California’s hemp industry is facing a major challenge after Governor Gavin Newsom introduced new regulations that are stirring up concerns.
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These rules, which took effect recently, require that all hemp food, beverages, and dietary products meant for human consumption contain no detectable THC or other intoxicating cannabinoids per serving.
The initial goal was to curb the sale of intoxicating hemp-derived products, but the regulations have ended up going much further. Many in the industry now worry that this could devastate California’s thriving hemp market.
In response, the U.S. Hemp Roundtable, along with others including Cheech & Chong Cannabis Co., sought a temporary restraining order (TRO) to block the regulations, arguing that they are illegal and could lead to massive financial losses for businesses. But their efforts hit a roadblock when Los Angeles County Superior Court Judge Stephen Goorvitch denied the request. He described the TRO as a “drastic remedy” that would prematurely stop the enforcement of the law before a full trial could take place.
The judge did clarify that CBD products without THC are still allowed for sale in regular stores. However, any product containing THC must now be sold exclusively through licensed cannabis dispensaries.
Jonathan Miller, the general counsel for the U.S. Hemp Roundtable, expressed disappointment but assured that this legal battle is far from over. Governor Newsom, meanwhile, stood by the ruling, stressing the need to prioritize public health and protect children from potentially harmful products.
The U.S. Hemp Roundtable issued a statement, pointing out that the judge’s decision conflicts with rulings from other states like New Jersey and even federal courts. They believe the court overlooked the significant impact this will have on interstate commerce for hemp products. Additionally, they criticized the judge’s dismissal of claims of “irreparable harm,” despite evidence showing that businesses are on the verge of closing, and many seniors and veterans could lose access to non-intoxicating hemp products they rely on for their well-being.
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