California Rejects Proposed Regulations On Hemp, The Industry Celebrates, For Now

The California Senate Appropriations Committee has rejected an assembly bill (AB 2223) that would strictly regulate intoxicating hemp-derived cannabinoids.

This decision follows opposition from hemp industry supporters who issued a statement saying the bill “represented an unholy alliance between regulators and the companies they regulate – the largest marijuana companies who seek to destroy the new hemp industry.”

The statement from U.S. Hemp Roundtable followed a campaign urging people to contact their legislators, asking them to reject the bill. The group claims that thousands of emails were sent, highlighting the potential damage AB 2223 could cause.

As a result, the Senate decided not to advance the bill, effectively ending its progress for this year.

What Was Assembly Bill 2223?

Introduced by assembly member Cecilia Aguiar-Curry, the bill sought to change California's cannabis laws by integrating hemp and cannabis products. It also aimed to impose stricter rules on synthetic cannabinoids.

The U.S. Hemp Roundtable and others argued that the bill's limits on THC content could effectively ban most hemp products from being sold, including important CBD products that many patients use for medical treatment. That would have been the case for Bonni Goldstein, MD, who warned that the potential regulations would have prevented one of her patients from accessing necessary treatment.

In an email to Benzinga Cannabis, another industry leader celebrated the rejection of AB 2223. "We respect the legislature’s thoughtful consideration regarding AB 2223. Their decision to pause the bill’s progression underscores a commitment to careful policymaking that prioritizes consumer safety—a goal shared by all parties involved,” said Jonathan Black, CEO of Cheech & Chong's Global Holding Company.

Ted Whitney, director of sales at Squared also weighed in. “The decision to discard AB 2223 marks a significant moment for the future of cannabis in California and beyond.”

Read Also: Strategy Shift In The Works? Are Cannabis Giants Getting Into The Hemp Derived-THC Market?

How To Regulate Hemp Products? That Is The Question

Although the bill has been halted for now, the debate over hemp regulation in California will likely continue.

“We are eager to continue our work with the governor’s office and Assembly Majority Leader Cecilia Aguiar-Curry. Together, we aim to craft legislation that not only protects consumers but also supports the continued growth of the hemp market.” Black added.

Hemp derived products and synthetic cannabinoids are available all over the country. Certain states have moved to ban them. But in California, industry groups are calling for a different approach, the likes of which has been undertaken in New Jersey as an alternative to point blank prohibition.

Jonathan Miller, general counsel of the Hemp Roundtable proposed a regulating path for the Golden State.

“It's time to require good manufacturing practices and truth in labeling, and to keep adult products away from children,” he said.

“The war on hemp continues on Capitol Hill and in state capitals across the country” reads a statement from the Hemp Roundtable emailed to Benzinga Cannabis.

Resounding words.

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