What is hemp?
Hemp, also known as industrial hemp, is a varietal of the plant species Cannabis sativa L. just like medicinal and adult-use cannabis. Hemp is used to make many products, including rope, clothing, paper, but it can also be processed into consumable products that contain THC, the psychoactive compound in Cannabis sativa L. Federal law distinguishes hemp from cannabis based on the amount of THC the plant material or product contains:
- Varietals of Cannabis sativa L. that contain less than 0.3% THC are considered “hemp”
- Varietals that contain more than 0.3% THC are considered “marijuana” (or cannabis)
In California, if a hemp product contains any detectable amount of THC, it is considered intoxicating and its sale is restricted. Hemp products that contain compounds that do not cause psychoactive effects, such as CBD (cannabidiol) and CBN (cannabinol), are considered non-intoxicating.
Regulating hemp
On October 2, 2025, Governor Gavin Newsom signed Assembly Bill 8 (AB 8), authored by Assemblymember Aguiar-Curry. The bill limits the sale of intoxicating hemp products and moves oversight of most hemp products under California’s cannabis regulatory framework.
Prohibited hemp products
California prohibits the sale of the following types of hemp products:
- Alcoholic beverages that include hemp cannabinoids
- Inhalable hemp products such as pre-rolls, vape cartridges, and integrated vaporizers
- Hemp flower
- Products with synthetic cannabinoids
- Products made outside the regulated market
Current restrictions
The Department of Cannabis Control (DCC) is developing regulations to allow licensees to use hemp. Until new rules are adopted:
- Licensed manufacturers can only use cannabinoids from licensed sources
- Licensed distributors cannot transport hemp
- Licensed retailers cannot sell hemp products
Licensed testing labs can still test hemp as the law allows. The new regulations will not change the current rules for growing hemp. Farmers will still be able to grow hemp in California or bring it in from other states, in accordance with United States Department of Agriculture (USDA) rules.
Hemp enforcement
As of January 1, 2026, state and local agencies have new enforcement powers to address illegal sales of intoxicating hemp products, including taking products off shelves and issuing fines to businesses. This helps DCC and other government agencies work together to enforce these rules.
Integrating hemp into the licensed medicinal and adult-use markets
Starting January 1, 2028, intoxicating hemp must be manufactured, tested and sold just like medicinal and adult-use cannabis. Hemp products containing THC will have to pay the same taxes as medicinal and adult-use cannabis products. For tax-related questions, contact the California Department of Tax and Fee Administration.
Rulemaking
DCC is required to make new rules about the integration of hemp into the licensed market. The new rules must include product testing, product safety, and other topics. Stay informed about rulemaking actions by visiting our webpage: DCC Rulemaking.
Distribution of hemp
DCC licensed distributors will be able to bring hemp plant material into the cannabis supply chain. Once in the cannabis supply chain, it will be required to follow the same rules as cannabis including but not limited to:
- Good manufacturing practices
- Track and trace requirements
- Final form testing
- Packaging and labeling
- Advertising and marketing
Manufacturing of hemp
Anyone making products with intoxicating cannabinoids in California will need to have a DCC manufacturing license.
Retail sales of hemp
DCC licensed retailers will be able to sell products containing cannabis, hemp, or a combination of cannabis and hemp.