CLIENT ALERT: S.6184/A.7680 Establishes a State Permitting Process for Growers, Processors and Sellers of Hemp Extract - Requires Laboratory Testing of Hemp Extract Products, Including CBD, and Product Labeling

By Elizabeth Kase

Governor Andrew M. Cuomo today signed legislation (S.6184/A.7680) establishing a regulatory framework for the production and sale of hemp and hemp extract in New York State. The measure requires the hemp industry to test and label their products, protecting consumers from potential harm. 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.

"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 said. "By establishing a regulatory framework for producing and selling hemp and hemp extract we can set the industry on a path to continued growth in a smart, safe way that empowers both farmers and consumers."

New York State's hemp program, including the hemp extract market, which sells popular products like CBD, has recently experienced significant growth. Economists predict sales will reach $16 billion by 2025.

As always, Abrams Fensterman is monitoring the latest developments in cannabis law and we stand ready to assist clients in this burgeoning business space. Please contact Elizabeth S. Kase, Esq., Partner/ Chair of the Criminal Law Practice Group and Co-Chair of the Medical Marijuana/Cannabis Law Group at 516.328.2300 or with any questions.