S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6612
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   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 and  a  new
 subdivision 3 is added 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.
   3.  "HEMP  EXTRACT"  MEANS ANY PRODUCT MADE OR DERIVED FROM INDUSTRIAL
 HEMP, INCLUDING THE SEEDS THEREOF AND ALL DERIVATIVES, EXTRACTS,  CANNA-
 BINOIDS, 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, FOR  THE  PURPOSES
 OF  EXTRACTING,  PROCESSING  AND  MANUFACTURING  SUCH  PRODUCT  USED  OR
 INTENDED FOR HUMAN OR ANIMAL CONSUMPTION  ON  USE  FOR  ITS  CANNABINOID
 CONTENT,  AS  DETERMINED  BY  THE  COMMISSIONER IN REGULATION. PROVIDED,
 HOWEVER WHEN SUCH PRODUCT IS PACKAGED OR  OFFERED  FOR  SALE  THAT  SUCH
 CONCENTRATION IS NOT MORE THAN 0.3 PERCENT DELTA-9 TETRAHYDROCANNABINOL.
 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 REGU-
 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.
                                                            LBD13458-01-9
              

 S. 6612                             2
 
   § 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, AND HEMP EXTRACT,
 permitted. [Notwithstanding any provision of law to the contrary, indus-
 trial] 1. INDUSTRIAL hemp and products derived from such hemp are  agri-
 cultural  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  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,  AND  HEMP  EXTRACT,
 provided  that  the  sites  and programs used for growing or cultivating
 industrial hemp are certified 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 EXTRACT CAN ONLY BE SOURCED FROM
 AUTHORIZED NEW YORK STATE INDUSTRIAL HEMP  PRODUCERS,  UNLESS  OTHERWISE
 AUTHORIZED BY THE DEPARTMENT.
   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,  EXTRACT,
 MANUFACTURE,  PRODUCE,  DISTRIBUTE AND/OR SELL INDUSTRIAL HEMP, PRODUCTS
 DERIVED FROM INDUSTRIAL HEMP, OR HEMP EXTRACT, IN THE STATE  UNLESS  (A)
 LICENSED BIENNIALLY BY THE COMMISSIONER OR (B) AUTHORIZED BY THE COMMIS-
 SIONER  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  UP  TO  FIVE  HUNDRED
 DOLLARS.
   3.  APPLICATION  FOR A LICENSE TO PROCESS, EXTRACT, AND/OR MANUFACTURE
 HEMP EXTRACT SHALL BE MADE UPON A FORM PRESCRIBED BY  THE  COMMISSIONER,
 ACCOMPANIED BY A LICENSE FEE, WHICH MAY BE BASED UPON THE AMOUNT OF HEMP
 EXTRACT TO BE PROCESSED, EXTRACTED AND/OR MANUFACTURED AND A NON-REFUND-
 ABLE APPLICATION FEE UP TO FIVE HUNDRED DOLLARS.
   4.  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.

 S. 6612                             3
 
   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.
   § 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, INCLUDING HEMP EXTRACT;
   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,
 PROCESSING, EXTRACTING, MANUFACTURING, SALE, DISTRIBUTION, AND TRANSPOR-
 TATION OF INDUSTRIAL HEMP GROWN IN THE STATE AND HEMP EXTRACT  PROCESSED
 AND/OR MANUFACTURED 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;

 S. 6612                             4

   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.  METHODS  OF  PRODUCING,  PROCESSING,  AND  PACKAGING HEMP EXTRACT;
 CONDITIONS OF SANITATION, ENVIRONMENTAL AND ENERGY STANDARDS, AND STAND-
 ARDS OF INGREDIENTS, QUALITY, AND  IDENTITY  OF  HEMP  EXTRACT  PRODUCTS
 CULTIVATED, PROCESSED, PACKAGED OR SOLD BY LICENSEES;
   7. ANY REQUIRED SECURITY MEASURES; AND
   8.  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. 1. EXCEPT AS AUTHORIZED BY STATE LAW, AND REGU-
 LATIONS PROMULGATED THEREUNDER,  THE  GROWTH,  CULTIVATION,  PROCESSING,
 SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED.
   2.  EXCEPT  AS  AUTHORIZED  IN THIS ARTICLE, THE MANUFACTURING 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 DERIVED THEREFROM FOR
 HUMAN AND ANIMAL CONSUMPTION PRODUCED  OUTSIDE  THE  STATE  MAY  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 DETERMINED BY THE
 DEPARTMENT.
   § 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,
 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 a new section 513 is added to read as follows:
   § 513. 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, INCLUDING HEMP  EXTRACT  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 OR HEMP EXTRACT 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 OR HEMP EXTRACT IN HIS OR HER POSSESSION,
 OR UNDER HIS OR HER CONTROL AND/OR IS IN VIOLATION OF THE PROVISIONS  OR

 S. 6612                             5
 
 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, PREM-
 ISES,  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 OR HEMP EXTRACT IN THE POSSESSION
 OR  UNDER  THE CONTROL OF ANY PERSON WHO SHALL REFUSE TO ALLOW ACCESS TO
 SUCH HEMP FOR INSPECTION OR SAMPLING,  (B)  PERMIT  THE  INSPECTION  AND
 SAMPLING  OF  ANY INDUSTRIAL HEMP OR HEMP EXTRACT 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 OFFI-
 CIAL AUTHORIZED BY THE COMMISSIONER  OR  BY  THIS  CHAPTER,  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  DELIV-
 ERED  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  OR  HEMP  EXTRACT
 WHEN  HE  OR SHE HAS REASON 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.  THE
 QUARANTINE MAY BY THE ISSUANCE OF AN ORDER DIRECTING THE OWNER OR CUSTO-
 DIAN  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  ADJACENT  THERETO  THAT  PROVIDES  AND
 REQUIRES  THAT  SUCH  PRODUCT  MUST  NOT BE DISTRIBUTED, DISPOSED OF, OR
 MOVED WITHOUT HIS OR HER WRITTEN PERMISSION, OR MAY QUARANTINE A PRODUCT
 BY OTHERWISE INFORMING THE OWNER OR CUSTODIAN THEREOF THAT  SUCH  CONDI-
 TION MUST BE COMPLIED WITH.
   4.  THE  COMMISSIONER  MAY  SEIZE  INDUSTRIAL  HEMP OR HEMP EXTRACT BY
 TAKING PHYSICAL POSSESSION OF INDUSTRIAL HEMP OR HEMP EXTRACT 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 OR HEMP
 EXTRACT AS AUTHORIZED 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  OR  HEMP
 EXTRACT  SHOULD NOT BE ORDERED DESTROYED. THE COMMISSIONER SHALL, THERE-
 AFTER, CONSIDER ALL THE RELEVANT EVIDENCE AND INFORMATION PRESENTED  AND
 SHALL  MAKE A DETERMINATION WHETHER SUCH INDUSTRIAL HEMP OR HEMP EXTRACT
 SHOULD BE ORDERED TO BE DESTROYED; THAT DETERMINATION 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 nine new
 sections 515, 516, 517, 518, 519, 520, 521,  522  and  523  to  read  as
 follows:
   §  515.  LIMITATIONS OF LICENSURE; DURATION. 1. NO LICENSE PURSUANT TO
 THIS ARTICLE MAY BE ISSUED TO A PERSON UNDER THE AGE OF EIGHTEEN YEARS.

 S. 6612                             6
 
   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.
   § 516. 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. 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.
   3. 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.
   § 517. 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.
   § 518. 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 SUSPENSION, REVOCATION OR CANCELLATION OF A LICENSE.
   §  519. PROVISIONS GOVERNING THE GROWING, MANUFACTURING AND EXTRACTING
 OF HEMP EXTRACT. 1. CULTIVATORS OF HEMP EXTRACT SHALL COMPLY WITH  PLANT
 CULTIVATION REGULATIONS, STANDARDS, AND GUIDELINES ISSUED BY THE DEPART-
 MENT, IN CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION.
 SUCH REGULATIONS, STANDARDS, AND GUIDELINES SHALL BE GUIDED BY SUSTAINA-
 BLE  FARMING PRINCIPLES AND PRACTICES SUCH AS ORGANIC, REGENERATIVE, AND
 INTEGRATED PEST MANAGEMENT MODELS, AND  SHALL  RESTRICT  TO  THE  EXTENT
 PRACTICABLE,  THE  USE OF PESTICIDES, HERBICIDES AND FUNGICIDES TO THOSE

 S. 6612                             7

 WHICH ARE BOTANICAL AND/OR BIOLOGICAL PURSUANT TO THE FEDERAL AND  STATE
 ORGANIC AGRICULTURE RULES AND REGULATIONS.
   2.  THE NONPHARMACEUTICAL OR NONMEDICAL PRODUCTION, MARKETING, SALE OR
 DISTRIBUTION OF BEVERAGES, FOOD, OR FOOD PRODUCTS WITHIN THE STATE  THAT
 CONTAIN  HEMP OR ANY PART OF THE HEMP PLANT, INCLUDING THE SEEDS AND ALL
 NATURALLY OCCURRING  CANNABINOIDS,  COMPOUNDS,  CONCENTRATES,  EXTRACTS,
 ISOLATES,  TERPENES,  RESINS, ISOMERS, ACIDS, SALTS, SALTS OF ISOMERS OR
 CANNABIDIOL DERIVATIVES, MAY NOT BE RESTRICTED OR PROHIBITED WITHIN  THE
 STATE  BASED  SOLELY  ON  THE  INCLUSION OF HEMP OR ANY PART OF THE HEMP
 PLANT. UPON REQUEST OF A PROCESSOR, MANUFACTURER OR SELLER OF BEVERAGES,
 FOOD OR FOOD PRODUCTS THAT CONTAIN HEMP OR ANY PART OF SUCH HEMP  PLANT,
 SUCH  AS TERPENES, THAT ARE GENERALLY RECOGNIZED AS SAFE, THE DEPARTMENT
 SHALL ISSUE A DECLARATION THAT SUCH PRODUCTS SHALL NOT BE  REGULATED  AS
 HEMP EXTRACT.
   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.
   § 520. LABORATORY TESTING. 1. THE DEPARTMENT IN CONSULTATION WITH  THE
 DEPARTMENT  OF  HEALTH  SHALL  ISSUE  REGULATIONS  REGARDING  LABORATORY
 REQUIREMENTS OF HEMP EXTRACT LICENSEES.
   2. EVERY HEMP EXTRACT LICENSEE  SHALL  CONTRACT  WITH  AN  INDEPENDENT
 LABORATORY TO TEST THE HEMP EXTRACT PRODUCTS PRODUCED 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
 PURSUANT TO THIS SECTION.
   § 521. 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,  AFTER NOTICE AND OPPORTUNITY TO BE HEARD, 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.
   § 522. 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.
   §  523. 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.  Subdivision  21  of  section 3302 of the public health law, as
 added by chapter 878 of the laws of 1972 and as  renumbered  by  chapter
 537 of the laws of 1998, is amended to read as follows:
   21.  "Marihuana"  means  all parts of the plant of the genus Cannabis,
 whether growing or not; the seeds thereof; the resin extracted from  any
 part  of  the  plant; and every compound, manufacture, salt, derivative,
 mixture, or preparation of the plant, its seeds or resin.  It  does  not

 S. 6612                             8
 
 include  the mature stalks of the plant, fiber produced from the stalks,
 oil or cake made from the seeds of the plant, any other compound,  manu-
 facture,  salt, derivative, mixture, or preparation of the mature stalks
 (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
 sterilized seed of the plant which is incapable of  germination.  "MARI-
 HUANA"  SHALL  NOT INCLUDE INDUSTRIAL HEMP AS DEFINED IN SUBDIVISION ONE
 OF SECTION FIVE HUNDRED FIVE OF THE AGRICULTURE AND MARKETS LAW.
   § 12. This act shall take effect on January 1, 2020.