If you intend to sell or distribute hemp, hemp extracts, or cannabidiol (CBD) products, you must comply with New York’s laws about retail and distribution. Failure to get the proper licenses, sell illegal items, and improperly label products can lead to fines and other penalties. Below, learn more about New York’s Cannabinoid Hemp Program. This blog post is not all-encompassing, but rather an overview of the program.
Cannabinoid Hemp Retail License & Distributor Permit
Depending on your exact business structure, you will need a Cannabinoid Hemp Retail License and/or a Cannabinoid Hemp Distributor Permits. New York retailers—brick and mortar and internet—that sell CBD products for human consumption or topical application need a retail license. If your business is located in a different state, but you distribute CBD products wholesale to licensed New York retailers, you need a distributor permit. Permits and licenses cost $300 each, and they are good one year from their date of issue. If you have multiple retail locations, you need to have a retail license for each location.
Hemp and CBD Products Legal to Sell
New York considers cannabinoid hemp as any product processed or derived from the hemp plant, a strain of the cannabis plant. With proper licensing, you can sell and distribute cannabinoid hemp products for human consumption and topical application as long as they fall under the 0.3% THC limit established under the 2018 Farm Bill. In general, cannabinoid foods and beverages cannot have more than 25 milligrams (mg) per serving, and dietary supplements are limited to 3,000 mg.
CBD products are the most common cannabinoid hemp products. People can consume or use CBD in various ways because CBD oil is found in many products. Examples include:
- Pills and capsules
- Lotions and balms
- Edibles, such as chocolate, gummies, and mints
- Vape cartridges
Hemp seed oil and hemp seeds typically do not contain CBD or other cannabinoids. Therefore, they are regulated by the FDA and do not fall under New York’s Cannabinoid Hemp Program.
Additionally, retailers and distributors cannot sell hemp-flower or pre-rolled hemp cigarettes. However, New York recently passed the Cannabis Regulation and Taxation Act, which may change that.
Businesses who manufacture, sell, or distribute cannabinoid hemp products must test to ensure the correct amounts listed above. Additionally, the laws provide room for 10 percent error. Products cannot contain less than 90 percent or more than 110 percent of the cannabinoid content listed on the label. Testing must also show that cannabinoid hemp products do not contain alcohol, tobacco, or nicotine.
Under New York’s Cannabinoid Hemp Program, manufacturers must follow strict packaging and labeling requirements. Retailers and distributors need to ensure they carry products that follow the rules to avoid penalties and potential litigation. The requirements vary based on the product, but here are some general guidelines:
Supplements must include labels that show the number of servings and include the following information:
- A full ingredient list based on weight that includes any cannabinoids over 0.05%
- The amount of THC, CBD, or other cannabinoids in mg per serving and total content per package
- Expiration date
- Batch number or lot number
- Name of processor or manufacturer
- QR code for a certificate of analysis (COA)
- Source location of hemp used in product
- Contact information for side effects or other emergencies
All Cannabinoid Hemp Products
Other packaging and labeling requirements for all products include:
- A measuring device for products that do not come individually wrapped
- Packaging that easily shows proof of tampering without too much light exposure
- Recommended dosage and instructions
Warnings for All Cannabinoid Hemp Products
All products must include the following warnings:
- Keep out of the reach of children.
- This product might contain THC and cause the failure of a drug test for marijuana use.
- The FDA has not evaluated this product.
- Pregnant and nursing women should consult with their doctor before use.
- Smoking or vaping is hazardous to your health for products that consumers inhale.
Contact the Law Office of Elliot J. Brown to learn more about the legal requirements of selling or distributing cannabinoid hemp products in New York.