Cornbread Hemp co-founder Jim Higdon holds some of the raw hemp plants that they use to produce CBD gummies and other products at their new Louisville location. January 16, 2025
Sacramento, California – California businesses are overwhelmingly complying with new state regulations aimed at banning the sale of hemp products that contain intoxicating cannabinoids, Governor Gavin Newsom announced Tuesday.
Since the emergency regulations took effect in September 2024, agents from the Department of Alcoholic Beverage Control (ABC) have visited 11,445 licensed businesses across the state. Of those, only 148 locations were selling prohibited products. In total, authorities removed 7,151 illegal items from shelves. The ABC reports a striking 99.7% compliance rate among business licensees in 2025.
“We are doing our part to ensure intoxicating hemp products are out of the reach of vulnerable groups like children,” said Governor Newsom in a statement. “We must always put the safety of Californians first.”
The emergency regulations, adopted by the California Department of Public Health (CDPH), prohibit the marketing, sale, or offering for sale of industrial hemp food, beverages, and dietary supplements that contain THC or any other intoxicating cannabinoids. Sales of these products to individuals under the age of 21 are also banned.
“These products were being sold without the same consumer protections required for cannabis,” said ABC Chief Deputy Director Frank Robles. “Our licensees have overwhelmingly complied with the regulation. On the few occasions when ABC agents found items during inspections, they’ve ensured these harmful products are removed from shelves.”
Enforcement of the new regulations is ongoing, and noncompliant businesses may face serious consequences, including criminal charges and license revocation. The ABC continues to conduct statewide inspections and publishes a weekly hemp enforcement update to track progress.
In October, a legal challenge to halt enforcement of the emergency rules was rejected in court, further strengthening the state’s authority to regulate hemp products. Regulators argue the measures are necessary to protect the public—especially minors—from unregulated, potentially harmful intoxicants.
California was the first state to legalize medicinal cannabis in 1996, and it approved recreational use in 2016. Unlike legal cannabis products, many hemp-derived products containing THC have been sold without mandatory testing, labeling, or age restrictions—creating a significant loophole exploited by some manufacturers and retailers.
The state’s regulatory agencies, including the CDPH, ABC, Department of Cannabis Control, California Department of Tax and Fee Administration, and law enforcement officials, are coordinating efforts to close that loophole and ensure only safe, properly regulated products are available in the marketplace.
Governor Newsom reaffirmed the state’s commitment to public health and consumer safety, calling the ongoing enforcement effort a model of regulatory action.
