California AB 8 Changes Effective January 1, 2026: Breaking Down Legislative Changes Coming in the New Year

California’s AB 8 was signed into law in September 2025 and becomes partially effective on January 1, 2026. We highlight those changes below and how they could impact your business.

Restrictions for Tobacco Retailers: No Cannabis or Hemp on Site

A key update to Section 22980.6 of the Business and Professions Code prohibits anyone engaged in the business of selling cigarettes or tobacco products in California from possessing, storing, owning, or selling cannabis, cannabis products, or presumed cannabis products at any location where tobacco products are stored or sold. Violations can result in civil penalties and the suspension or revocation of business licenses.

Even hemp products containing cannabinoids are presumed to be cannabis products unless the seller can show the product either complies with specific health and safety regulations or qualifies as industrial hemp as defined by the California Health and Safety Code.

Defining Concentrated Cannabis

The definition of “concentrated cannabis” is also evolving. Until January 1, 2026, it refers to the separated resin from cannabis. On January 1, 2026, and until January 1, 2028, that definition expands to include any cannabis that has undergone processes to concentrate cannabinoids—such as oils, hash, dabs, shatter, rosin, wax, and resins.

Industrial Hemp Regulations Get Stricter

Starting January 1, 2026, Section 111921.1 of the Health and Safety Code will require that industrial hemp raw extract meet two criteria in order to be used in food, beverages, or dietary supplements:

• The extract must be cannabidiol (CBD) or cannabinol (CBN) isolate with over 99% purity.
• It must not contain any tetrahydrocannabinols (THC) or synthetic cannabinoids.

This will likely impact many products currently regulated under the California Department of Public Health’s (CDPH) Industrial Hemp Enrollment and Oversight (IHEO) program. Effective 1/1/26, manufacturers must prove THC concentrations comply with CDPH regulations, though the CDPH was already enforcing those regulations on existing manufacturers of “final form food products” before AB 8. The CDPH limited a long list of “intoxicating” cannabinoids included in the definition of THC to a non-detectable standard back in 2024.

Conclusion

To our knowledge, the CDPH nor the California Department of Cannabis Control (DCC) have issued any updated rulemaking or guidance related to these new requirements taking effect in the new year, though many of these statutory changes are in an effort to catch up to existing state regulation. That said, reports indicate that the California Department of Tax and Fee Administration (CDTFA) published a notice announcing routine inspections of cigarette or tobacco product businesses in the state are not handling or retailing cannabis or cannabis products where cigarette or tobacco products are sold.

December 14, 2025

This article was written by Kight Law attorney Amber Lengacher. Kight Law represents hemp businesses in the US and throughout the world.