New York just gave another big boost to the burgeoning hemp industry

Jeff Platsky | New York State Team

Show Caption Hide Caption Watch: Take a walk through a blooming hemp field in New York More than 200 people attended Cornell University's Hemp Filed Day at the Agricultural Experimental Station in Geneva, NY on Aug. 13, 2019. Cornell researchers reviewed the results of test crops.

New York will be among the first states to establish a grading program for cannabis-derived extracts assuring consumers some degree of quality control.

Gov. Andrew Cuomo signed legislation Monday authorizing the Department of Agriculture and Markets to adopt standards for cannabidiol, or CBD, which is gaining wide acceptance among the public for offering relief from a variety of ailments.

As it gains in popularity, however, product quality still remains questionable in terms of potency and uncertain science about the long-term impacts of the drug.

So by establishing "official grades," the effect of the legislation will be to distinguish New York-produced CBD products from generic forms not subjected to state control, supporters said.

"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," Cuomo said in a statement.

"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."

This past growing season more than 400 farms across New York were licensed to grow industrial hemp, the non-psychoactive form of the cannabis plant removed from the list of controlled substances through the passage of the federal Farm Bill last year.

An additional 100 processors are licensed in New York to turn the leaves and buds into an oil that are used in tinctures, salves and other products now commonly sold on store shelves for their potential healing or pain relief benefits.

"Given the enormous consumer interest in hemp extracts like CBD, we need to develop labeling standards the public can rely on," Assemblywoman Donna Lupardo, D-Endwell, chairwoman of the Assembly Agriculture Committee and the bill's sponsor, said in a statement.

More: Why hemp growth, CBD regulation may soon take root in New York

What the law will do?

Cuomo doesn't commit to signing NY hemp bill Gov. Andrew Cuomo and Alphonso David, counsel, discuss a bill lawmakers approved that would regulate the hemp-extract industry in New York; June 21, 2019.

The law requires the hemp industry to test and label their products.

The bill was passed in June by the state Legislature after it failed to legalize recreational marijuana as part of a sweeping package that would have also addressed hemp growth and oversight.

Instead, Lupardo successfully pushed to have the hemp piece approved in a separate bill.

Cuomo's administration initially was uncertain whether it would pass the measure, saying it would need to be reviewed.

More: A factory made this small town ‘Canada’s Cannabis Capital.’ Could Binghamton do the same?

So he signed the bill with a so-called chapter amendment. The law will need to be clarified so the Department of Agriculture and Markets will have supervision over hemp growers and the Department of Health will have oversight over the hemp extract.

The law will also require all sellers to register with the state before they can sell hemp extract products.

Cuomo said the state will host a hemp summit in January to further develop policies related to the burgeoning industry.

The bill's signing comes just days after the hemp industry received another boost. Federal regulators said banks could offer loans to the hemp growers after confirming the legitimate legal status of low-THC cannabis.

More: Why a new federal decision will aid New York's booming hemp industry

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