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AB-228 Food, beverage, and cosmetic adulterants: industrial hemp products.(2019-2020)



Current Version: 06/26/19 - Amended Senate

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AB228:v94#DOCUMENT

Amended  IN  Senate  June 26, 2019
Amended  IN  Senate  June 17, 2019
Amended  IN  Senate  June 03, 2019
Amended  IN  Assembly  March 21, 2019
Amended  IN  Assembly  March 13, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 228

Introduced by Assembly Member Aguiar-Curry
(Coauthor: Senator Wilk)

January 17, 2019

An act to add Section 26003 to the Business and Professions Code, and to add Sections 109950.5, 110382, 110407, 110469, 110611, and 111691 to, and to add Chapter 9 (commencing with Section 111920) to Part 5 of Division 104 of, the Health and Safety Code, relating to industrial hemp, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 228, as amended, Aguiar-Curry. Food, beverage, and cosmetic adulterants: industrial hemp products.
Existing state law, the Sherman Food, Drug, and Cosmetic Law, prohibits the manufacture, sale, delivery, holding, or offer for sale of adulterated foods, beverages, or cosmetics. Existing law prescribes when a food or beverage is adulterated, including if it bears or contains any poisonous or deleterious substance that may render it injurious to the health of a person or other animal that may consume it. Existing law prescribes when a cosmetic is adulterated, including when it bears or contains a poisonous or deleterious substance that may render it injurious to users under the conditions of use prescribed in the labeling or advertisement of the cosmetic, under customary or usual conditions.
The Sherman Food, Drug, and Cosmetic Law, among other things, regulates the labeling of food, beverages, and cosmetics and makes it a crime to distribute in commerce any food, drug, device, or cosmetic if its packaging or labeling does not conform to these provisions. Existing law also makes it unlawful for a person to disseminate any false advertisement of any food, drug, device, or cosmetic.
Existing law makes a violation of the Sherman Food, Drug, and Cosmetic Law a misdemeanor.
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), provides for the licensing and regulation of commercial cannabis activity, including cultivation, manufacturing, distribution, and retail sale.
Existing law requires a grower of industrial hemp that is to be used for commercial purposes to register with the commissioner of the county in which the grower intends to engage in industrial hemp cultivation.
This bill would require a manufacturer of food that includes industrial hemp to be able to demonstrate that all parts of the plant used in their food come from a state or country that has an established and approved industrial hemp program program, as defined, that inspects or regulates hemp under a food safety program or equivalent criteria to ensure safety for human consumption and the industrial hemp cultivator or grower to be in good standing and compliance with the governing laws of the state or country of origin.
This bill would state that a food, beverage, or cosmetic is not adulterated by the inclusion of industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp, and would prohibit restrictions on the sale of food, beverages, or cosmetics that include industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp based solely on the inclusion of industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp.
This bill would require the label of any package of a food, beverage, or cosmetic product containing cannabidiol derived from industrial hemp to include a specified statement. The bill would also prohibit a manufacturer, distributor, or seller of an industrial hemp product from including on the label, or publishing or disseminating in advertising or marketing, a health-related statement, as defined, that is untrue in any particular manner or that tends to create a misleading impression as to the effects on health of consuming products containing industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp. By creating a new crime, this bill would impose a state-mandated local program.
This bill would prohibit a raw hemp product, as defined, from being distributed or sold in this state without a certificate of analysis from an independent testing laboratory, as defined, that confirms specified information, including that the tested batch of industrial hemp does not contain contaminants that are unsafe for human consumption. By creating a new crime, this bill would impose a state-mandated local program.
This bill would state that an entity that is licensed to engage in commercial cannabis activity pursuant to MAUCRSA is not prohibited from manufacturing, distributing, or selling products that contain industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp grown in compliance with the registration requirements for growers.
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.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

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

26003.
 This division does not prohibit an entity licensed pursuant to its provisions 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 grown in compliance with Division 24 (commencing with Section 81000) of the Food and Agricultural Code.

SEC. 2.

 Section 109950.5 is added to the Health and Safety Code, to read:

109950.5.
 (a) “Industrial hemp” has the same meaning as in Section 11018.5.
(b) (1) “Industrial hemp product” means a finished product containing industrial hemp that meets all of the following conditions:
(A) Is a cosmetic, food, food additive, dietary supplement, or herb.
(B) Is for human or animal consumption.
(C) Contains any part of the hemp plant, including naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins, or derivatives.
(D) Contains no more than 0.3 percent tetrahydrocannabinol.
(2) “Industrial hemp product” does not include industrial hemp or a hemp product that is a drug that has been approved as a drug by the United States Food and Drug Administration.

SEC. 3.

 Section 110382 is added to the Health and Safety Code, to read:

110382.
 The label of any package of a food, beverage, or cosmetic containing cannabidiol derived from industrial hemp shall include the following statement:

“CANNABIDIOL USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. KEEP OUT OF REACH OF CHILDREN.”

SEC. 4.

 Section 110407 is added to the Health and Safety Code, to read:

110407.
 (a) A manufacturer, distributor, or seller of an industrial hemp product shall not include on the label of the product, or publish or disseminate in advertising or marketing, any health-related statement that is untrue in any particular manner or that tends to create a misleading impression as to the health effects of consuming products containing industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp.
(b) For purposes of this section, “health-related statement” means a statement related to health, and includes a statement of a curative or therapeutic nature that, expressly or impliedly, suggests a relationship between the consumption of industrial hemp or industrial hemp products and health benefits or effects on health.

SEC. 5.

 Section 110469 is added to the Health and Safety Code, to read:

110469.
 (a) A wholesale food manufacturing facility that manufactures products that contain industrial hemp shall be registered in accordance with Section 110460.
(b) In order for industrial hemp to be used in food products, the manufacturer shall be able to demonstrate both of the following:
(1) All parts of the hemp plant used in food shall come from a state or country that has an established and approved industrial hemp program that inspects or regulates hemp under a food safety program or equivalent criteria to ensure safety for human consumption.
(2) The industrial hemp cultivator or grower shall be in good standing and in compliance with the governing laws of the state or country of origin.
(c) (1) For purposes of this section, “manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a product.
(2) “Manufacture” does not include planting, growing, harvesting, drying, curing, grading, or trimming a plant or part of a plant.
(d) For purposes of this section, “established and approved industrial hemp program” means a program that meets all federal requirements regarding the lawful and safe cultivation of industrial hemp.

SEC. 6.

 Section 110611 is added to the Health and Safety Code, to read:

110611.
 Except as provided in Section 25621.5 of the Business and Professions Code, a food or beverage is not adulterated by the inclusion of industrial hemp, as defined in Section 11018.5, or cannabinoids, extracts, or derivatives from industrial hemp. The sale of food or beverages that include industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp shall not be restricted or prohibited based solely on the inclusion of industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp.

SEC. 7.

 Section 111691 is added to the Health and Safety Code, to read:

111691.
 A cosmetic is not adulterated because it includes industrial hemp, as defined in Section 11018.5, or cannabinoids, extracts, or derivatives from industrial hemp. The sale of cosmetics that include industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp shall not be restricted or prohibited based solely on the inclusion of industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp.

SEC. 8.

 Chapter 9 (commencing with Section 111920) is added to Part 5 of Division 104 of the Health and Safety Code, to read:
CHAPTER  9. Industrial Hemp Products

111920.
 For purposes of this chapter, the following definitions apply:
(a) “Independent testing laboratory” means a laboratory that meets all of the following requirements:
(1) Does not have a direct or indirect interest in the entity for which testing is being done.
(2) Does not have a direct or indirect interest in a facility that cultivates, processes, distributes, dispenses, or sells raw hemp products in this state or in another jurisdiction.
(3) Does not have a license issued pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code, other than as a licensed testing laboratory.
(4) Is either of the following:
(A) A testing laboratory licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(B) Accredited by a third-party accrediting body as a competent testing laboratory pursuant to ISO/IEC 17025 of the International Organization for Standardization.
(b) “Raw hemp product” means a product that is derived from industrial hemp that is intended to either be used by a consumer or included in a food, beverage, or cosmetic.

111920.1.
 A raw hemp product shall not be distributed or sold in this state without a certificate of analysis from an independent testing laboratory that confirms all of the following:
(a) The raw hemp product is the product of a batch of industrial hemp that was tested by the independent testing laboratory.
(b) A tested random sample of the batch of industrial hemp contained a total delta-9-tetrahydrocannabinol concentration that did not exceed 0.3 percent on a dry-weight basis.
(c) The tested sample of the batch did not contain contaminants that are unsafe for human consumption.

SEC. 9.

 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.

SEC. 10.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to protect a rapidly expanding industry relating to derivatives from industrial hemp in California and to reduce inconsistency in implementation of state and federal law, it is necessary that this bill take effect immediately.