LCO No. 2826 1 of 25 General Assembly Raised Bill No. 452 February Session, 2020 LCO No. 2826 Referred to Committee on ENVIRONMENT Introduced by: (ENV) AN ACT CONCERNING RE VISIONS TO THE STATE'S HEMP PROGRAM. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 22-61l of the 2020 supplement to the general statutes 1 is repealed and the following is substituted in lieu thereof (Effective from 2 passage): 3 (a) For the purpose of this section and section 22-61m, as amended by 4 this act, the following terms have the same meaning as provided in 7 5 CFR 990.1, as amended from time to time: "Acceptable hemp THC level", 6 "Agricultural marketing service", "Cannabis", "Conviction", "Corrective 7 action plan", "Culpable mental state greater than negligence", 8 "Decarboxylated", "Decarboxylation", "Dry weight basis", "Gas 9 chromatography", "Geospatial location", "Handle", "High-performance 10 liquid chromatography", "Information sharing system", "Measurement 11 of uncertainty", "Negligence", "Phytocannabinoid", 12 "Postdecarboxylation" and "Reverse distributor". Additionally, for the 13 purpose of such sections: 14 (1) "Cannabidiol" or "CBD" means [the nonpsychotropic compound 15 Raised Bill No. 452 LCO No. 2826 2 of 25 by the same name] cannabinoid extract and with a [delta-9 16 tetrahydrocannabinol] THC concentration of not more than 0.3 per cent 17 on a dry weight basis derived from hemp; [, as defined in the federal 18 act;] 19 (2) "Certificate of analysis" means a certificate from a laboratory 20 describing the results of the laboratory's testing of a sample; 21 [(3) "Certified seed" means hemp seed for which a certificate or any 22 other instrument has been issued by an agency authorized under the 23 laws of a state, territory or possession of the United States to officially 24 certify hemp seed and that has standards and procedures approved by 25 the United States Secretary of Agriculture to assure the genetic purity 26 and identity of the hemp seed certified;] 27 [(4)] (3) "Commissioner" means the Commissioner of Agriculture, or 28 the commissioner's designated agent; 29 [(5) "Consumable" means hemp products intended for human 30 ingestion, inhalation, absorption or other internal consumption, that 31 contains a THC concentration of not more than 0.3 per cent on a dry 32 weight basis;] 33 [(6)] (4) "Cultivate" means [planting, growing and harvesting a plant 34 or] to plant, grow, harvest, handle and store a plant or crop; [for 35 commercial or research purposes;] 36 [(7)] (5) "Federal act" means the United States Agricultural Marketing 37 Act of 1946, 7 USC [1621] 1639o et seq., as amended from time to time; 38 [(8)] (6) "Department" means the Department of Agriculture; 39 [(9) "Grower" means a person in the state licensed by the 40 commissioner to cultivate, grow, harvest, handle, store and market 41 hemp pursuant to the federal act, the provisions of this section and the 42 regulations adopted pursuant to this section;] 43 [(10) "Handle" means possessing or storing hemp for any period of 44 Raised Bill No. 452 LCO No. 2826 3 of 25 time on premises owned, operated or controlled by a person licensed to 45 cultivate or process hemp, and includes possessing or transporting 46 hemp;] 47 [(11)] (7) "Hemp" has the same meaning as provided in the federal 48 act; 49 [(12)] (8) "Hemp products" means [products with a delta-9 50 tetrahydrocannabinol concentration of not more than 0.3 per cent on a 51 dry weight basis derived from, or made by, the processing of hemp 52 plants or hemp plant parts] all manufacturer hemp products and 53 producer hemp products; 54 [(13)] (9) "Independent testing laboratory" means a facility: 55 (A) For which no person who has any direct or indirect financial or 56 managerial interest in the laboratory and also has any direct or indirect 57 interest in a facility that: 58 (i) [Processes, cultivates] Produces, distributes, manufactures or sells 59 hemp or hemp products, or marijuana in any state or territory of the 60 United States; or 61 (ii) Cultivates, processes, distributes, dispenses or sells marijuana; 62 and 63 (B) That is accredited as a laboratory in compliance with section 21a-64 408-59 of the regulations of Connecticut state agencies; 65 [(14)] (10) "Laboratory" means a laboratory [located in the state that 66 is licensed by the Department of Consumer Protection to provide 67 analysis of controlled substances pursuant to section 21a-246, The 68 University of Connecticut, the Connecticut Agricultural Experiment 69 Station, the Department of Public Health, the United States Food and 70 Drug Administration, the United States Department of Agriculture or a 71 facility] that meets the [following additional criteria] requirements of 7 72 CFR 990.3 and that is accredited as a testing laboratory to International 73 Organization for Standardization (ISO) 17025 by a third-party 74 Raised Bill No. 452 LCO No. 2826 4 of 25 accrediting body such as the American Association for Laboratory 75 Accreditation or the Assured Calibration and Laboratory Accreditation 76 Select Services; 77 [(15)] (11) "Law enforcement agency" means the Connecticut State 78 Police, the United States Drug Enforcement Administration, the 79 Department of Agriculture, the Department of Consumer Protection 80 Drug Control Division or any other federal, state or local law 81 enforcement agency or drug suppression unit; 82 [(16)] (12) "Licensee" means a person who possesses a license to 83 [cultivate, process] produce or manufacture hemp or hemp products in 84 this state; 85 [(17)] (13) "Manufacture" means the conversion of [hemp for the 86 purpose of creating a consumable] the hemp plant into a by-product by 87 means of adding heat, solvents or any method of extraction that 88 modifies the original composition of the plant for the purpose of 89 creating a manufacturer hemp product for commercial or research 90 purposes; 91 [(18)] (14) "Manufacturer" means a person in the state licensed by the 92 Commissioner of Consumer Protection to manufacture, handle, store 93 and market manufacturer hemp products pursuant to the [federal act, 94 the] provisions of section 22-61m, as amended by this act, and any 95 regulation adopted pursuant to section 22-61m, as amended by this act; 96 [(19)] (15) "Marijuana" has the same meaning as provided in section 97 21a-240, as amended by this act; 98 [(20)] (16) "Market" or "marketing" means promoting, distributing or 99 selling a hemp product within the state, in another state or outside of 100 the United States and includes efforts to advertise and gather 101 information about the needs or preferences of potential consumers or 102 suppliers; 103 [(21)] (17) "On-site manager" means the individual designated by the 104 Raised Bill No. 452 LCO No. 2826 5 of 25 [licensee] producer license applicant or producer responsible for on-site 105 management and operations of a licensed [grower or licensed processor] 106 producer; 107 [(22)] (18) "Pesticide" has the same meaning as "pesticide chemical" as 108 provided in section 21a-92; 109 [(23) "Plot"] (19) "Lot" means a contiguous area in a field, greenhouse 110 or indoor growing structure containing the same variety or strain of 111 hemp throughout the area; 112 [(24)] (20) "Post-harvest sample" means a representative sample of the 113 form of hemp taken from the harvested hemp from a particular [plot's] 114 lot's harvest that is collected in accordance with the procedures 115 established by the commissioner; 116 [(25)] (21) "Pre-harvest sample" means a composite, representative 117 portion from plants in a hemp [plot] lot, that is collected in accordance 118 with the procedures established by the commissioner; 119 [(26) "Process"] (22) "Produce" means [using or converting hemp for 120 the purpose of creating a form of the commodity, that is not a 121 consumable, for commercial or research purposes] to cultivate hemp or 122 create any producer hemp product; 123 [(27) "Processor" means a person in the state licensed by the 124 commissioner to process, handle, store and market hemp pursuant to 125 the federal act, the provisions of this section and any regulation adopted 126 pursuant to this section;] 127 [(28)] (23) "State plan" means a state plan, as described in the federal 128 act and as authorized pursuant to this section; 129 [(29) "Signing authority" means an officer or agent of the applicant 130 with written authorization of such applicant to commit the applicant to 131 a binding agreement;] 132 [(30)] (24) "THC" means delta-9-tetrahydrocannabinol; 133 Raised Bill No. 452 LCO No. 2826 6 of 25 [(31)] (25) "Homogenize" means to blend hemp into a mixture that 134 has a uniform quality and content throughout such mixture; [and] 135 [(32) "Business entity" means any corporation, limited liability 136 company, association or partnership.] 137 (26) "Controlled Substances Act" or "CSA" means the Controlled 138 Substances Act as codified in 21 USC 801 et seq.; 139 (27) "Criminal history report" means the Federal Bureau of 140 Investigation's Identity History Summary; 141 (28) "Drug Enforcement Administration" or "DEA" means the United 142 States Drug Enforcement Administration; 143 (29) "Farm service agency" or "FSA" means an agency of the United 144 States Department of Agriculture; 145 (30) "Key participant" means a sole proprietor, a partner in 146 partnership or a person with executive managerial control in an entity, 147 including persons such as a chief executive officer, chief operating 148 officer and chief financial officer; 149 (31) "Manufacturer hemp product" means a commodity 150 manufactured from the hemp plant, for commercial or research 151 purposes, that is intended for human ingestion, inhalation, absorption 152 or other internal consumption, that contains a THC concentration of not 153 more than 0.3 per cent on a dry weight basis or per volume or weight of 154 such manufactured hemp product; 155 (32) "Producer" means an individual or entity licensed by the 156 commissioner to produce and market producer hemp products 157 pursuant to the federal act, the state plan, the provisions of this section 158 and the regulations adopted pursuant to this section; 159 (33) "Producer hemp product" means any of the following produced 160 in this state: Raw hemp product, fiber-based hemp product or animal 161 hemp food product, and each of which contains a THC concentration of 162 Raised Bill No. 452 LCO No. 2826 7 of 25 not more than 0.3 per cent on a dry weight basis; and 163 (34) "USDA" means the United States Department of Agriculture. 164 (b) The Commissioner of Agriculture shall establish and operate an 165 agricultural pilot program, as defined in 7 USC 5940, as amended from 166 time to time, for hemp research to enable the department, and its 167 licensees, to study methods of [cultivating, processing] producing and 168 marketing hemp. All [grower and processor] producer licensees 169 licensed pursuant to this section shall be participants in the state 170 agricultural pilot program for hemp research. Until such time as said 171 commissioner adopts regulations, in accordance with the provisions of 172 chapter 54, the Department of Agriculture shall utilize procedures and 173 guidance policies that the commissioner deems to be consistent with the 174 provisions of 7 USC 5940, as amended from time to time, provided such 175 procedures and guidance policies shall, at a minimum, require: (1) The 176 commissioner to certify and register any site used to grow hemp, (2) any 177 person who [grows] produces hemp to produce plants that meet the 178 definition of hemp and verify such, (3) the maintenance of records by 179 any person who grows hemp and the availability of inspection of such 180 records by the commissioner, and (4) verification of compliance with the 181 definition of hemp by a laboratory, at the expense of any licensee. The 182 provisions of this section shall take precedence over any such procedure 183 or guidance policy. Participants in the state agricultural pilot program 184 for hemp research shall be licensed in accordance with the provisions of 185 this section. Such pilot program shall operate until the earlier of the date 186 of a fully approved state plan under the federal act, as described in this 187 section, or the date of repeal of the federal law permitting the state's 188 agricultural pilot program for hemp research. 189 (c) (1) The commissioner shall prepare a state plan in accordance with 190 the federal act and 7 CFR 990.3, for approval by the Governor, [and 191 Attorney General,] in consultation with the office of the Chief State's 192 Attorney and the Attorney General. The state plan, once approved by 193 the Governor and the Attorney General, shall be submitted by the 194 commissioner to the United States Secretary of Agriculture for his or her 195 Raised Bill No. 452 LCO No. 2826 8 of 25 approval. The commissioner shall have the authority to amend the state 196 plan, in consultation with the Governor, [and] the Attorney General [in 197 consultation with] and the office of the Chief State's Attorney, as 198 necessary to comply with the federal act. 199 (2) The commissioner shall operate the state plan, which shall 200 include, at a minimum, the following requirements: 201 (A) The sampling of hemp shall comply, at a minimum, with 7 CFR 202 990.3(a)(2); 203 (B) The testing of hemp shall comply, at a minimum, with 7 CFR 204 990.3(a)(3); 205 (C) The control and disposal of noncompliant cannabis plants shall 206 comply with 7 CFR 990.27; 207 (D) The department shall comply with all recordkeeping and 208 reporting requirements in the federal act, and 7 CFR 990.1 to 7 CFR 209 990.71, inclusive; 210 (E) The department shall comply with enforcement procedures in 7 211 CFR 990.6; 212 (F) The department shall conduct annual inspections of, at a 213 minimum, a random sample of producers to verify that hemp is not 214 produced in violation of the federal act, the state plan and the provisions 215 of this section, and shall enforce any violation as provided for in the 216 federal act and as defined in 7 CFR 990.6; 217 (G) Producers shall report their required license, lot and hemp crop 218 acreage information to FSA, in accordance with the requirements in 7 219 CFR 990.7; and 220 (H) Producers shall report to the commissioner the total acreage of 221 hemp planted, harvested and, if applicable, disposed of, and such other 222 information as the commissioner may require. 223 Raised Bill No. 452 LCO No. 2826 9 of 25 (3) All sampling and testing of hemp shall be done using protocols 224 that are at least as statistically valid as the USDA's published protocols 225 for sampling and testing of hemp, which protocols shall be posted on 226 the department's Internet web site. During a scheduled sample 227 collection, the producer, or an authorized representative of the 228 producer, shall be present at the lot. A producer shall not harvest the 229 cannabis crop prior to the taking of samples. Samples of hemp plant 230 material from one lot shall not be commingled with hemp plant material 231 from other lots. Lots tested and not certified by a laboratory at or below 232 the acceptable hemp THC level shall be handled and disposed of in 233 accordance with the federal act, the provisions of this section and section 234 22-61m, as amended by this act, and the state plan, as applicable. 235 (4) The commissioner shall collect, maintain and provide to the 236 USDA, on a timely basis, contact information for each hemp producer 237 licensed in the state, including lot legal descriptions and locations, and 238 any changes to such information. The commissioner shall also report to 239 the USDA, on a timely basis, all required hemp test results and disposal 240 information for all nonconforming hemp plants and plant material. 241 Such information shall not include state and federal fingerprint-based 242 records pursuant to section 29-17a. 243 (d) The commissioner shall have the authority to enforce the federal 244 act, as amended from time to time, the state plan, this section and any 245 regulations adopted in accordance with the federal act and chapter 54 246 for hemp [cultivation] production in the state. The commissioner shall 247 have the authority to enforce the applicable [processing standard] 248 standards for producer hemp products. [that are not consumables.] The 249 commissioner may consult, collaborate and enter into cooperative 250 agreements with any federal or state agency, municipality or political 251 subdivision of the state concerning application of the provisions of the 252 federal act and the regulations adopted pursuant to the federal act, as 253 may be necessary to carry out the provisions of this section. 254 (e) Any person who [cultivates or processes] produces hemp shall: (1) 255 Be licensed by the commissioner; (2) [only acquire certified seeds] 256 Raised Bill No. 452 LCO No. 2826 10 of 25 comply with the federal act, the state plan, the provisions of this section 257 and any regulation adopted pursuant to this section; and (3) transport 258 hemp and hemp samples in a manner and with such documentation as 259 required by the commissioner. 260 (f) Any person who sells hemp products shall not be required to be 261 licensed provided such person only engages in: (1) The retail or 262 wholesale sale of hemp or hemp products in which no further 263 [processing] producing or manufacturing of the hemp products occurs 264 and the hemp products are acquired from a person authorized under 265 the laws of this state or another state, territory or possession of the 266 United States or another sovereign entity to produce and sell such hemp 267 products; (2) the acquisition of hemp or hemp products for the sole 268 purpose of product distribution for resale; or (3) the retail sale of hemp 269 products that are otherwise authorized under federal or state law. 270 (g) Any applicant for a license pursuant to this section shall meet each 271 of the following requirements, as applicable: 272 (1) Each applicant shall submit an application for a license that 273 consists, at a minimum, of the following: (A) The name, telephone 274 number, electronic mail address and address of the applicant, including 275 any applicable principal business location and the full name, title and 276 electronic mail address of each key participant; (B) the name and 277 address of the [plot] lot for the hemp cultivation or [processing] 278 producing location; (C) the geospatial location of each lot by means of 279 global positioning system coordinates and legal description of the [plot] 280 lot used for the hemp cultivation; (D) the acreage size of the [plot] lot 281 where the hemp will be cultivated; (E) written consent allowing the 282 commissioner to conduct both scheduled and random inspections of 283 and around the premises on which the hemp is to be cultivated, 284 harvested, stored and [processed] produced; and (F) any other 285 information as may be required by the commissioner; 286 (2) The applicant [, on-site manager and signing authority] and each 287 key participant for a [grower] producer license, or renewal thereof, shall 288 Raised Bill No. 452 LCO No. 2826 11 of 25 submit to state and national fingerprint-based criminal history records 289 checks conducted in accordance with section 29-17a, at his or her own 290 expense; [, and provide the results to the commissioner for review;] 291 (3) No person, including any key participant, who has been convicted 292 of any felony, as prescribed in the federal act, or who has materially 293 falsified any information in the application, shall be eligible to obtain or 294 hold a [grower] producer license; and 295 (4) Each applicant who obtains a [grower or processor] producer 296 license shall pay for all costs of sampling, testing, retesting and 297 resampling any [hemp] samples at a laboratory for the purpose of 298 determining the THC concentration level of any cannabis under their 299 control, or in their possession. Each applicant who obtains a producer 300 license shall pay for all costs of disposal of all cannabis under their 301 control, or in their possession, that exceeds the acceptable hemp THC 302 level. 303 (h) Any [grower or processor] producer license issued by the 304 commissioner shall expire on the second following December thirty-first 305 and may be renewed during the preceding month of October. Such 306 licenses shall not be transferable. 307 (i) The following fees shall apply for each [grower and processor] 308 producer license and inspection: 309 (1) A nonrefundable license application fee of fifty dollars, provided 310 any constituent unit of higher education, state agency or department 311 shall be exempt from such application fee if such [cultivation or 312 processing] production is for research purposes; 313 (2) A nonrefundable [biennial grower] triennial producer license fee 314 of four hundred fifty dollars [per acre of planned hemp plantings] for 315 up to one acre of planned hemp plantings and thirty dollars per each 316 additional acre of planned hemp plantings rounded to the nearest acre, 317 the maximum license fee charged shall be three thousand dollars, 318 provided any constituent unit of higher education, state agency or 319 Raised Bill No. 452 LCO No. 2826 12 of 25 department shall be exempt from such license fee if such cultivation is 320 for research purposes; and 321 [(3) A nonrefundable processor licensing fee of two hundred fifty 322 dollars for a license to process hemp provided any constituent unit of 323 higher education, state agency or department shall be exempt from such 324 license fee if such processing is for research purposes; and] 325 [(4)] (3) In the event that resampling by the commissioner is required 326 due to a test result that shows a violation of any provision of this section 327 or any regulation adopted pursuant to this section, the licensee shall pay 328 an inspection fee of fifty dollars. Such fee shall be paid prior to the 329 inspection and collection of the sample to be used for resampling. 330 (j) After receipt and review of an application for [grower or processor] 331 producer licensure, the commissioner may grant a [biennial] triennial 332 license upon a finding that the applicant meets the applicable 333 requirements. Each producer licensee shall notify the commissioner of 334 any changes to their application information, not later than fifteen days 335 after such change. While the pilot program is in effect, the commissioner 336 may grant a conditional approval of a [grower] producer license, 337 pending receipt of the criminal history records check required by this 338 section. The commissioner shall assign each producer with a license or 339 authorization identifier in a format consistent with 7 CFR 990.3(a)(9). 340 (k) Whenever an inspection or investigation conducted by the 341 commissioner pursuant to this title reveals any violation of the state 342 plan, this section or any regulation adopted thereunder, the [grower, 343 processor,] producer license applicant or respondent, as applicable, 344 shall be notified, in writing, of such violation and any corrective action 345 to be taken and the time period within which such corrective action shall 346 be taken. Any such [grower, processor,] producer license applicant or 347 respondent may request a hearing, conducted in accordance with 348 chapter 54, on any such notification. Any notification issued pursuant 349 to this section shall be made by certified mail, return receipt requested 350 to the producer license applicant or respondent's last known address, 351 Raised Bill No. 452 LCO No. 2826 13 of 25 by in-hand service by the commissioner or designated agent of the 352 commissioner, electronic mail service with the consent of the recipient, 353 or by service in accordance with chapter 896. The commissioner shall 354 report all producer violations made with a culpable mental state greater 355 than negligence to the United States Attorney General and the State's 356 Attorney for the judicial district in which the producer violation 357 occurred. 358 (l) Nothing in this section shall be construed to limit the 359 commissioner's authority to issue a cease and desist order pursuant to 360 section 22-4d, or an emergency order, in order to respond to a condition 361 that may present a public health hazard, or issue orders necessary to 362 effectuate the purposes of this section, including, but not limited to, 363 orders for the embargo, partial destruction, destruction and release of 364 hemp or hemp products. Any cease and desist order or an emergency 365 order shall become effective upon service of such order by the 366 commissioner. Following service of any such order, subsequent 367 proceedings shall proceed in accordance with the provisions of section 368 22-4d and the rules of practice for such agency. Any embargo, partial 369 destruction, destruction or release order issued pursuant to this section 370 shall be served by certified mail, return receipt requested to the 371 respondent's last known address, by in-hand service by the 372 commissioner or designated agent of the commissioner, or by service in 373 accordance with chapter 896. 374 (m) Following a hearing conducted in accordance with chapter 54, 375 the commissioner may impose an administrative civil penalty, not to 376 exceed two thousand five hundred dollars per violation, and suspend, 377 revoke or place conditions upon any grower or processor licensee who 378 violates the provisions of this section or any regulation adopted 379 pursuant to this section. 380 (n) (1) Any individual who [cultivates or processes] produces hemp 381 in this state without obtaining a license pursuant to this section, or who 382 [cultivates or processes] produces hemp in this state after having a 383 license suspended or revoked may be fined two hundred fifty dollars in 384 Raised Bill No. 452 LCO No. 2826 14 of 25 accordance with the provisions of section 51-164n. 385 (2) Any business entity that [cultivates or processes] produces hemp 386 in this state without obtaining a license pursuant to this section, or 387 [cultivates or processes] produces hemp in this state after having a 388 license suspended or revoked [shall] may be fined not more than two 389 thousand five hundred dollars per violation, after a hearing conducted 390 in accordance with chapter 54. 391 (o) (1) Any negligent violation [, as described in the federal act,] of 392 this section or the state plan except failure to obtain a producer license 393 under this section, shall be subject to enforcement in accordance with 394 the federal act, and the state plan for negligent violations. 395 (2) For any negligent violation, a producer shall be required to correct 396 such negligent violation, by means of a corrective action plan approved 397 by the commissioner. Each corrective action plan shall include, at a 398 minimum, a reasonable completion deadline for correction of the 399 negligent violation, periodic reporting to the commissioner and 400 compliance with the state plan. 401 (3) Any producer that negligently violates the state plan shall not, as 402 a result of such negligent violation, be referred by the commissioner for 403 any criminal enforcement action by the federal, state or local 404 government. 405 (4) Any producer that negligently violates the state plan three times 406 during any five-year period shall be ineligible to produce hemp for a 407 period of five years beginning on the date of the third violation. 408 (5) The commissioner shall conduct an inspection to determine if the 409 corrective action plan for a producer who commits any such negligent 410 violation was implemented. 411 (p) Any person aggrieved by an order issued pursuant to this section 412 may appeal to the commissioner in accordance with the provisions of 413 chapter 54. Such appeal shall be made in writing to the commissioner 414 Raised Bill No. 452 LCO No. 2826 15 of 25 and received not later than fifteen days after the date of the order. If no 415 appeal is made pursuant to this subsection the order shall be final. 416 (q) (1) All documents [included in an application for a grower or 417 processor license] submitted under this section shall be subject to 418 disclosure in accordance with chapter 14, except: [any document 419 describing, depicting or otherwise outlining a licensee's security 420 schematics and the results of any criminal history records check] (A) 421 Information depicting or describing (i) the test results of any producer, 422 (ii) the location of any hemp growing, harvesting, processing or storage 423 location, or (iii) hemp producer location security schematics; and (B) the 424 results of any criminal history records check. 425 (2) Notwithstanding the provisions of subdivision (1) of this 426 subsection, all documents and records submitted or maintained 427 pursuant to this section shall be disclosed to any law enforcement 428 agency upon request of such law enforcement agency. 429 (r) The commissioner may inspect and shall have access to the 430 buildings, equipment, supplies, vehicles, records, real property and 431 other information that the commissioner deems necessary to carry out 432 the commissioner's duties pursuant to this section from any person 433 participating in [the planting, cultivating, harvesting, processing,] 434 producing, handling, storing marketing or researching [of] hemp. 435 [(s) The commissioner shall establish an inspection and testing 436 program to determine THC levels and ensure compliance with the limits 437 on THC concentration in all hemp grown in the state by a grower 438 licensee. The grower shall collect a pre-harvest sample no more than 439 fifteen days before the intended harvest date, in accordance with the 440 commissioner's pre-harvest hemp sampling protocol adopted in 441 accordance with chapter 54 and published on the Internet web site of 442 the Department of Agriculture. The grower and processor licensees 443 shall be responsible for all costs of disposal of hemp samples and any 444 hemp produced by a licensee that violates the provisions of this section 445 or any regulation adopted pursuant to this section. A hemp sample fails 446 Raised Bill No. 452 LCO No. 2826 16 of 25 THC testing if the test report indicates that the sample contains an 447 average THC concentration greater than 0.3 per cent on a dry weight 448 basis. The commissioner may order and conduct post-harvest sample 449 THC testing of a plot if the results of an initial THC test on the pre-450 harvest sample provided and collected by the licensee indicate a THC 451 concentration in the pre-harvest sample in excess of such permitted 452 levels, unless the licensee elects to destroy the crop prior to post-harvest 453 sample THC testing.] 454 [(t)] (s) Nothing in this section shall be construed to apply to any 455 licensee of palliative marijuana authorized pursuant to chapter 420f. 456 [(u)] (t) All licensees pursuant to this section shall maintain records 457 required by the federal act, the state plan, this section and any regulation 458 adopted pursuant to this section. Each licensee shall make such records 459 available to the department immediately upon request of the 460 commissioner and in electronic format, if available. 461 [(v)] (u) The commissioner [shall] may adopt regulations, in 462 accordance with the provisions of chapter 54, to implement the 463 provisions of this section including, but not limited to, [establishing 464 sampling and testing procedures to ensure compliance with the federal 465 act and to prescribe disposal procedures for plants grown in violation 466 of the federal act] the labeling of producer hemp products. 467 [(w)] (v) Notwithstanding any provision of the general statutes: (1) 468 Marijuana does not include hemp or hemp products; (2) THC that does 469 not exceed 0.3 per cent by dry weight and that is found in hemp shall 470 not be considered to be THC that constitutes a controlled substance; (3) 471 hemp-derived cannabidiols, including CBD, shall not constitute 472 controlled substances or adulterants solely on the basis of containing 473 CBD; and (4) hemp products that contain one or more hemp-derived 474 cannabidiols, such as CBD, intended for ingestion shall be considered 475 foods, not controlled substances or adulterated products solely on the 476 basis of the containing hemp-derived cannabidiols. 477 [(x)] (w) Whenever the commissioner believes or has reasonable 478 Raised Bill No. 452 LCO No. 2826 17 of 25 cause to believe that the actions of a licensee or any employee of a 479 grower or processor licensee [will violate] are in violation of the federal 480 act, the state plan, or any state law concerning the growing, cultivation, 481 handling, transporting or possession of marijuana, the commissioner 482 shall notify the Department of Emergency Services and Public 483 Protection and the State Police. 484 [(y) The Commissioner of Agriculture may enter an agreement with 485 any state or federally recognized Indian tribe to assist such tribe in the 486 development of a pilot program under the federal act or to have 487 applicants from such tribe participate in the pilot program established 488 pursuant to subsection (b) of this section.] 489 Sec. 2. Section 22-61m of the 2020 supplement to the general statutes 490 is repealed and the following is substituted in lieu thereof (Effective from 491 passage): 492 (a) No person shall manufacture in the state without a license to 493 manufacture issued by the Commissioner of Consumer Protection. 494 (b) Each applicant for a manufacturer license shall submit an 495 application on a form and in a manner prescribed by the Commissioner 496 of Consumer Protection. 497 (c) The following fees shall apply for a license to manufacture: 498 (1) A nonrefundable license application fee of [fifty] seventy-five 499 dollars; and 500 (2) A nonrefundable licensing fee of [two hundred fifty] three 501 hundred seventy-five dollars for a license to manufacture hemp. 502 (d) A license to manufacture [hemp or hemp products] issued by the 503 Commissioner of Consumer Protection pursuant to this section shall 504 expire [biennially] triennially on June thirtieth. Such licenses shall not 505 be transferable. 506 (e) In accordance with a hearing held pursuant to chapter 54, the 507 Raised Bill No. 452 LCO No. 2826 18 of 25 Commissioner of Consumer Protection may deny, suspend or revoke a 508 manufacturer license, issue fines of not more than two thousand five 509 hundred dollars per violation and place c onditions upon a 510 manufacturer licensee who violates the provisions of this section and 511 any regulation adopted pursuant to this section. 512 (f) (1) Any individual who manufactures in this state without 513 obtaining a license pursuant to this section or who manufactures in this 514 state after such entity's license is suspended or revoked shall be fined 515 two hundred fifty dollars in accordance with the provisions of section 516 51-164n. 517 (2) Any [business entity] person who manufactures in this state 518 without obtaining a license pursuant to this section, or who 519 manufactures in this state after having a license suspended, shall be 520 fined not more than two thousand five hundred dollars per violation 521 after a hearing conducted in accordance with the provisions of chapter 522 54. 523 (g) Nothing in this section shall be construed to apply to any licensee 524 of palliative marijuana authorized pursuant to chapter 420f. 525 (h) The Commissioner of Consumer Protection may inspect and shall 526 have access to the buildings, equipment, supplies, vehicles, records, real 527 property and other information of any manufacturer applicant or 528 licensee that the commissioner deems necessary to carry out the 529 commissioner's duties pursuant to this section. 530 (i) (1) Each manufacturer shall follow the protocol in this subsection 531 for disposing of [hemp or hemp products] cannabis in the event that any 532 hemp or hemp product is deemed to [contain a] exceed the prescribed 533 THC concentration, [of more than 0.3 per cent on a dry weight basis,] as 534 determined by the Commissioner of Consumer Protection, or a 535 manufacturer licensee in possession of hemp or hemp products who 536 desires to dispose of obsolete, misbranded, excess or otherwise 537 undesired product. Each manufacturer licensee shall be responsible for 538 all costs of disposal of hemp samples and any hemp produced by such 539 Raised Bill No. 452 LCO No. 2826 19 of 25 licensee that violates the provisions of this section or any regulation 540 adopted pursuant to this section. Any [hemp or hemp product 541 containing a] cannabis that exceeds the prescribed THC concentration 542 [of more than 0.3 per cent on a dry weight basis] allowable in hemp or 543 hemp products shall be immediately embargoed by such manufacturer 544 and clearly labeled as adulterated by such licensee and such licensee 545 shall immediately notify both the Department of Consumer Protection 546 and the Department of Agriculture, in writing, of such adulterated 547 product. Such adulterated product shall be destroyed and disposed of 548 by the following method, as determined by the Commissioner of 549 Consumer Protection: 550 (A) Surrender, without compensation, of such hemp or hemp product 551 to the Commissioner of Consumer Protection who shall be responsible 552 for the destruction and disposal of such adulterated product; or 553 (B) By disposal in [the presence of an authorized representative of] a 554 manner prescribed by the Commissioner of Consumer Protection. [in 555 such a manner as to render the hemp or hemp product nonrecoverable.] 556 (2) Notwithstanding the provisions of subdivision (1) of this 557 subsection, upon written request of a manufacturer, the Commissioner 558 of Consumer Protection may permit such manufacturer to combine 559 different batches of raw hemp plant material to achieve a THC 560 concentration of 0.3 per cent on a dry weight basis, in lieu of embargo 561 or destruction. 562 (j) The [person] manufacturer or manufacturer's authorized designee 563 disposing of the hemp or hemp products shall maintain and make 564 available to the Commissioner of Consumer Protection a record of each 565 such disposal or destruction of product indicating: 566 (1) The date, time and location of disposal or destruction; 567 (2) The manner of disposal or destruction; 568 (3) The batch or lot information and quantity of hemp or hemp 569 Raised Bill No. 452 LCO No. 2826 20 of 25 product disposed of or destroyed; and 570 (4) The signatures of the persons disposing of the hemp or hemp 571 products, the authorized representative of the Commissioner of 572 Consumer Protection and any other persons present during the 573 disposal. 574 (k) Any hemp intended to be manufactured [as a consumable] into a 575 manufacturer hemp product shall be tested by an independent testing 576 laboratory. [or any other such laboratory that is accredited as a testing 577 laboratory to International Organization for Standardization (ISO) 578 17025 by a third-party accrediting body.] A manufacturer licensee shall 579 make available samples, in an amount and type determined by the 580 Commissioner of Consumer Protection, of hemp [or hemp product] for 581 an independent testing laboratory employee to select random samples. 582 The independent testing laboratory [or other such laboratory] shall test 583 each sample for microbiological contaminants, mycotoxins, heavy 584 metals and pesticide chemical residue, and for purposes of conducting 585 an active ingredient analysis, if applicable, as determined by the 586 Commissioner of Consumer Protection. 587 (l) Once a batch of hemp, [or hemp product,] intended to be sold as a 588 [consumable] manufacturer hemp product, has been homogenized for 589 sample testing and eventual packaging and sale, until the independent 590 testing laboratory [or other such laboratory] provides the results from 591 its tests and analysis, the manufacturer licensee shall segregate and 592 withhold from use the entire batch of hemp that is intended for 593 [consumable] use as a manufacturer hemp product, except the samples 594 that have been removed by the independent testing laboratory for 595 testing. During this period of segregation, the manufacturer licensee 596 shall maintain the hemp [or hemp product] batch in a secure, cool and 597 dry location, as prescribed by the Commissioner of Consumer 598 Protection, so as to prevent the hemp [or hemp product] from becoming 599 adulterated. Such manufacturer shall not manufacture or sell a 600 [consumable] manufacturer hemp product prior to the time that the 601 independent testing laboratory [or other such laboratory] completes 602 Raised Bill No. 452 LCO No. 2826 21 of 25 testing and analysis and provides such results, in writing, to the 603 manufacturer licensee who initiated such testing. 604 (m) An independent testing laboratory [or other such laboratory] 605 shall immediately return or dispose of any hemp [or hemp product] 606 upon the completion of any testing, use or research. If an independent 607 testing laboratory [or other such laboratory] disposes of hemp or 608 manufacturer hemp products, the laboratory shall dispose of such hemp 609 in the following manner, as determined by the Commissioner of 610 Consumer Protection: 611 (1) By surrender, without compensation, of such hemp [or hemp 612 product] to the Commissioner of Consumer Protection who shall be 613 responsible for the destruction and disposal of such hemp or hemp 614 product; or 615 (2) By disposal in [the presence of an authorized representative of] a 616 manner prescribed by the Commissioner of Consumer Protection. [in 617 such a manner as to render the hemp or hemp product nonrecoverable.] 618 (n) If a sample does not pass the microbiological, mycotoxin, heavy 619 metal or pesticide chemical residue test, based on the standards 620 prescribed by the Commissioner of Consumer Protection and published 621 on the Internet web site of the Department of Consumer Protection, the 622 manufacturer licensee who sent such batch for testing shall dispose of 623 the entire batch from which the sample was taken in accordance with 624 procedures established by the Commissioner of Consumer Protection 625 pursuant to subdivision (1) of subsection (i) of this section. 626 (o) If a sample passes the microbiological, mycotoxin, heavy metal 627 and pesticide chemical residue test, the independent testing laboratory 628 [or other such laboratory] shall release the entire batch for 629 manufacturing, processing or sale. 630 (p) The independent testing laboratory [or other such laboratory] 631 shall file with the Department of Consumer Protection an electronic 632 copy of each laboratory test result for any batch that does not pass the 633 Raised Bill No. 452 LCO No. 2826 22 of 25 microbiological, mycotoxin, heavy metal or pesticide chemical residue 634 test, at the same time that it transmits such results to the manufacturer 635 licensee who requested such testing. Each independent testing 636 laboratory [or other such laboratory] shall maintain the test results of 637 each tested batch for a period of three years and shall make such results 638 available to the Department of Consumer Protection upon request. 639 (q) Manufacturer licensees shall maintain records required by the 640 federal act, this section and any regulation adopted pursuant to this 641 section. Each manufacturer licensee shall make such records available 642 to the Department of Consumer Protection immediately upon request 643 and in electronic format, if available. 644 (r) The Commissioner of Consumer Protection may adopt 645 regulations, in accordance with the provisions of chapter 54, to 646 implement the provisions of this section including, but not limited to, 647 establishing sampling and testing procedures to ensure compliance 648 with [the federal act, to prescribe] this section, prescribing storage and 649 disposal procedures for [plants grown in violation of the federal act] 650 hemp, marijuana and manufacturer hemp products that fail to pass 651 Department of Consumer Protection prescribed independent testing 652 laboratory testing standards and [to establish] establishing advertising 653 and labeling requirements for [consumables] manufacturer hemp 654 products. 655 (s) Any claim of health impacts, medical effects or physical or mental 656 benefits shall be prohibited on any advertising for, labeling of or 657 marketing of [consumables] manufacturer hemp products. Any 658 violation of this subsection shall be deemed an unfair or deceptive trade 659 practice under chapter 735a. 660 (t) Not later than February 1, 2020, the Commissioners of Agriculture 661 and Consumer Protection shall submit a report, in accordance with 662 section 11-4a, to the joint standing committee of the general assembly 663 having cognizance of matters relating to the environment on the status 664 of the pilot program, the development of the state plan and any 665 Raised Bill No. 452 LCO No. 2826 23 of 25 regulations for such pilot program or state plan. Additionally such 666 report shall include any legislative recommendations, including, but not 667 limited to, any recommendations for requiring the registration of any 668 [consumable] manufacturer hemp product offered for sale in this state. 669 (u) Any person who sells manufacturer hemp products shall not be 670 required to be licensed, provided such person only engages in: (1) The 671 retail or wholesale sale of manufacturer hemp products in which no 672 further manufacturing of hemp occurs, provided such manufacturer 673 hemp products are acquired from a person authorized to manufacture 674 the manufacturer hemp products under the laws of this state or another 675 state, territory or possession of the United States or another sovereign 676 entity; (2) the acquisition of manufacturer hemp products for the sole 677 purpose of product distribution for resale; or (3) the retail sale of 678 manufacturer hemp products that is otherwise authorized under federal 679 or state law. 680 (v) Notwithstanding any provision of the general statutes: (1) 681 Marijuana does not include manufacturer hemp products; (2) CBD that 682 is found in manufacturer hemp products shall not be considered a 683 controlled substance, as defined in section 21a-240, as amended by this 684 act, or legend drug, as defined in 20-571; and (3) cannabinoids derived 685 from hemp and contained in manufacturer hemp products shall not be 686 considered controlled substances or adulterants. 687 Sec. 3. Subdivision (7) of section 21a-240 of the 2020 supplement to the 688 general statutes is repealed and the following is substituted in lieu 689 thereof (Effective from passage): 690 (7) "Cannabis-type substances" include all parts of any plant, or 691 species of the genus cannabis or any infra specific taxon thereof whether 692 growing or not; the seeds thereof; the resin extracted from any part of 693 such a plant; and every compound, manufacture, salt, derivative, 694 mixture or preparation of such plant, its seeds or resin; but shall not 695 include the mature stalks of such plant, fiber produced from such stalks, 696 oil or cake made from the seeds of such plant, any other compound, 697 Raised Bill No. 452 LCO No. 2826 24 of 25 manufacture, salt, derivative, mixture or preparation of such mature 698 stalks, except the resin extracted therefrom, fiber, oil or cake, the 699 sterilized seed of such plant which is incapable of germination, or hemp, 700 as defined in 7 USC 1639o, as amended from time to time. Included are 701 cannabinon, cannabinol, cannabidiol and chemical compounds which 702 are similar to cannabinon, cannabinol or cannabidiol in chemical 703 structure or which are similar thereto in physiological effect, and which 704 show a like potential for abuse, which are controlled substances under 705 this chapter unless [modified] derived from hemp, as defined in section 706 22-61l, as amended by this act; 707 Sec. 4. Subdivision (29) of section 21a-240 of the 2020 supplement to 708 the general statutes is repealed and the following is substituted in lieu 709 thereof (Effective from passage): 710 (29) "Marijuana" means all parts of any plant, or species of the genus 711 cannabis or any infra specific taxon thereof, whether growing or not; the 712 seeds thereof; the resin extracted from any part of the plant; and every 713 compound, manufacture, salt, derivative, mixture, or preparation of 714 such plant, its seeds or resin. Marijuana does not include the mature 715 stalks of such plant, fiber produced from such stalks, oil or cake made 716 from the seeds of such plant, any other compound, manufacture, salt, 717 derivative, mixture or preparation of such mature stalks, except the 718 resin extracted therefrom, fiber, oil, or cake, the sterilized seed of such 719 plant which is incapable of germination, or hemp, as defined in 7 USC 720 1639o, as amended from time to time. Included are cannabinon, 721 cannabinol or cannabidiol and chemical compounds which are similar 722 to cannabinon, cannabinol or cannabidiol in chemical structure or which 723 are similar thereto in physiological effect, and which show a like 724 potential for abuse, which are controlled substances under this chapter 725 unless [modified] derived from hemp, as defined in section 22-61l, as 726 amended by this act; 727 This act shall take effect as follows and shall amend the following sections: Section 1 from passage 22-61l Raised Bill No. 452 LCO No. 2826 25 of 25 Sec. 2 from passage 22-61m Sec. 3 from passage 21a-240(7) Sec. 4 from passage 21a-240(29) Statement of Purpose: To make the state's hemp program consistent with requirements of federal law. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]