California Shelves Proposed Restrictions On Hemp THC For Now
August 20, 2024Proposed restrictions to California’s hemp-derived products market appear dead in the water for now, as the state senate did not vote on Assembly Bill 2223 before the end of its legislative session. The bill, proposed by Cecilia Aguiar-Curry and substantially amended by Governor Gavin Newsom’s office, would have formally folded the hemp-derived market into California’s legal cannabis market under the purview of the Department of Cannabis Control. Drinks retailers like Total Wine are currently active in the hemp-derived THC drinks business in the state.
The bill sparked fear among hemp companies, which argued that the regulatory change would’ve devastated the industry, bringing about job losses and a decline in tax revenue for the state. The bill, in addition to bringing together the cannabis and hemp markets under the DCC, would have restricted CBD-only products to 0.0% THC, down from the current limit of 0.3% THC.
Last week, the bill was set to be considered at the end of the session but senate appropriations committee chair senator Anna Caballero did not bring it up for a vote. This move means that the bill is effectively dead for the foreseeable future.
The bill was widely opposed by the CBD and hemp industries, with some cannabis businesses also raising the alarm. The former two industries feared the damaging effects of the new regulations, but cannabis growers were concerned about an influx of out-of-state hemp companies that could ship in products from states with much lower operations costs.—Shane English
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