Regulate Hemp and CBD

Section 1. Articles 29 and 29-A of the agriculture and markets law, article 29-A as added by a chapter of the laws of 2019 amending the agriculture and markets law relating to the growth of industrial hemp and the regulation of hemp extract, as proposed in legislative bills numbers S.6184-A and A.7680-A, are REPEALED and a new article 29 is added to read as follows:

ARTICLE 29

GROWTH OF HEMP Section 505. Definitions.

506. Growth, sale, distribution, transportation and processing

of hemp and products derived from such hemp permitted.

507. Prohibitions.

508. Regulations.

509. Hemp grower's authorization, license; fees; requirements.

510. Granting, suspending or revoking licenses.

511. Proceedings to review.

512. Transferability; change in ownership or control.

513. Access to criminal history information through the division

of criminal justice services.

514. Records.

515. Aids to enforcement.

516. Compliance action plan.

517. Penalties.

518. Remedies.

519. Hemp economic development.

520. Hemp data collection and best farming practices.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD11646-11-0

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521. Severability.

§ 505. Definitions. As used in this article:

1. "Hemp" means the plant Cannabis sativa L. and any part of such plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of a percent on a dry weight basis.

2. "Institution of higher education" means:

(a) any of the colleges and universities described in subdivision three of section three hundred fifty-two of the education law;

(b) a college established and operated pursuant to the provisions of article one hundred twenty-six of the education law, and providing twoyear or four-year post-secondary programs in general and technical educational subjects and receiving financial assistance from the state;

(c) the city university of New York, as defined in subdivision two of section sixty-two hundred two of the education law; and

(d) a not-for-profit two or four-year university or college given the power to confer associate, baccalaureate or higher degrees in this state by the legislature or by the regents under article five of the education law.

3. "License" means a license, permit or registration issued pursuant to this article.

4. "Processing of hemp in connection with its growing and cultivation" means the growing, cultivation, cloning, harvesting, drying, curing, grinding and trimming of hemp plants.

§ 506. Growth, sale, distribution, transportation and processing of hemp and products derived from such hemp permitted. 1. Notwithstanding any provision of law to the contrary, hemp and products derived from such hemp are agricultural products which may be grown, cultivated, produced, processed, manufactured, possessed in the state, and sold, distributed, or transported in the state, pursuant to authorization under federal law, the provisions of this article, article thirty-three-B of the public health law or any other state law.

2. Notwithstanding any provision of law to the contrary restricting the growing or cultivating, processing, manufacturing, sale, distribution or transportation of hemp and products derived from such hemp, and subject to authorization of the growth and cultivation of hemp under federal law, the commissioner may: (a) authorize the growing, cultivating, processing and manufacturing of hemp as part of agricultural pilot programs conducted by the department or an institution of higher education to study the growth and cultivation, sale, distribution, transportation, processing and manufacturing of such hemp and products derived from such hemp provided that the sites and programs used for growing or cultivating hemp are authorized by, and registered with, the department; and (b) license the growth and cultivation of hemp, including the processing of hemp in connection with its growing and cultivation, and the sale of hemp plants or hemp seed.

§ 507. Prohibitions. 1. Except as authorized by federal and state law, and rules and regulations promulgated thereunder, the growth, cultivation, sale, distribution or export of hemp is prohibited.

2. Hemp produced outside the state and sold or distributed in the state shall meet all standards established for hemp under state law, rules and regulations.

§ 508. Regulations. The commissioner is hereby authorized to adopt, amend, promulgate and issue rules and regulations consistent with the provisions of this article, including, but not limited to:

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1. The authorization or licensing of any person who may acquire or possess hemp plants or viable seeds, grow or cultivate hemp plants, or sell, purchase, distribute, or transport such plants, plant parts, or seeds;

2. Reasonable license fees and duration of licensure, which shall be at least three years;

3. Maintaining relevant information regarding land on which hemp is produced within the state, including the legal description of the land and its latitude and longitude, for a period of not less than three calendar years;

4. The procedure for testing of hemp produced in the state for delta-9 tetrahydrocannabinol levels, using post decarboxylation, other similarly reliable methods, or any other method authorized by the United States department of agriculture;

5. Procedures for effective disposal of hemp plants or products derived from hemp that are produced in violation of this article or its rules and regulations;

6. Procedures for conducting sampling of hemp to verify that hemp is not produced in violation of this article or its rules and regulations;

7. Such other matters that are necessary or appropriate for the state to obtain approval from the United States department of agriculture to assume primary regulatory authority over the production of hemp, pursuant to federal law;

8. Such other matters that are necessary or appropriate for the administration of agricultural pilot programs of the department or institutions of higher education or the regulation of program participants or their activities;

9. Record keeping and any reporting requirements;

10. Reasonably necessary security measures;

11. Standards, practices or requirements for the growth, cultivation and the processing of hemp in connection with its cultivation, as necessary, depending upon the hemp's intended use; or

12. Such other rules and regulations as the commissioner deems appropriate or necessary.

§ 509. Hemp grower's authorization, license; fees; requirements. 1. No person shall: (a) grow, cultivate, process, produce, sell or distribute hemp in the state unless authorized by the commissioner as part of an agricultural research pilot program established under this article; or (b) grow, cultivate and process hemp in connection with its growing and cultivation or sell hemp plants or hemp seed unless licensed by the commissioner. Mere transportation, such as by common carrier or another entity or individual, does not constitute activity subject to licensing under this article.

2. A hemp grower license does not authorize the processing or retail sale of hemp for human consumption, as defined in section thirty-three hundred ninety-eight of the public health law, unless the licensee also obtains a cannabinoid hemp processor license, cannabinoid hemp retailer license, or any other license required pursuant of article thirty-three-B of the public health law.

3. Applications for licenses, authorizations or a modification thereof, as set out in regulation, shall be upon a form specified by the commissioner, accompanied by a reasonable application fee for new applications or significant modifications to an application, which shall be established by regulation and which may be made non-refundable by regulation.

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4. The commissioner may also assess a reasonable authorization or licensing fee established by regulation, scaled to cover the estimated, or if known, actual costs of inspections, regulatory testing and other administrative expenses of the authorized or licensed activity, which fee shall be paid prior to the issuance of the authorization or license.

5. The applicant, if an individual, shall be asked to furnish together with the application evidence of his or her good moral character and, if an entity, the applicant shall be asked to furnish together with the application evidence of the good moral character of the individuals who have or will have substantial responsibility for the licensed or authorized activity and those in control of the entity, including principals, officers, or others exercising such control. The names of such individuals shall be set forth in the application.

6. The applicant shall furnish evidence of his, her or its experience and competency, and that the applicant has adequate facilities, equipment, process controls, testing capability and security, to grow, cultivate and process hemp in connection with its growing and cultivation or to sell hemp plants or hemp seed.

7. The department shall provide an application for renewal of any license issued under this article not less than ninety days prior to the expiration of the current license. A renewal application shall be submitted to the commissioner at least thirty days prior to the expiration of the authorization or license, on a form or forms provided by the commissioner for such purpose.

§ 510. Granting, suspending or revoking licenses. After due notice and opportunity to be heard, as established by rules and regulations, the commissioner may decline to grant a new license, impose conditions or limits with respect to the grant of a license, modify an existing license or decline to renew a license, or suspend or revoke a license already granted, whenever the commissioner finds that:

1. A material statement contained in an application is or was false or misleading;

2. The applicant or licensee, or a person in a position of management and control thereof or of the licensed activity, does not have good moral character, necessary experience or competency, adequate facilities, equipment, process controls, testing capability or security, to grow, cultivate and process hemp in connection with its growing and cultivation or to sell hemp plants or hemp seed;

3. After appropriate notice and opportunity, the applicant or licensee has failed to produce any records or provide any information required by this article, the rules and regulations promulgated pursuant thereto or demanded by the commissioner, reasonably related to the administration and enforcement of this article;

4. The applicant or licensee, or any officer, director, partner, or other person exercising any position of management or control thereof has willfully failed to comply with any of the provisions of this article or rules and regulations promulgated pursuant thereto or other law of this state applicable to the licensed activity; or

5. The licensee has failed to comply with its compliance action plan established under section five hundred sixteen of this article.

§ 511. Proceedings to review. The action of the commissioner in refusing to grant or renew a license, or in revoking or suspending a license, or in conditioning or limiting the granting or renewal of a license, may be reviewed in the manner provided by article seventy-eight of the civil practice law and rules, and the decision of the commissioner shall be final unless within four months from the date of service thereof upon

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the party affected thereby a court proceeding is instituted to review such action. The pleadings upon which such review proceeding is instituted shall be served in the manner specified in the civil practice law and rules, unless a different manner of service is provided in an order to show cause granted by the supreme court.

§ 512. Transferability; change in ownership or control. 1. Licenses issued under this article are not transferable, absent written consent of the commissioner.

2. A license shall become void by a change in ownership, substantial corporate change or change of location or acreage grown without prior written approval of the commissioner. The commissioner may promulgate rules and regulations allowing for certain types of changes in ownership without the need for prior written approval.