Beverage Regulatory Parity Act

The Beverage Regulatory Parity Act establishes a federal regulatory framework for hemp-derived beverages, covering their production, distribution, labeling, advertising, and taxation, and assigns oversight to the Secretary of Agriculture, the Secretary of Health and Human Services, and the Tax and Trade Bureau.

Sec. 2, Regulation of hemp by Secretary of Agriculture: The per-container limit on intoxicating cannabinoid content from the hemp amendments does not apply to hemp-derived beverages made according to serving requirements in section 4(l)(3). Intermediate hemp-derived cannabinoid products may temporarily exceed the total tetrahydrocannabinol limit during manufacturing if used exclusively for compliant beverages, held only by permitted manufacturers, not for consumer use, and contain no more than 20 percent total tetrahydrocannabinols by weight.

Sec. 3, Regulation of hemp-derived beverages by Secretary of Health and Human Services: Hemp-derived beverages are considered a food regulated by the FDA. They are not adulterated solely for containing naturally-occurring cannabinoids unless they violate section 402(j). The FDA must establish a recall process for adulterated beverages. Naturally-occurring cannabinoids in such beverages are not considered drugs or biological products. Adulteration includes exceeding the maximum cannabinoid amount, containing non-naturally-occurring cannabinoids beyond trace amounts, containing added substances like alcohol or caffeine that could be harmful, or being held in a facility that limits inspection. Misbranding includes violating labeling or advertising requirements, being made by an unpermitted person, or not meeting uniform manufacturing and testing standards.

Sec. 4, Regulation of hemp-derived beverages by Administrator of Tax and Trade Bureau: The Administrator must establish a three-tiered distribution system (manufacturers, wholesalers, retailers) with permits. Manufacturers must be certified for compliance with content, contaminant, testing, and facility requirements. No person may hold permits in more than one tier. Labeling must not be deceptive, must provide information on identity, cannabinoid content, servings, risks, and age restrictions, and must include warnings about drug tests. Advertising is restricted and cannot be more restrictive than for alcohol. Violations are misdemeanors with a $1,000 fine per offense. Unfair competition and unlawful practices are subject to provisions similar to the Federal Alcohol Administration Act. Sale to persons under 21 is unlawful, and persons under 21 cannot purchase, possess, or consume these beverages. State and local authorities are not preempted and may enact stricter laws. The Administrator must report to Congress annually, and the FDA must commission a report on testing, impairment, and serving sizes.

Sec. 5, Imposition of tax on hemp-derived beverages: A tax of 8 cents per milligram of intoxicating tetrahydrocannabinol content is imposed on hemp-derived beverages produced in the United States, collected at the time of removal from the manufacturer's premises.

Sec. 6, Severability: If any provision of the Act is held invalid, the remainder of the Act remains in effect.