New York's new THC limitations put squeeze on local bars and businesses
New York state's cannabis rollout is seeing yet another potential roadblock.
Last month state cannabis regulators set new limitations on THC use in consumable products.
This new temporary law puts limits on consumable THC products sold in New York like edibles, seltzers, and gummies.
Now, this all came to light after officials found a loophole in the 2018 Federal Farm Bill which essentially allows intoxicating levels of THC in consumables, without any regulations on who could sell those products.
"We were excited to start selling a new product category that we thought would align with some of the different trends that we're seeing in the bar and beverage industry,” said August Rosa, bar owner.
The THC seltzers have become a hit for Rosa's customers looking for non-alcoholic drinks and other forms of THC consumables. Now, consumers will have to look out of state for these products or go to one of the few dispensaries in the region, because state cannabis laws are changing.
"This has developed to about 10-15% of our business which is significant,” said Rosa. “So, to begin this new opportunity, successfully grow the category in a really short period of time and have it be taken away."
The change in THC limitations was drafted in an emergency justification stating there can be no more than 10 milligrams of THC per serving of consumable products.
Cycling Frog, a West coast CBD, THC company distributes products across the country, including here in New York.
Company reps say they support the state-creating regulations-but not all of them.
"We want to be classified as a product and we want clear lanes to travel forward on,” said Dylan Summers, VP Government Affairs at Cycling Frog. “It's just that in this case the OCM has made some pretty limiting regulations."
The new regulations mean companies like Cycling Frog must head back to the drawing board.
"That's terribly expensive, we've done our best assessment of the multiple states, the lack of clarity from the 2018 Farm Bill provides for products, we're left to kind of a scatter shot approach to maintain compliance with every single state and their program,” added Summers.
Earlier this month, Cycling Frog and several companies both in and out of state filed an adjudication in Albany County Supreme Court against the emergency justification.
