California Governor Newsom Proposes Emergency Regulations Banning THC in Hemp Products

California Governor Gavin Newsom announced on Friday the introduction of emergency regulations aimed at banning THC, the psychoactive compound found in cannabis, from all hemp products across the state. The new measures, proposed by the California Department of Public Health (CDPH), would require that industrial hemp food, beverages, and dietary supplements intended for human consumption be entirely free of THC and other cannabinoids.

The governor’s move comes in response to growing concerns about unregulated hemp products, which can easily be purchased online or at gas stations and convenience stores throughout California. These products, often marketed with little oversight, are seen as posing significant risks, especially to children. Newsom emphasized that the emergency regulations are necessary to protect young consumers from harmful substances.

As part of the proposed rules, all hemp products in California would be required to have “no detectable amount of total THC.” Additionally, the state aims to enforce a minimum age requirement of 21 for purchasing hemp products. These regulations must first receive approval from the California Office of Administrative Law before they can be enacted.

Industry Stakeholders Express Concerns Over New Regulations

The announcement of the emergency regulations prompted a swift reaction from California’s hemp industry stakeholders, who expressed deep concerns about the potential impact on businesses and consumers. The U.S. Hemp Roundtable, an industry advocacy group, was quick to criticize the proposed ban, calling it a blow to local farmers, small businesses, and adult consumers.

Industry representatives argue that instead of targeting the entire hemp sector, the state should focus on specific policies that prevent minors from accessing intoxicating products. There is concern that this approach, rather than enforcing responsible sale practices, could have devastating consequences for the broader hemp market.

The economic impact of the ban was also highlighted by industry groups, who pointed to the loss of substantial tax revenue generated by legitimate hemp businesses. In a state facing large budget deficits, some stakeholders see the governor’s action as unnecessarily punitive, risking hundreds of millions in tax revenue while failing to address the core problem.

California Hemp Businesses at Risk

Among the hardest-hit businesses would be Cannadips, a company specializing in THC-free CBD products. Case Mandel, CEO of Cannadips, expressed his concern that the new regulations could destroy his business. While Cannadips’ products do not contain THC, the company packages its items in sizes that exceed the five-serving limit outlined by the proposed rules. This would render their products non-compliant, despite their THC-free status.

The broader full-spectrum CBD market, which relies on the inclusion of a variety of cannabinoids (including minimal THC), could also be impacted by the new regulations. Full-spectrum products have become popular for their purported health benefits, and Mandel expressed concern that the new measures would undermine the quality of CBD products available to consumers.

Stakeholders like Mandel are particularly perplexed by the reach of the proposed regulations, which would affect not only what is sold within California but also what can be legally manufactured in the state for sale nationwide. Many in the industry are calling for a more thoughtful approach that balances public health concerns with the needs of California’s hemp businesses.

Looking Ahead: Legal Challenges on the Horizon

The proposed ban on THC in hemp products has set the stage for a legal battle. Hemp industry advocates, including the U.S. Hemp Roundtable, have indicated that they are exploring all available legal avenues to challenge the regulations. The potential harm to California’s multi-billion-dollar hemp industry has galvanized businesses and stakeholders to take action.

As the draft regulations await approval, the future of hemp-derived products in California remains uncertain. While the governor’s office aims to protect children from potentially dangerous substances, industry leaders warn that the emergency regulations could decimate a sector that has brought innovation, jobs, and revenue to the state. Whether through negotiation, legal action, or legislative reform, the outcome of this regulatory battle will have far-reaching consequences for California’s hemp industry and its consumers.

Readers are encouraged to review Governor Newsom’s full press release and the draft regulations for further details.