
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: December 7, 2020

Partner
201-896-7115 dmckillop@sh-law.com
On October 28, 2020, the New York Department of Health (DOH) filed its much-anticipated proposed regulations to regulate cannabinoid hemp products. The newly-established Cannabinoid Hemp Program will license both cannabinoid hemp processors and retailers and set quality control standards that all cannabinoid hemp products must meet.
“These regulations are the next step toward regulating the growing hemp industry in New York in a way that protects consumers and helps ensure the industry’s long-term viability,” Gov. Andrew Cuomo said in a press statement. “Establishing the State’s Cannabinoid Hemp Program to regulate production and sale of hemp and hemp extract will help protect both consumers and farmers.”
While the 2018 Farm Bill legalized industrial hemp, federal regulations governing the processing and manufacturing of cannabinoid hemp products have not yet been established. New York’s proposed regulations define a number of key terms, including “cannabinoid hemp product,” “cannabinoid hemp processor,” “cannabinoid hemp retailer,” “hemp extract,” and “used for human consumption.” Notably, the DOH broadly defines the term “cannabinoid” as:
any phytocannabinoid found in hemp, including but not limited to, Tetrahydrocannabinol (THC), tetrahydrocannabinolic acid (THCA), cannabidiol (CBD), cannabidiolic acid (CBDA), cannabinol (CBN), cannabigerol (CBG), cannabichromene (CBC), cannabicyclol (CBL), cannabivarin (CBV), tetrahydrocannabivarin (THCV), cannabidivarin (CBDV), cannabichromevarin (CBCV), cannabigerovarin (CBGV), cannabigerol monomethyl ether (CBGM), cannabielsoin (CBE), cannabicitran (CBT).
Under the regulations, any person extracting or manufacturing cannabinoid hemp in New York State is required to obtain a license from the DOH. Among other requirements, cannabinoid hemp processor applications must be accompanied by a summary and description of the products the applicant intends to make, proof of product liability insurance, evidence of good manufacturing practices, and copies of the organizational documents of the applicant. Cannabinoid hemp processor applications must be submitted with a $1,000 application fee or a $500 application fee for applicants seeking only to manufacture, and not extract cannabinoid hemp.
If an applicant is approved as a cannabinoid hemp processor, the applicant must submit the following before receiving the final license: a copy of the certificate of occupancy for the facility, a copy of the applicant’s evidence of a Good Manufacturing Practices (GMP) audit, and the license fee of $4,500 for extracting or $2,000 for manufacturing only.
The proposed regulations require any person selling cannabinoid hemp to consumers to obtain a license from the Department. Among other requirements, cannabinoid hemp retail applications must be accompanied by a summary and description of the type of cannabinoid hemp products the retailer intends to sell, the name and state or country of origin of any manufacturers the retailer intends to source from, an attestation that the applicant will not sell inhalable cannabinoid hemp products to consumers under 21 years old, and proof of a certificate of authority from the Department of Taxation and Finance. All applications must be submitted with a $300 license fee for each retail location to be licensed by the Department.
The DOH regulations also establish basic manufacturing, packaging and labeling and laboratory testing standards. Below are a few highlights:
The DOH’s hemp regulations establish a comprehensive regulatory framework for CBD and other hemp products, addressing many issues that have previously been left unaddressed by state and federal agencies. Businesses interested in entering New York’s hemp industry should review the regulations thoroughly. According to the DOH, applications for cannabinoid hemp processing and retailing licenses are under development and should be available in early 2021.
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
This article is a part of a series pertaining to cannabis legalization in New Jersey and the United States at large. Prior articles in this series are below:
Disclaimer: Possession, use, distribution, and/or sale of cannabis is a Federal crime and is subject to related Federal policy. Legal advice provided by Scarinci Hollenbeck, LLC is designed to counsel clients regarding the validity, scope, meaning, and application of existing and/or proposed cannabis law. Scarinci Hollenbeck, LLC will not provide assistance in circumventing Federal or state cannabis law or policy, and advice provided by our office should not be construed as such.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga

For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan

Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe

In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer

Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel

For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!