The California Office of Administrative Law (OAL) has approved emergency regulations to ban hemp-derived intoxicating cannabinoid products in the state. These new rules, effective September 23, 2024, tighten control over hemp products and prevent unregulated sales outside licensed dispensaries.
New Regulations Take Effect to Curb Intoxicating Hemp Products
The emergency regulations prohibit the sale of hemp-based products that contain detectable levels of THC or similar cannabinoids unless sold through licensed dispensaries regulated by the Department of Cannabis Control (DCC). The move is intended to eliminate the unregulated sale of intoxicating products outside the state’s controlled cannabis market.
Under these rules, industrial hemp products intended for human consumption—such as food, beverages, and dietary supplements—must have no detectable THC per serving. They must also adhere to a minimum purchase age of 21 and cannot contain more than five servings per package.
Retailers like vape shops, gas stations, liquor stores, and convenience stores must immediately remove non-compliant products from their shelves to avoid penalties.
Impact on Retailers and Compliance Requirements
Retailers must now follow the new regulations, removing all products containing detectable levels of THC or comparable cannabinoids not sold through DCC-licensed dispensaries.
Failure to comply could result in enforcement actions, including fines and legal consequences, as outlined by state regulatory agencies like the California Department of Public Health (CDPH), the DCC, and the California Department of Alcoholic Beverage Control.
Rationale Behind the Ban: Public Health Concerns
The CDPH spearheaded the proposal for the emergency regulations due to rising public health concerns associated with unregulated hemp-derived products. According to the agency, there has been an increase in incidents involving these products, leading to complaints of injury and illness. The regulations safeguard public health and prevent minors from accessing these potentially harmful products through unregulated retail locations.
Governor Newsom emphasized the importance of the regulations, stating that they are necessary to protect children and teens from unregulated and potentially harmful products. The governor stressed that the new rules would close existing loopholes, increase enforcement measures, and prevent youth from accessing intoxicating hemp products.
Controversy and Industry Pushback
Despite the state’s focus on public health, the emergency regulations have faced opposition from the hemp industry. Critics argue that the ban will eliminate a portion of hemp products available in California, threatening the livelihoods of small businesses and farmers.
Industry groups like the U.S. Hemp Roundtable (USHR) claim the regulations could effectively ban 90-95% of hemp products in the state. USHR argues that the ban disregards federal guidelines established by the 2018 Farm Bill, which permits hemp with up to 0.3% THC by dry weight.
The organization argues that California’s regulations are too restrictive and may target compliant hemp businesses unfairly.
Legal Ramifications and the Future of Hemp in California
The USHR has signaled that it may take legal action in response to the emergency regulations. It has announced plans to collaborate with California hemp farmers and stakeholders to challenge the regulations in court and advocate for a more balanced approach.
These emergency regulations follow the California Senate Appropriations Committee’s rejection of Assembly Bill 2223, which was intended to integrate hemp into the regulated cannabis supply chain. Sponsored by Assembly Majority Leader Cecilia Aguiar-Curry, the bill aimed to limit the sale of products containing intoxicating hemp derivatives at unregulated retail outlets but did not pass in committee.
Medical Exemptions and Next Steps
The CDPH clarified that individuals under the age of 21 who need THC products for medical purposes may still qualify for a medical marijuana identification card, allowing them to access THC cannabis products required to manage their condition through licensed dispensaries.
As California’s hemp industry adapts to these changes, it faces a challenging period of adjustment. Industry stakeholders are preparing for potential legal battles as they work to protect their businesses and find a path forward under the state’s new regulatory framework. The emergency regulations are set to remain in effect until March 25, 2025, unless further legislative or regulatory action is taken.
