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HR 10079

Beverage Regulatory Parity Act

119th Congress Introduced by Greg Landsman and 1 co-sponsor

Creates a federal three-tier regulatory and tax framework for hemp-derived beverages with labeling, safety, age limits, and interstate compliance.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 10079

Summary of HR 10079 — Beverage Regulatory Parity Act

  • Purpose and intent

    • Establishes a federal framework to regulate hemp-derived beverages, creating a parity system with existing beverage regulation. The bill assigns regulatory authority and sets standards across a three-tier distribution system, labeling, testing, and penalties to govern hemp-derived beverages from manufacture to sale.

  • Key provisions and changes

    • Regulation of hemp by the Secretary of Agriculture (Section 2)
    • Per-container limits for intoxicating cannabinoids in hemp products would not apply to hemp-derived beverages if the product follows serving requirements for intoxicating THC under a separate section.
    • Allows intermediate hemp-derived cannabinoid products to temporarily exceed usual THC concentration limits during ordinary manufacturing, under strict conditions (manufacture/use for final hemp beverage, permit compliance, restricted marketing/sale, no consumer use, and up to 20% total THC by weight).
    • Defines terms related to hemp amendments and applicability.
    • Regulation of hemp-derived beverages by the Secretary of Health and Human Services (Section 3)
    • Hemp-derived beverages are treated as food under the Federal Food, Drug, and Cosmetic Act, with recalls authority for adulterated products.
    • Naturally-occurring cannabinoids in hemp beverages are not drugs/biologicals if they comply with section 4(l) limits.
    • Adds new adulteration and misbranding provisions focusing on THC content, added non-natural cannabinoids, and compliance labeling.
    • Regulation by the Administrator of the Treasury (Section 4)
    • Establishes a three-tier distribution system:
      • Tier 1: Manufacturers may sell to wholesalers only (not directly to retailers).
      • Tier 2: Wholesalers may buy from manufacturers and sell to retailers or trade buyers.
      • Tier 3: Retailers may purchase only from wholesalers.
    • Requires permits to operate within the three-tier system; manufacturers must be certified for cannabinoid content, contaminants, sourcing, testing, and inspections.
    • Prohibits cross-tier ownership and requires separation of interests across tiers.
    • Labeling requirements: standardized labeling, identification of intoxicating cannabinoids, serving sizes, consumer warnings (age 21+, effects on driving, potential drug tests), and consistency with alcohol regulation.
    • Advertising restrictions to prevent misleading claims and to limit promotion of intermediate cannabinoid products; ensures alignment with alcohol advertising standards.
    • Penalties: misdemeanors with fines up to $1,000 per violation, with retailers treated as separate violations.
    • State and local authority: allows states to enforce stricter rules; protects interstate shipment if recipient state permits.
    • Taxation (Section 5)
    • Imposes a tax under Subtitle E of the Internal Revenue Code: 8 cents per milligram of intoxicating THC in a hemp-derived beverage.
    • Tax attaches at the time of removal from the manufacturer’s premises for sale or consumption.
    • Other provisions
    • Reports: annual implementation reports to Congress; a DHHS/agency-commissioned report within one year on testing, impairment measurement, serving sizes, and delta-9 THC content.
    • Definitions: clarifies terms such as hemp, hemp-derived beverage, naturally-occurring vs synthetic cannabinoids, serving size (12 oz for single-use; 750 ml total for multi-serving containers), and trace amounts.
    • Severability: if any provision is invalid, the rest remains in effect.

  • Who would be affected

    • Manufacturers, wholesalers, and retailers of hemp-derived beverages, who would need permits and must comply with testing, labeling, and distribution rules.
    • The Tax and Trade Bureau (Treasury) would administer permits and the three-tier system; FDA/HHs would regulate safety, labeling, and recall processes; and a cross-agency collaboration would guide enforcement.
    • States and localities retain authority to impose stricter rules or different age limits (with federal baseline protections for interstate commerce).

  • Timelines and enforcement

    • Effective dates align with the Act’s enactment; various provisions call for regular reporting within one year of enactment.
    • Penalties and enforcement milestones are defined, with potential cross-state regulatory cooperation and recall mechanisms.

Overall, HR 10079 creates a federal, three-tier regulatory and tax framework for hemp-derived beverages, emphasizing standardization, labeling clarity, age restrictions, and consumer safety while preserving state flexibility.

Compiled from official sources — confirm details with the bill’s official record.

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