CA AB2223

Allows licensed cannabis manufacturers and microbusiners to obtain and use industrial hemp from registered hemp manufacturers, with hemp tracked separately through the manufacturing process and recorded in the state track and trace system.

Prohibits licensed manufacturers and retailers from incorporating or selling products containing THC or comparable cannabinoids that have been converted from hemp-derived cannabinoids.

Establishes requirements for industrial hemp products including a maximum total THC limit of 1 milligram per final product and 0.25 milligrams per serving, prohibits synthetically derived cannabinoids unless approved by the department, and bans labeling hemp food and beverage products as intended to create intoxicating effects.

Creates new enforcement provisions allowing peace officers and state officials to seize and embargo unlawful industrial hemp products, with established procedures for condemnation, destruction, and civil penalties up to $2,500 per violation and criminal penalties up to $1,000 and one year in county jail.

Requires out-of-state hemp manufacturers producing food, beverages, or cosmetics for sale in California to register with the State Department of Public Health and exempts the state from providing local reimbursement for costs associated with the new crimes created.