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AB-8 Industrial hemp.(2025-2026)

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Date Published: 12/02/2024 09:00 PM
AB8:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill
No. 8

Introduced by Assembly Member Aguiar-Curry

December 02, 2024

An act to add Section 26003 to the Business and Professions Code, and to amend Section 111923.3 of the Health and Safety Code, relating to industrial hemp.


LEGISLATIVE COUNSEL'S DIGEST


AB 8, as introduced, Aguiar-Curry. Industrial hemp.
The Sherman Food, Drug, and Cosmetic Law regulates the packaging, labeling, and advertising of food, beverages, and cosmetics and makes a violation of its provisions a misdemeanor. That law requires a hemp manufacturer who produces an industrial hemp product that is a food or beverage to register with the State Department of Public Health, as specified.
This bill would require an out-of-state hemp manufacturer who produces an industrial hemp product that is a food or beverage for sale in this state to register with the department. By creating a new crime, this bill would impose a state-mandated local program.
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), provides for the licensure and regulation of commercial cannabis activity. Existing law exempts industrial hemp, as defined, from the definition of cannabis under MAUCRSA.
This bill would state that MAUCRSA does not prohibit a licensee from manufacturing, distributing, or selling products that contain industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp, if the product complies with all applicable state laws and regulations.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares that the legal cannabis industry faces challenges from a thriving illicit cannabis marketplace.
(b) It is the intent of the Legislature to enhance the viability of cannabis licensees in the marketplace by pursuing measures to relieve tax and regulatory requirements, and to authorize licensees to manufacture, distribute, and sell hemp and cannabidiol (CBD) products in compliance with current law.

SEC. 2.

 Section 26003 is added to the Business and Professions Code, to read:

26003.
 This division does not prohibit a licensee from manufacturing, distributing, or selling products that contain industrial hemp, as defined in Section 11018.5 of the Health and Safety Code, or cannabinoids, extracts, or derivatives from industrial hemp, if the product complies with all applicable state laws and regulations, including Division 24 (commencing with Section 81000) of the Food and Agricultural Code or Chapter 9 (commencing with Section 111920) of Part 5 of Division 104 of the Health and Safety Code, as applicable.

SEC. 3.

 Section 111923.3 of the Health and Safety Code is amended to read:

111923.3.
 (a) (1) A An in-state hemp manufacturer who produces an industrial hemp product that is a food or beverage or an out-of-state hemp manufacturer who produces an industrial hemp product that is a food or beverage for sale in this state shall register with the department pursuant to Article 2 (commencing with Section 110460) of Chapter 5.
(2) Sections 110473 and 110474 shall not apply to dietary supplements and food products that include industrial hemp.
(b) Notwithstanding the voluntary nature of registration provided in Section 111795, a hemp manufacturer who produces an industrial hemp product that is a cosmetic shall register pursuant to Article 4 (commencing with Section 111795) of Chapter 7.
(c) A hemp manufacturer who produces an industrial hemp product that is a processed pet food shall obtain a license pursuant to Article 2 (commencing with Section 113060) of Chapter 10 of Part 6.
(d) (1) An in-state hemp manufacturer who produces raw hemp extract and who does not produce an industrial hemp product, or an out-of-state hemp manufacturer who produces raw hemp extract with the intent to import that raw hemp extract into this state, shall register with the department pursuant to Article 2 (commencing with Section 110460) of Chapter 5.
(2) Sections 110473 and 110474 shall not apply to hemp manufacturers who register pursuant to this subdivision.
(e) All hemp manufacturers shall notify the department immediately of any change of information in their application for a license of registration.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.