DECEMBER 15, 2021 Office of Cannabis Management Announces Additional Cannabinoid Hemp Regulations Delivered to Cannabis Control Board for Consideration

Board Will Consider Additional Regulations at its December 16 Meeting

Additional Regulations Build on Those Finalized by the Board Nov. 3 that Established Standards, Protecting Public Health and Providing Industry Clarity
Newest Regulations Enhance Product Safety and Support Industry Growth in New York State

The New York State Office of Cannabis Management (OCM) today announced it has delivered to the Cannabis Control Board (Board) for its consideration additional regulations for the Cannabinoid Hemp Program that enhance safety for New Yorkers and help the industry grow in New York.

The Board will consider the additional regulations at its December 16, 2021 meeting. If approved by the Board, the regulations will be posted for a 60-day public comment period. The regulations build on those finalized for the program by the Board on November 3, officially launching the Cannabinoid Hemp Program in New York State., and were also discussed briefly at that meeting.  Last month, the OCM opened an enhanced portal for license applications for the program.

“These additional Cannabinoid Hemp Program regulations are the latest step in the evolution of the cannabis industry ecosystem we are building in New York State and I look forward to considering these with my colleagues on the Board at our next meeting,” said Cannabis Control Board Chair Tremaine Wright. “Ensuring New Yorkers know they are purchasing safe, tested products while providing the industry with the tools to compete and grow is critical to its long-term success.”

“I am excited about the proposed hemp regulations on our agenda, and particularly the role they could play in supporting our farmers and a thriving New York craft industry,” said Board Member Jen Metzger, who chaired the Agriculture Committee when she served in the State Senate and sponsored the original Cannabinoid Hemp Program Bill in 2019. “A new ‘hemp farm processor’ license, together with state-of-origin labeling requirements and a clear definition of ‘craft’ hemp products, could expand value-added opportunities for farmers and empower consumers to make informed choices in the CBD marketplace.”

“The team at the Office of Cannabis Management is working hard to build a new, safe cannabis industry in New York State and we are excited to deliver these additional Cannabinoid Hemp Regulations to the Board for its consideration,” said OCM Executive Director Chris Alexander. “These proposed changes are designed to help bring the program in-line with the regulatory structure in other states, continue to provide New Yorkers with safe products, and keep our businesses competitive in a rapidly expanding marketplace.”

The following additions and updates to the Cannabinoid Hemp Program were delivered to the Board for its consideration:

  • Requires labels to include the state or country of origin from which the hemp used in the product was sourced, providing clarity in the market and the opportunity for consumers to choose New York State derived products.
  • Add a definition for “craft” cannabinoid hemp products to provide clarity in the market and support small craft farmers.
  • Establish a new license type for “Cannabinoid Hemp Farm-Processors” to allow minimal processing activities for only flower and flower sales for hemp grown by the licensee, and supporting farmers. Details:
    • The application fee would be $100 and the license fee $300.
    • License is valid for two years.
    • Testing and packaging/labeling requirements for processing apply, however they are exempt from obtaining a third-party Good Manufacturing Practices facility audit as part of the application process, providing an easier path to manufacturing for New York’s hemp farmers.
  • Remove the labeling requirement that the font size of information in the supplement or nutritional fact panel be larger than other information on the product label, making New York’s labels consistent with those used in other states.
  • Remove the requirement that cannabinoid hemp products be shelf stable, allowing for certain types of foods and beverages infused with cannabinoids.
  • Allow 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 manufactured using isolate or broad-spectrum hemp extract as defined in the regulation as these products do not contain detectable levels of THC.
  • Change the per serving milligram (mg) cap for dietary supplement cannabinoid hemp products from 75 mg to 100 mg to better align with products in the market.
  • Increase the acceptable THC concentration of intermediary hemp extract from 3% THC to 5% THC, conforming with practices in other states.

OCM’s Cannabinoid Hemp Program is designed to comprehensively regulate cannabinoid hemp products, commonly referred to as “CBD products,” in New York State by establishing consumer protections and quality control standards for the manufacturing, packaging, labeling, and laboratory testing of cannabinoid products. The Marijuana Regulation and Taxation Act charges the OCM with implementing the program, which includes engaging in broad public education on these products and enforcing the prohibition on sub-standard products or disallowed forms of cannabinoid hemp products in the marketplace.

As part of the new Cannabinoid Hemp Program, businesses selling cannabinoid hemp products are required to obtain a Cannabinoid Hemp Retail License from the OCM before selling cannabinoid hemp products to consumers. Cannabinoid hemp products include many cannabidiol or “CBD” products available for purchase today, including tinctures, oils, topicals, pills, capsules and food or beverages that are intended for human consumption or application.

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