Cannabis Testing Regulations Tighten
California lawmakers are in the final stretch of the 2020 legislative session. The legislature is still considering several significant bills concerning the marijuana and hemp industries. Assembly Bill 1525 would make it easier for legal marijuana companies to obtain banking services. Senate Bill 827 would provide a measure of marijuana tax relief. On the other hand, the recently-amended AB 2028 would impose stricter regulations on hemp and CBD products. Below, we discuss the proposed effects of AB 2028 as a result of the recent amendments to the bill. Continue reading to learn about the potential changes to California cannabis law and reach out to a California cannabis business lawyer for help with your boutique cannabis company.
Proposal to Bring Hemp and CBD in Line with Marijuana Regulation
California Assembly Bill 2028 was recently amended to add more than 60 pages of hemp industry regulations. The amended language aims to bring hemp and CBD regulation in line with marijuana regulation–meaning much more strict manufacturing and distribution regulations.
The proposed regulations would, among other things: require manufacturers of industrial hemp and hemp products to go through a more strict authorization process before harvesting and distribution, including by satisfying stringent testing and labeling requirements; impose a $250 fee on manufacturers of industrial hemp products; and significantly increase the stringency of testing requirements, including by setting certain methods and validation protocols for testing. Violation of the new hemp testing requirements would constitute a crime.
A lobbyist for the California Cannabis Industry Association (CCIA) stated that the amended bill is meant to establish “a robust framework to allow hemp CBD and other derivatives to be safely and legally manufactured in California and rigorous consumer safety protocols.” The bill is intended to provide “testing parity between (marijuana) and hemp products, as well as language to mandate that the licensing authorities consider the incorporation of hemp into the cannabis supply chain.”
Hemp manufacturers, on the other hand, lament the proposed changes. They believe that the bill is meant to “level the playing field” between hemp manufacturers and THC producers and is likely to “chill the growth of the hemp industry in California.”
Speak with a Knowledgeable California Cannabis Business Lawyer
If you are interested in setting up a marijuana business or are dealing with regulatory, tax, licensing, or other legal issues with your cannabis business in Los Angeles or Southern California, call McReynolds Vardanyan, LLP, in Glendale at 818-855-2115. Our California cannabis business lawyers will work with you to get your budding business off the ground efficiently, effectively, and legally.