California emergency hemp regulations now in effect; U.S. Hemp Roundtable and other stakeholders file lawsuit

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On September 23, 2024, California’s Secretary of State approved and filed emergency regulations proposed by the state’s Department of Public Health on September 4, 2024. The regulations prohibit any detectable levels of THC from hemp products, limit the serving size of hemp products to five, and create a minimum age of 21 to purchase hemp-derived products. The purpose of the regulations, says California’s Governor Newsom, is to protect consumers from intoxicating hemp products, but the regulations impact a wide swath of hemp-derived products including non-intoxicating extracts that contain cannabidiol. Many full spectrum hemp-derived extracts contain 0.3% THC or less, which is the threshold allowed for hemp products set forth by the 2018 Farm Bill.

On September 24th, 2024, the U.S. Hemp Roundtable, a group of California hemp farmers and businesses that include Cheech and Chong’s, Juicetiva Inc., Blaze Life LLC, Boldt Runners Corporation, Lucky To Be Beverage Co., and Sunflora Inc., filed a lawsuit against the regulations.

“Gov. Newsom’s misguided efforts to destroy a thriving hemp industry – one that he helped create in signing AB 45 three years ago – clearly violate state and federal law,” said Jonathan Miller, U.S. Hemp Roundtable’s general counsel, in a statement. “We are confident that the courts will agree that the Governor does not come close to demonstrating an ‘emergency’ exists, and the devastation that he would unleash on hemp farmers, small businesses and product consumers must be forestalled. We are hopeful that once relief is granted, the Governor will finally meet with the hemp industry to appropriately address his stated mission: to develop a robust regulatory regime that promotes health and safety and keeps hemp products out of the hands of minors.”

The U.S. Hemp Roundtable also intends to petition a temporary restraining order to prevent the regulation’s enforcement until the close of the lawsuit.