California Bill Would Reverse Some Law Provisions Banning Hemp-Derived Products
California had passed a law banning hemp-derived THC, leading to the implementation of regulations by the California Department of Public Health that would eventually prohibit up to 95% of hemp products. The regulations, effective from September 2024, stipulated that no detectable levels of THC or other intoxicating cannabinoids per serving were allowed. This law and its regulations have had a significant negative impact on the CBD industry in California. However, there is hope on the horizon as Democratic Assembly Majority Leader Cecilia Aguiar-Curry introduced Assembly Bill 8, which aims to lift the THC ban with certain conditions.
The law that went into effect in September 2024 is called the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MCAUCRSA). AB 8 says “AUCRSA does not prohibit a licensee from manufacturing, distributing, or selling products that contain industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp, if the product complies with all applicable state laws and regulations.”
Put simply, as long as the THC content in hemp is 0.3% or less on a dry weight basis, it is legal. The same applies to hemp-derived products, like CBD oils and gummies. However, the ban on cannabinoids produced through chemical synthesis remains in force. Also prohibited is the use of THC isolate as an ingredient. These regulations are in place to ensure fairness and safety in the industry, providing consumers with reliable and non-intoxicating products.
AB 8 further clarifies that total THC is the sum of THC and THCA, preventing some producers from taking advantage of a loophole in the 2018 Farm Bill. The Farm Bill does not explicitly address THCA. This loophole enabled them to sell THCA flowers because the buds were natural, non-intoxicating and obtained from the hemp plant. However, when THCA flower is heated, it becomes THC and is capable of producing a high. AB 8 gives THCA the same status as THC.
Unfortunately, there are many manufacturers of hemp-derived products that undercut the laws by taking advantage of loopholes in the law. Legitimate CBD businesses strive to meet the state laws that limit THC content in their products. They find themselves trying to compete with companies that skirt the law and sell psychoactive products that were never intended to be legal. This forces each state to revisit its laws, leaving CBD producers confused but also paving the way for potential improvements through laws with more clarity.
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