Jacob and Lindsay Dunn with their son Bodhi, 2, own Sow Eden Organics, a CBD-hemp product company, on Sept. 16, 2024, in La Verne, California. Gov. Gavin Newsom is proposing regulations that would immediately render illegal much of the industry and the products it creates. The Dunns are concerned the new regulations will put them out of business.
Most hemp industry advocates acknowledge a need to tweak the rules to ensure products are safe and available only to adults, but they said Newsom has gone too far by taking a zero-tolerance approach. “This is a full-on, family-run small business,” Lindsey Dunn said Monday. “It’s hard to know whether we can launch new products right now…. It’s a huge deal. It’s a huge expense.”
Cannabis and THC remain strictly controlled under federal law. But hemp — a lower-THC variant of the cannabis plant, long used for commercial products such as paper and rope — received a boost from the 2018 Farm Bill, which eased federal restrictions. Ajay Narain, chief executive of Beacon Beverages, based in the city of Campbell, near San José, said his company pivoted from alcoholic beverages to mocktails infused with hemp-derived THC and CBD in February.
In 2021, Newsom approved a state law that capped at 0.3% the total concentration of THC in food, beverages and cosmetics that contain hemp, and defined how such products must be tested and labeled. “Unlike their cannabis counterparts, these products… can be produced, distributed, and sold with minimal legal hurdles, making them a hot commodity,” the report said.
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