Assembly Bill A7680A signed by Governor Cuomo last month requires all hemp growers, manufacturers, and extractors, and sellers to obtain a license through the New York Department of Agriculture and Markets.
The hemp industry in New York is exploding and with that growth comes a responsibility to regulate the industry in a way that helps ensure its long-term viability and protects consumers.Governor Cuomo statement
Assembly Bill A7680A License Requirements
The bill requires a license for any cannabinoid products intended for “human or animal consumption or use”. The cannabinoid extractor license permits the licensee to acquire, possess, manufacture and extract hemp for products intended for human and animal use.
Licenses will be renewed every 2 years and licensed premises are subject to random inspection by the department.
Manufacturers and growers will also be required to contract with an independent laboratory approved by the commissioner for routine testing, and all testing reports will need to be made available to the department.
Applicants for a license will be required to submit evidence of “good character,” experience, competency, and fingerprints of each researcher, principal or officer if requested by the department.
The commissioner may authorize the growing or cultivating of industrial 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 certified by, and registered with, the department.Assemble Bill A7680A
Assembly Bill A7680A requires a permit for retailers, wholesalers, and manufacturers selling “cannabis products derived from hemp extracts” and sellers of these products will be required to apply for a cannabinoid permit.
Section 507 of the agriculture and markets law is REPEALED and a new section 507 is added to read as follows: § 507.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 industrial hemp in the state unless (a) licensed biennially by the commissioner or (b) authorized by the commissioner as part of an agricultural research pilot program established under this article.Section 507 of the agriculture and markets law
The bill permits the sale of beverages containing no more than 20 milligrams of CBD per 12 ounces!
The legislation permits the sale of beverages containing no more than 20 milligrams of CBD per 12 ounces, but only if the hemp extract was grown, extracted and manufactured in the state of New York.
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 department 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.
It prohibits the sale of out-of-state hemp extract intended for human and animal consumption unless the product meets New York standards and regulations.
Assembly Bill A7680A amends the Agriculture & Markets Law to establish guidelines for the packaging and labeling of hemp extract products. All hemp extracts will have to be labeled in accordance with department guidelines and will need to include a supplement fact panel where applicable.
Such regulations shall include, but not be limited to, requiring labels warning consumers of any potential impact on human health resulting 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.
Labels must display a QR Code to show the applicable serving size, concentration, and growing region of each product.
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 regulations shall also require a supplement fact panel that incorporates data regarding serving sizes and potency thereof.
This is consistent with guidance and warnings from the FDA and states like Florida that hemp extract labels cannot claim that hemp extracts like CBD treats, prevent or cure any disease.
The new law also regulates beauty products, clothing and other items made from hemp.
Assembly Bill A7680A Sources:
- https://www.harrisbeach.com/wp-content/uploads/2019/08/New-Legislations-to-Regulate-Hemp-Extracts-and-CBD.pdf (PDF)