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The administration of California Gov. Gavin Newsom is seeking a permanent ban on consumable hemp products that contain THC, according to a rulemaking proposal the state health department released on Friday and reported on by SFGate. The ban would make permanent temporary emergency regulations enacted last year over the objections of hemp business operators, who argue that the rules threaten the viability of California’s hemp industry.
Newsom first proposed the ban on hemp products with THC, the compound largely responsible for the well-known “high” associated with marijuana, in September. The emergency regulations limit the sale of hemp foods, beverages and dietary supplements to consumers aged 21 and older and set a limit of five servings per package for such products. The rules from the California Department of Public Health (CDPH) also prohibit products that contain any detectable amount of THC or other intoxicating cannabinoids, including many CBD products already being used by California consumers.
The governor said at the time that the emergency regulations were needed to protect children from intoxicating hemp products, which are generally considered legal under the federal 2018 Farm Bill. Consumable hemp products are not regulated by the federal government, however, leading many smoke shops, gas stations and other retailers to offer products containing delta-8 THC and other psychoactive compounds.
“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,” Newsom said in September when he announced the ban. “We’re taking action to close loopholes and increase enforcement to prevent children from accessing these dangerous hemp and cannabis products.”
California Hemp THC Ban Went Into Effect Last Year
The emergency regulations went into effect on September 23 and were extended in March. Last month, Newsom announced the ban on hemp THC was more than 99% effective in eradicating intoxicating hemp products from California alcohol retailers.
The Notice of Proposed Rulemaking from CDPH released last week seeks to permanently extend the rules in place since last year. In the notice, the health department acknowledges that the rules will have a negative effect on the California economy. CDPH estimates that the rules will lead to a $602 million decrease in revenue for California businesses over the first 12 months and a $3.14 billion reduction over five years. The hemp THC ban is also likely to lead to 100 hemp manufacturing business closures and the loss of 18,478 jobs over five years. State tax revenue would take a hit of $192 million, according to the CDPH estimate.
Controversial Ban Supported By Some Cannabis Operators
The ban on intoxicating hemp products is supported by many in the regulated cannabis industry, who face stiff regulations and steep taxes. Laura A. Bianchi, co-founding partner of the cannabis and psychedelic law firm Bianchi and Brandt, says that it is “incredibly important to be cognizant of the economic challenges facing small businesses and the importance of job preservation, but not at the expense of public health and safety.”
“Currently, intoxicating hemp products are being manufactured and sold without being subject to the same testing, quality control, or regulatory oversight as products within the licensed cannabis industry,” Bianchi writes in an email. “This regulatory gap leaves consumers extremely vulnerable, as there are no assurances that these products are even safe for consumption.”
“To address this, these products should fall under the existing state-regulated cannabis framework or in the case of low-THC beverages, perhaps a separate regulatory program is created,” she continues. “There is a path forward that allows for the continued availability of these products, but it needs to include clear standards, mandatory testing, and enforceable safeguards to ensure consumer safety and public confidence.”
Lou Samuels, CEO of licensed cannabis delivery service Golden State Canna, says that he is “categorically in favor of requiring THC to be sold through the regulated channel regardless of whether it is derived from hemp or derived from cannabis, since the end compound is exactly the same and claiming a difference is clearly exploiting a loophole.”
“I am not however, in favor of requiring hemp derived CBD to have no detectable trace of THC in order to be sold OTC and not at a dispensary,” he writes in an email. “While selfishly I recognize it would be good for business, I think keeping the cost of CBD down for the public is important, and closing the hemp derived THC loophole is possible without onerous over regulation of legitimate CBD products, which are sure to be mailed into” California from unregulated sources.
The CDPH proposal to make the ban on intoxicating hemp products permanent is now in a 45-day public written comment period. The agency has also scheduled a hearing on the proposal for July 28 in Sacramento.
“}]] California Gov. Gavin Newsom’s administration hopes to make a controversial temporary ban on intoxicating hemp products permanent. Read More
