CBD News Roundup: New York Hemp Industry Draft Regulations Bans CBD Flower

Here’s the latest CBD news:

• The New York Health Department’s new draft rules for the state’s hemp industry would effectively ban CBD flower products as well as require licensing for all segments of the hemp and CBD supply chain.
• Two New Zealand farmers have been threatened with a $100,000 fine and a loss of their hemp license for selling products containing CBD.

New York Hemp Industry Draft Regulations Bans CBD Flower

New hemp regulations proposed by the New York Health Department plan to ban the sale of CBD flower.

In addition, New York’s new proposed hemp rules will also require licensing for all segments of the supply chain to be regulated by the health and agriculture departments. This includes tracking requirements from seed to sale, potency and safety standards, and testing to be conducted at random through all stages of production.

The rules also propose regulations for CBD food and drink infusions, including a ban on CBD-infused alcohol or transdermal patches.

New fees will also apply as the draft rules will implement application and license fees for hemp processors. There will be application fees between $500 and $1,000 as well as license fees between $2,000 and $4,000. 

The actual fee depends on whether or not the licensee will extract CBD in addition to manufacturing products. There is also a $300 license fee per location for retailers. Cannabinoid processors would also be required to meet third-party good manufacturing practices within six months of application approval. 

According to the Health Department, these rules are necessary since the US Food and Drug Administration (FDA) “is just beginning the rulemaking process” and “therefore, there are currently no federal standards for cannabinoid hemp processors or cannabinoid hemp retailers.” 

In the draft rules, the Health Department states: 

“Due to the confusion of the regulatory status of cannabinoid hemp products at the federal level, products have been left in an unregulated status. These regulations are intended to bring cannabinoid hemp products on par with other standards already developed in similar industries and is not meant to disadvantage small businesses. Many operators in the hemp industry are looking for regulations to legitimatize and standardize the neophyte industry.”

Allan Gandelman, president of the New York Cannabis Grower and Processor Association (NYCGPA), said he shares “in the frustration of [NYCGPA] members and the hundreds of growers throughout the state who have spent significant resources in harvesting their crop…that hemp flower will not be allowed for sale.”

New Zealand Authorities Crack Down On Illegal CBD Sales

New Zealand authorities have threatened two hemp farmers with a $100,000 fine and a loss of hemp license for selling products containing cannabidiol. In New Zealand, cannabidiol is only permitted in prescription medications. 

The warnings, issued by New Zealand medical regulatory body, Medsafe, were sent to hemp growers Sarah Gibson and Aaron Silcock over their EPIK Daily Drops and EPIK Hemp Balm products. The farmers claim to have been selling the products for a year without issue. 

But according to Medsafe, the couple has made therapeutic claims about their products, which violates New Zealand law, where CBD is defined as a scheduled ingredient and prescription medicine. The law bans the sale or advertising of unapproved medicines. 

Gibson argues the products themselves make no such claims but instead were given by customers who had left reviews.

“We have sold these products for a year with absolutely no negative feedback,” said Gibson. “I don’t understand it.”