Oversight and Enforcement (Hemp)

MRTA Article 5, Sections 106–111

New York regulates cannabinoid hemp separately from adult-use cannabis, but hemp operators are still subject to inspections, enforcement actions, penalties, and license consequences. Compliance under Article 5 is mandatory and actively enforced.

This section explains what counts as a lawful hemp product, how violations are penalized, and how New York oversees hemp compliance statewide.

What This Covers

  • What qualifies as a New York hemp product
  • Enforcement authority and penalties
  • Prohibited activities under Article 5
  • Special permits for non-standard hemp activity
  • How enforcement actions affect licensing

New York Hemp Product (Section 106)

This section defines when a product may be labeled or marketed as a “New York Hemp Product.”

A product may only use this designation if it is:

  • Grown in New York
  • Processed and manufactured in New York
  • Compliant with all Article 5 standards
  • Produced, tested, and packaged under New York regulations

Using the term without meeting these requirements is a violation.

While the designation may offer a marketing advantage, it also subjects the operator to higher compliance expectations and enforcement scrutiny.

Penalties (Section 107)

This section authorizes the State to issue penalties for violations of hemp laws or regulations.

Violations may result in:

  • Monetary fines
  • License suspension
  • License revocation
  • Product seizure
  • Stop-sale orders

Repeated violations, failure to correct issues, or ignoring enforcement notices significantly increases enforcement risk. Compliance is a condition of holding a hemp license and maintaining eligibility for future licensure.

Hemp Workgroup (Section 108)

This section establishes a hemp workgroup to advise the Cannabis Control Board and OCM.

The workgroup provides guidance on:

  • Industry practices
  • Regulatory improvements
  • Emerging issues in hemp processing, testing, and sales

While advisory in nature, workgroup recommendations often inform future regulations. Operators should monitor these developments to anticipate compliance changes.

Prohibitions (Section 109)

This section lists activities that hemp operators are prohibited from engaging in.

Prohibited conduct includes:

  • Selling products that exceed legal THC limits
  • Mislabeling potency, ingredients, or product content
  • Selling disallowed product forms
  • Violating packaging, testing, or distribution requirements

Violations of these prohibitions are enforcement triggers and may result in immediate corrective or punitive action.

Special Use Permits (Section 110)

This section allows OCM to issue special permits for hemp-related activities that fall outside standard licensing categories.

Examples may include:

  • Event-based hemp retail
  • Temporary or limited processing activities
  • Certain non-standard distribution pathways

Special permits are narrow, time-limited, and subject to strict conditions. They do not replace standard licensing and may be revoked if conditions are violated.

Severability (Section 111)

If a court invalidates one portion of Article 5, the remaining provisions remain enforceable.

For operators, this means license obligations and compliance duties continue unless the State explicitly amends or repeals them. A legal challenge does not suspend enforcement by default.

What Operators Usually Miss

  • “New York Hemp Product” is a regulated designation, not a marketing phrase
  • Penalties can escalate quickly for repeat or ignored violations
  • Advisory workgroups often signal future regulatory changes
  • Special permits do not reduce compliance obligations

When This Comes Up

  • Inspections and audits
  • Product launches or rebranding
  • THC or labeling disputes
  • Enforcement notices or stop-sale orders
  • Applying for special or temporary permissions

What Happens If You Ignore This

  • Fines or product seizure
  • License suspension or revocation
  • Loss of eligibility for renewal
  • Increased scrutiny across all operations
  • Barriers to future adult-use licensure

Related MRTA Article 5 Section Pages

Source Material