The New York State Department of Agriculture issued a letter warning food license and dairy permit holders that they may face enforcement actions for manufacturing or selling CBD infused food and beverages.
The DOA’s letter will have a significant impact as many smoke shops, bodegas and health stores In New York began selling CBD infused products following the enactment of the 2018 Farm Bill. Businesses that continue to sell CBD products could have the inventory seized and destroyed or face other penalties including fines or a negative sanitary inspection.
The Department of Agriculture also issued guidance to educate these businesses about the difference between hemp seed oil and CBD additives. Stores may sell food and beverages that contain hemp seed oil as it has been approved by the US Food and Drug Administration.
The state does allow CBD products that are manufactured by a research partner under New York’s Industrial Hemp Agricultural Research Pilot Program to be sold as dietary supplements. The DOA indicates that these CBD products are manufactured using higher standards than those that apply to food. Under the pilot program, research partners must agree not to manufacture products that add CBD to food or cosmetics.
There are currently forty-five (45) research partners that are authorized to manufacture CBD in New York State. CBD research partners must source all industrial hemp from New York growers. New York’s current stance with regards to CBD and CBD infused products further hamstrings the CBD’s industry to achieve a national sales and distribution capability.