A ban on intoxicating hemp goods in California that went into effect this week has formally drawn legal opposition, with the U.S. Hemp Roundtable and several hemp companies filing suit in Los Angeles Superior Court in an attempt to overturn the new rules.
California Gov. Gavin Newsom implemented the ban via new emergency rules through the state Department of Public Health after an attempt at a bill failed to garner enough votes to pass during the legislative session. The new rules went into effect on Monday and prohibit any detectable THC in hemp-derived foods or beverages, along with several other new mandates.
In its 107-page lawsuit, the Hemp Roundtable and other stakeholders – which include Cheech and Chong’s hemp brand and five other companies – claim the new emergency rules violate both federal and state law by overreaching.
The lawsuit points out that the California Legislature already approved a bill to regulate hemp goods in 2021, Assembly Bill 45, and that the new emergency rules from Newsom “goes far beyond the limits contemplated in AB 45 to ban all hemp products unless they contain no ‘detectable levels of THC.’”
“These emergency regulations contradict express California and federal law,” the suit charges.
The suit requests a temporary injunction preventing the rules from being enforced and a court order declaring the new rules unconstitutional. The suit argues that the plaintiff companies will lose “millions of dollars” if they’re prevented from carrying out what they contend are federally legal operations under the 2018 Farm Bill.
One of the plaintiffs, Blaze Life, even invested $20 million into a new hemp beverage production facility, the suit notes, adding that the new rules would make the facility – and the businesses of other plaintiffs – “worthless.”
“If allowed to remain in effect, the emergency regulations will eliminate nearly every ingestible hemp product currently for sale in California, including the vast majority of non-intoxicating products, and even though some products subject to the emergency regulations are not sold in California. Many small businesses will have to close operations immediately with millions in losses,” the suit claims.
In an emailed statement, Hemp Roundtable attorney Jonathan Miller added, “We are confident that the courts will agree that the governor does not come close to demonstrating an ’emergency’ exists, and the devastation that he would unleash on hemp farmers, small businesses and product consumers must be forestalled.”
Miller added that his clients stand ready and willing to work with regulators to develop industry rules that will aid businesses while also protecting minors from intoxicating goods, Newsom’s stated aim with the new rules.
The governor’s office and the department of public health both declined to comment, citing the pending nature of the litigation.
Cheech and chong vs California on hemp
[[{“value”:”The group contends that if the emergency rules are allowed to go into effect, they will effectively ban all ingestible hemp products in the state.
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