Congress recently passed a significant piece of legislation that will ban or restrict the production and sale of certain cannabis edibles, drinks, and vapes derived from hemp. This new federal hemp law, which will come into effect in November 2026, was included in a bill that ended the government shutdown and has already begun to create uncertainty within New York’s cannabis industry.
Leaders in Central New York, who have navigated various changes since the legalization of cannabis less than a decade ago, are now grappling with the implications of this new legislation. Allan Gandelman, who operates the Head & Heal cannabis business in Cortland County and is a founding member of the Cannabis Association of New York, expressed concern over the unexpected nature of the law. “There’s a lot going on here and a lot to think about,” he said, noting a mix of reactions among industry stakeholders.
Some industry players are apprehensive about the changes, while others see potential benefits. Heather Trela, a fellow at the Rockefeller Institute of Government in Albany, suggested that the new law might have limited effects in New York state. She pointed out that the recent changes essentially overturn alterations made to federal agriculture law in 2018, which had previously deregulated hemp products. This deregulation led to a surge in hemp cannabis products that could contain THC levels similar to marijuana, which has raised concerns over consumer safety.
New York became one of the first states to fully legalize recreational marijuana in 2021, using a different type of cannabis plant with higher THC levels. The latest federal changes will not impact the over 500 legal marijuana dispensaries currently operating in New York, and experts like Trela believe that the existing state regulations are stringent enough to keep businesses compliant under the new federal law.
Despite this optimism, adjustments are expected within the industry. For instance, some businesses may be forced to discontinue certain THC-infused beverages. Tim Shore, co-founder of Buried Acorn Brewing, noted that his line of low THC hemp-infused seltzers, sold under the name Off Shore, could be affected. “We may have to shift to a cannabis (marijuana) base and just sell to the licensed dispensaries,” he said.
Ayrloom, a THC beverage company connected to Beak & Skiff Apple Orchards, is also facing challenges. President Eddie Brennan indicated that the new law could jeopardize a substantial part of their business that sells beverages containing Delta 9, a type of hemp-derived THC that will be banned. “That would completely go away after a year if they are not able to extend or find a path to regulation,” he said.
Gandelman at Head & Heal anticipates changes as well, particularly impacting his online sales. “I will not be allowed to do that under this law,” he stated, referring to his offerings of CBD gummies and oils. He believes that the recent legislation was triggered by issues caused by “bad actors” selling out-of-state hemp THC products in gas stations and convenience stores. As a result, Gandelman plans to focus on New York-grown and processed products.
Rodney Haymes, who is opening a licensed recreational marijuana dispensary in DeWitt, is also concerned about the implications of the new law on his business. His shop, The Dispensary by the BudBoyz, has a state cannabinoid hemp license for the sale of THCa, which will be affected by the federal changes. “Yes, I anticipate some turbulence for sure,” he remarked. “If it takes effect as is here in NY or any other state, it will decimate the hemp industry as we know it.”
On a more positive note, Joe Rossi, founder of Modern Advocacy in Syracuse, sees the new law as an opportunity for clarity and safety within the industry. “For six years, intoxicating hemp products sold outside regulated cannabis systems have created confusion and real consumer-safety concerns,” he stated in an email. Rossi emphasized that New York has been a pioneer in distinguishing between CBD wellness products and intoxicating cannabinoids.
The New York Office of Cannabis Management is currently reviewing the federal legislation and its potential impact on the state. The office has implemented rigorous standards to ensure that cannabinoid hemp products sold in New York comply with good manufacturing practices, prioritizing public health and consumer safety. As the industry adapts to these new regulations, the balance between regulation and market opportunity remains a critical focus for stakeholders.
