CBD Flower Banned Under New York Hemp Industry Bill
The New York State Department of Health has released draft rules for the state's hemp industry that would ban floral CBD products and require licenses for all segments of the supply chain in the state. hemp and cannabidiol.
New York's proposed new hemp regulations would ban the sale of CBD flowers while requiring licensing for all segments of the supply chain regulated by the departments of health and agriculture.
The proposal includes tracking requirements from seed to sale, potency and safety standards, random testing at all stages of production, and regulations for food infusions and CBD drinks. The regulations would not allow infused alcohol or transdermal patches.
The rules, drafted by the health ministry, would impose an application fee of between $ 500 and $ 1000 for processors as well as licensing fees of between $ 2000 and $ 4500 depending on whether or not the licensee extracts CBD in addition to the manufacture of the product. Retailers are expected to pay a license fee of $ 300 for each site, according to the draft regulations.
In the proposal, the health ministry says state regulations are needed since the Food and Drug Administration " is just beginning the regulatory process And "therefore, there are currently no federal standards for cannabinoid hemp processors or cannabinoid hemp retailers." The rules would require the state's cannabinoid processors to adhere to third-party good manufacturing practices within six months of approval of the application.
“Due to the confusion over the regulatory status of cannabinoid hemp products at the federal level, the products were left in unregulated status. This regulation is intended to bring cannabinoid hemp products up to par with other standards already developed in similar industries and is not intended to disadvantage small businesses. Many operators in the hemp industry are looking for regulations to legitimize and standardize the neophyte industry ”.New York State Department of Health in Draft Rules
The Department of Health says in the document that the proposed regulations include recommendations from the New York Cannabis Grower and Processor Association and other unnamed industry stakeholders.
Allan Gandelman, president of the association, told the Observer-Dispatch that he shared "the frustration of [NYCGPA] members and hundreds of growers across the state who have spent significant resources to harvest their crops. harvest… that the hemp flower will not be authorized for sale ”.
The rules, which have yet to be adopted, come just two months after state Agriculture Commissioner Richard Ball said the state would not submit an industrial hemp plan to the US Department of agriculture for the 2021 growing season due to "unrealistic" federal regulations.
Guaranteed compliance with minimum power and safety standards
New regulations proposed in New York will ensure consumers that CBD products made and sold in the state meet minimum standards for potency and safety while paving the way for hemp-infused foods and drinks.
The long-awaited rules have been widely praised by the industry, but include a glaring omission that has raised objections from producers and processors trying to revitalize a business stuck in neutral after once-big growth projections.
Among the prohibitions contained in 63 pages of recently published rules, it There is a ban on the sale of flowers from the non-psychoactive form of the cannabis plant. The smokable form is among the most popular items in the nascent CBD market, and the ban cuts a potentially lucrative avenue for producers.
Cannabinoids, the byproduct of the low THC derivative of the cannabis plant, have been touted for their potential to relieve several illnesses, including anxiety and chronic pain, among other afflictions, although science has l support for the allegations remains elusive.
But based on anecdotal evidence, some products containing CBD have found a loyal following among consumers.
“These (regulations) are fantastic guardrails for safety and quality assurance because they enforce good manufacturing practices,” said Joy Beckerman, owner and founder of Hemp Ace International, an expert witness and a legal consultancy firm.
New York regulations attempt to restore order in a market where product standards are lacking, and consumers have little assurance that the product on the shelf meets the information on the label. The rules finally provide the industry with a more definitive path to commercialize industrial hemp.
“A lot of consumers didn't know what they weren't told,” said MP Donna Lupardo, D-Endwell, who heads the Assembly's Agriculture Committee and has spearheaded the country's development efforts. hemp industry in New York for six years.
Under the rules currently being considered, all aspects of the hemp supply chain would be licensed and regulated under the auspices of the State Department of Health and the Department of Agriculture and Markets.
The merchandise on the shelves would be covered by strict labeling codes that will allow the origin of the product to be traced from the field to the store.
New regulations aim for quality control
State regulations note that there has been a "rapid increase" in the use of cannabinoid hemp products and note that the federal government has not implemented its own regulatory system.
"In this absence, unscrupulous players have entered the market and sold cannabinoid hemp products that do not meet quality control standards common in the established supplement, food and cannabis industries," says regulations.
Reports of cannabinoid hemp products that do not contain any cannabinoids or are contaminated with harmful toxins and pesticides are common.
Random testing at all stages of production by Department of Health inspectors would be permitted under the proposed New York regulations. The authorization to produce CBD-infused foods and drinks, within certain limits, has been widely applauded by the industry.
The move will allow for the production of water, seltzer, gummy candies, chocolates, teas, juices and even items such as granola and bread infused with hemp extract. No alcoholic product or transdermal patch will be authorized.
New York sets the standard
By establishing strict regulations, New York City hopes to set the standard in the future, Lupardo said, establishing the state as a leader in the hemp industry, allowing products from local growers to be considered among the best. of the market.
Lupardo said detailed rules issued by the health department should give the industry a much needed boost, encouraging a host of start-ups to prepare, generating a new source of jobs in the north. New York State.
“You're going to see market stabilization and then you're going to see growth,” Lupardo predicted.
Flower ban sparks criticism
In accordance with federal rules, New York will require all products to contain less than 0,3% THC, the substance responsible for feelings of euphoria after consuming marijuana or other cannabis-infused products.
Industry officials have been left looking for a rationale for the flower ban, saying it seemed counterintuitive given that New York should move towards adopting adult marijuana on the way. next year.
In the adult market, flower products are among the most popular products.
“I share the frustration of our members and the hundreds of growers across the state who have spent significant resources to harvest their crop this year that the hemp flower will not be permitted for sale,” said Allan Gandelman, president of the New York Cannabis Growers & Processors Association.
The federal government removed the non-psychoactive variant from the list of controlled substances at the end of 2018 as part of the Farm Bill update. New York has allowed industrial cultivation of hemp as part of an experimental program since 2015.
Comments on the new regulations will be accepted by the Department of Health from November 10, 2020 to January 11, 2021, meaning they could come into effect early next year, after revisions and more public notification. .