Plain English Breakdown
Checked against official source text during the last sync.
AB-1397: Rules for Low-Dose Hemp Drinks
This law allows licensed hemp manufacturers to sell low-dose hemp drinks if they meet specific safety and testing rules, sets a minimum age of 21 for buyers, and creates a new tax on these sales.
What This Bill Does
- Allows hemp manufacturers to produce and sell low-dose hemp drinks that contain no more than 0.5 milligrams of total THC per container and do not contain cannabis.
- Requires every low-dose hemp drink to be tested by an independent testing laboratory before sale.
- Prohibits selling or consuming these drinks for anyone under 21 years old.
- Imposes a tax equal to 10% of the gross receipts from retail sales of these drinks on purchasers.
- Establishes a Low-Dose Hemp Drink Excise Tax Fund where tax money is deposited and used by state agencies for regulatory purposes.
Who It Names or Affects
- Hemp manufacturers who want to make low-dose hemp drinks
- Retailers selling these beverages in California
- Customers buying or drinking the products
- The State Department of Public Health and the California Department of Tax and Fee Administration
Terms To Know
- Low-dose hemp drink
- A beverage made from industrial hemp that contains no more than 0.5 milligrams of total THC per container and does not contain cannabis.
- Excise tax
- A fee added to the price of specific goods, set at 10% of the gross receipts for these drinks.
Limits and Unknowns
- The official text does not state a specific effective date.
- While local agencies may face new costs from enforcing criminal provisions, this bill states that no reimbursement is required by the act.