- The new legislation requires that any retailer that sells CBD obtain a license to do so. They are also required to source their hemp-derived CBD products from manufacturers who are licensed by the state of NY, and are able to show chain of custody from a NY state licensed hemp grower to a NY state licensed hemp extractor and lastly to a NY state licensed hemp manufacturer.
- Each entity in the chain must abide by the NY state regulations. The legislation does allow for merchants in NY state to source their CBD from outside NY state provided that the products are compliant with all NY state regulations. Licensing of retail stores will be a requirement starting on January 1, 2021, or about 12 months from now.
- This aspect of the new legislation will create a new reality for NY CBD and for the country. This legislation will force any NY state merchant selling CBD to make sure they are selling products that are compliant with the new rules.
- Furthermore, for consumers outside of NY, this legislation will create a safe place for them to buy their CBD products from. “Made in NY” will be a quality seal of approval. New York State CBD will be the shiny castle on the hill which all will look up to and become a magnet for consumers around the country who are looking for the highest-quality CBD.