California Postpones CBD Law Debate to 2020

September 5, 2019 15:00:59

The long-awaited legislation that would have regulated the use of CBD in cosmetics, beverages and foods in California has been put on hold until next year in the state senate. This action effectively means that the bill died on arrival.

When this bill reached the California Senate Appropriations Committee, it was given the classification “Suspense.” This means that the legislators put the proposed legislation aside and while it can be picked up, chances are it will not be debated in the committee until next year or even beyond.

The bill was intended to declare that a beverage, food or cosmetic product isn’t adulterated just because it contains CBD or other extracts of industrial hemp.

This measure had received unanimous support in the state Assembly where it was quickly debated and passed as an urgent piece of legislation. The proponents of the law also strongly believed that Gov. Gavin Newsom would have signed that law if it had reached his desk.

The proposed law had sought to reverse the stipulation made by the state department of health that CBD cannot be added to food, beverages and cosmetics.

Cecilia Agular-Curry, the Democratic member of the state Assembly who wrote the bill expressed disappointment when the bill stalled as soon as it reached the Senate. She said that the law enforcement actions that are being taken by local regulators and the health department are hurting the business community while putting the agricultural sector at risk since farmers had grown hemp with the hope that their produce would be processed into products for the state and interstate market.

In her statement to the press, the lawmaker also stated that she was in disbelief that a state which permits adults to buy recreational marijuana in different forms is the same state that is blocking people from accessing hemp products that the people think can help them to deal with a variety of health conditions without facing any risk of becoming intoxicated by those products.

She added that without the bill she proposed, California remains without a way to regulate the CBD market and also protect consumers since buyers will still access the needed CBD products with or without the support of the state government. She therefore argued that it is much better to put an enabling law in place so that only approved products are allowed onto the local market.

The situation in California is representative of the confusion in which the whole country is entangled as the FDA looks at the patchwork of laws in different states while many states are also waiting on the federal government to provide guidance on the way forward for the CBD industry.

Analysts strongly believe that industry actors like IONIC Brands Corp. (CSE: IONC) (OTC: IONKF) and Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) may be disappointed by California’s failure to pass a CBD law and yet the state has shown strong leadership on other matters.

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