California Hemp Law Restricts Therapeutic Products, Advocates Say

Statutory Framework and Effective Date

AB 45 amended California's Sherman Food, Drug, and Cosmetic Law to cap total THC in hemp products at 0.3% by dry weight, aligning state law with the federal 2018 Farm Bill's definition but eliminating the state's prior tolerance for higher-potency hemp extracts. The statute became operative on July 1, 2026, according to the enrolled bill text. On a strict reading, the law prohibits the sale of any hemp-derived product containing more than 0.3% delta-9 THC, THCA, or other total THC isomers through general retail channels.

The California Department of Public Health now enforces the cap under Health and Safety Code §110100 et seq. Violations carry civil penalties up to $10,000 per occurrence. Willful violations bring criminal misdemeanor exposure. Licensed cannabis retailers operating under the Department of Cannabis Control's regulatory framework remain exempt and may sell products with THC concentrations exceeding the 0.3% threshold, subject to DCC potency limits and testing protocols.

Patient and Industry Objections

Advocacy groups including the Hemp Industry Association of California and the California Cannabis Industry Association filed joint comments with CDPH on July 15, 2026, arguing that AB 45 eliminates access to hemp-derived CBD formulations containing trace THCA that patients use for epilepsy, neuropathic pain, and post-traumatic stress disorder. The groups cited a survey of 1,200 California hemp consumers conducted in June 2026. Sixty-eight percent reported using products with total THC between 0.5% and 2% for medical purposes. Forty-four percent said they can't afford equivalent products sold through licensed cannabis dispensaries due to California's 15% excise tax under Revenue and Taxation Code §34011.

The law's practical effect is to push therapeutic hemp users into the illicit market or force them to pay a 15% premium for the same molecule sold through a different regulatory channel—a regressive outcome for low-income patients.

Manufacturers of hemp-derived tinctures and topicals told the Sacramento Bee that reformulation to meet the 0.3% cap reduces efficacy for conditions requiring higher cannabinoid ratios. One Sacramento-based manufacturer reported a 40% decline in wholesale orders since July 1, with three retail accounts in Northern California discontinuing hemp wellness lines entirely to avoid compliance risk.

Legislative Defense and Consumer Protection Rationale

Assemblymember Bill Essayli, AB 45's author, defended the statute in a July 18 statement to the Sacramento Bee, saying the measure closes a loophole that allowed intoxicating hemp products to be sold in gas stations and convenience stores without testing, labeling, or age verification required of licensed cannabis. Essayli, a Republican representing Riverside County, argued that the 0.3% cap preserves access to non-intoxicating CBD while preventing unregulated psychoactive products from reaching minors.

CDPH issued guidance on July 10, 2026, clarifying that AB 45 doesn't restrict the sale of CBD isolate or broad-spectrum hemp extracts containing non-detectable THC. The department's FAQ document states that products labeled "THC-free" or "non-detect" remain compliant if laboratory testing confirms total THC below the 0.3% statutory threshold using validated HPLC or UPLC methods. But the department hasn't issued a formal opinion on whether THCA, which converts to delta-9 THC upon decarboxylation, counts toward the total THC calculation—a gap that's generated confusion among manufacturers and testing laboratories.

For full background on this regulatory shift, see the CannIntel topic hub on California Hemp Regulation.

The next enforcement signal will come in Q3 2026, when CDPH is expected to publish a notice of proposed rulemaking under the Administrative Procedure Act to establish testing protocols, labeling requirements, and recall procedures for non-compliant hemp products. Industry attorneys are watching whether the department will adopt a total-THC calculation methodology that includes THCA. That move would effectively ban most full-spectrum hemp extracts. The California Cannabis Industry Association has signaled it may seek a legislative fix in the 2027 session to create a tiered potency framework for hemp therapeutics, similar to Oregon's model under ORS 475C.770, which allows products up to 1% total THC with a medical recommendation.