H.R. 9830 — Lawful Hemp Protection Act

This section establishes congressional findings that protecting minors from hemp products is essential to public health and industry credibility, that veterans and seniors rely on consistently manufactured and labeled hemp products for wellness, and that clear provenance standards and the elimination of deceptive products are needed to promote responsible hemp commerce.

This section revises the definition of hemp to cover the Cannabis sativa L. plant and its derivatives with a total tetrahydrocannabinol concentration (including tetrahydrocannabinol acid) of not more than 1 percent on a dry weight basis (from 0.3 percent delta-9 tetrahydrocannabinol), while excluding viable seeds exceeding the threshold, intermediate or final products containing synthetic or chemically modified cannabinoids such as HHC, THC-O-acetate, and THCP, and certain products marketed directly to consumers. It adds definitions of industrial hemp for specified non-cannabinoid uses and unfinished hemp-cannabinoid ingredients for licensed processing, and repeals the prior conforming provision in the FY2026 agriculture appropriations act.

This section excludes hemp-derived cannabinoid products from the definition of drug under the Federal Food, Drug, and Cosmetic Act. It defines such products and hemp-derived cannabinoid dietary supplements, deems qualifying products to be food, requires exclusive U.S. cultivation, processing, and finishing for interstate commerce, prohibits sale to or possession by persons under 21 years of age, and establishes adulteration and misbranding standards including maximum cannabinoid limits, labeling disclaimers, and restrictions on added substances.

This section authorizes Medicare Advantage plans to cover hemp-derived cannabinoid products as a special supplemental benefit for the chronically ill beginning in the first plan year after enactment. It also permits providers participating in specified Center for Medicare and Medicaid Innovation models to offer consultations on such products and to furnish them as beneficiary engagement incentives beginning one year after enactment.

This section imposes new federal excise taxes on hemp-derived cannabinoid products, at a rate of 5 cents per milligram of tetrahydrocannabinol for beverages and 5 percent of the sales price for other products, plus a separate 5 percent tax on manufacturers’ gross sales revenue. It requires permits for manufacturers and wholesalers, sets operational and distribution rules, and applies penalties for violations.

This section prohibits manufacturers and wholesalers of hemp-derived beverages from requiring or inducing exclusive purchases by retailers or trade buyers through tied interests, equipment, loans, credit, quotas, commercial bribery, or disproportionate payments, or from selling on consignment or conditional terms, when such practices substantially restrain competition. It exempts bona fide returns and state or local agencies, imposes misdemeanor penalties of up to a $1,000 fine plus seizure and forfeiture, and defines the Secretary as the Secretary of the Treasury.

This section prohibits marketing, selling, distributing, or shipping unfinished hemp-cannabinoid ingredients except to permitted manufacturers for further processing into finished hemp-derived cannabinoid products. Violations are misdemeanors subject to fines of up to $1,000 and possible suspension or revocation of the manufacturer permit.

This section withholds 10 percent of a state’s apportionments under paragraphs (1) and (2) of section 104(b) beginning in fiscal year 2027 unless the state applies the same field sobriety evaluation standards and protocols to hemp impairment as it uses for lawfully prescribed pharmaceuticals and imposes the same penalties, fines, and license sanctions as for alcohol or other impairing substances. It prohibits states from adopting less stringent penalties for hemp-related impairment than for alcohol-related impairment.

This section preserves the authority of states, territories, and Indian Tribes to enact and enforce laws on the production, manufacture, distribution, importation, sale, or export of hemp and hemp-derived cannabinoid products that are more stringent than federal standards, provided the laws are at least as protective as a comparable alcoholic beverage regulatory scheme. It prohibits those jurisdictions from blocking the passage or delivery of compliant products in interstate commerce.

This section provides that if any provision of the Act or its amendments is held unconstitutional or invalid, the remainder of the Act and its amendments remains in effect and applies to other persons and circumstances.