California Gov. Newsom Rules Restrict Hemp, Industry Reacts

California Governor Gavin Newsom made a sudden move on Friday, proposing emergency regulations that could severely affect the state’s large hemp derived products industry.

The governor’s regulations would impose stricter limits on intoxicating hemp products, including banning detectable THC, capping servings per package at five, and setting a minimum purchasing age. The industry is alarmed.

A Sudden Move

Newsom’s proposal comes shortly after the state halted a previous hemp regulation bill, Assembly Bill 2223. That bill, which aimed to regulate hemp-derived cannabinoids, was stopped after backlash from the industry, which accused regulators of aligning with large cannabis companies.

Now, just weeks later, Newsom’s emergency regulations are shaking the industry again. This time, the governor is justifying the measure as a step to protect children.

“We will not sit on our hands as drug peddlers target our children with dangerous and unregulated hemp products containing THC at our retail stores. We’re taking action  to close loopholes and increase enforcement to prevent children from accessing these dangerous hemp and cannabis products,” Newsom stated.

Read Also: In Just 3 Months California Seized Over $53M In Illegal Cannabis, Gov. Newsom Announces More ‘Aggressive Actions’

New Rules

Under the proposed rules, products containing intoxicating cannabinoids must contain no detectable THC and packages need to be limited to five servings. The new regulations also set a minimum age of 21 for purchases. Once approved by the Office of Administrative Law, the rules will take effect immediately, requiring retailers to remove non-compliant products from their shelves.

California, which has a significant hemp market, has seen an influx of intoxicating hemp products in smoke shops and convenience stores.

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Regulations Will Hurt Hemp Industry

The proposed regulations have sparked outrage among hemp industry leaders, who see it as a direct threat to their businesses. 

Case Mandel, CEO of Cannadips, spoke exclusively to Benzinga about the potential impact.

“This will destroy our business,” Mandel said. He explained that even though many of Cannadips’ products are THC-free, they come in packages of 15 servings, which would make them illegal under the new rules. He also pointed out that the new regulations could hurt products containing CBN, which may have residual THC.

“This will also attack the full-spectrum CBD industry that has provided high-quality products that people rely on in the state of California,” Mandel added.

He also explained that the new rules will prohibit his company from manufacturing these products, even if they are not sold in California.

“We can understand passing laws that affect what can be sold in CA. What we don’t understand is why they affect what can be manufactured and sold legally nationwide. We ask that Gavin Newsom wises up and looks for legislation that actually represents his objectives, not private interests,” Mandel said.

Key Takeaways From The Proposed Hemp Regulation

The regulations limit each package of hemp products to five servings and a mandate that each serving contain no detectable THC.
A wide range of intoxicating cannabinoids, including THC-O, delta-8, and THCV, are classified under the same restrictions as delta-9 THC.
Products must comply with stringent testing requirements, and manufacturers are required to provide documentation to confirm THC levels are within the legal limits.

Photo: Benzinga edit with images by Bureau of Reclamation via Wikimedia Commons and Rob Warner on Unsplash