2 Step Industrial Hemp Products Business Start-Up

How to become part of the New Industrial Hemp Products Market Place.

Step 1 - Formation of your Industrial Hemp Product Corporation

This is the 1st Step in the Licensing process and is the foundation of your Industrial Hemp Product Business.

The main purpose of the 1st Step is to protect your personal assets in the event of a lawsuit. For example, an Industrial Hemp Product causes harm to another person or animal.

Our office will prepare and file with the California Secretary of State all business-formation documents, such as, articles of incorporation, bylaws, Stock Certificates, etc., which establishes who the Owners are, which is a required to proceed to Phase 2 the authorization (Hemp) or application process (Cannabis).  The turn-around time for Phase 1 is approximately 14 business days.

Step 2 - Authorization to manufacture Industrial Hemp Product

This is the 2nd Phase in the authorization (Hemp) and includes the verified business and owner information and tax identification number from Step 1, preparation and uploading of operating procedures and all application requirements related to your type of Industrial Hemp Products.

Frequently Asked Questions about Industrial Hemp Products.

Can I start manufacturing and selling industrial hemp products now?

Yes, you may manufacture and sell industrial hemp (IH) products or raw hemp extract only after obtaining an Industrial Hemp Enrollment and Oversight (IHEO) Authorization from California Department of Health (CDPH).

In order to get started on the process of applying, please contact our office today for a free 30 minute telephone consultation with an attorney.

Do I need an IHEO Authorization to sell IH products at my retail store (e.g. grocery store, market, etc.)?

No. An IHEO Authorization is required for manufacturers of IH products and IH extracts. Retailers, subject to the California Retail Food Code, must ensure they obtain their packaged IH products from CDPH licensed sources.

What types of industrial hemp products may I manufacture, pack, or hold in California?

Shelf-stable food (e.g. baked goods, candy, confections, dried mixes, etc.)

Dietary supplements taken by mouth (e.g. botanicals, herbs, powders, amino acids, etc.)

Cosmetics (e.g. lotions, balms, makeup, salves, cleansers, etc.)

Pet food (e.g. food for animals NOT including livestock)

Beverages

Inhalables - ONLY for out-of-state sales

Health and Safety Code Section111921.6. (a) Manufacture or sale of inhalable products is prohibited. Manufacture of inhalable products for the sole purpose of sale in other states is not prohibited.

(b) This section shall become inoperative and is repealed on the effective date of a measure passed by the Legislature that establishes a tax on inhalable products and states the intent of the Legislature to fulfill the requirements of this section.

Caution - Raw hemp extract industrial hemp products which require refrigeration for safety are NOT allowed.

Also, you may NOT include industrial hemp in an alcoholic beverage, a product containing nicotine or tobacco, medical devices, or prescription or nonprescription drugs.

What do I need before I can sell my industrial hemp product in California?

Currently, AB 45 requires a certificate of analysis from an independent testing laboratory that confirms:

The industrial hemp raw extract, in its final form, does not exceed THC concentration of an amount determined allowable by the Department in regulation, or the mass of the industrial hemp extract used in the final form product does not exceed a THC concentration of 0.3 percent.

The industrial hemp product was tested for any hemp derivatives identified on the product label or in associated advertising following Section 111926.2.

The industrial hemp product was produced from industrial hemp grown in compliance with Division 24 (commencing with Section 81000) of the Food and Agricultural Code if sourced from within California, or licensed in accordance with United States Department of Agriculture (USDA) requirements if sourced from outside the state.

Can I make industrial hemp products from my home?

No. industrial hemp products must be made at a suitable, commercial location.

Will my facility be inspected by CDPH?

The CDPH will review your application and determine if a pre-registration, onsite inspection is necessary to protect public health and ensure compliance with applicable statutes.

The California Health and Safety Code grants the CDPH the authority to enter and inspect any establishment engaged in any covered activity, such as manufacturing, packing, or holding foods, drugs, medical devices, or cosmetics.

Additionally, AB 45 specifies that CDPH may inspect financial data, sales data, and personnel data.

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Award 2020 Wolfgang Kovach, Esq., Medicinal & Adult Use Cannabis, Business, selected for the 2020 Edition of California Top Attorneys 2020©
Award 2020 Wolfgang Kovach, Esq., Medicinal & Adult Use Cannabis, Business, selected for the 2020 Edition of California Top Attorneys 2020©
Award 2018 Wolfgang Kovach, Esq., Medicinal & Adult Use Cannabis, Business, selected for the 2019 Edition of Best 2018 Laguna Niguel©
Award 2018 Wolfgang Kovach, Esq., Medicinal & Adult Use Cannabis, Business, selected for the 2019 Edition of Best 2018 Laguna Niguel©