Don’t Get too Hyped on California’s New Hemp Law Just Yet

Last week, AB-45 completed its run through the California legislature and was presented to Governor Gavin Newsom for his signature, which is probably imminent. Once he signs it, the law takes effect and will pave the way for legal CBD consumables, while banning (at least temporarily) any kind of hemp-derived inhalable product. If you want to read our prior analysis of AB-45, see this post.

If you know even a little about the twists and turns of California’s attempts to legalize CBD since 2018, you’ll appreciate just how monumental this bill is, at least in theory. In 2019, AB-228 made it almost to the finish line but stalled out due to opposition (see my posts hereherehere, and here). In 2020, California legislators tried (and failed) to do the same thing two times with AB-2827 and AB-2028. Personally, I was telling people all year that even AB-45 didn’t stand a great chance.

Now that AB-45 has passed, a lot of folks are celebrating while others (namely inhalable product stakeholders) are upset. All of these reactions may be premature because things are likely to change substantially over the coming months (assuming Newsom signs AB-45) when the California Department of Public Health (CDPH) issues CBD regulations.


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