Sen. Julie Gonzales, D-Denver, decided on Tuesday to pull one of her bills, which would have allowed certain THC beverages to be sold at locations like grocery stores, restaurants, and entertainment venues.

Senate Bill 164 would have established a regulatory framework for the manufacture, distribution, sale, and consumption of THC beverages, which are infused with the psychoactive compound found in the cannabis plant and have an intoxicating effect.

Colorado already allows for the sale of hemp beverages with up to 1.75 milligrams of THC to be sold in liquor stores. Senate Bill 164 would have increased that cap to 10 milligrams and allowed THC beverages to be sold wherever alcohol is legally available.

According to Gonzales, both Minnesota and Tennessee allow for the sale of THC beverages for on-premises consumption.

Additionally, the bill directed the Colorado Department of Public Health and Environment to adopt rules on labeling, packaging, and consumer notice requirements for THC beverages and to set licensing requirements.

“This bill seeks to establish Colorado as a leader in this industry by creating a clear and responsible regulatory framework for the sale of these beverages at restaurants, bars, music venues, and more,” Gonzales told the House Finance Committee on Tuesday.

Bill is ‘fundamentally a giveaway to out-of-state hemp companies,’ opponents say

Dawn Reinfeld of the youth advocacy organization Blue Rising expressed concerns about the ease with which children could get their hands on THC beverages if they’re sold at places like restaurants and grocery stores.

“We hear from parents that it is easy to walk into a grocery store and stroll out with alcohol, so why would these intoxicating THC substances be any different?” she asked.

State law prohibits alcohol from being sold with marijuana products, and Reinfeld argued THC beverages should be regulated the same way.

Young people are already being subjected to “misinformation” about marijuana, she added.

“To add into this toxic mix another intoxicating substance that is allowed to operate outside of the regulated marijuana market will compound this issue.”

Representatives from the marijuana industry were also concerned about the bill. Adam Foster of the Responsible Cannabis Coalition called the measure a “ploy” by out-of-state hemp companies to sell intoxicating THC products in Colorado while avoiding the state’s regulations and taxes on the marijuana industry.

“We ask that you stick with the common-sense idea that all intoxicating THC products should be regulated the same under Colorado law,” Foster told the committee.

THC beverages offer an opportunity to recover lost revenue, supporters say

THC beverages do not compete with marijuana, said Christopher Lackner of the Hemp Beverage Alliance. If anything, they compete with alcohol, which is seeing record-low consumption rates.

“They’re enjoyed like alcohol, they’re marketed and sold to 21-plus adults like alcohol, and the price point and experience is like alcohol,” Lackner said.

THC beverages provide a modern alternative to alcohol, said Paige Ross of Flying Kites, a THC beverage company based in Iowa.

As alcohol consumption hits a 90-year low and the state faces a financial deficit, THC beverages could provide a new revenue source for Colorado.

“By passing this bill, Colorado can supplement that declining tax base with a modern alternative,” Ross said.

The industry is asking to be regulated, Ross added.

“We are not asking for an advantage over marijuana. We would love a level playing field. We believe THC beverages, regardless of the source, be it hemp or marijuana, should be held to the same rigorous safety standards as any other adult product in Colorado.”

‘What is lacking is political will’

Gonzales acknowledged the “energy, momentum, and interest” in the policy over the past several months.

However, she didn’t feel she had the votes to pass the bill.

“What is lacking here is not interest; what is lacking is not expertise; what is lacking is political will,” she said.