- This new law would criminalize products that currently sustain existing businesses and give unrealistic time frames for businesses to comply with the law.
- Products that become immediately illegal to sell under the new law includes Smokable Hemp Flower and associated products produced from or including Smokable Hemp Flower, such as pre-rolls, vape pens, hooka, electronic cigarettes or shisha. Tobacco products cannot be sold that contain industrial hemp.
- You have three months to sell your existing stock that does not conform to the new law such as tinctures, consumables or body care products.
- Out of state producers who import to California will also have to comply with this law, and their state must have a similar food and safety program that monitors industrial hemp for consumption.
2. This law will put small and medium-sized manufacturers (in state and out of state) and many retail and distributing businesses out of business (brick and mortar and online), as it will be too costly for these manufacturers to comply with the burdensome fees and regulatory hurdles, increasing cost and limiting your inventory options.
- Licensing and registration requirements and annual authorization and research fees shall be assessed to manufacturers of industrial hemp products to cover the costs of implementing this regulatory program.
3. This law will put small, local manufacturers of oils, soaps, tinctures, bath balms and consumables out of business as it will be too difficult to comply with final form batch testing requirements.
- Final form product testing by an independent testing laboratory is required to determine total THC concentration does not exceed .03% total THC.
4. Hard to understand labeling and testing requirements are required for this non-psychoactive product, unlike any other dietary supplement, herbal product or food on the market.
- All product must contain a scanable bar code, internet website or QR codes that link to the COA for the final form product batch test by an independent testing laboratory.
- All consumables, including baked goods and coffee products, as well as pet products, must be pre-packaged and contain all labeling requirements and final form batch testing.
5. A ban on smokable hemp will be expensive.
- Texas banned smokable hemp in 2019. Shortly thereafter, hemp companies filed lawsuits against the Texas Department of State Health Services claiming the ban was unconstitutional. Plaintiffs cited that they would unjustly incur significant cost related to relocation outside of the state, lost profits during partial closures and reestablishment efforts, and additional labor costs associated with new operations and activities in other states.
- The Plantiffs have been successful so far, but not without having incurred significant legal fees and while a Texas Trial Court declared the smokable hemp ban unconstitutional, appeals from the State are anticipated.
- The State of Texas has incurred significant legal fees, all financed by citizen tax dollars. Similar costs would be incurred by the State of California, as well as California companies, forcing businesses to potentially close or move out of state.
6. Big Brother comes a knocking.
- If products you sell in your store do not meet the requirements under the new law, you can be held criminally liable, the burden is put on the retailer to ensure that the product you sell is compliant under the new law.
- The “department” has inspection authority of financial, sales and personal data and seizure power over products that violate the new law and may adopt regulations for record keeping standards for industrial hemp products.
- Establishes a crime to label, market, advertise or publish any health related benefits of CBD.
- Age requirements may be established for the sale of industrial hemp products.