Bill Text: NY S06612 | 2019-2020 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO AGRICULTURE [S06612 Detail]
Download: New_York-2019-S06612-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6612 2019-2020 Regular Sessions IN SENATE June 20, 2019 ___________ Introduced by Sen. METZGER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the agriculture and markets law and the public health law, in relation to the growth of industrial hemp and the regulation of hemp extract; and to repeal certain provisions of the agriculture and markets 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 and a new 3 subdivision 3 is added to read as 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 3. "Hemp extract" means any product made or derived from industrial 10 hemp, including the seeds thereof and all derivatives, extracts, canna- 11 binoids, isomers, acids, salts, and salts of isomers, whether growing or 12 not, with a delta-9 tetrahydrocannabinol concentration of not more than 13 an amount determined by the department in regulation, for the purposes 14 of extracting, processing and manufacturing such product used or 15 intended for human or animal consumption on use for its cannabinoid 16 content, as determined by the commissioner in regulation. Provided, 17 however when such product is packaged or offered for sale that such 18 concentration is not more than 0.3 percent delta-9 tetrahydrocannabinol. 19 Hemp extract excludes industrial hemp used or intended exclusively for 20 an industrial purpose and those food and/or food ingredients that are 21 generally recognized as safe by the department, and shall not be regu- 22 lated as hemp extract within the meaning of this article. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13458-01-9S. 6612 2 1 § 2. Section 506 of the agriculture and markets law, as amended by 2 section 1 of part OO of chapter 58 of the laws of 2017, is amended to 3 read as follows: 4 § 506. Growth, sale, distribution, transportation and processing of 5 industrial hemp [and] products derived from such hemp, and hemp extract, 6 permitted. [Notwithstanding any provision of law to the contrary, indus-7trial] 1. Industrial hemp and products derived from such hemp are agri- 8 cultural products which may be grown, produced [and], possessed [in the9state, and], sold, distributed, transported [or] and/or processed 10 [either] in [or out of] state [as part of agricultural pilot programs11pursuant to authorization under federal law and the provisions of this12article] pursuant to authorization under federal law and/or the 13 provisions of this article. [Notwithstanding any provision of law to14the contrary restricting the growing or cultivating, sale, distribution,15transportation or processing of industrial hemp and products derived16from such hemp, and subject to authorization under federal law, the] 17 2. The commissioner may authorize the growing or cultivating of indus- 18 trial hemp as part of agricultural pilot programs conducted by the 19 department and/or an institution of higher education to study the growth 20 and cultivation, sale, distribution, transportation and processing of 21 such hemp [and], products derived from such hemp, and hemp extract, 22 provided that the sites and programs used for growing or cultivating 23 industrial hemp are certified by, and registered with, the department. 24 3. The industrial hemp used for research pursuant to this section 25 shall be sourced from authorized New York state industrial hemp produc- 26 ers. The research partner may obtain an exemption for only grain or 27 fiber from this requirement upon a satisfactory showing to the depart- 28 ment that a suitable variety of industrial hemp for the research project 29 is not grown in New York and/or the use of New York sourced hemp is not 30 practicable for the project. Hemp extract can only be sourced from 31 authorized New York state industrial hemp producers, unless otherwise 32 authorized by the department. 33 4. Nothing in this section shall limit the jurisdiction of the depart- 34 ment under any other article of this chapter. 35 § 3. Section 507 of the agriculture and markets law is REPEALED and a 36 new section 507 is added to read as follows: 37 § 507. Licensing; fees. 1. No person shall grow, process, extract, 38 manufacture, produce, distribute and/or sell industrial hemp, products 39 derived from industrial hemp, or hemp extract, in the state unless (a) 40 licensed biennially by the commissioner or (b) authorized by the commis- 41 sioner as part of an agricultural research pilot program established 42 under this article. 43 2. Application for a license to grow industrial hemp shall be made 44 upon a form prescribed by the commissioner, accompanied by a per-acre 45 license fee and a non-refundable application fee up to five hundred 46 dollars. 47 3. Application for a license to process, extract, and/or manufacture 48 hemp extract shall be made upon a form prescribed by the commissioner, 49 accompanied by a license fee, which may be based upon the amount of hemp 50 extract to be processed, extracted and/or manufactured and a non-refund- 51 able application fee up to five hundred dollars. 52 4. The applicant shall furnish evidence of his or her good character, 53 experience and competency, that the applicant has adequate facilities, 54 equipment, process controls, testing capability and security to grow 55 hemp.S. 6612 3 1 5. A renewal application shall be submitted to the commissioner at 2 least sixty days prior to the commencement of the next license period. 3 § 4. Section 508 of the agriculture and markets law is REPEALED and a 4 new section 508 is added to read as follows: 5 § 508. Compliance action plan. If the commissioner determines, after 6 notice and an opportunity for hearing, that a licensee has negligently 7 violated a provision of and/or a regulation promulgated pursuant to this 8 article, that licensee shall be required to comply with a corrective 9 action plan established by the commissioner to correct the violation by 10 a reasonable date and to periodically report to the commissioner with 11 respect to the licensee's compliance with this article for a period of 12 no less than the next two calendar years following the commencement date 13 of the compliance action plan. The provisions of this section shall not 14 be applicable to research partners conducting hemp research pursuant to 15 a research partner agreement, the terms of which shall control. 16 § 5. Section 509 of the agriculture and markets law is REPEALED and a 17 new section 509 is added to read as follows: 18 § 509. Granting, suspending or revoking licenses. The commissioner 19 may decline to grant a new license, may decline to renew a license, may 20 suspend or revoke a license already granted after due notice and oppor- 21 tunity for hearing whenever he or she finds that: 22 1. any statement contained in an application for an applicant or 23 licensee is or was false or misleading; 24 2. the applicant or licensee does not have good character, the 25 required experience and/or competency, adequate facilities, equipment, 26 process controls, testing capability and/or security to produce hemp or 27 products derived from hemp, including hemp extract; 28 3. the applicant or licensee has failed or refused to produce any 29 records or provide any information demanded by the commissioner reason- 30 ably related to the administration and enforcement of this article; or 31 4. the applicant or licensee, or any officer, director, partner, hold- 32 er of ten percent of the voting stock, or any other person exercising 33 any position of management or control has failed to comply with any of 34 the provisions of this article or rules and regulations promulgated 35 pursuant thereto. 36 § 6. Section 510 of the agriculture and markets law is REPEALED and a 37 new section 510 is added to read as follows: 38 § 510. Regulations. The commissioner may develop regulations consist- 39 ent with the provisions of this article for the growing and cultivation, 40 processing, extracting, manufacturing, sale, distribution, and transpor- 41 tation of industrial hemp grown in the state and hemp extract processed 42 and/or manufactured in the state, including: 43 1. the authorization or licensing of any person who may: acquire or 44 possess industrial hemp plants or seeds; grow or cultivate industrial 45 hemp plants; and/or sell, purchase, distribute, or transport such indus- 46 trial hemp plants, plant parts, or seeds; 47 2. maintaining relevant information regarding land on which industrial 48 hemp is produced within the state, including the legal description of 49 the land, for a period of not less than three calendar years; 50 3. the procedure for testing of industrial hemp produced in the state 51 for delta-9-tetrahydrocannabinol levels, using a representative non-de- 52 carboxylated sample of flowers and leaves from the whole plant or other 53 similarly reliable methods; 54 4. the procedure for effective disposal of industrial hemp plants or 55 products derived from hemp that are produced in violation of this arti- 56 cle;S. 6612 4 1 5. a procedure for conducting at least a random sample of industrial 2 hemp producers to verify that hemp is not produced in violation of this 3 article; 4 6. methods of producing, processing, and packaging hemp extract; 5 conditions of sanitation, environmental and energy standards, and stand- 6 ards of ingredients, quality, and identity of hemp extract products 7 cultivated, processed, packaged or sold by licensees; 8 7. any required security measures; and 9 8. such other and further regulation as the commissioner deems appro- 10 priate or necessary. 11 § 7. Section 511 of the agriculture and markets law is REPEALED and a 12 new section 511 is added to read as follows: 13 § 511. Prohibitions. 1. Except as authorized by state law, and regu- 14 lations promulgated thereunder, the growth, cultivation, processing, 15 sale, and/or distribution of industrial hemp is prohibited. 16 2. Except as authorized in this article, the manufacturing of hemp 17 extract for human or animal consumption and the distribution and/or sale 18 thereof is prohibited in this state unless the manufacturer is licensed 19 under this article. Hemp extract and products derived therefrom for 20 human and animal consumption produced outside the state may not be 21 distributed or sold in this state unless they meet all standards and 22 requirements established for such product manufactured in the state 23 under this article and its rules and regulations as determined by the 24 department. 25 § 8. Section 512 of the agriculture and markets law is REPEALED and a 26 new section 512 is added to read as follows: 27 § 512. Industrial hemp data collection and best farming practices. 28 The commissioner shall have the power to collect and publish data and 29 research concerning, among other things, the growth, cultivation, 30 production and processing methods of industrial hemp and products 31 derived from industrial hemp and work with the New York state college of 32 agriculture and life science at Cornell pursuant to section fifty-seven 33 hundred twelve of the education law and the Cornell cooperative exten- 34 sion pursuant to section two hundred twenty-four of the county law to 35 promote best farming practices for industrial hemp which are compatible 36 with state water quality and other environmental objectives. 37 § 9. Sections 513 and 514 of the agriculture and markets law are 38 REPEALED and a new section 513 is added to read as follows: 39 § 513. Aids to enforcement. 1. The commissioner shall have full access 40 to all premises, buildings, factories, farms, vehicles, cars, boats, 41 airplanes, vessels, containers, packages, barrels, boxes, and/or cans 42 for the purpose of enforcing the provisions of this article. The commis- 43 sioner may, at such locations, examine industrial hemp and hemp products 44 and may open any package and/or container reasonably believed to contain 45 industrial hemp or hemp products, including hemp extract to determine 46 whether such industrial hemp or hemp products follow applicable law or 47 regulation. 48 2. A search warrant shall be issued by any court to which application 49 is made therefor, whenever it shall be made to appear to such court that 50 a licensee has: refused to permit any industrial hemp or hemp extract to 51 be inspected or samples taken therefrom; refused to permit access to any 52 premises, or place where licensed activities are conducted; and/or 53 refused or prevented access thereto by any inspector of the department 54 and that such inspector has reasonable grounds to believe that such 55 person has any industrial hemp or hemp extract in his or her possession, 56 or under his or her control and/or is in violation of the provisions orS. 6612 5 1 regulations of this article. In such a case, a warrant shall be issued 2 in the name of the people, directed to a police officer, commanding him 3 or her to: (a) search any place of business, factory, building, prem- 4 ises, or farm where licensed activities have occurred and any vehicle, 5 boat, vessel, container, package, barrel, box, tub or can, containing, 6 or believed to contain industrial hemp or hemp extract in the possession 7 or under the control of any person who shall refuse to allow access to 8 such hemp for inspection or sampling, (b) permit the inspection and 9 sampling of any industrial hemp or hemp extract found in the execution 10 of the warrant, as the officer applying for the search warrant shall 11 designate when the same is found, by an inspector or a department offi- 12 cial authorized by the commissioner or by this chapter, and/or (c) 13 permit access to any place where access is refused or prevented, and to 14 allow and enable a department inspector or other department official to 15 conduct an inspection of the place. The provisions of article six 16 hundred ninety of the criminal procedure law shall apply to such warrant 17 as far as applicable thereto. The officer to whom the warrant is deliv- 18 ered shall make a return in writing of his or her proceedings thereunto 19 to the court which issued the same. 20 3. The commissioner may quarantine industrial hemp or hemp extract 21 when he or she has reason to believe that such commodity does not meet 22 the definition thereof, set forth in subdivision one of section five 23 hundred five of this article, or is otherwise in violation of or does 24 not meet a standard set forth in, applicable law or regulation. The 25 quarantine may by the issuance of an order directing the owner or custo- 26 dian of industrial hemp not to distribute, dispose of, or move that 27 commodity without the written permission of the commissioner. The 28 commissioner may also quarantine a product by placing a tag or other 29 appropriate marking thereon or adjacent thereto that provides and 30 requires that such product must not be distributed, disposed of, or 31 moved without his or her written permission, or may quarantine a product 32 by otherwise informing the owner or custodian thereof that such condi- 33 tion must be complied with. 34 4. The commissioner may seize industrial hemp or hemp extract by 35 taking physical possession of industrial hemp or hemp extract when he or 36 she has substantial evidence to believe that such commodity does not 37 meet the definition thereof, set forth in subdivision one of section 38 five hundred five of this article, or is otherwise in violation of, or 39 does not meet a standard set forth in, applicable law or regulation. 40 5. Subsequent to quarantining or seizing industrial hemp or hemp 41 extract as authorized in subdivisions three and four of this section, 42 the commissioner shall promptly give the owner or custodian thereof an 43 opportunity to be heard to show cause why such industrial hemp or hemp 44 extract should not be ordered destroyed. The commissioner shall, there- 45 after, consider all the relevant evidence and information presented and 46 shall make a determination whether such industrial hemp or hemp extract 47 should be ordered to be destroyed; that determination may be reviewed as 48 provided for in article seventy-eight of the civil practice law and 49 rules. 50 § 10. The agriculture and markets law is amended by adding nine new 51 sections 515, 516, 517, 518, 519, 520, 521, 522 and 523 to read as 52 follows: 53 § 515. Limitations of licensure; duration. 1. No license pursuant to 54 this article may be issued to a person under the age of eighteen years.S. 6612 6 1 2. The department shall have the authority to limit, by canopy, plant 2 count or other means, the amount of hemp extract allowed to be culti- 3 vated, processed, extracted or sold by a licensee. 4 3. All licenses under this article shall expire two years after the 5 date of issue and be subject to any rules or limitations prescribed by 6 the commissioner in regulation. 7 § 516. License renewal. 1. Each license, issued pursuant to this arti- 8 cle, may be renewed upon application therefor by the licensee and the 9 payment of the fee for such license as prescribed by this article. 10 2. The department may make such rules as may be necessary, not incon- 11 sistent with this chapter, regarding applications for renewals of 12 licenses and permits and the time for making the same. 13 3. The department shall have the authority to charge applicants for 14 licensure under this article a non-refundable application fee. Such fee 15 may be based on the type of licensure sought, cultivation and/or 16 production volume, or any other factors deemed reasonable and appropri- 17 ate by the department to achieve the policy and purpose of this chapter. 18 § 517. Inspections and ongoing requirements. All licensees shall be 19 subject to reasonable inspection by the department, in consultation with 20 the department of health, and a person who holds a license must make 21 himself or herself, or an agent thereof, available and present for any 22 inspection required by the department. The department shall make reason- 23 able accommodations so that ordinary business is not interrupted and 24 safety and security procedures are not compromised by the inspection. 25 § 518. Packaging and labeling of hemp extract. 1. The department, in 26 consultation with the department of health, is hereby authorized to 27 promulgate rules and regulations governing the packaging and labeling of 28 hemp extract products, sold or possessed for sale in New York state. 29 2. Such regulations shall include, but not be limited to, requiring 30 labels warning consumers of any potential impact on human health result- 31 ing from the consumption of hemp extract products that shall be affixed 32 to those products when sold, if such labels are deemed warranted by the 33 department. No label may state that hemp extract can treat, cure or 34 prevent any disease without approval pursuant to federal law. 35 3. Such rules and regulations shall establish a QR code which may be 36 used in conjunction with similar technology for labels and establish 37 methods and procedures for determining, among other things, serving 38 sizes for hemp extract products, active cannabinoid concentration per 39 serving size, number of servings per container, and the growing region, 40 state or country of origin if not from the United States. Such regu- 41 lations shall also require a supplement fact panel that incorporates 42 data regarding serving sizes and potency thereof. 43 4. The packaging, sale, or possession by any licensee of any hemp 44 product intended for human or animal consumption or use not labeled or 45 offered in conformity with rules and regulations promulgated in accord- 46 ance with this section shall be grounds for the imposition of a fine, 47 and/or suspension, revocation or cancellation of a license. 48 § 519. Provisions governing the growing, manufacturing and extracting 49 of hemp extract. 1. Cultivators of hemp extract shall comply with plant 50 cultivation regulations, standards, and guidelines issued by the depart- 51 ment, in consultation with the department of environmental conservation. 52 Such regulations, standards, and guidelines shall be guided by sustaina- 53 ble farming principles and practices such as organic, regenerative, and 54 integrated pest management models, and shall restrict to the extent 55 practicable, the use of pesticides, herbicides and fungicides to thoseS. 6612 7 1 which are botanical and/or biological pursuant to the federal and state 2 organic agriculture rules and regulations. 3 2. The nonpharmaceutical or nonmedical production, marketing, sale or 4 distribution of beverages, food, or food products within the state that 5 contain hemp or any part of the hemp plant, including the seeds and all 6 naturally occurring cannabinoids, compounds, concentrates, extracts, 7 isolates, terpenes, resins, isomers, acids, salts, salts of isomers or 8 cannabidiol derivatives, may not be restricted or prohibited within the 9 state based solely on the inclusion of hemp or any part of the hemp 10 plant. Upon request of a processor, manufacturer or seller of beverages, 11 food or food products that contain hemp or any part of such hemp plant, 12 such as terpenes, that are generally recognized as safe, the department 13 shall issue a declaration that such products shall not be regulated as 14 hemp extract. 15 3. All hemp extract products shall be extracted and manufactured in 16 accordance with good manufacturing processes, pursuant to Part 111 or 17 117 of Title 21 of the Code of Federal Regulations as may be modified 18 and decided upon by the commissioner in regulation. 19 § 520. Laboratory testing. 1. The department in consultation with the 20 department of health shall issue regulations regarding laboratory 21 requirements of hemp extract licensees. 22 2. Every hemp extract licensee shall contract with an independent 23 laboratory to test the hemp extract products produced by the licensee. 24 3. On-site laboratory testing by licensees is permissible; however, 25 such testing shall not be certified by the department and does not 26 exempt the licensee from the requirements of quality assurance testing 27 pursuant to this section. 28 § 521. Penalties and violations of this article. Notwithstanding the 29 provision of any law to the contrary, the failure to comply with the 30 requirements of this article, the rules and regulations promulgated 31 thereunder, after notice and opportunity to be heard, may be punishable 32 by a fine of not more than one thousand dollars for a first violation; 33 not more than five thousand dollars for a second violation; and not more 34 than ten thousand dollars for a third violation and each subsequent 35 violation thereafter. 36 § 522. Hemp workgroup. The commissioner shall appoint a New York state 37 industrial hemp and hemp extract workgroup, composed of researchers, 38 producers, processors, manufacturers and trade associations, to make 39 recommendations for the industrial hemp and hemp extract programs, state 40 and federal policies and policy initiatives, and opportunities for the 41 promotion and marketing of industrial hemp and hemp extract as consist- 42 ent with federal and state laws, rules and regulations, which workgroup 43 shall continue for such time as the commissioner deems appropriate. 44 § 523. Severability. If any provision of this article or the applica- 45 tion thereof to any person or circumstances is held invalid, such inva- 46 lidity shall not affect other provisions or applications of the article 47 which can be given effect without the invalid provision or application, 48 and to this end the provisions of this article are declared to be sever- 49 able. 50 § 11. Subdivision 21 of section 3302 of the public health law, as 51 added by chapter 878 of the laws of 1972 and as renumbered by chapter 52 537 of the laws of 1998, is amended to read as follows: 53 21. "Marihuana" means all parts of the plant of the genus Cannabis, 54 whether growing or not; the seeds thereof; the resin extracted from any 55 part of the plant; and every compound, manufacture, salt, derivative, 56 mixture, or preparation of the plant, its seeds or resin. It does notS. 6612 8 1 include the mature stalks of the plant, fiber produced from the stalks, 2 oil or cake made from the seeds of the plant, any other compound, manu- 3 facture, salt, derivative, mixture, or preparation of the mature stalks 4 (except the resin extracted therefrom), fiber, oil, or cake, or the 5 sterilized seed of the plant which is incapable of germination. "Mari- 6 huana" shall not include industrial hemp as defined in subdivision one 7 of section five hundred five of the agriculture and markets law. 8 § 12. This act shall take effect on January 1, 2020.