Business
California's ban on certain hemp products clears early legal challenge
California’s emergency ban on certain hemp products cleared a legal challenge Friday brought by cannabis businesses that sought to block the new rules.
Los Angeles County Superior Court Judge Stephen Goorvitch denied the businesses’ request that he issue an order which would have temporarily allowed hemp sales while a lawsuit over the ban proceeded. The new regulations took effect in September.
In a ruling filed Friday, the judge called the temporary restraining order sought by the businesses a “drastic remedy” because it would have meant hurriedly blocking the implementation of the emergency regulations before a trial when the state and businesses would be able to fully present their cases.
“The potential harm to Californians, especially children, outweighs the potential that individual hemp businesses will not be able to adapt to the new regulations,” Goorvitch said in the ruling.
The decision is a blow to cannabis companies that filed a lawsuit challenging the new rules over concerns that hemp businesses will lose millions of dollars and some small businesses will be forced to shut down.
Jonathan Miller, general counsel of the U.S. Hemp Roundtable, said in a statement that the group is “disappointed with the court’s decision” and is reviewing its next steps in what could be a long legal process.
“We still hold out hope that Governor [Gavin] Newsom will come to the table and work with industry to achieve our mutual goal — to robustly regulate hemp products and keep them out of the hands of children — without devastating hemp farmers, business and consumers as does his emergency regulation,” Miller said.
The ruling keeps in place emergency regulations the state issued as part of an effort to protect young people from potentially dangerous hemp products. The U.S. Hemp Roundtable and hemp businesses such as JuiceTiva, Blaze Life and a cannabis company run by comedy duo Cheech Marin and Tommy Chong sued a California public health agency to block the enforcement of the new rules.
The regulations ban the sale of hemp-based food, beverages and dietary products containing detectable amounts of THC, a compound found in the cannabis plant that contributes to the mind-altering high associated with cannabis use, along with other intoxicating chemical substances. The new rules also state that people must be at least 21 years old to purchase hemp products and limit the number of servings of hemp products to five per package.
In denying the preliminary injunction, Goorvitch said the hemp coalition had failed to meet its burden of demonstrating it was likely to prevail at trial and that it stood to suffer irreparable harm if the ban on sales wasn’t blocked. Businesses can still sell hemp products without detectable levels of THC and “non-final food products” such as hemp flour and lotions with detectable levels of THC, the ruling said.
Jim Higdon, co-founder of Cornbread Hemp and a U.S. Hemp Roundtable member, said he thinks the judge doesn’t fully understand the industry and made the “wrong decision.”
“There’s a whole class of hemp businesses this ruling will destroy,” he said.
Higdon said his Kentucky business, which sells products such as hemp gummies and oil, has California retailers it wants to work with but it hasn’t been able to get its product on the retailers’ shelves because of the “regulatory uncertainty” in the state.
The California Department of Public Health proposed the ban because of concerns that hemp products with THC could harm young people whose brains are still developing. Consuming some of these products could “negatively impact cognitive functions, memory, and decision-making abilities,” the agency said in its findings. The agency didn’t immediately respond to a request for comment but typically doesn’t comment on pending litigation.
“We applaud the court for refusing to block California’s hemp regulations to protect consumers, especially children,” Tara Gallegos, a spokesperson for Newsom, said in a statement. “The court didn’t buy this attempt to reopen a loophole used by bad actors in the hemp industry to push dangerous intoxicating products into gas stations and corner markets.”
Some people consume hemp products with THC for relief from pain, anxiety, insomnia and other issues. People who rely on products for medical needs will still be able to obtain them through licensed adult-use and medical cannabis dispensaries, according to the state.
In the lawsuit, filed in Los Angeles County Superior Court, hemp businesses called the new rules “draconian” and compared them to “requiring candy to stop containing sugar.” The businesses allege in the lawsuit the agency violated state and federal laws, including those that legalized the production of hemp and govern the rulemaking process.
A trial setting conference is scheduled in late November.
Business
U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders
The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.
The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.
Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.
The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.
The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.
Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.
“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.
The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.
Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.
Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.
Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.
Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.
Business
California-based company recalls thousands of cases of salad dressing over ‘foreign objects’
A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”
The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.
Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.
None of the 42 locations where the product was sold were in California.
Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.
“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”
The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.
The company recalled the following types of salad dressing:
- Creamy Poblano Avocado Ranch Dressing and Dip
- Ventura Caesar Dressing
- Pepper Mill Regal Caesar Dressing
- Pepper Mill Creamy Caesar Dressing
- Caesar Dressing served at Costco Service Deli
- Caesar Dressing served at Costco Food Court
- Hidden Valley, Buttermilk Ranch
Business
They graduated from Stanford. Due to AI, they can’t find a job
A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.
The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.
When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.
Top tech companies just don’t need as many fresh graduates.
“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”
While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.
Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.
“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”
The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.
Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.
“The industry for programmers is getting very oversaturated,” Akgul said.
The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.
Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.
It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.
In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.
Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.
Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.
A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.
“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”
To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.
Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.
Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.
Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.
As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.
“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”
After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.
Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.
“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”
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