MRTA Article 5, Sections 90–99
New York regulates cannabinoid hemp separately from adult-use cannabis. If you manufacture, process, package, or sell hemp-derived products intended for human consumption, you must hold a hemp license under Article 5, even if you already hold an adult-use cannabis license under Article 4.
This section explains who needs a hemp license, what license types exist, how applications are reviewed, and how long licenses last.
This section defines the terms that determine whether a product falls under Article 5.
Hemp
Cannabis sativa L. containing no more than 0.3 percent delta-9 THC by dry weight.
Hemp extract
Cannabinoids derived from hemp, including CBD, CBG, CBN, trace THC, and similar compounds, when intended for human consumption.
Cannabinoid hemp
Hemp-derived products meant to be eaten, inhaled, or applied to the skin.
If a product exceeds the THC limit or is intended for adult-use cannabis consumption, it is regulated under a different article of law.
This section authorizes the Cannabis Control Board to adopt detailed regulations governing hemp processors and retailers.
The Board may establish requirements related to:
Operators must comply with both the statute and all regulations adopted under this authority, even if specific requirements are not listed directly in Article 5.
A processor license is required if you manufacture or produce hemp-derived products for human consumption.
This includes:
Processors must meet facility standards, testing requirements, THC limits, and documentation rules. Operating without a processor license is a violation.
A retailer license is required to sell hemp-derived products directly to consumers.
This applies to:
All inventory must be compliant, tested, and properly labeled. A cannabis retail license issued under Article 4 does not replace or cover this hemp license.
This section explains how to apply for a hemp processor or retailer license.
Applications must include:
Submitting incomplete or premature applications increases the likelihood of denial.
Applicants must provide detailed disclosures, including:
Missing, inaccurate, or misleading information may result in denial or future enforcement action.
This section establishes required application and license fees.
Retailer license
$300 per location, valid for one year
Processor license (manufacturing only)
$500 application fee
$1,000 license fee
Valid for two years
Processor license (extraction and manufacturing)
$1,000 application fee
$3,500 license fee
Valid for two years
All fees are non-refundable.
OCM evaluates hemp license applications based on:
Licensing is not first-come, first-served. Stronger, more complete applications are more likely to be approved.
Retail licenses must be renewed annually. Processor licenses must be renewed every two years.
Renewal requires:
OCM may deny renewal if an operator has a history of violations.
This section defines the required content of a hemp license.
A license will state:
Licenses must be displayed at the licensed premises. A hemp license cannot be transferred, loaned, or used to cover unlicensed locations.
Do I need a license to sell CBD?
Yes. A cannabinoid hemp retailer license is required.
Can I use my adult-use cannabis license instead?
No. Hemp is regulated separately under Article 5.
How much does it cost?
$300 per retail location. Processor licenses range from $500 to $3,500.
How long is a hemp license valid?
Retail licenses last one year. Processor licenses last two years.
What testing is required?
All hemp products must be tested by a licensed laboratory for potency and contaminants.
What happens if I sell without a license?
Penalties may include fines, shutdowns, or loss of eligibility for future licenses.
