Hemp: low-dose hemp drinks.

Assembly Member Flora proposes new regulations for low-dose hemp drinks in California, establishing production standards and implementing a dedicated excise tax. The legislation authorizes hemp manufacturers to produce beverages containing no more than 0.5 milligrams of total THC per container and maintaining THC concentration below 0.3 percent, subject to independent laboratory testing and clear labeling requirements. The products cannot contain cannabis as defined under state law and must not be sold to individuals under 21 years of age.

Beginning January 1, 2026, the bill creates a 10 percent excise tax on retail sales of low-dose hemp drinks, to be collected by retailers and remitted to the California Department of Tax and Fee Administration. This tax applies in addition to existing state and local sales taxes. The revenue generates funding for a new Low-Dose Hemp Drink Excise Tax Fund, which provides continuous appropriations to both the tax department and the State Department of Public Health for their respective regulatory responsibilities.

The measure extends existing consumer protection frameworks to this new product category, incorporating low-dose hemp drinks under the Sherman Food, Drug, and Cosmetic Law while establishing specific testing and labeling protocols. As a tax measure, the bill requires a two-thirds vote in both legislative chambers for passage. The legislation creates no reimbursement obligations to local agencies, as any new costs stem from modified criminal provisions rather than direct mandates.