CA & NJ Hemp Regulatory Updates
California
On Sept. 6th, 2024, Governor Gavin Newsom issued proposed emergency regulations (effective Sept. 23rd) to protect youth from the adverse health effects of dangerous hemp products. The regulations, proposed by the California Department of Public Health (CDPH), respond to increasing health incidents related to intoxicating hemp products, which state regulators have found sold across the state, with a particular emphasis on protecting minors. “Intoxicating industrial hemp products can cause illness and injury to California consumers,” said Tomás Aragón, CDPH Director and State Public Health Officer. “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.”
The new regulations are only applicable to industrial hemp final form food products intended for human consumption including food, food additives, beverages, and dietary supplements and include the following the following:
GREATLY expands the definition of “THC” or “THC or comparable cannabinoid” to include any metabolites, derivatives, salts, isomers (including any salt or acid thereof) of almost all forms of THC (Delta-5, Delta 6, Delta-7, Delta-10, Delta-11, etc.) as well as the majority of other intoxicating cannabinoids (whether natural or synthetically derived).
Reduces all THC in hemp food products intended for human consumption to undetectable amounts per serving - meaning the lowest quantity of a substance or an analyte that can be reliably distinguished from the absence of that substance within a specified confidence limit.
Reduces servings to 5 or less per package
Requires the detection of such THC happen in an independent testing lab using certain approved testing methodologies.
Prohibits anyone from “manufacture, warehouse, distribute, offer, advertise, market, or sell industrial hemp final form food products intended for human consumption including food, food additives, beverages, and dietary supplements that are above the limit of detection for total THC per serving.”
While this emergency regulation only applies to hemp food products, coupled with California Health and Safety Code § 111921.6 (effective as of 2023) this effectively ban all hemp derived intoxicants outside of the regulated cannabis market (excepting topicals). This has of course had a devastating impact on the State’s hemp industry, which has already begun to push back. On September 24th, 2024, the U.S. Hemp Roundtable Inc., composed of 6 major hemp brands, filed suit against the State (the day after the state’s Office of Administrative Law approved the emergency regulations). According to the suit, the ban violates the 2018 federal Farm Bill, the commerce clause of the U.S. Constitution and the plaintiffs’ due-process rights as well as state law. The complaint alleges that the state could have updated those regulations at any time via the normal lawmaking process, but such efforts – including a last-minute push in the state Legislature last month – failed. It goes on to claim that this regulation is therefore not an “emergency”, and that the State’s ban goes beyond what is needed to protect the public, unnecessarily harming the State’s hemp industry. The complaint seeks a judge’s declaration that the ban is invalid and an order blocking its implementation. A Hemp Roundtable’s spokesman has stated that, “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.” It remains to be seen if the Judge here will stay the emergency regulations while this court case is progresses.
New Jersey
Earlier in September, Gov. Murphy signed into law a new bill that places intoxicating hemp products under the same regulatory system governing state-licensed cannabis operators, which is controlled by the New Jersey Cannabis Regulatory Commission (CRC). Any existing retailers selling such hemp products – ranging from gas stations to convenience stores and liquor stores – have until mid-October to take those products off the shelves. That product moratorium will last at least 180 days, at which point the commission is mandated to have the new hemp rules finished. New Jersey is the latest state in regulating the hemp industry, following the footsteps of California and Missouri.
Please reach out to Global Go to learn more about these developments and how they may affect your business.
