Cannabinoid Hemp Product Requirements to be Sold at Retail

Back in October, Governor Cuomo announced proposed regulations for cannabinoid hemp products. Per legislation signed earlier this year by Governor Cuomo, the New York State Department of Health is creating a Cannabinoid Hemp Program. The program intends to license cannabinoid hemp processors and retailers and set quality control standards for all cannabinoid hemp products.

 

Hemp retail products

Under these regulations, there are multiple sections. This article will discuss Section 1005.8, which outlines the cannabinoid hemp product requirements to be sold at retail.

Now the real question, what restrictions does Section 1005.8 bring to cannabinoid hemp product retailers?

  1. Prohibits injectable, transdermal patch, inhaler, suppository and smokable flower.
    1. NOTE: this does not include vaping as there is a specific carve out in Sec 1005.8(10)(d) with requirements for ‘All inhalable cannabinoid hemp products’, which references requirements for vaping devices and cartridges
  2. In a reversal from previous regulations from the NY Dept of Agriculture and Markets, which deemed CBD added to food or drink to be illegal, Section 1005.8 expressly permits consumables, both food and beverage
    1. Previous regulations were a confusing area for many retailers as the enforcement was not consistent, and CBD food and drink products were widely available even though the Dept of Agriculture & Markets was cracking down and pulling some products from the market
    2. Specific example ā€“ Beak & Skiff Orchards produced a CBD Cold Brew, and the Dept of Agriculture & Markets forced them to pull the product; the new regs will allow them to bring it back to store shelves.
  3. All products must be prepackaged and not added to consumable products at the point of sale.
    1. Unfortunately, this can make it difficult for retailers to ensure that the products are in line with THC content, total cannabinoid content percentage and lab testing requirements as outlined in section 1005.8 and 1005.10
    2. Shuts the door for coffee shops, restaurants, bars, etc., to offer CBD infused products. Onsite consumption has the potential to be a large market, so we will see if this lasts.

It is not surprising that New York State is making efforts to regulate cannabinoid hemp products. With the legalization of cannabis looming in New York State, we also anticipate heavy regulations within that market. Regulations are not only a way for the government to control the health and safety of others, but also to make money when a business veers off course. As we all know, New York State is hurting for cash right now, so our best advice… follow the rules.

If you need help understanding any of the new regulations and how to set your business up for success, please contact a member of our cannabis and hemp services team today.