the New York one proposed cannabinoid hemp regulations are a big problem for the approximately 700 hemp growers in the state and for the entire cannabis industry. This article will explain how we got here, what the regulations provide and what will happen next.
How New York Came Up With Proposed Cannabinoid Hemp Regulations
Over the past two months, the New York Cannabis Control Board (the “CCB”) and the Office of Cannabis Management (the “OCM”) have been busy implementing the state’s cannabinoid hemp program. (the “Program”). If you read this blog, you may remember that under the Marijuana Regulation and Taxation Act (the “MRTA”), the CCB is responsible for implementing the Cannabis Regulations (Adult Use Program and Cannabinoid Hemp Program) while the CMO is responsible for administering these regulations.
In October 2021the OCM took over the program, which was originally overseen by the Department of Health (the “DOH”).
Then, on December 16, 2021the CCB filed amendments to these regulations that “aim to create new value-added opportunities for farmers and enable New Yorkers to make informed choices in the CBD market.”
The Four Key Changes to the Proposed Cannabinoid Hemp Regulations
1. The establishment of a new category of license for “agricultural processors of cannabinoid hemp”.
This new type of license would allow the annual cultivation of up to 1,000 pounds of dried hemp from which the licensee could manufacture floral products. If adopted in their current form, the regulations would exempt applicants from showing that good manufacturing practices (GMP) would be used in the manufacture of floral products and from adopting GMP standards for the manufacture of these products.
2. The addition of a new definition for “artisanal” cannabinoid hemp products.
The term “craft” means “a cannabinoid hemp product made from hemp grown by a licensed hemp grower who grows less than 1,000 pounds of dried hemp per year and the hemp is hand-trimmed, hung-dried and if a cannabinoid hemp flower product is packaged by hand.
3. An increase in the acceptable THC concentration of the intermediate hemp extract.
If these proposed regulations were passed, licensed cannabinoid hemp processors would be allowed to possess and sell intermediate hemp extracts containing up to 5% THC – the current THC limit is currently capped at 3% .
4. Revisions to labeling and packaging requirements.
Proposed changes include:
- Removed the labeling requirement that the font size of information in the supplement or nutrition information panel must be larger than other information on the product label.
- Changed the cap per serving in milligrams (mg) for dietary supplements from 75 mg to 100 mg.
- Allowing out-of-state manufacturers to omit the label warning that the product may cause a consumer to fail a drug test if the product is made from hemp isolate or extract at broad spectrum.
- Removed the requirement that cannabinoid hemp products must be shelf stable.
Effects of New York’s Proposed Cannabinoid Hemp Regulations
So what do these proposed regulations mean for companies that currently manufacture and sell their cannabinoid hemp products in New York? Above all, these companies must continue to ensure compliance with existing rules, which include specific manufacturing, testing, labeling and packaging requirements. Second, they should keep an eye on the rule-making process, where permanent rules will eventually be issued. And third, if hemp companies challenge any of the proposed regulations, those stakeholders should take advantage of the public comment period. During this time, stakeholders will be allowed to bring their concerns to the CCB and attempt to influence its final version.
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