Relating to hemp, including the regulation of hemp, providing for enforcement and the confiscation and destruction or disposal of certain property, providing for fees, making appropriations, including penalties, and providing implementation and effective date provisions

L. 115-334 (2018 Farm Bill). The 2018 Farm Bill defines hemp as a species of Cannabis having a maximum concentration of delta-9 tetrahydrocannabinol (THC) that does not exceed three-tenths of percent. The 2018 Farm Bill authorizes states to assume primary regulatory authority over the production of hemp by submitting a state plan (plan) for approval by the United States department of agriculture (USDA) which has days to approve, disapprove, or amend the plan. The 2018 Farm Bill provides that state regulations may be more but not less stringent than the federal regulations. The provisions of the bill are also enforced by the department of public safety (DPS) which is designated as the chief criminal enforcement agency and local law enforcement agencies (local law enforcement). HEMP LICENSES AND FEES. DALS is required to accept and approve or disapprove applications for the issuance of a hemp license (license) on a one-year basis subject to renewal. A license covers a crop site which cannot exceed contiguous acres. DALS may issue any number of licenses to a single applicant. However, a person is prohibited from holding more than crop sites under all current licenses issued to the person. DALS must assess and collect hemp fees (fees) for the issuance of a license and for an annual fall inspection until June 30, 2022. After that date, fees are to be established by rule based on the amount required to administer and enforce the provisions of the bill. Moneys collected from the fees are to be deposited into a hemp fund (fund) which are appropriated to DALS for purposes of administering and enforcing these provisions. REGULATIONS. DALS is required to adopt rules regulating the production of hemp, and may adopt rules as necessary or desirable to administer and enforce the Code chapter. The bill allows a person to engage in the retail sale of hemp products produced in another state; the addition of a hemp derivative to cosmetics, personal care products, and products intended for human or animal consumption; and the transport of hemp product through this state. The bill provides that under certain conditions, a person is not subject to a criminal offense for producing, possessing, using, harvesting, manufacturing, marketing, transporting, delivering, or distributing hemp produced on a licensee’s crop site. The bill requires that a person hold a certificate of crop inspection issued by DALS. INSPECTIONS AND TESTS. DALS is required to conduct an annual inspection of a licensee’s crop site and obtain a sample of plants that are part of the crop in order to conduct an official test. DPS or local law enforcement may also conduct an inspection of the crop site and conduct its own test. The bill provides that DALS, DPS, and local law enforcement may enter on a crop site and other associated places in order to conduct an inspection. ENFORCEMENT AND PENALTIES. DALS may suspend or revoke a hemp license for a number of causes, including for a violation of statute or rule. DALS may order the disposal of a crop produced on a licensee’s crop site if official test results indicate that a crop does not qualify as hemp. The disposal, including the crop’s destruction, must be at the licensee’s expense. A person who violates a provision of the bill is subject to a civil penalty of not less than $500 and not more than $2,500. DALS or the attorney general may apply to district court to obtain an injunction to enforce the bill’s provisions. DALS may establish a program to correct certain violations committed negligently by a licensee including producing a crop having a maximum THC concentration that does not exceed percent. CONTINGENT IMPLEMENTATION AND EFFECTIVE DATE. Generally, the bill’s provisions enacting Code chapter 204 are to be implemented when DALS certifies USDA has approved DALS’ state plan. The bill takes effect July 1, 2019, except for those provisions, including criminal offenses, which make enactment contingent upon implementation of Code chapter 204.