California, Missouri Again Target The Hemp THC Category
September 10, 2024California and Missouri have renewed their campaigns to restrict the rising hemp-derived THC category, which has made inroads in liquor stores and other retail outlets outside of the regulated cannabis market in states across the country. Late last year, research group Whitney Economics offered a “conservative” estimate of U.S. demand for hemp-derived cannabinoids at $28.4 billion annually, putting the category ahead of the regulated cannabis market.
States continue to wrangle with how to regulate the hemp THC sector, with 10 bipartisan state attorneys general calling earlier this year for Congress to address the area. In California, where a legislative effort to curb the category was shelved last month, Governor Gavin Newsom issued emergency regulations to restrict hemp THC late last week.
The emergency restrictions still need to be approved by the state’s office of administrative law but could potentially go into effect within 15 days. They call for establishing a minimum age of 21 to purchase hemp products; banning any detectable quantity of THC from consumable hemp products such as beverages, food, and dietary products; and limiting servings of hemp products to five per package.
Hemp industry advocates decried the move. “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,” stated Jonathan Miller, general counsel to the U.S. Hemp Roundtable.
But Newsom said the emergency regulations are in response to increasing health incidents, particularly among children, as hemp THC has expanded at retail. “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,” he said. “We’re taking action to close loopholes and increase enforcement to prevent children from accessing these dangerous hemp and cannabis products.”
California’s Department of Alcoholic Beverage Control will be charged with enforcing hemp products’ removal from store shelves. “ABC will be contacting licensees and stakeholder groups to make them aware of the new regulations so they can ensure they are in compliance once the regulations go into effect,” said ABC director Joseph McCullough.
Meanwhile, in Missouri, Governor Mike Parson also moved to restrict the category, after a previous effort was thwarted by the state attorney general on legal grounds. Last week, Parson directed the state’s Department of Health & Senior Services to begin restricting hemp THC products from the market in a new push, asserting that a lack of research on the products, health concerns, and underage access present public health dangers.—Daniel Marsteller
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.
