NY Legislature Passes Landmark CBD Hemp Bill; Awaits Governor's Signature

July 1, 2019

BINGHAMTON, N.Y., June 28, 2019 /PRNewswire/ -- In the final hours of the 2019 New York State legislative session, Assemblywoman Donna Lupardo and Senator Jen Metzger passed landmark legislation, creating a regulatory framework for the hemp extract industry. In recent years, the use of cannabidiol, also known as CBD, grew dramatically with a proliferation of products containing hemp extracts. Products rushed into NY with little oversight, raising health and safety concerns by various state agencies. The proliferation of potentially hazardous and untested products in the NY market created an imperative for this legislation. In passing the Bill (Senate 62-0, Assembly 131-4), NYS took a historic step that meets the goals of encouraging economic growth and innovation while also protecting consumers.

Building on Governor Andrew Cuomo's vision from 2015, the legislation provides a necessary next step in the development of the hemp industry. Through creating standards of production and transparency, the legislation meets the important goal of creating a bond of trust with consumers. Transparency in the supply chain serves multiple interests—farmers, consumers and government. This legislation contributes to Governor Cuomo's hemp initiative, making NYS a leader in the country by encouraging innovation and safe practices across the  industry. 

The New York Cannabis Growers and Processors Association (NY-CGPA), a first-of-its-kind association in NYS, advocated heavily for the legislation with a focus on creating a transparent supply chain for CBD products. NY-CGPA worked closely with legislators in crafting fair and equitable legislation from seed to sale. "NYS envisioned a framework that connects farmers, processors and consumers through a transparent structure," said Allan Gandelman, President of NY-CGPA. "The legislation promotes higher standards of production, requiring testing and labeling of products that will allow consumers to understand a CBD product's origin and contents. Farmers will benefit from a stable market with known requirements rather than substandard regulations that allow potentially dangerous imports."

The legislation will give farmers more confidence in making investments into their operations. The bill establishes grower, manufacturer, and extractor licenses and requires the Department of Agriculture and Markets to craft new regulations for the production of extracts. Additionally, the legislation requires laboratory testing and labeling with QR codes that link to consumer information. Also, NY will now allow for CBD beverage products that are accurately labeled and produced to consumer safety standards.

In 2014, Assemblywoman Lupardo passed legislation legalizing the growing of hemp in NYS--four years ahead of legalization of the crop at the federal level. This foresight has made Lupardo recognized nationally as a leader in hemp policy. While the federal government continues to clarify its rules around hemp extracts, this legislation will help the rapid growth of NY's industry while protecting producers and consumers.

The NY Cannabis Growers and Processors Association, Inc. is an industry association, representing farmers, processors and other businesses in cannabis. We emphasize the importance of environmental sustainability,consumer conscious practices, and community building in all we do.


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