Danville Hemp Shop Forced To Close Due To State Law; Town May Explore Cannabis Rules

DANVILLE, CA — The Danville Town Council will conduct a study session to consider a path forward for America’s Finest Hemp Co., a local hemp business at 423 Hartz Avenue, which was forced to close due to new state cannabis regulations.

In 2025, the California State Legislature passed AB8, which requires the majority of cannabinoid products to be sold through licensed dispensaries and regulated under the Medicinal and Adult-Use Cannabis Regulation and Safety Act. That includes hemp, which can be used to make products with psychoactive effects.

When America’s Finest Hemp Company, which sells hemp, CBD, vitamins, and supplements, opened in 2021, the state allowed certain hemp-derived intoxicating products to be sold in general retail without dispensary regulations as long as those products contained 0.3% delta-9 THC on a dry weight basis.

Because cannabis dispensaries are not allowed to operate within the town of Danville, America’s Finest Hemp Company has been forced to close. The owner, Danville native Jeff Sutherland, has requested that the town consider “transitional or limited pathways—whether through zoning overlays, conditional use permits, or narrowly tailored allowances—that recognize the difference between legacy operators and new applicants,” per a letter submitted to the council.

According to a memo drafted by City Attorney Robert Ewing, the town could create a Cannabis Retail Permit System that could limit the number of permits issued, and require detailed application and compliance with a number of local ordinances. The town could also choose between dispensaries for recreational adult use, and medicinal-only dispensaries that require a doctor’s note. The town would also need to change its zoning laws to decide which districts might allow such dispensaries. Nearby towns like Martinez, Richmond, and Pittsburg have set up similar systems, according to Ewing’s memo.

“Over the past five years, we built a strong reputation, paid local taxes, employed local residents, and became part of the downtown Danville fabric. Then the rules changed,” Sutherland said in his letter.

“Due to rapid changes at the state level, we were caught in the middle of this transition and left with no direction to move forward. As a result, Danville lost a tax-paying business overnight. I lost my livelihood. Employees lost jobs. And the community lost a storefront that had no history of complaints, problems, crime, or nuisance. I am not asking for special treatment or favors but rather thoughtful governance and the consideration of a path forward.”

To learn more, read the PowerPoint presentation that Sutherland submitted to the council.

The study session will take place at 8:30 a.m. The session will also feature the certification of council election results and installation of Mayor Newell Arnerich.

The council will also convene Tuesday at 5 p.m. for a full meeting.