Key Takeaways:
– Comedic duo Cheech Marin and Tommy Chong’s cannabis company, among other hemp businesses, filed a lawsuit against the California Department of Public Health over new rules banning some hemp products.
– The lawsuit alleges that the enforcement of these rules could result in the collapse of the hemp industry, with specific hits to small businesses.
– The lawsuit includes complaints from the U.S. Hemp Roundtable and hemp companies like JuiceTiva, Blaze Life and Boldt Runners.
– Governor Gavin Newsom previously announced emergency regulations to protect young people from hemp products, which took effect recently.
– The new regulations forbid the sale of hemp food, beverages, and dietary items with detectable THC content and set a minimum age limit and serving limit for hemp products.
Comedy Pair Champions the Cannabis Cause
Famed comedic actors Cheech Marin and Tommy Chong, also co-owners of a cannabis company, are heading a lawsuit against the California Department of Public Health. Their business, among with several others, have taken issues with newly implemented rules that ban certain hemp products. Expressing their reservations with these stringent regulations, they argue it might deliver a devastating blow to the budding hemp industry, specifically small business owners within the sector.
They compared the severity of these regulations to “requiring candy to stop containing sugar”. The lawsuit was filed in the Los Angeles County Superior Court and shines a spotlight on the ongoing discord between cannabis businesses and California regulators, who are currently grappling to appropriately regulate the hemp industry.
Tensions Rise as Hemp Businesses Push Back
Alongside Cheech and Chong’s company, other organizations and businesses—such as JuiceTiva, Blaze Life, Boldt Runners and the U.S. Hemp Roundtable—are joining the legal fight against the new rules. The plaintiffs argue they stand to lose millions if the rules are employed, potentially leading to their shutdown.
These budding tensions come after Governor Gavin Newsom’s recent announcement around emergency regulations aimed to safeguard young people against hazardous hemp products. The regulations, which are now in effect, outlaw the sale of hemp food, beverages, and dietary products with traceable amounts of THC, the brain-affecting compound found in the cannabis plant. They also require a minimum age of 21 for hemp product purchases and limit servings to five per package.
Hemp Industry Reacts to Regulatory Shift
The products sold by Cheech and Chong’s cannabis venture include hemp-derived THC beverages, marketed extensively across California and beyond. The California Department of Public Health, however, is yet to comment on these legal proceedings.
Although the department has informed earlier in the year about potential dangers of certain hemp products for youth consumption, stating it could negatively impact cognitive functions, memory and decision-making faculties in young developing brains, the justification and extent of these sudden regulations are under intense scrutiny.
Legal Complexities Around Hemp Regulation
These new regulations stem from Assembly Bill 45, legislation passed in 2021 legalizing and enforcing regulations on hemp cannabinoids that provide relief from afflictions such as pain, anxiety, insomnia and more.
The lawsuit alleges that the health agency has breached state and federal laws, concurrently violating laws surrounding hemp production and rule-making procedures. The plaintiffs argue that the new rules depart considerably from the discussed legislation and impose unlawful restrictions around hemp product servings, which don’t align with current health and safety codes.
In a bid to stave off further damages, the plaintiffs are seeking a court order to impede the enforcement of these emergency regulations, amidst predictions of potentially catastrophic losses for industry actors. This lawsuit marks a critical development within the U.S. hemp industry and sets a precedent for ensuing battles between regulators and businesses in this rapidly evolving sector.