Cannabidiol (CBD) is popular due to its many health benefits. As a result, it shouldn’t be a surprise that the cannabidiol market continues to grow, leading to more people looking for ways to sell CBD.
Many people use CBD products to treat various ailments, notably severe pain and anxiety. The compound is available in many forms, including oils, gummies, flowers, tinctures, pre-rolls, etc. The sales of CBD have been increasing rapidly in recent years. Thus, it is no wonder that CBD enthusiasts are trying to manufacture and market the product independently.
However, not all states have made using and selling CBD products legal. Yet, if you want to expand your CBD business to California, you should know that state laws have made the compound legal, with some terms and conditions.
Using CBD products does not require a license, but you will need one if you want to sell them legally. The state requires that all sellers of cannabis products acquire a license from the Bureau of Cannabis Control (BCC).
CBD is legal in California, but there are some restrictions on who can sell it. This article will look at those rules and how you can start selling CBD if you want to enter this growing market.
What Is CBD?
CBD is released from the cannabis tee plant by separating cannabidiol from the hemp plant and then mixing it through a solvent, usually hemp seed and coconut oil. It is a secondary component of cannabis.
It is extracted primarily from hemp plants, closely related to the cannabis plant, and CBD is an essential component of medical marijuana. Cannabidiol is accessible in most parts of the country, although its legal status is unknown.
Even though the government still classifies CBD under the same category as marijuana, it does not enforce CBD laws. To facilitate CBD trials, the FDA eased regulation in December 2015.
A lot of people are now buying hemp CBD online without a license. Government policy on CBD is unclear and partly dependent on whether it derives from hemp or marijuana.
The legality of CBD has changed in recent years, as Congress has approved the legalization of the hemp crop. Government officials could face more significant challenges in banning CBD in the future.
Can You Sell CBD in California Without a License?
First and foremost, if you want to sell CBD oil in California, then you do need a license. However, other restrictions might affect your ability to sell CBD oil legally.
For example, suppose you sell any marijuana products through an online store or other online platforms. In that case, you must follow all federal regulations regarding online sales of marijuana products.
As a result, unlicensed retailers do not have the right to sell CBD products like foods, drinks, and supplements. Additionally, the United States has classified CBD as a Schedule 1 drug, similar to drugs like LSD and heroin.
In light of the information provided by the Cannabis Control Commission in California, dispensaries are permitted by law to sell marijuana-derived CBD products. However, CBD derived from industrial hemp is illegal, unregulated, and untaxed.
In California, the Public Health Department recently released a memo clarifying that MCSB rules cover the products made from industrial hemp for having a license to sell CBD edibles.
According to the California Public Health Department, “the state follows the federal law regarding food additives, dietary supplement labeling, or good manufacturing practices.” It means CBD products are not permitted in food, whether they come from a cannabis plant or another source of cannabinoids.
Licensing Requirements for CBD Sales in California
California is known for being a marijuana-friendly state, but that doesn’t mean it’s always easy to get started with a CBD business here. To start selling CBD products, you will need to obtain a state license and local business permit. The California Public Health Department oversees the licensing process.
In addition to obtaining your state license, you will need to apply for a local business permit from your city or county government. A business license is necessary for any retail or wholesale operation that sells marijuana products.
In California, CBD distributors should note that, in the absence of a license, cannabis cultivation, retail, and manufacturing in California are illegal as per the Bureau of Cannabis Controls (BCC).
With effect from 2018, cannabis businesses can only operate legally in commercial cannabis markets. In California, there are the most cannabis licenses in the US. For all cannabis-related activities conducted in California, this license is mandatory. For a license to issue, applicants must show proof to the local government that they would operate the business.
In addition, it is essential to remember that the state cannot issue a license for CBD business if a local jurisdiction does not permit it. To plan your CBD distribution area, you must also access this information.
California’s CBD Law Details
Several states are firmly in favor of the legalization of cannabis, including California. California’s Compassionate Use Act of 1996 also legalized marijuana for medical use. While after 20 years, the Adult Use of Marijuana Act allowed CBD to be used for recreational purposes.
California introduced AB 228 in 2018 in response to the Farm Bill adoption. As a result, the state legally regards CBD as hemp-derived cannabis and allows its use in edible products without any restrictions. However, this bill aims primarily to prevent the unregulated sale of CBD and its consequences. Furthermore, California complies with the FDA’s marijuana and marijuana products regulations.
Cannabis has always been legal in the state of California. However, to engage in commercial marijuana activity in California, including the sale of CBD, one needs a license.
To receive this license, you must submit proof that you have been approved by the local authority in which you will operate. It should note that the state cannot issue a license for commercial cannabis operations in jurisdictions that prohibit it.