Lawful Hemp Protection Act
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Cosponsors (1)
Members who have signed on to support this bill since introduction. Source: Congress.gov.
Latest Action
The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Agriculture, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2026-07-22
Source: Congress.gov
Committee Activity
Currently in
- House Committee on Transportation and InfrastructureReferred To · 2026-07-22
- House Committee on Energy and CommerceReferred To · 2026-07-22
- House Committee on AgricultureReferred To · 2026-07-22
- House Committee on Ways and MeansReferred To · 2026-07-22
Plain-English Summary
The legislation would allow the legal sale of hemp products while cracking down on synthetic THC products that produce intoxicating effects similar to marijuana, protecting consumers from potentially dangerous high-potency substances. The bill affects hemp farmers and businesses that sell hemp products, as well as consumers who use these products, by establishing clearer rules about what can and cannot be sold in the marketplace. Multiple congressional committees are reviewing the proposal to determine how it fits within their areas of responsibility.
AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.
Full Bill Text
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[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 9830 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 9830 To preserve lawful hemp commerce while protecting consumers from high- THC synthetic intoxicants, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES July 22, 2026 Mr. Barr (for himself and Ms. Craig) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Agriculture, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To preserve lawful hemp commerce while protecting consumers from high- THC synthetic intoxicants, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Lawful Hemp Protection Act''. SEC. 2. FINDINGS. Congress finds the following: (1) Protecting minors and preventing children's access to hemp products is central to the public interest and to the long-term credibility of the hemp industry. Strong age-control measures are necessary to prevent misuse and safeguard public health. (2) Many Americans, including veterans and seniors, rely on consumer hemp products for wellness. Ensuring that such products are consistently manufactured, accurately labeled, and domestically sourced is essential to maintaining public trust and protecting consumers. (3) Clear provenance standards and the elimination of deceptive or look-alike products promote responsible industry growth, protect consumers, and reinforce confidence in lawful hemp commerce. SEC. 3. DEFINITION OF HEMP. (a) In General.--Section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o) is amended-- (1) by redesignating paragraphs (2) through (6) as paragraphs (4) through (8), respectively; and (2) by striking paragraph (1) and inserting the following: ``(1) Hemp.-- ``(A) In general.--The term `hemp' means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all naturally occurring derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total tetrahydrocannabinol concentration (including tetrahydrocannabinol acid) of not more than 1 percent on a dry weight basis. ``(B) Inclusion.--Such term includes industrial hemp. ``(C) Exclusions.--Such term does not include-- ``(i) any viable seed from a Cannabis sativa L. plant where the seed exceeds a total tetrahydrocannabinol concentration (including tetrahydrocannabinol acid) of more than 1 percent on a dry weight basis; ``(ii) any intermediate hemp-derived cannabinoid product containing-- ``(I) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant; or ``(II) cannabinoids that are capable of being naturally produced by a Cannabis sativa L. plant and-- ``(aa) are produced, manufactured, or converted using chemical synthesis, hydrogenation, acetylation, alkylation, or any other artificial process that adds to, removes from, or otherwise alters the molecular structure of a cannabinoid so that it contains one or more functional groups or substituents that are not present in any naturally occurring cannabinoid constituent of Cannabis sativa L., including-- ``(AA) hexahydrocannabinol (HHC); ``(BB) tetrahydrocannabinol acetate (THC-O- acetate); ``(CC) tetrahydrocannabiphorol (THCP); and ``(DD) any other artificially modified analog or homologue of a naturally occurring cannabinoid, as determined by the Secretary in consultation with the Secretary of Health and Human Services; or ``(bb) are produced, manufactured, or converted using any solvent, extraction method, or other means of production determined by the Secretary, in consultation with the Secretary of Health and Human Services, to pose a risk to the public health; ``(iii) any intermediate hemp-derived cannabinoid product…
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marketed or sold as a final product or directly to an end consumer for personal or household use; and ``(iv) any final hemp-derived cannabinoid products containing-- ``(I) cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant; or ``(II) cannabinoids that are capable of being naturally produced by a Cannabis sativa L. plant and-- ``(aa) are produced, manufactured, or converted using chemical synthesis, hydrogenation, acetylation, alkylation, or any other artificial process that adds to, removes from, or otherwise alters the molecular structure of a cannabinoid so that it contains one or more functional groups or substituents that are not present in any naturally occurring cannabinoid constituent of Cannabis sativa L., including-- ``(AA) hexahydrocannabinol (HHC); ``(BB) tetrahydrocannabinol acetate (THC-O- acetate); ``(CC) tetrahydrocannabiphorol (THCP); and ``(DD) any other artificially modified analog or homologue of a naturally occurring cannabinoid, as determined by the Secretary, in consultation with the Secretary of Health and Human Services; or ``(bb) are produced or manufactured using any solvent, extraction method, or other means of production determined by the Secretary, in consultation with the Secretary of Health and Human Services, to pose a risk to the public health. ``(2) Industrial hemp.--The term `industrial hemp' means hemp-- ``(A) grown for the use of the stalk of the plant, fiber produced from such a stalk, or any other non- cannabinoid derivative, mixture, preparation, or manufacture of such a stalk; ``(B) grown for the use of the whole grain, oil, cake, nut, hull, or any other non-cannabinoid compound, derivative, mixture, preparation, or manufacture of the seeds of such plant; ``(C) grown for purposes of producing microgreens or other edible hemp leaf products intended for human consumption that are derived from an immature hemp plant that is grown from seeds that do not exceed the threshold for total tetrahydrocannabinol concentration specified in paragraph (1)(C)(i); ``(D) that is a plant that does not enter the stream of commerce and is intended to support hemp research at an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) or an independent research institute; ``(E) grown for the use of a viable seed of the plant produced solely for the production or manufacture of any material described in subparagraphs (A) through (D); or ``(F) grown for the use of the whole plant, or any part thereof, for the extraction, production, or manufacture of any non-intoxicating non-cannabinoid essential oil, aromatic compound, terpene, or other non-intoxicating non-cannabinoid volatile organic compound derived from such plant. ``(3) Unfinished hemp-cannabinoid ingredient.--The term `unfinished hemp-cannabinoid ingredient' means an oil, extract, concentrate, distillate, or other intermediate substance that-- ``(A) that meets the criteria specified in paragraph (1) to be considered hemp, except that such ingredient may contain concentrations of total tetrayhdrocannabinol exceeding 1 percent during processing, provided that the material-- ``(i) remains exclusively with actors or entities licensed or otherwise lawfully permitted to manufacture, transport, or store the material under the Lawful Hemp Protection Act; and ``(ii) is not offered for retail sale; ``(B) is not for consumer use; ``(C) is not a finished hemp product; and ``(D) is produced solely for incorporation into a finished cannabinoid product through further processing.''. (b) Conforming Repeal.--Section 781 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agency Appropriations Act, 2026 (division B of Public Law 119-37) is repealed. SEC. 4. FDA OVERSIGHT AND MILLIGRAM LIMITATIONS. (a) Definitions.--Section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321) is amended-- (1) in paragraph (g)(1), by adding at the end the following: ``Such term does not include a hemp-derived cannabinoid product.''; (2) in paragraph (s), in the matter preceding subparagraph (1), by striking ``food (including any substance'' and inserting ``food (including industrial hemp intended for human or animal use and hemp seed, hemp seed oil, or hempseed protein not containing cannabinoids, any substance''; and (3) by adding at the end the following: ``(tt)(1) The term `hemp-derived cannabinoid product'-- ``(A) means any finished product for human or animal use that-- ``(i) that meets the criteria specified in paragraph (1) to be considered hemp; and ``(ii) contains one or more cannabinoids; ``(B) includes a hemp-derived cannabinoid dietary supplement; ``(C) includes, in cases that the Secretary determines appropriate, an intermediate hemp-derived cannabinoid product; and ``(D) may include ingestibles, beverages, oral tinctures and sublinguals, capsules and tablets, inhalables, and topicals and transdermals. ``(2) A hemp-derived cannabinoid product shall be deemed to be a food within the meaning of this Act. ``(uu) The term `hemp-derived cannabinoid dietary supplement'-- ``(1) means a dietary supplement that-- ``(A) is derived from hemp; ``(B) contains one or more cannabinoids; and ``(C) is for ingestion in tablet, capsule, softgel, gelcap, powder, gummy, chew, lozenge, tincture, oil, spray, strip, or liquid form; ``(2) may include ingestibles, oral tinctures and sublinguals, and capsules and tablets; and ``(3) does not include-- ``(A) any product for inhalation, application to the skin, or transdermal absorption; ``(B) raw, floral hemp material, an unfinished hemp-cannabinoid ingredient, or work-in-process materials; ``(C) industrial hemp; ``(D) hemp seed, hemp seed oil, or hempseed protein not containing cannabinoids; and ``(E) a product containing any cannabinoid not found in, or capable of being produced in, the hemp plant, as identified on the lists published and updated under section 425(d). ``(vv) The terms `hemp',`industrial hemp', and `unfinished hemp- cannabinoid ingredient' have the meanings given those terms in section 297A of the Agricultural Marketing Act of 1946. ``(ww) The term `GRAS substance' means a substance that is generally recognized, among experts qualified by scientific training and experience to evaluate its safety, as having been adequately shown through scientific procedures (or, in the case of a substance used in food prior to January 1, 1958, through either scientific procedures or experience based on common use in food) to be safe under the conditions of its intended use, as described in section 201(s).''. (b) Prohibited Acts.--Section 301 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amended by adding at the end the following: ``(jjj) The introduction or delivery for introduction into interstate commerce of a hemp-derived cannabinoid product that is not derived exclusively from hemp cultivated in the United States, processed within the United States, and finished, packaged, and labeled within the United States. ``(kkk)(1) The sale of a hemp-derived cannabinoid product to any person younger than 21 years of age. ``(2) The possession or consumption of a hemp-derived cannabinoid product by any person younger than 21 years of age.''. (c) Adulteration.--Section 402 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342) is amended by adding at the end the following: ``(j) If it is a hemp-derived cannabinoid product, and-- ``(1) its cannabinoid content exceeds a maximum allowable amount established under section 425(b); ``(2) it contains a cannabinoid not included on the lists published and updated under section 425(d); ``(3) it is a cannabinoid hemp product for, or to be used in or on, food-producing animals; ``(4) it contains any added substance, such as alcohol, caffeine, tobacco, nicotine, or melatonin, which, when combined with cannbinoids, could interact with such cannabinoids or enhance or alter the effects of such cannabinoids in a manner that is harmful to the consumer, as determined by the Secretary; ``(5) it contains a food additive or a GRAS substance, which when combined with the cannabinoids in such product, could cause harm to the consumer (as determined by the Secretary); or ``(6) it has been manufactured, processed, packed, or held in any factory, warehouse, or establishment and the owner, operator, or agent of such factory, warehouse, or establishment delays, denies, or limits an inspection of, or refuses to permit entry to, or inspection of, such factory, warehouse, or establishment.''. (d) Misbranding.--Section 403 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 343) is amended by adding at the end the following: ``(z) If it is a hemp-derived cannabinoid product, and-- ``(1) its labeling does not adhere to the requirements under section 425(a); ``(2) its advertising or promotion is false or misleading in any particular; ``(3) it is in package form, unless it bears a label formatted in such manner as the Secretary may prescribe by order; ``(4) its labeling does not bear adequate directions for use, or adequate warnings against use by children, that are necessary for the protection of users, or conform to such other requirements in all respects as may be prescribed by the Secretary; ``(5) its labeling does not include a disclaimer of risks posed by the specific cannabinoid contained or purported to be contained in the product, including the risk of drug test failure; ``(6) its labeling does not include a disclaimer that the Food and Drug Administration has not determined the product to be safe or effective for treating any condition; ``(7) its labeling makes a claim regarding the product's effect (or lack thereof) on the structure or any function of the body of humans or other animals; ``(8) it is in package form for use by humans, and it contains product packaging features imitating images popularly used to advertise to children or otherwise market to anyone under 21 years of age, including-- ``(A) labeling depicting, or in the shape of, characters (real or imaginary), animals, vehicles, cartoons, candy, or fruit; and ``(B) brightly colored products and packaging; ``(9) it is in package form for use in animals, and its label and labeling do not contain prominently placed, conspicuous-- ``(A) warnings that the product should not be used by humans; and ``(B) statements that the product is for use in animals, including any such statements specifying the intended species; ``(10) it was manufactured, processed, packed, labeled, or held by or in an establishment that has not been issued a permit under section 5902A of the Internal Revenue Code of 1986; ``(11) it does not adhere to the uniform manufacturing and testing requirements established under section 425(c) or there was a failure or refusal to provide access to any records as required under chapter 56 of the Internal Revenue Code of 1986; or ``(12) it is not in compliance with such formatting requirements as the Secretary may specify (such as a requirement for the use of standard and uniform labeling and an identifying symbol) with respect to any word, statement, or other information the Secretary requires to appear on the label or labeling of the product.''. (e) Hemp-Derived Cannabinoid Products.--Chapter IV of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341 et seq.) is amended by adding at the end the following: ``SEC. 425. HEMP-DERIVED CANNABINOID PRODUCTS. ``(a) Labeling Requirements.--A hemp-derived cannabinoid product shall be considered misbranded within the meaning of section 403(z) unless such labeling meets the following requirements: ``(1) Its principal display panel displays, in a font size not smaller than 8 points, the statement `Contains __ mg THC per serving and __ mg THC per package. For users 21+ only.', where the blanks shall be filled in with the applicable quantity of THC in milligrams per serving and per package, respectively. ``(2)(A) Its principal display panel bears a warning statement concerning the effects of consuming hemp-derived cannabinoid products, including with respect to pregnancy and impaired driving. ``(B) The statement under subparagraph (A) shall-- ``(i) appear in a conspicuous and prominent location on the principal display panel; ``(ii) be printed in a font size not smaller than 6 points, or not smaller than the smallest type size used elsewhere on the label, whichever is larger; ``(iii) appear in a color that contrasts with the background on which it appears; ``(iv) include the words `GOVERNMENT WARNING' in capital letters and bold type; and ``(v) be worded in such manner as the Secretary, in consultation with the Surgeon General of the Public Health Service, determines appropriate. ``(3) If it is in package form, bears a label containing-- ``(A) a statement on the front of the product packaging indicating that the product is a cannabinoid hemp product; ``(B)(i) the serving size; and ``(ii) the number of servings per package; ``(C) the ingredients; ``(D) the content per serving and per package of any and all cannabinoids, if present above a nominal level, as determined by the Secretary; ``(E) for products for human use, a disclaimer of the presence in the product of any major food allergen, processing aid, or compound, which the Secretary may require to be disclosed; ``(F) a statement clearly specifying if the product is intended for animal use, human use, or for use by humans and animals; ``(G) a disclaimer of known risks to special populations, including children, those who are pregnant or breastfeeding, and those taking drugs known to interact with the product; ``(H) a quick response (QR) code, any other scannable mechanism, or internet address that leads to a web page with testing results for the cannabinoid hemp product in the form of a certificate of analysis; ``(I) clear instructions of use, if applicable; and ``(J) information about how to report adverse events resulting from use of the product. ``(b) Maximum Cannabinoid Content.-- ``(1) Establishment.--Not later than 12 months after the date of enactment of this section, the Secretary shall establish, with respect to any hemp-derived cannabinoid product-- ``(A) a maximum allowable amount of total cannabinoid content for such product and each serving of such product; and ``(B) for each cannabinoid present in such a product, a maximum allowable amount of such cannabinoid for such product and each serving of such product. ``(2) Frequency of review.--The Secretary shall review and, as appropriate, revise the maximum allowable amounts under paragraph (1) not less frequently than-- ``(A) once every 3 years; or ``(B) as soon as scientific evidence warrants reconsideration. ``(3) Rulemaking.--The Secretary shall establish and revise the maximum allowable amounts under paragraph (1) through a notice-and-comment rulemaking process that is informed by-- ``(A) peer-reviewed scientific research on the safety and physiological effects of individual cannabinoids; ``(B) consumer usage data and adverse event reports; ``(C) input from qualified medical and scientific experts; ``(D) consultation with State regulatory authorities with experience overseeing hemp or cannabis markets; and ``(E) consideration of product form, intended use, and target consumer population. ``(4) Failure to timely establish maximum allowable amounts.--In the case that the Secretary fails to establish the maximum allowable amounts under paragraph (1) within the 12- month period described in such paragraph, until such time that the Secretary establishes alternative amounts, the following maximum allowable amounts for total tetrahydrocannabinol content shall apply: ``(A) With respect to a hemp-derived cannabinoid product for oral consumption, 5 milligrams per serving. ``(B) With respect to an inhalable hemp-derived cannabinoid product, 50 milligrams per serving. ``(C) With respect to a topical hemp-derived cannabinoid product, 50 milligrams per serving. ``(c) Manufacture and Testing.-- ``(1) Establishment.--The Secretary shall establish such uniform manufacturing and testing requirements for hemp-derived cannabinoid products (including intermediate hemp-derived cannabinoid products) as the Secretary determines to be necessary. Such requirements shall include the following: ``(A) Manufacturing and testing requirements for key components, potential contaminants, and cannabinoid content. ``(B) A requirement that each such product be tested by a laboratory accredited to ISO/IEC 17025-- ``(i) following post-harvest processing, extraction, or any other manipulation, as determined by the Secretary; and ``(ii) when the product is in the form in which it is to be sold to a consumer. ``(2) Reliance on standard-setting bodies.--In establishing the uniform manufacturing and testing requirements under paragraph (1), the Secretary may recognize and rely on standards developed by appropriate standard-setting bodies that have relevant expertise and are subject to third-party auditing. ``(3) Inspection of records.--The Secretary may inspect such records as may be necessary to determine compliance with the uniform manufacturing and testing requirements under paragraph (1). ``(d) Publication of List.-- ``(1) In general.--Not later than 90 days after the date of the enactment of the Lawful Hemp Production Act, the Secretary, in consultation with other relevant Federal agencies, shall publish-- ``(A) a list of all cannabinoids known to the Secretary to be capable of being naturally produced by a Cannabis sativa L. plant, as reflected in peer reviewed literature; and ``(B) a list of all tetrahydrocannabinol class cannabinoids known to the Secretary to be naturally occurring in the plant. ``(2) Updates.--The Secretary shall periodically review and update the lists under subparagraphs (A) and (B) of paragraph (1).''. (f) Applicability.--The amendments made by this section shall only apply with respect to hemp and any products derived from or containing hemp, including industrial hemp, hemp-derived cannabinoid products, and unfinished hemp-cannabinoid ingredients introduced or delivered for introduction into interstate commerce on or after the date that is 180 days after the date of enactment of this Act. SEC. 5. ALLOWING COVERAGE OF HEMP-DERIVED CANNABINOID PRODUCTS UNDER MEDICARE ADVANTAGE AS A SPECIAL SUPPLEMENTAL BENEFIT FOR THE CHRONICALLY ILL; CODIFYING SUBSTANCE ACCESS BENEFICIARY ENGAGEMENT INCENTIVE. (a) Medicare Advantage Special Supplemental Benefit for the Chronically Ill.--Section 1852(a)(3)(D)(ii) of the Social Security Act (42 U.S.C. 1395w-22(a)(3)(D)(ii)) is amended by adding at the end the following new subclause: ``(III) Inclusion of hemp-derived cannabinoid products.--Beginning with respect to the first plan year beginning after the date of enactment of this subclause, an MA plan may, in accordance with such criteria as the Secretary may specify, include as a supplemental benefit under this subparagraph coverage of a hemp-derived cannabinoid product (as defined in section 201(tt) of the Federal Food, Drug, and Cosmetic Act).''. (b) Substance Access Beneficiary Engagement Incentive Under CMI Models.--Section 1115A of the Social Security Act (42 U.S.C. 1315a) is amended by adding at the end the following new subsection: ``(h) Substance Access Beneficiary Engagement Incentive.-- ``(1) In general.--Beginning on the date that is 1 year after the date of enactment of this subsection, a provider of services or supplier participating in a specified model may, in accordance with such criteria as the Secretary shall specify, offer an applicable individual receiving items or services from such provider or supplier a beneficiary engagement incentive consisting of-- ``(A) consultation regarding the possible use of hemp-derived cannabinoid products (as defined in section 201(tt) of the Federal Food, Drug, and Cosmetic Act); and ``(B) subject to such limits as the Secretary shall specify, the provision of such hemp-derived cannabinoid products. ``(2) Specified model.--For purposes of paragraph (1), a specified model is a model tested under this section for which the Secretary determines that the beneficiary engagement incentive described in such paragraph is appropriate.''. SEC. 6. TAXES ON HEMP-DERIVED CANNABINOID PRODUCTS AND RELATED REQUIREMENTS. (a) In General.--Subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: ``CHAPTER 56--HEMP-DERIVED CANNABINOID PRODUCTS ``subchapter a--definitions; taxes ``subchapter b--qualification requirements for manufacturers of hemp- derived cannabinoid products and wholesalers of hemp-derived beverages ``subchapter c--operations by manufacturers of hemp-derived cannabinoid products and wholesalers of hemp-derived beverages ``subchapter d--distribution system for hemp-derived beverages ``subchapter e--general provisions relating to hemp-derived cannabinoid products ``subchapter f--miscellaneous general provisions ``subchapter g--penalties ``Subchapter A--Definitions; Taxes ``Sec. 5900. Definitions. ``Sec. 5901. Tax on hemp-derived beverages. ``Sec. 5901A. Tax on hemp-derived cannabinoid products. ``Sec. 5901B. Tax on sales revenue of manufacturers of hemp-derived cannabinoid products. ``Sec. 5901C. Method of collecting tax. ``SEC. 5900. DEFINITIONS. ``When used in this chapter-- ``(1) Hemp-derived cannabinoid product.--The term `hemp- derived cannabinoid product' has the meaning given such term in section 201 of the Federal Food, Drug, and Cosmetic Act. Except as otherwise provided in this chapter, such term includes hemp- derived beverages. ``(2) Hemp-derived beverage.--The term `hemp-derived beverage' means a hemp-derived cannabinoid product which is a non-alcoholic beverage intended for human consumption. ``(3) Removed for consumption or sale.--The term `removed for consumption or sale' means any removal of a hemp-derived cannabinoid product from the premises of the manufacturer of such product. ``(4) Manufacturer.-- ``(A) In general.--The term `manufacturer', when used with respect to hemp-derived cannabinoid products, means any person who-- ``(i) is engaged in the business of preparing, processing, modifying, or manipulating hemp, including any unfinished hemp-cannabinoid ingredient, to produce such products for purposes of wholesale or retail distribution, and ``(ii) has a permit to engage in such business under subchapter B. ``(B) Hemp; unfinished hemp-cannabinoid ingredient.--For purposes of subparagraph (A), the terms `hemp' and `unfinished hemp-cannabinoid ingredient' have the meanings given such terms in section 297A of the Agricultural Marketing Act of 1946. ``(5) Wholesaler.--The term `wholesaler', when used with respect to hemp-derived beverages, means any person who is engaged in the business of purchasing such beverages for resale at wholesale and has a permit to engage in such business under subchapter B. ``(6) Retailer.--The term `retailer', when used with respect to hemp-derived beverages, means any person who is engaged in the business of purchasing such beverages for resale to consumers. ``SEC. 5901. TAX ON HEMP-DERIVED BEVERAGES. ``(a) Imposition and Rate of Tax.-- ``(1) In general.--A tax is hereby imposed on all hemp- derived beverages produced, and removed for consumption or sale, within the United States. The rate of such tax with respect to each hemp-derived beverage shall be 5 cents on each milligram of tetrahydrocannabinol in such beverage. ``(2) Illegally produced hemp-derived beverages.--Any hemp- derived beverage which is produced at any place in the United States, on the premises of any person who does not have a permit under subchapter B, shall be subject to tax at the rate prescribed in paragraph (1). ``(b) Determination and Collection of Tax.-- ``(1) In general.--The tax imposed by subsection (a)(1) on a hemp-derived beverage shall be-- ``(A) determined at the time such beverage is removed for consumption or sale, and ``(B) paid by the manufacturer of such beverage in accordance with section 5901C. ``(2) Illegally produced hemp-derived beverages.--The tax imposed by subsection (a)(2) on a hemp-derived beverage shall be due and payable immediately upon production. ``(c) Applicability of Other Provisions of Law.--All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by subsection (a). ``SEC. 5901A. TAX ON HEMP-DERIVED CANNABINOID PRODUCTS. ``(a) Imposition and Rate of Tax.-- ``(1) In general.--A tax is hereby imposed on all hemp- derived cannabinoid products (other than hemp-derived beverages) produced, and removed for consumption or sale, within the United States. The rate of such tax with respect to each hemp-derived cannabinoid product shall be the amount equal to 5 percent of the price for which such product is sold. ``(2) Illegally produced hemp-derived cannabinoid products.--Any hemp-derived cannabinoid product (other than a hemp-derived beverage) which is produced at any place in the United States, on the premises of any person who does not have a permit under subchapter B, shall be subject to tax at the rate prescribed in paragraph (1). ``(b) Determination and Collection of Tax.-- ``(1) In general.--The tax imposed by subsection (a)(1) on a hemp-derived cannabinoid product shall be-- ``(A) determined at the time such product is removed for consumption or sale, and ``(B) paid by the manufacturer of such product in accordance with section 5901C. ``(2) Illegally produced hemp-derived cannabinoid products.--The tax imposed by subsection (a)(2) on a hemp- derived cannabinoid product shall be due and payable immediately upon production. ``(c) Applicability of Other Provisions of Law.--All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by subsection (a). ``SEC. 5901B. TAX ON SALES REVENUE OF MANUFACTURERS OF HEMP-DERIVED CANNABINOID PRODUCTS. ``(a) Imposition and Rate of Tax.--A tax is hereby imposed on all manufacturers of hemp-derived cannabinoid products. The rate of such tax with respect to each manufacturer shall be the amount equal to 5 percent of the sales revenue of such manufacturer for the taxable year. ``(b) Sales Revenue Defined.--For purposes of this section, the term `sales revenue' means the gross receipts from the sale of hemp- derived cannabinoid products. ``(c) Determination and Collection of Tax.--The tax imposed by subsection (a) on a manufacturer of hemp-derived cannabinoid products shall be-- ``(1) determined at the close of the taxable year, and ``(2) paid by such manufacturer in accordance with section 5901C. ``(d) Applicability of Other Provisions of Law.--All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by subsection (a). ``SEC. 5901C. METHOD OF COLLECTING TAX. ``(a) Collection by Return.--The taxes imposed by this subchapter shall be collected on the basis of a return. The Secretary shall by regulation prescribe the period or event for which such return shall be filed, the time for filing such return, the information to be furnished on such return, and the time for payment of such taxes. ``(b) Exceptions.--Notwithstanding subsection (a), any tax imposed by section 5901(a)(2) or section 5901A(a)(2) shall be immediately due and payable at the time provided by such provisions. Such tax shall be assessed and collected by the Secretary on the basis of the information available to the Secretary in the same manner as taxes payable by return but with respect to which no return has been filed. ``(c) Assessment.--If any tax imposed by this subchapter is not paid in full at the time required for such payment, it shall be the duty of the Secretary, subject to the limitations prescribed in section 6501, on proof satisfactory to the Secretary, to determine the amount of tax which has been omitted to be paid, and to make an assessment therefor against the person liable for the tax. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required. ``Subchapter B--Qualification Requirements for Manufacturers of Hemp- derived Cannabinoid Products and Wholesalers of Hemp-derived Beverages ``Sec. 5902. Application for permit. ``Sec. 5902A. Permit. ``Sec. 5902B. Judicial review. ``SEC. 5902. APPLICATION FOR PERMIT. ``Every person, before commencing business as a manufacturer of hemp-derived cannabinoid products, or wholesaler of hemp-derived beverages, and at such other time as the Secretary shall by regulation prescribe, shall make application for the permit provided for in section 5902A. The application shall be in such form as the Secretary shall prescribe and shall set forth, truthfully and accurately, the information called for on such form. Such application may be rejected and the permit denied if the Secretary, after notice and opportunity for hearing, finds that-- ``(1) the premises on which it is proposed to conduct the business are not adequate to protect the revenue, or ``(2) such person (or any person required by regulation to be listed in the application)-- ``(A) is not likely to maintain operations in compliance with this chapter, ``(B) has been convicted of a felony violation of any provision of Federal or State criminal law relating to hemp-derived cannabinoid products, or ``(C) has failed to disclose any material information required or made any material false statement in the application. ``SEC. 5902A. PERMIT. ``(a) Issuance.--A person shall not engage in business as a manufacturer of hemp-derived cannabinoid products, or wholesaler of hemp-derived beverages, without a permit to engage in such business. Such permit, conditioned upon compliance with this chapter and regulations prescribed thereunder, shall be issued, in such form and in such manner as the Secretary shall by regulation prescribe, to every person properly qualified under section 5902. A new permit may be required at such other time as the Secretary shall by regulation prescribe. ``(b) Suspension or Revocation.-- ``(1) Show cause hearing.--If the Secretary has reason to believe that any person holding a permit-- ``(A) has not in good faith complied with this chapter, or with any other provision of this title involving intent to defraud, ``(B) has violated the conditions of such permit, ``(C) has failed to disclose any material information required or made any material false statement in the application for such permit, ``(D) has failed to maintain the premises in such manner as to protect the revenue, ``(E) is, by reason of previous or current legal proceedings involving a felony violation of any other provision of Federal criminal law relating to hemp- derived cannabinoid products, not likely to maintain operations in compliance with this chapter, or ``(F) has been convicted of a felony violation of any provision of Federal or State criminal law relating to hemp-derived cannabinoid products, the Secretary shall issue an order, stating the facts charged, citing such person to show cause why the permit should not be suspended or revoked. ``(2) Action following hearing.--If, after a hearing, the Secretary finds that such person has not shown cause why the permit should not be suspended or revoked, such permit shall be suspended for such period as the Secretary deems proper or shall be revoked. ``SEC. 5902B. JUDICIAL REVIEW. ``If the Secretary denies a person a permit under section 5902, or suspends or revokes the permit of a person under section 5902A, such person may obtain judicial review by filing in the United States Court of Appeals for the circuit wherein the person resides or has the person's principal place of business, or in the United States Court of Appeals for the District of Columbia, within 60 days after such denial, suspension, or revocation, as the case may be. Any findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive. ``Subchapter C--Operations by Manufacturers of Hemp-derived Cannabinoid Products and Wholesalers of Hemp-derived Beverages ``Sec. 5903. Inventories. ``Sec. 5903A. Reports. ``Sec. 5903B. Packages, marks, labels, and notices. ``SEC. 5903. INVENTORIES. ``Every manufacturer of hemp-derived cannabinoid products, and every wholesaler of hemp-derived beverages, shall make a true and accurate inventory at the time of commencing business, at the time of concluding business, and at such other times, in such manner and form, and to include such items, as the Secretary shall by regulation prescribe. Such inventories shall be subject to verification by any internal revenue officer. ``SEC. 5903A. REPORTS. ``Every manufacturer of hemp-derived cannabinoid products, and every wholesaler of hemp-derived beverages, shall make reports containing such information, in such form, at such times, and for such periods as the Secretary shall by regulation prescribe. ``SEC. 5903B. PACKAGES, MARKS, LABELS, AND NOTICES. ``Every hemp-derived cannabinoid product shall, before such product is removed for consumption or sale, be put up in such package and bear the marks, labels, and notices, if any, that the Secretary by regulation prescribes. ``Subchapter D--Distribution System for Hemp-derived Beverages ``Sec. 5904. Distribution system. ``SEC. 5904. DISTRIBUTION SYSTEM. ``The Secretary shall prescribe regulations to establish and implement a three-tiered distribution system for hemp-derived beverages. Such regulations shall, at a minimum, require the following: ``(1) Tier 1--manufacturers.--A manufacturer of hemp- derived beverages may only sell or transfer such beverages to a wholesaler of hemp-derived beverages. ``(2) Tier 2--wholesalers.--A wholesaler of hemp-derived beverages may only-- ``(A) purchase such beverages from a manufacturer of hemp-derived beverages, and ``(B) sell or transfer such beverages to a retailer of hemp-derived beverages. ``(3) Tier 3--retailers.--A retailer of hemp-derived beverages may only purchase such beverages from a wholesaler of hemp-derived beverages. No person may hold permits under subchapter B as both a manufacturer of hemp-derived beverages and a wholesaler of hemp-derived beverages, and no person may hold any interest, directly or indirectly, in more than one tier. The separation among the three tiers shall be strictly maintained. ``Subchapter E--General Provisions Relating to Hemp-derived Cannabinoid Products ``Sec. 5905. Records to be maintained. ``Sec. 5905A. Right of entry and examination. ``Sec. 5905B. Purchase, receipt, possession, or sale of hemp-derived beverages after removal. ``Sec. 5905C. Restrictions relating to marks, labels, notices, and packages. ``SEC. 5905. RECORDS TO BE MAINTAINED. ``Every manufacturer of hemp-derived cannabinoid products, and every wholesaler of hemp-derived beverages, shall keep such records in such manner as the Secretary shall by regulation prescribe. ``SEC. 5905A. RIGHT OF ENTRY AND EXAMINATION. ``The Secretary may, during business hours, enter the premises of any manufacturer of hemp-derived cannabinoid products, or wholesaler of hemp-derived beverages, for the purpose of examining-- ``(1) any records required under section 5905, or ``(2) any hemp-derived cannabinoid products stored on such premises. ``SEC. 5905B. PURCHASE, RECEIPT, POSSESSION, OR SALE OF HEMP-DERIVED CANNABINOID PRODUCTS AFTER REMOVAL. ``(a) Restriction.--No person shall-- ``(1) with intent to defraud the United States, purchase, receive, possess, offer for sale, or sell or otherwise dispose of, any hemp-derived cannabinoid product (after such product has been removed for consumption or sale) upon which the tax has not been paid or determined in the manner and at the time prescribed by this chapter or regulations thereunder, ``(2) with intent to defraud the United States, purchase, receive, possess, offer for sale, or sell or otherwise dispose of, any hemp-derived cannabinoid product (after such product has been removed for consumption or sale) which is not put up in a package as required under section 5903B or which is put up in a package not bearing the marks, labels, and notices required under such section, or ``(3) otherwise than with intent to defraud the United States, purchase, receive, possess, offer for sale, or sell or otherwise dispose of, any hemp-derived cannabinoid product (after such product has been removed for consumption or sale) which is not put up in a package as required under section 5903B or which is put up in a package not bearing the marks, labels, and notices required under such section. Paragraph (3) shall not prevent the sale or delivery of hemp-derived cannabinoid products directly to consumers from proper packages, nor apply to such products when so sold or delivered. ``(b) Liability to Tax.--Any person who possesses hemp-derived cannabinoid products in violation of subsection (a)(1) or (a)(2) shall be liable for a tax equal to the tax on such products, as applicable under subchapter A. ``SEC. 5905C. RESTRICTIONS RELATING TO MARKS, LABELS, NOTICES, AND PACKAGES. ``No person shall, with intent to defraud the United States, destroy, obliterate, or detach any mark, label, or notice prescribed or authorized, by this chapter or regulations thereunder, to appear on, or be affixed to, any package of hemp-derived cannabinoid products before such package is emptied. ``Subchapter F--Miscellaneous General Provisions ``Sec. 5906. Regulations. ``Sec. 5906A. Application of State laws. ``SEC. 5906. REGULATIONS. ``The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this chapter. ``SEC. 5906A. APPLICATION OF STATE LAWS. ``Compliance with this chapter with respect to carrying on any trade or business shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on such trade or business within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State; nor shall the payment of any tax imposed by this chapter be held to prohibit any State from placing a tax on the same trade or business for State or other purposes. ``Subchapter G--Penalties ``Sec. 5907. Civil penalties. ``Sec. 5907A. Criminal penalties. ``SEC. 5907. CIVIL PENALTIES. ``(a) Omitting Things Required or Doing Things Forbidden.--Whoever willfully omits, neglects, or refuses to comply with any tax imposed by this chapter, or to do, or cause to be done, any of the things required by this chapter, or does anything prohibited by this chapter, shall, in addition to any other penalty provided in this title, be liable to a penalty of $1,000 for each such omission or commission. ``(b) Failure To Pay Tax.--Whoever fails to pay any tax imposed by this chapter at the time prescribed by law or regulations, shall, in addition to any other penalty provided in this title, be liable to a penalty of 5 percent of the tax due but unpaid. ``(c) Applicability of Section 6665.--The penalties imposed by this section shall be assessed, collected, and paid in the same manner as taxes, as provided in section 6665(a). ``SEC. 5907A. CRIMINAL PENALTIES. ``(a) Fraudulent Offenses.--Whoever, with intent to defraud the United States-- ``(1) Engaging in business unlawfully.--Engages in business as a manufacturer of hemp-derived cannabinoid products, or wholesaler of hemp-derived beverages, without obtaining the permit required by this chapter or regulations thereunder, or ``(2) Failing to furnish information or furnishing false information.--Fails to keep or make any record, return, report, or inventory, or keeps or makes any false or fraudulent record, return, report, or inventory, required by this chapter or regulations thereunder, or ``(3) Refusing to pay or evading tax.--Refuses to pay any tax imposed by this chapter, or attempts in any manner to evade or defeat the tax or the payment thereof, or ``(4) Removing hemp-derived cannabinoid products unlawfully.--Removes for consumption or sale, contrary to this chapter or regulations thereunder, any hemp-derived cannabinoid product subject to tax under this chapter, or ``(5) Purchasing, receiving, possessing, or selling hemp- derived cannabinoid products unlawfully.--Violates any provision of section 5905B(a)(1) or (a)(2), or ``(6) Destroying, obliterating, or detaching marks, labels, or notices before packages are emptied.--Violates any provision of 5905C, shall, for each such offense, be fined not more than $10,000, or imprisoned not more than 5 years, or both. ``(b) Other Offenses.--Whoever, otherwise than as provided in subsection (a), violates any provision of this chapter, or of regulations prescribed thereunder, shall, for each such offense, be fined not more than $1,000, or imprisoned not more than 1 year, or both.''. (b) Trust Fund for Oversight of Hemp-Derived Cannabinoid Products.--Subchapter A of chapter 98 of such Code is amended by adding at the end the following new section: ``SEC. 9512. TRUST FUND FOR OVERSIGHT OF HEMP-DERIVED CANNABINOID PRODUCTS. ``(a) Creation of Trust Fund.--There is hereby established in the Treasury of the United States a trust fund to be known as the `Trust Fund for Oversight of Hemp-derived Cannabinoid Products', consisting of such amounts as may be appropriated to such Trust Fund as provided in this section. ``(b) Transfer to Trust Fund of Amounts Equivalent to Certain Taxes.--There are hereby appropriated to the Trust Fund for Oversight of Hemp-derived Cannabinoid Products amounts equivalent to the taxes received in the Treasury under sections 5901A and 5901B. ``(c) Expenditures From Trust Fund.--Amounts in the Trust Fund for Oversight of Hemp-derived Cannabinoid Products shall be available, without further appropriation, to the Secretary for making expenditures-- ``(1) to carry out the requirements of chapter 56, ``(2) to administer or conduct oversight of any hemp commerce regulatory program, as authorized by law, ``(3) to carry out any consumer protection activities related to hemp-derived cannabinoid products, as authorized by law, and ``(4) to support States that cooperate with the Secretary in carrying out the requirements of chapter 56. ``(d) Annual Report to Congress.--The Secretary shall submit an annual report to Congress and include in such report with respect to the preceding year-- ``(1) the amounts appropriated to the Trust Fund for Oversight of Hemp-derived Cannabinoid Products under subsection (b), and ``(2) any expenditures made from such Trust Fund under subsection (c).''. (c) Highway Trust Fund.--Section 9503 of such Code is amended by adding at the end the following new subsection: ``(g) Zero-Tolerance for Impaired Driving.--There are hereby appropriated into the Highway Trust Fund amounts equivalent to 1 percent of the total taxes received in the Treasury each year under section 5901 (relating to taxes on hemp-derived beverages). Such amounts shall be available for making expenditures to support State- level enforcement, training, and testing technologies related to the zero-tolerance for impaired driving standards described in section 180 of title 23, United States Code.''. (d) Disclosure of Returns and Return Information.--Section 6103(l) of such Code is amended by adding at the end the following new paragraph: ``(23) Disclosure of returns and return information to federal, state, tribal, and local agencies administering or enforcing hemp laws.-- ``(A) In general.--Returns and return information with respect to taxes imposed by chapter 56 may be open to inspection by, or disclosure to, any Federal, State, tribal, or local agency charged under any Federal, State, tribal, or local hemp law with responsibility for the administration or enforcement of such law for the purpose of, and only to the extent necessary in, the administration or enforcement of such law. However, such returns and return information shall not be so disclosed if the Secretary determines that such disclosure would seriously impair Federal tax administration. ``(B) Public information.--The Secretary shall make publicly available the name and business address of each manufacturer of hemp-derived cannabinoid products and each wholesaler of hemp-derived beverages. ``(C) Definitions.--Any term used in this paragraph which is also used in chapter 56 shall have the same meaning for purposes of this paragraph as when used in such chapter.''. (e) Conforming Amendments.-- (1) Section 6091(b)(6) of such Code is amended-- (A) by striking ``and firearms'' and inserting ``firearms, and hemp-derived cannabinoid products'', and (B) in the heading thereof, by striking ``and firearms'' and inserting ``firearms, and hemp-derived cannabinoid products''. (2) Section 7613(a)(2) of such Code is amended by striking ``and firearms'' and inserting ``firearms, and hemp-derived cannabinoid products''. (3) The table of chapters for subtitle E of such Code is amended by adding at the end the following new item: ``Chapter 56--Hemp-derived Cannabinoid Products''. (4) The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item: ``Sec. 9512. Trust Fund for Oversight of Hemp-derived Cannabinoid Products.''. (f) Deadline for Regulations.--The Secretary of the Treasury (or the Secretary's delegate) shall prescribe regulations to implement chapter 56 of the Internal Revenue Code of 1986 (as added by this section) not later than 1 year after the date of the enactment of this Act. (g) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to hemp-derived cannabinoid products sold on or after the date on which the Secretary publishes the regulations prescribed under subsection (f). (2) Transition rule.-- (A) In general.--No person may engage in business as a manufacturer of hemp-derived cannabinoid products, or wholesaler of hemp-derived beverages, after the date of the enactment of this Act until such person has a permit in accordance with chapter 56 of the Internal Revenue Code of 1986 (as added by this section) and regulations prescribed thereunder. Notwithstanding the preceding sentence, any person who is engaged in business as a manufacturer of hemp-derived cannabinoid products, or wholesaler of hemp-derived beverages, on the date of the enactment of this Act may continue to engage in such business on the condition that-- (i) the person applies for a permit within 30 days after the date described in paragraph (1), and (ii) beginning on the date described in paragraph (1), complies with such chapter 56 and such regulations. (B) Penalties.--A violation of subparagraph (A) by any person shall be treated for all purposes in the same manner as a violation of chapter 56 of the Internal Revenue Code of 1986 (as added by this section), and such person shall be subject to the same penalties, and to the same extent, as for a violation of such chapter. (3) Trust funds.--The amendments made by subsections (b) and (c) shall apply to taxes received after the date described in paragraph (1). (4) Disclosure of returns and return information.--The amendment made by subsection (d) shall apply to disclosures after the date described in paragraph (1). SEC. 7. UNFAIR COMPETITION AND UNLAWFUL PRACTICES. (a) In General.--It shall be unlawful for any person engaged in business as a manufacturer or wholesaler of hemp-derived beverages to directly or indirectly-- (1) require, by agreement or otherwise, that any retailer of hemp-derived beverages purchase such beverages from such person to the exclusion, in whole or in part, of hemp-derived beverages sold or offered for sale by other persons if-- (A) such requirement is made or such person engages in such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such requirement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such retailer, (2) induce any retailer of hemp-derived beverages to purchase any such beverages from such person to the exclusion, in whole or in part, of hemp-derived beverages sold or offered for sale by other persons if-- (A) such inducement is made or such person engages such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such inducement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such retailer by-- (i) acquiring or holding (after the expiration of any existing permit) any interest in any permit with respect to the premises of the retailer, (ii) acquiring any interest in real or personal property owned, occupied, or used by the retailer in the conduct of the retailer's business, (iii) furnishing, giving, renting, lending, or selling to the retailer, any equipment, fixtures, signs, supplies, money, services, or other thing of value, subject to such exceptions as the Secretary shall by regulation prescribe, having due regard for public health, the quantity and value of articles involved, established trade customs not contrary to the public interest and the purposes of this subsection, (iv) paying or crediting the retailer for any advertising, display, or distribution service, (v) guaranteeing any loan or the repayment of any financial obligation of the retailer, (vi) extending to the retailer credit for a period in excess of the credit period usual and customary to the industry for the particular class of transactions, as the Secretary shall by regulation prescribe, or (vii) requiring the retailer to take and dispose of a certain quota of any of such beverages, (3) induce any trade buyer engaged in the sale of hemp- derived beverages to purchase such beverages from such person to the exclusion, in whole or in part, of hemp-derived beverages sold or offered for sale by other persons if-- (A) such inducement is made or such person engages in such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such inducement is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such trade buyer by-- (i) commercial bribery, or (ii) offering or giving any disproportionate bonus, premium, or compensation to any officer, employee, or representative of the trade buyer, or (4) sell, offer for sale, or contract to sell to any trade buyer engaged in the sale of hemp-derived beverages, or for any such trade buyer to purchase, offer to purchase, or contract to purchase, any such beverages on consignment or under conditional sale or with the privilege of return or on any basis other than a bona fide sale, or where any part of such transaction involves, directly or indirectly, the acquisition by such person from the trade buyer or such person's agreement to acquire from the trade buyer other hemp-derived beverages if-- (A) such person or trade buyer engages in such practice to such an extent as substantially to restrain or prevent transactions in any such beverages, or (B) the direct effect of such sale, purchase, offer, or contract is to prevent, deter, hinder, or restrict other persons from selling or offering for sale any such beverages to such trade buyer. (b) Application to Bona Fide Return of Merchandise.--Subsection (a) shall not apply to any transaction involving solely the bona fide return of merchandise for ordinary and usual commercial reasons arising after the merchandise has been sold. (c) Application to State and Local Agencies.--Paragraphs (1), (2), and (3) of subsection (a) shall not apply to any agency of a State or any political subdivision thereof, or to any officer or employee of such an agency. (d) Penalties.--Any person who violates a requirement of subsection (a) shall be guilty of a misdemeanor, and upon conviction, be subject to a fine of not more than $1,000 and the seizure and forfeiture of all hemp-derived beverages involved in such violation. (e) Secretary Defined.--For purposes of this section, the term ``Secretary'' means the Secretary of the Treasury (or the Secretary's delegate). (f) Other Definitions.--Any term used in this section which is also used in chapter 56 of the Internal Revenue Code of 1986 (as added by this Act) shall have the same meaning for purposes of this section as when used in such chapter. SEC. 8. PROHIBITION RELATED TO UNFINISHED HEMP-CANNABINOID INGREDIENTS. (a) In General.--It shall be unlawful to market, sell, distribute, or ship an unfinished hemp-cannabinoid ingredient to any person other than a manufacturer of hemp-derived cannabinoid products who has a permit under chapter 56 of the Internal Revenue Code of 1986 (as added by this Act) for the purpose of further manufacturing such product into a finished hemp-derived cannabinoid product. (b) Penalties.--Any person who violates subsection (a) shall be guilty of a misdemeanor, and upon conviction, be subject to a fine of not more than $1,000. In addition to such fine, such person may have their permit under chapter 56 of the Internal Revenue Code of 1986 (as added by this Act) suspended or revoked. (c) Unfinished Hemp-Cannabinoid Ingredient Defined.--For purposes of this section, the term ``unfinished hemp-cannabinoid ingredient'' has the meaning given such term in section 297A of the Agricultural Marketing Act of 1946. SEC. 9. ZERO TOLERANCE FOR IMPAIRED DRIVING. (a) In General.--Chapter 1 of title 23, United States Code, is amended by adding at the end the following: ``Sec. 180. Zero tolerance for impaired driving ``(a) In General.--For fiscal year 2027 and each fiscal year thereafter, the Secretary shall withhold 10 percent of the amount required to be apportioned to any State under paragraphs (1) and (2) of section 104(b) if such State does not have in effect a law that meets the requirements of subsection (b). ``(b) Requirements.--The requirements of this subsection are as follows: ``(1) For purposes of enforcing laws relating to impaired driving, impairment due to hemp shall be assessed using the same field sobriety evaluation standards and protocols that law enforcement officers apply to determine impairment caused by lawfully prescribed pharmaceutical substances, including opioids, benzodiazepines, and other controlled medications. ``(2) Any person determined to be operating a motor vehicle while impaired by hemp shall be subject to the same penalties, fines, license suspensions, and other sanctions as apply to driving under the influence of alcohol or other impairing substances under the laws of the State in which the violation occurs. ``(c) State Enforcement.--Nothing in this section shall be construed to limit the authority of any State to enforce its own laws relating to impaired driving, provided such laws apply penalties for hemp impairment that are no less stringent than those applied to alcohol-related impairment. ``(d) Rule of Construction.--This section shall not be construed to require the development of a per se blood or bodily fluid concentration threshold for hemp-derived cannabinoids as a precondition for enforcement of impaired driving laws.''. (b) Clerical Amendment.--The analysis for chapter 1 of title 23, United States Code, is amended by adding at the end the following: ``180. Zero tolerance for impaired driving.''. SEC. 10. PROTECTION OF STATE REGULATORY AUTHORITY AND INTERSTATE COMMERCE. (a) Preservation of State Rights.--Except as provided in subsection (b), nothing in this Act or the amendments made by this Act shall be construed to preempt or limit the authority of a State, territory, or Indian Tribe to enact or enforce laws and regulations governing the production, manufacture, distribution, importation, or sale of hemp or hemp-derived cannabinoid products within the borders, or exportation out of the borders, of such State, territory, or Indian Tribe that are more stringent than, or at least as protective as would be permitted under an alcoholic beverage regulatory scheme comparable to, the standards in this Act and the amendments made by this Act. (b) Non-Interference With Interstate Commerce.--Pursuant to clause 3 of section 8 of article I, United States Constitution, no State, territory, or Indian Tribe may enact or enforce any law that prevents the passage and delivery of a hemp-derived cannabinoid product through the borders of such State, territory, or Indian Tribe if such product complies with this Act and the amendments made by this Act. (c) Definitions.--In this section: (1) Hemp.--The term ``hemp'' has the meaning given the term in section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o), as amended by section 3 of this Act. (2) Hemp-derived cannabinoid product.--The term ``hemp- derived cannabinoid product'' has the meaning given the term in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321), as amended by section 4(a) of this Act. SEC. 11. SEVERABILITY. If any provision of this Act or the amendments made by this Act, or the application of any such provision to any person or circumstance, is held to be unconstitutional or otherwise invalid by a court of competent jurisdiction, the remainder of this Act and the amendments made by this Act, and the application of the provisions of this Act and the amendments made by this Act to any other person or circumstance, shall not be affected thereby. <all>
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