Committee approves substitute to HB 254 to limit hemp-derived beverages to package stores; excise tax deferred to summer study

The House Regulated Industries Committee on Tuesday approved a substitute to House Bill 254 that gives the Georgia Department of Revenue authority to write rules allowing package stores licensed by the Department of Agriculture to sell certain hemp-derived beverage products, and sent questions about excise taxes and testing to a summer study.

The committee chair, identifying the bill as a follow-up to earlier hearings, said the substitute (LC 28 069S) "gives the Department of Revenue the authority to promulgate the rules and regulations to allow package stores if they are licensed by the Department of Agriculture for these products for them to sell these products." The chair said the change "only does one thing": move authorized sales into package stores subject to those licenses.

Committee members asked whether the measure creates a new excise tax. The chair said no, and that Revenue officials had advised that imposing an excise tax would require changes across multiple code sections and would be handled during the planned summer study. On age limits, the chair stated, "You have to be 21 years of age." Miss Bennett, a committee member, confirmed the excise-tax questions will be examined after the interim.

Committee discussion referenced hearings held the previous day, testing issues raised by laboratory operators in Macon and assistance from Department of Agriculture staffer Catherine Russell. The chair said the committee had "heard testimony yesterday" and planned "in-depth" study over the summer of product safety, verification and taxation.

A committee member moved to pass the substitute; another member seconded. After brief remarks, the chair called for the question; the committee responded "Aye" and the chair announced, "The ayes have it," approving the substitute. The chair closed the meeting and distributed sealed product samples with the admonition not to open them on the premises.

The substitute does not itself impose an excise tax or change the 21-year age requirement; the chair said both the safety/testing regime and any excise-tax framework will be examined in the interim study rather than decided in this meeting.

Next steps: the Department of Revenue is authorized to draft rules governing retail sales of the specified hemp-derived beverages for sale in package stores licensed by the Department of Agriculture; further rulemaking and any excise-tax proposals will be considered during the summer study and in a future legislative session.