The U.S. Hemp Roundtable is declaring victory against California Assembly Bill 2223 after news broke that the bill had been officially suspended for 2024. Introduced this year by Assembly Majority Leader Cecilia Aguiar-Curry, the Roundtable was strongly encouraging state legislators to vote "no" as the industry group felt the bill was a step in the wrong direction towards the fight to legalize hemp cannabidiol (CBD) products in California.
When the bill was introduced, Aguiar-Curry said, “When the 2018 Farm Bill legalized industrial hemp nationwide, the market was flooded with new, legal hemp products. In 2021, my Assembly Bill 45 created the strongest structure in the nation for regulating these products, registering companies to fund enforcement against illegal products, and implementing needed guardrails on hemp products,. We have made it clear that synthetic intoxicants were not legal in hemp products. Those products were sold illegally prior to the bill, and unfortunately still are. I’ve introduced AB 2223 to protect public health by greatly enhancing the tools available to state and local health and law enforcement officials to stop the sale of these products. We must act this year to enhance the restrictions under AB 45 so we can adapt to this constantly evolving illegal market. The bottom line is that if it gets you high, it should not be sold outside a dispensary. Period."
Reaction from Hemp Advocates
Hemp advocates first expressed concerns with the verbiage used in the bill, which was described as "just a starting point of the discussion", and then with its inclusion of unrealistic requirements that would lead to the banning of 90%-95% of hemp products available for retail sale including most non-intoxicating CBD products that were a central point of passage of AB 45—a predecessor to AB 2223.
Assembly Bill 45 was born in 2021 from the initial legislative efforts of Assembly member Aguiar-Curry, other legislators, members of the Governor's team, and the U.S. Hemp Roundtable. Designed to create a balanced, rational, and responsible structure to help legalize hemp CBD products in California, AB 45 played a major role in the industry's nearly $4 billion growth with virtually a quarter billion dollars in sales tax and other revenues and the employment of over 40,000 individuals across the state.
The bill's eventual loss of momentum led to Assembly Bill 420. Another attempt at state and federal protection to protect consumers, children, and the integrity of the industry eventually ended up being held in committee. Fast forward to 2024 and not only did AB 2223 appear to fail to meet the goals of those most involved in the industry, but it also garnered the wrong type of attention from other federal departments. One such authority, the California Department of Cannabis Control, recently released 41 pages of new amendments proposing that all hemp products containing THC fall under their purview and be banned from retail sale.
Jonathan Miller, General Counsel, U.S. Hemp Roundtable, urged Californians to reach out to CA Governor Newsom and the General Assembly and demand that they reopen the lines of communication with industry representatives to create a more meaningful collaborative effort. "If this plan is allowed to become law, it will be a stunning reversal of a pathway adopted with strong bipartisan support in the Legislature and the intimate involvement of the Administration. It will effectively convey to small businesses across the state that the state does not care to support businesses that play by the rules. If we don’t like the product you sell, we will do whatever it takes to put you out of business."
Additional information on this ongoing issue is available here.
