Liquor License: Can you sell CBD?

In California, store owners that sell alcohol are often unsure if they can also sell smokeable CBD products like Agua Dulce Organics prerolls and flower. We took a look at the law ourselves and what we found is interesting.

First, let’s look at the law itself.

Cannabis & Alcohol

25621.5. (a) A licensee shall not, at its licensed premises, sell, offer, or provide cannabis or cannabis products, as defined in Section 26001 (see below), including an alcoholic beverage that contains cannabis or a cannabis product, and no alcoholic beverage shall be manufactured, sold, or offered for sale if it contains tetrahydrocannabinol or cannabinoids, regardless of source.

SOURCE

On first read it appears that you are not allowed to sell it, but it refers to CBD “as defined in Section 26001.” Let’s take a look at 26001.

SECTION 26001

(f) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.

SOURCE

Interesting! Section 26001 clearly states that “cannabis does not mean industrial hemp as defined by Section 11018.5.” Let’s take a look at 11018.5.

HEALTH AND SAFETY CODE – HSCDIVISION 10. UNIFORM CONTROLLED SUBSTANCES ACT [11000 – 11651]

11018.5.  (a) “Industrial hemp” means a crop that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of 1 percent tetrahydrocannabinol (THC) contained in the dried flowering tops, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom.

(b) Industrial hemp shall not be subject to the provisions of this division or of Division 10 (commencing with Section 26000) of the Business and Professions Code, but instead shall be regulated by the Department of Food and Agriculture in accordance with the provisions of Division 24 (commencing with Section 81000) of the Food and Agricultural Code, inclusive. (Amended by Stats. 2018, Ch. 986, Sec. 8. (SB 1409) Effective January 1, 2019. Note: This section was amended on Nov. 8, 2016, by initiative Prop. 64.)

SOURCE

FOOD AND AGRICULTURAL COD FAC. DIVISION 24 INDUSTRIAL HEMP [81000 – 81015]

(6) “Industrial hemp” or “Hemp” means an agricultural product, whether growing or not, that is limited to types of the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, the resin extracted from any part of the plant, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis.

(9) “THC” means delta-9 tetrahydrocannabinol.

SOURCE

What do you know, “industrial hemp” is a crop that has no more than three-tenths of 1 percent THC. Agua Dulce Organics prerolls and flower fall under this category having <0.3% delta 9 THC. Therefore from these three excerpts it *seems to us that a store owner that sells alcohol can also sell our products.

*As always we recommend that you consult your legal team before making important decisions.

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