New York Finalizes Regulations for Intoxicating Hemp Products, Banning Certain THC Variants

2.1 min readPublished On: November 21st, 2023By

NEW YORK – New York’s cannabis regulators have recently established definitive rules for intoxicating hemp products, introducing a series of restrictions and standards that are expected to reshape the hemp market in the state. As reported by Syracuse.com, these rules notably include a prohibition on Delta-8 THC, THC-A, and THC-O.

In a move to regulate the potency of hemp products, the new guidelines mandate that products containing THC must adhere to a CBD-THC ratio of 15-1. Moreover, they restrict THC content to a maximum of 10 milligrams per package and limit individual servings to 1 milligram of THC. These measures aim to balance the availability of THC-infused products with public health considerations.

Although these rules were initially introduced as emergency regulations in July, their finalization comes after Supreme Court Judge Thomas Marcelle’s injunction last week, which does not affect this latest version. The completion of these regulations marks a significant step in the state’s ongoing efforts to manage hemp and cannabis products.

The finalized rules have sparked discussions about potential legal challenges. Joshua Bauchner, chair of the cannabis and psychedelics group at Mandelbaum Barrett PC, expressed to Syracuse.com his anticipation of constitutional challenges, citing concerns of government overreach in the prohibition of the sale of legally produced products. “I think there’s gonna be a lot of constitutional challenges to what the state’s trying to do here, and it just smacks of government overreach,” Bauchner said.

In a related development, the Cannabis Control Board also approved new fees for cannabis testing laboratories, which will be the greater of 1% of the lab’s gross revenue or $1,000. Additionally, registration renewals were approved for nine of the state’s eleven medical cannabis companies, signaling a continued commitment to the medical cannabis sector.

During the same meeting, John Kagia, the Director of Policy at the Office of Cannabis Management, revealed significant sales figures for the legal cannabis market in New York. Retailers in the state have sold nearly $109 million worth of legal cannabis products to date, with $23 million in sales recorded in the fourth quarter of 2023 alone. These numbers underscore the growing economic impact of the cannabis industry in New York.

The new regulations mark a pivotal moment in New York’s cannabis market, reflecting the state’s cautious approach towards the management and control of intoxicating hemp products. As the market adapts to these changes, stakeholders and observers alike will be watching closely to see how these regulations impact the industry and whether they will indeed face legal challenges in the near future.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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