U.S. Hemp Roundtable blasts emergency rules in California

Emergency regulations announced last week by California Gov. Gavin Newsom would prohibit nearly all hemp products for adults, including most non-intoxicating CBD products, according to an industry group representing hemp companies.

And amid “massive California budget deficits, [Newsom] is unnecessarily throwing away nearly a quarter-billion dollars in tax revenue from legitimate small businesses,” according to Jonathan Miller, general counsel to the U.S. Hemp Roundtable. “We will be exploring all legal options in the coming days with California hemp farmers and businesses that comprise the multibillion-dollar industry that this action would destroy.”

Miller described the action by Newsom “as a betrayal of California hemp farmers, small businesses and adult consumers.”

“After having supported AB 45, which created a sound regulatory framework for the manufacture and sale of hemp products, Newsom’s administration fell on the job and failed to take any steps to enforce it,” Miller added in a Sept. 6 statement. “Now, instead of addressing legitimate regulatory concerns shared by all good actors in the cannabis space — such as establishing reasonable policies to keep intoxicating products out of the hands of children — Governor Newsom instead has proposed a complete retail prohibition on 90-95% of popular hemp products for adults, including most non-intoxicating CBD products that he purports to support in his public communications.”

Protecting children, closing loopholes

California’s governor has a different perspective on the emergency proposed rules that he announced, citing the need to protect kids from the dangerous effects of unregulated THC.

“The emergency regulations respond to increasing health incidents related to intoxicating hemp products, which state regulators have found sold across the state, especially beverages and food products,” according to a Sept. 6 news release from Newsom’s office. “Children are particularly at risk should they consume these products. Studies show that use of these products can negatively impact cognitive functions, memory, and decision-making abilities in developing brains.”

The new regulations prohibit any detectable quantity of THC from consumable hemp products such as beverages, food and dietary products. They also limit serving and package size and establish a minimum age of 21 to legally purchase the above products.

“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 declared. “We’re taking action to close loopholes and increase enforcement to prevent children from accessing these dangerous hemp and cannabis products.”

Effective date of emergency rules, enforcers

Upon approval from the Office of Administrative Law (OAL), the rules will go into effect immediately, according to Newsom’s office. Miller told SupplySide Supplement Journal (formerly Natural Products Insider) that the rules would take effect five days after they are officially posted, unless the OAL or a court blocks their implementation. As of Sept. 10, the OAL website does not reflect that the emergency rules have been approved.

Those responsible for enforcing the rules include the California Department of Public Health (CDPH), the California Department of Cannabis Control, the California Department of Alcoholic Beverage Control (ABC), the California Department of Tax and Fee Administration (CDTFA), and state and local law enforcement officials.

“Intoxicating industrial hemp products can cause illness and injury to California consumers,” said Tomás Aragón, CDPH Director and State Public Health Officer, in the news release. “We are working to ensure products in the marketplace comply with state laws that protect consumers against these public health risks and have proposed emergency regulations that will improve protections for consumers.”

Meanwhile, the Hemp Beverage Alliance urged California to develop a legislative solution to permit the sale of hemp beverages. The trade association expressed disappointment “with the recent mischaracterization of hemp beverages in California,” while also noting it was “heartened by the Governor’s commitment to working with suppliers and distributors to appropriately sell hemp beverages within a regulated environment.”

“A legislative solution must be created immediately to allow the sale of hemp beverages,” Hemp Beverage Alliance President Christopher Lackner said in a recent statement. “We look forward to working with the governor, the legislature, the business community and public health leaders to develop a plan that protects children, generates revenue for the state, empowers consumers to make informed choices, and, like alcohol, allows hemp beverages to be purchased only in places where there is proper age-gating.”