Wisconsin’s Cannabis Conundrum: A Looming Shift in Hemp Regulation
As one navigates the streets of Wisconsin, the prevalence of shops offering THC and CBD products might suggest that marijuana is legal in the state. These storefronts, along with assorted vapes, gummies, drinks, and creams, have thrived due to a federal loophole that may soon close.
The 2018 agricultural policy adjustment, which excluded hemp from the controlled substances list, allowed the proliferation of products containing THC, provided they were hemp-derived and contained no more than 0.3% delta-9 THC by dry weight. However, this landscape is set to change following a recent legislative move.
With a recent decision by President Donald Trump, a provision in a bill aimed at ending the federal shutdown will impose a ban on hemp products exceeding 0.4mg of THC. This change, impacting a $28 billion industry as noted by a hemp advocacy group, is slated to take effect in one year. Learn more about the industry value.
Concerns have surfaced within Wisconsin’s hemp industry, yet Robert Mikos, a drug law and policy expert from Vanderbilt University, advises caution against undue pessimism. “I think there is a lot of doom and gloom that’s unwarranted at this point,” Mikos stated. “Because really … when it comes to policy governing cannabis — whether it’s marijuana or hemp — it’s really the states calling the shots.”
Mikos points out that federal authorities lack the resources to target the extensive network involved in THC product manufacturing and distribution. Thus, the responsibility is anticipated to shift to state governments. In Wisconsin, hemp has been defined similarly to federal guidelines until now, leaving little room for state enforcement.
The legislative focus in Wisconsin is turning towards regulation. As the U.S. House discussed the shutdown bill including the hemp products ban, the Assembly Committee on State Affairs deliberated on a bipartisan proposal proposing a regulatory framework for the industry. This proposal includes testing and certification of hemp-derived products, akin to alcohol regulations, and introduces purchase age limits, licensing requirements, and packaging standards.
Meanwhile, a separate GOP initiative seeks to redefine hemp in alignment with new federal restrictions, though it may face a veto from Democratic Governor Tony Evers.
Despite the impending federal changes, Mikos suggests a crackdown is unlikely given the current political and legal climate, even as the ban becomes effective in less than a year. However, small enterprises might encounter shifts in federal tax and licensing requirements.
“But the companies that are making this stuff and selling it, they can rest assured that, ‘Hey, there’s a one-in-a-million chance that anybody’s gonna come here and arrest us,’” Mikos remarked.
