Governor Newsom Proposes New Emergency Regulations for Hemp Products in California

Governor Newsom’s New Emergency Regulations

On September 6, 2024, Governor Gavin Newsom announced a set of proposed emergency regulations aimed at better controlling the sale and distribution of hemp products in California. These regulations, awaiting the final approval by the Office of Administrative Law, are designed to address growing concerns over the accessibility and health effects of such products on minors.

Purpose and Key Provisions

The primary goal behind these stringent measures is to safeguard children from the potential health hazards posed by intoxicating hemp products. Governor Newsom noted that existing loopholes in California’s legislation have allowed these products to be sold without age restrictions, putting young individuals at risk. Consequently, one of the main features of the new regulations is a complete ban on any detectable levels of THC in consumable hemp products like beverages, foods, and dietary supplements, including popular items such as edibles and drinks.

In addition, the regulations set a minimum age requirement of 21 years for purchasing hemp products. This age limit is in alignment with the restrictions already placed on recreational marijuana. Moreover, serving sizes for hemp products are capped at a maximum of five per package to curb excessive consumption and limit accessibility, especially among younger demographics.

Implementation and Enforcement

To ensure these regulations are effectively enforced, a collaborative effort will be undertaken by several state agencies. These include the California Department of Public Health, the Department of Cannabis Control, the Alcoholic Beverage Control (ABC), the Department of Tax and Fee Administration (CDTFA), as well as state and local law enforcement agencies. This multi-agency approach is aimed at ensuring comprehensive monitoring and strict adherence to the new regulations.

The move comes in response to a growing number of health incidents linked to the use of intoxicating hemp products, particularly among teenagers and young adults. These incidents have highlighted the adverse effects such products can have on cognitive functions, memory, and decision-making abilities in young minds.

Reaction and Economic Implications

The proposed regulations have met with strong opposition from the hemp industry. Industry stakeholders argue that the rules are excessively broad and potentially infringe upon both state and federal laws. The U.S. Hemp Roundtable has already filed formal comments against the regulations and has indicated plans to initiate legal action if necessary. The economic impact of the regulations could be substantial, with projected losses amounting to nearly a quarter billion dollars in tax revenue from legitimate businesses within the industry.

This development follows the unsuccessful attempt to pass Assembly Bill 2223, which similarly sought to impose stricter controls on the hemp industry. California has a longstanding history of rigorous regulation in the cannabis sector, and these new rules appear to be a continuation of that approach, extending comparable oversight to hemp products. As the implementation date approaches, the debate surrounding the regulations is expected to intensify, reflecting the competing interests of public health and economic vitality.