Cannabis Control Board Approves Additional Cannabinoid Hemp Program Regulations

The New York State Cannabis Control Board today approved 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.

“We are building a new, cannabis industry ecosystem in New York State that protects public health and creates opportunity,” said Cannabis Control Board Chair Tremaine Wright. “These regulations sent for public comment today build on the success we’ve already had in our first two months as we’ve formally launched the Cannabinoid Hemp Program and vastly expanded access to the Medical Cannabis Program. With these updates to the Cannabinoid Hemp Program, we are further supporting our businesses in their ability to compete with those from other states while enhancing protections for public health, a critical component of ensuring stability in the industry.”

“The proposed regulations we are releasing for public comment today will enable our hemp farmers to grow their businesses by processing their own flower, and will also establish a clear definition of “craft” for labeling and marketing purposes, which will empower consumers to make informed choices while supporting sustainable small businesses,” said Board Member Jen Metzger, who chaired the Agriculture Committee when she served in the State Senate and sponsored the original Cannabinoid Hemp Program legislation in 2019. “We look forward to continuing to work with the hemp industry to grow responsibly, safely, and sustainably, delivering the highest quality products to this competitive market.”

“We are thrilled to have the Board’s approval for these additional regulations for the Cannabinoid Hemp Program and we look forward to hearing the public’s comments,” said OCM Executive Director Chris Alexander. “By bringing our regulations in-line with those in other states, we are helping New York’s businesses grow and compete while continuing to ensure New Yorkers know they’re buying safe, tested products.”

“I’d like to thank the Cannabis Control Board for taking up these important updates to our Cannabinoid Hemp Program,” said Assemblymember Donna Lupardo. “I appreciate their willingness to consider suggestions that have come from those working in the industry. I am pleased that New York continues to be a model for consumer safety and business competitiveness in the cannabinoid space.”

The following additions and updates to the Cannabinoid Hemp Program were approved by the Cannabis Control Board today, sending them to a 60-day public comment period:

• 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 well as addressing impairing cannabinoid analogues (such as delta-8 tetrahydrocannabinol) under the future adult-use regulatory framework.

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.

The Executive Director also provided the following update to the Board:

Local Opt-outs:

The MRTA enacted in March gives cities, towns, and villages until December 31, 2021 to pass a local law that makes a request to the state Cannabis Control Board to opt their jurisdiction out of hosting retail and/or on-site cannabis consumption licensees. Localities that opt-out by December 31, 2021, can always opt back in. Municipalities cannot otherwise prohibit other conduct made legal with the passage of the MRTA, including cannabis possession and use by adults over the age of 21.

The OCM opened (LINK) a web-based portal last month through which localities seeking to opt-out of hosting cannabis retail dispensary and/or on-site cannabis consumption licensees within their jurisdictions can easily and quickly send their requests to the state Cannabis Control Board. As of December 10, localities have filed the below with the OCM, opting out of retail dispensaries, on-site consumption facilities, or both:

“The MRTA provides localities with the ability to determine if they want to host dispensaries or on-site consumption sites,” said OCM Executive Director Chris Alexander. “We are building a safe, regulated cannabis industry ecosystem that will protect public health and create opportunity, and we remind those localities that have opted-out that they can always opt back in.”