{"id":77975,"date":"2024-09-24T18:01:32","date_gmt":"2024-09-25T02:01:32","guid":{"rendered":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2024\/09\/24\/cheech-and-chongs-company-sues-to-overturn-new-california-hemp-product-ban-that-took-effect-this-week\/"},"modified":"2024-09-25T19:46:57","modified_gmt":"2024-09-26T03:46:57","slug":"cheech-and-chongs-company-sues-to-overturn-new-california-hemp-product-ban-that-took-effect-this-week","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2024\/09\/24\/cheech-and-chongs-company-sues-to-overturn-new-california-hemp-product-ban-that-took-effect-this-week\/","title":{"rendered":"Cheech and Chong\u2019s Company Sues To Overturn New California Hemp Product Ban That Took Effect This Week"},"content":{"rendered":"<\/p>\n

Members of the hemp industry\u2014including Cheech and Chong\u2019s cannabis company\u2014filed a lawsuit on Tuesday seeking to overturn new California regulations that outlaw most consumable hemp products in the state<\/a>, including those containing any intoxicating cannabinoids derived from the plant.<\/p>\n

The suit says the rules, backed by Gov. Gavin Newsom (D), are based on a faulty declaration of \u201cemergency\u201d and come after officials failed to effectively implement hemp regulation legislation that was enacted in 2021.<\/p>\n

First unveiled earlier this month, Newsom\u2019s new emergency ban won official approval from California\u2019s Office of Administrative Law on Monday and took effect immediately. The rules prohibit hemp products with any \u201cdetectable amount of total THC,\u201d while hemp products that don\u2019t contain THC are limited to five servings per package and may only be sold to adults 21 and older.<\/p>\n

The action came less than a month after the state legislature effectively killed a governor-backed bill that would have imposed somewhat similar restrictions<\/a>\u00a0on intoxicating hemp-derived cannabinoids.<\/p>\n

Filed in state court on behalf of industry trade group U.S. Hemp Roundtable and a handful of individual businesses, the new lawsuit alleges that regulators\u2019 \u201cinaction over the last three years hardly serves as a sufficient basis for declaring a sudden emergency and circumventing the meticulous procedures of regular rulemaking.\u201d<\/p>\n

\u201cSignificantly, at the core of the Department\u2019s Emergency Regulations is a provision that goes far beyond the limits contemplated in AB 45 to ban all hemp products unless they contain no \u2018detectable levels of THC,’\u201d the suit says, referring to previously enacted hemp legislation.<\/p>\n

The complaint says that a \u201cdraconian\u201d regulation to ban any hemp product with detectable THC \u201cgoes far beyond the limits\u201d of state law and \u201cwill essentially devastate an emerging industry that consists largely of small business owners. It\u2019s akin to requiring candy to stop containing sugar\u2026starting tomorrow.\u201d<\/p>\n

Plaintiffs in the new suit against the California Department of Public Health include Cheech and Chong\u2019s Global Holdings, Juicetiva, Blaze Life, Boldt Runners, Lucky to be Beverage and Sunflora.<\/p>\n

\u201cWhatever the merits of the general issues addressed by these emergency regulations, the Department has acted entirely outside the boundaries of California\u2019s applicable law to adopt and issue them,\u201d the suit<\/a> says. \u201cPlaintiffs and their members will suffer losses in the millions of dollars over existing products, pending manufacturing, and future sales of hemp and hemp products that legally contained THC, as per existing California and federal law, but have now been banned overnight by the emergency regulations.\u201d<\/p>\n

If allowed to remain in effect, the emergency regulations will eliminate nearly every ingestible hemp product currently for sale in California, including the vast majority of non-intoxicating products, and even though some products subject to the emergency regulations are not sold in California. Many small businesses will have to close operations immediately with millions in losses.\u201d<\/p>\n

The plaintiffs plan to file a separate petition for a temporary restraining order on Wednesday seeking to prevent enforcement of the ban while the overall litigation proceeds.<\/p>\n

Jonathan Miller, general counsel for the Hemp Roundtable, said that Newsom\u2019s \u201cmisguided efforts to destroy a thriving hemp industry\u2014one that he helped create in signing AB 45 three years ago\u2014clearly violate state and federal law.\u201d<\/p>\n

\u201cWe are confident that the courts will agree that the governor does not come close to demonstrating an \u2019emergency\u2019 exists, and the devastation that he would unleash on hemp farmers, small businesses and product consumers must be forestalled,\u201d he said. \u201cWe 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.\u201d<\/p>\n

Newsom, for his part, took an aggressive tone when announcing the new emergency restrictions.<\/p>\n

Standing next to a table piled with largely unregulated products containing hemp-derived cannabinoids, including beverages and gummies, he expressed disgust that they\u2019re now widely sold at grocery stores, gas stations and convenience stores. Hemp-derived THC-infused sparkling water, he lamented, can be found\u2014including by minors\u2014alongside more benign products like La Croix.<\/p>\n

\u201cIt\u2019s a disgrace and it\u2019s a shame,\u201d the governor said, flanked my members of law enforcement, \u201cand the industry bears full responsibility for not policing itself, for the proliferation of these intoxicating products that are hurting our children.\u201d<\/p>\n

The rules have the support of the California Department of Public Health (CDPH) and marijuana regulators at the Department of Cannabis Control (DCC). They\u2019re also backed by the California Cannabis Industry Association, which represents mostly marijuana businesses, and by an alcohol trade group.<\/p>\n

But the Hemp Roundtable isn\u2019t the only organization pushing back on the new rules. Earlier this month, the advocacy group One Hemp said it\u2019s also considering a court challenge \u201cwith the intent to hold Newsom accountable to the normal democratic process.\u201d<\/a><\/p>\n

On Tuesday, Jared Stanley, a founding member of One Hemp, said the group\u2019s membership \u201csupported efforts to address bad actors in the hemp industry, but we were shocked that responsible hemp companies were included in this overreach.\u201d<\/p>\n

\u201cThese companies have long advocated for quality and safety standards backed by science and research,\u201d Stanley said in a statement<\/a>. \u201cThe governor\u2019s decision will harm the good actors in the industry and have dire consequences for families and veterans who depend on these products for their quality of life.\u201d<\/p>\n

Another outspoken opponent to the new hemp regulations is Paige Figi, the executive director of the advocacy group Coalition for Access Now. Figi is the mother of Charlotte Figi, who became a crucial figure in the CBD movement<\/a> after the family successfully treated Charlotte\u2019s Dravet syndrome, a rare form of epilepsy, with CBD oil. Her story is broadly credited as launching the mainstream movement to allow access to CBD.<\/p>\n

\u201cFamilies brought a solution to the legislature and while they were heard, the Governor overrode both the legislature and mothers across California,\u201d Figi said in a statement to Marijuana Moment, referring to failed attempts earlier this year to find consensus on how to regulate hemp-derived cannabinoids.<\/p>\n

\u201cIn doing so, he may have addressed the issue of intoxicating THC but he has turned the lives of families who depend on non-intoxicating CBD completely upside down,\u201d she continued. \u201cHe is not listening and it is causing real harm. Now, these families are left with impossible choices: moving, breaking the law, fighting to change it, or enduring severe suffering, even death.\u201d<\/p>\n

Bill Morachnick, CEO of the hemp CBD company Charlotte\u2019s Web\u2014named after the younger Figi, who passed away in 2020\u2014similarly called the regulations an overreach.<\/p>\n

\u201cWhile we fully support efforts to regulate synthetic and intoxicating products, we strongly oppose the inclusion of non-intoxicating, natural CBD products within this regulatory framework,\u201d Morachnick said. \u201cWe believe these regulations are overreaching and unnecessarily restrict access to safe, non-intoxicating hemp products by lumping them in with an entirely different class of products.\u201d<\/p>\n

\u201cOther states like Colorado and Virginia have set shining examples of how to clean up the market while safeguarding products that consumers depend upon for their health and wellness,\u201d he added.<\/p>\n

In Missouri, for example, health regulators recently announced they\u2019re narrowing the scope of that state\u2019s ban on intoxicating hemp products to focus on \u201cmisbranded\u201d products<\/a> that are more likely to be confused with mainstream snacks and beverages.<\/p>\n

Ben Kennedy, CEO of the hemp-derived THC beverage brand Fable Libations, told Marijuana Moment in a statement that if California officials \u201cbelieve that the adult-use regulated cannabis market is a solution, as cited, they\u2019ll need to work overtime as the state\u2019s regulated market has yet to work commercially and likely never will under current framework.\u201d<\/p>\n

Kennedy added that while some bad actors do sell intoxicating hemp products unscrupulously, Fable\u2019s beverages are sold \u201cin a 21+ environment,\u201d for example at alcohol retailers.<\/p>\n

The state\u2019s new regulations, he said, are \u201crepresentative of the \u2018obliteration approach,\u2019 when this matter is quite delicate and nuanced.\u201d<\/p>\n

Other stakeholders in California, meanwhile\u2014especially those in the state\u2019s regulated marijuana sector\u2014have welcomed Newsom\u2019s emergency regulations, saying they\u2019re a necessary step to rein in an epidemic of unregulated hemp products, many of which produce a chemical high.<\/p>\n

The California Cannabis Industry Association (CCIA), for one, has applauded the governor\u2019s proposal. The group, which represents licensed marijuana businesses in the state, earlier this month commended what it described as \u201cNewsom\u2019s decisive action to address intoxicating hemp products in California, protecting public health and ensuring that harmful, unregulated products no longer undermine our state\u2019s rigorous cannabis laws.\u201d<\/p>\n

\u201cThese emergency regulations will create a safer, more transparent marketplace,\u201d CCIA said, \u201cwhile safeguarding our youth and preserving the integrity of\u2014and critical tax revenues from\u2014California\u2019s cannabis legalization framework.\u201d<\/p>\n

Reached after the emergency regulations were approved this week, the group added:<\/p>\n

\u201cThe California Cannabis Industry Association (CCIA) appreciates the state\u2019s ongoing efforts to safeguard public health and better address the rapidly evolving cannabinoid market. We believe these emergency regulations will help support youth prevention efforts and address other safety risks posed by unregulated, intoxicating products. Simultaneously, we see a clear need for refinement to ensure continued access to beneficial CBD products and provide a pathway for a more balanced approach to regulation of all cannabinoids \u2014 regardless of whether they\u2019re sourced from hemp or cannabis. CCIA looks forward to continued collaboration with the legislature, the Administration and stakeholders to help shape future policies that benefit all Californians.\u201d<\/p>\n

Dustin Moore, co-founder and chief strategy officer of the marijuana retail and delivery service Embarc, said in a statement to Marijuana Moment, meanwhile, that approval of the emergency regulations \u201cmakes a necessary statement on the importance of protecting consumers.\u201d<\/p>\n

\u201cThe way we see it, any form of the cannabis plant\u2014hemp derived or not\u2014should be tested and regulated to ensure we provide California consumers with safe, reliable products,\u201d Moore said.<\/p>\n

Vince Ning, CEO and co-founder of the cannabis wholesaler Nabis, similarly said that the Office of Administrative Law ruling \u201csends a message to operators that safety is crucial for longevity and growth in this industry.\u201d<\/p>\n

\u201cPrior to this ruling,\u201d Ning said, \u201chemp-derived cannabis products were available to consumers statewide, but were not required to follow the same regulations and testing as traditional, licensed cannabis products\u201d<\/p>\n

Other reformers, such as Dale Gieringer, the director of California NORML, have raised concerns that the rules<\/a> are impracticable. He\u2019s argued that the strict limit on THC would effectively outlaw even hemp products not intended to be intoxicating.<\/p>\n

\u201cThis is an overly broad regulation that would harm many medical users who rely on high-CBD extracts to treat childhood epilepsy, cancer and other serious conditions,\u201d Gieringer told Marijuana Moment. He added that California NORML has heard worries from doctors who recommend high-CBD hemp extracts to patients.<\/p>\n

California NORML has pointed out that it\u2019s \u201cvirtually impossible to eliminate trace amounts of THC from natural hemp products,\u201d noting that \u201cEven the FDA-approved CBD pharmaceutical Epidiolex contains detectable traces of THC.\u201d<\/p>\n

\u201cThe governor is quite right to be concerned about the sale of hemp products with intoxicating doses of THC,\u201d Gieringer said. \u201cHowever, the regulation needs to be relaxed to exempt low-THC, high-CBD medicinal preparations, as other states like Colorado have done.\u201d<\/p>\n

Newsom expressed hope at this month\u2019s press conference about working with Assemblymember Cecilia Aguiar-Curry (D), who sponsored the legislative plan to restrict intoxicating hemp products, in the coming legislative session.<\/p>\n

\u201cWe believe hemp\u2014even hemp with intoxicating components\u2014can be sold,\u201d the governor said, \u201cbut they must be sold in a regulated environment, not in grocery stores, not in corner stores all throughout the state of California.\u201d<\/p>\n

Aguiar-Curry\u2019s bill, AB 2223, would have done more than just outlaw intoxicating hemp products. As written, it would have folded hemp-derived cannabinoid products into the state\u2019s regulated marijuana system and opened the door to out-of-state hemp producers to sell products into California\u2019s cannabis market.<\/p>\n

Products with any detectable amount of THC or other intoxicating cannabinoids would need to be sold through state-licensed cannabis dispensaries under AB 2223. So called \u201cpure CBD\u201d products would not be subject to that rule, but those products could not contain any detectible amount of THC or any other intoxicating cannabinoid.<\/p>\n

Newsom said he hoped to partner with Aguiar-Curry next year \u201cto address some of the integration issues\u201d that come with moving intoxicating hemp products under the state\u2019s regulatory system for marijuana.<\/p>\n

The advocacy group Origins Council, which says it represents about 800 small and independent cannabis businesses in rural counties throughout the state, was one of the lead advocacy groups pushing back on AB 2223 this session. In comments to Marijuana Moment earlier this month, however, the group applauded Newsom\u2019s emergency proposal to outlaw hemp-derived cannabinoids.<\/p>\n

\u201cLegalizing hemp under the 2018 Farm Bill, while maintaining federal prohibition on cannabis, was always going to lead to absurd outcomes,\u201d said Ross Gordon, Origins Council\u2019s policy chair. \u201cUltimately, the only path forward is to federally legalize cannabis, and to regulate hemp and cannabis at parity from farm to retail.\u201d<\/p>\n

\u201cIn the meantime,\u201d Gordon added, \u201caddressing these intoxicating hemp loopholes is absolutely necessary, and we applaud Governor Newsom for taking this important step forward.\u201d<\/p>\n

Somewhat similar discussions about how to regulate hemp derivatives are playing out at the federal level, as congressional lawmakers consider legislative provisions to impose a general ban on hemp-derived cannabinoids such as delta-8 THC.<\/p>\n

Rep. Mary Miller\u2019s (R-IL) amendment to the 2024 Farm Bill, for example, was\u00a0approved by a House committee in May<\/a>\u00a0and would remove cannabinoids that are \u201csynthesized or manufactured outside of the plant\u201d from the federal definition of legal hemp. The change is backed by prohibitionists as well as some marijuana companies, who\u2019ve described the restriction as a fix to a \u201cloophole\u201d that was created under the 2018 Farm Bill that federally legalized hemp and its derivatives.<\/p>\n

Anti-drug groups, law enforcement and some health organizations have called on Congress to embrace the ban, arguing that\u00a0\u201ctrying to regulate semi-synthetic cannabinoids will not work.\u201d<\/a><\/p>\n

In addition to Miller\u2019s amendment in the 2025 Farm Bill, the House Appropriations Committee in July approved a separate spending bill that contains a similar provision to prohibit cannabinoid products such as delta-8 THC and CBD<\/a>\u00a0containing any \u201cquantifiable\u201d amount of THC.<\/p>\n

Hemp-derived cannabinoids also came up in a recent federal appeals court decision in which judges ruled that\u00a0cannabinoids derived from hemp, such as THC-O-acetate, indeed qualify as hemp and are legal under the 2018 Farm Bill<\/a>. In making that ruling, the court rejected the Drug Enforcement Administration\u2019s more restrictive interpretation of the law.<\/p>\n

How to address hemp-derived cannabinoids has\u00a0caused some fractures within the cannabis community<\/a>, and in some cases\u00a0marijuana businesses have found themselves on the same side as prohibitionists<\/a>\u00a0in pushing a derivatives ban.<\/p>\n

In a letter to congressional leaders ahead of Miller\u2019s amendment, the U.S. Cannabis Council (USCC) proposed specific language they wanted to see included that would place hemp-derived cannabinoids containing any amount of THC under the definition of federally illegal marijuana.<\/p>\n

While they\u2019ve focused on the need to address public safety concerns related to unregulated \u201cintoxicating\u201d cannabinoid products such as delta-8 THC, some hemp industry advocates say the effect of the proposed language could be a ban on virtually all non-intoxicating CBD products as well, as most on the market contain at least trace levels of THC, consistent with the Farm Bill definition of hemp that allows for up to 0.3 percent THC by dry weight.<\/p>\n

Meanwhile,\u00a0the legislation that advanced through the House Agriculture Committee<\/a>\u00a0in May also contains provisions that would reduce regulatory barriers for certain hemp farmers and scale-back a ban on industry participation by people with prior drug felony convictions.<\/p>\n

Specifically, it would make it so the U.S. Department of Agriculture (USDA), states and tribal entities could choose to eliminate a policy that prevents people with felony drug convictions in the past 10 years from being licensed to produce industrial hemp.<\/p>\n

However, advocates had hoped to see more expansive language, such as what was described in\u00a0Senate Democrats\u2019 recent summary of their forthcoming Farm Bill draft<\/a>. Under that plan, there would be a mandate to eliminate the ban, rather than simply authorizing it, and it would cover all hemp producers, not just those growing it for non-extraction purposes.<\/p>\n

The Senate Agriculture Committee has not yet released the draft text of their bill, so it remains to be seen if the summary description matches what will ultimately be released. Bipartisan House lawmakers filed standalone legislation last year\u00a0that would broadly lift the felony ban for would-be hemp producers<\/a>.<\/p>\n

Lawmakers and stakeholders have also been eyeing a number of other proposals that could be incorporated into the Farm Bill\u2014and which could come up as proposed amendments as the proposal moves through the legislative process\u2014including measures to\u00a0free up hemp businesses to legally market products like CBD<\/a>\u00a0as dietary supplements or in the food supply.<\/p>\n

The hemp market started to rebound in 2023 after suffering significant losses the prior year, according to an\u00a0annual industry report from the U.S. Department of Agriculture (USDA)<\/a>\u00a0that was released in April.<\/p>\n

The\u00a0data\u00a0is the\u00a0result\u00a0of a\u00a0survey that USDA mailed to thousands of hemp farmers\u00a0across the U.S.<\/a>\u00a0in January. The\u00a0first version of the department\u2019s hemp report<\/a>\u00a0was released in early 2022, setting a \u201cbenchmark\u201d to compare to as the industry matures.<\/p>\n

Bipartisan lawmakers and industry stakeholders have sharply criticized FDA for declining to enact regulations for hemp-derived CBD, which they say is largely responsible for the economic stagnation.<\/p>\n

To that end,\u00a0FDA Commissioner Robert Califf testified before the House Oversight and Accountability Committee<\/a>\u00a0earlier this year, where he faced questions about the agency\u2019s position that it needed additional congressional authorization to regulate the non-intoxicating cannabinoid.<\/p>\n

USDA is also reportedly\u00a0revoking hemp licenses for farmers who are simultaneously growing marijuana<\/a>\u00a0under state-approved programs, underscoring yet another policy conflict stemming from the ongoing federal prohibition of some forms of the cannabis plant.<\/p>\n

For the time being, the hemp industry continues to face unique regulatory hurdles that stakeholders blame for the crop\u2019s value plummeting in the short years since its legalization. Despite the economic conditions, however, a recent report found that\u00a0the hemp market in 2022 was larger than all state marijuana markets<\/a>, and it roughly equaled sales for craft beer nationally.<\/p>\n

Meanwhile, internally at USDA, food safety workers are being\u00a0encouraged to exercise caution and avoid cannabis products<\/a>, including federally legal CBD, as the agency observes an \u201cuptick\u201d in positive THC tests amid \u201cconfusion\u201d as more states enact legalization.<\/p>\n

Separately in California, lawmakers recently gave final approval to a bill to prevent what advocates call the \u201cdouble taxation\u201d of marijuana by\u00a0restricting the ability of local governments to calculate their cannabis levies after state taxes are already applied<\/a>. The legislation\u2019s sponsor says if the proposal is signed into law it will end what he calls the \u201ccollection of a tax on a tax.\u201d<\/p>\n

California lawmakers also\u00a0gave final passage to bills last month<\/a>\u00a0that would\u00a0allow small marijuana growers to sell their products directly to consumers<\/a>\u00a0at state-organized farmers markets and\u00a0legalize cannabis cafes in the state<\/a>.<\/p>\n

Also, a state-funded effort is underway to\u00a0analyze the genetic information of various marijuana strains<\/a>\u00a0in order to preserve the state\u2019s rich history of cannabis cultivation. It\u2019s part of a project meant not only to acknowledge the past but also protect the future of legacy growing regions such as the Emerald Triangle.<\/p>\n

\n

Hemp And Marijuana Companies Must Stop Feuding And Unite For Regulations Instead Of Bans Like California\u2019s New Move (Op-Ed)<\/a><\/p>\n<\/blockquote>\n

\n

Photo elements courtesy of rawpixel<\/a> and Philip Steffan<\/a>.<\/em><\/p>\n

The post Cheech and Chong\u2019s Company Sues To Overturn New California Hemp Product Ban That Took Effect This Week<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n


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\nRead More: Cheech and Chong\u2019s Company Sues To Overturn New California Hemp Product Ban That Took Effect This Week<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Members of the hemp industry\u2014including Cheech and Chong\u2019s cannabis company\u2014filed a lawsuit on Tuesday seeking to overturn new California regulations that outlaw most consumable hemp products in the state, including those containing any intoxicating cannabinoids derived from the plant. The suit says the rules, backed by Gov. Gavin Newsom (D),Continue Reading<\/a><\/span><\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18,81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/77975"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=77975"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/77975\/revisions"}],"predecessor-version":[{"id":77976,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/77975\/revisions\/77976"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=77975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=77975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=77975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}