Hemp Investor

Holiday cheers to California's new CBD laws


The wintry cold is quite comfortable for CBD-related businesses as new CBD laws and regulations go into effect in California's jurisdictions in the first half of October with the passage of Assembly Bill 45 going from strength to strength. CBD-related insurance professionals and other businesses got the legal boost they needed to really thrive from AB 45. Under the new law, manufacturers can include CBD and hemp products if the THC content is less than 0.3 percent. The legal provision covers many beverages and foods, and includes pet foods, dietary supplements, and even cosmetics.

New California CBD Laws: AB 45

The legislation is in line with federal laws that legalized hemp federally with the 2018 Farm Bill. In addition, the AB 45 legislation follows the Sherman Food, Drug, and Cosmetic Law, which regulates the sale of food, beverages, and cosmetic products. The latter banned the sale and manufacture of counterfeit beverages, food or cosmetic products in the market. The previous legislation regarded products in these industries as "adulterated" if they contained harmful substances that could be harmful or toxic.

Photo of Papa Grass, Courtesy of Pexels

According to the new law, every company that manufactures food and diet products with industrial hemp would first have to register with the state health ministry. This is to ensure that the plant parts contained in the product come from a location with an established industrial hemp production regulation. In addition, the bill also regulates the advertising of such products.

Although the legislation is definitely a step in the right direction. The structural processes could prevent companies from entering the industry. Hence, it is only natural that CBD enthusiasts would want to learn more about the new legal landscape in California regarding CBD products.


Perhaps the most significant plus of the new law is all of the industry that could possibly make it. The move will inevitably lead to new products, stimulating job growth and creating more meaningful opportunities for service providers to CBD-related companies. Experts point out the excellent market for CBD products. California lagged behind when it came to products made from hemp. This is unfortunate given the robust range of CBD products on offer. Many companies looked forward to doing business in California. Still, the uncertainty of the current legislation has been a major obstacle to the establishment of their businesses.

New California CBD LawPhoto of Sora Shimazaki, Courtesy of Pexels


But experts also point out the restrictions that result from AB 45, especially when advertising CBD-related products. The law is especially strict when it comes to testing and marketing CBD products, especially when it comes to the placement of advertisements. In addition, it is prohibited to market such products directly to children. In addition, AB 45 prohibits companies from placing ads or marketing to target groups where 70 percent of the reach is reasonably not more than 18. Of course, this means you need to have audience data that can be relied on. Some other state laws have been more lenient for CBD companies.

Another important legal part of the new legislation is its strict testing standards. It makes it mandatory that all CBD products be tested the same way as regulated marijuana products are in the California jurisdiction. Again, we have to mention that California already has strict testing requirements in this regard.


But the end word is undoubtedly California's booming market for CBD-based products. Worldwide, the market will grow from an estimated 36 billion US dollars to 55 billion US dollars in 2028, according to a report by Fortune Business Insights published earlier this year. The situation is particularly favorable for cross-selling between the most varied of markets.

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