Committee weighs SB 378 to hold online marketplaces accountable for illegal intoxicating hemp and illicit cannabis listings

Sen. Wiener presented Senate Bill 378, which he said would let consumers and regulators seek penalties against online marketplaces that advertise illegal intoxicating hemp or unlicensed cannabis products and would require more active marketplace accountability.

Wiener said he planned to remove industrial hemp references and to add protections for good‑faith actors, including an affirmative defense if a state website misidentifies an advertiser. He framed the bill as protection for licensed, safety‑tested cannabis businesses and consumers: “We have a legal cannabis industry that is licensed, safety tested, accountable… and that industry is collapsing” due to online illicit vendors, he said.

Supporters emphasized public‑safety and economic harms from unregulated online sellers. Kristen Heidelbach of UFCW Western States Council, representing licensed cannabis workers, said their study of online intoxicating hemp found widespread problems: “We purchased hundreds of illegal products… 91% didn't charge sales and use tax…and 95% of them contained synthetics.” Tiffany Devitt, representing a San Diego joint labor‑management cannabis committee, said she was “here to talk about the impact on the licensed cannabis industry” and said 70% of licensed California manufacturers had surrendered their licenses in recent years.

Opponents urged narrower drafting and warned of collateral consequences to lawful hemp wellness businesses and to platforms. Jose Torres of TechNet said SB 378’s definition of online marketplace was “greatly broad” and that strict liability could sweep in mapping services, search engines and social platforms. Attorney Shay Gilmore, representing hemp wellness manufacturers including MedTerra, warned the bill “would effectively ban the direct to consumer sale of most hemp products online” unless amended to distinguish non‑intoxicating wellness products and include testing, labeling and age verification standards.

Committee members focused on narrowing language, whether to exempt legitimate businesses, and on questions about standing and federal constitutional limits such as the dormant commerce clause. Wiener said he would continue to work with stakeholders on a narrower framework and to add an affirmative defense and clarifications to avoid sweeping in lawful wellness products.

Ending: Wiener and supporters framed SB 378 as a public‑safety and market‑integrity measure for licensed cannabis businesses; platforms and hemp manufacturers urged sharper tailoring to avoid bans on lawful wellness commerce. The committee moved the bill to appropriations.