The U.S. Hemp Roundtable, Cheech and Chong's Cannabis Company and several California hemp farmers and businesses petitioned California courts on Friday for a temporary restraining order (TRO) to prevent the enforcement of Governor Gavin Newsom's emergency regulations to ban all hemp products containing any “detectable amount of total THC.”
Plaintiffs challenging Newsom's ban, which sent shock waves through California's hemp and cannabis industry, are asking a state judge to temporarily halt enforcement of the new rules while the legal challenge proceeds, arguing that the prohibition is unlawful and will cause irreparable harm to the hemp industry. The emergency regulations bans 90-95% of hemp products on the marketplace, including manufacturing or selling them in California.
"If allowed to remain in effect, the Emergency Regulations will eliminate nearly every ingestible hemp product currently for sale in California, including the vast majority of nonintoxicating products," the plaintiffs argued in their filing. "Many small businesses will have to close operations immediately with millions in losses. Relief is thus warranted because the Emergency Regulations are substantially unlawful and have in any event been adopted by drastically unlawful means."
In the initial lawsuit filed in late September, plaintiffs argued that the state had declared an "emergency" without basis and failed to implement existing hemp legislation, which was passed in 2021. "The Department [of Public Health] had nearly three years to address these issues," the TRO request states.
"We are hopeful that the Court will temporarily block – and then ultimately, permanently enjoin – Governor Newsom's misguided efforts to devastate hemp farmers, business and product consumers in California," Jonathan Miller, the Roundtable's General Counsel stated in an email shared with Benzinga. "It's high time that the Governor abandon this punitive effort and sit down with all stakeholders to appropriately address his stated mission: to develop a robust regulatory regime that promotes health and safety and keeps hemp products out of the hands of minors."
Newsom's ruling also includes a ban on manufacturing and selling hemp-THC products intended for sale outside California. This broad scope threatens the entire national supply chain, say experts, raising concerns over state overreach and violations of interstate commerce laws.
Newsom's ban went into effect on Sept. 23, immediately after it was approved by the Office of Administrative Law.
The hearing for the TRO has been scheduled for 9:30 AM PDT/12:30 AM EDT, Thursday, October 10th. Nolan Jackson, the Hemp Roundtable's regulatory counsel, will be arguing the motion on behalf of the plaintiffs.