On November 12, 2024, the Beer Institute introduced a detailed set of guiding principles to regulate psychoactive hemp and cannabis products.
“The beer industry believes that the decision to legalize these products should be made by American voters, state legislatures, and federal policymakers.” reads the statement from the beer industry’s oldest trade organization.
The trade group came out with some hard rules. Let’s find out where they stand on the ongoing national debate surrounding how to regulate hemp and cannabis products, which they refer to as intoxicating.
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Differentiated Taxation
“The current patchwork of intoxicating hemp and cannabis laws and regulations do not meet the same standards to which the beer industry willingly adheres,” noted Brian Crawford, president and CEO of the Beer Institute.
However, the trade group does not advocate for equal taxes. They are recommending the tax rate be set “higher than the highest rate” applied to any alcoholic beverage product, arguing that hemp and cannabis products should be taxed differently, recognizing their differences from beer and other alcoholic beverages.
The institute also calls for the establishment of appropriate oversight to ensure the safe consumption of intoxicating hemp and cannabis products.
This includes regulations to ensure consumer safety and awareness, with agencies properly resourced and staffed to oversee the industry effectively.
Cannabis-Infused Beverages
The Beer Institute also supports prohibiting the co-location of alcohol and intoxicating hemp and cannabis sales in the same retail outlets, which is already happening in states like New Jersey. It further advocates that these products should only be sold in licensed dispensaries to reduce consumer confusion.
Read Also: Research Finds No Clear Correlation Between Blood THC And Driving Skills
A Public Health Issue
The Beer Institute stresses the importance of responsibility in the cannabis market, calling for a "zero tolerance approach" to THC-impaired driving.
Until effective roadside testing equipment and clear guidelines for safe consumption are available, the Institute urges law enforcement to prioritize public safety. Although, there’s little evidence supporting a direct correlation between blood THC levels and driving performance.
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The Institute also supports prohibitions on public consumption of intoxicating hemp and cannabis products, similar to existing tobacco restrictions. This includes requiring potency testing and clear warning labels on cannabis products, alongside ensuring that packaging and advertising do not primarily target those under 21.
Further, the Institute supports continuing the federal prohibition against combining alcohol with intoxicating hemp and cannabis products.
Finally, the trade group advocates for immediate and sustained research into the medical and safety aspects of intoxicating hemp and cannabis products, particularly in beverages.
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