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California’s Governor Gavin Newsom has proposed legislation to ban hemp products containing any traces of THC, with stakeholders arguing that the regulations would jeopardize the state’s hemp industry.

Last week, Governor Newsom introduced new emergency regulations stating that “industrial hemp food products intended for human consumption” must have “no detectable amount of total THC” and “no more than five servings per package.” The rules would also prevent individuals under 21 from purchasing any hemp-based food products.

Gov. Newsom explained that the purpose of this measure is to protect young people from the harmful health effects of unsafe hemp products. It is a response to a rise in health incidents tied to intoxicating hemp products, particularly beverages and foods, that state regulators have found being sold throughout California, emphasizing that children are especially vulnerable if they consume these products.

“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 product,” Gov. Newsom said in a press statement.

However, hemp associations have opposed the measure, claiming it threatens the future of the state’s hemp industry.

The hemp business advocacy organization Hemp Roundtable’s General Counsel, Jonathan Miller, said in a press statement that the “emergency” action by Gov. Newsom is a betrayal of California hemp farmers, small businesses, and adult consumers, remarking that the organization supported AB 45, a California legislation passed in 2021 that legalized CBD in food, beverages, cosmetics, dietary supplements, and pet food, but they said that Newsom’s Administration fell on the job and failed to take any steps to enforce it.

Jonathan Miller, General Counsel for the U.S. Hemp Roundtable, a hemp business advocacy organization, criticized Governor Newsom’s “emergency” action as a betrayal of California hemp farmers, small businesses, and adult consumers. In a press statement, Miller noted that the organization supported Assembly Bill (AB) 45, the 2021 California legislation that regulated CBD in food, beverages, cosmetics, dietary supplements, and pet food. However, he claimed that Newsom’s administration has failed to enforce this law effectively.

“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,” Miller said.

California became the first state to legalize medical cannabis in 1996, and in 2016, it also legalized the substance for adult use.

Intoxicating hemp products spread across the country following the 2018 Farm Bill, which legalized the cultivation and manufacture of hemp-based products with a THC threshold of 0.3%. Exploiting what is considered a loophole in this legislation, producers began creating hemp-derived or synthesized products with higher THC levels, resulting in effects similar to those of adult-use cannabis. As a result, products such as delta-8 THC and THC-O have become widely available in smoke shops, gas stations, and other retailers in recent years.

However, Gov. Newsom’s emergency regulations expand the definition of THC to include intoxicating hemp products. Although federal law allows hemp-derived products to have up to 0.3% THC, Gov. Newsom’s rules set a 0% threshold. In fact, under these new regulations, manufacturers must submit documentation, including a certificate of analysis from an independent lab, to confirm that the total THC content per serving does not exceed the specified limits.

Once the regulations receive approval from the state Office of Administrative Law, they will take effect immediately. Following this, sellers will need to adjust their practices to comply with the new rules and remove non-compliant hemp products from their shelves.

Gov. Newsom’s emergency rules follow the suspension of a controversial California bill, AB 2223, which sought to impose stricter THC limits on hemp products and ban synthetic cannabinoids. This bill, which could have banned up to 95% of hemp products from retail sale, according to the U.S. Hemp Roundtable, faced significant backlash from the hemp industry, which contended that it would harm small businesses while benefiting larger cannabis companies. Although the bill was scheduled for a Senate vote, it was not brought to the floor, effectively halting its progress for the legislative session.

Meanwhile, at the federal level, a proposed amendment to the 2024 Farm Bill aims to close the loophole created by the 2018 Farm Bill, potentially ending the gray market for intoxicating hemp-derived products such as delta-8 THC. The U.S. House Committee on Agriculture approved the amendment in May, which was introduced by Republican Rep. Mary Miller of Illinois. This amendment seeks to ban all hemp-derived cannabinoids, including delta-8 THC, semi-synthetic cannabinoids like HHC, and synthesized products such as THC-O, targeting the $28 billion gray market.

“}]] California’s Governor Gavin Newsom has proposed legislation to ban hemp products containing any traces of THC, with stakeholders arguing that the regulations would jeo…  Read More  

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