A07680 Summary:

BILL NOA07680A
 
SAME ASSAME AS S06184-A
 
SPONSORLupardo
 
COSPNSRPeoples-Stokes, Gottfried, Romeo, Blake, McDonald, Cruz, Simon, Norris, Buttenschon, Schmitt, Glick, Jaffee, Lifton, Stirpe, Smullen, Crouch, Giglio, Miller B, Rosenthal L, Pichardo, Jacobson, Bronson, Fahy
 
MLTSPNSRManktelow, Thiele
 
Amd 505 & 506, add Art 29-A 520 - 547, rpld & add 507 - 514, Ag & Mkts L
 
Relates to the growth of industrial hemp and the regulation of hemp extract and provides for the licensing of cannabinoid related hemp extract and the requirements for such licenses.
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A07680 Actions:

BILL NOA07680A
 
05/15/2019referred to agriculture
06/06/2019reported referred to codes
06/10/2019amend and recommit to codes
06/10/2019print number 7680a
06/20/2019reference changed to ways and means
06/20/2019reported referred to rules
06/20/2019reported
06/20/2019rules report cal.692
06/20/2019substituted by s6184a
 S06184 AMEND=A METZGER
 05/21/2019REFERRED TO AGRICULTURE
 06/11/2019AMEND AND RECOMMIT TO AGRICULTURE
 06/20/2019COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/11/2019PRINT NUMBER 6184A
 06/20/2019ORDERED TO THIRD READING CAL.1845
 06/20/2019PASSED SENATE
 06/20/2019DELIVERED TO ASSEMBLY
 06/20/2019referred to codes
 06/20/2019substituted for a7680a
 06/20/2019ordered to third reading rules cal.692
 06/20/2019passed assembly
 06/20/2019returned to senate
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A07680 Committee Votes:

AGRICULTURE Chair:Lupardo DATE:06/06/2019AYE/NAY:20/0 Action: Favorable refer to committee Codes
LupardoAyeBlankenbushAye
LiftonAyeCrouchAye
GuntherAyeFinchAye
RosenthalAyeHawleyAye
RiveraAyeFitzpatrickAye
BarrettAyeMillerAye
StirpeAye
SantabarbaraAye
WoernerAye
JonesAye
EpsteinAye
MosleyAye
DilanAye
WilliamsExcused
ButtenschonAye

WAYS AND MEANS Chair:Weinstein DATE:06/20/2019AYE/NAY:33/0 Action: Favorable refer to committee Rules
WeinsteinAyeBarclayAye
LentolAyeCrouchAye
SchimmingerAyeFitzpatrickAye
GanttExcusedHawleyAye
GlickAyeMalliotakisAye
NolanExcusedMontesanoAye
PretlowAyeRaAye
PerryAyeBlankenbushAye
ColtonAyePalmesanoAye
CookAyeNorrisAye
CahillAye
AubryAye
ThieleAye
CusickAye
OrtizAye
BenedettoAye
WeprinAye
RodriguezAye
RamosAye
BraunsteinAye
McDonaldAye
RozicAye
SimotasAye
DinowitzAye
MillerAye

RULES Chair:Heastie DATE:06/20/2019AYE/NAY:27/0 Action: Favorable
HeastieAyeKolbAye
GottfriedAyeCrouchAye
LentolAyeFinchAye
GanttExcusedBarclayAye
NolanExcusedRaiaAye
WeinsteinAyeHawleyAye
OrtizAyeGiglioAye
PretlowAyeMalliotakisAye
CookAye
GlickAye
AubryAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinAye
TitusExcused
Peoples-StokesExcused
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye

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A07680 Floor Votes:

There are no votes for this bill in this legislative session.
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A07680 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7680--A
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 15, 2019
                                       ___________
 
        Introduced by M. of A. LUPARDO, PEOPLES-STOKES, GOTTFRIED, ROMEO, BLAKE,
          McDONALD,  CRUZ,  SIMON,  NORRIS,  BUTTENSCHON, ASHBY, SCHMITT, GLICK,
          JAFFEE, LIFTON, STIRPE, SMULLEN, CROUCH, GIGLIO, B. MILLER  --  Multi-
          Sponsored  by -- M.  of A. MANKTELOW, THIELE -- read once and referred
          to the Committee on  Agriculture  --  reported  and  referred  to  the
          Committee  on  Codes  --  committee  discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the agriculture and markets  law,  in  relation  to  the
          growth  of  industrial hemp and the regulation of hemp extract; and to
          repeal certain provisions of such law relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 1 of section 505 of the agriculture and markets
     2  law,  as added by chapter 524 of the laws of 2014, is amended to read as
     3  follows:
     4    1. "Industrial hemp" means the plant Cannabis sativa L. and  any  part
     5  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
     6  extracts, cannabinoids, isomers, acids, salts,  and  salts  of  isomers,
     7  whether  growing  or  not,  with  a delta-9 tetrahydrocannabinol concen-
     8  tration of not more than 0.3 percent on a dry weight basis.
     9    § 2. Section 506 of the agriculture and markets  law,  as  amended  by
    10  section  1  of  part OO of chapter 58 of the laws of 2017, is amended to
    11  read as follows:
    12    § 506. Growth, sale, distribution, transportation  and  processing  of
    13  industrial hemp and products derived from such hemp permitted. [Notwith-
    14  standing any provision of law to the contrary, industrial] 1. Industrial
    15  hemp and products derived from such hemp are agricultural products which
    16  may  be  grown,  produced  [and],  possessed  [in the state, and], sold,
    17  distributed, transported [or] and/or processed [either] in [or  out  of]
    18  state  [as part of agricultural pilot programs pursuant to authorization
    19  under federal law and  the  provisions  of  this  article]  pursuant  to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11646-09-9

        A. 7680--A                          2
 
     1  authorization  under  federal law and/or the provisions of this article.
     2  [Notwithstanding any provision of law to the  contrary  restricting  the
     3  growing or cultivating, sale, distribution, transportation or processing
     4  of  industrial  hemp and products derived from such hemp, and subject to
     5  authorization under federal law, the]
     6    2. The commissioner may authorize the growing or cultivating of indus-
     7  trial hemp as part of  agricultural  pilot  programs  conducted  by  the
     8  department and/or an institution of higher education to study the growth
     9  and  cultivation,  sale,  distribution, transportation and processing of
    10  such hemp and products derived from such hemp provided  that  the  sites
    11  and  programs used for growing or cultivating industrial hemp are certi-
    12  fied by, and registered with, the department.
    13    3. The industrial hemp used for  research  pursuant  to  this  section
    14  shall  be sourced from authorized New York state industrial hemp produc-
    15  ers. The research partner may obtain an  exemption  for  only  grain  or
    16  fiber  from  this requirement upon a satisfactory showing to the depart-
    17  ment that a suitable variety of industrial hemp for the research project
    18  is not grown in New York and/or the use of New York sourced hemp is  not
    19  practicable for the project.  Hemp for extracts can only be sourced from
    20  authorized New York state industrial hemp producers.
    21    4. Nothing in this section shall limit the jurisdiction of the depart-
    22  ment under any other article of this chapter.
    23    §  3. Section 507 of the agriculture and markets law is REPEALED and a
    24  new section 507 is added to read as follows:
    25    § 507. Licensing; fees. 1. No person  shall  grow,  process,  produce,
    26  distribute  and/or  sell industrial hemp or products derived from indus-
    27  trial hemp in the state unless (a) licensed biennially  by  the  commis-
    28  sioner  or (b) authorized by the commissioner as part of an agricultural
    29  research pilot program established under this article.
    30    2. Application for a license to grow industrial  hemp  shall  be  made
    31  upon  a  form  prescribed by the commissioner, accompanied by a per-acre
    32  license fee  and  a  non-refundable  application  fee  of  five  hundred
    33  dollars.
    34    3.  The applicant shall furnish evidence of his or her good character,
    35  experience and competency, that the applicant has  adequate  facilities,
    36  equipment,  process  controls,  testing  capability and security to grow
    37  hemp.
    38    4. Growers who intend to cultivate  hemp  for  cannabinoids  shall  be
    39  required  to  obtain  licensure  from the department pursuant to article
    40  twenty-nine-A of this chapter.
    41    5. A renewal application shall be submitted  to  the  commissioner  at
    42  least sixty days prior to the commencement of the next license period.
    43    §  4. Section 508 of the agriculture and markets law is REPEALED and a
    44  new section 508 is added to read as follows:
    45    § 508. Compliance action plan. If the commissioner  determines,  after
    46  notice  and  an opportunity for hearing, that a licensee has negligently
    47  violated a provision of and/or a regulation promulgated pursuant to this
    48  article, that licensee shall be required to  comply  with  a  corrective
    49  action  plan established by the commissioner to correct the violation by
    50  a reasonable date and to periodically report to  the  commissioner  with
    51  respect  to  the licensee's compliance with this article for a period of
    52  no less than the next two calendar years following the commencement date
    53  of the compliance action plan. The provisions of this section shall  not
    54  be  applicable to research partners conducting hemp research pursuant to
    55  a research partner agreement, the terms of which shall control.

        A. 7680--A                          3
 
     1    § 5. Section 509 of the agriculture and markets law is REPEALED and  a
     2  new section 509 is added to read as follows:
     3    §  509.  Granting,  suspending or revoking licenses.  The commissioner
     4  may decline to grant a new license, may decline to renew a license,  may
     5  suspend  or revoke a license already granted after due notice and oppor-
     6  tunity for hearing whenever he or she finds that:
     7    1. any statement contained in  an  application  for  an  applicant  or
     8  licensee is or was false or misleading;
     9    2.  the  applicant  or  licensee  does  not  have  good character, the
    10  required experience and/or competency, adequate  facilities,  equipment,
    11  process  controls, testing capability and/or security to produce hemp or
    12  products derived from hemp;
    13    3. the applicant or licensee has failed  or  refused  to  produce  any
    14  records  or provide any information demanded by the commissioner reason-
    15  ably related to the administration and enforcement of this article; or
    16    4. the applicant or licensee, or any officer, director, partner, hold-
    17  er of ten percent of the voting stock, or any  other  person  exercising
    18  any  position  of management or control has failed to comply with any of
    19  the provisions of this article  or  rules  and  regulations  promulgated
    20  pursuant thereto.
    21    §  6. Section 510 of the agriculture and markets law is REPEALED and a
    22  new section 510 is added to read as follows:
    23    § 510. Regulations.  The commissioner may develop regulations consist-
    24  ent with the provisions of this article for the growing and cultivation,
    25  sale, distribution, and transportation of industrial hemp grown  in  the
    26  state, including:
    27    1.  the  authorization  or licensing of any person who may: acquire or
    28  possess industrial hemp plants or seeds; grow  or  cultivate  industrial
    29  hemp plants; and/or sell, purchase, distribute, or transport such indus-
    30  trial hemp plants, plant parts, or seeds;
    31    2. maintaining relevant information regarding land on which industrial
    32  hemp  is  produced  within the state, including the legal description of
    33  the land, for a period of not less than three calendar years;
    34    3. the procedure for testing of industrial hemp produced in the  state
    35  for  delta-9-tetrahydrocannabinol levels, using a representative non-de-
    36  carboxylated sample of flowers and leaves from the whole plant or  other
    37  similarly reliable methods;
    38    4.  the  procedure for effective disposal of industrial hemp plants or
    39  products derived from hemp that are produced in violation of this  arti-
    40  cle;
    41    5.  a  procedure for conducting at least a random sample of industrial
    42  hemp producers to verify that hemp is not produced in violation of  this
    43  article;
    44    6. any required security measures; and
    45    7.  such other and further regulation as the commissioner deems appro-
    46  priate or necessary.
    47    § 7. Section 511 of the agriculture and markets law is REPEALED and  a
    48  new section 511 is added to read as follows:
    49    §  511.  Prohibitions.    Except as authorized by state law, and regu-
    50  lations promulgated thereunder,  the  growth,  cultivation,  processing,
    51  sale, and/or distribution of industrial hemp is prohibited.
    52    §  8. Section 512 of the agriculture and markets law is REPEALED and a
    53  new section 512 is added to read as follows:
    54    § 512. Industrial hemp data collection  and  best  farming  practices.
    55  The  commissioner  shall  have the power to collect and publish data and
    56  research  concerning,  among  other  things,  the  growth,  cultivation,

        A. 7680--A                          4
 
     1  production  and  processing  methods  of  industrial  hemp  and products
     2  derived from industrial hemp and work with the New York state college of
     3  agriculture and life science at Cornell pursuant to section  fifty-seven
     4  hundred  twelve  of the education law and the Cornell cooperative exten-
     5  sion pursuant to section two hundred twenty-four of the  county  law  to
     6  promote  best farming practices for industrial hemp which are compatible
     7  with state water quality and other environmental objectives.
     8    § 9. Sections 513 and 514 of  the  agriculture  and  markets  law  are
     9  REPEALED and two new sections 513 and 514 are added to read as follows:
    10    §  513. Access to criminal history information through the division of
    11  criminal justice services.   In connection with  the  administration  of
    12  this  article,  the  commissioner  is authorized to request, receive and
    13  review criminal history information through  the  division  of  criminal
    14  justice services (division) with respect to any person seeking a license
    15  or  authorization  to undertake a hemp pilot project. At the commission-
    16  er's request, each researcher, principal and/or officer of the applicant
    17  shall submit to the department his or her fingerprints in such form  and
    18  in such manner as specified by the division, for the purpose of conduct-
    19  ing  a criminal history search and returning a report thereon in accord-
    20  ance with the procedures and requirements established  by  the  division
    21  pursuant  to the provisions of article thirty-five of the executive law,
    22  which shall include the payment of the prescribed  processing  fees  for
    23  the  cost  of  the  division's  full  search and retain procedures and a
    24  national criminal history record check. The commissioner, or his or  her
    25  designee,  shall  submit such fingerprints and the processing fee to the
    26  division.  The division shall forward to the commissioner a report  with
    27  respect  to  the  applicant's  previous  criminal  history, if any, or a
    28  statement that the applicant has no previous criminal history  according
    29  to its files. Fingerprints submitted to the division of criminal justice
    30  services  pursuant  to this section may also be submitted to the federal
    31  bureau of investigation for a national criminal history record check. If
    32  additional copies of fingerprints  are  required,  the  applicant  shall
    33  furnish them upon request.
    34    § 514. Aids to enforcement. 1. The commissioner shall have full access
    35  to  all  premises,  buildings,  factories, farms, vehicles, cars, boats,
    36  airplanes, vessels, containers, packages, barrels,  boxes,  and/or  cans
    37  for the purpose of enforcing the provisions of this article. The commis-
    38  sioner may, at such locations, examine industrial hemp and hemp products
    39  and may open any package and/or container reasonably believed to contain
    40  industrial  hemp  or hemp products, to determine whether such industrial
    41  hemp or hemp products follow applicable law or regulation.
    42    2. A search warrant shall be issued by any court to which  application
    43  is made therefor, whenever it shall be made to appear to such court that
    44  a licensee has: refused to permit any industrial hemp to be inspected or
    45  samples  taken  therefrom;  refused to permit access to any premises, or
    46  place  where  licensed  activities  are  conducted;  and/or  refused  or
    47  prevented  access  thereto  by  any inspector of the department and that
    48  such inspector has reasonable grounds to believe that  such  person  has
    49  any  industrial  hemp  in  his  or  her  possession, or under his or her
    50  control and/or is in violation of the provisions or regulations of  this
    51  article.  In  such  a case, a warrant shall be issued in the name of the
    52  people, directed to a police officer, commanding  him  or  her  to:  (a)
    53  search any place of business, factory, building, premises, or farm where
    54  licensed  activities  have  occurred  and  any  vehicle,  boat,  vessel,
    55  container, package, barrel, box, tub or can, containing, or believed  to
    56  contain  industrial  hemp  in the possession or under the control of any

        A. 7680--A                          5
 
     1  person who shall refuse to allow access to such hemp for  inspection  or
     2  sampling,  (b) permit the inspection and sampling of any industrial hemp
     3  found in the execution of the warrant, as the officer applying  for  the
     4  search  warrant  shall designate when the same is found, by an inspector
     5  or a department official authorized by the commissioner or by this chap-
     6  ter, and/or (c) permit access to any place where access  is  refused  or
     7  prevented,  and  to  allow  and  enable  a department inspector or other
     8  department official  to  conduct  an  inspection  of  the  place.    The
     9  provisions  of  article six hundred ninety of the criminal procedure law
    10  shall apply to such warrant as far as applicable thereto. The officer to
    11  whom the warrant is delivered shall make a return in writing of  his  or
    12  her proceedings thereunto to the court which issued the same.
    13    3.  The commissioner may quarantine industrial hemp when he or she has
    14  reason to believe that such commodity does not meet the definition ther-
    15  eof, set forth in subdivision one of section five hundred five  of  this
    16  article, or is otherwise in violation of or does not meet a standard set
    17  forth  in, applicable law or regulation. The quarantine may by the issu-
    18  ance of an order directing the owner or custodian of industrial hemp not
    19  to distribute, dispose of, or move that commodity  without  the  written
    20  permission  of  the commissioner. The commissioner may also quarantine a
    21  product by placing a tag or other appropriate marking thereon  or  adja-
    22  cent  thereto  that  provides and requires that such product must not be
    23  distributed, disposed of, or moved without his or  her  written  permis-
    24  sion,  or  may  quarantine a product by otherwise informing the owner or
    25  custodian thereof that such condition must be complied with.
    26    4. The commissioner may  seize  industrial  hemp  by  taking  physical
    27  possession of industrial hemp when he or she has substantial evidence to
    28  believe  that  such  commodity does not meet the definition thereof, set
    29  forth in subdivision one of section five hundred five of  this  article,
    30  or  is  otherwise in violation of, or does not meet a standard set forth
    31  in, applicable law or regulation.
    32    5. Subsequent to quarantining or seizing industrial hemp,  as  author-
    33  ized  in  subdivisions  three and four of this section, the commissioner
    34  shall promptly give the owner or custodian thereof an opportunity to  be
    35  heard  to  show  cause  why  such  industrial hemp should not be ordered
    36  destroyed. The commissioner shall, thereafter, consider all the relevant
    37  evidence and information presented and shall make a determination wheth-
    38  er such industrial hemp should be ordered to be destroyed; that determi-
    39  nation may be reviewed as provided for in article seventy-eight  of  the
    40  civil practice law and rules.
    41    § 10. The agriculture and markets law is amended by adding a new arti-
    42  cle 29-A to read as follows:
    43                                ARTICLE 29-A
    44                         REGULATION OF HEMP EXTRACT
    45  Section 520. Definitions.
    46          521. Rulemaking authority.
    47          522. Cannabinoid related hemp extract licensing.
    48          523. Cannabinoid grower licenses.
    49          524. Cannabinoid manufacturer license.
    50          525. Cannabinoid extractor license.
    51          526. Cannabinoid license applications.
    52          527. Information to be requested in applications for licenses.
    53          528. Fees.
    54          529. Selection criteria.
    55          530. Limitations of licensure; duration.
    56          531. License renewal.

        A. 7680--A                          6
 
     1          532. Form of license.
     2          533. Amendments  to  license  and  duty  to  update  information
     3                 submitted for licensing.
     4          534. Record keeping and tracking.
     5          535. Inspections and ongoing requirements.
     6          536. Packaging and labeling of hemp extract.
     7          537. Provisions  governing  the   growing,   manufacturing   and
     8                 extracting of hemp extract.
     9          538. Laboratory testing.
    10          539. Advertising.
    11          540. Research.
    12          541. Regulations.
    13          542. Cannabinoid permit.
    14          543. New York hemp product.
    15          544. Penalties and violations of this article.
    16          545. Hemp workgroup.
    17          546. Prohibitions.
    18          547. Severability.
    19    §  520.  Definitions.  Wherever  used in this article unless otherwise
    20  expressly stated or unless the context  or  subject  matter  requires  a
    21  different  meaning,  the  following  terms shall have the representative
    22  meanings hereinafter set forth or indicated:
    23    1. "Applicant" means a for-profit entity or not-for-profit corporation
    24  and includes board members who submit an application to become a  licen-
    25  see.
    26    2.  "Hemp  extract"  means any product made or derived from industrial
    27  hemp, including the seeds thereof and all derivatives whether growing or
    28  not, with a delta-9-tetrahydrocannabinol concentration of not more  than
    29  an  amount  of  the plant Cannabis sativa L. and any part of such plant,
    30  including the seeds thereof and all derivatives, extracts, cannabinoids,
    31  isomers, acids, salts, and salts of isomers,  whether  growing  or  not,
    32  with  a  delta-9-tetrahydrocannabinol  concentration of not more than an
    33  amount determined by the department in regulation, used or intended  for
    34  human  or  animal  consumption  or  use  for its cannabinoid content, as
    35  determined by the commissioner  in  regulation.  Hemp  extract  excludes
    36  industrial  hemp  used or intended exclusively for an industrial purpose
    37  and those food and/or food ingredients that are generally recognized  as
    38  safe by the department, and shall not be regulated as hemp extract with-
    39  in the meaning of this article.
    40    3. "Cannabinoid grower" means a person licensed by the department, and
    41  in  compliance  with  article  twenty-nine  of this chapter, to acquire,
    42  possess, cultivate, and sell hemp extract for its cannabinoid content.
    43    4. "Cannabinoid manufacturer" means a person licensed by  the  depart-
    44  ment  to  acquire,  possess,  and manufacture hemp extract from licensed
    45  cannabinoid growers or cannabinoid extractors for  the  manufacture  and
    46  sale  of hemp extract products marketed for cannabinoid content and used
    47  or intended for human or animal consumption or use.
    48    5. "Cannabinoid extractor" means a person licensed by  the  department
    49  to  acquire, possess, extract and manufacture hemp extract from licensed
    50  cannabinoid growers  for  the  manufacture  and  sale  of  hemp  extract
    51  products marketed for cannabinoid content and used or intended for human
    52  or animal consumption or use.
    53    6. "License" means a license issued pursuant to this article.
    54    7.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
    55  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
    56  extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,

        A. 7680--A                          7
 
     1  whether growing or  not,  with  a  delta-9-tetrahydrocannabinol  concen-
     2  tration of not more than 0.3 percent on a dry weight basis.
     3    §  521.  Rulemaking  authority.  1.  The department shall perform such
     4  acts, prescribe such forms  and  propose  such  rules,  regulations  and
     5  orders  as  it  may  deem  necessary  or  proper to fully effectuate the
     6  provisions of this article.
     7    2. The department shall have the  power  to  promulgate  any  and  all
     8  necessary  rules  and  regulations governing the production, processing,
     9  transportation, distribution, and sale of hemp  extract,  including  but
    10  not  limited  to  the  licensing  of cannabinoid growers, manufacturers,
    11  extractors and retailers, including, but not limited to:
    12    (a) prescribing forms and establishing application, reinstatement, and
    13  renewal fees;
    14    (b) the  qualifications  and  selection  criteria  for  licensing,  or
    15  permitting;
    16    (c) limitations on the number of licenses to be awarded;
    17    (d)  the  books and records to be created and maintained by licensees,
    18  and permittees, including the reports to be made thereon to the  depart-
    19  ment,  and inspection of any and all books and records maintained by any
    20  licensee, or permittee, and on the premises of any licensee  or  permit-
    21  tee;
    22    (e)  methods  of  producing,  processing,  and packaging hemp extract;
    23  conditions of sanitation, and standards  of  ingredients,  quality,  and
    24  identity  of  hemp  extract products cultivated, processed, packaged, or
    25  sold by licensees; and
    26    (f) hearing procedures and additional causes for cancellation, revoca-
    27  tion, and/or civil penalties against any person licensed,  or  permitted
    28  by the department.
    29    3.  The  department,  in  consultation with the department of environ-
    30  mental conservation and the New York state energy research and  develop-
    31  ment  agency, shall promulgate necessary rules and regulations governing
    32  the safe production of hemp extract, including environmental and  energy
    33  standards.
    34    §  522.  Cannabinoid related hemp extract licensing.  1. Persons grow-
    35  ing,  processing,  extracting,  and/or  manufacturing  hemp  extract  or
    36  producing hemp extract products distributed, sold or marketed for canna-
    37  binoid  content  and used or intended for human or animal consumption or
    38  use, shall be required to obtain the following license or licenses  from
    39  the department, depending upon the operation:
    40    (a) cannabinoid grower license;
    41    (b) cannabinoid manufacturer license;
    42    (c) cannabinoid extractor license.
    43    2.  Notwithstanding  subdivision  one  of  this section, those persons
    44  growing, processing or  manufacturing  food  or  food  ingredients  from
    45  industrial  hemp  pursuant to article twenty-nine of this chapter, which
    46  food or food ingredients are generally  recognized  as  safe,  shall  be
    47  subject to regulation and/or licensing by the department.
    48    §  523. Cannabinoid grower licenses. 1. A cannabinoid grower's license
    49  authorizes the acquisition, possession, cultivation  and  sale  of  hemp
    50  extract  grown or used for its cannabinoid content on the licensed prem-
    51  ises of the grower.
    52    2. A person holding a cannabinoid grower's license shall not sell hemp
    53  extract products marketed,  distributed  or  sold  for  its  cannabinoid
    54  content  and  intended  for  human consumption or use without also being
    55  licensed as a manufacturer or extractor  pursuant  to  this  article  or

        A. 7680--A                          8
 
     1  otherwise  permitted  pursuant to section five hundred forty-two of this
     2  article.
     3    3.  Persons growing industrial hemp pursuant to article twenty-nine of
     4  this chapter are not authorized to and shall not sell hemp  extract  for
     5  human  or animal consumption or use, other than as food or a food ingre-
     6  dient that has been generally recognized as safe in accordance with  the
     7  department  or  determined by the state to be safe for human consumption
     8  as food or a food ingredient without also being licensed as  a  manufac-
     9  turer  or  extractor  pursuant  to  this  article or otherwise permitted
    10  pursuant to section five hundred forty-two of this article.
    11    4. A person authorized under article twenty-nine of this chapter as an
    12  industrial hemp grower shall apply  for  a  cannabinoid  grower  license
    13  provided  it  can  demonstrate to the department that its cultivation of
    14  industrial hemp meets all the requirements for hemp  extract  cultivated
    15  under a cannabinoid grower license.
    16    § 524. Cannabinoid manufacturer license. 1. A cannabinoid manufacturer
    17  license  authorizes the licensee's acquisition, possession, and manufac-
    18  ture of hemp extract from a licensed cannabinoid grower  or  cannabinoid
    19  extractor  for  the processing of hemp extract or the production of hemp
    20  extract products marketed, distributed or sold for  cannabinoid  content
    21  and used or intended for human or animal consumption or use.
    22    2.  Notwithstanding  subdivision  one  of  this section, nothing shall
    23  prevent a cannabinoid manufacturer from  manufacturing  industrial  hemp
    24  products not used or intended for human or animal consumption or use.
    25    §  525.  Cannabinoid  extractor  license.   1. A cannabinoid extractor
    26  license authorizes the licensee's  acquisition,  possession,  extraction
    27  and  manufacture  of hemp extract from a licensed cannabinoid grower for
    28  the processing of  hemp  extract  or  the  production  of  hemp  extract
    29  products  marketed, distributed or sold for cannabinoid content and used
    30  or intended for human or animal consumption or use.
    31    2. No cannabinoid extractor licensee shall engage in any  other  busi-
    32  ness  on  the  licensed  premises; except that nothing contained in this
    33  article shall prevent a cannabinoid extractor licensee from  also  being
    34  licensed as a cannabinoid grower on the same premises.
    35    3.  Notwithstanding  subdivisions one and two of this section, nothing
    36  shall prevent a cannabinoid extractor from manufacturing industrial hemp
    37  products not used or intended for human or animal consumption or use.
    38    4. A person authorized under article twenty-nine of this chapter as an
    39  industrial hemp processor shall  qualify  for  a  cannabinoid  extractor
    40  license   provided  it  can  demonstrate  to  the  department  that  its
    41  extraction of industrial  hemp  meets  all  the  requirements  for  hemp
    42  extract under a cannabinoid extractor license.
    43    §  526. Cannabinoid license applications. 1. Persons shall apply for a
    44  cannabinoid grower license, cannabinoid manufacturer  license  and/or  a
    45  cannabinoid  extractor  license by submitting an application upon a form
    46  supplied by the department, providing  all  the  requested  information,
    47  verified  by the applicant or an authorized representative of the appli-
    48  cant.
    49    2. A separate license shall be required for  each  facility  at  which
    50  growing, manufacturing and/or extracting is conducted.
    51    3.  Each  applicant  shall remit with its application the fee for each
    52  requested license.
    53    § 527. Information to be requested in applications  for  licenses.  1.
    54  The department shall have the authority to prescribe the manner and form
    55  in  which  an application must be submitted to the department for licen-
    56  sure under this article.

        A. 7680--A                          9

     1    2. The commissioner is authorized to adopt regulations,  including  by
     2  emergency  rule,  establishing  information which must be included on an
     3  application for licensure  under  this  article.  Such  information  may
     4  include, but is not limited to:  information about the applicant's iden-
     5  tity, including racial and ethnic diversity; information about prior use
     6  of  farmland; ownership and investment information, including the corpo-
     7  rate  structure;  evidence  of  good  moral  character,  including   the
     8  submission  of fingerprints by the applicant to the division of criminal
     9  justice services; information about the premises to be licensed;  finan-
    10  cial statements; and any other information prescribed in regulation.
    11    3.  All  license  applications shall be signed by the applicant (if an
    12  individual), by a managing partner (if a limited liability corporation),
    13  by an officer (if a corporation), or by all partners (if a partnership).
    14  Each person signing such application shall verify it as true  under  the
    15  penalties of perjury.
    16    4. All license or permit applications shall be accompanied by a check,
    17  draft or other forms of payment as the department may require or author-
    18  ize in the amount required by this article for such license or permit.
    19    5.  If there be any change, after the filing of the application or the
    20  granting of a license, in any of the facts required to be set  forth  in
    21  such application, a supplemental statement giving notice of such change,
    22  cost and source of money involved in the change, duly verified, shall be
    23  filed  with the department within ten days after such change. Failure to
    24  do so shall, if willful and deliberate, be cause for revocation  of  the
    25  license.
    26    6. In giving any notice, or taking any action in reference to a licen-
    27  see of a licensed premises, the department may rely upon the information
    28  furnished   in  such  application  and  in  any  supplemental  statement
    29  connected therewith, and such information may be presumed to be correct,
    30  and shall be binding upon a licensee or licensed premises as if correct.
    31  All information required to be furnished in such application or  supple-
    32  mental statements shall be deemed material in any prosecution for perju-
    33  ry,  any proceeding to revoke, cancel or suspend any license, and in the
    34  department's determination to approve or deny the license.
    35    7. The department may, in its discretion, waive the submission of  any
    36  category  of  information  described in this section for any category of
    37  license or permit, provided that it shall not be permitted to waive  the
    38  requirement  for  submission  of any such category of information solely
    39  for an individual applicant or applicants.
    40    § 528. Fees. The department shall have the authority to charge  licen-
    41  sees a biennial license fee. Such fee may be based on the amount of hemp
    42  extract  to be grown, processed, manufactured or extracted by the licen-
    43  see, the gross annual receipts of the licensee for the previous  license
    44  period, or any other factors deemed appropriate by the department.
    45    § 529. Selection criteria. 1. An applicant shall furnish evidence:
    46    (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol
    47  concentration  that  does not exceed a percentage of delta-9-tetrahydro-
    48  cannabinol cannabis set by the commissioner  on a dry  weight  basis  of
    49  combined  leaves  and flowers of the plant of the genus cannabis, or per
    50  volume or weight of cannabis product;
    51    (b) its ability to comply with all applicable  state  laws  and  regu-
    52  lations;
    53    (c) that the applicant is ready, willing and able to properly carry on
    54  the activities for which a license is sought; and

        A. 7680--A                         10
 
     1    (d)  that  the  applicant  is in possession of or has the right to use
     2  land, buildings and equipment sufficient to properly carry on the activ-
     3  ity described in the application.
     4    2.  The department, in considering whether to grant the license appli-
     5  cation, shall consider whether:
     6    (a) it is in the public interest that such license be granted,  taking
     7  into  consideration  whether  the number of licenses will be adequate or
     8  excessive to reasonably serve demand;
     9    (b) the applicant and its managing officers are of good moral  charac-
    10  ter  and  do  not  have  an  ownership  or  controlling interest in more
    11  licenses or permits than allowed by this chapter;
    12    (c) preference shall be given to applicants that are currently farming
    13  in the state and are eligible or  currently  receiving  an  agricultural
    14  assessment pursuant to article twenty-five-AA of this chapter; and
    15    (d)  the applicant satisfies any other conditions as determined by the
    16  department.
    17    3. If the commissioner is not satisfied that the applicant  should  be
    18  issued a license, the commissioner shall notify the applicant in writing
    19  of the specific reason or reasons for denial.
    20    4. The commissioner shall have authority and sole discretion to deter-
    21  mine the number of licenses issued pursuant to this article.
    22    §  530.  Limitations of licensure; duration. 1. No license pursuant to
    23  this article may be issued to a person under the age of eighteen years.
    24    2. The department shall have the authority to limit, by canopy,  plant
    25  count  or  other  means, the amount of hemp extract allowed to be culti-
    26  vated, processed, extracted or sold by a licensee.
    27    3. All licenses under this article shall expire two  years  after  the
    28  date  of  issue and be subject to any rules or limitations prescribed by
    29  the commissioner in regulation.
    30    § 531. License renewal. 1. Each license, issued pursuant to this arti-
    31  cle, may be renewed upon application therefor by the  licensee  and  the
    32  payment of the fee for such license as prescribed by this article.
    33    2.  In  the  case  of  applications  for  renewals, the department may
    34  dispense with the requirements of such statements as it  deems  unneces-
    35  sary in view of those contained in the application made for the original
    36  license,  but in any event the submission of photographs of the licensed
    37  premises shall be  dispensed  with,  provided  the  applicant  for  such
    38  renewal  shall  file  a statement with the department to the effect that
    39  there has been no alteration of such premises since the original license
    40  was issued.
    41    3. The department may make such rules as may be necessary, not  incon-
    42  sistent  with  this  chapter,  regarding  applications  for  renewals of
    43  licenses and permits and the time for making the same.
    44    4. The department shall  provide  an  application  for  renewal  of  a
    45  license issued under this article not less than ninety days prior to the
    46  expiration of the current license.
    47    5. The department may only issue a renewal license upon receipt of the
    48  prescribed  renewal  application  and renewal fee from a licensee if, in
    49  addition to the criteria in section five hundred  twenty-seven  of  this
    50  article, the licensee's license is not under suspension and has not been
    51  revoked.
    52    6.  The  department  shall have the authority to charge applicants for
    53  licensure under this article a non-refundable application fee. Such  fee
    54  may  be  based  on  the  type  of  licensure  sought, cultivation and/or
    55  production volume, or any other factors deemed reasonable and  appropri-
    56  ate by the department to achieve the policy and purpose of this chapter.

        A. 7680--A                         11
 
     1    § 532. Form of license. Licenses issued pursuant to this article shall
     2  specify:
     3    1. the name and address of the licensee;
     4    2. the activities permitted by the license;
     5    3.  the  land,  buildings  and  facilities  that  may  be used for the
     6  licensed activities of the licensee;
     7    4. a unique license number issued by the department to  the  licensee;
     8  and
     9    5.  such other information as the commissioner shall deem necessary to
    10  assure compliance with this chapter.
    11    § 533. Amendments to license and duty to update information  submitted
    12  for  licensing.  1.  Upon application of a licensee to the department, a
    13  license may be amended to allow the  licensee  to  relocate  within  the
    14  state,  to  add or delete licensed activities or facilities, or to amend
    15  the ownership or organizational structure of  the  entity  that  is  the
    16  licensee. The fee for such amendment shall be two hundred fifty dollars.
    17    2.  In the event that any of the information provided by the applicant
    18  changes either while the application is pending or after the license  is
    19  granted,  within  ten days of any such change, the applicant or licensee
    20  shall submit to the department a verified statement  setting  forth  the
    21  change  in  circumstances of facts set forth in the application. Failure
    22  to do so shall, if willful and deliberate, be cause  for  revocation  of
    23  the license.
    24    3.  A  license shall become void by a change in ownership, substantial
    25  corporate change or location  without  prior  written  approval  of  the
    26  commissioner.   The commissioner may promulgate regulations allowing for
    27  certain types of changes in ownership without the need for prior written
    28  approval.
    29    4. For purposes of this section, "substantial corporate change"  shall
    30  mean:
    31    (a) for a corporation, a change of eighty percent or more of the offi-
    32  cers  and/or directors, or a transfer of eighty percent or more of stock
    33  of such corporation, or an existing stockholder obtaining eighty percent
    34  or more of the stock of such corporation; and
    35    (b) for a limited liability company, a change  of  eighty  percent  or
    36  more  of  the  managing  members of the company, or a transfer of eighty
    37  percent or more of ownership interest in said company,  or  an  existing
    38  member obtaining a cumulative of eighty percent or more of the ownership
    39  interest in said company.
    40    §  534.  Record  keeping  and  tracking. 1. The commissioner shall, by
    41  regulation, require each licensee pursuant to this article to adopt  and
    42  maintain  security,  tracking,  record  keeping,  record  retention  and
    43  surveillance systems, relating to all hemp extract  at  every  stage  of
    44  acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
    45  distribution by the licensee, subject to regulations of the  commission-
    46  er.
    47    2.  Every licensee shall keep and maintain upon the licensed premises,
    48  adequate books and records of all transactions  involving  the  licensee
    49  and  sale  of its products, which shall include all information required
    50  by rules promulgated by the department.
    51    3. Each sale shall be recorded separately on a numbered invoice, which
    52  shall have printed thereon the number, the name  of  the  licensee,  the
    53  address of the licensed premises, and the current license number.
    54    4. Such books, records and invoices shall be kept for a period of five
    55  years  and shall be available for inspection by any authorized represen-
    56  tative of the department.

        A. 7680--A                         12
 
     1    § 535. Inspections and ongoing requirements. All  licensees  shall  be
     2  subject to reasonable inspection by the department, in consultation with
     3  the  department  of  health,  and a person who holds a license must make
     4  himself or herself, or an agent thereof, available and present  for  any
     5  inspection required by the department. The department shall make reason-
     6  able  accommodations  so  that  ordinary business is not interrupted and
     7  safety and security procedures are not compromised by the inspection.
     8    § 536. Packaging and labeling of hemp extract. 1. The  department,  in
     9  consultation  with  the  department  of  health, is hereby authorized to
    10  promulgate rules and regulations governing the packaging and labeling of
    11  hemp extract products, sold or possessed for sale in New York state.
    12    2. Such regulations shall include, but not be  limited  to,  requiring
    13  labels warning consumers of any potential impact on human health result-
    14  ing  from the consumption of hemp extract products that shall be affixed
    15  to those products when sold, if such labels are deemed warranted by  the
    16  department.  No  label  may  state  that hemp extract can treat, cure or
    17  prevent any disease without approval pursuant to federal law.
    18    3. Such rules and regulations shall establish a QR code which  may  be
    19  used  in  conjunction  with  similar technology for labels and establish
    20  methods and procedures for  determining,  among  other  things,  serving
    21  sizes  for  hemp  extract products, active cannabinoid concentration per
    22  serving size, number of servings per container, and the growing  region,
    23  state  or  country  of  origin if not from the United States. Such regu-
    24  lations shall also require a supplement  fact  panel  that  incorporates
    25  data regarding serving sizes and potency thereof.
    26    4.  The  packaging,  sale,  or  possession by any licensee of any hemp
    27  product intended for human or animal consumption or use not  labeled  or
    28  offered  in conformity with rules and regulations promulgated in accord-
    29  ance with this section shall be grounds for the imposition  of  a  fine,
    30  and/or the suspension, revocation or cancellation of a license.
    31    §  537. Provisions governing the growing, manufacturing and extracting
    32  of hemp extract. 1. No  licensed  cannabinoid  grower,  manufacturer  or
    33  extractor  shall sell, or agree to sell or deliver in the state any hemp
    34  extract products, as the  case  may  be,  except  in  sealed  containers
    35  containing  quantities  in  accordance  with  size standards pursuant to
    36  rules adopted by the department.  Such  containers  shall  have  affixed
    37  thereto such labels as may be required by the rules of the department.
    38    2.  Licensed cannabinoid growers shall be prohibited from using pesti-
    39  cides.
    40    3. All hemp extract products shall be extracted  and  manufactured  in
    41  accordance  with  good  manufacturing processes, pursuant to Part 111 or
    42  117 of Title 21 of the Code of Federal Regulations as  may  be  modified
    43  and decided upon by the commissioner in regulation.
    44    4.  Within  thirty  days  of  the  effective date of this article, the
    45  department shall approve the  manufacture,  distribution,  and  sale  of
    46  beverages  containing  no more than twenty milligrams of cannabidiol per
    47  twelve ounce beverage. The hemp extract used in such beverages shall  be
    48  grown,  extracted and manufactured in the state of New York. The depart-
    49  ment shall issue guidance on the label,  warning,  point  of  sale,  and
    50  advertising for such beverages.
    51    5.  Terpenes  derived  from the hemp plant are generally recognized as
    52  safe.
    53    § 538. Laboratory  testing.  1.  Every  cannabinoid  manufacturer  and
    54  cannabinoid  extractor  shall contract with an independent laboratory to
    55  test the hemp extract products produced by the licensed manufacturer  or
    56  extractor.  The  commissioner,  in consultation with the commissioner of

        A. 7680--A                         13
 
     1  health, shall approve the laboratory and  require  that  the  laboratory
     2  report  testing  results in a manner determined by the commissioner. The
     3  commissioner is authorized to issue regulations requiring the laboratory
     4  to perform certain tests and services.
     5    2.  Cannabinoid  manufacturers  and  cannabinoid extractors shall make
     6  laboratory test reports  available  to  persons  holding  a  cannabinoid
     7  permit  pursuant  to  section five hundred forty-two of this article for
     8  all cannabis products manufactured by the licensee.
     9    3. On-site laboratory testing by licensees  is  permissible;  however,
    10  such  testing  shall  not  be  certified  by the department and does not
    11  exempt the licensee from the requirements of quality  assurance  testing
    12  at a testing laboratory pursuant to this section.
    13    §  539.  Advertising.  The department shall promulgate rules and regu-
    14  lations governing the advertising of hemp extract and any other  related
    15  products or services as determined by the commissioner.
    16    § 540. Research. 1. The department shall promote research and develop-
    17  ment  through  public-private partnerships to bring new hemp extract and
    18  industrial hemp derived products to market within the state.
    19    2. The commissioner may develop and carry out research programs  which
    20  may  include  programs  at the New York state college of agriculture and
    21  life sciences, pursuant to section fifty-seven  hundred  twelve  of  the
    22  education  law  and/or  New  York state university research institutions
    23  relating to industrial hemp and hemp extract.
    24    § 541. Regulations. The commissioner shall make regulations to  imple-
    25  ment this article.
    26    §  542.  Cannabinoid  permit.  The  department is hereby authorized to
    27  issue cannabinoid permits to retailers,  wholesalers,  and  distributors
    28  authorizing  them  to  sell cannabis products derived from hemp extract.
    29  The commissioner shall have the authority to set fees for  such  permit,
    30  to  establish  the period during which such permit is authorized, and to
    31  make rules and regulations, including emergency regulations,  to  imple-
    32  ment this section.
    33    § 543. New York hemp product. The commissioner may establish and adopt
    34  official grades and standards for hemp extract and hemp extract products
    35  as  he  or  she  may deem advisable, which are produced for sale in this
    36  state and, from time to time, may amend or modify such grades and stand-
    37  ards.
    38    § 544. Penalties and violations of this article.  Notwithstanding  the
    39  provision  of  any  law  to the contrary, the failure to comply with the
    40  requirements of this article,  the  rules  and  regulations  promulgated
    41  thereunder,  may  be  punishable by a fine of not more than one thousand
    42  dollars for a first violation; not more than five thousand dollars for a
    43  second violation; and not more than ten thousand  dollars  for  a  third
    44  violation and each subsequent violation thereafter.
    45    § 545. Hemp workgroup. The commissioner shall appoint a New York state
    46  industrial  hemp  and  hemp  extract workgroup, composed of researchers,
    47  producers, processors, manufacturers and  trade  associations,  to  make
    48  recommendations for the industrial hemp and hemp extract programs, state
    49  and  federal  policies and policy initiatives, and opportunities for the
    50  promotion and marketing of industrial hemp and hemp extract as  consist-
    51  ent  with federal and state laws, rules and regulations, which workgroup
    52  shall continue for such time as the commissioner deems appropriate.
    53    § 546. Prohibitions. Except as authorized in this article,  the  manu-
    54  facturing  of  hemp  extract  for  human  or  animal consumption and the
    55  distribution and/or sale thereof is prohibited in this state unless  the
    56  manufacturer  is  licensed under this article. Hemp extract and products

        A. 7680--A                         14

     1  derived therefrom for human and animal consumption produced outside  the
     2  state  shall  not  be distributed or sold in this state unless they meet
     3  all standards and requirements established for such product manufactured
     4  in  the state under this article and its rules and regulations as deter-
     5  mined by the department.
     6    § 547. Severability. If any provision of this article or the  applica-
     7  tion  thereof to any person or circumstances is held invalid, such inva-
     8  lidity shall not affect other provisions or applications of the  article
     9  which  can be given effect without the invalid provision or application,
    10  and to this end the provisions of this article are declared to be sever-
    11  able.
    12    § 11. This act shall take effect on the ninetieth day after  it  shall
    13  have become a law.
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