Earlier this week, new emergency rules went into effect in California that effectively banned a slew of consumable hemp-based goods. A lawsuit from prominent industry players quickly followed.
But they’re far from the only ones speaking out against new limitations on products that many contend were legalized by the 2018 Farm Bill. And California isn’t the only state trying to crack down on a largely under-regulated industry.
How far is too far?
The need for clearer regulations is broadly accepted. For example, the California Cannabis Industry Association said in an official statement that it “appreciates the state’s ongoing efforts to safeguard public health and better address the rapidly evolving cannabinoid market.” The group also acknowledged that the new rules “will help support youth prevention efforts and address other safety risks posed by unregulated, intoxicating products.”
However, the marijuana trade group noted the need for refinement of the rules “to ensure continued access to beneficial CBD products and provide a pathway for a more balanced approach to regulation of all cannabinoids – regardless of whether they’re sourced from hemp or cannabis.”
One of the most contentious aspects of the new rules is the requirement for hemp products to contain “no detectable amount of total THC.” The standard is stricter than the federal definition of hemp, which allows up to 0.3% delta-9 THC on a dry weight basis.
In a public comment submitted to the state Office of Administrative Law last week, the CCIA raised more specific concerns. The association argued that the proposed regulation prohibiting any detectable level of THC is “an untenable goal which disregards the natural components of hemp, restricts access to CBD products, and effectively continues the prohibition of the Cannabis sativa l. plant.”
Many in the hemp industry say that the near-zero tolerance policy will effectively outlaw many popular CBD products, even those that are non-intoxicating. According to Paige Figi, director of the Coalition for Access Now, Californians are “panic buying” high-CBD hemp goods, fearing they’ll soon be unavailable.
Charlotte’s Web Holdings (TSX: CWEB) (OTCQX: CWBHF) also spoke out against the “overreach” of the new rules, claiming, “Consumers who rely on non-intoxicating hemp products will face limited access as 57% of the cities and counties in the state do not allow any retail cannabis business.”
Gov. Gavin Newsom’s office defended the emergency regulations to the press, saying that consumers will still have access to THC-free hemp products or can purchase products containing both THC and CBD at licensed marijuana dispensaries. However, some have called that an oversimplification of market dynamics and ignores specific formulations that certain consumers rely on.
Beyond California
California isn’t alone in trying to tighten rules for the hemp industry in the absence of federal regulation.
In Georgia, new rules set to take effect on Oct. 1 will cap the amount of delta-9 THC in hemp products and prohibit the sale of hemp flower, according to Axios Atlanta. The state will limit gummies to 10 milligrams of delta-9 THC per serving and 150 milligrams per package, while beverages will be capped at 5 milligrams per serving.
Meanwhile, Missouri has been wrestling with how to manage its hemp industry. The state recently rolled back parts of a hemp ban implemented last month. Ultimately, the state’s health department said it would focus on “misbranded” products rather than all intoxicating hemp goods, effectively allowing many hemp-derived THC products to remain on the market.
And federal regulation might be on the table soon. Congressional lawmakers introduced the Cannabinoid Safety and Regulation Act on Wednesday with the hopes of creating a regulatory framework for hemp-derived cannabinoid products under FDA oversight.
In addition, a new Farm Bill is due from Congress that could include regulatory updates, but to date, no agreement has been reached on what exactly such a bill would include.
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The post California takes aim at hemp products, industry fights back appeared first on Green Market Report.”}]] Read More
