On September 23, 2024, new emergency regulations went into effect in California impacting hemp and CBD products. With enforcement led by multiple state agencies (namely The Department of Public Health, Department of Cannabis Control, Alcoholic Beverage Control (ABC), and the California Department of Tax and Fee Administration) these emergency regulations prohibit hemp and CBD products from having any detectable THC or other intoxicating cannabinoids per serving, create a minimum age of 21 to purchase hemp products, and limit the number of servings of hemp products to five per package. In fact, the ABC wasted no time and has already begun contacting alcohol license holders to inform them about the new rules and ensure non-compliant products are removed from shelves.
In response to these emergency regulations, a lawsuit has been filed against the California Department of Public Health by the U.S. Hemp Roundtable, along with several plaintiff businesses including Cheech and Chong’s Global Holdings, Juicetiva, and Blaze Life. The suit argues that the government failed to prove the need for emergency legislation and requests a temporary injunction to halt enforcement, along with a ruling to declare the regulations unconstitutional.
These interim regulations are set to expire in March 2025, as lawmakers work on permanent legislation to regulate the industry. The legal and regulatory landscape is still evolving, and further updates are expected as enforcement actions and court decisions unfold.
