California’s Proposed Bill Aims to Integrate Hemp Products into Cannabis Market

1.5 min readPublished On: February 13th, 2024By

LOS ANGELES- In an effort to further regulate the cannabis industry, California lawmakers have introduced a draft bill that seeks to place hemp products under the same regulatory umbrella as cannabis. The proposed legislation, which was recently presented to the California Assembly, aims to establish new standards for hemp-derived products, including restrictions on intoxicating cannabinoids and the implementation of hemp food and beverage guidelines.

Under the new bill, cannabis manufacturers and other industry operators would be permitted to utilize hemp and its derivatives, with regulations set to be established by July 1, 2025. These products would still be required to adhere to existing industry rules, such as track-and-trace measures, to ensure transparency and safety.

A significant aspect of the proposal is its stance on synthetic cannabinoids. The bill seeks to prohibit the use of delta-9 THC that has been converted from a hemp-derived cannabinoid. Furthermore, retailers would be barred from selling products containing converted delta-9 tetrahydrocannabinol. This move aims to address concerns regarding the safety and regulation of synthetic cannabinoids in the market.

The draft bill also introduces new standards for hemp food and beverages, including regulations on serving sizes and a limitation of five servings per package. Additionally, it outlines definitions for hemp dietary supplements, encompassing pills, tablets, and capsules.

It’s important to note that the draft proposal is still in its early stages, with some sections left incomplete, such as the maximum amount of THC permitted under a proposed potency cap. As the bill undergoes further review and potential amendments, its final form and implications for the cannabis industry remain uncertain.

California’s cannabis industry, which includes both medical and recreational sectors, is the largest legal market in the world, with combined sales reaching $5.9 billion in 2023. The introduction of this bill reflects the state’s ongoing efforts to refine and regulate the evolving cannabis market, ensuring consumer safety and industry compliance.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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