WASHINGTON — Ryan Kopperud, the vice president of a Duluth-based cider company that makes THC-infused drinks, said a federal ban on the popular beverages slated to go into effect in November is already taking its toll on what has become a booming industry in the state.

“We are starting to feel the pressure and contraction already, and it’s only going to get worse through the summer,” he said. “We are racing towards a cliff.”

Last November, Congress outlawed hemp-infused edibles — including drinks, gummies and even some CBD products containing more than 0.4 milligrams of THC, the psychoactive ingredient in cannabis. The ban, contained in a massive spending bill to fund the federal government, gave the industry a year to adjust to the restrictions.

But the industry pushed back, and its allies in Congress have sponsored a number of bills in an effort to keep what’s become a $30 billion-a-year industry alive.

Related: Going undercover, young customers went uncarded in 1 in 3 attempts to buy hemp-derived THC in Twin Cities

Next week, for instance, the U.S. House will consider an amendment to the farm bill sponsored by Rep. James Comer, R-Ky., that would push the date of the new restrictions for  another year.

Another Kentucky Republican, Rep. Andy Barr, may also try to amend the farm bill with legislation that would allow the continued sale of THC-infused edibles but outlaw “artificial” or “synthetic” THC that does not exist in the hemp plant. Barr’s bill would also set a national cap on the potency of products.

In addition, the legislation would require producers of THC edibles to be licensed, set age restrictions and implement a ban on marketing strategies that could appeal to children.

To Kopperud, whose company, Wild State Cider, produces the Birdie and Odder brands of hemp-derived THC, Congress’ new restrictions were aimed at “bad actors” who sold products of dangerously high levels of THC — often with the use of “artificial” THC — and sometimes marketed those products to children.

But he said Minnesota assiduously regulates hemp-based THC products, setting limits on potency — for drinks it’s 10 milligrams of THC — and implements testing and age restrictions.

Sens. Amy Klobuchar, D-Minn., and Rand Paul, R-Ky., introduced a bill this week that would protect the states that allow the sale of hemp-derived products, like their home states. The legislation would allow these states to “opt out” of the new federal hemp regulations and allow THC-infused products that are produced in one state to be sold in all other states that also allow THC edibles and drinks to be sold.

“I’ve heard loud and clear from brewers, farmers, and small businesses in Minnesota — a federal ban on hemp products will be devastating,” Klobuchar said in a statement. “Minnesota is a national leader in hemp products, and Congress should recognize that leadership and commitment to consumer safety.”

Jonathan Miller, general counsel at the U.S. Hemp Roundtable, said the Klobuchar-Paul bill “comes at a critical moment.”

“This legislation would provide invaluable protection for farmers, small businesses, and consumers who rely on these products for their health and wellness,” Miller said.

Klobuchar is also a co-sponsor of a bill that would delay implementation of the hemp regulations for two years.

Other bills supportive of the hemp industry and the THC-infused edibles industry have also been introduced, but they have not had much traction and a lot of pushback.

The marijuana industry, whose products are legal to all adults in 24 states but not legal under federal law, seeks a “level playing field” with the hemp-made products that were made legal in the 2018 farm bill. (Just this week, the Justice Department took the unusual step of reclassifying medical marijuana from a highly restricted Schedule I drug to a much less restricted Schedule III drug.)

“Congress has already settled on the issue,” said Cory Harris, a marijuana industry lobbyist, referring to Paul’s unsuccessful attempt to strip out the hemp-language in November’s spending bill. 

Harris said hemp contains cannabinoids and he hoped Congress would not consider hemp “a less intoxicating cousin” to marijuana.

While producers of hemp-THC infused products like Kopperud hope to counter a looming threat to their businesses in the farm bill next week, Harris said there’s no chance of that happening.

“I don’t see any changes to hemp policy being made on the floor in the farm bill,” he said.

The nation’s alcoholic beverage makers, who have seen sales drop as young Americans drink less alcohol, also joined the marijuana lobby in trying to rein in THC-beverage and edible manufacturers.

If the reclassification of hemp goes into effect Nov. 13, Minnesota consumers will still be able to purchase THC-infused drinks and gummies. But big retailers like Target will no longer have them on their shelves.

And selection of these products will be limited.

For Kopperud, who now sells his beverages in 18 states, the new ban on interstate commerce would be devastating.

Related: Hemp industry fighting federal ban with bills to regulate, not outlaw, THC gummies and drinks

Manufacturers of THC-infused beverages and gummies in Minnesota would also face hurdles securing financing and access to capital since they would be manufacturing products that are illegal under federal law.

And the federal alcohol licenses of breweries that make many of the THC-infused drinks and distributors might also be at risk.

There’s talk of having a carveout from the new restrictions for THC-infused beverages. Harris said that “over time” that might happen, but not before the new restrictions are put in place in November.

Meanwhile, Kopperud and others in his industry are hoping consumers of their products are lobbying lawmakers. And they are preparing for the worst.

“People will go bankrupt,” Kopperud predicted. “This is an economic extinction and it is coming.”

In other news:

▪️ State government reporter Cleo Krejci has a story about the onslaught of lawsuits spawned by Operation Metro Surge and what happened to them. 

▪️ Rep. Angie Craig, D-2nd District, a master campaign fundraiser, has benefited from donations collected for her by the American Israel Public Affairs Committee (AIPAC), as have many lawmakers. But a growing number of Democrats are distancing themselves from that pro-Israel lobby.

▪️ The Minneapolis City Council might not agree on much, but Metro reporter Trevor Mitchell found that they were united on one thing – they would like to approve the mayor’s appointments.  

▪️ Data reporter Shadi Bushra writes about a Lakeville-area programmer who has created an app that summarizes bills in the state Legislature into plain English and translates them into more than 30 languages to promote greater civic engagement. 

Please send any comments or questions. I’ll try my best to respond. Please contact me at aradelat@minnpost.com.

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