Rhode Island Lawmakers Consider Hemp-Derived THC Beverage Bill

Categories: Rhode Island Business NewsRhode Island News

Liquor stores in Rhode Island are adapting to new hemp-derived THC beverage regulations.

News Summary

Rhode Island lawmakers are currently reviewing a bill proposed by Representative Jacquelyn Baginski that aims to regulate the sale of hemp-derived THC beverages in liquor stores, bars, and restaurants. The legislation seeks to allow beverages containing up to 5mg of delta-9 THC, while increasing licensing fees for liquor wholesalers and establishments. Concerns have risen among the hemp industry about potential disadvantages and public safety risks compared to cannabis regulations. As discussions continue, both hemp and cannabis stakeholders are wary of the bill’s implications on their businesses and consumer safety.

Providence, Rhode Island — Rhode Island lawmakers are deliberating on a new bill that seeks to regulate the sale of hemp-derived THC beverages, which have been available in liquor stores since late summer 2024. The legislation is receiving mixed reactions, with cannabis cultivators and retailers expressing concerns about the implications of these changes.

The proposed legislation, introduced by Representative Jacquelyn Baginski, aims to legalize the sale of beverages containing up to 5mg of delta-9 THC in liquor stores, bars, and restaurants. In addition, the bill outlines plans to increase the licensing fee for liquor wholesalers from $500 to $1,500 and mandates an annual fee of $250 for bars and restaurants that wish to sell these products.

Currently, Rhode Island is home to over 120 hemp retailers and distributors, as well as seven cannabis dispensaries that pay a significantly higher yearly licensing fee of $30,000 to sell THC products. The difference in licensing costs has contributed to frustrations among those in the hemp industry, who argue that the proposed regulations will put them at a disadvantage compared to their alcohol-based counterparts.

While the legislation has gained support, including a companion bill from Senator Robert Britto, critics argue that it allows the liquor industry to bypass stricter regulations that cannabis retailers must adhere to. There are concerns regarding the potential for public safety risks due to a lack of stringent testing and labeling requirements for hemp-derived THC products compared to those made from cannabis.

Industry experts, like Magnus Thorsson from Johnson & Wales University, have pointed out the inconsistencies in the regulatory landscape for hemp and cannabis products. Hemp has been federally legal since 2018; however, the sale of hemp-derived THC beverages in Rhode Island was illegal until just last year. Currently, cannabis-derived beverages remain available exclusively through licensed cannabis retailers, emphasizing the barriers that exist in the cannabis industry.

As THC beverages continue to capture consumer interest—reportedly accounting for 10% of revenue for some liquor retailers—the local liquor industry has expressed its confidence in handling these products safely. However, opponents of the legislation, including Cannabis Control Commission Chairperson Kimberly Ahern, have voiced concerns that the new bill could undermine existing cannabis regulations and further impact public health and safety.

Feedback from the hemp community has been notable, with hemp farmer Mike Simpson expressing disappointment over perceived disengagement from lawmakers during the legislative process. While Baginski recognized that she had not yet consulted with leaders in the hemp industry, she remains open to dialogues that may address their concerns.

The House Corporations Committee held a hearing on this bill on April 8, 2025, and further study on the proposed legislation is pending. Discussions surrounding this bill have ignited a wider conversation about the regulatory framework surrounding both cannabis and hemp-derived products in Rhode Island, highlighting the challenges and complexities of an evolving industry.

As Rhode Island evaluates this proposed regulation, stakeholders from both the hemp and cannabis sectors are left wary of the unknown ramifications it may have on their businesses, the competitive landscape, and the safety of consumers in the state.