For years, the State of California dragged its heels on regulating hemp-derived CBD. Numerous legislative efforts had failed time-and-again – until last year, with the passage of AB-45, signed by Gov. Gavin Newsom, which allowed for the inclusion of hemp and CBD extracts in food, beverages, cosmetics, dietary supplements, processed pet foods and more – assuming they contained less than 0.3% THC. However, nothing has really happened since – until now. Just a few days ago, the California Department of Public Health (CDPH) has proposed emergency regulations – mostly dealing with registration for industrial hemp manufacturers. 
As our Los Angeles CBD business attorneys can explain, the key points in the emergency action are as follows:
- Hemp product manufacturers will be granted different types of registrations, licenses, and/or authorizations from the CDPH, depending on the type of product they make. Those that make many different types of hemp/CBD products may need numerous registrations.
- Out-of-state hemp/CBD manufacturers that want to import products to California will need to register with the CDPH.
- “Enrollment and oversight authorization” is required at each location, lasts one year, and cannot be transferred.
- Applicants requesting oversight authorization must provide detained information about not only the type of product, but its sources, extract methods, etc. These must be signed under penalty of perjury.
- Fees are based on gross revenue accrued in the 12 months prior. New applicants will need to estimate their fees, and the formulas for calculating them are a bit complex. The fee structures for CBD product types and extract manufacturers are different.
These are just the primary points of the emergency action. It’s imperative that anyone in the CBD business or hemp business in California consult with their business attorney to make sure all registration, oversight, and licensure paperwork is properly drafted and timely submitted. Continue reading
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