A new bill introduced in California, AB45, will create confusing new bureaucracy adding burdensome regulations and compelling California state agencies to inspect and certify out-of-state hemp facilities selling into California, says the Hamp Farmers Guild.
According to the Guild, AB45 doesn't just inhibit California hemp farmers in the middle of this season's grow from selling their crop, but will also shut down thousands of California's CBD Wellness companies by criminalizing their products.
"As of August 31, 2021, California's 290 licensed hemp farms this year, alone, are accounting for between 1,740 and 3,335 jobs, annually totaling $62.8M - $120.3M in wages paid and $150.6M - $324.8M in indirect economic benefit," says Beau Whitney, economist, Whitney Group and National Industrial Hemp Council.
"Adding to these are the many other jobs created by businesses specializing in smokable hemp and whole-plant extracts, such as post-harvest processors, manufacturers, and retailers, most of which are small, frequently family-owned enterprises."
AB45 was written and sponsored by Assembly member Cecilia Aguiar-Curry.
The bill has Governor Gavin Newsom's blessing and was drafted in close consultation with large Multistate Marijuana operators and Hemp Round Table and outside corporate lobbying groups who are attempting to take control of the California hemp industry, says the Guild.
The author did not seek sufficient input from California farmers and other stakeholders actively involved in the hemp industry in CA.
These groups have aggressively pushed AB45, anl anti-farmer bill masquerading under the guise of consumer safety that will harshly regulate the nascent industry to death, says the Hemp Farmers Guild.
The guild says the bill disproportionately affects small and minority-owned hemp farmers as well as mid-size service and CBD products companies who have already spent millions establishing themselves in California.
"AB45 will take this promising market away from our diverse hemp farmers and hand it to Big Marijuana and Big Pharma," says Josh Schneider, CEO of Cultivaris Hemp, president, Hemp Farmers Guild.
Justin Fiore, CEO of Milestone Hemp/Source Extracts, a national distributor of hemp and hemp-derived products notes that headlines like "Gov. Newsom drops support for ban on smokable hemp in California" and "Smokable hemp ban removed from California Bill" are misleading for the industry.
"The ban was not removed," says Fiore. "Inhalable products are currently banned until a tax is enacted which could be years if ever."
About Hemp Farmers Guild
The Hemp Farmers Guild works to educate legislators, regulators and farmers on the issues and challenges facing the hemp growers of California. We advocate for reasonable legislation and responsible regulation that helps ensure safe, high-quality products are available for all the residents of our state.
