Marijuana Monopolies Back Industry-Killing Hemp Legislation: Small Businesses Respond

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Jul 25, 2024, 10:22 ET

Proposed Bill Endangers Access to Safe, Non-Intoxicating Wellness Products in California

LOS ANGELES, July 25, 2024 /PRNewswire/ -- In a devastating blow to California's brick-and-mortar hemp industry, consumers, and small business owners, Assembly Bill 2223 threatens to decimate non-intoxicating, low-THC hemp products, sparking widespread economic and regulatory concerns while jeopardizing access to safe and effective relief options for Californians. Rather than eliminating THC products entirely, the proposed legislation shifts exclusive retail control to marijuana dispensaries, effectively forcing out industry-leading wellness retailers from the state.

Of the 19 independently owned and operated Sunmed | Your CBD Store locations in California, 10 are located in townships where marijuana dispensaries are prohibited. This regulatory landscape makes conversion to dispensaries impossible, leaving consumers without legal access to wellness alternatives and small business owners with no viable options for continued operation.

"Conversion to dispensaries is neither financially obtainable nor desirable for store owners like myself, as our products are not designed for intoxication and do not cater to recreational marijuana users. Customer feedback and sales data consistently show that our consumers seek full spectrum hemp for health and wellness benefits," said Chad Paydo, owner of Petaluma, Lafayette, and Concord Sunmed | Your CBD Store locations.

"Our clinically proven formulas assisting with sleep, anxiety, and relief will be criminalized under the current draft bill, while dispensaries offering highly intoxicating THC products continue to proliferate."

AB 2223 imposes an egregious cap on non-intoxicating hemp products at 0.25mg total THC per serving or 1mg total THC per package, eliminating 80% of Paydo's store inventory without a grace period.

Proposed amendments to current law do not ban any currently sold full spectrum products but reassign the retail rights, further monopolizing the market for cannabis and hemp products. The fiscal impact of this bill is estimated to be in the millions, increasing California's already strained budget deficit.

"Since October 2021, Sunmed | Your CBD Store locations in California have generated an estimated $5.8 million in hemp CBD product sales and contributed approximately $420,000 in state taxes, creating hundreds of jobs. Every one of these stores is expected to close if AB 2223 passes unamended," said Marcus Quinn, CEO of Sunmed | Your CBD Store.

"Politicians say this bill attempts to regulate dangerous and misleading products, yet every Sunmed | Your CBD Store complies with rigorous regulatory guidelines. Our products meet, and more often than not exceed, the highest safety and compliance standards with stringent quality control, full panel third-party testing, child-proof packaging, and strict age requirements," Quinn added.

Enforcement against bad actors in California has been historically insufficient. Sunmed | Your CBD Store supports robust regulation and advocates for increased funding for the California Department of Public Health (CDPH) to enhance its enforcement capabilities. An increased budget for CDPH, supported by an excise tax, could address deficiencies.

To ensure the availability of safe, compliant hemp products in California and protect the livelihoods of local businesses, Sunmed | Your CBD Store urges community support to oppose AB 2223 through social media and direct engagement with local politicians.

Contact

Patrick Shatzer
Sunmed | Your CBD Store
[email protected]

About Sunmed^™ | Your CBD Store^®

Sunmed | Your CBD Store is the largest hemp retailer in the United States and the exclusive home of award-winning, hemp-derived Sunmed products. With 300+ nationwide locations across 42 states, the brand offers a premium in-store customer experience with access to 150+ nonpharmaceutical wellness formulas, including clinically proven sleep gummies, pain relief topicals, USDA-organic oil tinctures, and CBD for pets. Through in-store education, community involvement, and groundbreaking clinical research, Sunmed strives to empower modern wellness and enhance people's lives with natural science-backed products. Learn more at getsunmed.com.

SOURCE SunFlora