In response to growing concerns about the risks posed by intoxicating hemp products to children, Governor Gavin Newsom announced proposed emergency regulations aimed at tightening controls over THC in industrial hemp products. These regulations, spearheaded by the California Department of Public Health (CDPH), take significant steps to alter the current trajectory of thc infused hemp derived food, beverages and dietary products, presently allowed under current California law.

The proposed regulations focus on preventing intoxicating cannabinoids, such as THC, from being included in hemp food, beverages, and dietary products. Specifically, they mandate that:

• No detectable THC is allowed per serving in hemp consumables.
• Age restrictions require that consumers of hemp products must be at least 21 years old.
• Package limitations restrict hemp products to five servings per package.

These measures reflect California’s emphasis on shielding children from potentially harmful products while attempting to align hemp regulations more closely with those in the cannabis sector. The state’s cannabis industry is already heavily regulated, ensuring consumer safety through stringent testing and labeling standards, and now hemp products will face similar scrutiny.

Impact on the Hemp Beverage Market

The proposed rules will directly impact the sale and production of THC-infused hemp beverages. Under the new guidelines, all consumable hemp products containing detectable THC must be removed from retail shelves immediately upon approval of the regulations. As state regulators, including the Department of Cannabis Control and the Department of Alcoholic Beverage Control, ramp up enforcement efforts, it is crucial for market participants to take proactive steps to ensure compliance.

At Holon, we are actively engaging in California’s democratic process to ensure that responsible actors in the hemp and beverage industries are not unfairly punished for the actions of bad actors who have skirted existing regulations. We strongly believe that adult consumers deserve access to safe and regulated hemp beverages, and we aim to collaborate with California’s government to help develop common-sense regulations. These rules should hold bad actors accountable while allowing responsible producers to meet the demand for safe and enjoyable products in this expanding market.

Our Role in the Regulatory Process

We are monitoring these developments closely and will continue to provide guidance to our clients as the rulemaking process unfolds. As these emergency regulations are not yet in effect, we encourage market participants to stay informed and prepare for potential changes. Holon will actively participate in the rulemaking process to advocate for regulations that ensure consumer safety without stifling innovation in the hemp beverage sector.

Our commitment is to help craft a balanced regulatory framework that allows good actors to thrive while protecting public health. We are ready to assist our clients in navigating these changes and ensuring that they remain compliant as these regulations take shape.

We encourage all stakeholders in California to actively participate in this process and ensure their voices are heard.

For further updates and guidance, reach out to Holon’s regulatory team.

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