MARSHALL — A bill passed as part of the deal to end the federal government shutdown could have an impact on Marshall’s municipal liquor store, local retailers and other businesses that sell hemp-based THC edibles. However, local officials said it’s still a little early to see if a federal ban on THC products will stick around.

“I think we’re in a wait-and-see approach,” Marshall City Administrator Sharon Hanson said Friday. Hanson said the Marshall City Council has not yet had any discussions on a federal bill that prohibits hemp products containing more than 0.4 milligrams of THC, the psychoactive chemical in cannabis.

Marshall City Attorney Pam Whitmore said it’s important to keep in mind that the federal change is new, and the situation is evolving. The federal THC ban would take go into effect Jan. 1, with a one-year grace period ending December 31, 2026.

“So changes in enforcement are not likely to happen for a year,” Whitmore said. “I think it is reasonable to assume that the Minnesota Legislature will respond to this federal law change.”

However, if January 2027 gets closer and the new rules are still in place, the Marshall City Council will likely need to revise its code to address the changes, Whitmore said.

Whitmore said the federal changes focus on hemp, which is considered an agricultural product.

“The federal bill changes what products can be made from industrial hemp and will impact, as the Minnesota Legislature refers to them, lower-potency hemp edibles and hemp-derived consumer products, but at this point, not cannabis itself,” Whitmore said.

Whitmore said one of the most significant changes in the federal bill is a provision limiting the amount of THC per container of a product to 0.4 milligrams. Currently, Minnesota law allows lower-potency edibles to have 5 milligrams of THC per serving.

“This limit may not impact certain CBD products, which are generally considered nonintoxicating, but will impact products that contain THC and are considered intoxicating,” Whitmore said.

A ban on hemp-based THC products could potentially impact local retailers, bars and brewers. Marshall’s municipal liquor store sells both THC beverages and edibles. Marshall City Clerk Steven Anderson said smoke shops like Roll N’ Smoke and the Marshall Smoke Shop had registered with the city to sell lower-potency THC products, and the Gambler had also registered to be able to serve THC beverages. The Brau Brothers Brewing Company in Marshall launched their own THC-infused sodas in 2023.

“We’re really not sure where that will land,” Eric Luther, manager of Tall Grass Liquor in Marshall, said of the new federal rules on THC products.

Luther said the new bill could especially impact sales of THC-infused beverages at the liquor store. Currently, those beverages make up around 2 to 3% of the store’s overall sales.

“And that’s a higher-margin item,” Luther said of THC drinks.

Tall Grass Liquor began selling THC products in 2023. Luther said the national trend among younger generations has been less toward alcohol purchases, and more toward other products, including THC beverages.

Luther said it was frustrating to see a sudden rule change for lower-potency THC products, after building up that portion of the business.

It was still a little early to see if the federal changes stick, Luther said. However, if more time goes on with the bill still in place, he might have to make adjustments to Tall Grass’ inventory.

“I do know that firms that produce THC products are looking at lobbying for federal legislation to correct this,” Hanson said.

The Minnesota Star Tribune reported Friday that groups representing hemp businesses and brewers are preparing for lobbying efforts agains the THC ban.

Paul Kaspszak, executive director of the Minnesota Municipal Beverage Association, said Friday that the MMBA encouraged its members, and members of the public, to contact state and national lawmakers about the federal THC changes.