Regulation of hemp-derived beverages by Administrator of Tax and Trade Bureau

(a)

In general

Hemp-derived beverages shall be regulated under this section by the Secretary of the Treasury, acting through the Administrator, in consultation with the Secretary of Health and Human Services and the Commissioner of Food and Drugs. (b)

Three-Tiered distribution system

The Administrator shall prescribe regulations to establish and implement a three-tiered distribution system for hemp-derived beverages as follows: (1)

Tier 1: Manufacturers

A manufacturer of hemp-derived beverages, subject to the issuance of a permit under subsection (c), may sell or transfer such beverages to a wholesaler of hemp-derived beverages, but not to a retailer of hemp-derived beverages. (2)

Tier 2: Wholesalers

A wholesaler of hemp-derived beverages, subject to the issuance of a permit under subsection (c), may only— (A) purchase such beverages from a manufacturer of hemp-derived beverages, and (B) sell or transfer such beverages to a retailer or trade buyer of hemp-derived beverages. (3)

Tier 3: Retailers

A retailer of hemp-derived beverages may purchase such beverages from a wholesaler of hemp-derived beverages, but not from a manufacturer of hemp-derived beverages. (c)

Permits

(1)

In general

For purposes of the three-tiered distribution system under subsection (b), the Administrator shall issue such regulations or other guidance for hemp-derived beverages (which are consistent with the regulations and guidance issued under section 104 of the Federal Alcohol Administration Act (27 U.S.C. 204)) as may be necessary or appropriate to issue, suspend, and revoke permits. (2)

Special rules

(A)

Manufacturers

No manufacturer may be issued a permit under this section unless such person is certified by the Administrator (at such time and in such manner as the Administrator determines appropriate) to be in compliance with such hemp-derived beverage cannabinoid content, contaminant, key component, sourcing, uniform manufacturing and testing, laboratory sample submission, record retention, and facility inspection requirements as the Administrator, in consultation with relevant agencies determined by the Administrator, shall prescribe. (B)

Involvement in different tiers simultaneously

No person may hold permits as both a manufacturer of hemp-derived beverages and as a wholesaler of hemp-derived beverages, and no person may hold any interest, directly or indirectly, in more than one tier with respect to the three-tiered distribution system under subsection (b). (d)

Labeling

(1)

In general

It shall be unlawful for any person to— (A)introduce or deliver for introduction, into interstate commerce, any hemp-derived beverage that does not conform to such packaging, marking, branding, labeling, and size and fill requirements as are prescribed by the Administrator, or (B)alter, mutilate, destroy, obliterate, or remove any mark, brand, or label upon any hemp-derived beverage that is held for sale in interstate or foreign commerce or after shipment therein, except as authorized by Federal law or except pursuant to regulations authorizing relabeling for purposes of compliance with the requirements of this Act or of State law. (2)

Specific labeling requirements

In prescribing the requirements described in paragraph (1)(A), the Administrator shall ensure that such requirements— (A)prohibit statements, marks, graphics, or other images which are deceptive, false, misleading, obscene, indecent, disparaging of a competitor’s product, or designed to target or appeal to children, (B) provide consumers with information with respect to the identity, quality, naturally-occurring cannabinoid content, net contents, manufacturer, and country of origin of any hemp-derived beverage, (C) create uniform labeling panels, identifying symbols, or marks that identify hemp-derived beverages that contain intoxicating tetrahydrocannabinol as containing intoxicating naturally-occurring cannabinoids, and (D)provide conspicuous notice— (i) of the number of servings and milligrams of each naturally-occurring cannabinoid within any hemp-derived beverage, (ii)of the known risks to special populations (including children, those who are pregnant, and those prescribed medications) of consuming hemp-derived beverages, (iii)of the impact of hemp-derived beverages on an individual’s faculties (including the operation of machinery and automobiles), (iv)of directions for use, including— (I)the recommended manner and rate of consumption of hemp-derived beverages, and (II)the expected period of time before the onset of any effects following consumption of hemp-derived beverages, (v)of the requirement to be 21 years of age or older to possess, consume, or purchase hemp-derived beverages, and (vi)that the consumption of hemp-derived beverages may cause a consumer to fail a drug test for marijuana. (3)

Consistency with Federal Alcohol Administration Act

The requirements prescribed under paragraph (1)(A) shall be consistent with those prescribed with respect to distilled spirits, wine, or malt beverages under section 105(e) of the Federal Alcohol Administration Act (27 U.S.C. 205(e)). (e)

Advertising

(1)

In general

It shall be unlawful for any person to publish or disseminate by any means (including by mail, radio broadcast, newspaper, television or streaming content, website sponsorship content, social media, indoor or outdoor signage, or other printed or graphic materials) any advertisement with respect to any hemp-derived beverage— (A)in violation of such requirements as the Administrator shall prescribe, and (B)which is an intermediate hemp-derived cannabinoid product (as defined in paragraph (3)(B) of section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o), as proposed to be amended by the hemp amendments (as defined in section 2(c))). (2)

Limitation

The requirements prescribed under paragraph (1)(A) shall not be more restrictive than those prescribed with respect to distilled spirits, wine, or malt beverages under section 105(f) of the Federal Alcohol Administration Act (27 U.S.C. 205(f)). (f)

Penalties

Any person who violates any requirement described in subsection (c), (d), or (e) or under chapter IV of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341 et seq.), shall be guilty of a misdemeanor and upon conviction thereof be fined $1,000 for each offense. For purposes of the preceding sentence, in the case of any retailer of hemp-derived beverages, each hemp-derived beverage sold in violation of any such requirement shall be treated as a separate violation. (g)

Unfair competition and unlawful practices

(1)

In general

Except as otherwise provided by the Administrator, a manufacturer or wholesaler of any hemp-derived beverage shall be subject to the provisions of subsections (a) through (d) of section 105 of the Federal Alcohol Administration Act (27 U.S.C. 205). For purposes of the preceding sentence— (A)such subsections shall apply to transactions between a retailer or trade buyer in any State and a manufacturer or wholesaler of hemp-derived beverages outside such State only to the extent that the law of such State imposes similar requirements with respect to similar transactions between a retailer or trade buyer in such State and a manufacturer or wholesaler of hemp-derived beverages in such State, as the case may be, and (B)subsections (a) through (c) of such Act shall not apply to any agency of a State or political subdivision thereof, or to any officer or employee of such agency. (2)

Minimum age of sale

It shall be unlawful for any retailer to sell any hemp-derived beverage to any person younger than 21 years of age. (3)

Penalties

Any person who violates any of the provisions described in paragraph (1) or (2)— (A)shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than $1,000 for all violations adjudicated in a single proceeding, and (B)shall forfeit to the United States all hemp-derived beverages with respect to which the violation occurs. (h)

Unlawful purchase

It shall be unlawful for any person younger than 21 years of age to purchase, possess, or consume any hemp-derived beverage. (i)

State and local authorities

(1)

In general

The shipment, transportation, or importation into any State, political subdivision thereof, or territory of an Indian Tribe, for delivery or use therein of any hemp-derived beverage, in violation of the laws thereof, is hereby prohibited. Nothing in this Act shall be construed to preempt, displace, or limit the authority of any State, political subdivision thereof, or Indian Tribe to enact and enforce laws and regulations governing the production, manufacture, importation, distribution, sale, possession, transportation, or consumption of hemp-derived beverages within its jurisdiction, including laws that are more stringent than, equivalent to, or that prohibit altogether the activities permitted under this Act. (2)

Legal receipt

The shipment or transportation of any hemp-derived beverage to a final destination in a State, political subdivision thereof, or territory of an Indian Tribe is permissible, provided the receipt, possession, sale, or use of such beverage is authorized in such State, political subdivision thereof, or territory of the Indian Tribe. (3)

Legal transshipment

Notwithstanding paragraph (1), no State, political subdivision thereof, or Indian Tribe shall prohibit the transportation or shipment of any hemp-derived beverages through such State, political subdivision thereof, or Indian Tribe’s territory, if the point of origin of, and final destination for, the hemp-derived beverages are outside of such State, political subdivision thereof, or territory of the Indian Tribe. (4)

Savings clauses

(A)

Advertising and warnings

Nothing in this subsection shall preempt any State, political subdivision thereof, or Indian Tribe requirement regarding advertising, marketing, point-of-sale display, or consumer labeling that is more restrictive than this Act, unless the product being advertised is prohibited or unlawful in such jurisdiction. (B)

Product liability

Nothing in this Act shall be construed to modify or otherwise affect any action or the liability of any person under the product liability or consumer-protection law of any State. (j)

Reporting requirements

(1)

Congress

(A)

In general

Not later than one year following the date of the enactment of this Act, and annually thereafter, the Administrator shall submit to the appropriate Congressional committees a report on the implementation, and recommendations for the improvement, of this Act. (B)

Appropriate Congressional committees

For purposes of subparagraph (A), the term appropriate Congressional committees means— (i)the Committees on Ways and Means and Energy and Commerce of the House of Representatives, and (ii)the Committees on Finance, Health, Education, Labor, and Pensions, and Commerce, Science, and Transportation of the Senate. (2)

Food and Drug Administration

(A)

In general

Not later than one year following the date of the enactment of this Act, the Secretary of Health and Human Services shall commission a report by the Commissioner of Food and Drugs, in consultation with the appropriate officials, on hemp-derived beverages. (B)

Content

The report described in subparagraph (A) shall include recommendations with respect to— (i)proper testing of hemp-derived beverages, (ii)measuring and distinguishing faculty impairment due to the use of hemp-derived beverages (including with respect to the operation of a motor vehicle), and (iii)serving sizes, and the appropriate amount of delta-9 tetrahydrocannabinol contained within such serving sizes, with respect to hemp-derived beverages. (C)

Appropriate officials

For purposes of subparagraph (A), the term appropriate officials means— (i)the Administrator of the National Highway Traffic Safety Administration, (ii)the Director of the National Institutes of Health, (iii)the Director of the National Institute of Standards and Technology, and (iv)the Administrator. (k)

Regulations

The Administrator, in consultation with the Secretary of Health and Human Services and the Commissioner of Food and Drugs, shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this Act, including with respect to— (1)product tracking, and (2)adjusting serving and container sizes established under paragraphs (3) and (6) of subsection (l) based on the content of the report authorized under subsection (j)(2). (l)

Definitions

For purposes of this section— (1)

Administrator

The term Administrator means the Administrator of the Tax and Trade Bureau. (2)

Hemp

The term hemp has the meaning given such term in section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o), as amended by section 781 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agency Appropriations Act, 2026 (Public Law 119–37), except that in applying such term with respect to hemp-derived beverages, subclause (III) of section 297A(1)(C)(iv) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o(1)(C)(iv)), as so amended by such section 781, shall not apply. (3)

Hemp-derived beverage

The term hemp-derived beverage means a non-alcoholic liquid beverage intended for human consumption that— (A) contains one or more naturally-occurring cannabinoids, (B) does not contain any naturally-occurring cannabinoids extracted, sourced, or processed from hemp plants cultivated outside of the United States, (C) does not contain any synthetically-derived cannabinoids or other intoxicating molecules or compounds, or any molecules or compounds that are structurally identical or intended to mimic the effects of an intoxicating molecule or compound, (D)is a final product intended for sale to a consumer, (E)is packaged and labeled within the United States, (F)is not a tincture, isolate, powder, or distillate, (G)does not contain more than 5 milligrams of total intoxicating tetrahydrocannabinol content per serving, (H)is not intended to be consumed, labeled, or advertised as a dietary supplement (as defined in section 201(ff) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(ff))), (I) does not contain more than 5 milligrams of non-tetrahydrocannabinol naturally-occurring cannabinoids, and (J)does not contain a drug that is the subject of an application approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355) or section 351 of the Public Health Service Act (42 U.S.C. 262). (4)

Naturally-occurring cannabinoid

(A)

In general

The term naturally-occurring cannabinoid means, with respect to a hemp-derived beverage, a cannabinoid from hemp that is— (i) delta–9 tetrahydrocannabinol, provided it is not synthetically-derived, (ii)cannabidiol, (iii)cannabigerol, or (iv)any other related molecule that the Administrator, in consultation with the Secretary of Health and Human Services, determines to meet the criteria to be established under paragraph (2) to be considered hemp. (B)

Inclusions

Such term includes cannabinoids listed under section 781(3) of the Agriculture, Rural Development, Food and Drug Administration, and Related Agency Appropriations Act, 2026 (Public Law 119–37). (C)

Exclusion

Such term does not include marijuana (as defined in section 102(16) of the Controlled Substances Act (21 U.S.C. 802(16))). (5)

Synthetically-derived cannabinoid

(A)

In general

The term synthetically-derived cannabinoid means a cannabinoid that is— (i) not naturally produced by a Cannabis sativa L. plant, (ii) capable of being naturally produced by a Cannabis sativa L. plant, but was synthesized, manufactured, chemically converted, isomerized, or otherwise produced outside the living plant through human intervention, including processes involving solvents, catalysts, or laboratory equipment, or (iii) produced via total synthesis from non-Cannabis sativa L. starting materials regardless of whether the starting materials were derived from a Cannabis sativa L. plant or any other plant. (B)

Exclusions

A cannabinoid shall not be considered a synthetically-derived cannabinoid under subparagraph (A) on the sole basis that the cannabinoid was produced using routine extraction, decarboxylation, filtration, distillation for purification, winterization, and other standard purification processes. (6)

Serving

The term serving means, with respect to a hemp-derived beverage— (A)in the case of a single-use container of such beverage, 12 fluid ounces, and (B)in the case of a multiple-serving container of such beverage, the total volume of which equals 750 milliliters, 1.5 fluid ounces. (7)

Manufacturer

The term manufacturer means any person who manufactures hemp-derived beverages. (8)

Manufacture

The term manufacture means, with respect to hemp-derived beverages, to produce, create, blend, infuse, emulsify, bottle, package, or otherwise engage in the process of the creation of such hemp-derived beverages. (9)

Wholesaler

The term wholesaler means any person who distributes hemp-derived beverages. (10)

Distribute

The term distribute means, with respect to hemp-derived beverages, to purchase such hemp-derived beverages for resale at wholesale, or to receive, sell, offer or deliver for sale, contract to sell, or ship in interstate commerce, directly or indirectly or through an affiliate, such hemp-derived beverages so purchased. (11)

Retailer

The term retailer means any person engaged in the sale of hemp-derived beverages to consumers. (12)

Product tracking

The term product tracking means, with respect to hemp-derived beverages, tracking the supply chain from the cultivation of the naturally-occurring cannabinoid to the final product intended for sale. (13)

Trade buyer

The term trade buyer means any person who is a wholesaler or retailer. (14)

Trace amount

The term trace amount means, with respect to hemp-derived beverages, an amount that— (A)is not intentionally added by the manufacturer, (B) is not synthetically-derived, (C)is incidental to the manufacturing of such beverage, and (D)does not affect such beverage’s tetrahydrocannabinol potency or intoxicating effect on the consumer.