New York Governor Andrew Cuomo announced on February 22, 2021 that businesses seeking to operate as cannabinoid hemp processors, retailers, or distributors can now apply for a license through the New York State Department of Health (NYDOH). Any business intending to manufacture, distribute, or sell cannabinoid hemp products in New York State must be licensed.

Manufacturers can choose between two types of licenses, which are valid for two years. One license allows processors to extract or isolate cannabinoids, including cannabidiol (CBD), from hemp to create an oil, distillate, isolate, or other product and manufacture the intermediary product into a finished product. The second type of license is for manufacturers that purchase intermediary products and manufacture them into a finished product. Applicants must provide documentation including a description of the products, information about the source hemp, and evidence showing the facility follows current good manufacturing practices. Manufacturers seeking to engage in direct retail sale must separately apply for a retail license.

As we have previously reported, the NYDOH published proposed regulations to implement the NY Cannabinoid Hemp Program in October 2020. The rules provide for facility manufacturing guidelines, packaging and labeling standards, and laboratory testing specifications. We will continue to report on developments regarding CBD marketing and manufacturing.