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Committee approves bill to regulate hemp retail through ABC; debate on ABC vs. Agriculture roles
Summary
The committee approved House Bill 1376, establishing a regulatory framework for hemp‑derived products sold at licensed retail establishments (vote 13–1). Debate focused on whether the Alcoholic Beverage Commission or the Department of Agriculture should regulate retail and manufacturing activities.
The House Government Operations Committee on March 17 approved House Bill 1376, a regulatory framework to govern retail sales of hemp‑derived products, with a committee vote of 13 ayes and 1 no.
Leader Lambeth, the bill sponsor, said the legislation would allow hemp‑derived products to continue to be sold in retail establishments but restrict those sales to licensed liquor stores and hemp specialty retailers rather than grocery or convenience stores. "They would only be sold in liquor stores or hemp establishments...and so they would be licensed as such," Lambeth said, adding that the Alcoholic Beverage Commission (ABC) would regulate retail sales while the Department of Agriculture would retain oversight of cultivation.
Several members raised questions about the appropriate regulatory home. Chairman Clemens and Representative Mackenzie expressed concern that shifting retail regulatory authority to the ABC could leave manufacturing oversight in the Department of Agriculture, potentially fragmenting regulation. Leader Lambeth responded that the ABC has extensive retail inspection experience and that the bill addresses mainly wholesale and retail functions rather than growth or manufacturing.
Representative Mackenzie asked about THCa specifically; Lambeth said the Commerce Committee removed an outright ban on THCa but kept it within the regulatory framework established by the bill. Members also asked whether ABC staff would be dedicated to hemp regulation or cross‑trained; Lambeth said ABC would likely assign staff to hemp and cross‑train inspectors where stores sold both liquor and hemp products.
The committee voted 13–1 to pass HB1376 to the next stage.
No final rule language was presented in committee; sponsors said rule‑making and licensing details would be determined by the ABC and appear later in administrative rules.
