AB 747

This bill creates certain requirements and restrictions related to the sale of hemp-derived cannabinoid products and modifies the definition of hemp.

Current law defines “hemp” as “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9-tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis or the maximum concentration allowed under federal law up to 1 percent, whichever is greater, as tested using post-decarboxylation or other similarly reliable methods.” Current law exempts hemp from the definitions of marijuana and tetrahydrocannabinol (THC), which are controlled substances and the possession, manufacture, or distribution of which is a criminal offense.

The bill defines “hemp-derived cannabinoid” as any cannabinoid that is extracted from hemp, including delta-6-THC, delta-8-THC, delta-9-THC, and delta-10-THC, subject to certain exclusions. A “hemp-derived cannabinoid product” is defined, subject to limited exceptions, as a product that contains or is labeled to contain a hemp-derived cannabinoid (HDC) and that is produced, marketed, or otherwise intended to be ingested orally, inhaled, or absorbed through the skin. The bill specifies that the definition of hemp includes an HDC product. The bill also modifies the definition of hemp to specify that the qualifying criteria for hemp is tested using high-performance liquid chromatography, gas chromatography-mass spectrometry, or other similarly reliable methods.

The bill prohibits a person from selling, offering to sell, or otherwise providing an HDC product to a person who has not attained 21 years of age (underage person). The bill also prohibits an underage person from purchasing, attempting to purchase, or possessing an HDC product and from falsely representing his or her age for the purpose of obtaining an HDC product. The bill includes a defense for an HDC product seller if the purchaser appears to be of age and provides documentation supporting his or her false representation that he or she is of age.

Under the bill, before an HDC product may be sold or offered for sale to a consumer, the product manufacturer must submit a sample of each batch of the product to an independent, accredited laboratory for testing in accordance with generally accepted industry standards, and the laboratory must certify all of the following: 1) the product contains the amount of cannabinoids stated on the label, disclosed as a percentage and as milligrams per serving and, if applicable, per container; 2) the product does not contain more than trace amounts of mold, solvents, or certain other materials; and 3) the product is within the allowable delta-9-THC concentration for hemp. The certifying laboratory must provide the manufacturer with a certificate of analysis of testing results (COA) for the product. No person may sell, or offer to sell, to a consumer an HDC product unless the product is accompanied by the COA, which may be provided by means of a quick response (QR) code on the product’s label.

Under the bill, an HDC product may not be sold or offered for sale to a consumer unless the product is labeled with specified information, including 1) the name and contact information for the product’s manufacturer or brand owner; 2) the product’s serving size, servings per container, and cannabinoid profile per serving and in total for the container; 3) the product’s ingredients, including major food allergens; 4) the product’s potency, labeled as milligrams per serving, for total THC and for each HDC and the total amounts of THC and of each HDC in the product’s container; and 5) a warning statement containing specified information. An HDC product may not be sold or offered for sale to a consumer unless the product packaging is child-resistant and does not contain any feature likely to be appealing to children. An HDC product must be in a tamper-evident container or packaging or have a tamper-evident seal.

Under the bill, an HDC product that is produced or marketed as a beverage 1) may not contain more than 10 milligrams of THC in a single serving, and 2) if packaged in a nonresealable container, may not be sold in a container having more than two servings.

The bill specifies that a person may manufacture and sell for export from this state a hemp-extract product that is permitted to be manufactured, packaged, prepared, transported, or held for distribution in this state even if the hemp-extract product is not permitted to be sold to a consumer in this state.

The bill also specifies that a provision of current law, which requires a referral from the Department of Agriculture, Trade and Consumer Protection before a district attorney or the Department of Justice may prosecute a hemp-related violation, does not apply to enforcement of a violation of the bill’s provisions relating to HDC products.