CBD Additives

New York State Bans CBD Infused Food and Beverages

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.

Oregon to Issue Guidance on Illegal Sale of CBD Infused Alcohol

The Oregon Liquor Control Commission will issue guidance to the alcohol beverage industry about the enforcement risk of selling CBD infused alcohol. At the OLCC’s monthly meeting, the state regulator discussed the industry’s confusion around the sale of CBD infused alcoholic beverages following the passage of the 2018 Farm Bill. The state will soon notify the industry that the state believes that it is currently illegal to sell CBD infused alcohol under federal law.

Oregon currently permits the intrastate sale of CBD infused products. However, increased federal scrutiny by the FDA around the sale of CBD products has caused Oregon to focus its attention on CBD alcohol. As an enforcement agency, the regulator may bring enforcement actions against businesses that manufacture or sell CBD infused alcohol.

OLCC staff informed the Commission that it expects the FDA to take two or three years to adopt rules for CBD products. The staff also noted that the Alcohol and Tobacco Tax and Trade Bureau (TTB) is in the process of updating its guidance for CBD infused alcohol, during which time, it will not approve formulas for any alcoholic beverage that contains CBD or THC. The TTB’s approval of a formula is required for alcoholic beverage that contain CBD prior to sale. Until TTB provides guidance, the CBD infused alcoholic beverage market will be stalled.

Washington Cannabis Manufacturers: Are You Importing CBD Products on December 1st? What You Need to Know.

The Washington State Liquor and Cannabis Board (WSLCB) approved a rule that will allow cannabis producers and processors to import CBD additives that contain 0.3% or less of THC from non-licensed sources starting December 1st. Opening up the market will increase competition in the growing CBD product space. Licensees who are importing CBD product should develop operating procedures to ensure compliance with the new regulatory requirements including entering the CBD product into the inventory tracking system and segregating the CBD until it has been appropriately tested. During today’s monthly meeting, WSLCB staff members sought tougher enforcement penalties in response to the increase in the number of processors and producers that are failing to enter inventory into the seed-to-sale tracking system.

Washington State to Allow the Import of CBD Additives from Non-Licensed Sources

The Washington State Liquor and Cannabis Board (WSLCB) approved a rule that will allow producers and processors to import CBD additives that contain 0.3% or less of THC from non-licensed sources starting December 1st. Opening up the market will increase competition in the growing CBD product space. Licensees who are importing CBD product should develop operating procedures to ensure compliance with the new regulatory requirements including entering the CBD product into the inventory tracking system and segregating the CBD until it has been appropriately tested. During today’s monthly meeting, WSLCB staff members sought tougher enforcement penalties in response to the increase in the number of processors and producers that are failing to enter inventory into the seed-to-sale tracking system.

Rhode Island: Industrial Hemp Program Goes Live October 9th

Rhode Island’s industrial hemp regulations become effective on October 9th, which will allow the cultivation of industrial hemp for use in manufacturing hemp products including those for human consumption. Rhode Island is rushing along with other states to implement industrial hemp cultivation and production facilities, and garner an increasing market for hemp products including CBD human and pet products. In some states, CBD produced from industrial hemp may be sold outside of a licensed dispensary.

On October 9, applications for grower or handler licenses can be submitted to the Rhode Island Department of Business Regulation. Growers must obtain a separate license for each noncontiguous parcel on which industrial hemp will be cultivated.

The regulations are similar to those that are currently being considered by Oregon, and set forth a regulatory framework for the growing, testing, and tracking of industrial hemp from seed to consumption. The DBR will participate in the sampling of industrial hemp prior to harvest or production. The sample must be tested by an approved testing facility for compliance with the maximum 0.3% THC level. Industrial hemp that is intended for human consumption is subject to additional testing and packaging/labeling requirements.

WASHINGTON REQUESTS COMMENTS ON RULES

The Washington State Liquor and Cannabis board requested public comment on two rule proposals by October 3, 2018.  The rule proposals implement legislative changes that occurred during 2017 and 2018 sessions, and incorporate technical changes (links below).

During 2018, the Washington State legislature enacted the following laws:

  • Financial Services.  The law states that financial service providers are not violating Washington law by entering into financial transactions (i.e., deposits, extending credit, conducting funds transfers, transporting cash) with commercial cannabis businesses.  

  • Marijuana Product Container Labels - Business Information.  The law mandates the placement of labels on marijuana containers that contain the unified buisiness identifier number of the marijuana producer and processor.  

  • Use of Cannaboid Additives in Marijuana Products.  The law provides that marijuana producers and processors that use a cannaboid additive in marijuana products must obtain the cannaboid additive product from a licensed producer or processor unless the CBD product has (1) less a THC level of 0.3 percent or less on a dry weight basis, and (2) been lawfully tested for contaminants and toxins.

2018 Cannabis Legislation Implementation Rules
lcb.wa.gov/sites/default/files/publications/rules/2018%20Proposed%20Rules/WSR_18-17-184_CR_102_MJ_Leg_Rules.pdf

During 2017, the Washington State legislature enacted the following laws:

  • Marijuana Lock Boxes.  The law allows retail outlets to provide customers with a free marijuana lock box.  The retail outlet cannot use the lock box as an inducement for a sale.

  • Sanitary Processing of Edibles.  The law provides the Department of Agriculture with authority to regulate the sanitary processing of edibles.

  • Marijuana License Fee.  The law imposes a $480 additional fee to license applications and renewals. The fee is being used to pay for the traceability system.

  • Various Changes.  The law contains amendments that address privileges for research licenses, local authority notifications, the retail licensing merit-based application process, certain transfers of plants and seeds, licensing agreements and contracts, advertising, and jurisdictional requirements.


2017 Cannabis Legislation and Technical Housekeeping Rules
lcb.wa.gov/sites/default/files/publications/rules/2018%20Proposed%20Rules/WSR_18-17-185_2017_MJ_Leg_Rules_Supplemental_CR_102.pdf