Industry-Killing California Bill Outlaws Non-Intoxicating Hemp Products, Costing $250 Million in State Sales Tax Revenue and Up to 41,000 Jobs LOS ANGELES , Aug. 14, 2024 /PRNewswire/ -- In a devastating setback for California's wellness industry, Assembly Bill 2223 outlaws consumer retail access to non-intoxicating, low-THC hemp products. Rather than eliminating THC products entirely, the proposed legislation shifts exclusive retail control to marijuana dispensaries, effectively monopolizing the California hemp industry and stripping consumer health options.
If passed unamended, AB 2223 threatens to shutter hundreds of California hemp retailers, jeopardizing approximately $250 million in sales tax revenues and 41,210 jobs, according to the 2023 National Cannabinoid Report by Whitney Economics, the most comprehensive analysis based on state-level data. Despite its intentions, AB 2223 adds little to protecting the welfare of California residents. Existing laws and regulations, when adequately funded and enforced, are already sufficient to protect consumers.
Current regulations, particularly those aimed at safeguarding children, have proven effective in recent law enforcement actions . "We want to support good actors by going after these bad actors," CDTFA spokeswoman Yating Campbell said in a recent statement . Instead of allocating more resources to close enforcement gaps, AB 2223 threatens to destabilize a crucial industry that plays a significant role in consumer health.
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