Compliance and Operations (Hemp)
MRTA Article 5, Sections 100–105
Licensed hemp businesses in New York are subject to detailed day-to-day operational requirements. While hemp is regulated separately from adult-use cannabis, processors and retailers must still meet strict standards for recordkeeping, packaging, labeling, processing, and testing.
These sections define how licensed hemp businesses must operate to remain compliant and avoid enforcement action.
What This Covers
- When a hemp license becomes invalid due to changes
- How licenses may be granted, suspended, or revoked
- Recordkeeping and tracking requirements
- Packaging, labeling, and processing standards
- Mandatory laboratory testing
Transferability, Amendments, Ownership, or Control Changes (Section 100)
A hemp license is not automatically transferable and is tied to the approved ownership, control, location, and activities.
A license becomes invalid if you:
- Transfer ownership without approval
- Change control or management
- Move or alter the licensed premises
- Add or remove licensed activities
All material changes must be submitted to and approved by OCM before taking effect. Operating after an unapproved change can void the license.
Granting, Suspending, or Revoking Licenses (Section 101)
This section authorizes the State to approve, suspend, or revoke hemp licenses.
Licenses may be suspended or revoked for:
- Violations of Article 5
- Violations of hemp regulations
- Failure to comply with OCM orders
Licensing is conditional. Operators remain subject to review and enforcement for as long as they are licensed.
Recordkeeping and Tracking (Section 102)
Hemp operators must maintain complete and accurate records, including:
- Inventory and batch movement
- Production and processing activity
- Sales and distribution records
- Laboratory test results and certificates of analysis
- Ingredients, inputs, and extraction materials
Records must be available for inspection at any time. Missing, incomplete, or inaccurate records are compliance violations.
Packaging and Labeling (Section 103)
All hemp products must comply with New York packaging and labeling requirements.
Requirements include:
- Accurate cannabinoid and THC content
- Complete ingredient lists
- Required warnings
- Prohibited health or medical claims
- Proper formatting and placement of information
- Scannable links or QR codes to test results
Incorrect or misleading packaging may result in stop-sale orders, product seizures, or penalties.
Processing of Cannabinoid Hemp and Hemp Extract (Section 104)
This section sets standards for hemp processing activities.
Processors must follow:
- Sanitary and safe facility conditions
- Approved extraction methods
- Proper handling and storage of raw materials
- Applicable manufacturing and safety standards
Unapproved methods or shortcuts are violations and may trigger enforcement action.
Laboratory Testing (Section 105)
All hemp products must be tested by a state-approved independent laboratory before sale.
Testing must verify:
- Potency and cannabinoid content
- Compliance with THC limits
- Absence of contaminants, including microbials, pesticides, heavy metals, and solvents
- Accuracy of label claims
Products may not be sold without valid test results. Missing or misrepresented test data is a serious compliance violation.
What Operators Usually Miss
- Unapproved ownership or premises changes can void a license
- Recordkeeping failures are enforceable violations
- Packaging errors can trigger immediate stop-sale orders
- Testing is required before sale, not after
When This Comes Up
- Inspections and audits
- Product launches or reformulations
- Facility moves or expansions
- Ownership or management changes
- Enforcement inquiries
What Happens If You Ignore This
- License suspension or revocation
- Product seizure or stop-sale orders
- Fines and penalties
- Loss of eligibility for renewal
- Increased enforcement scrutiny
Related MRTA Article 5 Section Pages
Source Material
