Industrial hemp.

Assembly Member Aguiar-Curry's industrial hemp legislation aims to clarify the regulatory landscape for cannabis licensees while expanding oversight of hemp product manufacturers selling in California. The bill explicitly permits licensed cannabis businesses to manufacture, distribute, and sell industrial hemp products, provided they comply with existing state regulations.

The legislation establishes new registration requirements for out-of-state manufacturers producing hemp-based food and beverages for sale in California, matching existing rules for in-state producers. It maintains mandatory registration for cosmetic manufacturers and licensing requirements for those producing hemp-based pet foods. Both in-state producers of raw hemp extract and out-of-state manufacturers importing such extracts to California must register with the State Department of Public Health.

The bill's findings note challenges faced by legal cannabis businesses competing with illicit operations. Authors frame the legislation as addressing this issue by reducing regulatory barriers while maintaining appropriate oversight of hemp product manufacturing and sales. The measure creates a misdemeanor penalty for registration requirement violations, though it specifies that no state reimbursement to local agencies will be required for enforcement costs.