The California Assembly Business and Professions Committee meeting on July 1, 2025, spotlighted significant concerns regarding the regulation of the hemp and cannabis industries. Stakeholders voiced strong support for a bill aimed at curbing bad actors in the hemp market, but raised alarms about its potential to harm compliant businesses.

A representative from the Hemp Roundtable emphasized the industry's commitment to eliminating illicit products, stating, "The hemp industry does not want bad actors out there any more than the cannabis industry." However, they expressed frustration that recent legislative actions have unfairly grouped compliant businesses with those violating regulations, threatening the viability of the hemp CBD market in California.

The discussion also highlighted the broad scope of Senate Bill 378, which seeks to regulate online cannabis and hemp marketplaces. Critics, including representatives from TechNet and eBay, argued that the bill's expansive definitions could impose strict liabilities on platforms that merely facilitate user interactions, even if they prohibit the sale of cannabis products. "This bill creates a large umbrella of liability over companies and businesses that would greatly impact businesses with an online presence throughout the state," warned a TechNet representative.

Assembly members acknowledged the need for stricter enforcement against illegal sales but expressed concerns about the bill's implementation. Assemblymember Erwin noted, "I am also worried about implementation and agree with the comments that were pointed out in the analysis about online marketplaces."

As the committee deliberates, the future of the hemp and cannabis industries in California hangs in the balance, with calls for a more nuanced approach that distinguishes between compliant and non-compliant businesses. The outcome of these discussions could reshape the regulatory landscape for hemp and cannabis in the state, impacting both consumers and businesses alike.