Bill Text: CA AB420 | 2023-2024 | Regular Session | Amended
Bill Title: Cannabis: industrial hemp.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2023-09-01 - In committee: Held under submission. [AB420 Detail]
Download: California-2023-AB420-Amended.html
|
Amended
IN
Senate
June 19, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 420
| Introduced by Assembly Member Aguiar-Curry |
February 02, 2023 |
An act to add Section 26003 to the Business and Professions Code, and amend Sections 111920, 111921, and 111923.3 of, and to repeal Section 11923.9 of, the Health and Safety Code, relating to cannabis.
LEGISLATIVE COUNSEL'S DIGEST
AB 420, as amended, Aguiar-Curry.
Cannabis: industrial hemp.
The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities and requires the Department of Cannabis Control to administer its provisions.
Existing law governs the cultivation of industrial hemp in this state and establishes a registration program administered by county agricultural commissioners and the Department of Food and Agriculture for growers of industrial hemp, hemp
breeders, and established agricultural research institutions, as defined.
Existing
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. Violation of the Sherman Food, Drug, and Cosmetic Law is a misdemeanor. Existing law also requires hemp manufacturers who produce specified products that include industrial hemp or who produce raw hemp extract, as defined, to complete a registration process, under the State
Department of Public Health, and to meet various requirements for testing and labeling on products.
Existing law exempts industrial hemp, as defined, from the definition of cannabis and from MAUCRSA, but requires the Department of Cannabis Control to prepare a report, on or before July 1, 2022, to the Governor and the Legislature outlining the steps necessary to allow for the incorporation of hemp cannabinoids into the cannabis supply chain.
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 bill would revise and recast the provisions with the Sherman Food, Drug, and Cosmetic Law, regulating industrial hemp to
redefine certain terms, expand the prohibition that raw hemp extract not exceed 0.3% of a tetrahydrocannabinol comparable cannabinoid, and prohibit the manufacture, distribution, or sale of an industrial hemp product that contains a cannabinoid that is not present in nature in commercially meaningful quantities, unless authorized by the department in regulation. The 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.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
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 111920 of the Health and Safety Code is amended to read:111920.
For purposes of this chapter, the following definitions apply:(a) “Department” means the State Department of Public Health.
(b) “Established and approved industrial hemp program” means a program that meets any applicable requirements set forth in federal law regarding the lawful and safe cultivation of industrial hemp.
(c) “Final form product” is a product intended for consumer use to be sold at a retail premise.
(d) “Hemp manufacturer” means either of the following:
(1) A processor extracting cannabinoids from hemp
biomass.
(2) A processor purchasing industrial hemp raw extract for the purpose of manufacturing a final form product.
(e) “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, if the licensed testing lab has notified the Department of Cannabis Control.
(B) Accredited by a third-party accrediting body as a competent testing laboratory pursuant to ISO/IEC 17025 of the International Organization for Standardization.
(f) (1) “Industrial hemp” has the same meaning as in Section 11018.5. “Industrial hemp” does not include cannabinoids produced through chemical synthesis.
(2) “Cannabinoids produced through chemical synthesis” or “chemically synthesized cannabinoid” means a substance that is created by a chemical reaction that changes the molecular structure of any substance derived from the plant Cannabis sativa L. A chemically synthesized cannabinoid does not include any of the following:
(A) A naturally occurring chemical substance that is separated from the plant by a chemical or mechanical extraction process.
(B) Cannabinoids that are produced by decarboxylation from a naturally occurring cannabinoid acid.
(C) Any other chemical substance approved by the department in regulation.
(g) (1) “Industrial hemp
product” or “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) (i) Is for human or animal consumption.
(ii) “Animal” does not include livestock or a food animal as defined in Section 4825.1 of the Business and Professions Code.
(iii) Does not include THC isolate as an ingredient.
(C) Contains any part of the plant Cannabis sativa L., including naturally occurring cannabinoids or extracts.
(2) “Industrial hemp product” does not include industrial hemp or a hemp product that has been approved by the United States Food and Drug Administration or a hemp product that includes industrial hemp or hemp that has received Generally Recognized As Safe (GRAS) designation. For purposes of nonfood applications, “industrial hemp product” does not include a hemp product that contains derivatives, substances, or compounds derived from the seed of industrial hemp.
(h) (1) “Manufacture” or “manufacturing” means to compound, blend, extract, infuse, or otherwise make or prepare an industrial hemp product.
(2) “Manufacturing” includes all aspects of the extraction process, infusion process, and packaging and labeling processes, including processing, preparing, holding, and storing of industrial hemp
products.
(3) “Manufacturing” also includes processing, preparing, holding, or storing hemp components and ingredients.
(4) “Manufacturing” does not include planting, growing, harvesting, drying, curing, grading, or trimming a plant or part of a plant.
(i) “Raw extract” or “industrial hemp raw extract” means extract not intended for consumer use and that contains a THC concentration of not more than an amount determined by the department in regulation.
(j) “Raw hemp product” means a product that is derived from industrial hemp that is intended to be included in a food, beverage, dietary supplement, or cosmetic.
(k) “Retail” has the same meaning as in Section 113895.
(l) “THC” or “THC or comparable cannabinoid” means any of the following:
(1) Tetrahydrocannabinolic acid.
(2) Any tetrahydrocannabinol, including, but not limited to, Delta-8-tetrahydrocannabinol, Delta-9-tetrahydrocannabinol, and Delta-10-tetrahydrocannabinol, however derived, except that the department may exclude one or more isomers of tetrahydrocannabinol from this definition under subdivision (a) of Section 111921.7.
(3) Any other cannabinoid, except cannabidiol, that the department determines, under subdivision (b) of Section 111921.7, to cause intoxication.
(m) “THCA” means tetrahydrocannabinolic acid, CAS number 23978-85-0.
(n) “Total THC” means the sum of THC and THCA. all THC or comparable cannabinoids, as defined. Total THC shall be calculated using the following equation: total THC concentration (mg/g) +/- the measurement of uncertainty, as defined by the United States Department of Agriculture.
SEC. 4.
Section 111921 of the Health and Safety Code is amended to read:111921.
(a) An industrial hemp product shall not be(1) The industrial hemp raw extract, in its final form, does not exceed THC concentration of an or comparable cannabinoid concentration of 0.3 percent, or a lower amount determined allowable by the department in regulation, or the mass of the industrial hemp extract used in the final form product does not exceed a THC concentration of 0.3 percent.
and is in conformity with other limits for final form products.
(2) The industrial hemp product was tested for any hemp derivatives identified on the product label or in associated advertising in accordance with Section 111926.2.
(b)
(3) The industrial hemp product was produced from industrial hemp grown in compliance with Division 24 (commencing with Section 81000) of the Food and Agricultural Code if sourced from within California, or licensed in accordance with United States Department of Agriculture (USDA) requirements if sourced from outside the state.
(b) A person shall not manufacture, distribute, or sell an industrial hemp product that contains a cannabinoid that is not present in nature in commercially meaningful quantities in the plant of Cannabis sativa L., unless explicitly approved by the department in regulation.
SEC. 5.
Section 111923.3 of the Health and Safety Code is amended to read:111923.3.
(a) (1) A hemp manufacturer located in this state 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. 6.
Section 111923.9 of the Health and Safety Code is repealed.A hemp manufacturer or retailer who is operating in conformance with this part and in good faith compliance with their responsibilities under this chapter may manufacture or sell industrial hemp products or raw hemp extract without authorization for three months after the effective date of the act that added this chapter.
