Gov. Newsom's Total Ban On Hemp THC Could Crush California's Billion-Dollar Industry, Say Stakeholders (UPDATED)

Editor’s note: This story has been updated to include reactions from California hemp industry stakeholders.

California Governor Gavin Newsom made a sudden move on Friday, proposing emergency regulations that would completely ban THC, the intoxicating compound found in cannabis, from all hemp products in the state. 

The proposed regulations, released by the California Department of Public Health, would require that all industrial hemp food, beverage and dietary supplements produced for human consumption would need to be free of THC and other cannabinoids, reported the Hill.

Hemp products, which are essentially unregulated, can be easily bought online or at places like gas stations or convenience stores throughout the state. Newsom said in a statement that the emergency rules were necessary to protect children.

"We will not sit on our hands as drug peddlers target our children with dangerous and unregulated hemp products containing THC at our retail stores. We're taking action to close loopholes and increase enforcement to prevent children from accessing these dangerous hemp and cannabis products," Newsom said.

In addition to requiring that all hemp products in California have "no detectable amount of total THC," the governor and health officials want customers be over 21 to purchase the products. The rules still need the approval of the California Office of Administrative Law before they go into effect, according to the outlet.

Industry Stakeholders Quick To Respond

“Today's ’emergency action’ by Governor Newsom is a betrayal of California hemp farmers, small businesses, and adult consumers,” the Hemp Roudtable told Benzinga. “After having supported AB 45, which created a sound regulatory framework for the manufacture and sale of hemp products, Newsom's Administration fell on the job and failed to take any steps to enforce it.”

The Roundtable took the governor to task for not establishing policies to keep intoxicating products away from children rather than punishing the entire industry. “And in the middle of massive California budget deficits, he is unnecessarily throwing away nearly a quarter billion dollars in tax revenue from legitimate small businesses.”

The Hemp Roundtable vowed to explore all legal options in the coming days “with California hemp farmers and businesses that comprise the multi-billion-dollar industry that this action would destroy.”

Read Also: In Just 3 Months California Seized Over $53M In Illegal Cannabis, Gov. Newsom Announces More ‘Aggressive Actions’

Case Mandel, CEO of Cannadips, also spoke out. "This will destroy our business," Mandel told Benzinga. He explained that even though most Cannadips' products are THC-free, they come in packages of 15 servings, which would make them illegal under the new rules, which require packages be limited to just five servings.

"This will also attack the full-spectrum CBD industry that has provided high-quality products that people rely on in the state of California," Mandel said. "We can understand passing laws that affect what can be sold in CA. What we don't understand is why they affect what can be manufactured and sold legally nationwide. We ask that Gavin Newsom wises up and looks for legislation that actually represents his objectives, not private interests."

Read Gov. Newsom’s press release for more details and draft regulations.

• Read Next: In Amsterdam Style, California Senate Moves To Legalize Cannabis Farmers Markets And Cafes

Photo: Benzinga edit with images by Bureau of Reclamation via Wikimedia Commons and Rob Warner on Unsplash