California enacted statute AB 45 in October 2021, authorizing the use of hemp and hemp-derived cannabidiol (CBD) in food, beverages, dietary supplements, and cosmetics at the state level. Now, state regulators have proposed new regulations to govern the state’s hemp-derived CBD market. Comments on the proposed regulations are due by May 31, 2022.

California’s proposed regulations primarily address new registration requirements for in-state industrial hemp manufacturers and out-of-state industrial hemp extract manufacturers. In-state manufacturers of extract, human foods (including beverages and dietary supplements), cosmetics and processed pet food products containing industrial hemp will need the appropriate registration for their respective products. Manufactures may be required to hold multiple registrations for each type of product manufactured if the proposed rule is adopted.

The new proposed regulations will require registration for manufacturing industrial hemp extract, foods, or cosmetics within the state of California. The proposed regulation will, however, differentiate between manufacturers of extract and manufacturers of foods or cosmetics: The regulations will specify new rules for out-of-state industrial hemp manufacturers of extract, while not specifying any such standards for out-of-state industrial hemp manufacturers of foods or cosmetics. Manufacturers of industrial hemp extract that intend to extract outside of California for import into the state will be required to obtain, maintain, and pay annual registrations with the state. 

The proposed regulations also refer to the manufacture of inhalable products. Statute AB 45 prohibited the manufacture or sale of inhalable industrial hemp products within California, except for the sole purpose of sale in other states. The new regulations will require manufacturers of inhalable products, as well as manufacturers of other products, to obtain and maintain an industrial hemp “enrollment and oversight authorization” for each location used for processing, manufacturing, packing, repacking, labeling, warehousing or holding hemp-containing products.

The California Department of Public Health is accepting comments through the end of May 2022 for the proposed rule. Agency guidance regarding the submission of comments can be found here. Since California statute AB 45 provides for agency authority to issue additional regulations regarding age restrictions and maximum serving sizes for hemp-derived cannabinoids, additional regulations may be forthcoming in the coming months.

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