Bill Text: CA AB45 | 2021-2022 | Regular Session | Amended
Bill Title: Industrial hemp products.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-10-06 - Chaptered by Secretary of State - Chapter 576, Statutes of 2021. [AB45 Detail]
Download: California-2021-AB45-Amended.html
Amended
IN
Senate
September 02, 2021 |
Amended
IN
Senate
June 28, 2021 |
Amended
IN
Assembly
May 27, 2021 |
Amended
IN
Assembly
May 24, 2021 |
Amended
IN
Assembly
May 03, 2021 |
Amended
IN
Assembly
April 14, 2021 |
Introduced by Assembly Member Aguiar-Curry (Principal coauthor: Senator Allen) |
December 07, 2020 |
LEGISLATIVE COUNSEL'S DIGEST
The bill would also impose a $250 fee on each manufacturer who produces industrial hemp products or raw hemp extract, to be used, upon appropriation, to fund an Industrial
Hemp Research Program at the University of California.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 26013.2 is added to the Business and Professions Code, to read:26013.2.
(a) On or before July 1, 2022, the department shall prepare a report to the Governor and the Legislature outlining the steps necessary to allow for the incorporation of hemp cannabinoids into the cannabis supply chain. The report shall include, but not be limited to, the incorporation of hemp cannabinoids into manufactured cannabis products and the sale of hemp products at cannabis retailers.SECTION 1.SEC. 2.
Section 11018.5 of the Health and Safety Code is amended to read:11018.5.
(a) “Industrial hemp” or “hemp” means an agricultural product, whether growing or not, that is limited to types of the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, the resin extracted from any part of the plant, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis.SEC. 2.SEC. 3.
Section 100425 of the Health and Safety Code is amended to read:100425.
(a) The fees or charges for the issuance or renewal of any permit, license, registration, or document pursuant to Sections 1639.5, 1676, 1677, 2805, 11839.25, 103625, 106700, 106890, 106925, 107080, 107090, 107095, 107160, 110210, 110470, 110471, 111130, 111140, 111630, 111923.5, 111923.6, 112405, 112510, 112750, 112755, 113060, 113065, 114065, 115035, 115065, 115080, 117923, 117995, 118045, 118210, and 118245 shall be adjusted annually by the percentage change printed in the Budget Act for those items appropriating funds to the state department. After the first annual adjustment of fees or charges pursuant to this section, the fees or charges subject to subsequent adjustment shall be the fees or charges for the prior calendar year. The percentage change shall be determined by the Department of Finance, and shall include at least the total percentage change in salaries and operating expenses of the state department. However, the total increase in amounts collected under this section shall not exceed the total increased cost of the program or service provided.SEC. 3.SEC. 4.
Section 110036 is added to the Health and Safety Code, to read:110036.
All laws and regulations pertaining to industrial hemp products shall remain in effect until the adoption of regulations pursuant to the federal law that authorizes industrial hemp products. At that time, the department shall adopt new regulations either as necessary pursuant to the federal law or deemed necessary to protect consumers.SEC. 4.SEC. 5.
Section 110065 of the Health and Safety Code is amended to read:110065.
(a) The department may adopt any regulations that it determines are necessary for the enforcement of this part. The regulations shall be adopted by the department in the manner prescribed by Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The department shall, insofar as practicable, make these regulations conform with those adopted under the federal act or by the United States Department of Agriculture or by the Internal Revenue Service of the United States Treasury Department.SEC. 5.SEC. 6.
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 as to the health effects of consuming products containing industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp in violation of this part.SEC. 6.SEC. 7.
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 and shall comply with good manufacturing practices as defined in Section 110105 and as determined by the department in regulation.SEC. 7.SEC. 8.
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 dietary supplement, food, or beverage is not adulterated by the inclusion of industrial hemp, as defined in Section 11018.5, as long as the cannabinoids, extracts, or derivatives from industrial hemp meet the requirements established in Chapter 9 (commencing with Section 111920). The sale of a dietary supplement, food, or beverage that includes industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp shall not be restricted or prohibited based solely on the inclusion of industrial hemp provided that the cannabinoids, extracts, or derivatives from industrial hemp meet the requirements of Chapter 9 (commencing with Section 111920).SEC. 8.SEC. 9.
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, as long as the cannabinoids, extracts, or derivatives from industrial hemp meet the requirements established in Chapter 9 (commencing with Section 111920). The sale of a cosmetic that includes industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp shall not be restricted or prohibited based solely on the inclusion of industrial hemp provided that the cannabinoids, extracts, or derivatives from industrial hemp meet the requirements established in Chapter 9 (commencing with Section 111920).SEC. 9.SEC. 10.
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
Article 1. Definitions
111920.
For purposes of this chapter, the following definitions apply:(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
Article 2. General Provisions
111921.
An industrial hemp product shall not be distributed or sold in the state except in conformity with all applicable state laws and regulations, including this chapter and any regulations promulgated thereunder, and with documentation that includes both of the following:111921.3.
The department may adopt regulations imposing an age requirement for the sale of certain industrial hemp products upon a finding of a threat to public health.111921.5.
(a) Unless explicitly approved by the federal Food and Drug Administration, industrial hemp shall not be included in products in any of the following categories:(3)Processed smokable products regulated by California law, including, but not limited to, electronic cigarettes with nicotine.
(4)Smokable flower, including, but not limited to, hookah and shisha with nicotine.
(5)
(6)
111921.6.
(a) Manufacture or sale of inhalable products is prohibited. Manufacture of inhalable products for the sole purpose of sale in other states is not prohibited.111921.7.
(a) The department may exclude from the definition of “THC or Comparable Cannabinoid” one or more isomers of tetrahydrocannabinol if the department determines, consistent with subdivisions (c) and (d), that the tetrahydrocannabinol isomer does not cause intoxication.Article 3. Manufacture
111922.
(a) The department, through regulation, may determine maximum serving sizes for hemp-derived cannabinoids, hemp extract, and products derived therefrom, active cannabinoid concentration per serving size, the number of servings per container, and any other requirements for foods and beverages.111922.3.
(a) A hemp manufacturer who produces raw extract that will only be used for dietary supplements, foods, beverages, and cosmetics, or a hemp manufacturer who produces industrial hemp products shall comply with this chapter and, to the extent applicable, this part.Article 4. Registration and Fees
111923.
(b)The Industrial Hemp Research Fund is hereby established in the State Treasury. All money received by the department pursuant to Section 111923.6 shall be deposited into this fund and expended by the Regents of the University of California, upon appropriation by the Legislature,
to carry out and implement Section 111929. Moneys in this fund shall not be redirected for any other purpose.
111923.3.
(a) (1) A hemp manufacturer who produces an industrial hemp product that is a food or beverage shall register with the department pursuant to Article 2 (commencing with Section 110460) of Chapter 5.111923.5.
(a) In addition to licensing and registration requirements and fees required pursuant to other applicable laws, as specified in Section 111923.3, a hemp manufacturer shall obtain an industrial hemp enrollment and oversight authorization from the department. Authorization shall be renewed annually.(a)In addition to the fee required pursuant to Section 111923.5, a hemp manufacturer shall pay an annual fee of two hundred fifty dollars ($250) to support research on the health effects of hemp-derived cannabinoids.
(b)This fee shall not be prorated and the date of renewal shall align with the renewal of the authorization pursuant to Section 111923.5.
(c)The fee imposed by this section shall be adjusted pursuant to Section 100425.
111923.7.
A hemp manufacturer located outside the state shall reimburse the department for travel and per diem required to perform necessary onsite inspections at the facility to ensure compliance with this chapter and related activities pursuant to this part.111923.9.
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.Article 5. Recordkeeping
111924.
The department may adopt regulations for recordkeeping standards that shall apply to transporters, manufacturers, and retailers of industrial hemp product and raw extract.Article 6. Testing Requirements
111925.
(a) A hemp manufacturer shall meet all of the following testing requirements:111925.2.
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:111925.4.
(a) As of the effective date of the act adding this chapter, testing requirements for contaminant levels shall be the same as those for cannabis, as established in paragraph (2) of subdivision (d) of Section 26100 of the Business and Professions Code and regulations adopted pursuant thereto.111925.6.
(a) A product batch may be reprocessed or remediated after failed testing, but the batch shall not be distributed or sold unless the reprocessed or remediated batch has been retested and successfully passed all the analyses required pursuant to this article.Article 7. Labeling and Advertisement
111926.
(a) A manufacturer, distributor, or seller of an industrial hemp product shall follow packaging, labeling, and advertising laws, including, but not limited to, Chapter 4 (commencing with Section 110290), and federal laws incorporated or applicable in this state, including, but not limited to, Sections 110100, 110340, 110371, 110380, 110382, and 110407 and shall not violate this part.111926.2.
(a) An industrial hemp product that is a dietary supplement, food, or beverage shall not be distributed or sold in the state without packaging and labeling on the product that includes all of the following information:111926.3.
(a) An industrial hemp product that is a cosmetic shall not be distributed or sold in the state without packaging and labeling on the product that includes all of the following information:Article 8. Enforcement
111927.
(a) The department shall have the seizure and embargo powers provided for in Article 3 (commencing with Section 111860) of Chapter 7 with respect to industrial hemp products and raw extract.111927.2.
(a) In addition to the inspection authority provided elsewhere in this part, the department may inspect financial data, sales data, and personnel data, as needed to enforce this chapter.111927.4.
Violations of this chapter are subject to the fines and penalties established in Article 1 (commencing with Section 111825) of Chapter 8.Article 9. Agency Coordination
111928.
(a) The Department of Food and Agriculture and the State Department of Public Health, in consultation with the(a)On or before July 1, 2021, the cannabis licensing authorities, as defined in Section 26001 of the Business and Professions Code, shall prepare a report to the Governor outlining the steps necessary to allow for the incorporation of hemp cannabinoids into the cannabis supply chain. The report shall include, but not be limited to, the incorporation of hemp
cannabinoids into manufactured cannabis products and the sale of hemp products at cannabis retailers.
(b)(1)The report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(2)Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2025.
(a)It is the intent of the Legislature that objective scientific research regarding the safety of industrial hemp be conducted.
(b)If the Regents of the University of California, by appropriate resolution, accepts this responsibility, the University of California shall create a program, to be known as the California Industrial Hemp Research Program.
(c)The program shall develop and conduct studies intended to ascertain the general safety of industrial hemp. The program may solicit proposals for research projects to be included in the industrial hemp studies.
(d)Proposals shall demonstrate the use of key personnel, including clinicians or scientists and support personnel, who are prepared to develop a program of research regarding industrial hemp safety.