Last year, California passed into law AB-45, which paved the way for a regulated CBD market in the state. However, California flip-flopped on inhalable CBD products. Earlier CBD legislation would have allowed them, but then drafts of AB-45 prohibited them. Finally, we landed on an interesting compromise that made basically everyone unhappy. Today I’ll unpack that a bit further.
AB-45 states very clearly that both the manufacture and sale of inhalable CBD products in California is prohibited. Before I go any further, I should point out that “inhalable products” can include anything that people smoke: vaporizers, vape cartridges, smokable hemp, hemp cigars, etc.
For now, nobody can make or sell inhalable CBD products in California with one big exception: the state allows people to manufacture these products ONLY IF they are intended for sale in other states. Strange, right? California’s Department of Public Health (CDPH) has a separate registration for manufacturers of inhalable products for out-of-state sales, which I wrote about here.
All of this could change. AB-45 states clearly that the prohibition on in-state manufacture and sales will end if the state legislature passes a tax on inhalable products. Knowing California’s history on cannabis taxes, the taxes would be