Governor Gavin Newsom‘s Friday announcement that his administration intends to undertake emergency regulations that would ban hemp products containing any "detectable amount of total THC" sent shock waves through California’s hemp and cannabis industry. Newsom said in a statement that the emergency rules, which include limiting sales to five servings per package and exclusively to adults over 21, were essential to protect children from “dangerous hemp and cannabis products.”
Cheech and Chong's Global Holding Company (CCGHC) joined the chorus of cannabis and hemp industry stakeholders to comment on the governor's move.
“We understand the challenges the governor’s office is addressing, but we believe that an outright ban is unnecessary and unsupported by the facts. Our products are explicitly designed for adult use and are not targeted at children. We are committed to collaborating with the Governor to ensure the safety of all consumers, particularly minors,” said Jonathan Black, CEO of CCGHC in a statement shared with Benzinga.
The CCGHC added that that low-dose hemp-derived THC products should be regulated similarly to alcohol and tobacco.
Cheech and Chong’s Cannabis Company, known for its stringent testing procedures that include third party-party labs results, pointed out that its products are “age-gated and marketed similarly to alcohol and tobacco to ensure that only adults have access to them.”
“Our products are developed with rigorous safety standards and thorough testing to ensure they pose no public risk. We value transparency and consumer protection and are always eager to collaborate with state regulators to foster an environment where safety and innovation coexist seamlessly,” said Brandon Harshbarger, president of CCGHC.
Ted Whitney, chief beverage officer of CCGHC said the proposed ban overlooks the preferences and rights of adult consumers, who are capable of making informed choices about hemp products.
“While we align with the Governor's office on the importance of public safety, we firmly believe that an outright ban misses the mark. Collaborative regulation, involving both the industry and state authorities, would more effectively protect public safety and uphold consumer choice,” Whitney stated. “It's disheartening that the proposed amendments and their potential to generate $210 million in tax revenue were overlooked. This oversight not only deprives Californians of a legitimate and safe market but also inadvertently benefits illicit operations.”
CCGHC noted that it would continue to advocate for regulations that support consumer choice without compromising safety.
Gov. Newsom’s proposed rules need the approval of the California Office of Administrative Law before they go into effect.
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