NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9310A
SPONSOR: Lupardo
 
TITLE OF BILL: An act to amend the agriculture and markets law, in
relation to the sale, distribution, transportation and processing of
industrial hemp
 
PURPOSE:
The purpose of this bill is to update the state's Industrial Hemp Pilot
Research Program with changes that have been allowed by the federal
government.
 
SUMMARY OF PROVISIONS:
§ 1 Amends § 506 of the Agriculture and Markets Law by permitting the
sale, distribution, transportation and processing of industrial hemp and
products derived from such hemp. This section also classifies such
products as agricultural products under the provisions of the article.
§ 2 amends § 507 of the Agriculture and Markets Law by clarifying that
the sale, distribution, transportation and processing of industrial hemp
is still prohibited in the state unless it is part of a pilot research
program.
§ 3 amends § 508 of the Agriculture and Markets Law by directing the
Department of Agriculture and Markets to update the state's Industrial
Hemp Pilot Research Program regulations to allow for the sale, distrib-
ution, transportation and processing of industrial hemp and products
derived from such hemp.
§ 4 amends the Agriculture and Markets Law by adding § 509 requiring the
Commissioner of Agriculture and Markets in cooperation with the Commis-
sioner of Economic Development to file a written report with the Gover-
nor, the Majority and Minority Leaders of the Senate and the Speaker and
Minority Leader of the Assembly on January 1, 2018 on the status of the
state's Industrial Hemp. Pilot Research Program.
§ 5 is the effective date.
 
JUSTIFICATION:
The federal government included changes in the Omnibus Appropriations
bill of 2016 to State Industrial Hemp Pilot Research Programs. These
changes allow for expansion of the pilot programs that were authorized
by § 7606 of the 2014 Farm Bill passed by Congress. This new provision
allows for the transportation, distribution, sale and processing of hemp
grown or cultivated in accordance with state industrial hemp pilot
research programs.
Since the New York State Legislature passed legislation to create an
Industrial Hemp Pilot Research program in 2014, farmers and research
institutions have expressed tremendous interest in participating in the
program and in the potential of industrial hemp as a major agricultural
crop in New York State. As the program has moved forward, participants
have expressed their desire to pursue the marketing and final products
of industrial hemp. By adopting these changes, New York will be in the
position to become a national leader in the growing industrial hemp
industry once it is fully legalized by the federal government.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law; provided; however, that effective immediately, the addi-
tion, amendment and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized and
directed to be made and completed on or before such effective date.
STATE OF NEW YORK
________________________________________________________________________
9310--A
IN ASSEMBLY
February 17, 2016
___________
Introduced by M. of A. LUPARDO, GOTTFRIED, BRINDISI, BENEDETTO, STIRPE,
SKARTADOS, BLAKE, CROUCH, WOERNER, WALTER, CAHILL, MAGEE, RUSSELL --
Multi-Sponsored by -- M. of A. GLICK, McLAUGHLIN, PALMESANO, ROBINSON,
SIMON, STECK -- read once and referred to the Committee on Agriculture
-- 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
sale, distribution, transportation and processing of industrial hemp
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 506 of the agriculture and markets law, as added by
2 chapter 524 of the laws of 2014, is amended to read as follows:
3 § 506. Growth, sale, distribution, transportation and processing of
4 industrial hemp and products derived from such hemp permitted. Notwith-
5 standing any provision of law to the contrary, industrial hemp [is an]
6 and products derived from such hemp are agricultural [product] products
7 which may be grown, produced and possessed in the state, and sold,
8 distributed, transported or processed either in or out of state as part
9 of [an] agricultural pilot [program] programs pursuant to authorization
10 under federal law and the provisions of this article.
11 Notwithstanding any provision of law to the contrary restricting the
12 growing or cultivating, sale, distribution, transportation or processing
13 of industrial hemp and products derived from such hemp, and subject to
14 authorization under federal law, the commissioner may authorize no more
15 than [up to] ten sites for the growing or cultivating of industrial hemp
16 as part of [an] agricultural pilot [program] programs conducted by the
17 department and/or an institution of higher education to study the growth
18 and cultivation, sale, distribution, transportation and processing of
19 such hemp and products derived from such hemp provided that the sites
20 and programs used for growing or cultivating industrial hemp are certi-
21 fied by, and registered with, the department.
22 § 2. Section 507 of the agriculture and markets law, as added by chap-
23 ter 524 of the laws of 2014, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13736-04-6
A. 9310--A 2
1 § 507. Prohibitions. [The] Except as authorized by federal and state
2 law, and regulations promulgated pursuant to section five hundred eight
3 of this article, the sale, distribution or export of industrial hemp
4 grown or cultivated pursuant to this article is prohibited.
5 § 3. Section 508 of the agriculture and markets law, as added by chap-
6 ter 524 of the laws of 2014, is amended to read as follows:
7 § 508. Regulations. In cooperation with the commissioner of health and
8 the commissioner of criminal justice services, the commissioner shall
9 develop regulations consistent with the provisions of this article for
10 the approval of agricultural pilot programs for the growing and culti-
11 vation, sale, distribution, transportation or processing of industrial
12 hemp and products derived from such hemp, including, but not limited to:
13 (a) the authorization of any person who as part of such [program]
14 programs may: acquire or possess industrial hemp plants or hemp seeds;
15 grow or cultivate industrial hemp plants; and/or, sell, purchase,
16 distribute, transport or process such plants, seeds and products; and
17 (b) the [disposition] disposal, if necessary, of industrial hemp after
18 it has been grown or cultivated and studied.
19 § 4. The agriculture and markets law is amended by adding a new
20 section 509 to read as follows:
21 § 509. Industrial hemp reporting. The commissioner, in cooperation
22 with the commissioner of economic development, shall file a written
23 report with the governor, the majority and minority leaders of the
24 senate and the speaker and minority leader of the assembly on January
25 first, two thousand eighteen concerning the status of agricultural pilot
26 programs developed pursuant to this article. Such report shall include,
27 but not be limited to, the success of such programs in cultivating,
28 marketing, processing and selling industrial hemp and products derived
29 from such hemp, and the opportunities and barriers to developing hemp
30 related businesses and jobs.
31 § 5. This act shall take effect on the thirtieth day after it shall
32 have become a law; provided, however, that effective immediately, the
33 addition, amendment and/or repeal of any rule or regulation necessary
34 for the implementation of this act on its effective date are authorized
35 and directed to be made and completed on or before such effective date.