Hemp: low-dose hemp drinks.

Assembly Member Flora's proposal to regulate low-dose hemp drinks in California would establish new production standards and a dedicated excise tax structure for these beverages. The legislation permits hemp manufacturers to produce drinks containing no more than 5 milligrams of total THC per container, with a maximum THC concentration of 0.3 percent. Products must undergo independent laboratory testing and display THC content clearly on their packaging.

The bill creates a 10% excise tax on retail sales of low-dose hemp drinks, effective January 1, 2026. Retailers must collect this tax from purchasers and provide documentation showing the tax as a separate charge. The revenue flows into a new Low-Dose Hemp Drink Excise Tax Fund, which supports regulatory oversight by the California Department of Tax and Fee Administration and the State Department of Public Health.

Under the proposed framework, sales and consumption are restricted to individuals 21 and older. The legislation expands existing food and drug safety laws to encompass these products while maintaining current consumer protection standards. Implementation requires a two-thirds vote in both legislative chambers due to the new tax provisions.