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As we previously advised you, on October 2, California Governor Gavin Newsom signed AB-8 and issued a press release touting he signed "legislation to regulate intoxicating hemp products and give government agencies tools to stop illegal sales". AB-8 outlaws synthetic cannabis products and inhalable cannabis products containing cannabinoids derived from hemp. The California Assembly voted, 73-1, to concur with Senate amendments on Sept. 13, after the upper chamber voted, 37-0, the previous day to pass the bill.
Per Assembly Majority Leader Aguiar-Curry (D-Winters), "[b]ad actors have abused state and federal law to sell intoxicating hemp products in our State. As the author of legislation that allowed the legal sale of non-intoxicating hemp CBD products, this is absolutely unacceptable," She also emphasized, "[o]ur first job is to protect our kids and our communities. With this bill, we'll have responsible regulation, increase enforcement, and support struggling legal cannabis businesses against criminal competition."
Per Governor Newsom, the newly adopted amendments will:
✅ Creates clear rules: The bill establishes clear rules on how hemp should enter the licensed cannabis market.
✅ Protects our youth: The bill keeps intoxicating hemp products out of the hands of children, ensuring those products are sold through licensed dispensaries to qualifying adults.
✅ Helps consumers: The bill stops the sale of synthetic cannabinoid products and inhalable hemp products, while also carefully limiting the circumstances in which non-intoxicating hemp can be used in products outside the licensed cannabis market.
✅ Beefs up public safety: The bill creates new tools for state and local enforcement partners to go after unlawful cannabis and cannabinoid products.
Update
On September 6, 2024, Governor Newsom announced emergency regulations that prohibited the retail sale of hemp food, beverage, and dietary products containing detectable amounts of THC. The emergency regulations were in response to increasing health incidents related to intoxicating hemp products, which state regulators have found sold across the state. The prior emergency regulations however did not explicitly address online, direct-to-consumer sales of consumable hemp products.
Governor Newsom announced in a press release yesterday the he signed SB 378 into law (now Chapter 411, California Statues of 2025), which bans direct to consumer sales and advertisements of intoxicating or unregistered hemp products. Though cannabis is strictly regulated in California, federal legalization of hemp products, specifically hemp derived intoxicating and synthetic cannabinoids, created a loophole that allowing many hemp products to skirt California's safety requirements.
In response to the proliferation of hemp derived cannabinoid products across the United States, Senator Scott Wiener (D-San Francisco) introduced and sponsored SB 378, legislation to prevent online sales of illicit, unlicensed, non-safety-tested intoxicating hemp and cannabis products. Per Senator Wiener "SB 378 will support the legal cannabis industry and protect public health and safety by requiring online platforms to provide a disclaimer if they purvey illicit hemp and cannabis products and making them strictly liable for harms these products cause consumers".
Likewise, the rise of online platforms has made it easier for cannabis operators to market and sell their products. Per Senator Wiener "[t]hese platforms do not have effective mechanisms in place to screen for illicit content or to screen purchasers by age. Similarly, search engines often return results for "illicit shops near me," directing consumers to unlicensed cannabis or hemp retailers. These shops operate outside the scope of state tax systems and product safety regulations, making it difficult for authorities to track and regulate them".
Likewise, online platforms like Amazon and Instagram do not have effective systems in place to remove these products from online marketplaces, and they face no penalties for blindly selling products that present serious public health risks.
Accordingly, the new law will hold "online marketplaces" responsible for the sale and advertising of unlawful hemp (and cannabis) products to customers located in CA.
These marketplaces will have include conspicuous disclaimers and to establish reporting mechanisms.
Penalties are severe and include monetary fines for each violation.
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