CBD Legislation Bill Signed in California
High five for the CBD industry. On October 6th,2021 — California Gov. Gavin Newsom (D), signed a bill that significantly expands the state’s hemp industry by legalizing retail sales of a wide range of consumable hemp-derived products.
Before this latest bill, the lack of explicit regulations has inhibited the hemp market. The signing of bill AB45 implies that non-intoxicating cannabinoids, including CBD, can be sold as dietary supplements and as ingredients in food and beverages.
AB45 now lays the groundwork for the sale of smokable hemp in California, however lawmakers must first pass a measure to establish a tax scheme during next year’s session for those products before they can be marketed. However, hemp producers can immediately begin growing and manufacturing smokable products to be sold in other states.
What Does AB45 State?
AB45 establishes a regulatory framework for industrial hemp under the Sherman Food, Drug, &
Cosmetic Law (Sherman Law). The bill contains an urgency clause to ensure provisions of the AB45 bill go into immediate effect upon enactment.
Highlights of Senate Amendments:
- Non-intoxicating hemp-derived extracts such as CBD are explicitly permitted for sale as dietary supplements and food and beverage ingredients.
- Require the Department of Cannabis Control, on or before July 1, 2022, to prepare a report to the Governor and Legislature outlining the steps necessary to allow for the incorporation of hemp cannabinoids into the cannabis supply chain, including a report on the incorporation of hemp cannabinoids into manufactured cannabis products and the sale of hemp products at cannabis retailers.
- Revises the definition of Tetrahydrocannabinol (THC) or comparable cannabinoid and make technical and clarifying changes. Allow the Department of Public Health (DPH) to include or exclude from the definition of THC or comparable cannabinoid one or more isomers of tetrahydrocannabinol if it determines that the isomers either cause intoxication or not.
- Prohibits the manufacturing or sale of inhalable products. Make this prohibition inoperative and is repealed on the effective date of a measure passed by the Legislature that establishes a tax on inhalable products, as specified.
- Delete the provisions establishing the Industrial Hemp Research Program (Program) and Fund, corresponding provisions, and the $250 fee associated with the Program.
- Prohibits the sale of inhalable products to consumers under 21 years of age. Prohibit an inhalable product from containing specified substances, including flavorings other than natural terpenes. Allow DPH to enter a memorandum of understanding or other interagency agreement with another state agency to administer the provisions relating to inhalable products.
New California Legislation
The now-signed legislation contains requirements for the testing and labeling of hemp products. It sets rules for selling items with hemp-derived cannabinoids in California produced in other states.
The California Department of Public Health will create brand-new rules to implement the legislation, which also allows cannabinoid-infused cosmetics and pet foods to be sold.