The THC Regulation Saga

The on again off again federal regulations for THC products are currently on again, so it’s probably a good time to discuss where things currently stand.

Language in the 2018 federal farm bill laid the groundwork for an explosion of THC products, including the drinks and gummies currently on the market.  Many in Congress who supported the farm bill later argued they did not realize the language of the bill would allow for this expansion and tried repeatedly to put a federal ban of THC products back in place.  Finally, they were successful when they attached an amendment to President Trump’s “Big, Beautiful Bill” that will effectively ban THC products effective on November 12, 2026.

But questions remain.  Will the federal government actually enforce the ban?  Do we really expect states where anything goes, like Colorado, to no longer have these products available?  And will the new ban actually take effect on November 12 or will there be a repeal or extension before it takes effect?  What if the November elections bring a flip in which party controls Congress?

All these questions have yet to be answered, but as of now the products will face a federal ban this November.  That means those to produce, distribute and sell these products could face enforcement action, complications with credit card processing, and liability issues.  As it currently stands, very few insurance companies are willing to insure retail sales of these products (Illinois Casualty currently sells rider policies).

Then there are the attempts at state regulations.  Current state laws have been largely unenforceable, so efforts have been made to put regulations in place so there are at least some permanent restrictions, like age limits, potency limits, etc.  Wisconsin retailers do not have the same liability protections for the responsible serving of THC products that currently exist for the responsible serving of alcohol, so efforts have been made to address that issue as well.

Polls show that state residents favor legalization of THC products and that they be regulated similar to alcohol.  The Tavern League of Wisconsin has supported Representative Rob Swearingen’s efforts to pass legislation doing just that for THC drinks and other products.  His bill didn’t pass this session, but the issue is sure to come up next year when the legislature reconvenes.

So, THC regulations continue to be a convoluted mess.  A federal ban is scheduled to take effect on November 12 of this year.  Who knows how long it will last?  The answer may depend on the November elections.

And on the state level, there are no enforceable laws restricting access—not even for underage consumers.  State lawmakers will try to tackle the issue again next year.  There too, what restrictions actually get passed--and the regulatory structure surrounding it-- probably depends on which party controls the legislature and the Governor’s office after the November elections.

It’s time for state and federal government to tackle the THC issue and provide clarity.  The Tavern League of Wisconsin is aligned with the views of the public in calling for these products to be made available, but with regulations and restrictions similar to the alcohol industry.  We will work with both sides of the aisle in an effort to get to a commonsense solution.