CaCOA Advocates for AB 8 to Combat "Hemp Hoax" and Protect Legal Cannabis Market

The California Cannabis Operators Association (CaCOA) made a strong case for AB 8 (Aguiar-Curry) during the Assembly Revenue & Taxation Committee hearing on April 28, 2025, highlighting the urgent need to regulate intoxicating hemp products and stabilize California's struggling legal cannabis market.

Amy O'Gorman Jenkins, representing CaCOA, presented compelling testimony outlining how unregulated products masquerading as “hemp” are undermining public health, consumer safety, and California's regulated cannabis industry.

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"AB 8 draws a clear line: if a product is intoxicating, it belongs under the regulatory authority of the Department of Cannabis Control," Jenkins testified, emphasizing the bill's straightforward approach to closing regulatory loopholes.

Jenkins cited findings from "The Great Hemp Hoax" report released earlier this year, which revealed alarming statistics about hemp-derived THC products illegally sold throughout California:

• 89% exceeded legal THC limits

• 66% were marketed to children

• 52% had no testing or potency verification

• 35% were manufactured out-of-state or internationally

• None were properly taxed under California's cannabis laws

Jenkins addressed how AB 8 would strengthen California's cannabis tax structure "in three critical ways":

1. "It closes the loophole allowing intoxicating hemp products to evade taxation entirely."

2. "It subjects these products to the cannabis excise tax, preserving tax revenue."

3. "It responsibly reduces the excise tax rate to 15% beginning January 1, 2028, ensuring that legal cannabis products remain price-competitive over the long term."

The testimony highlighted market data showing California's declining cannabis market share compared to states with better tax structures, like Michigan. Jenkins noted that "California's excise taxes and licensing fees are 124% and 162% higher, respectively, than Michigan's" and that "in California, taxes and fees equal roughly 77.5% of wholesale value — compared to 8.4% for alcohol and 29.5% for tobacco."

Jenkins also addressed concerns about the bill's enforceability, emphasizing that "AB 8 requires that hemp be tested at the point it enters the cannabis supply chain" and that "95% of hemp-derived THC products on the market today are synthetic and not produced from naturally occurring sources."

Regarding protection for small cannabis growers, Jenkins noted, "AB 8 protects small cannabis cultivators by explicitly banning the use of hemp flower or hemp-derived cannabinoids in inhalable products."

In her closing remarks, Jenkins summed up the situation's urgency: "Without AB 8's reforms, we risk continuing to lose market share, jobs, and critical tax revenue that supports equity businesses, local governments, and public health programs."

CaCOA continues to advocate for sensible cannabis policy that protects both consumers and legitimate businesses while maintaining California's leadership position in the regulated cannabis industry.