New York is preparing to address the unregulated sale of cannabis-based drinks in local grocery stores and bodegas, with a state official describing the situation as a potential "disaster waiting to happen."
Chelsea Davis, deputy secretary for Gaming, Cannabis and Alcohol in Gov. Kathy Hochul’s administration, stated that the current proliferation of these "black market" CBD drinks is "untenable." This suggests that curbing these sales will likely be a priority for the governor in the upcoming legislative session.
"I think it’s a real public-health risk and a real disaster waiting to happen," Davis said during a panel discussion on alcohol policy. Current New York law requires specific licenses for selling hemp-based drinks, with beverages containing higher levels of THC permitted only in licensed dispensaries.
The unregulated sales have been observed in unlicensed delis and grocery stores, prompting calls for state regulators to intervene. Davis indicated that the existing situation is not sustainable and that legislative action may be pursued to restrict unlicensed sales.
She also noted that these unregulated beverages may be negatively impacting the state's licensed cannabis dispensaries, which are crucial to the developing industry. A proposal earlier this year to allow liquor stores to sell cannabis drinks did not pass the legislature.
Policymakers had previously been hesitant to act, partly due to federal lawmakers considering a ban on such drinks, which has since been delayed.
"The marketplace has moved faster than the law," said cannabis policy source Joe Rossi. He highlighted the consumer confusion between hemp-derived THC and cannabis, creating challenges for regulators, businesses, and consumers. THC is the psychoactive compound in cannabis, while hemp is a variety of cannabis that typically does not contain enough THC to produce a high.
Legislation has been proposed in Albany that could allow liquor stores to sell THC drinks upon obtaining a permit.