With The New Law in Place, California Opens Its Doors To Global CBD Companies

This regulatory change has attracted the attention of Canadian cannabis giant Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), the largest operator in the CBD industry. David Culver, the company's head of lobbying, said they had been pushing for the bill for more than two years. Canopy manufactures industrial hemp-derived CBD products, such as Biosteel sports drinks and the Martha Stewart range of CBD gummies. However, Canopy's CBD products have also not been sold in California due to the previous Sherman Food, Drug, and Cosmetic Act prohibiting the sale of over-the-counter CBD.

Culver said the bill opens up the market in California and will provide retailers in the state with regulatory and regulatory certainty without having to worry about confiscation of their products.

The new law also opens up products other than CBD derived from industrial hemp, meaning that an estimated 1,859 cannabis retailers in California will be licensed to sell such products. According to the forecasts of the relevant agencies, the sales of these retailers in 2021 will be between $49 and $5.7 billion.

Not everyone is happy with this California CBD law, though. Many of the state's industrial hemp producers have pointed out that the new law has failed to lift the ban on inhaled industrial hemp, saying that these products will not be allowed to be sold until the new tax law is implemented, and that the new tax law may take several years to be introduced.

Larry Farnsworth, a spokesman for the National Industrial Hemp Council in Washington, D.C., criticized that this has seriously damaged the interests of California inhaled industrial hemp farmers, who have benefited the entire industrial hemp but the farmers have become the losers. Some industrial hemp producers in California have even threatened to file a lawsuit against the new law.