New York is establishing protocol for manufacturing and selling CBD products, but the new hemp bill comes with tough restrictions.
State governor Andrew Cuomo hopes the new law will keep unlicensed and regulated CBD products away from consumers. He will also host a “hemp summit” in January to address other hemp-related concerns.
“The hemp industry in New York is exploding. With that growth comes a responsibility to regulate the industry in a way that helps ensure its long-term viability and protects consumers,” Cuomo says in a statement.
Growers, processors processors and sellers must obtain a license through the New York Department of Agriculture. They must also use third-party lab testing for their products and report all results to the department. Retailers, manufacturers and wholesalers will need to obtain a permit to sell CBD products.
Additionally, New York-based hemp companies may only use state-grown hemp. The new law also forbids CBD labels from containing language around specific health claims.
Lastly, the law requires the creation of a “New York State Industrial Hemp and Hemp Extract Workgroup”. The group will be tasked with making program recommendations, developing policy initiatives and creating new ways to promote industrial hemp. It will be comprised of researchers, processors, producers and other key players in the hemp industry.
CBD In Food & Beverages
However, the new law does not address the sale of food and beverage products containing CBD. An initial provision permitting beverages to contain up to 20 milligrams of CBD is not part of the signed law.
New York placed a ban earlier this year on selling food and beverages containing CBD. Health inspectors are issuing violations around the new law as of October. Businesses that fail to comply will receive fines ranging from $200-650 and have the items confiscated. Despite this, many state residents report that establishments in their neighborhood continue to sell these products.