California Gov. Gavin Newsom on Wednesday signed the state’s Assembly Bill 45 into law, establishing a regulatory framework governing the manufacture and sale of products containing CBD — including dietary supplements, topicals, OTC products, pet products and more. The bill passed the state’s legislature in September.
Included in the law are various requirements around testing, labeling, reputable sourcing and company registration. Under the law, companies manufacturing dietary supplements and food with industrial hemp to register with the state’s public health department to prove that the hemp originates from a state or country with an established and approved industrial hemp program.
Industry organizations and CBD companies lauded the news.
“CHPA thanks Governor Newsom for signing AB 45 into law. There is strong consumer and commercial interest in CBD and hemp-derived products, and we applaud California for its leadership in creating a regulatory pathway to meet consumer demand, all while protecting the public from potentially unsafe products,” said Carlos Gutiérrez, vice president of government affairs at the Consumer Healthcare Products Association. “CHPA continues to advocate for legislation allowing CBD to become a legally marketed dietary supplement ingredient and will work with federal and state government leaders to develop a regulatory pathway.”
CBD company Elixinol also praised the new law.
“The passage of AB 45 is a very positive development — both for reputable hemp derived CBD product providers like Elixinol, and the many retailers and consumers seeking to enjoy the benefits of high quality and safe CBD products,” said Oliver Horn, global CEO of Elixinol. “The new guidelines for companies that sell products with hemp extracts could help clean up the CBD market nationwide, given California is by far the largest and most important CBD market in the US. We expect it to create new trade opportunities between Elixinol and major retailers, who were previously seeking clear regulatory guidance at the state level.
The Hemp Farmers Guild, which represents California’s hemp farmers and cultivators, opposed the bill, saying its regulations would “harshly regulate the nascent industry to death,” and didn’t reflect the needs of the state’s industrial hemp industry.
“The author did not seek sufficient input from California farmers and other stakeholders actively involved in the hemp industry in [California],” the Hemp Farmers Guild said in a statement following the legislation’s passage, noting that it would “disproportionately [affect] small and minority-owned hemp farmers, and mid-size service and CBD products companies who have already spent millions establishing themselves in [California].”