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Perspectives

| less than a minute read

Will California Completely Prohibit the Sale of Hemp Derived Cannabinoid Products?

Gov. Gavin Newsom issued emergency regulations in September 2024 pursuant to which hemp food, beverages and dietary supplements intended for human consumption must contain no detectable THC or any “comparable cannabinoid” per serving, have a minimum purchase age of 21 and have no more than five servings per package.

California Department of Public Health (CDPH) recently issued a Notice of Proposed Rulemaking that will codify Gov. Newsom's prior emergency regulations. The public has 45 days to send written comments to CDPH, and a public hearing will be held on July 28, 2025. 

As indicated in the Cannabusiness Times article by Tony Lange, CDPH projects roughly 100 of the state’s 115 licensed hemp manufacturers would be eliminated from the marketplace. Of the 15 CDPH-licensed manufacturers remaining in the market, approximately 10 would be expected to incur relabeling costs at an average of $20,000 per business. In total, about 50 businesses would incur those relabeling costs.

We will continue to monitor this situation and advise you as soon as we learn of any updates. 

The California Department of Public Health's proposal to immortalize Gov. Gavin Newsom’s 2024 emergency regulations for the hemp industry represents $3.1 billion in lost revenue for California businesses which manufacture and sell hemp products.

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