California’s Governor Gavin Newsom has proposed emergency regulations that would ban any level of THC in hemp products sold in the state, which would decimate the industry.
On Friday, September 06, Newsom introduced new regulations developed by the California Department of Public Health (CDPH) aimed at limiting the sale of intoxicating hemp-derived products.
However, as has been seen increasingly regularly across the US in recent months, the bill would go much further, impacting the state’s entire hemp industry.
Under the new regulations, industrial hemp food, beverage, and dietary products intended for human consumption must have ‘no detectable THC or other intoxicating cannabinoids per serving’.
Furthermore, a new minimum age of 21 will be imposed for the sale of any hemp products, and the number of servings of hemp products will be restricted to five per package.
These regulations will take effect immediately upon approval by the Office of Administrative Law, requiring sellers to begin to implement purchase restrictions and remove consumable hemp products immediately.
According to the governor’s office, local state and law enforcement are set to ‘begin immediate enforcement action’.
“The Department of Cannabis Control welcomes these regulatory reforms,” said Nicole Elliott, Director of the Department of Cannabis Control.
“These rules are a critical step in ensuring the products in the marketplace align with the law’s original intent, and we are committed to working with our state partners to enforce state law.”
Conversely, the US Hemp Roundtable has criticized these new regulations, arguing that they are unnecessarily ‘throwing away nearly a quarter of a billion dollars in tax revenue’ from legitimate businesses.
“Today’s ’emergency’ action by Governor Newsom is a betrayal of California hemp farmers, small businesses, and adult consumers. After having supported AB 45, which created a sound regulatory framework for the manufacture and sale of hemp products, Newsom’s Administration fell on the job and failed to take any steps to enforce it.
“Now, instead of addressing legitimate regulatory concerns shared by all good actors in the cannabis space – such as establishing reasonable policies to keep intoxicating products out of the hands of children — Governor Newsom instead has proposed a complete retail prohibition on 90-95% of popular hemp products for adults, including most non-intoxicating CBD products that he purports to support in his public communications.
“We will be exploring all legal options in the coming days with California hemp farmers and businesses that comprise the multi-billion-dollar industry that this action would destroy.”
It comes just weeks after a similar campaign to ban the sale of hemp products was seemingly shelved for the legislative session.
On August 15, the state’s hemp industry urged legislators to vote ‘no’ on Assembly Bill 2223, amid expectations it was set to be brought up for a Senate vote before the end of the week.
Earlier in the week, the Senate Appropriations Committee reviewed the bill’s financial impact and put it on a list for potential votes. However, during the Thursday hearing, the committee chair didn’t call for a vote, effectively stopping the bill from progressing this year.
Assembly Bill 2223 in California aimed to regulate the incorporation of industrial hemp into cannabis products. The bill allows licensed cannabis businesses to manufacture, process, and sell products containing hemp, provided they comply with state laws.
It also imposed stricter guidelines on hemp products, including THC limits, and bans synthetic cannabinoids unless authorized. Additionally, the bill mandates registration for out-of-state hemp manufacturers and introduces penalties for violations.
