The hemp industry experienced two major setbacks when the Gov. Gavin Newsom banned store sales of hemp products laced with the hallucinogenic compound and a judge denied a request to stop the regulations.
SUSAN WOOD
THE NORTH BAY BUSINESS JOURNAL
October 29, 2024, 5:10PM
Updated 1 hour ago
3 minute read
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With a state court judge refusing to put a temporary halt on the ban on THC-laced hemp sold in stores, a nationwide advocacy group has proposed more measures to police itself.
The U.S. Hemp Authority announced Oct. 17 it will expand its five-year program to self-regulate a rapidly-growing segment of the hemp industry — so-called “intoxicating hemp” with THC.
The certification program was originally put into place in 2019 for nonintoxicating hemp.
The U.S. Hemp Authority, based in Washington, D.C., says it will hire a certifying body to provide independent, third-party auditing to ensure the integrity of the self-regulation program. Audits would verify that product contents are consistent with labeling.
No national oversight to ensure quality control, labeling and age restrictions currently exists for hemp products. Industry officials are stepping up attempts at self regulation in an attempt to reassure consumers and lawmakers that intoxicating hemp should be kept out of the hands of children.
“We’ve tried to show good faith for a long time,” U.S. Hemp Roundtable spokesman Kerry Hinkle said, adding industry stakeholders are “excited” about the expansion of the program.
The Adult Use Certification Program is conducting outreach to educate hemp producers.
“We intend to ensure the hemp industry regulates itself to increase safety and stability and to demonstrate to legislators and regulators that the industry is made primarily of good actors trying to bring quality products to consumers,” U.S. Hemp Authority President Chris Fontes said of the industry governing body anchored in Kentucky.
While the program expansion started in April, the gesture coincides with actions in California — in the executive branch and in court.
Gov. Gavin Newsom issued an emergency order on Sept. 6 declaring a ban of hemp sold in stores based on safety concerns over children getting their hands on the intoxicating variety.
The Roundtable, along with other advocates and companies such as Cheech and Chong Global Holdings of Nevada filed a legal complaint.
The collective insisted the ban would destroy the industry and in addition to the lawsuit filed a petition to at least temporarily halt the emergency regulations managed by the California Department of Public Health.
North Bay hemp suppliers such as Sunmed CBD, with retail outlets in Petaluma, Lafayette and Concord agreed.
Los Angeles Superior Court Judge Stephen Goorvitch decided sufficient evidence of irreparable harm to the industry didn’t exist in the filing and ruled on Oct. 10 against the legal challenge.
“Petitioners do not demonstrate that these regulations will cause widespread and catastrophic destruction of the hemp industry,” Goorvitch wrote in a 12-page order denying the request for the temporary restraining order. “As an initial matter, the court notes that at least half of (U.S. Hemp Roundtable) members operate outside California.”
Emergency regulations that went into effect Sept. 23 remain. Those rules pause sales of THC-laced hemp until a permanent solution is presented. For now, this means edibles and drinks infused with THC derived from hemp are disallowed in California.
What remains in question nationwide is what happens next with producers that ship their items across state lines following the 2018 Farm Bill. The Farm Bill, which has been stalled in U.S. Congress, legalized hemp consisting of less than 0.3% THC on a dry-weight basis on a national scale.
Industry stakeholders insist they aren’t against some form of regulation. The Roundtable has endorsed a bill introduced by U.S. Sen. Ron Wyden, D-Ore., with the goal of preventing those under the age of 21 from buying psychoactive products containing hemp derivatives.
California’s licensed and regulated cannabis industry allow for edible products limited to 10 milligrams of THC per serving and 100 milligrams of THC per package.
Susan Wood covers agriculture, law, cannabis, production, transportation as well as banking and finance. She can be reached at 530-545-8662 or susan.wood@busjrnl.com
