New Regulations on Hemp & L.A. Retail Stores

DCR recently issued a notice informing Licensees of the recent enactment of emergency State regulations concerning industrial hemp products, as well as recent updates to the Los Angeles Municipal Code (LAMC). To avoid potential penalties and fines, operators must ensure compliance with these new regulations. Read on for a summary of these regulations and tips for staying in compliance.?

Emergency State Regulations on Intoxicating Hemp Products

Effective September 23, 2024, the State of California adopted emergency regulations governing the sale of industrial hemp food, beverages, food additives, and dietary supplements intended for human consumption. (See, Title 17 California Code of Regulations, § 23000, et seq.) These new rules include the following key restrictions:

1. No Detectable THC: Hemp products may not have any detectable level of tetrahydrocannabinol (THC) per serving.
2. Age Restriction: Hemp products intended for human consumption cannot be sold to individuals under the age of 21.?
3. Serving Limit: Each package of hemp products, even those without THC, may contain no more than five servings.
4. List of Intoxicating Cannabinoids: The regulations also include additional cannabinoids within the definition of THC.

All consumer dietary supplements, food, or beverage products manufactured using industrial hemp are governed by the Sherman Food, Drug, and Cosmetic Laws. (Health and Safety Code § 109875.) This law requires manufacturers and distributors of hemp products to be registered with the Food and Drug Branch for Industrial Hemp Enrollment and Oversight at the California Department of Public Health. Other provisions regulate the composition of hemp products and impose specific labeling and marketing restrictions.?

Municipal Code Updates on Hemp?

Independent of the State emergency regulations, the definition of cannabis in LAMC section 104.01(a)(7) has been amended to include hemp. Therefore, industrial hemp products may only be sold in the City of Los Angeles by a licensed Commercial Cannabis Retailer.?

Tips to Stay in Compliance

1. Review Your Inventory: Ensure that any hemp and CBD products comply with all State regulations, including, but not limited to, the expanded list of THC restrictions, age restrictions, and serving sizes. If they do not comply, remove them from your shelves immediately and dispose of them. If any of the products contain batteries or oil then they must be diverted to hazardous waste. The California Department of Public Health also maintains a list of industrial hemp businesses that have registered with the Food and Drug Branch for Industrial Hemp Enrollment and Oversight. While this does not mean that individual products are necessarily compliant, it is an available resource to aid in your decision as to whether retail sale of the product complies with State and local laws.??

2. Comply with local law: Continue abiding by DCR’s Rules and Regulations, specifically the prohibition on sales to customers under 21 years old and all product inventory and sales requirements. Consumable hemp products may only be sold to customers 21 years or older. Ensure that any hemp product contains the appropriate labeling as required by the Health & Safety Code section 111926.2.

Please contact DCR at [email protected] if you have any questions.