Senate committee advances bill to treat intoxicating hemp like regulated cannabis; supporters and opponents clash over budget and enforcement

Assemblymember Aguiar Curry presented AB 8 to the Senate Revenue and Taxation Committee as legislation to close loopholes that allow intoxicating hemp products to be sold outside the licensed cannabis supply chain. The author said the bill would expand enforcement authority, ban all synthetic THC, and require products with any level of THC to be treated as cannabis — subject to registration, regulation and taxation.

“Today, I'm here to make sure that the law can be properly enforced and interpreted,” Assemblymember Aguiar Curry told the committee. In describing the bill she said it focuses on three issues: expanding enforcement, closing loopholes for intoxicating hemp products, and integrating intoxicating hemp into the legal cannabis supply chain so that products with any THC level face full registration, regulation and taxation.

Witnesses in support included Kristen Heidelbach of the United Food and Commercial Workers (UFCW) Western States Council, who said the bill is “a critical step towards ensuring that any intoxicating hemp derived product is sold exclusively through licensed dispensaries.” Ryan Sherman of the California Narcotic Officers Association said AB 8 “will better protect our youth, public safety, and health” by banning certain inhalable hemp products and allowing out-of-state hemp manufacturers to register with the state.

Support also came from a coalition of cannabis businesses and local governments, including the California Cannabis Operators Association, the California Cannabis Industry Association, and representatives of county governments and retail trade groups.

Opposition witnesses included tribal leaders, youth-service organizations and environmental and child-advocacy groups who said the bill's budget effects would harm programs funded by cannabis tax revenue. Jim Keddy of Youth Forward told the committee that AB 8 “is not revenue neutral,” and warned of large reductions to childcare and youth programs. Tony McNeal of Concrete Development Inc. said redirecting or reducing cannabis tax revenue would harm community programs supported by those funds.

Committee members expressed concern about balancing enforcement against illicit markets with the need to protect revenue streams that fund youth and environmental programs. After deliberation, the committee moved AB 8 to the Committee on Appropriations. The committee recorded the motion as passing (5–0).