Proposal for tight THC limits criticized for potential market collapse of CBD in California

Proposal for tight THC limits in California criticized for potentially eradicating CBD market

A new amendment proposed by the California Department of Public Health is facing criticism from opponents who claim that it would have a detrimental impact on the market for broad spectrum and full spectrum CBD products due to its strict limits on THC content.

The amendment proposes a total THC limit of 0.001 milligrams per gram and restricts hemp-derived cannabinoid products to five servings per package. The U.S. Hemp Roundtable, a trade group, warns that these measures would severely damage, if not completely destroy, California’s hemp-derived cannabinoid market.


The U.S. Hemp Roundtable (USHR) describes the proposed changes as “draconian” and believes that only marijuana companies would benefit from the amendment.

The amendment would be added to Assembly Bill 420, which aims to enhance existing hemp laws and crackdown on unethical practices in the industry. Assemblywoman Cecilia Aguiar-Curry, a long-time supporter of the hemp industry, introduced AB 420.

AB 420 would revise and redefine certain terms within the Sherman Food, Drug, and Cosmetic Law, which regulates industrial hemp. It would also expand the prohibition on raw hemp extract containing more than 0.3% of tetrahydrocannabinol (THC) or a comparable cannabinoid, and ban the manufacturing, distribution, or sale of industrial hemp products that contain cannabinoids not naturally present in commercially significant quantities, unless authorized by the department through regulation.

Rejection Urged

The bill would additionally require out-of-state hemp food and beverage businesses to register in order to sell their products in California.

However, the proposed maximum THC limit of 0.001 mg/g would have a devastating impact on the hemp cannabinoid sector in California and across the country, according to Jonathan Miller, General Counsel for USHR. The trade group urges stakeholders to urge Aguiar-Curry to reject the amendment.

AB 420 is a subsequent bill to Assembly Bill 45, which Aguiar-Curry previously helped pass into law. AB 45 eliminated restrictions on the marketing and sale of cannabinoid-containing extracts, dietary supplements, food, beverages, cosmetics, and pet foods. It also mandated the development of guidelines by the state’s Department of Cannabis Control for incorporating hemp cannabinoids into California’s cannabis supply chain. AB 420 is based on those guidelines.

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