Today, Governor Cuomo signed legislation (A7680/S6184) that amends the permitting process for industrial hemp growers and also establishes a regulatory framework for hemp extraction and hemp product marketing in New York State.
Some key provisions include:
- The definition of industrial hemp now includes the seeds and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers.
- The bill requires individuals growing, processing, extracting, or manufacturing hemp-extract products sold or marketed for cannabinoid content and used for human or animal consumption to obtain a grower, manufacturer, or extractor license.
- Industrial hemp used for research must be sourced from authorized NYS industrial hemp producers. Exceptions may be made only for grain and fiber. Hemp for extracts can only be sourced from authorized NYS industrial hemp producers.
- Hemp extracts sold or possessed for sale in New York State must be packaged and labeled according to regulations to be developed by the Department of Agriculture in consultation with the Department of Health.
- Hemp-extract products shall be manufactured in accordance with good manufacturing processes.
- Hemp extracts used in beverages offered for sale in New York State shall be grown, extracted, and manufactured in the state.
The bill also contains provisions for licensing, enforcement, violations and penalties, advertising, laboratory testing, labeling, packaging, recordkeeping, and inspections.
While today’s bill does not include any chapter amendments, there are 90 days before the bill will go into effect, giving both the Assembly and Senate time during the next session to vote on chapter amendments.
The NYS press release indicated “the legislation was signed pursuant to a chapter agreement, which provided for a more streamlined regulatory pathway for hemp products, granted the Department of Agriculture and Markets supervision over hemp growers and the Department of Health supervision over hemp extract; created a registration requirement for sellers of hemp-extract products; made conforming regulatory changes to the 2018 Farm Bill; and defers decision making on hemp extracts, including CBD, as additives for food and beverages.”
If you have any questions regarding the content of this alert, please contact Aleece Burgio, cannabis team leader, at aburgio@barclaydamon.com; Mary Volcko, project specialist, at mvolcko@barclaydamon.com; or another member of the firm’s cannabis team.