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US (CA): Charlotte's Web opposes new California hemp laws

Charlotte's Web stands in firm opposition to the new regulations in California that restrict the sale of many ingestible full-spectrum hemp CBD products that meet federal requirements. The Company says that it will continue working directly with the Governor and state legislators to push for changes or new legislation to preserve consumer access to non-intoxicating hemp-derived products in California. Charlotte's Web is actively collaborating with industry group, One Hemp, and consumer advocacy group, Coalition for Access Now, to support access to hemp-derived wellness products in California.

Bill Morachnick, Chief Executive Officer of Charlotte's Web, states: "While we fully support efforts to regulate synthetic and intoxicating products, we strongly oppose the inclusion of non-intoxicating, natural CBD products within this regulatory framework. We believe these regulations are overreaching and unnecessarily restrict access to safe, non-intoxicating hemp products by lumping them in with an entirely different class of products. Other states like Colorado and Virginia have set shining examples of how to clean up the market while safeguarding products that consumers depend upon for their health and wellness."

On September 23, 2024, California's Office of Administrative Law approved new emergency regulations filed by the California Department of Public Health as part of Governor Gavin Newsom's response to the failure of Bill AB 2223 to pass through the state legislature. Bill AB 2223 was designed to regulate intoxicating Delta-8 products; however, it did not have the merits or nuanced language to pass through the Senate Appropriations Committee. These new emergency regulations, effective immediately, circumvent the legislative process and impose significant limitations on the manufacture, distribution, and sale of a wide range of hemp-derived CBD products in California, including non-intoxicating, natural CBD products used by 5.4 million Californians.

Consumers who rely on non-intoxicating hemp products will face limited access as 57% of the cities and counties in the state do not allow any retail cannabis business.

Jared Stanley, a founding member of One Hemp, stated, "We have supported efforts to address bad actors in the hemp industry, but we were shocked that responsible hemp companies were included in this overreach. These companies have long advocated for quality and safety standards backed by science and research. The Governor's decision will harm the good actors in the industry and have dire consequences for families and veterans who depend on these products for their quality of life."

For more information:
Charlotte's Web Holdings
charlottesweb.com

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