[ ] is old law to be omitted.
LBD11646-11-0
S. 6968 2
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, CANNA-
BINOIDS, 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 TWO-
YEAR 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, DISTRIB-
UTION 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, CULTIVAT-
ING, PROCESSING AND MANUFACTURING OF HEMP AS PART OF AGRICULTURAL PILOT
PROGRAMS CONDUCTED BY THE DEPARTMENT OR AN INSTITUTION OF HIGHER EDUCA-
TION TO STUDY THE GROWTH AND CULTIVATION, SALE, DISTRIBUTION, TRANSPOR-
TATION, 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 PROC-
ESSING 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, CULTI-
VATION, 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:
S. 6968 3
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, PURSU-
ANT TO FEDERAL LAW;
8. SUCH OTHER MATTERS THAT ARE NECESSARY OR APPROPRIATE FOR THE ADMIN-
ISTRATION OF AGRICULTURAL PILOT PROGRAMS OF THE DEPARTMENT OR INSTI-
TUTIONS 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 NECES-
SARY, DEPENDING UPON THE HEMP'S INTENDED USE; OR
12. SUCH OTHER RULES AND REGULATIONS AS THE COMMISSIONER DEEMS APPRO-
PRIATE 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 THERE-
OF, AS SET OUT IN REGULATION, SHALL BE UPON A FORM SPECIFIED BY THE
COMMISSIONER, ACCOMPANIED BY A REASONABLE APPLICATION FEE FOR NEW APPLI-
CATIONS OR SIGNIFICANT MODIFICATIONS TO AN APPLICATION, WHICH SHALL BE
ESTABLISHED BY REGULATION AND WHICH MAY BE MADE NON-REFUNDABLE BY REGU-
LATION.
S. 6968 4
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 AUTHOR-
IZED ACTIVITY AND THOSE IN CONTROL OF THE ENTITY, INCLUDING PRINCIPALS,
OFFICERS, OR OTHERS EXERCISING SUCH CONTROL. THE NAMES OF SUCH INDIVID-
UALS 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, EQUIP-
MENT, PROCESS CONTROLS, TESTING CAPABILITY AND SECURITY, TO GROW, CULTI-
VATE 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 EXPIRA-
TION 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 FACILI-
TIES, 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 ARTI-
CLE 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 REFUS-
ING 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
S. 6968 5
THE PARTY AFFECTED THEREBY A COURT PROCEEDING IS INSTITUTED TO REVIEW
SUCH ACTION. THE PLEADINGS UPON WHICH SUCH REVIEW PROCEEDING IS INSTI-
TUTED 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.
§ 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, REFERRED TO AS "THE DIVISION" FOR THE PURPOSES OF THIS
SECTION, WITH RESPECT TO ANY PERSON SEEKING AUTHORIZATION UNDER THIS
ARTICLE TO UNDERTAKE A HEMP PILOT PROJECT OR A HEMP LICENSE; AND/OR EACH
INDIVIDUAL WHO HAS SUBSTANTIAL MANAGEMENT RESPONSIBILITY FOR THE AUTHOR-
IZED OR LICENSED ACTIVITY OR THOSE IN CONTROL OF THE ENTITY, INCLUDING
PRINCIPALS, OFFICERS, OR OTHER SUCH PERSONS. THOSE PERSONS FOR WHOM
CRIMINAL HISTORY INFORMATION IS SOUGHT SHALL PROMPTLY SUBMIT TO THE
DIVISION HIS OR HER FINGERPRINTS IN SUCH FORM AND IN SUCH MANNER AS
SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCTING A SEARCH IDEN-
TIFYING CRIMINAL CONVICTIONS AND PENDING CRIMINAL CHARGES AND RETURNING
A REPORT THEREON IN ACCORDANCE WITH THE PROCEDURES AND REQUIREMENTS
ESTABLISHED BY THE DIVISION PURSUANT TO THE PROVISIONS OF ARTICLE THIR-
TY-FIVE OF THE EXECUTIVE LAW, WHICH SHALL INCLUDE THE PAYMENT OF THE
SPECIFIED PROCESSING FEES FOR THE COST OF THE DIVISION'S FULL SEARCH AND
RETAIN PROCEDURES AND A NATIONAL CRIMINAL HISTORY RECORD CHECK FOR SUCH
INFORMATION. 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 PERSON'S PREVI-
OUS CRIMINAL CONVICTIONS AND PENDING CRIMINAL CHARGES, IF ANY, OR A
STATEMENT THAT THE PERSON HAS NO SUCH PREVIOUS CRIMINAL HISTORY ACCORD-
ING TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION PURSUANT TO
THIS SECTION MAY ALSO BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTI-
GATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK AS DESCRIBED IN THIS
SECTION. IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED, THE PERSON
TO BE FINGERPRINTED SHALL FURNISH THEM UPON REQUEST.
§ 514. RECORDS. EVERY LICENSEE SHALL KEEP, IN SUCH FORM AS THE COMMIS-
SIONER MAY DIRECT, SUCH RECORDS AS MAY BE REQUIRED PURSUANT TO RULES AND
REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE.
§ 515. AIDS TO ENFORCEMENT. 1. ALL LICENSEES SHALL BE SUBJECT TO
REASONABLE INSPECTION BY THE DEPARTMENT 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
REASONABLE ACCOMMODATIONS SO THAT ORDINARY BUSINESS IS NOT INTERRUPTED,
AND SAFETY AND SECURITY PROCEDURES ARE NOT COMPROMISED BY THE
INSPECTION.
2. THE COMMISSIONER MAY PROMULGATE RULES AND REGULATIONS TO AID IN THE
ENFORCEMENT OF THIS ARTICLE, PROVIDED SUCH ENFORCEMENT TOOLS, REMEDIES
AND/OR PROCEDURES ARE AVAILABLE TO THE COMMISSIONER FOR ENFORCEMENT WITH
S. 6968 6
RESPECT TO SIMILAR LICENSED PRACTICES OR PROHIBITED CONDUCT UNDER THIS
CHAPTER, AND/OR THE CIVIL PRACTICE LAW AND RULES.
§ 516. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER DETERMINES, AFTER
NOTICE AND AN OPPORTUNITY TO BE HEARD, THAT A LICENSEE HAS NEGLIGENTLY
VIOLATED A PROVISION OF THIS ARTICLE OR ITS RULES OR REGULATIONS, 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 FOR A PERIOD OF NO LESS THAN THE NEXT TWO CALENDAR
YEARS FOLLOWING THE COMMENCEMENT DATE OF THE COMPLIANCE ACTION PLAN.
NOTWITHSTANDING THE ABOVE, THIS PROVISION SHALL NOT BE APPLICABLE TO A
RESEARCH PARTNER CONDUCTING HEMP RESEARCH PURSUANT TO A RESEARCH PARTNER
AGREEMENT, THE TERMS OF WHICH SHALL CONTROL.
§ 517. PENALTIES. NOTWITHSTANDING THE PROVISIONS OF ANY LAW TO THE
CONTRARY, EXCEPT SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE, THE FAIL-
URE TO COMPLY WITH A REQUIREMENT OF THIS ARTICLE, A RULE OR REGULATION
PROMULGATED THEREUNDER, OR THE RESEARCH AGREEMENTS ENTERED INTO BY THOSE
CONDUCTING DEPARTMENT AUTHORIZED RESEARCH MAY BE PUNISHABLE BY A CIVIL
PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR A FIRST VIOLATION; NOT
MORE THAN FIVE THOUSAND DOLLARS FOR A SECOND VIOLATION WITHIN THREE
YEARS; AND NOT MORE THAN TEN THOUSAND DOLLARS FOR A THIRD VIOLATION AND
EACH SUBSEQUENT VIOLATION THEREAFTER, WITHIN THREE YEARS.
§ 518. REMEDIES. THE COMMISSIONER MAY INSTITUTE SUCH ACTION AT LAW OR
IN EQUITY AS MAY BE NECESSARY TO ENFORCE COMPLIANCE WITH ANY PROVISION
OF THIS ARTICLE OR OF ANY RULE OR REGULATION APPLICABLE THERETO OR
PROMULGATED THEREUNDER IN A MANNER CONSISTENT WITH THIS CHAPTER AND/OR
THE CIVIL PRACTICE LAW AND RULES.
§ 519. HEMP ECONOMIC DEVELOPMENT. TO THE EXTENT THE COMMISSIONER
BELIEVES IT TO BE NECESSARY, THE COMMISSIONER SHALL CONSULT AND COOPER-
ATE WITH THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION WITH RESPECT
TO THE FUNDING AND SUPPORT OF RESEARCH CONCERNING HEMP AND BUSINESSES
INVOLVED IN GROWING, CULTIVATING, AND PROCESSING HEMP FOR FOOD, FIBER,
CANNABINOID CONTENT, CONSTRUCTION MATERIALS AND OTHER USES.
§ 520. HEMP DATA COLLECTION AND BEST FARMING PRACTICES. 1. THE COMMIS-
SIONER SHALL HAVE THE POWER TO COLLECT AND PUBLISH DATA AND RESEARCH
CONCERNING, AMONG OTHER THINGS, THE GROWTH, CULTIVATION, PRODUCTION AND
PROCESSING METHODS OF HEMP AND PRODUCTS DERIVED FROM HEMP AND WORK WITH
THE NEW YORK STATE COLLEGE OF AGRICULTURE AND LIFE SCIENCES AT CORNELL
PURSUANT TO SECTION FIFTY-SEVEN HUNDRED TWELVE OF THE EDUCATION LAW AND
CORNELL COOPERATIVE EXTENSION PURSUANT TO SECTION TWO HUNDRED TWENTY-
FOUR OF THE COUNTY LAW TO PROMOTE BEST FARMING PRACTICES FOR HEMP WHICH
ARE COMPATIBLE WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJEC-
TIVES.
2. THE DEPARTMENT, IN CONJUNCTION WITH THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, SHALL PROMULGATE ALL NECESSARY RULES AND REGULATIONS, AS
WELL AS A PROCESS FOR APPROVAL, GOVERNING THE SAFE PRODUCTION OF HEMP,
INCLUDING, BUT NOT LIMITED TO, ENVIRONMENTAL AND ENERGY STANDARDS AND
RESTRICTIONS ON THE USE OF PESTICIDES.
§ 521. 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.
§ 2. The public health law is amended by adding a new article 33-B to
read as follows:
S. 6968 7
ARTICLE 33-B
REGULATION OF CANNABINOID HEMP AND HEMP EXTRACT
SECTION 3398. DEFINITIONS.
3398-A. RULEMAKING AUTHORITY.
3398-B. CANNABINOID HEMP PROCESSOR LICENSE.
3398-C. CANNABINOID HEMP RETAILER LICENSE.
3398-D. CANNABINOID LICENSE APPLICATIONS.
3398-E. INFORMATION TO BE REQUESTED IN APPLICATIONS FOR
LICENSES.
3398-F. FEES.
3398-G. SELECTION CRITERIA.
3398-H. LICENSE RENEWAL.
3398-I. FORM OF LICENSE.
3398-J. TRANSFERABILITY; AMENDMENT TO LICENSE; CHANGE IN OWNER-
SHIP OR CONTROL.
3398-K. GRANTING, SUSPENDING OR REVOKING LICENSES.
3398-L. RECORD KEEPING AND TRACKING.
3398-M. PACKAGING AND LABELING OF CANNABINOID HEMP AND HEMP
EXTRACT.
3398-N. PROCESSING OF CANNABINOID HEMP AND HEMP EXTRACT.
3398-O. LABORATORY TESTING.
3398-P. NEW YORK HEMP PRODUCT.
3398-Q. PENALTIES.
3398-R. HEMP WORKGROUP.
3398-S. PROHIBITIONS.
3398-T. SPECIAL USE PERMITS.
3398-U. SEVERABILITY.
§ 3398. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS, UNLESS THE CONTEXT CLEARLY REQUIRES
OTHERWISE:
1. "CANNABINOID" MEANS THE PHYTOCANNABINOIDS FOUND IN HEMP AND DOES
NOT INCLUDE SYNTHETIC CANNABINOIDS AS THAT TERM IS DEFINED IN SUBDIVI-
SION (G) OF SCHEDULE I OF SECTION THIRTY-THREE HUNDRED SIX OF THIS CHAP-
TER.
2. "CANNABINOID HEMP" MEANS ANY HEMP AND ANY PRODUCT PROCESSED OR
DERIVED FROM HEMP, THAT IS USED FOR HUMAN CONSUMPTION PROVIDED THAT WHEN
SUCH PRODUCT IS PACKAGED OR OFFERED FOR RETAIL SALE TO A CONSUMER, IT
SHALL NOT HAVE A CONCENTRATION OF MORE THAN THREE TENTHS OF A PERCENT
DELTA-9 TETRAHYDROCANNABINOL.
3. "USED FOR HUMAN CONSUMPTION" MEANS INTENDED BY THE MANUFACTURER OR
DISTRIBUTOR TO BE: (A) USED FOR HUMAN CONSUMPTION FOR ITS CANNABINOID
CONTENT; OR (B) USED IN, ON OR BY THE HUMAN BODY FOR ITS CANNABINOID
CONTENT.
4. "HEMP" MEANS THE PLANT CANNABIS SATIVA L. AND ANY PART OF SUCH
PLANT, 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 (THC) OF NOT MORE
THAN THREE-TENTHS OF A PERCENT ON A DRY WEIGHT BASIS. IT SHALL NOT
INCLUDE "MEDICAL MARIHUANA" AS DEFINED IN SUBDIVISION EIGHT OF SECTION
THIRTY-THREE HUNDRED SIXTY OF THIS CHAPTER.
5. "HEMP EXTRACT" MEANS ALL DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOM-
ERS, ACIDS, SALTS, AND SALTS OF ISOMERS DERIVED FROM HEMP, USED OR
INTENDED FOR HUMAN CONSUMPTION, FOR ITS CANNABINOID CONTENT, WITH A
DELTA-9 TETRAHYDROCANNABINOL CONCENTRATION OF NOT MORE THAN AN AMOUNT
DETERMINED BY THE DEPARTMENT IN REGULATION. FOR THE PURPOSE OF THIS
ARTICLE, HEMP EXTRACT EXCLUDES (A) ANY FOOD, FOOD INGREDIENT OR FOOD
S. 6968 8
ADDITIVE THAT IS GENERALLY RECOGNIZED AS SAFE PURSUANT TO FEDERAL LAW;
OR (B) ANY HEMP EXTRACT THAT IS NOT USED FOR HUMAN CONSUMPTION. SUCH
EXCLUDED SUBSTANCES SHALL NOT BE REGULATED PURSUANT TO THE PROVISIONS OF
THIS ARTICLE BUT ARE SUBJECT TO OTHER PROVISIONS OF APPLICABLE STATE
LAW, RULES AND REGULATIONS.
6. "LICENSE" MEANS A LICENSE ISSUED PURSUANT TO THIS ARTICLE.
7. "CANNABINOID HEMP PROCESSOR LICENSE" MEANS A LICENSE GRANTED BY THE
DEPARTMENT TO PROCESS, EXTRACT, PACK OR MANUFACTURE CANNABINOID HEMP OR
HEMP EXTRACT INTO PRODUCTS, WHETHER IN INTERMEDIATE OR FINAL FORM, USED
FOR HUMAN CONSUMPTION.
8. "PROCESSING" MEANS EXTRACTING, PREPARING, TREATING, MODIFYING,
COMPOUNDING, MANUFACTURING OR OTHERWISE MANIPULATING CANNABINOID HEMP TO
CONCENTRATE OR EXTRACT ITS CANNABINOIDS, OR CREATING PRODUCT, WHETHER IN
INTERMEDIATE OR FINAL FORM, USED FOR HUMAN CONSUMPTION. FOR PURPOSES OF
THIS ARTICLE, PROCESSING DOES NOT INCLUDE: (A) GROWING, CULTIVATION,
CLONING, HARVESTING, DRYING, CURING, GRINDING OR TRIMMING WHEN AUTHOR-
IZED PURSUANT TO ARTICLE TWENTY-NINE OF THE AGRICULTURE AND MARKETS LAW;
OR
(B) MERE TRANSPORTATION, SUCH AS BY COMMON CARRIER OR ANOTHER ENTITY
OR INDIVIDUAL.
§ 3398-A. RULEMAKING AUTHORITY. THE COMMISSIONER MAY MAKE REGULATIONS
PURSUANT TO THIS ARTICLE FOR THE PROCESSING, DISTRIBUTION, MARKETING,
TRANSPORTATION AND SALE OF CANNABINOID HEMP AND HEMP EXTRACTS USED FOR
HUMAN CONSUMPTION, WHICH MAY INCLUDE, BUT NOT BE LIMITED TO:
1. SPECIFYING FORMS, ESTABLISHING APPLICATION, REASONABLE ADMINIS-
TRATION AND RENEWAL FEES, OR LICENSE DURATION;
2. ESTABLISHING THE QUALIFICATIONS AND CRITERIA FOR LICENSING, AS
AUTHORIZED BY LAW;
3. THE BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES AND
LAWFUL PROCEDURES FOR THEIR INSPECTION;
4. ANY REPORTING REQUIREMENTS;
5. METHODS AND STANDARDS OF PROCESSING, LABELING, PACKAGING AND
MARKETING OF CANNABINOID HEMP, HEMP EXTRACT AND PRODUCTS DERIVED THERE-
FROM;
6. PROCEDURES FOR HOW CANNABINOID HEMP, HEMP EXTRACT OR INGREDIENTS,
ADDITIVES, OR PRODUCTS DERIVED THEREFROM CAN BE DEEMED AS ACCEPTABLE FOR
SALE IN THE STATE;
7. PROVISIONS GOVERNING THE MODES AND FORMS OF ADMINISTRATION, INCLUD-
ING INHALATION;
8. PROCEDURES FOR DETERMINING WHETHER CANNABINOID HEMP, HEMP EXTRACT
OR INGREDIENTS, ADDITIVES, OR PRODUCTS DERIVED THEREFROM PRODUCED
OUTSIDE THE STATE OR WITHIN THE STATE MEET THE STANDARDS AND REQUIRE-
MENTS OF THIS ARTICLE AND CAN THEREFORE BE SOLD WITHIN THE STATE;
9. PROCEDURES FOR THE GRANTING, CANCELLATION, REVOCATION OR SUSPENSION
OF LICENSES, CONSISTENT WITH THE STATE ADMINISTRATIVE PROCEDURES ACT;
10. RESTRICTIONS GOVERNING THE ADVERTISING AND MARKETING OF CANNABI-
NOID HEMP, HEMP EXTRACT AND PRODUCTS DERIVED THEREFROM; AND
11. ANY OTHER REGULATIONS NECESSARY TO IMPLEMENT THIS ARTICLE.
§ 3398-B. CANNABINOID HEMP PROCESSOR LICENSE. 1. PERSONS PROCESSING
CANNABINOID HEMP OR HEMP EXTRACT USED FOR HUMAN CONSUMPTION, WHETHER IN
INTERMEDIATE OR FINAL FORM, SHALL BE REQUIRED TO OBTAIN A CANNABINOID
HEMP PROCESSOR LICENSE FROM THE DEPARTMENT.
2. A CANNABINOID HEMP PROCESSOR LICENSE AUTHORIZES ONE OR MORE SPECIF-
IC ACTIVITIES RELATED TO THE PROCESSING OF CANNABINOID HEMP INTO
PRODUCTS USED FOR HUMAN CONSUMPTION, WHETHER IN INTERMEDIATE OR FINAL
FORM, AND THE DISTRIBUTION OR SALE THEREOF BY THE LICENSEE. NOTHING
S. 6968 9
HEREIN SHALL PREVENT A CANNABINOID HEMP PROCESSOR FROM PROCESSING,
EXTRACTING AND PROCESSING HEMP PRODUCTS NOT TO BE USED FOR HUMAN
CONSUMPTION.
3. PERSONS AUTHORIZED TO GROW HEMP PURSUANT TO ARTICLE TWENTY-NINE OF
THE AGRICULTURE AND MARKETS LAW ARE NOT AUTHORIZED TO ENGAGE IN PROCESS-
ING OF CANNABINOID HEMP OR HEMP EXTRACT WITHOUT FIRST BEING LICENSED AS
A CANNABINOID HEMP PROCESSOR UNDER THIS ARTICLE.
4. THIS ARTICLE SHALL NOT APPLY TO HEMP, CANNABINOID HEMP, HEMP
EXTRACTS OR PRODUCTS DERIVED THEREFROM THAT ARE NOT USED FOR HUMAN
CONSUMPTION. THIS ARTICLE ALSO SHALL NOT APPLY TO HEMP, CANNABINOID
HEMP, HEMP EXTRACTS OR PRODUCTS DERIVED THEREFROM THAT HAVE BEEN DEEMED
GENERALLY RECOGNIZED AS SAFE PURSUANT TO FEDERAL LAW.
5. THE COMMISSIONER SHALL HAVE THE AUTHORITY TO SET REASONABLE FEES
FOR SUCH LICENSE, TO LIMIT THE ACTIVITIES PERMITTED BY SUCH LICENSE, TO
ESTABLISH THE PERIOD DURING WHICH SUCH LICENSE IS AUTHORIZED, WHICH
SHALL BE TWO YEARS OR MORE, AND TO MAKE RULES AND REGULATIONS NECESSARY
TO IMPLEMENT THIS SECTION.
6. ANY PERSON HOLDING AN ACTIVE RESEARCH PARTNERSHIP AGREEMENT WITH
THE DEPARTMENT OF AGRICULTURE AND MARKETS, AUTHORIZING THAT PERSON TO
PROCESS CANNABINOID HEMP, SHALL BE AWARDED LICENSURE UNDER THIS SECTION,
PROVIDED THAT THE RESEARCH PARTNER IS ACTIVELY PERFORMING RESEARCH
PURSUANT TO SUCH AGREEMENT AND IS ABLE TO DEMONSTRATE COMPLIANCE WITH
THIS ARTICLE, AS DETERMINED BY THE DEPARTMENT, AFTER NOTICE AND AN
OPPORTUNITY TO BE HEARD.
§ 3398-C. CANNABINOID HEMP RETAILER LICENSE. 1. RETAILERS SELLING
CANNABINOID HEMP, IN FINAL FORM TO CONSUMERS WITHIN THE STATE, SHALL BE
REQUIRED TO OBTAIN A CANNABINOID HEMP RETAILER LICENSE FROM THE DEPART-
MENT.
2. THE COMMISSIONER SHALL HAVE THE AUTHORITY TO SET REASONABLE FEES
FOR SUCH LICENSE, TO ESTABLISH THE PERIOD DURING WHICH SUCH LICENSE IS
AUTHORIZED, WHICH SHALL BE ONE YEAR OR MORE, AND TO MAKE RULES AND REGU-
LATIONS NECESSARY TO IMPLEMENT THIS SECTION.
§ 3398-D. CANNABINOID LICENSE APPLICATIONS. 1. PERSONS SHALL APPLY FOR
A LICENSE UNDER THIS ARTICLE BY SUBMITTING AN APPLICATION UPON A FORM
SUPPLIED BY THE DEPARTMENT, PROVIDING ALL THE RELEVANT REQUESTED INFOR-
MATION, VERIFIED BY THE APPLICANT OR AN AUTHORIZED REPRESENTATIVE OF THE
APPLICANT.
2. A SEPARATE LICENSE SHALL BE REQUIRED FOR EACH FACILITY AT WHICH
PROCESSING OR RETAIL SALES ARE CONDUCTED; HOWEVER, AN APPLICANT MAY
SUBMIT ONE APPLICATION FOR SEPARATE LICENSURE AT MULTIPLE LOCATIONS.
3. EACH APPLICANT SHALL REMIT WITH ITS APPLICATION THE FEE FOR EACH
REQUESTED LICENSE, WHICH SHALL BE A REASONABLE FEE.
§ 3398-E. INFORMATION TO BE REQUESTED IN APPLICATIONS FOR LICENSES. 1.
THE COMMISSIONER MAY SPECIFY THE MANNER AND FORM IN WHICH AN APPLICATION
SHALL BE SUBMITTED TO THE DEPARTMENT FOR LICENSURE UNDER THIS ARTICLE.
2. THE COMMISSIONER MAY ADOPT REGULATIONS ESTABLISHING WHAT RELEVANT
INFORMATION SHALL BE INCLUDED ON AN APPLICATION FOR LICENSURE UNDER THIS
ARTICLE. SUCH INFORMATION MAY INCLUDE, BUT IS NOT LIMITED TO: INFORMA-
TION ABOUT THE APPLICANT'S IDENTITY; OWNERSHIP AND INVESTMENT INFORMA-
TION, INCLUDING THE CORPORATE STRUCTURE; EVIDENCE OF GOOD MORAL CHARAC-
TER; FINANCIAL STATEMENTS; INFORMATION ABOUT THE PREMISES TO BE
LICENSED; INFORMATION ABOUT THE ACTIVITIES TO BE LICENSED; AND ANY OTHER
RELEVANT INFORMATION SPECIFIED IN REGULATION.
3. ALL LICENSE APPLICATIONS SHALL BE SIGNED BY THE APPLICANT IF AN
INDIVIDUAL, BY A MANAGING PARTNER IF A LIMITED LIABILITY COMPANY, BY AN
OFFICER IF A CORPORATION, OR BY ALL PARTNERS IF A PARTNERSHIP. EACH
S. 6968 10
PERSON SIGNING SUCH APPLICATION SHALL VERIFY IT AS TRUE UNDER THE PENAL-
TIES OF PERJURY.
4. ALL LICENSE APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK, DRAFT OR
OTHER FORMS OF PAYMENT AS THE DEPARTMENT MAY REQUIRE OR AUTHORIZE IN THE
REASONABLE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE.
5. IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR THE
GRANTING, MODIFICATION OR RENEWAL OF A LICENSE, IN ANY OF THE MATERIAL
FACTS REQUIRED TO BE SET FORTH IN SUCH APPLICATION, A SUPPLEMENTAL
STATEMENT GIVING NOTICE OF SUCH CHANGE, DULY VERIFIED, SHALL BE FILED
WITH THE DEPARTMENT WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE TO DO SO,
IF WILLFUL AND DELIBERATE, MAY BE GROUNDS FOR REVOCATION OF THE LICENSE.
§ 3398-F. FEES. THE DEPARTMENT MAY CHARGE LICENSEES A REASONABLE
LICENSE FEE. SUCH FEE MAY BE BASED ON THE ACTIVITIES PERMITTED BY THE
LICENSE, THE AMOUNT OF CANNABINOID HEMP OR HEMP EXTRACT TO BE PROCESSED
OR EXTRACTED BY THE LICENSEE, THE GROSS ANNUAL RECEIPTS OF THE LICENSEE
FOR THE PREVIOUS LICENSE PERIOD, OR ANY OTHER FACTORS REASONABLY DEEMED
APPROPRIATE BY THE DEPARTMENT.
§ 3398-G. SELECTION CRITERIA. 1. THE APPLICANT, IF AN INDIVIDUAL OR
INDIVIDUALS, SHALL FURNISH EVIDENCE OF THE INDIVIDUAL'S GOOD MORAL CHAR-
ACTER, AND IF AN ENTITY, THE APPLICANT SHALL FURNISH EVIDENCE OF THE
GOOD MORAL CHARACTER OF THE INDIVIDUALS WHO HAVE OR WILL HAVE SUBSTAN-
TIAL RESPONSIBILITY FOR THE LICENSED OR AUTHORIZED ACTIVITY AND THOSE IN
CONTROL OF THE ENTITY, INCLUDING PRINCIPALS, OFFICERS, OR OTHERS WITH
SUCH CONTROL.
2. THE APPLICANT SHALL FURNISH EVIDENCE OF THE APPLICANT'S EXPERIENCE
AND COMPETENCY, AND THAT THE APPLICANT HAS OR WILL HAVE ADEQUATE FACILI-
TIES, EQUIPMENT, PROCESS CONTROLS, AND SECURITY TO UNDERTAKE THOSE
ACTIVITIES FOR WHICH LICENSURE IS SOUGHT.
3. THE APPLICANT SHALL FURNISH EVIDENCE OF HIS, HER OR ITS ABILITY TO
COMPLY WITH ALL APPLICABLE STATE AND LOCAL LAWS, RULES AND REGULATIONS.
4. 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.
5. NO LICENSE PURSUANT TO THIS ARTICLE MAY BE ISSUED TO AN INDIVIDUAL
UNDER THE AGE OF EIGHTEEN YEARS.
§ 3398-H. LICENSE RENEWAL. 1. EACH LICENSE, ISSUED PURSUANT TO THIS
ARTICLE, MAY BE RENEWED UPON APPLICATION THEREFOR BY THE LICENSEE AND
THE PAYMENT OF THE REASONABLE FEE FOR SUCH LICENSE AS SPECIFIED 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.
3. 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.
4. THE DEPARTMENT MAY ONLY ISSUE A RENEWAL LICENSE UPON RECEIPT OF THE
SPECIFIED RENEWAL APPLICATION AND RENEWAL FEE FROM A LICENSEE IF, IN
ADDITION TO THE SELECTION CRITERIA SET OUT IN THIS ARTICLE, THE
LICENSEE'S LICENSE IS NOT UNDER SUSPENSION AND HAS NOT BEEN REVOKED.
§ 3398-I. 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;
S. 6968 11
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.
§ 3398-J. TRANSFERABILITY; AMENDMENT TO LICENSE; CHANGE IN OWNERSHIP
OR CONTROL. 1. LICENSES ISSUED UNDER THIS ARTICLE ARE NOT TRANSFERABLE,
ABSENT WRITTEN CONSENT OF THE COMMISSIONER.
2. UPON APPLICATION OF A LICENSEE, A LICENSE MAY BE AMENDED TO ADD OR
DELETE PERMITTED ACTIVITIES.
3. A LICENSE SHALL BECOME VOID BY A CHANGE IN OWNERSHIP, SUBSTANTIAL
CORPORATE CHANGE OR CHANGE OF LOCATION WITHOUT PRIOR WRITTEN APPROVAL OF
THE COMMISSIONER. THE COMMISSIONER MAY MAKE REGULATIONS ALLOWING FOR
CERTAIN TYPES OF CHANGES IN OWNERSHIP WITHOUT THE NEED FOR PRIOR WRITTEN
APPROVAL.
§ 3398-K. GRANTING, SUSPENDING OR REVOKING LICENSES. AFTER DUE NOTICE
AND AN OPPORTUNITY TO BE HEARD, 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, AND MAY SUSPEND OR REVOKE A
LICENSE ALREADY GRANTED AFTER DUE NOTICE AND AN OPPORTUNITY TO BE HEARD,
AS ESTABLISHED BY RULES AND REGULATIONS, 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 FACILI-
TIES, EQUIPMENT, PROCESS CONTROLS, OR SECURITY TO PROCESS, DISTRIBUTE,
TRANSPORT OR SELL CANNABINOID HEMP, HEMP EXTRACT OR PRODUCTS DERIVED
THEREFROM;
3. AFTER APPROPRIATE NOTICE AND OPPORTUNITY, THE APPLICANT OR LICENSEE
HAS FAILED OR REFUSED TO PRODUCE ANY RECORDS OR PROVIDE ANY INFORMATION
REQUIRED BY THIS ARTICLE OR THE REGULATIONS PROMULGATED PURSUANT THERE-
TO;
4. THE LICENSEE HAS CONDUCTED ACTIVITIES OUTSIDE OF THOSE ACTIVITIES
PERMITTED ON ITS LICENSE; OR
5. THE APPLICANT OR LICENSEE, OR ANY OFFICER, DIRECTOR, PARTNER, OR
ANY OTHER PERSON EXERCISING ANY POSITION OF MANAGEMENT OR CONTROL THERE-
OF OR OF THE LICENSED ACTIVITY HAS WILLFULLY FAILED TO COMPLY WITH ANY
OF THE PROVISIONS OF THIS ARTICLE OR REGULATIONS UNDER IT AND OTHER LAWS
OF THIS STATE APPLICABLE TO THE LICENSED ACTIVITY.
§ 3398-L. RECORD KEEPING AND TRACKING. EVERY LICENSEE SHALL KEEP, IN
SUCH FORM AS THE COMMISSIONER MAY DIRECT, SUCH RELEVANT RECORDS AS MAY
BE REQUIRED PURSUANT TO REGULATIONS UNDER THIS ARTICLE.
§ 3398-M. PACKAGING AND LABELING OF CANNABINOID HEMP AND HEMP EXTRACT.
1. CANNABINOID HEMP PROCESSORS SHALL BE REQUIRED TO PROVIDE APPROPRIATE
LABEL WARNING TO CONSUMERS, AND RESTRICTED FROM MAKING UNAPPROVED LABEL
CLAIMS, AS DETERMINED BY THE DEPARTMENT, CONCERNING THE POTENTIAL IMPACT
ON OR BENEFIT TO HUMAN HEALTH RESULTING FROM THE USE OF CANNABINOID
HEMP, HEMP EXTRACT AND PRODUCTS DERIVED THEREFROM FOR HUMAN CONSUMPTION,
WHICH LABELS SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD, PURSUANT TO
RULES AND REGULATIONS THAT THE DEPARTMENT MAY ADOPT.
2. THE DEPARTMENT MAY, BY RULES AND REGULATIONS, REQUIRE PROCESSORS TO
ESTABLISH A CODE, INCLUDING, BUT NOT LIMITED TO QR CODE, FOR LABELS AND
ESTABLISH METHODS AND PROCEDURES FOR DETERMINING, AMONG OTHER THINGS,
SERVING SIZES OR DOSAGES FOR CANNABINOID HEMP, HEMP EXTRACT AND PRODUCTS
S. 6968 12
DERIVED THEREFROM, ACTIVE CANNABINOID CONCENTRATION PER SERVING SIZE,
NUMBER OF SERVINGS PER CONTAINER, AND THE GROWING REGION, STATE OR COUN-
TRY OF ORIGIN IF NOT FROM THE UNITED STATES. SUCH RULES AND REGULATIONS
MAY REQUIRE AN APPROPRIATE FACT PANEL THAT INCORPORATES DATA REGARDING
SERVING SIZES AND POTENCY THEREOF.
3. THE PACKAGING, SALE, OR POSSESSION OF PRODUCTS DERIVED FROM CANNA-
BINOID HEMP OR HEMP EXTRACT USED FOR HUMAN CONSUMPTION NOT LABELED OR
OFFERED IN CONFORMITY WITH REGULATIONS UNDER THIS SECTION SHALL BE
GROUNDS FOR THE SEIZURE OR QUARANTINE OF THE PRODUCT, THE IMPOSITION OF
A CIVIL PENALTY AGAINST A PROCESSOR OR RETAILER, AND THE SUSPENSION,
REVOCATION OR CANCELLATION OF A LICENSE, IN ACCORDANCE WITH THIS ARTI-
CLE.
§ 3398-N. PROCESSING OF CANNABINOID HEMP AND HEMP EXTRACT. 1. NO
PROCESSOR SHALL SELL OR AGREE TO SELL OR DELIVER IN THE STATE ANY CANNA-
BINOID HEMP, HEMP EXTRACT OR PRODUCT DERIVED THEREFROM, USED FOR HUMAN
CONSUMPTION, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN
ACCORDANCE WITH SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE COMMIS-
SIONER. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE
REQUIRED BY THE RULES OF THE DEPARTMENT.
2. PROCESSORS SHALL TAKE SUCH STEPS NECESSARY TO ENSURE THAT THE
CANNABINOID HEMP OR HEMP EXTRACT USED IN THEIR PROCESSING OPERATION HAS
ONLY BEEN GROWN WITH PESTICIDES THAT ARE REGISTERED BY THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION OR THAT SPECIFICALLY MEET THE UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY REGISTRATION EXEMPTION CRITERIA FOR
MINIMUM RISK, USED IN COMPLIANCE WITH RULES, REGULATIONS, STANDARDS AND
GUIDELINES ISSUED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR
PESTICIDES.
3. ALL CANNABINOID HEMP, HEMP EXTRACT AND PRODUCTS DERIVED THEREFROM
USED FOR HUMAN CONSUMPTION SHALL BE EXTRACTED AND PROCESSED IN ACCORD-
ANCE WITH GOOD MANUFACTURING PROCESSES PURSUANT TO PART 117 OR PART 111
OF TITLE 21 OF THE CODE OF FEDERAL REGULATIONS, AS MAY BE DEFINED, MODI-
FIED AND DECIDED UPON BY THE COMMISSIONER IN RULES OR REGULATIONS.
4. AS NECESSARY TO PROTECT HUMAN HEALTH, THE DEPARTMENT SHALL HAVE THE
AUTHORITY TO: (A) REGULATE AND PROHIBIT SPECIFIC INGREDIENTS, EXCIPIENTS
OR METHODS USED IN PROCESSING CANNABINOID HEMP, HEMP EXTRACT AND
PRODUCTS DERIVED THEREFROM; AND (B) PROHIBIT, OR EXPRESSLY ALLOW,
CERTAIN PRODUCTS OR PRODUCT CLASSES DERIVED FROM CANNABINOID HEMP OR
HEMP EXTRACT, TO BE PROCESSED.
§ 3398-O. LABORATORY TESTING. EVERY CANNABINOID HEMP PROCESSOR SHALL
CONTRACT WITH AN INDEPENDENT COMMERCIAL LABORATORY TO TEST THE HEMP
EXTRACT AND PRODUCTS PRODUCED BY THE LICENSED PROCESSOR. THE COMMISSION-
ER SHALL ESTABLISH THE NECESSARY QUALIFICATIONS OR CERTIFICATIONS
REQUIRED FOR SUCH LABORATORIES USED BY LICENSEES. THE COMMISSIONER IS
AUTHORIZED TO ISSUE RULES AND REGULATIONS CONSISTENT WITH THIS ARTICLE
ESTABLISHING THE TESTING REQUIRED, THE REPORTING OF TESTING RESULTS AND
THE FORM FOR REPORTING SUCH LABORATORY TESTING RESULTS. THE DEPARTMENT
HAS AUTHORITY TO REQUIRE LICENSEES TO SUBMIT ANY CANNABINOID HEMP, HEMP
EXTRACT OR PRODUCT DERIVED THEREFROM, PROCESSED OR OFFERED FOR SALE
WITHIN THE STATE, FOR TESTING BY THE DEPARTMENT. THIS SECTION SHALL NOT
OBLIGATE THE DEPARTMENT, IN ANY WAY, TO PERFORM ANY TESTING ON HEMP,
CANNABINOID HEMP, HEMP EXTRACT OR PRODUCT DERIVED THEREFROM.
§ 3398-P. NEW YORK HEMP PRODUCT. THE COMMISSIONER MAY ESTABLISH AND
ADOPT OFFICIAL GRADES AND STANDARDS FOR CANNABINOID HEMP, HEMP EXTRACT
AND PRODUCTS DERIVED THEREFROM, 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 STANDARDS.
S. 6968 13
§ 3398-Q. PENALTIES. NOTWITHSTANDING THE PROVISION OF ANY LAW TO THE
CONTRARY, THE FAILURE TO COMPLY WITH A REQUIREMENT OF THIS ARTICLE, OR A
REGULATION THEREUNDER, MAY BE PUNISHABLE BY A CIVIL PENALTY OF NOT MORE
THAN ONE THOUSAND DOLLARS FOR A FIRST VIOLATION; NOT MORE THAN FIVE
THOUSAND DOLLARS FOR A SECOND VIOLATION WITHIN THREE YEARS; AND NOT MORE
THAN TEN THOUSAND DOLLARS FOR A THIRD VIOLATION AND EACH SUBSEQUENT
VIOLATION THEREAFTER, WITHIN THREE YEARS.
§ 3398-R. HEMP WORKGROUP. THE COMMISSIONER, IN CONSULTATION WITH THE
COMMISSIONER OF THE DEPARTMENT OF AGRICULTURE AND MARKETS, MAY APPOINT A
NEW YORK STATE HEMP AND HEMP EXTRACT WORKGROUP, COMPOSED OF GROWERS,
RESEARCHERS, PRODUCERS, PROCESSORS, MANUFACTURERS AND TRADE ASSOCI-
ATIONS, TO MAKE RECOMMENDATIONS FOR THE INDUSTRIAL HEMP AND CANNABINOID
HEMP PROGRAMS, STATE AND FEDERAL POLICIES AND POLICY INITIATIVES, AND
OPPORTUNITIES FOR THE PROMOTION AND MARKETING OF CANNABINOID HEMP AND
HEMP EXTRACT AS CONSISTENT WITH FEDERAL AND STATE LAWS, RULES AND REGU-
LATIONS.
§ 3398-S. PROHIBITIONS. 1. EXCEPT AS AUTHORIZED BY THE UNITED STATES
FOOD AND DRUG ADMINISTRATION, THE PROCESSING OF CANNABINOID HEMP OR HEMP
EXTRACT USED FOR HUMAN CONSUMPTION IS PROHIBITED WITHIN THE STATE UNLESS
THE PROCESSOR IS LICENSED UNDER THIS ARTICLE.
2. CANNABINOID HEMP AND HEMP EXTRACTS USED FOR HUMAN CONSUMPTION AND
GROWN OR PROCESSED OUTSIDE THE STATE SHALL NOT BE DISTRIBUTED OR SOLD AT
RETAIL WITHIN THE STATE, UNLESS THEY MEET ALL STANDARDS ESTABLISHED FOR
CANNABINOID HEMP UNDER STATE LAW AND REGULATIONS.
3. THE RETAIL SALE OF CANNABINOID HEMP IS PROHIBITED IN THIS STATE
UNLESS THE RETAILER IS LICENSED UNDER THIS ARTICLE.
§ 3398-T. SPECIAL USE PERMITS. THE COMMISSIONER SHALL HAVE THE AUTHOR-
ITY TO ISSUE TEMPORARY PERMITS FOR CARRYING ON ANY ACTIVITY RELATED TO
CANNABINOID HEMP, HEMP EXTRACT AND PRODUCTS DERIVED THEREFROM, LICENSED
UNDER THIS ARTICLE. THE COMMISSIONER MAY SET REASONABLE FEES FOR SUCH
PERMITS, TO ESTABLISH THE PERIODS DURING WHICH SUCH PERMITS ARE VALID,
AND TO MAKE RULES AND REGULATIONS TO IMPLEMENT THIS SECTION.
§ 3398-U. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLI-
CATION THEREOF TO ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, SUCH
INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THIS
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 SEVERABLE.
§ 3. 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
include] THE TERM "MARIHUANA" SHALL NOT INCLUDE:
(A) 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[.];
(B) HEMP, AS DEFINED IN SUBDIVISION ONE OF SECTION FIVE HUNDRED FIVE
OF THE AGRICULTURE AND MARKETS LAW;
(C) CANNABINOID HEMP AS DEFINED IN SUBDIVISION TWO OF SECTION THIRTY-
THREE HUNDRED NINETY-EIGHT OF THIS CHAPTER; OR
S. 6968 14
(D) HEMP EXTRACT AS DEFINED IN SUBDIVISION FIVE OF SECTION THIRTY-
THREE HUNDRED NINETY-EIGHT OF THIS CHAPTER.
§ 4. This act shall take effect on the same date and in the same
manner as 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, takes effect; provided, however, that section two of this act
shall take effect May 1, 2020; and provided further, however, that
sections 3398-b, 3398-c and 3398-s of article 33-B of the public health
law as added by section two of this act shall take effect January 1,
2021.
