On September 6th, California Governor Gavin Newsom proposed a ban on foods, beverages, and dietary supplements containing any hemp THC, potentially crushing the state’s hemp industry in one single swoop.
Newsom commented that, “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.”
The new regulations: The proposed “emergency regulations” have three major components:
- No industrial hemp product (even CBD) can be sold to anyone under 21.
- The list of intoxicating cannabinoids has been substantially expanded, including HHC, THCP, delta-6a, THCjd and most others you can think of.
- Hemp foods, beverages, food additives, and nutritional supplements must have no detectable THC in a serving and packages can contain no more than 5 servings.
The big picture: California has been grappling with the same issues with industrial hemp products as much of the country, against the backdrop of the state’s legal cannabis industry.
- California restricted delta-8 THC and many other alternative cannabinoids with AB 45, making it illegal to sell cannabinoids created through chemical synthesis and including all THCs in the 0.3% THC limit in the definition of hemp.
- AB 45 also requires lab test reports on all hemp products. However, it only instituted an age restriction on inhalable hemp products.
- Lawmakers tried to pass AB 2223 this year but it got held up in committee. This bill would have done essentially the same thing as the new emergency regulations, except it “only” limited final form hemp products to 0.25 mg of THC per serving.
- The legal cannabis industry in California is struggling financially, with problems including a large illicit market which partially stems from many localities not allowing legal cannabis businesses.
The potential benefits of the ban:
- As Governor Newsom pointed out, some THC-containing hemp products are packaged and designed in a way that likely appeals to children. This would certainly be prevented by the proposal.
- Expanding the list of intoxicating cannabinoids ensures that the rules from AB 45 cannot be sidestepped through loopholes.
- Intoxicating hemp products shouldn’t be sold to youth. This is an industry norm but putting it into law is beneficial.
We spoke to Christopher J. Lackner, President and CEO of the Hemp Beverage Alliance, who echoed this last point:
“Hemp beverages are low-dose products that are designed and marketed to adults only. As an industry, we strongly encourage retailers to age-gate/check IDs. Labels indicate that the products contain hemp-derived THC and include information to empower the consumer, including a QR code so customers can see the test results.”
Adding, “We agree that hemp products should not target children, should have clear labeling, and should only be sold where retailers are trained in proper age-gating.”
The potential downsides of the ban:
- Given that the majority of hemp products are covered by the ban, this is essentially a death sentence to the hemp industry.
- There is little reason to ban THC if you are already banning the sale of hemp products to youth. Intoxicating products could be effectively restricted to the cannabis industry with a simple cap on dosage of something like 2 mg of any THC per serving, as argued by California NORML.
- Natural hemp extracts are usually low enough in THC to be non-intoxicating, but reducing THC to undetectable levels is considerably more difficult, with little gain.
Christopher J. Lackner also pointed out the double-standard with adult beverages, “Adults increasingly are exploring alcohol alternatives, and many are turning to hemp beverages: seltzers, teas, sodas and mocktails that create an adult beverage experience without the booze. We strongly feel these low-dose THC beverages can be (and should be) sold alongside other adult beverages such as beer, wine and hard seltzer.”
A death knell for California’s hemp industry? Against the backdrop of a shrinking California cannabis industry, the proposal signals that the state’s hemp industry is also likely in trouble. It’s possible that the drastic reduction in available hemp products will benefit the cannabis industry, but it’s also possible that both industries will suffer and more users will simply be driven to the black market.
What happens next? The regulations will take effect as soon as they’re approved by California’s Office of Administrative Law. This is likely to happen quickly, but the U.S. Hemp Roundtable says it’s “exploring all legal options” to fight the proposal, and California’s branch of NORML has asked for the regulations to be altered to allow for hemp extracts with a CBD:THC ratio of 15:1 and less than 1.75 mg of THC.
What can consumers do about it? The best course of action if you live in California is to make calls and voice your opposition to this change. Contact your local representative and/or the governor’s office and explain how this change would affect yourself or your business.