California Legalizes the Sale and Manufacture of CBD-Infused Products

On October 6, 2021, California Governor Gavin Newsom (D) signed a bill that legalizes the sale and manufacture of hemp-derived products and CBD-infused consumable items. Assembly Bill 45 (“AB 45”) establishes a regulatory and consumer protection framework for selling and producing CBD-infused products, such as food, beverages, cosmetics, dietary supplements, over-the-counter items, pet products, and more. California’s expansion on allowed sales of cannabidiol (“CBD”) products could potentially make California one of the largest cannabis markets in the world. Read below to learn more about the implications of California’s AB 45 and the history of concern over consumables infused with CBD. 

Assembly Bill 45: The Basics

AB 45 details the requirements that manufacturers of CBD-infused products must follow to comply with California laws. The bill requires manufacturers of dietary supplements containing hemp to register with the State Department of Public Health to verify that all used plant parts come from a state with an approved hemp program. These measures aim to ensure public safety and that the industrial hemp used in consumable products complies with state regulations. Additionally, the bill informs manufacturers about taxation and explicitly prohibits the inclusion of intoxicating cannabinoids in consumer products. The bill states the following:

This bill would create a registration process, under the State Department of Public Health, for hemp manufacturers who produce specified products that include industrial hemp or who produce raw hemp extract, as defined, including requirements for testing and labeling on products. The bill would define “THC” for these purposes and would authorize the department to include or exclude comparable compounds from the definition of THC for purposes of regulation as industrial hemp based on the compound’s intoxicating effect, or lack thereof. The bill would authorize the department to collect specified fees, which would be used, upon appropriation, to implement the program. By creating a new crime, this bill would impose a state-mandated local program.

As the first state to legalize medical marijuana as early as 1996, California has a progressive reputation with regard to marijuana. In 2016, California legalized cannabis for recreational use. 

The Concern Over CBD-Infused Products

Governor Gavin Newsom’s approval of AB 45 comes after a long history of concerns over the content of CBD-infused products. The lack of regulation over CBD and other cannabis-derived products is generally a cause for concern. Representatives from states like Texas have pushed for the regulation of hemp-derived products to create strict market standards and increase funding surrounding hemp research. 

The U.S. Food and Drug Administration (“FDA”) and the Center for Disease Control (“CDC”) have deepened the concern over CBD products. In August of 2021, The FDA rejected CBD as a dietary supplement due to a lack of information on the nutritional content and side effects of the cannabinoid. Almost a month later, the FDA and CDC warranted federal warnings about Delta-8-THC with statements advising consumers against the consumption of delta-8 THC and the growing concerns of marketing similarities between CBD and delta-8 THC-infused products. Many activists claim that the regulation of CBD-infused goods could help avoid manufacturing and marketing confusion. 

As marijuana laws change across the nation, the attorneys at Ritter Spencer Cheng PLLC keep up-to-date with what is sweeping the marijuana community. Chelsie Spencer is a cannabis lawyer located in Dallas, Texas. With vast knowledge about cannabis, CBD, and hemp laws, she is a trusted advisor to many businesses in the marijuana community. Chelsie offers her clients years of experience and expert insights in various other legal fields, including commercial litigation, trademark law, and copyright law. Contact Ritter Spencer Cheng or give us a call at 214.295.5070 for more information.