OCTOBER 2021 - Capitol Corner

The Legislature wrapped up this year’s session, here are the following significant cannabis-related bills that were acted upon by the Governor:

AB 45 (Aguiar-Curry)Establishes a regulatory framework for industrial hemp under the Sherman Food, Drug, & Cosmetic Law (Sherman Law). Requires manufacturers of products containing industrial hemp or hemp products to obtain a process food registration and comply with good manufacturing practices.

Legislators need to develop a tax scheme for smokable hemp and the California Department of Public Health (DPH) must develop regulations. The law will require CBD products to be appropriately tested and labeled.

**Signed by the Governor

SB 311 (Hueso) - The Compassionate Access to Medical Cannabis Act or “Ryan’s Law,” end-of-life patients may use their own medical cannabis in healthcare facilities, though no cannabis will be provided to them. Hospitals may reasonably restrict the manner in which cannabis is stored and used to ensure the safety of patients, guests, and employees.

Newsom had vetoed a nearly identical bill in 2019. In the intervening years, lawmakers worked to clarify state and federal rules and federal authorities made clear they had no strong position on the matter.

**Signed by the Governor

AB 1302 (Quirk) - Allows cannabis licensees to advertise or market on a billboard along a highway that is farther than a 15-mile radius from the California border.

Last year, a judge ruled that cannabis advertising along interstate highways violated Prop 64. State regulators were forced to change the rules and order the removal of cannabis billboards on roads that cross state borders. The change impacted 35 highways. In his veto message, Gavin Newsom said AB 1302 would violate the spirit of the ballot measure voters approved and put children at risk.

**Vetoed by the Governor

Local Jurisdiction Assistance Grant Program

California is committed to quickly transition cannabis businesses from provisional to annual licenses. One-time grant funding, totaling $100 million, is available to help eligible jurisdictions participate in this effort. Extra funds are available for eligible local jurisdictions with social equity programs. The funds seek to target areas with the highest numbers of provisional licensed businesses. Large numbers of small, legacy and equity businesses operate within these areas.

Eligibility: 17 cities and counties with the highest numbers of provisional licenses

Status: DCC published the request for proposal on October 1, 2021. Applications are due November 15, 2021.

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