Minnesota's THC industry could be on the brink of collapsing due to the U.S. Senate's proposal to keep the federal government open.
The bill includes language to ban hemp-derived THC products containing more than 0.4 milligrams of THC. That number is well below what's legal in Minnesota and a number of other states that have legalized the product.
Minneapolis' Surly Brewing CEO Omar Ansari told WCCO Radio's Jason DeRusha that the way it works in Minnesota is the way it should work nationally.
"The way it's regulated here, the way it's taxed, the way it's age-gated, milligram caps, like that works, that can work federally too," says Ansari. "So, you know, we all want this regulated and make sure it's in the hands of the right people at the right time."
The federal ban wouldn't go into effect for another year if the bill passes.
"These products are for 21-plus, and they should probably be sold in places like liquor stores that are regulating those things," Ansari adds. "And that to me is the answer. Not to destroy the whole industry, because there are a lot of jobs."
Senators, including the Republican Majority Leader in 2018, Mitch McConnell of Kentucky, fought for the legalization of hemp in the 2018 Farm Bill but since that time, some Republicans have bemoaned a so-called loophole in the bill that allowed for the creation of hemp-derived intoxicating substances.
If it passes, industry groups said the nearly $30 billion legal hemp market will disappear. That number is close to $200 million in Minnesota.
State law allows Minnesota edibles to contain up to 5 milligrams of THC, while beverages and contain up to 10 milligrams of THC. Those numbers are similar to other states but there's no standard across the U.S. - and it still is not a legalized product as far as the federal government is concerned, and is largely unregulated.
39 states attorneys general, including Minnesota's Keith Ellison, have signed a letter urging Congress to enact the change, and stop "unregulated, cross-state internet sales of cannabis."