Beverage Regulatory Parity Act: What It Means for MN
Update (Oct. 2026): Congress has delayed most of the federal hemp change. H.R. 6500 (the Continuing Appropriations and Extensions Act, 2027) passed the Senate on Aug. 8, 2026, and the House on Sept. 1, 2026 (370-48), and was signed on Sept. 2, 2026. Most of the new federal hemp definition, including the 0.4 mg total THC per-container limit, now takes effect Dec. 11, 2026, not Nov. 12. One narrow part still starts Nov. 12, 2026: products containing cannabinoids that the cannabis plant cannot naturally produce. Minnesota's own lower-potency hemp law does not change on either date. For the current picture, see our December 11 explainer and THC drinks in Minnesota. Educational information, not legal advice.
A new piece of federal legislation landed on August 10, 2026 that could permanently reshape the future of hemp-derived THC beverages in Minnesota and across the country. Representatives Beth Van Duyne (R-TX) and Greg Landsman (D-OH) introduced the Beverage Regulatory Parity Act, a bipartisan bill that would carve hemp THC drinks out of the scheduled federal ban and place them under a regulatory framework modeled on the existing alcohol industry.
For Minnesota, where hemp-infused sparkling waters, seltzers, and shots have become a fixture on liquor store shelves and in taprooms from Minneapolis to Duluth, the bill is a critical development. It arrives two days after the Senate voted 61-32 to delay the broader hemp ban from November 12 to December 11, 2026, buying the industry roughly one month of breathing room. The Beverage Regulatory Parity Act goes further: it proposes a permanent legislative home for these products rather than another temporary delay.
What the Bill Actually Does
The Beverage Regulatory Parity Act would allow hemp-derived beverages containing up to 5 milligrams of total intoxicating THC per serving to be sold legally to adults 21 and older. Rather than leaving THC drinks outside the federal hemp definition under Section 781 of the November 2025 federal appropriations law (P.L. 119-37), the legislation would subject them to a three-tier distribution system, the same structure that has governed beer, wine, and spirits for decades.
Under that three-tier model, producers would need to obtain federal permits, distributors would handle wholesale movement of product, and retailers would need appropriate licenses to sell to consumers. The bill would place TTB (the Alcohol and Tobacco Tax and Trade Bureau) and the FDA in shared regulatory roles, similar to how those agencies already oversee certain alcohol-adjacent products.
Key provisions include:
- 5 mg THC cap per serving and limits on total THC per container
- Age verification requirements at point of sale, mirroring alcohol rules
- Mandatory labeling for potency, ingredients, and serving size
- Three-tier distribution through licensed wholesalers
- Federal permitting for producers and importers
Products with cannabinoids the cannabis plant cannot naturally produce are excluded. Under the enacted funding bill, that narrow category still falls outside federal hemp starting Nov. 12, 2026. Everything else waits until Dec. 11.
Why Minnesota Is Watching Closely
Minnesota has one of the most developed hemp-derived THC beverage markets in the country. The state legalized hemp-derived THC products in 2022 and then built a detailed state regulatory structure through the Office of Cannabis Management and the 2023 legalization law. By mid-2026, hemp THC drinks were legal to sell at licensed liquor stores, convenience stores, and certain on-sale establishments, subject to state potency limits and packaging rules.
Twin Cities Business reported this week that Minnesota cannabis and hemp businesses are still navigating significant growing pains, including lab testing backlogs that only recently improved to the OCM's 10-day turnaround standard. But the beverage segment has been comparatively stable, with brands like Artet, Cann, Wynk, and dozens of smaller Minnesota producers building real distribution networks.
A federal ban, even a delayed one, threatens all of that. Businesses that have invested in production equipment, retail shelf space, and distribution relationships cannot simply pivot overnight if December 11 arrives without a fix. That is why the Beverage Regulatory Parity Act matters: it offers a path to permanence rather than a countdown clock.
Minnesota-based retailers and producers have also had to navigate a patchwork of state and federal signals. The state's own cannabis legal framework has been updated multiple times, most recently through the 2026 omnibus that doubled edibles limits and introduced a new ratio hemp category. A federal framework for beverages that aligns with Minnesota's existing rules would reduce that friction significantly.
The Broader Legislative Picture
The Beverage Regulatory Parity Act does not operate in isolation. Congress was then working through a budget continuing resolution that included the Section 781 delay to December 11. That CR (H.R. 6500) passed the House 370-48 on Sept. 1, 2026, and was signed on Sept. 2, 2026. The beverage carve-out bill, meanwhile, is a separate standalone bill and has not passed.
Nothing But Canna, a hemp industry outlet, took a critical view of the bill, arguing that a beverages-only carve-out picks winners among hemp product categories and does nothing for edibles, tinctures, or flower producers who also face the December deadline. That critique reflects a real tension in the industry: some stakeholders want a full fix of Section 781 that preserves all hemp cannabinoid products, while others will take a beverage-specific win if that is what Congress can pass.
MJ Biz Daily reported this week that hemp operators are increasingly hopeful about the beverage exemption, noting that the drinks segment has attracted the most mainstream retail and investor interest, making it politically easier to defend than other product forms.
Forbes described the Beverage Regulatory Parity Act as protecting what is effectively a $28 billion industry, a figure that includes national sales of all hemp-derived ingestible products but reflects just how large the stakes have become.
What Minnesota Dispensaries and Retailers Should Do Now
For licensed Minnesota dispensaries and other retailers currently carrying hemp THC beverages, the practical advice has not changed: do not make major inventory or purchasing decisions based on proposed legislation that has not passed. Most of the federal change takes effect Dec. 11, 2026, and the Beverage Regulatory Parity Act has not passed.
That said, businesses should:
- Plan around Dec. 11, 2026. The continuing resolution with the December 11 delay (H.R. 6500) was signed on Sept. 2, 2026. The Beverage Regulatory Parity Act is a separate standalone bill and has not passed.
- Avoid overstocking on hemp beverage inventory that could become unsaleable if federal law changes on the deadline date without a fix in place.
- Consult with a cannabis attorney familiar with both Minnesota's OCM rules and federal hemp law before making major capital commitments tied to the beverage category. See our legal resources page for guidance.
- Check OCM guidance. OCM updated its hemp guidance on Sept. 3, 2026, after the delay was signed.
- Engage trade associations. The Minnesota Hemp Association and national groups like the U.S. Hemp Roundtable are actively lobbying on this issue. Member businesses can influence the outcome by participating.
Retailers in cities like Minneapolis and Saint Paul that have built significant shelf presence around hemp beverages have the most at stake and also the most visibility with elected officials. Consumer demand data from those markets is one of the strongest arguments advocates can make to members of Congress.
The Alcohol Regulation Model: A Closer Look
The three-tier system the Beverage Regulatory Parity Act proposes to apply to hemp drinks is well understood by most Minnesota retailers. Any business that currently holds a liquor license is already operating inside that framework for beer, wine, and spirits. Adding a new federally permitted beverage category would mean additional paperwork and possibly new state licensing coordination, but it would not require building an entirely new compliance infrastructure from scratch.
Minnesota's own approach to hemp beverages has already anticipated some of this. The OCM has treated hemp THC drinks more like regulated edibles than like raw cannabis flower, with strict per-serving and per-container limits that mirror what the Beverage Regulatory Parity Act would impose at the federal level. If the bill passes, Minnesota regulators would need to reconcile state rules with the new federal framework, but the two are not dramatically misaligned.
One area of potential friction: Minnesota currently allows hemp beverages to be sold in some venues that do not hold full liquor licenses, such as certain cafes and event spaces. A federal three-tier framework administered by the TTB could narrow that distribution universe, requiring a licensed wholesaler in the chain for every sale. Businesses operating in that gray zone should be watching this closely.
What Happens if Nothing Passes
Congress passed the CR extension (signed Sept. 2, 2026), so naturally derived hemp THC drinks above 0.4 mg total THC per container will no longer count as federal hemp starting Dec. 11, 2026. The Beverage Regulatory Parity Act has not passed. Minnesota's own lower-potency hemp law does not change, but OCM says businesses selling products above the federal limit may face limits on interstate commerce, federally insured banking, point-of-sale services and federal tax deductions (OCM, Sept. 3, 2026).
That could complicate supply for Minnesota retailers that rely on out-of-state manufacturers, since OCM lists limits on interstate commerce among the possible effects. In-state manufacturers with vertically integrated supply chains might have more flexibility, but even they would face legal uncertainty.
The Minnesota OCM issued guidance on Sept. 3, 2026: the federal change does not change how Minnesota law defines lower-potency hemp edibles or their legality in the state, but many products that comply with Minnesota law will become federally noncompliant. Check the MN Cannabis Hub news section for updates as guidance emerges.
The Path Forward
When this article was first published on Aug. 12, 2026, the Beverage Regulatory Parity Act had just been introduced and still needed to be referred to committee, gather co-sponsors and find a floor vehicle. It has not passed.
The CR with the December 11 delay (H.R. 6500) was signed on Sept. 2, 2026. Several industry observers have noted that the bill's introduction signals that at least some House members are willing to defend the beverage category legislatively.
Minnesota's congressional delegation has been active on hemp issues. Senator Amy Klobuchar co-authored the Hemp Planting Predictability Act that became the basis for the Senate CR language. As of August 2026, Minnesota's House members had not publicly weighed in on the Beverage Regulatory Parity Act.
FAQ
What is the Beverage Regulatory Parity Act? The Beverage Regulatory Parity Act is a bipartisan bill introduced on August 10, 2026 by Representatives Beth Van Duyne (R-TX) and Greg Landsman (D-OH). It would permanently exempt qualifying hemp-derived beverages from the federal hemp ban and regulate them through a three-tier system similar to how alcohol is distributed and sold.
How much THC would be allowed in hemp beverages under this bill? The bill would allow up to 5 milligrams of total intoxicating THC per serving in qualifying hemp beverages. Products would also be subject to per-container THC limits and mandatory labeling requirements.
How does this relate to the December 11 deadline? Congress passed, and the President signed on Sept. 2, 2026, a continuing resolution that delays most of the hemp-derived THC product ban from Nov. 12 to Dec. 11, 2026. The Beverage Regulatory Parity Act is a separate, standalone bill that would create a permanent exemption for hemp drinks, but it has not passed.
Are hemp THC drinks still legal to buy in Minnesota right now? Yes. Hemp-derived THC beverages that comply with Minnesota OCM rules remain legal under Minnesota law. The main federal change takes effect Dec. 11, 2026.
Which Minnesota retailers would be most affected if the ban takes effect? Liquor stores, craft breweries, taprooms, and specialty retailers that have built shelf space and revenue around hemp THC beverages would be most immediately affected. Retailers in the Twin Cities metro carry the highest volume, but the products have spread statewide through both independent shops and regional chains.
Would the three-tier system create new costs for Minnesota hemp beverage businesses? Likely yes, at least initially. Producers would need federal permits, and sales would need to flow through licensed distributors. Businesses currently selling direct-to-retail would need to add a distribution layer. Brands that already work with distributors may see a smaller practical change.
Where can I follow updates on this legislation? The MN Cannabis Hub news section will cover developments as they happen. You can also track the bill directly through Congress.gov once it receives an official bill number, and follow the U.S. Hemp Roundtable and Minnesota Hemp Association for industry-level updates.