New Hemp/CBD Regulations

New Hemp Regulations Signed into Law

On December 10th Governor Cuomo signed bill S6184-A into law. The bill includes significant changes to the regulation of hemp and hemp extracts in the state. The bill was sponsored by State Senator Jennifer Metzger and Assemblymember Donna Lupardo.

Currently, only three types of licenses regarding hemp are available under the state’s hemp research pilot program. There are licenses for (1) Growing, (2) Processing for CBD purposes and (3) Processing for non-CBD purposes. The research pilot program will remain in place, but will also be subject to the same regulations as hemp for non-research purposes. The new bill creates licenses for growing, manufacturing, and extracting hemp. The extractor license is the broadest and allows licensees to procure, possess, manufacture, and extract hemp for human or animal use. The law aims to improve consumer safety by requiring anyone who produces cannabinoid products for human or animal consumption or use to be licensed with the state.

Other notable changes include permits needed by retailers, wholesalers, and distributors to sell cannabinoid extracts. The “Cannabinoid Permit” requirement is likely to eliminate the sale of hemp extracts at gas stations, bodegas, and other retailers (like family video) that currently operate with little to no oversight.

The bill also sets the limit for CBD in beverages at 20 milligrams per 12 fluid ounces and requires that hemp extract included in beverages be grown and produced in New York. Additional regulations prohibit the sale of out-of-state hemp extracts unless they meet NY’s regulatory requirements.

Labeling requirements have also changed. A QR code providing information on serving size, concentration, and region of origin is now required. Labels shall include a supplement facts panel if applicable and must avoid making claims regarding the treatment, cure, or prevention of disease.

The bill also requires the establishment of an industrial hemp and hemp extract workgroup to make recommendations for the program, develop policy, and foster the growth of the industrial hemp market.

The new law goes into effect March of 2020.