Last week, the governor of California announced that emergency regulations protecting minors from intoxicating hemp products would stand. This announcement from Governor Gavin Newsom comes after the courts thwarted an attempt to prevent the regulations from being enforced.
The decision affirms the possible harm these products could cause to Californians, particularly children. It also takes precedent over concerns that hemp businesses won’t be able to adapt to the rules. In his announcement, Newsom claimed that the concerns raised by the industry centered more on protecting profits than the public.
In its ruling, the court dismissed arguments made by the industry that the new rules would make medical CBD products inaccessible.
The state of California was the first state to permit the medicinal use of marijuana, following the passage of the Compassionate Use Act. The court noted that these products would remain accessible with THC at licensed marijuana dispensaries and without THC at retail stores. Under the new regulations, the sale of any industrial-hemp beverage, food or dietary products intended for consumption by humans is prohibited, particularly if there’s any amount of intoxicating cannabinoids in it. The regulations also limit servings to five per package and prohibit sales of hemp products to individuals under 21 years of age.
Attorney general Rob Bonta stated that children deserve protection, especially with the proliferation of products containing synthesized cannabinoids in the market. He explained that the products were often packaged to look like candy to catch the attention of children and the youth. This, he noted, was why they had come up with prohibitions against intoxicating hemp cannabinoids, regardless of whether they were synthetic or naturally sourced.
Bonta added that the state’s justice department remained committed to safeguarding the interests of legal businesses that operated within the industry.
The new regulations were proposed in response to rising health incidents associated with intoxicating products. Children are especially at risk if they consume these products, with research showing that the products negatively affect memory and cognitive function in developing brains.
It should be noted that these regulations won’t affect the sale of any marijuana products, including those bought for medicinal use. This means that products with THC and CBD will still be sold at marijuana dispensaries. Additionally, the regulations do not ban CBD products derived from hemp with no intoxicating cannabinoids.
The regulations will be enforced by state regulators, including the Cannabis Control Department, the Public Health Department and the Alcoholic Beverage Control Department, among others.
The situation in California is still highly fluid, and similar discussions are happening in many other parts of the country. Consequently, entities such as SNDL Inc. (NASDAQ: SNDL) will likely be watching how the events in California impact the regulation-making processes in other states.
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