Hemp and Cannabinoid Hemp Products

What This Covers

• Hemp and cannabinoid hemp definitions
• Processor and retailer license requirements
• Application, fees, and renewal rules
• Day-to-day operational standards
• Packaging, labeling, and testing requirements
• Enforcement actions, penalties, and prohibitions

Go to Related MRTA Article 5 Section Pages

• License & Eligibility (Hemp)
• Compliance and Operations (Hemp)
• Oversight and Enforcement (Hemp)

Licensing and Eligibility

Definitions (Section 90)

Defines key terms that determine whether a product is regulated under Article 5, including:

• Hemp
• Hemp extract
• Cannabinoid hemp
• Hemp product

These definitions control whether a product is lawful, licensable, or prohibited.

Rulemaking Authority (Section 91)

Authorizes the Cannabis Control Board to issue hemp regulations, including rules on:

• Packaging and labeling
• Testing standards
• Operational requirements

Licensees must comply with both the statute and all regulations adopted under it.

Cannabinoid Hemp Processor License (Section 92)

Required to manufacture, extract, formulate, package, or label hemp-derived products for human consumption.

Includes white-label manufacturing.

Processors must meet facility, THC-limit, testing, and documentation requirements.

Cannabinoid Hemp Retailer License (Section 93)

Required to sell hemp products directly to consumers, including:

• Physical retail locations
• Online sales
• Temporary or mobile retail

An adult-use cannabis license does not replace this requirement.

Cannabinoid License Applications (Section 94)

Explains how to apply for hemp processor or retailer licenses, including:

• Required forms
• Submission process
• Supporting documentation

Incomplete applications may be denied.

Information Requested in Applications (Section 95)

Applicants must provide:

• Ownership and investor information
• Site control and location details
• Operations and compliance plans

Inaccurate or missing information may result in denial or enforcement.

Fees (Section 96)

Sets required fees for hemp licenses.

Fees vary by license type and activity level.

All fees are non-refundable.

Selection Criteria (Section 97)

OCM evaluates applications based on:

• Ability to comply with the law
• Operational readiness
• Compliance history
• Public health and safety considerations

Licenses are not issued on a first-come basis.

License Renewal (Section 98)

Retail licenses renew annually.
Processor licenses renew every two years.

Renewal requires:

• A complete renewal application
• Payment of fees
• Proof of continued compliance

Form of License (Section 99)

Each license must list:

• Licensee name
• Authorized activity
• Licensed location
• Validity period

Licenses must be displayed and cannot be transferred or reused.

Operations and Standards

Transferability, Amendments, Ownership or Control Changes (Section 100)

State approval is required before:

• Ownership changes
• Control or management changes
• Premises changes
• Activity changes

Unapproved changes can void the license.

Granting, Suspending, or Revoking Licenses (Section 101)

OCM may approve, suspend, or revoke licenses for violations of Article 5, its regulations, or OCM orders.

Recordkeeping and Tracking (Section 102)

Licensees must maintain records covering:

• Inventory and batch movement
• Production and sales
• Test results and certificates of analysis

Records must be available for inspection at all times.

Packaging and Labeling (Section 103)

Products must comply with requirements for:

• Cannabinoid and THC disclosures
• Ingredient lists
• Required warnings
• Prohibited claims
• QR codes linking to test results

Non-compliant products may be subject to stop-sale or seizure.

Processing Standards (Section 104)

Establishes standards for:

• Sanitary facilities
• Approved extraction methods
• Proper handling and storage
• Manufacturing safety

Unapproved methods are violations.

Laboratory Testing (Section 105)

All hemp products must be tested by a state-approved independent laboratory before sale.

Testing must confirm:

• Potency and cannabinoid content
• THC compliance
• Absence of contaminants
• Label accuracy

Products may not be sold without valid results.

Legal Compliance and Enforcement

New York Hemp Product (Section 106)

Defines when a product may be labeled as a New York hemp product.

Improper use of this designation is a violation.

Penalties (Section 107)

Authorizes enforcement actions including:

• Fines
• License suspension or revocation
• Product seizures
• Stop-sale orders

Hemp Workgroup (Section 108)

Creates an advisory body to provide recommendations on hemp regulation and industry practices.

Prohibitions (Section 109)

Lists prohibited activities, including:

• Exceeding THC limits
• Mislabeling products
• Selling disallowed product forms

Special Use Permits (Section 110)

Allows limited, time-bound permits for activities outside standard licensing categories.

Severability (Section 111)

A standard legal clause.
If a court invalidates one part of Article 5, the rest of the law remains in force.

For operators, this means:

• Your license obligations remain active unless the State explicitly changes them.
• Program rules do not collapse because of one legal challenge.

Source Material

• Cannabis Law (MRTA), Article 5