Jean Cronin, Executive Director, CT Package Stores Association
By Jean Cronin, Executive Director, CT Package Stores Association
The longest running government shutdown in United States history concluded in November. Although it took quite a while, a compromise was finally reached and voted on by Congress. The continuing resolution not only reopened the government, but it contained a provision that will close the door on a new product that many have seen as a lifeline, while others see it as a market that never should have opened.
The measure to end the government shutdown contained language that according to the senator that inserted the language in the bill, is “closing the loophole” from the 2018 hemp farm bill. Sen. Mitch McConnell (R-Kentucky) proposed the federal ban on THC hemp that will take effect in November of 2026. The senator cited the different patchwork of state laws that have been enacted to regulate this market, while other states have not taken any steps to regulate it and as a result have allowed certain businesses to create THC products that have fallen into the hands of children and caused health implications.
The ban is projected to cost states $1.5 billion in lost tax revenue, according to the U.S. Hemp Roundtable group. In addition to the loss in tax revenue, an estimated 300,000 jobs could be lost because of the ban. Alcohol manufacturers have been gearing towards THC seltzers because of the significant drop in alcohol-related sales over the last few years.
Many manufacturers, wholesalers, and retailers have seen the rise of THC-infused beverages as a new market that has helped to offset some of the loss in sales of certain alcohol-related products. One of the most impacted states is Minnesota, which was a leader in the creation of a THC-infused beverage regulatory framework that has helped other states create their own model. A significant number of THC seltzer manufacturers are based in this state.
There is a one-year delay before the federal THC hemp ban takes effect. Federal lawmakers are already attempting to create a regulatory framework for the product. The goal is to create restrictions that would impose a minimum age of 21 to purchase and consume, a ban on synthetic-derived THC, and a ban on marketing towards children. Congressional members have indicated that they would like to create these federal restrictions or allow the states to set up regulatory structures, rather than banning the product.
Here in Connecticut, CPSA advocated and worked with the General Law Committee leadership to establish a structure for the sale of THC-infused seltzers in package stores. They created an additional endorsement that package stores could purchase to sell the product, and imposed a one-dollar tax per can to fund the enforcement activity. The committee originally drafted a bill that would have completely removed the seltzers from sale in package stores and only allowed them to be sold in dispensaries.
CPSA was successful in lobbying the General Assembly to allow package stores to continue to sell the product with a framework in place. CPSA will be working with state agencies and the General Assembly in 2026 to figure out an answer to the federal ban on these products. Members will be updated on these discussions to allow THC seltzers to continue to be sold in their stores.
Jean Cronin is the President of Hughes & Cronin Public Affairs Strategies, where she is responsible for developing and implementing legislative initiatives for the firm’s clients, and directing a variety of trade and professional associations managed by the firm. Cronin joined the firm in 1986 after serving as a communications strategist for the Connecticut Senate Majority Office, where she became well-versed in the politics and insight of the State Capitol. She is the Executive Director of the Connecticut Package Stores Association, following the passing of longtime director, Carroll J. Hughes.
