California Hemp-Ban Threatens 40k Jobs, Industry Outraged at Newson

California’s hemp industry is up in arms. The target of their outrage? Governor Gavin Newsom. 

Newsom’s Hemp Bombshell

A new bill backed by Newsom, AB 2223, has shocked the hemp industry, with retailers warning it could destroy their businesses and lead to major job losses across the state. 

From Minor Tweaks to Major Overhaul

The thing that has the industry angry is that AB 2223 is not just a few minor tweaks to existing laws – Newsom’s changes could turn the entire hemp industry on its head by lumping it together with the state’s heavily regulated marijuana market.

CBD Apocalypse

This is a move that could force many hemp-derived CBD products right off the shelves. During a heated hearing on Monday, hemp retailers didn’t hold back, telling lawmakers that Newsom’s proposal would be a death sentence for their businesses. 

Counting the Cost

Patrick Shatzer, the manager of regulatory affairs at Sunmed, one of California’s leading hemp retailers, made it clear that AB 2223 “jeopardizes $250 million in sales tax revenue and over 41,000 jobs.” 

Not Just Hot Air

And this isn’t just fear-mongering – Sunmed alone has poured more than $400,000 into the state’s reserves in the last three years. 

Newsom’s Cannabis Crackdown

Newsom’s office seems laser-focused on tightening the reins on the state’s booming cannabis market, especially the more loosely regulated hemp sector – and it could cause chaos. Hemp products with any detectable THC would be forced to be sold exclusively through licensed dispensaries.

Jumping Through Blazing Hoops

While that might sound good on paper, in reality, it’s basically telling small businesses to jump through blazing hoops just to stay alive.

Drawing the Line

“This bill is a good bill,” Shatzer said, “but the line of intoxication that it draws on THC is so low that it doesn’t allow normal, general wellness to survive.”

Synthetic Cannabinoids and Hemp Flowers Face the Axe

But that’s not the only part that’s raising eyebrows across the industry. Newsom’s amendments would also ban synthetic cannabinoids and the retail sale of hemp flowers in any form. For many small businesses, that’s a death sentence. 

The Quest for Pure CBD

Even products labeled as “pure CBD” would have to be totally THC-free, making it nearly impossible for some companies to continue operating as they do now.

California vs. Federal

That’s a much stricter standard than what’s currently on the books federally, which allows for up to 0.3% THC in hemp products.

Marijuana Growers Join the Fray

It’s not just the hemp crowd that’s upset – licensed marijuana growers are also up in arms. They argue that allowing out-of-state hemp to enter California’s cannabis supply chain without the same tough regulations they have to follow would create unfair competition.

Growers Sound the Alarm

Growers are fuming and warning that this could spell disaster for local businesses already struggling under the state’s heavy-handed regulations.

Medical Marijuana Families Fight Back

Adding to Newsom’s problems are the parents of children who rely on hemp-derived CBD for medical treatment. They’re calling out Newsom, arguing that if these stricter regulations pass, it could block access to the products they depend on to manage serious conditions like epilepsy.

Capitol Showdown

Families are planning to take on these measures and protest at the Capitol to make sure that the bill doesn’t cut off their lifeline.

Lawmakers Dodge the Details

Lawmakers have been reluctant to engage deeply with the policy details. During Monday’s hearing, chairwoman Anna Caballero made it clear that the focus of the hearing was only on the financial impact, not the implications for the industry or the people who depend on hemp.

Industry Cries Foul

What’s really got people angry is the way Newsom’s amendments were rolled out – just weeks before the legislative session ends. Critics say there’s hardly any time left for public input or appropriate scrutiny.

Politics vs. People

Many in the industry feel like they’re being steamrolled by a governor who’s more interested in playing politics than in understanding the impact his policies are having on everyday Americans.

Hemp vs. Marijuana

The tension between hemp and marijuana isn’t new, but Newsom’s latest move has brought it to a boiling point. 

Will Lawmakers Listen?

A spokesperson for Origins Council – a California policy nonprofit that focuses on sustainable cannabis development – called the proposed changes “tremendously impactful” and pushed for a full, public review of the bill. But with the legislative session ticking down to its final days, time is running out.

California’s Hemp Industry

It’s clear that the future of California’s hemp industry is hanging in the balance. Will lawmakers side with Newsom, or will they listen to the voices of thousands of Californians whose jobs and health depend on hemp? We’ll have to wait and see.

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Featured Image Credit: Shutterstock / Sheila Fitzgerald.

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