California Moves To Regulate Hemp, Cannabis Under One Framework
October 7, 2025California governor Gavin Newsom has signed Assembly Bill 8, establishing new regulations to govern hemp-derived THC in the Golden State. Newsom initially cracked down on retail sales of hemp THC last September. Since then, the state reports, almost all retailers have complied with the ban. According to data from the state’s Department of Alcoholic Beverage Control (responsible for enforcing the ban), only 151 retail locations (covering over 7,000 products) were in violation of the ban, out of more than 17,000 checked by the ABC.
The new regulations will ban all synthetic cannabinoids and move regulation of industrial hemp under the guidelines currently used by the state’s adult-use cannabis system. In addition, all smokable forms of hemp will also be outlawed in the state. Pure CBD isolate will remain exempt from the new framework, but all other hemp-derived products will fall under the state’s cannabis regulations.
The regulatory changes are set to be implemented between January 1, 2026 and January 1, 2028. These new regulations limit intoxicating hemp products to the state’s dispensaries and also subject them to California’s 15% tax on cannabis.—Shane English
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