The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7680--A

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                              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:

  Section 1. Subdivision 1 of section 505 of the agriculture and markets
law,  as added by chapter 524 of the laws of 2014, is amended to read as
follows:
  1. "Industrial 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 concen-
tration of not more than 0.3 percent on a dry weight basis.
  § 2. Section 506 of the agriculture and markets  law,  as  amended  by
section  1  of  part OO of chapter 58 of the laws of 2017, is amended to
read as follows:
  § 506. Growth, sale, distribution, transportation  and  processing  of
industrial hemp and products derived from such hemp permitted. [Notwith-
standing any provision of law to the contrary, industrial] 1. INDUSTRIAL
hemp and products derived from such hemp are agricultural products which
may  be  grown,  produced  [and],  possessed  [in the state, and], sold,
distributed, transported [or] AND/OR processed [either] in [or  out  of]
state  [as part of agricultural pilot programs pursuant to authorization
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

AUTHORIZATION  UNDER  FEDERAL LAW AND/OR THE PROVISIONS OF THIS ARTICLE.
[Notwithstanding any provision of law to the  contrary  restricting  the
growing or cultivating, sale, distribution, transportation or processing
of  industrial  hemp and products derived from such hemp, and subject to
authorization under federal law, the]
  2. THE commissioner may authorize the growing or cultivating of indus-
trial hemp as part of  agricultural  pilot  programs  conducted  by  the
department and/or an institution of higher education to study the growth
and  cultivation,  sale,  distribution, transportation and processing of
such hemp and products derived from such hemp provided  that  the  sites
and  programs used for growing or cultivating industrial hemp are certi-
fied by, and registered with, the department.
  3. THE INDUSTRIAL HEMP USED FOR  RESEARCH  PURSUANT  TO  THIS  SECTION
SHALL  BE SOURCED FROM AUTHORIZED NEW YORK STATE INDUSTRIAL HEMP PRODUC-
ERS. THE RESEARCH PARTNER MAY OBTAIN AN  EXEMPTION  FOR  ONLY  GRAIN  OR
FIBER  FROM  THIS REQUIREMENT UPON A SATISFACTORY SHOWING TO THE DEPART-
MENT THAT A SUITABLE VARIETY OF INDUSTRIAL HEMP FOR THE RESEARCH PROJECT
IS NOT GROWN IN NEW YORK AND/OR THE USE OF NEW YORK SOURCED HEMP IS  NOT
PRACTICABLE FOR THE PROJECT.  HEMP FOR EXTRACTS CAN ONLY BE SOURCED FROM
AUTHORIZED NEW YORK STATE INDUSTRIAL HEMP PRODUCERS.
  4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART-
MENT UNDER ANY OTHER ARTICLE OF THIS CHAPTER.
  §  3. Section 507 of the agriculture and markets law is REPEALED and a
new section 507 is added to read as follows:
  § 507. LICENSING; FEES. 1. NO PERSON  SHALL  GROW,  PROCESS,  PRODUCE,
DISTRIBUTE  AND/OR  SELL INDUSTRIAL HEMP OR PRODUCTS DERIVED FROM INDUS-
TRIAL HEMP IN THE STATE UNLESS (A) LICENSED BIENNIALLY  BY  THE  COMMIS-
SIONER  OR (B) AUTHORIZED BY THE COMMISSIONER AS PART OF AN AGRICULTURAL
RESEARCH PILOT PROGRAM ESTABLISHED UNDER THIS ARTICLE.
  2. APPLICATION FOR A LICENSE TO GROW INDUSTRIAL  HEMP  SHALL  BE  MADE
UPON  A  FORM  PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED BY A PER-ACRE
LICENSE FEE  AND  A  NON-REFUNDABLE  APPLICATION  FEE  OF  FIVE  HUNDRED
DOLLARS.
  3.  THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD CHARACTER,
EXPERIENCE AND COMPETENCY, THAT THE APPLICANT HAS  ADEQUATE  FACILITIES,
EQUIPMENT,  PROCESS  CONTROLS,  TESTING  CAPABILITY AND SECURITY TO GROW
HEMP.
  4. GROWERS WHO INTEND TO CULTIVATE  HEMP  FOR  CANNABINOIDS  SHALL  BE
REQUIRED  TO  OBTAIN  LICENSURE  FROM THE DEPARTMENT PURSUANT TO ARTICLE
TWENTY-NINE-A OF THIS CHAPTER.
  5. A RENEWAL APPLICATION SHALL BE SUBMITTED  TO  THE  COMMISSIONER  AT
LEAST SIXTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD.
  §  4. Section 508 of the agriculture and markets law is REPEALED and a
new section 508 is added to read as follows:
  § 508. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER  DETERMINES,  AFTER
NOTICE  AND  AN OPPORTUNITY FOR HEARING, THAT A LICENSEE HAS NEGLIGENTLY
VIOLATED A PROVISION OF AND/OR A REGULATION PROMULGATED PURSUANT TO THIS
ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO  COMPLY  WITH  A  CORRECTIVE
ACTION  PLAN ESTABLISHED BY THE COMMISSIONER TO CORRECT THE VIOLATION BY
A REASONABLE DATE AND TO PERIODICALLY REPORT TO  THE  COMMISSIONER  WITH
RESPECT  TO  THE LICENSEE'S COMPLIANCE WITH THIS ARTICLE FOR A PERIOD OF
NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOWING THE COMMENCEMENT DATE
OF THE COMPLIANCE ACTION PLAN. THE PROVISIONS OF THIS SECTION SHALL  NOT
BE  APPLICABLE TO RESEARCH PARTNERS CONDUCTING HEMP RESEARCH PURSUANT TO
A RESEARCH PARTNER AGREEMENT, THE TERMS OF WHICH SHALL CONTROL.

A. 7680--A                          3

  § 5. Section 509 of the agriculture and markets law is REPEALED and  a
new section 509 is added to read as follows:
  §  509.  GRANTING,  SUSPENDING OR REVOKING LICENSES.  THE COMMISSIONER
MAY DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE,  MAY
SUSPEND  OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND OPPOR-
TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT:
  1. ANY STATEMENT CONTAINED IN  AN  APPLICATION  FOR  AN  APPLICANT  OR
LICENSEE IS OR WAS FALSE OR MISLEADING;
  2.  THE  APPLICANT  OR  LICENSEE  DOES  NOT  HAVE  GOOD CHARACTER, THE
REQUIRED EXPERIENCE AND/OR COMPETENCY, ADEQUATE  FACILITIES,  EQUIPMENT,
PROCESS  CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP OR
PRODUCTS DERIVED FROM HEMP;
  3. THE APPLICANT OR LICENSEE HAS FAILED  OR  REFUSED  TO  PRODUCE  ANY
RECORDS  OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER REASON-
ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR
  4. THE APPLICANT OR LICENSEE, OR ANY OFFICER, DIRECTOR, PARTNER, HOLD-
ER OF TEN PERCENT OF THE VOTING STOCK, OR ANY  OTHER  PERSON  EXERCISING
ANY  POSITION  OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH ANY OF
THE PROVISIONS OF THIS ARTICLE  OR  RULES  AND  REGULATIONS  PROMULGATED
PURSUANT THERETO.
  §  6. Section 510 of the agriculture and markets law is REPEALED and a
new section 510 is added to read as follows:
  § 510. REGULATIONS.  THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST-
ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION,
SALE, DISTRIBUTION, AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN  IN  THE
STATE, INCLUDING:
  1.  THE  AUTHORIZATION  OR LICENSING OF ANY PERSON WHO MAY: ACQUIRE OR
POSSESS INDUSTRIAL HEMP PLANTS OR SEEDS; GROW  OR  CULTIVATE  INDUSTRIAL
HEMP PLANTS; AND/OR SELL, PURCHASE, DISTRIBUTE, OR TRANSPORT SUCH INDUS-
TRIAL HEMP PLANTS, PLANT PARTS, OR SEEDS;
  2. MAINTAINING RELEVANT INFORMATION REGARDING LAND ON WHICH INDUSTRIAL
HEMP  IS  PRODUCED  WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION OF
THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS;
  3. THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE  STATE
FOR  DELTA-9-TETRAHYDROCANNABINOL LEVELS, USING A REPRESENTATIVE NON-DE-
CARBOXYLATED SAMPLE OF FLOWERS AND LEAVES FROM THE WHOLE PLANT OR  OTHER
SIMILARLY RELIABLE METHODS;
  4.  THE  PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS OR
PRODUCTS DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS  ARTI-
CLE;
  5.  A  PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF INDUSTRIAL
HEMP PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF  THIS
ARTICLE;
  6. ANY REQUIRED SECURITY MEASURES; AND
  7.  SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO-
PRIATE OR NECESSARY.
  § 7. Section 511 of the agriculture and markets law is REPEALED and  a
new section 511 is added to read as follows:
  §  511.  PROHIBITIONS.    EXCEPT AS AUTHORIZED BY STATE LAW, AND REGU-
LATIONS PROMULGATED THEREUNDER,  THE  GROWTH,  CULTIVATION,  PROCESSING,
SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED.
  §  8. Section 512 of the agriculture and markets law is REPEALED and a
new section 512 is added to read as follows:
  § 512. INDUSTRIAL HEMP DATA COLLECTION  AND  BEST  FARMING  PRACTICES.
THE  COMMISSIONER  SHALL  HAVE THE POWER TO COLLECT AND PUBLISH DATA AND
RESEARCH  CONCERNING,  AMONG  OTHER  THINGS,  THE  GROWTH,  CULTIVATION,

A. 7680--A                          4

PRODUCTION  AND  PROCESSING  METHODS  OF  INDUSTRIAL  HEMP  AND PRODUCTS
DERIVED FROM INDUSTRIAL HEMP AND WORK WITH THE NEW YORK STATE COLLEGE OF
AGRICULTURE AND LIFE SCIENCE AT CORNELL PURSUANT TO SECTION  FIFTY-SEVEN
HUNDRED  TWELVE  OF THE EDUCATION LAW AND THE CORNELL COOPERATIVE EXTEN-
SION PURSUANT TO SECTION TWO HUNDRED TWENTY-FOUR OF THE  COUNTY  LAW  TO
PROMOTE  BEST FARMING PRACTICES FOR INDUSTRIAL HEMP WHICH ARE COMPATIBLE
WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJECTIVES.
  § 9. Sections 513 and 514 of  the  agriculture  and  markets  law  are
REPEALED and two new sections 513 and 514 are added to read as follows:
  §  513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF
CRIMINAL JUSTICE SERVICES.   IN CONNECTION WITH  THE  ADMINISTRATION  OF
THIS  ARTICLE,  THE  COMMISSIONER  IS AUTHORIZED TO REQUEST, RECEIVE AND
REVIEW CRIMINAL HISTORY INFORMATION THROUGH  THE  DIVISION  OF  CRIMINAL
JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE
OR  AUTHORIZATION  TO UNDERTAKE A HEMP PILOT PROJECT. AT THE COMMISSION-
ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT
SHALL SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM  AND
IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT-
ING  A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN ACCORD-
ANCE WITH THE PROCEDURES AND REQUIREMENTS ESTABLISHED  BY  THE  DIVISION
PURSUANT  TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE LAW,
WHICH SHALL INCLUDE THE PAYMENT OF THE PRESCRIBED  PROCESSING  FEES  FOR
THE  COST  OF  THE  DIVISION'S  FULL  SEARCH AND RETAIN PROCEDURES AND A
NATIONAL CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR  HER
DESIGNEE,  SHALL  SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE TO THE
DIVISION.  THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT  WITH
RESPECT  TO  THE  APPLICANT'S  PREVIOUS  CRIMINAL  HISTORY, IF ANY, OR A
STATEMENT THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY  ACCORDING
TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
SERVICES  PURSUANT  TO THIS SECTION MAY ALSO BE SUBMITTED TO THE FEDERAL
BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK. IF
ADDITIONAL COPIES OF FINGERPRINTS  ARE  REQUIRED,  THE  APPLICANT  SHALL
FURNISH THEM UPON REQUEST.
  § 514. AIDS TO ENFORCEMENT. 1. THE COMMISSIONER SHALL HAVE FULL ACCESS
TO  ALL  PREMISES,  BUILDINGS,  FACTORIES, FARMS, VEHICLES, CARS, BOATS,
AIRPLANES, VESSELS, CONTAINERS, PACKAGES, BARRELS,  BOXES,  AND/OR  CANS
FOR THE PURPOSE OF ENFORCING THE PROVISIONS OF THIS ARTICLE. THE COMMIS-
SIONER MAY, AT SUCH LOCATIONS, EXAMINE INDUSTRIAL HEMP AND HEMP PRODUCTS
AND MAY OPEN ANY PACKAGE AND/OR CONTAINER REASONABLY BELIEVED TO CONTAIN
INDUSTRIAL  HEMP  OR HEMP PRODUCTS, TO DETERMINE WHETHER SUCH INDUSTRIAL
HEMP OR HEMP PRODUCTS FOLLOW APPLICABLE LAW OR REGULATION.
  2. A SEARCH WARRANT SHALL BE ISSUED BY ANY COURT TO WHICH  APPLICATION
IS MADE THEREFOR, WHENEVER IT SHALL BE MADE TO APPEAR TO SUCH COURT THAT
A LICENSEE HAS: REFUSED TO PERMIT ANY INDUSTRIAL HEMP TO BE INSPECTED OR
SAMPLES  TAKEN  THEREFROM;  REFUSED TO PERMIT ACCESS TO ANY PREMISES, OR
PLACE  WHERE  LICENSED  ACTIVITIES  ARE  CONDUCTED;  AND/OR  REFUSED  OR
PREVENTED  ACCESS  THERETO  BY  ANY INSPECTOR OF THE DEPARTMENT AND THAT
SUCH INSPECTOR HAS REASONABLE GROUNDS TO BELIEVE THAT  SUCH  PERSON  HAS
ANY  INDUSTRIAL  HEMP  IN  HIS  OR  HER  POSSESSION, OR UNDER HIS OR HER
CONTROL AND/OR IS IN VIOLATION OF THE PROVISIONS OR REGULATIONS OF  THIS
ARTICLE.  IN  SUCH  A CASE, A WARRANT SHALL BE ISSUED IN THE NAME OF THE
PEOPLE, DIRECTED TO A POLICE OFFICER, COMMANDING  HIM  OR  HER  TO:  (A)
SEARCH ANY PLACE OF BUSINESS, FACTORY, BUILDING, PREMISES, OR FARM WHERE
LICENSED  ACTIVITIES  HAVE  OCCURRED  AND  ANY  VEHICLE,  BOAT,  VESSEL,
CONTAINER, PACKAGE, BARREL, BOX, TUB OR CAN, CONTAINING, OR BELIEVED  TO
CONTAIN  INDUSTRIAL  HEMP  IN THE POSSESSION OR UNDER THE CONTROL OF ANY

A. 7680--A                          5

PERSON WHO SHALL REFUSE TO ALLOW ACCESS TO SUCH HEMP FOR  INSPECTION  OR
SAMPLING,  (B) PERMIT THE INSPECTION AND SAMPLING OF ANY INDUSTRIAL HEMP
FOUND IN THE EXECUTION OF THE WARRANT, AS THE OFFICER APPLYING  FOR  THE
SEARCH  WARRANT  SHALL DESIGNATE WHEN THE SAME IS FOUND, BY AN INSPECTOR
OR A DEPARTMENT OFFICIAL AUTHORIZED BY THE COMMISSIONER OR BY THIS CHAP-
TER, AND/OR (C) PERMIT ACCESS TO ANY PLACE WHERE ACCESS  IS  REFUSED  OR
PREVENTED,  AND  TO  ALLOW  AND  ENABLE  A DEPARTMENT INSPECTOR OR OTHER
DEPARTMENT OFFICIAL  TO  CONDUCT  AN  INSPECTION  OF  THE  PLACE.    THE
PROVISIONS  OF  ARTICLE SIX HUNDRED NINETY OF THE CRIMINAL PROCEDURE LAW
SHALL APPLY TO SUCH WARRANT AS FAR AS APPLICABLE THERETO. THE OFFICER TO
WHOM THE WARRANT IS DELIVERED SHALL MAKE A RETURN IN WRITING OF  HIS  OR
HER PROCEEDINGS THEREUNTO TO THE COURT WHICH ISSUED THE SAME.
  3.  THE COMMISSIONER MAY QUARANTINE INDUSTRIAL HEMP WHEN HE OR SHE HAS
REASON TO BELIEVE THAT SUCH COMMODITY DOES NOT MEET THE DEFINITION THER-
EOF, SET FORTH IN SUBDIVISION ONE OF SECTION FIVE HUNDRED FIVE  OF  THIS
ARTICLE, OR IS OTHERWISE IN VIOLATION OF OR DOES NOT MEET A STANDARD SET
FORTH  IN, APPLICABLE LAW OR REGULATION. THE QUARANTINE MAY BY THE ISSU-
ANCE OF AN ORDER DIRECTING THE OWNER OR CUSTODIAN OF INDUSTRIAL HEMP NOT
TO DISTRIBUTE, DISPOSE OF, OR MOVE THAT COMMODITY  WITHOUT  THE  WRITTEN
PERMISSION  OF  THE COMMISSIONER. THE COMMISSIONER MAY ALSO QUARANTINE A
PRODUCT BY PLACING A TAG OR OTHER APPROPRIATE MARKING THEREON  OR  ADJA-
CENT  THERETO  THAT  PROVIDES AND REQUIRES THAT SUCH PRODUCT MUST NOT BE
DISTRIBUTED, DISPOSED OF, OR MOVED WITHOUT HIS OR  HER  WRITTEN  PERMIS-
SION,  OR  MAY  QUARANTINE A PRODUCT BY OTHERWISE INFORMING THE OWNER OR
CUSTODIAN THEREOF THAT SUCH CONDITION MUST BE COMPLIED WITH.
  4. THE COMMISSIONER MAY  SEIZE  INDUSTRIAL  HEMP  BY  TAKING  PHYSICAL
POSSESSION OF INDUSTRIAL HEMP WHEN HE OR SHE HAS SUBSTANTIAL EVIDENCE TO
BELIEVE  THAT  SUCH  COMMODITY DOES NOT MEET THE DEFINITION THEREOF, SET
FORTH IN SUBDIVISION ONE OF SECTION FIVE HUNDRED FIVE OF  THIS  ARTICLE,
OR  IS  OTHERWISE IN VIOLATION OF, OR DOES NOT MEET A STANDARD SET FORTH
IN, APPLICABLE LAW OR REGULATION.
  5. SUBSEQUENT TO QUARANTINING OR SEIZING INDUSTRIAL HEMP,  AS  AUTHOR-
IZED  IN  SUBDIVISIONS  THREE AND FOUR OF THIS SECTION, THE COMMISSIONER
SHALL PROMPTLY GIVE THE OWNER OR CUSTODIAN THEREOF AN OPPORTUNITY TO  BE
HEARD  TO  SHOW  CAUSE  WHY  SUCH  INDUSTRIAL HEMP SHOULD NOT BE ORDERED
DESTROYED. THE COMMISSIONER SHALL, THEREAFTER, CONSIDER ALL THE RELEVANT
EVIDENCE AND INFORMATION PRESENTED AND SHALL MAKE A DETERMINATION WHETH-
ER SUCH INDUSTRIAL HEMP SHOULD BE ORDERED TO BE DESTROYED; THAT DETERMI-
NATION MAY BE REVIEWED AS PROVIDED FOR IN ARTICLE SEVENTY-EIGHT  OF  THE
CIVIL PRACTICE LAW AND RULES.
  § 10. The agriculture and markets law is amended by adding a new arti-
cle 29-A to read as follows:
                              ARTICLE 29-A
                       REGULATION OF HEMP EXTRACT
SECTION 520. DEFINITIONS.
        521. RULEMAKING AUTHORITY.
        522. CANNABINOID RELATED HEMP EXTRACT LICENSING.
        523. CANNABINOID GROWER LICENSES.
        524. CANNABINOID MANUFACTURER LICENSE.
        525. CANNABINOID EXTRACTOR LICENSE.
        526. CANNABINOID LICENSE APPLICATIONS.
        527. INFORMATION TO BE REQUESTED IN APPLICATIONS FOR LICENSES.
        528. FEES.
        529. SELECTION CRITERIA.
        530. LIMITATIONS OF LICENSURE; DURATION.
        531. LICENSE RENEWAL.

A. 7680--A                          6

        532. FORM OF LICENSE.
        533. AMENDMENTS  TO  LICENSE  AND  DUTY  TO  UPDATE  INFORMATION
               SUBMITTED FOR LICENSING.
        534. RECORD KEEPING AND TRACKING.
        535. INSPECTIONS AND ONGOING REQUIREMENTS.
        536. PACKAGING AND LABELING OF HEMP EXTRACT.
        537. PROVISIONS  GOVERNING  THE   GROWING,   MANUFACTURING   AND
               EXTRACTING OF HEMP EXTRACT.
        538. LABORATORY TESTING.
        539. ADVERTISING.
        540. RESEARCH.
        541. REGULATIONS.
        542. CANNABINOID PERMIT.
        543. NEW YORK HEMP PRODUCT.
        544. PENALTIES AND VIOLATIONS OF THIS ARTICLE.
        545. HEMP WORKGROUP.
        546. PROHIBITIONS.
        547. SEVERABILITY.
  §  520.  DEFINITIONS.  WHEREVER  USED IN THIS ARTICLE UNLESS OTHERWISE
EXPRESSLY STATED OR UNLESS THE CONTEXT  OR  SUBJECT  MATTER  REQUIRES  A
DIFFERENT  MEANING,  THE  FOLLOWING  TERMS SHALL HAVE THE REPRESENTATIVE
MEANINGS HEREINAFTER SET FORTH OR INDICATED:
  1. "APPLICANT" MEANS A FOR-PROFIT ENTITY OR NOT-FOR-PROFIT CORPORATION
AND INCLUDES BOARD MEMBERS WHO SUBMIT AN APPLICATION TO BECOME A  LICEN-
SEE.
  2.  "HEMP  EXTRACT"  MEANS ANY PRODUCT MADE OR DERIVED FROM INDUSTRIAL
HEMP, INCLUDING THE SEEDS THEREOF AND ALL DERIVATIVES WHETHER GROWING OR
NOT, WITH A DELTA-9-TETRAHYDROCANNABINOL CONCENTRATION OF NOT MORE  THAN
AN  AMOUNT  OF  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 AN
AMOUNT DETERMINED BY THE DEPARTMENT IN REGULATION, USED OR INTENDED  FOR
HUMAN  OR  ANIMAL  CONSUMPTION  OR  USE  FOR ITS CANNABINOID CONTENT, AS
DETERMINED BY THE COMMISSIONER  IN  REGULATION.  HEMP  EXTRACT  EXCLUDES
INDUSTRIAL  HEMP  USED OR INTENDED EXCLUSIVELY FOR AN INDUSTRIAL PURPOSE
AND THOSE FOOD AND/OR FOOD INGREDIENTS THAT ARE GENERALLY RECOGNIZED  AS
SAFE BY THE DEPARTMENT, AND SHALL NOT BE REGULATED AS HEMP EXTRACT WITH-
IN THE MEANING OF THIS ARTICLE.
  3. "CANNABINOID GROWER" MEANS A PERSON LICENSED BY THE DEPARTMENT, AND
IN  COMPLIANCE  WITH  ARTICLE  TWENTY-NINE  OF THIS CHAPTER, TO ACQUIRE,
POSSESS, CULTIVATE, AND SELL HEMP EXTRACT FOR ITS CANNABINOID CONTENT.
  4. "CANNABINOID MANUFACTURER" MEANS A PERSON LICENSED BY  THE  DEPART-
MENT  TO  ACQUIRE,  POSSESS,  AND MANUFACTURE HEMP EXTRACT FROM LICENSED
CANNABINOID GROWERS OR CANNABINOID EXTRACTORS FOR  THE  MANUFACTURE  AND
SALE  OF HEMP EXTRACT PRODUCTS MARKETED FOR CANNABINOID CONTENT AND USED
OR INTENDED FOR HUMAN OR ANIMAL CONSUMPTION OR USE.
  5. "CANNABINOID EXTRACTOR" MEANS A PERSON LICENSED BY  THE  DEPARTMENT
TO  ACQUIRE, POSSESS, EXTRACT AND MANUFACTURE HEMP EXTRACT FROM LICENSED
CANNABINOID GROWERS  FOR  THE  MANUFACTURE  AND  SALE  OF  HEMP  EXTRACT
PRODUCTS MARKETED FOR CANNABINOID CONTENT AND USED OR INTENDED FOR HUMAN
OR ANIMAL CONSUMPTION OR USE.
  6. "LICENSE" MEANS A LICENSE ISSUED PURSUANT TO THIS ARTICLE.
  7.  "INDUSTRIAL  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,

A. 7680--A                          7

WHETHER GROWING OR  NOT,  WITH  A  DELTA-9-TETRAHYDROCANNABINOL  CONCEN-
TRATION OF NOT MORE THAN 0.3 PERCENT ON A DRY WEIGHT BASIS.
  §  521.  RULEMAKING  AUTHORITY.  1.  THE DEPARTMENT SHALL PERFORM SUCH
ACTS, PRESCRIBE SUCH FORMS  AND  PROPOSE  SUCH  RULES,  REGULATIONS  AND
ORDERS  AS  IT  MAY  DEEM  NECESSARY  OR  PROPER TO FULLY EFFECTUATE THE
PROVISIONS OF THIS ARTICLE.
  2. THE DEPARTMENT SHALL HAVE THE  POWER  TO  PROMULGATE  ANY  AND  ALL
NECESSARY  RULES  AND  REGULATIONS GOVERNING THE PRODUCTION, PROCESSING,
TRANSPORTATION, DISTRIBUTION, AND SALE OF HEMP  EXTRACT,  INCLUDING  BUT
NOT  LIMITED  TO  THE  LICENSING  OF CANNABINOID GROWERS, MANUFACTURERS,
EXTRACTORS AND RETAILERS, INCLUDING, BUT NOT LIMITED TO:
  (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND
RENEWAL FEES;
  (B) THE  QUALIFICATIONS  AND  SELECTION  CRITERIA  FOR  LICENSING,  OR
PERMITTING;
  (C) LIMITATIONS ON THE NUMBER OF LICENSES TO BE AWARDED;
  (D)  THE  BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES,
AND PERMITTEES, INCLUDING THE REPORTS TO BE MADE THEREON TO THE  DEPART-
MENT,  AND INSPECTION OF ANY AND ALL BOOKS AND RECORDS MAINTAINED BY ANY
LICENSEE, OR PERMITTEE, AND ON THE PREMISES OF ANY LICENSEE  OR  PERMIT-
TEE;
  (E)  METHODS  OF  PRODUCING,  PROCESSING,  AND PACKAGING HEMP EXTRACT;
CONDITIONS OF SANITATION, AND STANDARDS  OF  INGREDIENTS,  QUALITY,  AND
IDENTITY  OF  HEMP  EXTRACT PRODUCTS CULTIVATED, PROCESSED, PACKAGED, OR
SOLD BY LICENSEES; AND
  (F) HEARING PROCEDURES AND ADDITIONAL CAUSES FOR CANCELLATION, REVOCA-
TION, AND/OR CIVIL PENALTIES AGAINST ANY PERSON LICENSED,  OR  PERMITTED
BY THE DEPARTMENT.
  3.  THE  DEPARTMENT,  IN  CONSULTATION WITH THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION AND THE NEW YORK STATE ENERGY RESEARCH AND  DEVELOP-
MENT  AGENCY, SHALL PROMULGATE NECESSARY RULES AND REGULATIONS GOVERNING
THE SAFE PRODUCTION OF HEMP EXTRACT, INCLUDING ENVIRONMENTAL AND  ENERGY
STANDARDS.
  §  522.  CANNABINOID RELATED HEMP EXTRACT LICENSING.  1. PERSONS GROW-
ING,  PROCESSING,  EXTRACTING,  AND/OR  MANUFACTURING  HEMP  EXTRACT  OR
PRODUCING HEMP EXTRACT PRODUCTS DISTRIBUTED, SOLD OR MARKETED FOR CANNA-
BINOID  CONTENT  AND USED OR INTENDED FOR HUMAN OR ANIMAL CONSUMPTION OR
USE, SHALL BE REQUIRED TO OBTAIN THE FOLLOWING LICENSE OR LICENSES  FROM
THE DEPARTMENT, DEPENDING UPON THE OPERATION:
  (A) CANNABINOID GROWER LICENSE;
  (B) CANNABINOID MANUFACTURER LICENSE;
  (C) CANNABINOID EXTRACTOR LICENSE.
  2.  NOTWITHSTANDING  SUBDIVISION  ONE  OF  THIS SECTION, THOSE PERSONS
GROWING, PROCESSING OR  MANUFACTURING  FOOD  OR  FOOD  INGREDIENTS  FROM
INDUSTRIAL  HEMP  PURSUANT TO ARTICLE TWENTY-NINE OF THIS CHAPTER, WHICH
FOOD OR FOOD INGREDIENTS ARE GENERALLY  RECOGNIZED  AS  SAFE,  SHALL  BE
SUBJECT TO REGULATION AND/OR LICENSING BY THE DEPARTMENT.
  §  523. CANNABINOID GROWER LICENSES. 1. A CANNABINOID GROWER'S LICENSE
AUTHORIZES THE ACQUISITION, POSSESSION, CULTIVATION  AND  SALE  OF  HEMP
EXTRACT  GROWN OR USED FOR ITS CANNABINOID CONTENT ON THE LICENSED PREM-
ISES OF THE GROWER.
  2. A PERSON HOLDING A CANNABINOID GROWER'S LICENSE SHALL NOT SELL HEMP
EXTRACT PRODUCTS MARKETED,  DISTRIBUTED  OR  SOLD  FOR  ITS  CANNABINOID
CONTENT  AND  INTENDED  FOR  HUMAN CONSUMPTION OR USE WITHOUT ALSO BEING
LICENSED AS A MANUFACTURER OR EXTRACTOR  PURSUANT  TO  THIS  ARTICLE  OR

A. 7680--A                          8

OTHERWISE  PERMITTED  PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS
ARTICLE.
  3.  PERSONS GROWING INDUSTRIAL HEMP PURSUANT TO ARTICLE TWENTY-NINE OF
THIS CHAPTER ARE NOT AUTHORIZED TO AND SHALL NOT SELL HEMP  EXTRACT  FOR
HUMAN  OR ANIMAL CONSUMPTION OR USE, OTHER THAN AS FOOD OR A FOOD INGRE-
DIENT THAT HAS BEEN GENERALLY RECOGNIZED AS SAFE IN ACCORDANCE WITH  THE
DEPARTMENT  OR  DETERMINED BY THE STATE TO BE SAFE FOR HUMAN CONSUMPTION
AS FOOD OR A FOOD INGREDIENT WITHOUT ALSO BEING LICENSED AS  A  MANUFAC-
TURER  OR  EXTRACTOR  PURSUANT  TO  THIS  ARTICLE OR OTHERWISE PERMITTED
PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS ARTICLE.
  4. A PERSON AUTHORIZED UNDER ARTICLE TWENTY-NINE OF THIS CHAPTER AS AN
INDUSTRIAL HEMP GROWER SHALL APPLY  FOR  A  CANNABINOID  GROWER  LICENSE
PROVIDED  IT  CAN  DEMONSTRATE TO THE DEPARTMENT THAT ITS CULTIVATION OF
INDUSTRIAL HEMP MEETS ALL THE REQUIREMENTS FOR HEMP  EXTRACT  CULTIVATED
UNDER A CANNABINOID GROWER LICENSE.
  § 524. CANNABINOID MANUFACTURER LICENSE. 1. A CANNABINOID MANUFACTURER
LICENSE  AUTHORIZES THE LICENSEE'S ACQUISITION, POSSESSION, AND MANUFAC-
TURE OF HEMP EXTRACT FROM A LICENSED CANNABINOID GROWER  OR  CANNABINOID
EXTRACTOR  FOR  THE PROCESSING OF HEMP EXTRACT OR THE PRODUCTION OF HEMP
EXTRACT PRODUCTS MARKETED, DISTRIBUTED OR SOLD FOR  CANNABINOID  CONTENT
AND USED OR INTENDED FOR HUMAN OR ANIMAL CONSUMPTION OR USE.
  2.  NOTWITHSTANDING  SUBDIVISION  ONE  OF  THIS SECTION, NOTHING SHALL
PREVENT A CANNABINOID MANUFACTURER FROM  MANUFACTURING  INDUSTRIAL  HEMP
PRODUCTS NOT USED OR INTENDED FOR HUMAN OR ANIMAL CONSUMPTION OR USE.
  §  525.  CANNABINOID  EXTRACTOR  LICENSE.   1. A CANNABINOID EXTRACTOR
LICENSE AUTHORIZES THE LICENSEE'S  ACQUISITION,  POSSESSION,  EXTRACTION
AND  MANUFACTURE  OF HEMP EXTRACT FROM A LICENSED CANNABINOID GROWER FOR
THE PROCESSING OF  HEMP  EXTRACT  OR  THE  PRODUCTION  OF  HEMP  EXTRACT
PRODUCTS  MARKETED, DISTRIBUTED OR SOLD FOR CANNABINOID CONTENT AND USED
OR INTENDED FOR HUMAN OR ANIMAL CONSUMPTION OR USE.
  2. NO CANNABINOID EXTRACTOR LICENSEE SHALL ENGAGE IN ANY  OTHER  BUSI-
NESS  ON  THE  LICENSED  PREMISES; EXCEPT THAT NOTHING CONTAINED IN THIS
ARTICLE SHALL PREVENT A CANNABINOID EXTRACTOR LICENSEE FROM  ALSO  BEING
LICENSED AS A CANNABINOID GROWER ON THE SAME PREMISES.
  3.  NOTWITHSTANDING  SUBDIVISIONS ONE AND TWO OF THIS SECTION, NOTHING
SHALL PREVENT A CANNABINOID EXTRACTOR FROM MANUFACTURING INDUSTRIAL HEMP
PRODUCTS NOT USED OR INTENDED FOR HUMAN OR ANIMAL CONSUMPTION OR USE.
  4. A PERSON AUTHORIZED UNDER ARTICLE TWENTY-NINE OF THIS CHAPTER AS AN
INDUSTRIAL HEMP PROCESSOR SHALL  QUALIFY  FOR  A  CANNABINOID  EXTRACTOR
LICENSE   PROVIDED  IT  CAN  DEMONSTRATE  TO  THE  DEPARTMENT  THAT  ITS
EXTRACTION OF INDUSTRIAL  HEMP  MEETS  ALL  THE  REQUIREMENTS  FOR  HEMP
EXTRACT UNDER A CANNABINOID EXTRACTOR LICENSE.
  §  526. CANNABINOID LICENSE APPLICATIONS. 1. PERSONS SHALL APPLY FOR A
CANNABINOID GROWER LICENSE, CANNABINOID MANUFACTURER  LICENSE  AND/OR  A
CANNABINOID  EXTRACTOR  LICENSE BY SUBMITTING AN APPLICATION UPON A FORM
SUPPLIED BY THE DEPARTMENT, PROVIDING  ALL  THE  REQUESTED  INFORMATION,
VERIFIED  BY THE APPLICANT OR AN AUTHORIZED REPRESENTATIVE OF THE APPLI-
CANT.
  2. A SEPARATE LICENSE SHALL BE REQUIRED FOR  EACH  FACILITY  AT  WHICH
GROWING, MANUFACTURING AND/OR EXTRACTING IS CONDUCTED.
  3.  EACH  APPLICANT  SHALL REMIT WITH ITS APPLICATION THE FEE FOR EACH
REQUESTED LICENSE.
  § 527. INFORMATION TO BE REQUESTED IN APPLICATIONS  FOR  LICENSES.  1.
THE DEPARTMENT SHALL HAVE THE AUTHORITY TO PRESCRIBE THE MANNER AND FORM
IN  WHICH  AN APPLICATION MUST BE SUBMITTED TO THE DEPARTMENT FOR LICEN-
SURE UNDER THIS ARTICLE.

A. 7680--A                          9

  2. THE COMMISSIONER IS AUTHORIZED TO ADOPT REGULATIONS,  INCLUDING  BY
EMERGENCY  RULE,  ESTABLISHING  INFORMATION WHICH MUST BE INCLUDED ON AN
APPLICATION FOR LICENSURE  UNDER  THIS  ARTICLE.  SUCH  INFORMATION  MAY
INCLUDE, BUT IS NOT LIMITED TO:  INFORMATION ABOUT THE APPLICANT'S IDEN-
TITY, INCLUDING RACIAL AND ETHNIC DIVERSITY; INFORMATION ABOUT PRIOR USE
OF  FARMLAND; OWNERSHIP AND INVESTMENT INFORMATION, INCLUDING THE CORPO-
RATE  STRUCTURE;  EVIDENCE  OF  GOOD  MORAL  CHARACTER,  INCLUDING   THE
SUBMISSION  OF FINGERPRINTS BY THE APPLICANT TO THE DIVISION OF CRIMINAL
JUSTICE SERVICES; INFORMATION ABOUT THE PREMISES TO BE LICENSED;  FINAN-
CIAL STATEMENTS; AND ANY OTHER INFORMATION PRESCRIBED IN REGULATION.
  3.  ALL  LICENSE  APPLICATIONS SHALL BE SIGNED BY THE APPLICANT (IF AN
INDIVIDUAL), BY A MANAGING PARTNER (IF A LIMITED LIABILITY CORPORATION),
BY AN OFFICER (IF A CORPORATION), OR BY ALL PARTNERS (IF A PARTNERSHIP).
EACH PERSON SIGNING SUCH APPLICATION SHALL VERIFY IT AS TRUE  UNDER  THE
PENALTIES OF PERJURY.
  4. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK,
DRAFT OR OTHER FORMS OF PAYMENT AS THE DEPARTMENT MAY REQUIRE OR AUTHOR-
IZE IN THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE OR PERMIT.
  5.  IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR THE
GRANTING OF A LICENSE, IN ANY OF THE FACTS REQUIRED TO BE SET  FORTH  IN
SUCH APPLICATION, A SUPPLEMENTAL STATEMENT GIVING NOTICE OF SUCH CHANGE,
COST AND SOURCE OF MONEY INVOLVED IN THE CHANGE, DULY VERIFIED, SHALL BE
FILED  WITH THE DEPARTMENT WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE TO
DO SO SHALL, IF WILLFUL AND DELIBERATE, BE CAUSE FOR REVOCATION  OF  THE
LICENSE.
  6. IN GIVING ANY NOTICE, OR TAKING ANY ACTION IN REFERENCE TO A LICEN-
SEE OF A LICENSED PREMISES, THE DEPARTMENT MAY RELY UPON THE INFORMATION
FURNISHED   IN  SUCH  APPLICATION  AND  IN  ANY  SUPPLEMENTAL  STATEMENT
CONNECTED THEREWITH, AND SUCH INFORMATION MAY BE PRESUMED TO BE CORRECT,
AND SHALL BE BINDING UPON A LICENSEE OR LICENSED PREMISES AS IF CORRECT.
ALL INFORMATION REQUIRED TO BE FURNISHED IN SUCH APPLICATION OR  SUPPLE-
MENTAL STATEMENTS SHALL BE DEEMED MATERIAL IN ANY PROSECUTION FOR PERJU-
RY,  ANY PROCEEDING TO REVOKE, CANCEL OR SUSPEND ANY LICENSE, AND IN THE
DEPARTMENT'S DETERMINATION TO APPROVE OR DENY THE LICENSE.
  7. THE DEPARTMENT MAY, IN ITS DISCRETION, WAIVE THE SUBMISSION OF  ANY
CATEGORY  OF  INFORMATION  DESCRIBED IN THIS SECTION FOR ANY CATEGORY OF
LICENSE OR PERMIT, PROVIDED THAT IT SHALL NOT BE PERMITTED TO WAIVE  THE
REQUIREMENT  FOR  SUBMISSION  OF ANY SUCH CATEGORY OF INFORMATION SOLELY
FOR AN INDIVIDUAL APPLICANT OR APPLICANTS.
  § 528. FEES. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO CHARGE  LICEN-
SEES A BIENNIAL LICENSE FEE. SUCH FEE MAY BE BASED ON THE AMOUNT OF HEMP
EXTRACT  TO BE GROWN, PROCESSED, MANUFACTURED OR EXTRACTED BY THE LICEN-
SEE, THE GROSS ANNUAL RECEIPTS OF THE LICENSEE FOR THE PREVIOUS  LICENSE
PERIOD, OR ANY OTHER FACTORS DEEMED APPROPRIATE BY THE DEPARTMENT.
  § 529. SELECTION CRITERIA. 1. AN APPLICANT SHALL FURNISH EVIDENCE:
  (A) ITS ABILITY TO EFFECTIVELY MAINTAIN A DELTA-9-TETRAHYDROCANNABINOL
CONCENTRATION  THAT  DOES NOT EXCEED A PERCENTAGE OF DELTA-9-TETRAHYDRO-
CANNABINOL CANNABIS SET BY THE COMMISSIONER  ON A DRY  WEIGHT  BASIS  OF
COMBINED  LEAVES  AND FLOWERS OF THE PLANT OF THE GENUS CANNABIS, OR PER
VOLUME OR WEIGHT OF CANNABIS PRODUCT;
  (B) ITS ABILITY TO COMPLY WITH ALL APPLICABLE  STATE  LAWS  AND  REGU-
LATIONS;
  (C) THAT THE APPLICANT IS READY, WILLING AND ABLE TO PROPERLY CARRY ON
THE ACTIVITIES FOR WHICH A LICENSE IS SOUGHT; AND

A. 7680--A                         10

  (D)  THAT  THE  APPLICANT  IS IN POSSESSION OF OR HAS THE RIGHT TO USE
LAND, BUILDINGS AND EQUIPMENT SUFFICIENT TO PROPERLY CARRY ON THE ACTIV-
ITY DESCRIBED IN THE APPLICATION.
  2.  THE DEPARTMENT, IN CONSIDERING WHETHER TO GRANT THE LICENSE APPLI-
CATION, SHALL CONSIDER WHETHER:
  (A) IT IS IN THE PUBLIC INTEREST THAT SUCH LICENSE BE GRANTED,  TAKING
INTO  CONSIDERATION  WHETHER  THE NUMBER OF LICENSES WILL BE ADEQUATE OR
EXCESSIVE TO REASONABLY SERVE DEMAND;
  (B) THE APPLICANT AND ITS MANAGING OFFICERS ARE OF GOOD MORAL  CHARAC-
TER  AND  DO  NOT  HAVE  AN  OWNERSHIP  OR  CONTROLLING INTEREST IN MORE
LICENSES OR PERMITS THAN ALLOWED BY THIS CHAPTER;
  (C) PREFERENCE SHALL BE GIVEN TO APPLICANTS THAT ARE CURRENTLY FARMING
IN THE STATE AND ARE ELIGIBLE OR  CURRENTLY  RECEIVING  AN  AGRICULTURAL
ASSESSMENT PURSUANT TO ARTICLE TWENTY-FIVE-AA OF THIS CHAPTER; AND
  (D)  THE APPLICANT SATISFIES ANY OTHER CONDITIONS AS DETERMINED BY THE
DEPARTMENT.
  3. IF THE COMMISSIONER IS NOT SATISFIED THAT THE APPLICANT  SHOULD  BE
ISSUED A LICENSE, THE COMMISSIONER SHALL NOTIFY THE APPLICANT IN WRITING
OF THE SPECIFIC REASON OR REASONS FOR DENIAL.
  4. THE COMMISSIONER SHALL HAVE AUTHORITY AND SOLE DISCRETION TO DETER-
MINE THE NUMBER OF LICENSES ISSUED PURSUANT TO THIS ARTICLE.
  §  530.  LIMITATIONS OF LICENSURE; DURATION. 1. NO LICENSE PURSUANT TO
THIS ARTICLE MAY BE ISSUED TO A PERSON UNDER THE AGE OF EIGHTEEN YEARS.
  2. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO LIMIT, BY CANOPY,  PLANT
COUNT  OR  OTHER  MEANS, THE AMOUNT OF HEMP EXTRACT ALLOWED TO BE CULTI-
VATED, PROCESSED, EXTRACTED OR SOLD BY A LICENSEE.
  3. ALL LICENSES UNDER THIS ARTICLE SHALL EXPIRE TWO  YEARS  AFTER  THE
DATE  OF  ISSUE AND BE SUBJECT TO ANY RULES OR LIMITATIONS PRESCRIBED BY
THE COMMISSIONER IN REGULATION.
  § 531. LICENSE RENEWAL. 1. EACH LICENSE, ISSUED PURSUANT TO THIS ARTI-
CLE, MAY BE RENEWED UPON APPLICATION THEREFOR BY THE  LICENSEE  AND  THE
PAYMENT OF THE FEE FOR SUCH LICENSE AS PRESCRIBED BY THIS ARTICLE.
  2.  IN  THE  CASE  OF  APPLICATIONS  FOR  RENEWALS, THE DEPARTMENT MAY
DISPENSE WITH THE REQUIREMENTS OF SUCH STATEMENTS AS IT  DEEMS  UNNECES-
SARY IN VIEW OF THOSE CONTAINED IN THE APPLICATION MADE FOR THE ORIGINAL
LICENSE,  BUT IN ANY EVENT THE SUBMISSION OF PHOTOGRAPHS OF THE LICENSED
PREMISES SHALL BE  DISPENSED  WITH,  PROVIDED  THE  APPLICANT  FOR  SUCH
RENEWAL  SHALL  FILE  A STATEMENT WITH THE DEPARTMENT TO THE EFFECT THAT
THERE HAS BEEN NO ALTERATION OF SUCH PREMISES SINCE THE ORIGINAL LICENSE
WAS ISSUED.
  3. THE DEPARTMENT MAY MAKE SUCH RULES AS MAY BE NECESSARY, NOT  INCON-
SISTENT  WITH  THIS  CHAPTER,  REGARDING  APPLICATIONS  FOR  RENEWALS OF
LICENSES AND PERMITS AND THE TIME FOR MAKING THE SAME.
  4. THE DEPARTMENT SHALL  PROVIDE  AN  APPLICATION  FOR  RENEWAL  OF  A
LICENSE ISSUED UNDER THIS ARTICLE NOT LESS THAN NINETY DAYS PRIOR TO THE
EXPIRATION OF THE CURRENT LICENSE.
  5. THE DEPARTMENT MAY ONLY ISSUE A RENEWAL LICENSE UPON RECEIPT OF THE
PRESCRIBED  RENEWAL  APPLICATION  AND RENEWAL FEE FROM A LICENSEE IF, IN
ADDITION TO THE CRITERIA IN SECTION FIVE HUNDRED  TWENTY-SEVEN  OF  THIS
ARTICLE, THE LICENSEE'S LICENSE IS NOT UNDER SUSPENSION AND HAS NOT BEEN
REVOKED.
  6.  THE  DEPARTMENT  SHALL HAVE THE AUTHORITY TO CHARGE APPLICANTS FOR
LICENSURE UNDER THIS ARTICLE A NON-REFUNDABLE APPLICATION FEE. SUCH  FEE
MAY  BE  BASED  ON  THE  TYPE  OF  LICENSURE  SOUGHT, CULTIVATION AND/OR
PRODUCTION VOLUME, OR ANY OTHER FACTORS DEEMED REASONABLE AND  APPROPRI-
ATE BY THE DEPARTMENT TO ACHIEVE THE POLICY AND PURPOSE OF THIS CHAPTER.

A. 7680--A                         11

  § 532. FORM OF LICENSE. LICENSES ISSUED PURSUANT TO THIS ARTICLE SHALL
SPECIFY:
  1. THE NAME AND ADDRESS OF THE LICENSEE;
  2. THE ACTIVITIES PERMITTED BY THE LICENSE;
  3.  THE  LAND,  BUILDINGS  AND  FACILITIES  THAT  MAY  BE USED FOR THE
LICENSED ACTIVITIES OF THE LICENSEE;
  4. A UNIQUE LICENSE NUMBER ISSUED BY THE DEPARTMENT TO  THE  LICENSEE;
AND
  5.  SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL DEEM NECESSARY TO
ASSURE COMPLIANCE WITH THIS CHAPTER.
  § 533. AMENDMENTS TO LICENSE AND DUTY TO UPDATE INFORMATION  SUBMITTED
FOR  LICENSING.  1.  UPON APPLICATION OF A LICENSEE TO THE DEPARTMENT, A
LICENSE MAY BE AMENDED TO ALLOW THE  LICENSEE  TO  RELOCATE  WITHIN  THE
STATE,  TO  ADD OR DELETE LICENSED ACTIVITIES OR FACILITIES, OR TO AMEND
THE OWNERSHIP OR ORGANIZATIONAL STRUCTURE OF  THE  ENTITY  THAT  IS  THE
LICENSEE. THE FEE FOR SUCH AMENDMENT SHALL BE TWO HUNDRED FIFTY DOLLARS.
  2.  IN THE EVENT THAT ANY OF THE INFORMATION PROVIDED BY THE APPLICANT
CHANGES EITHER WHILE THE APPLICATION IS PENDING OR AFTER THE LICENSE  IS
GRANTED,  WITHIN  TEN DAYS OF ANY SUCH CHANGE, THE APPLICANT OR LICENSEE
SHALL SUBMIT TO THE DEPARTMENT A VERIFIED STATEMENT  SETTING  FORTH  THE
CHANGE  IN  CIRCUMSTANCES OF FACTS SET FORTH IN THE APPLICATION. FAILURE
TO DO SO SHALL, IF WILLFUL AND DELIBERATE, BE CAUSE  FOR  REVOCATION  OF
THE LICENSE.
  3.  A  LICENSE SHALL BECOME VOID BY A CHANGE IN OWNERSHIP, SUBSTANTIAL
CORPORATE CHANGE OR LOCATION  WITHOUT  PRIOR  WRITTEN  APPROVAL  OF  THE
COMMISSIONER.   THE COMMISSIONER MAY PROMULGATE REGULATIONS ALLOWING FOR
CERTAIN TYPES OF CHANGES IN OWNERSHIP WITHOUT THE NEED FOR PRIOR WRITTEN
APPROVAL.
  4. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE"  SHALL
MEAN:
  (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI-
CERS  AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK
OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT
OR MORE OF THE STOCK OF SUCH CORPORATION; AND
  (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE  OF  EIGHTY  PERCENT  OR
MORE  OF  THE  MANAGING  MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY
PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY,  OR  AN  EXISTING
MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP
INTEREST IN SAID COMPANY.
  §  534.  RECORD  KEEPING  AND  TRACKING. 1. THE COMMISSIONER SHALL, BY
REGULATION, REQUIRE EACH LICENSEE PURSUANT TO THIS ARTICLE TO ADOPT  AND
MAINTAIN  SECURITY,  TRACKING,  RECORD  KEEPING,  RECORD  RETENTION  AND
SURVEILLANCE SYSTEMS, RELATING TO ALL HEMP EXTRACT  AT  EVERY  STAGE  OF
ACQUIRING,  POSSESSION,  MANUFACTURE,  TRANSPORT,  SALE, OR DELIVERY, OR
DISTRIBUTION BY THE LICENSEE, SUBJECT TO REGULATIONS OF THE  COMMISSION-
ER.
  2.  EVERY LICENSEE SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  LICENSEE
AND  SALE  OF ITS PRODUCTS, WHICH SHALL INCLUDE ALL INFORMATION REQUIRED
BY RULES PROMULGATED BY THE DEPARTMENT.
  3. EACH SALE SHALL BE RECORDED SEPARATELY ON A NUMBERED INVOICE, WHICH
SHALL HAVE PRINTED THEREON THE NUMBER, THE NAME  OF  THE  LICENSEE,  THE
ADDRESS OF THE LICENSED PREMISES, AND THE CURRENT LICENSE NUMBER.
  4. SUCH BOOKS, RECORDS AND INVOICES SHALL BE KEPT FOR A PERIOD OF FIVE
YEARS  AND SHALL BE AVAILABLE FOR INSPECTION BY ANY AUTHORIZED REPRESEN-
TATIVE OF THE DEPARTMENT.

A. 7680--A                         12

  § 535. INSPECTIONS AND ONGOING REQUIREMENTS. ALL  LICENSEES  SHALL  BE
SUBJECT TO REASONABLE INSPECTION BY THE DEPARTMENT, IN CONSULTATION WITH
THE  DEPARTMENT  OF  HEALTH,  AND A PERSON WHO HOLDS A LICENSE MUST MAKE
HIMSELF OR HERSELF, OR AN AGENT THEREOF, AVAILABLE AND PRESENT  FOR  ANY
INSPECTION REQUIRED BY THE DEPARTMENT. THE DEPARTMENT SHALL MAKE REASON-
ABLE  ACCOMMODATIONS  SO  THAT  ORDINARY BUSINESS IS NOT INTERRUPTED AND
SAFETY AND SECURITY PROCEDURES ARE NOT COMPROMISED BY THE INSPECTION.
  § 536. PACKAGING AND LABELING OF HEMP EXTRACT. 1. THE  DEPARTMENT,  IN
CONSULTATION  WITH  THE  DEPARTMENT  OF  HEALTH, IS HEREBY AUTHORIZED TO
PROMULGATE RULES AND REGULATIONS GOVERNING THE PACKAGING AND LABELING OF
HEMP EXTRACT PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK STATE.
  2. SUCH REGULATIONS SHALL INCLUDE, BUT NOT BE  LIMITED  TO,  REQUIRING
LABELS WARNING CONSUMERS OF ANY POTENTIAL IMPACT ON HUMAN HEALTH RESULT-
ING  FROM THE CONSUMPTION OF HEMP EXTRACT PRODUCTS THAT SHALL BE AFFIXED
TO THOSE PRODUCTS WHEN SOLD, IF SUCH LABELS ARE DEEMED WARRANTED BY  THE
DEPARTMENT.  NO  LABEL  MAY  STATE  THAT HEMP EXTRACT CAN TREAT, CURE OR
PREVENT ANY DISEASE WITHOUT APPROVAL PURSUANT TO FEDERAL LAW.
  3. SUCH RULES AND REGULATIONS SHALL ESTABLISH A QR CODE WHICH  MAY  BE
USED  IN  CONJUNCTION  WITH  SIMILAR TECHNOLOGY FOR LABELS AND ESTABLISH
METHODS AND PROCEDURES FOR  DETERMINING,  AMONG  OTHER  THINGS,  SERVING
SIZES  FOR  HEMP  EXTRACT PRODUCTS, ACTIVE CANNABINOID CONCENTRATION PER
SERVING SIZE, NUMBER OF SERVINGS PER CONTAINER, AND THE GROWING  REGION,
STATE  OR  COUNTRY  OF  ORIGIN IF NOT FROM THE UNITED STATES. SUCH REGU-
LATIONS SHALL ALSO REQUIRE A SUPPLEMENT  FACT  PANEL  THAT  INCORPORATES
DATA REGARDING SERVING SIZES AND POTENCY THEREOF.
  4.  THE  PACKAGING,  SALE,  OR  POSSESSION BY ANY LICENSEE OF ANY HEMP
PRODUCT INTENDED FOR HUMAN OR ANIMAL CONSUMPTION OR USE NOT  LABELED  OR
OFFERED  IN CONFORMITY WITH RULES AND REGULATIONS PROMULGATED IN ACCORD-
ANCE WITH THIS SECTION SHALL BE GROUNDS FOR THE IMPOSITION  OF  A  FINE,
AND/OR THE SUSPENSION, REVOCATION OR CANCELLATION OF A LICENSE.
  §  537. PROVISIONS GOVERNING THE GROWING, MANUFACTURING AND EXTRACTING
OF HEMP EXTRACT. 1. NO  LICENSED  CANNABINOID  GROWER,  MANUFACTURER  OR
EXTRACTOR  SHALL SELL, OR AGREE TO SELL OR DELIVER IN THE STATE ANY HEMP
EXTRACT PRODUCTS, AS THE  CASE  MAY  BE,  EXCEPT  IN  SEALED  CONTAINERS
CONTAINING  QUANTITIES  IN  ACCORDANCE  WITH  SIZE STANDARDS PURSUANT TO
RULES ADOPTED BY THE DEPARTMENT.  SUCH  CONTAINERS  SHALL  HAVE  AFFIXED
THERETO SUCH LABELS AS MAY BE REQUIRED BY THE RULES OF THE DEPARTMENT.
  2.  LICENSED CANNABINOID GROWERS SHALL BE PROHIBITED FROM USING PESTI-
CIDES.
  3. ALL HEMP EXTRACT PRODUCTS SHALL BE EXTRACTED  AND  MANUFACTURED  IN
ACCORDANCE  WITH  GOOD  MANUFACTURING PROCESSES, PURSUANT TO PART 111 OR
117 OF TITLE 21 OF THE CODE OF FEDERAL REGULATIONS AS  MAY  BE  MODIFIED
AND DECIDED UPON BY THE COMMISSIONER IN REGULATION.
  4.  WITHIN  THIRTY  DAYS  OF  THE  EFFECTIVE DATE OF THIS ARTICLE, THE
DEPARTMENT SHALL APPROVE THE  MANUFACTURE,  DISTRIBUTION,  AND  SALE  OF
BEVERAGES  CONTAINING  NO MORE THAN TWENTY MILLIGRAMS OF CANNABIDIOL PER
TWELVE OUNCE BEVERAGE. THE HEMP EXTRACT USED IN SUCH BEVERAGES SHALL  BE
GROWN,  EXTRACTED AND MANUFACTURED IN THE STATE OF NEW YORK. THE DEPART-
MENT SHALL ISSUE GUIDANCE ON THE LABEL,  WARNING,  POINT  OF  SALE,  AND
ADVERTISING FOR SUCH BEVERAGES.
  5.  TERPENES  DERIVED  FROM THE HEMP PLANT ARE GENERALLY RECOGNIZED AS
SAFE.
  § 538. LABORATORY  TESTING.  1.  EVERY  CANNABINOID  MANUFACTURER  AND
CANNABINOID  EXTRACTOR  SHALL CONTRACT WITH AN INDEPENDENT LABORATORY TO
TEST THE HEMP EXTRACT PRODUCTS PRODUCED BY THE LICENSED MANUFACTURER  OR
EXTRACTOR.  THE  COMMISSIONER,  IN CONSULTATION WITH THE COMMISSIONER OF

A. 7680--A                         13

HEALTH, SHALL APPROVE THE LABORATORY AND  REQUIRE  THAT  THE  LABORATORY
REPORT  TESTING  RESULTS IN A MANNER DETERMINED BY THE COMMISSIONER. THE
COMMISSIONER IS AUTHORIZED TO ISSUE REGULATIONS REQUIRING THE LABORATORY
TO PERFORM CERTAIN TESTS AND SERVICES.
  2.  CANNABINOID  MANUFACTURERS  AND  CANNABINOID EXTRACTORS SHALL MAKE
LABORATORY TEST REPORTS  AVAILABLE  TO  PERSONS  HOLDING  A  CANNABINOID
PERMIT  PURSUANT  TO  SECTION FIVE HUNDRED FORTY-TWO OF THIS ARTICLE FOR
ALL CANNABIS PRODUCTS MANUFACTURED BY THE LICENSEE.
  3. ON-SITE LABORATORY TESTING BY LICENSEES  IS  PERMISSIBLE;  HOWEVER,
SUCH  TESTING  SHALL  NOT  BE  CERTIFIED  BY THE DEPARTMENT AND DOES NOT
EXEMPT THE LICENSEE FROM THE REQUIREMENTS OF QUALITY  ASSURANCE  TESTING
AT A TESTING LABORATORY PURSUANT TO THIS SECTION.
  §  539.  ADVERTISING.  THE DEPARTMENT SHALL PROMULGATE RULES AND REGU-
LATIONS GOVERNING THE ADVERTISING OF HEMP EXTRACT AND ANY OTHER  RELATED
PRODUCTS OR SERVICES AS DETERMINED BY THE COMMISSIONER.
  § 540. RESEARCH. 1. THE DEPARTMENT SHALL PROMOTE RESEARCH AND DEVELOP-
MENT  THROUGH  PUBLIC-PRIVATE PARTNERSHIPS TO BRING NEW HEMP EXTRACT AND
INDUSTRIAL HEMP DERIVED PRODUCTS TO MARKET WITHIN THE STATE.
  2. THE COMMISSIONER MAY DEVELOP AND CARRY OUT RESEARCH PROGRAMS  WHICH
MAY  INCLUDE  PROGRAMS  AT THE NEW YORK STATE COLLEGE OF AGRICULTURE AND
LIFE SCIENCES, PURSUANT TO SECTION FIFTY-SEVEN  HUNDRED  TWELVE  OF  THE
EDUCATION  LAW  AND/OR  NEW  YORK STATE UNIVERSITY RESEARCH INSTITUTIONS
RELATING TO INDUSTRIAL HEMP AND HEMP EXTRACT.
  § 541. REGULATIONS. THE COMMISSIONER SHALL MAKE REGULATIONS TO  IMPLE-
MENT THIS ARTICLE.
  §  542.  CANNABINOID  PERMIT.  THE  DEPARTMENT IS HEREBY AUTHORIZED TO
ISSUE CANNABINOID PERMITS TO RETAILERS,  WHOLESALERS,  AND  DISTRIBUTORS
AUTHORIZING  THEM  TO  SELL CANNABIS PRODUCTS DERIVED FROM HEMP EXTRACT.
THE COMMISSIONER SHALL HAVE THE AUTHORITY TO SET FEES FOR  SUCH  PERMIT,
TO  ESTABLISH  THE PERIOD DURING WHICH SUCH PERMIT IS AUTHORIZED, AND TO
MAKE RULES AND REGULATIONS, INCLUDING EMERGENCY REGULATIONS,  TO  IMPLE-
MENT THIS SECTION.
  § 543. NEW YORK HEMP PRODUCT. THE COMMISSIONER MAY ESTABLISH AND ADOPT
OFFICIAL GRADES AND STANDARDS FOR HEMP EXTRACT AND HEMP EXTRACT PRODUCTS
AS  HE  OR  SHE  MAY DEEM ADVISABLE, WHICH ARE PRODUCED FOR SALE IN THIS
STATE AND, FROM TIME TO TIME, MAY AMEND OR MODIFY SUCH GRADES AND STAND-
ARDS.
  § 544. PENALTIES AND VIOLATIONS OF THIS ARTICLE.  NOTWITHSTANDING  THE
PROVISION  OF  ANY  LAW  TO THE CONTRARY, THE FAILURE TO COMPLY WITH THE
REQUIREMENTS OF THIS ARTICLE,  THE  RULES  AND  REGULATIONS  PROMULGATED
THEREUNDER,  MAY  BE  PUNISHABLE BY A FINE OF NOT MORE THAN ONE THOUSAND
DOLLARS FOR A FIRST VIOLATION; NOT MORE THAN FIVE THOUSAND DOLLARS FOR A
SECOND VIOLATION; AND NOT MORE THAN TEN THOUSAND  DOLLARS  FOR  A  THIRD
VIOLATION AND EACH SUBSEQUENT VIOLATION THEREAFTER.
  § 545. HEMP WORKGROUP. THE COMMISSIONER SHALL APPOINT A NEW YORK STATE
INDUSTRIAL  HEMP  AND  HEMP  EXTRACT WORKGROUP, COMPOSED OF RESEARCHERS,
PRODUCERS, PROCESSORS, MANUFACTURERS AND  TRADE  ASSOCIATIONS,  TO  MAKE
RECOMMENDATIONS FOR THE INDUSTRIAL HEMP AND HEMP EXTRACT PROGRAMS, STATE
AND  FEDERAL  POLICIES AND POLICY INITIATIVES, AND OPPORTUNITIES FOR THE
PROMOTION AND MARKETING OF INDUSTRIAL HEMP AND HEMP EXTRACT AS  CONSIST-
ENT  WITH FEDERAL AND STATE LAWS, RULES AND REGULATIONS, WHICH WORKGROUP
SHALL CONTINUE FOR SUCH TIME AS THE COMMISSIONER DEEMS APPROPRIATE.
  § 546. PROHIBITIONS. EXCEPT AS AUTHORIZED IN THIS ARTICLE,  THE  MANU-
FACTURING  OF  HEMP  EXTRACT  FOR  HUMAN  OR  ANIMAL CONSUMPTION AND THE
DISTRIBUTION AND/OR SALE THEREOF IS PROHIBITED IN THIS STATE UNLESS  THE
MANUFACTURER  IS  LICENSED UNDER THIS ARTICLE. HEMP EXTRACT AND PRODUCTS

A. 7680--A                         14

DERIVED THEREFROM FOR HUMAN AND ANIMAL CONSUMPTION PRODUCED OUTSIDE  THE
STATE  SHALL  NOT  BE DISTRIBUTED OR SOLD IN THIS STATE UNLESS THEY MEET
ALL STANDARDS AND REQUIREMENTS ESTABLISHED FOR SUCH PRODUCT MANUFACTURED
IN  THE STATE UNDER THIS ARTICLE AND ITS RULES AND REGULATIONS AS DETER-
MINED BY THE DEPARTMENT.
  § 547. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE  APPLICA-
TION  THEREOF TO ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, SUCH INVA-
LIDITY SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THE  ARTICLE
WHICH  CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION,
AND TO THIS END THE PROVISIONS OF THIS ARTICLE ARE DECLARED TO BE SEVER-
ABLE.
  § 11. This act shall take effect on the ninetieth day after  it  shall
have become a law.