New York may not wait for a looming change in federal law reclassifying most hemp products as prohibited marijuana to launch a crackdown on hemp-derived THC beverages.
Claiming sales of hemp THC drinks at supermarkets and other retailers “are cannibalizing our cannabis industry,” officials in Gov. Kathy Hochul’s administration said the products are a likely target for enforcement, City & State reported.
Intoxicating hemp-derived products can be found at mainstream retailers throughout New York State, including at grocery and convenience stores in New York City.
That’s despite clear directive in state law requiring sellers of such products to obtain a specific Cannabinoid Hemp Retail License from the state Office of Cannabis Management.
Are hemp THC beverage sales in New York legal?
Overall, sales of hemp cannabinoid products could reach $38.7 billion by the end of the year, according to a recent Whitney Economics estimate. Drinks alone were worth more than $1 billion in sales nationwide, according to a Whitney estimate from last year.
In New York, the unlicensed sales situation is “a real public health risk and a real disaster waiting to happen,” said Chelsea Daivs, Hochul’s deputy secretary for Gaming, Cannabis and Alcohol, according to the New York Post.
Added Davis, according to the Post: “I think this status quo is completely untenable.” State lawmakers will likely push to regulate or ban such unlicensed sale of hemp-derived cannabinoid drinks in next year’s legislative session, she said.
Most hemp-derived cannabinoid products are set to lose federal protections on Dec. 11, when a redefinition of hemp that renders most of the hemp sector’s products controlled substances goes into effect.
That’s unless Congress or the White House takes further action to delay the ban or carve out certain products.
Several Washington lobbies for hemp products, including advocates for the alcohol industry who view hemp beverages as a welcome source of revenue, are confident that low-dose drinks may be excluded from the federal ban.
Is New York cracking down on hemp-derived THC beverages?
That would issues like the New York hemp THC beverage question up to the states. And many states have moved to tighten restrictions on hemp-derived THC products or ban their sale outside of state-regulated marijuana retailers entirely.
Separate legislation that would have allowed New York liquor stores to sell THC beverages failed to advance in Albany, according to The Post.
Hemp-derived THC drinks are legally sold in mainstream retailers like Target and at gas stations such as Circle K in select states including Minnesota.
