Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Cannabis Marketplaces topic
No spam. Unsubscribe anytime.
Committee advances bill to hold online marketplaces accountable for illicit intoxicating hemp and unlicensed cannabis sales
Summary
SB 378 would create civil remedies against online platforms that profit from or promote illicit intoxicating hemp and unlicensed cannabis products; the subcommittee referred the bill to Judiciary after robust testimony from licensed industry, labor and hemp stakeholders.
Senator Scott Wiener’s SB 378, which would permit consumers to seek civil penalties against online marketplaces that advertise or facilitate sales of illicit intoxicating hemp and unlicensed cannabis products, advanced out of the Assembly subcommittee and was referred to the Judiciary Committee.
Wiener told members the legal cannabis industry in California is heavily regulated for health, safety and testing; he said illicit online sales and intoxicating hemp are undercutting licensed retailers and putting consumers — especially minors — at risk because many online sellers do not verify age or test products.
Supporters included United Food and Commercial Workers (UFCW) Western States Council, Sweetflower (a licensed retailer), local governments and county public‑health groups. UFCW legislative director Kristen Heidelbach said the illicit market undercuts worker protections and tax revenue; Sweetflower CEO Timothy Dodd described customer safety risks from untested products and said his business has paid millions in state and local taxes. Dozens of city and county officials and consumer groups registered support.
Opposition came from hemp‑industry and online‑platform representatives. The U.S. Hemp Roundtable and others said the bill’s definitions could sweep lawful hemp wellness products into the prohibition and urged more precise definitions; TechNet and other industry witnesses raised implementation and compliance concerns. eBay noted pathway‑to‑compliance issues for peer‑to‑peer marketplaces.
The subcommittee recorded a due‑pass referral of SB 378 to Judiciary; the final reported vote was 13–0 in favor of due‑pass to Judiciary.
