LCO No. 2339 1 of 18 General Assembly Raised Bill No. 6099 January Session, 2021 LCO No. 2339 Referred to Committee on GENERAL LAW Introduced by: (GL) AN ACT CONCERNING AN TITRUST ISSUES AND THE PALLIATIVE USE OF MARIJUANA. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2021) (a) For purposes of this 1 section: 2 (1) "Material change" means: (A) The addition of a dispensary facility 3 backer or producer backer, (B) a change in the ownership interest of an 4 existing dispensary facility backer or producer backer, (C) the merger, 5 consolidation or other affiliation of a medical marijuana business with 6 another person, (D) the acquisition of all or part of a medical marijuana 7 business by another person, and (E) the transfer of assets or security 8 interests from a medical marijuana business to another person; 9 (2) "Medical marijuana business" means a medical marijuana 10 dispensary facility or production facility, licensed pursuant to chapter 11 420f of the general statutes and the regulations promulgated 12 thereunder; 13 (3) "Person" means an individual, firm, partnership, corporation, 14 Raised Bill No. 6099 LCO No. 2339 2 of 18 company, association, trust or other business or tribal entity; and 15 (4) "Transfer" means to sell, transfer, lease, exchange, option, convey, 16 give or otherwise dispose of or transfer control over, including, but not 17 limited to, transfer by way of merger or joint venture not in the ordinary 18 course of business. 19 (b) No person shall, directly or indirectly, enter into a transaction that 20 results in a material change to a medical marijuana business, unless all 21 persons involved in the transaction file a written notification with the 22 Attorney General pursuant to subsection (c) of this section and the 23 waiting period described in subsection (d) of this section has expired. 24 (c) The written notice required under subsection (b) of this section 25 shall be in such form and contain such documentary material and 26 information relevant to the proposed transaction as the Attorney 27 General deems necessary and appropriate to enable the Attorney 28 General to determine whether such transaction, if consummated, would 29 violate antitrust laws. 30 (d) The waiting period required under subsection (b) of this section 31 shall begin on the date of the receipt by the Attorney General's office of 32 the completed notification required under subsection (c) of this section 33 from all parties to the transaction and shall end on the thirtieth day after 34 the date of such receipt, unless such time is extended pursuant to 35 subsection (f) of this section. 36 (e) The Attorney General may, in individual cases, terminate the 37 waiting period specified in subsection (d) of this section and allow any 38 person to proceed with any transaction. 39 (f) The Attorney General may, prior to the expiration of the thirty-day 40 waiting period, require, pursuant to a subpoena or voluntarily, the 41 submission of additional information or documentary material relevant 42 to the proposed acquisition from a person required to file notification 43 with respect to such acquisition under subsection (b) of this section. 44 Upon request for additional information under this subsection, the 45 Raised Bill No. 6099 LCO No. 2339 3 of 18 waiting period shall be extended until thirty days after the parties have 46 substantially complied, as determined solely by the Attorney General, 47 with such request for additional information. 48 (g) Any information or documentary material filed with the Attorney 49 General pursuant to this section shall not be disclosed pursuant to 50 subsection (c) of section 35-42 of the general statutes and, shall be 51 exempt from disclosure under section 1-200, et seq. of the general 52 statutes, and no such information or documentary material may be 53 made public, except as may be relevant to any administrative or judicial 54 action or proceeding. Such information or documentary material shall 55 be returned to the person furnishing such information or documentary 56 material upon the termination of the Attorney General's review or final 57 determination of any action or proceeding commenced thereunder. 58 Sec. 2. Section 22-61l of the general statutes is repealed and the 59 following is substituted in lieu thereof (Effective July 1, 2021): 60 (a) For the purpose of this section and section 22-61m, as amended by 61 this act, the following terms have the same meaning as provided in 7 62 CFR 990.1, as amended from time to time: "Acceptable hemp THC level", 63 "Agricultural marketing service", "Cannabis", "Conviction", "Corrective 64 action plan", "Culpable mental state greater than negligence", 65 "Decarboxylated", "Decarboxylation", "Dry weight basis", "Gas 66 chromatography", "Geospatial location", "Handle", "High-performance 67 liquid chromatography", "Information sharing system", "Measurement 68 of uncertainty", "Negligence", "Phytocannabinoid", 69 "Postdecarboxylation" and "Reverse distributor". In addition, for the 70 purpose of this section and section 22-61m, as amended by this act: 71 (1) "Cannabidiol" or "CBD" means the nonpsychotropic compound by 72 the same name; 73 (2) "Certificate of analysis" means a certificate from a laboratory 74 describing the results of the laboratory's testing of a sample; 75 (3) "Commissioner" means the Commissioner of Agriculture, or the 76 Raised Bill No. 6099 LCO No. 2339 4 of 18 commissioner's designated agent; 77 (4) "Cultivate" means to plant, grow, harvest, handle and store a plant 78 or crop; 79 (5) "Federal act" means the United States Agricultural Marketing Act 80 of 1946, 7 USC 1639o et seq., as amended from time to time; 81 (6) "Department" means the Department of Agriculture; 82 (7) "Hemp" has the same meaning as provided in the federal act; 83 (8) "Hemp products" means all manufacturer hemp products and 84 producer hemp products; 85 (9) "Independent testing laboratory" means a facility: 86 (A) For which no person who has any direct or indirect financial or 87 managerial interest in the laboratory and also has any direct or indirect 88 interest in a facility that: 89 (i) Produces, distributes, manufactures or sells hemp or hemp 90 products, or marijuana in any state or territory of the United States; or 91 (ii) Cultivates, processes, distributes, dispenses or sells marijuana; 92 and 93 (B) That is accredited as a laboratory in compliance with section 21a-94 408-59 of the regulations of Connecticut state agencies; 95 (10) "Laboratory" means a laboratory that meets the requirements of 96 7 CFR 990.3 and that is accredited as a testing laboratory to International 97 Organization for Standardization (ISO) 17025 by a third-party 98 accrediting body such as the American Association for Laboratory 99 Accreditation or the Assured Calibration and Laboratory Accreditation 100 Select Services; 101 (11) "Law enforcement agency" means the Connecticut State Police, 102 the United States Drug Enforcement Administration, the Department of 103 Raised Bill No. 6099 LCO No. 2339 5 of 18 Agriculture, the Department of Consumer Protection Drug Control 104 Division or any other federal, state or local law enforcement agency or 105 drug suppression unit; 106 (12) "Licensee" means an individual or entity that possesses a license 107 to produce or manufacture hemp or hemp products in this state; 108 (13) "Manufacture" means the conversion of the hemp plant into a by-109 product by means of adding heat, solvents or any method of extraction 110 that modifies the original composition of the plant for the purpose of 111 creating a manufacturer hemp product for commercial or research 112 purposes; 113 (14) "Manufacturer" means a person in the state licensed by the 114 Commissioner of Consumer Protection to manufacture, handle, store 115 and market manufacturer hemp products pursuant to the provisions of 116 section 22-61m, as amended by this act, and any regulation adopted 117 pursuant to section 22-61m, as amended by this act; 118 (15) "Marijuana" has the same meaning as provided in section 21a-119 240; 120 (16) "Market" or "marketing" means promoting, distributing or 121 selling a hemp product within the state, in another state or outside of 122 the United States and includes efforts to advertise and gather 123 information about the needs or preferences of potential consumers or 124 suppliers; 125 (17) "On-site manager" means the individual designated by the 126 producer license applicant or producer responsible for on-site 127 management and operations of a licensed producer; 128 (18) "Pesticide" has the same meaning as "pesticide chemical" as 129 provided in section 21a-92; 130 (19) "Lot" means a contiguous area in a field, greenhouse or indoor 131 growing structure containing the same variety or strain of hemp 132 throughout the area; 133 Raised Bill No. 6099 LCO No. 2339 6 of 18 (20) "Post-harvest sample" means a representative sample of the form 134 of hemp taken from the harvested hemp from a particular lot's harvest 135 that is collected in accordance with the procedures established by the 136 commissioner; 137 (21) "Pre-harvest sample" means a composite, representative portion 138 from plants in a hemp lot, that is collected in accordance with the 139 procedures established by the commissioner; 140 (22) "Produce" means to cultivate hemp or create any producer hemp 141 product; 142 (23) "State plan" means a state plan, as described in the federal act and 143 as authorized pursuant to this section; 144 (24) "THC" means delta-9-tetrahydrocannabinol; 145 (25) "Controlled Substances Act" or "CSA" means the Controlled 146 Substances Act as codified in 21 USC 801 et seq.; 147 (26) "Criminal history report" means the Federal Bureau of 148 Investigation's Identity History Summary; 149 (27) "Drug Enforcement Administration" or "DEA" means the United 150 States Drug Enforcement Administration; 151 (28) "Farm service agency" or "FSA" means an agency of the United 152 States Department of Agriculture; 153 (29) "Key participant" means a sole proprietor, a partner in 154 partnership or a person with executive managerial control in an entity, 155 including persons such as a chief executive officer, chief operating 156 officer and chief financial officer; 157 (30) "Manufacturer hemp product" means a commodity 158 manufactured from the hemp plant, for commercial or research 159 purposes, that is intended for human ingestion, inhalation, absorption 160 or other internal consumption, that contains a THC concentration of not 161 Raised Bill No. 6099 LCO No. 2339 7 of 18 more than 0.3 per cent on a dry weight basis or per volume or weight of 162 such manufacturer hemp product; 163 (31) "Producer" means an individual or entity licensed by the 164 commissioner to produce and market producer hemp products 165 pursuant to the federal act, the state plan, the provisions of this section 166 and the regulations adopted pursuant to this section; 167 (32) "Producer hemp product" means any of the following produced 168 in this state: Raw hemp product, fiber-based hemp product or animal 169 hemp food product, and each of which contains a THC concentration of 170 not more than 0.3 per cent on a dry weight basis or per volume or weight 171 of such producer hemp product; 172 (33) "USDA" means the United States Department of Agriculture; 173 (34) "Entity" means a corporation, joint stock company, association, 174 limited partnership, limited liability partnership, limited liability 175 company, irrevocable trust, estate, charitable organization or other 176 similar organization, including any such organization participating in 177 the hemp production as a partner in a general partnership, a participant 178 in a joint venture or a participant in a similar organization; and 179 (35) "Homogenize" means to blend hemp into a mixture that has a 180 uniform quality and content throughout such mixture. 181 (b) The Commissioner of Agriculture shall establish and operate an 182 agricultural pilot program, as defined in 7 USC 5940, as amended from 183 time to time, for hemp research to enable the department, and its 184 licensees, to study methods of producing and marketing hemp. All 185 producer licensees licensed pursuant to this section shall be participants 186 in the state agricultural pilot program for hemp research. Until such 187 time as said commissioner adopts regulations, in accordance with the 188 provisions of chapter 54, the Department of Agriculture shall utilize 189 procedures and guidance policies that the commissioner deems to be 190 consistent with the provisions of 7 USC 5940, as amended from time to 191 time, provided such procedures and guidance policies shall, at a 192 Raised Bill No. 6099 LCO No. 2339 8 of 18 minimum, require: (1) The commissioner to certify and register any site 193 used to grow hemp, (2) any person who produces hemp to produce 194 plants that meet the definition of hemp and verify such, (3) the 195 maintenance of records by any person who grows hemp and the 196 availability of inspection of such records by the commissioner, and (4) 197 verification of compliance with the definition of hemp by a laboratory, 198 at the expense of any licensee. The provisions of this section shall take 199 precedence over any such procedure or guidance policy. Participants in 200 the state agricultural pilot program for hemp research shall be licensed 201 in accordance with the provisions of this section. Such pilot program 202 shall operate until the earlier of the date of a fully approved state plan 203 under the federal act, as described in this section, or the date of repeal 204 of the federal law permitting the state's agricultural pilot program for 205 hemp research. 206 (c) (1) The commissioner shall prepare a state plan in accordance with 207 the federal act and 7 CFR 990.3, for approval by the Governor, in 208 consultation with the office of the Chief State's Attorney and the 209 Attorney General. The state plan, once approved by the Governor and 210 the Attorney General, shall be submitted by the commissioner to the 211 United States Secretary of Agriculture for his or her approval. The 212 commissioner shall have the authority to amend the state plan, in 213 consultation with the Governor, the Attorney General and the office of 214 the Chief State's Attorney, as necessary to comply with the federal act. 215 (2) The commissioner shall operate the state plan, which shall 216 include, at a minimum, the following requirements: 217 (A) The sampling of hemp shall comply, at a minimum, with 7 CFR 218 990.3(a)(2) and be performed by the commissioner, the commissioner's 219 designated agents, or an authorized sampling agent; 220 (B) The testing of hemp shall comply, at a minimum, with 7 CFR 221 990.3(a)(3); 222 (C) The control and disposal of noncompliant cannabis plants shall 223 comply with 7 CFR 990.27; 224 Raised Bill No. 6099 LCO No. 2339 9 of 18 (D) The department shall comply with all recordkeeping and 225 reporting requirements in the federal act, and 7 CFR 990.1 to 7 CFR 226 990.71, inclusive; 227 (E) The department shall comply with enforcement procedures in 7 228 CFR 990.6; 229 (F) The department shall conduct annual inspections of, at a 230 minimum, a random sample of producers to verify that hemp is not 231 produced in violation of the federal act, the state plan and the provisions 232 of this section, and shall enforce any violation as provided for in the 233 federal act and as defined in 7 CFR 990.6; 234 (G) Producers shall report their required license, lot and hemp crop 235 acreage information to FSA, in accordance with the requirements in 7 236 CFR 990.7; and 237 (H) Producers shall report to the commissioner the total acreage of 238 hemp planted, harvested and, if applicable, disposed of, and such other 239 information as the commissioner may require. 240 (3) All sampling and testing of hemp shall be done using protocols 241 that are at least as statistically valid as the USDA's published protocols 242 for sampling and testing of hemp, which protocols shall be posted on 243 the department's Internet web site. During a scheduled sample 244 collection, the producer, or an authorized representative of the 245 producer, shall be present at the lot. A producer shall not harvest the 246 cannabis crop prior to the taking of samples. Samples of hemp plant 247 material from one lot shall not be commingled with hemp plant material 248 from other lots. Lots tested and not certified by a laboratory at or below 249 the acceptable hemp THC level shall be handled and disposed of in 250 accordance with the federal act, the provisions of this section and the 251 state plan, as applicable. 252 (4) The commissioner shall collect, maintain and provide to the 253 USDA, on a timely basis, and not less than once per month, license status 254 of each hemp producer, contact information for each hemp producer 255 Raised Bill No. 6099 LCO No. 2339 10 of 18 licensed in the state, including lot legal descriptions and locations, and 256 any changes to such information. The commissioner shall also report to 257 the USDA, on a timely basis, and not less than once per month, all 258 required hemp test results and disposal information for all 259 nonconforming hemp plants and plant material. Such information shall 260 not include state and federal fingerprint-based records pursuant to 261 section 29-17a. 262 (d) The commissioner shall have the authority to enforce the federal 263 act, as amended from time to time, the state plan, this section and any 264 regulations adopted in accordance with the federal act and chapter 54 265 for hemp production in the state. The commissioner shall have the 266 authority to enforce the applicable standards for producer hemp 267 products. The commissioner may consult, collaborate and enter into 268 cooperative agreements with any federal or state agency, municipality 269 or political subdivision of the state concerning application of the 270 provisions of the federal act and the regulations adopted pursuant to the 271 federal act, as may be necessary to carry out the provisions of this 272 section. 273 (e) Any person who produces hemp shall: (1) Be licensed by the 274 commissioner; (2) comply with the federal act, the state plan, the 275 provisions of this section and any regulation adopted pursuant to this 276 section; and (3) transport hemp and hemp samples in a manner and with 277 such documentation as required by the commissioner. 278 (f) Any person who sells hemp products shall not be required to be 279 licensed provided such person only engages in: (1) The retail or 280 wholesale sale of hemp or hemp products in which no further 281 producing or manufacturing of the hemp products occurs and the hemp 282 products are acquired from a person authorized under the laws of this 283 state or another state, territory or possession of the United States or 284 another sovereign entity to possess and sell such hemp products; (2) the 285 acquisition of hemp or hemp products for the sole purpose of product 286 distribution for resale; or (3) the retail sale of hemp products that are 287 otherwise authorized under federal or state law. 288 Raised Bill No. 6099 LCO No. 2339 11 of 18 (g) Any applicant for a license pursuant to this section shall meet each 289 of the following requirements, as applicable: 290 (1) Each applicant, whether an individual or an entity, shall submit 291 an application for a license that consists, at a minimum, of the following: 292 (A) The name, telephone number, electronic mail address, business 293 address and address of any individual who is the applicant, the full 294 name of any entity that is the applicant, including any applicable 295 principal business location and the full name, title and electronic mail 296 address of each key participant; (B) the name and address of each lot for 297 the hemp cultivation or producing location; (C) the geospatial location 298 of each lot by means of global positioning system coordinates and legal 299 description of each lot used for the hemp cultivation; (D) the acreage 300 size of each lot where the hemp will be cultivated; (E) written consent 301 allowing the commissioner to conduct both scheduled and random 302 inspections of and around the premises on which the hemp is to be 303 cultivated, harvested, stored and produced; and (F) any other 304 information as may be required by the commissioner; 305 (2) Each individual who is an applicant and each key participant of 306 any entity applying for a producer license, or renewal thereof, shall 307 submit to state and national fingerprint-based criminal history records 308 checks conducted in accordance with section 29-17a, at his or her own 309 expense. For the period commencing on the effective date of this section 310 and ending on December 31, 2021, the results of any such criminal 311 history records checks shall be provided by such applicants and key 312 participants to the commissioner for review; 313 (3) No individual, including any key participant of any entity, who 314 has been convicted of any felony, as prescribed in the federal act, shall 315 be eligible to obtain or hold a producer license, provided such restriction 316 shall not apply to any individual who lawfully grew hemp with a 317 license, registration or authorization under any state pilot program 318 authorized by section 7606 of the Agricultural Act of 2014 before 319 December 20, 2018. Any individual or entity that materially falsifies any 320 information in an application pursuant to this section shall be ineligible 321 Raised Bill No. 6099 LCO No. 2339 12 of 18 to obtain a producer license; and 322 (4) Each individual or entity who is required by this section to obtain 323 a producer license shall pay for all costs of sampling, testing, retesting 324 and resampling any samples at a laboratory for the purpose of 325 determining the THC concentration level of any cannabis under their 326 control, or in their possession. Each individual or entity who is required 327 by this section to obtain a producer license shall pay for all costs of 328 disposal of all noncompliant cannabis plants under their control, or in 329 their possession. 330 (h) Any producer license issued by the commissioner shall expire on 331 the third following December thirty-first and may be renewed during 332 the preceding month of October. Such licenses shall not be transferable. 333 (i) The following fees shall apply for each producer license and 334 inspection: 335 (1) A nonrefundable license application fee of fifty dollars, provided 336 any constituent unit of higher education, state agency or department 337 shall be exempt from such application fee if such production is for 338 research purposes; 339 (2) A nonrefundable triennial producer license fee of four hundred 340 fifty dollars for up to one acre of planned hemp plantings and thirty 341 dollars per each additional acre of planned hemp plantings rounded to 342 the nearest acre, except no license fee charged shall exceed three 343 thousand dollars, provided any constituent unit of higher education, 344 state agency or department shall be exempt from such license fee if such 345 production is for research purposes; and 346 (3) In the event that resampling by the commissioner is required due 347 to a test result that shows a violation of any provision of this section or 348 any regulation adopted pursuant to this section, the licensee shall pay 349 an inspection fee of fifty dollars. Such fee shall be paid prior to the 350 inspection and collection of the sample to be used for resampling. 351 Raised Bill No. 6099 LCO No. 2339 13 of 18 (j) After receipt and review of an application for producer licensure, 352 the commissioner may grant a triennial license upon a finding that the 353 applicant meets the applicable requirements. Each producer licensee 354 shall notify the commissioner of any changes to their application 355 information, not later than fifteen days after such change. While the 356 pilot program is in effect, the commissioner may grant a conditional 357 approval of a producer license, pending receipt of the criminal history 358 records check required by this section. The commissioner shall assign 359 each producer with a license or authorization identifier in a format 360 consistent with 7 CFR 990.3(a)(9). 361 (k) Whenever an inspection or investigation conducted by the 362 commissioner pursuant to this title reveals any violation of the state 363 plan, this section or any regulation adopted thereunder, the producer 364 license applicant or respondent, as applicable, shall be notified, in 365 writing, of such violation and any corrective action to be taken and the 366 time period within which such corrective action shall be taken. Any such 367 producer license applicant or respondent may request a hearing, 368 conducted in accordance with chapter 54, on any such notification. Any 369 notification issued pursuant to this section shall be made by certified 370 mail, return receipt requested to the producer license applicant or 371 respondent's last known address, by in-hand service by the 372 commissioner or designated agent of the commissioner, electronic mail 373 service with the consent of the recipient, or by service in accordance 374 with chapter 896. The commissioner shall report all producer violations 375 made with a culpable mental state greater than negligence to the United 376 States Attorney General and the State's Attorney for the judicial district 377 in which the producer violation occurred. 378 (l) Nothing in this section shall be construed to limit the 379 commissioner's authority to issue a cease and desist order pursuant to 380 section 22-4d, or an emergency order, in order to respond to a condition 381 that may present a public health hazard, or issue orders necessary to 382 effectuate the purposes of this section, including, but not limited to, 383 orders for the embargo, partial destruction, destruction and release of 384 hemp or hemp products. Any cease and desist order or an emergency 385 Raised Bill No. 6099 LCO No. 2339 14 of 18 order shall become effective upon service of such order by the 386 commissioner. Following service of any such order, subsequent 387 proceedings shall proceed in accordance with the provisions of section 388 22-4d and the rules of practice for such agency. Any embargo, partial 389 destruction, destruction or release order issued pursuant to this section 390 shall be served by certified mail, return receipt requested to the 391 respondent's last known address, by in-hand service by the 392 commissioner or designated agent of the commissioner, or by service in 393 accordance with chapter 896. 394 (m) Following a hearing conducted in accordance with chapter 54, 395 the commissioner may impose an administrative civil penalty, not to 396 exceed two thousand five hundred dollars per violation, and suspend, 397 revoke or place conditions upon any producer licensee who violates the 398 provisions of this section or any regulation adopted pursuant to this 399 section. 400 (n) (1) Any individual who produces hemp in this state without 401 obtaining a license pursuant to this section, or who produces hemp in 402 this state after having a license suspended or revoked shall have 403 committed an infraction. 404 (2) Any entity that produces hemp in this state without obtaining a 405 license pursuant to this section, produces hemp in violation of this 406 section or produces hemp in this state after having a license suspended 407 or revoked may be fined not more than two thousand five hundred 408 dollars per violation, after a hearing conducted in accordance with 409 chapter 54. 410 (o) (1) Any negligent violation, as described in the federal act, of this 411 section or the state plan shall be subject to enforcement in accordance 412 with the federal act, and the state plan for negligent violations. 413 (2) For any negligent violation, a producer shall be required to correct 414 such negligent violation, by means of a corrective action plan approved 415 by the commissioner. Each corrective action plan shall include, at a 416 minimum, a reasonable completion deadline for correction of the 417 Raised Bill No. 6099 LCO No. 2339 15 of 18 negligent violation, periodic reporting to the commissioner for at least 418 two years and compliance with the state plan. 419 (3) Any producer that negligently violates the state plan shall not, as 420 a result of such negligent violation, be referred by the commissioner for 421 any criminal enforcement action by the federal, state or local 422 government. 423 (4) Any producer that negligently violates the state plan three times 424 during any five-year period shall be ineligible to produce hemp for a 425 period of five years beginning on the date of the third violation. 426 (5) The commissioner shall conduct an inspection to determine if the 427 corrective action plan for a producer who commits any such negligent 428 violation was properly implemented. 429 (p) Any person aggrieved by an order issued pursuant to this section 430 may appeal to the commissioner in accordance with the provisions of 431 chapter 54. Such appeal shall be made in writing to the commissioner 432 and received not later than fifteen days after the date of the order. If no 433 appeal is made pursuant to this subsection the order shall be final. 434 (q) (1) All documents submitted under this section shall be subject to 435 disclosure in accordance with chapter 14, except: (A) Information 436 depicting or describing (i) the test results of any producer, (ii) the 437 location of any hemp growing, harvesting, processing or storage 438 location, or (iii) hemp producer location security schematics; and (B) the 439 results of any criminal history records check. 440 (2) Notwithstanding the provisions of subdivision (1) of this 441 subsection, all documents and records submitted or maintained 442 pursuant to this section shall be disclosed to any law enforcement 443 agency upon request of such law enforcement agency. 444 (r) The commissioner may inspect and shall have access to the 445 buildings, equipment, supplies, vehicles, records, real property and 446 other information that the commissioner deems necessary to carry out 447 Raised Bill No. 6099 LCO No. 2339 16 of 18 the commissioner's duties pursuant to this section from any person 448 participating in producing, handling, storing marketing or researching 449 hemp. 450 [(s) Nothing in this section shall be construed to apply to any licensee 451 of palliative marijuana authorized pursuant to chapter 420f.] 452 [(t)] (s) All licensees pursuant to this section shall maintain records 453 required by the federal act, the state plan, this section and any regulation 454 adopted pursuant to this section. Each licensee shall make such records 455 available to the department immediately upon request of the 456 commissioner and in electronic format, if available. 457 [(u)] (t) The commissioner may adopt regulations, in accordance with 458 the provisions of chapter 54, to implement the provisions of this section 459 including, but not limited to, the labeling of producer hemp products. 460 [(v)] (u) Notwithstanding any provision of the general statutes: (1) 461 Marijuana does not include hemp or hemp products; (2) THC that does 462 not exceed 0.3 per cent by dry weight and that is found in hemp shall 463 not be considered to be THC that constitutes a controlled substance; (3) 464 hemp-derived cannabidiols, including CBD, shall not constitute 465 controlled substances or adulterants solely on the basis of containing 466 CBD; and (4) hemp products that contain one or more hemp-derived 467 cannabidiols, such as CBD, intended for ingestion shall be considered 468 foods, not controlled substances or adulterated products solely on the 469 basis of the containing hemp-derived cannabidiols. 470 [(w)] (v) Whenever the commissioner believes or has reasonable 471 cause to believe that the actions of a licensee or any employee of a 472 producer licensee are in violation of the federal act, the state plan, or any 473 state law concerning the growing, cultivation, handling, transporting or 474 possession of marijuana, the commissioner shall notify the Department 475 of Emergency Services and Public Protection and the State Police. 476 Sec. 3. Subsection (g) of section 22-61m of the general statutes is 477 repealed and the following is substituted in lieu thereof (Effective July 1, 478 Raised Bill No. 6099 LCO No. 2339 17 of 18 2021): 479 (g) Nothing in this [section shall be construed to apply to any licensee 480 of palliative marijuana authorized pursuant to chapter 420f] chapter or 481 any regulations adopted pursuant to this chapter shall be construed to 482 apply to persons licensed pursuant to section 21a-408i nor require 483 persons licensed pursuant said section to obtain a license pursuant to 484 this chapter. 485 Sec. 4. Subsection (k) of section 22-61m of the general statutes is 486 repealed and the following is substituted in lieu thereof (Effective July 1, 487 2021): 488 (k) Any hemp intended to be manufactured into a manufacturer 489 hemp product shall be tested by an independent testing laboratory 490 located in this state. A manufacturer licensee shall make available 491 samples, in an amount and type determined by the Commissioner of 492 Consumer Protection, of hemp for an independent testing laboratory 493 employee to select random samples. The independent testing laboratory 494 shall test each sample for microbiological contaminants, mycotoxins, 495 heavy metals and pesticide chemical residue, and for purposes of 496 conducting an active ingredient analysis, if applicable, as determined by 497 the Commissioner of Consumer Protection. 498 Sec. 5. (NEW) (Effective July 1, 2021) Marijuana producers shall 499 manufacture, market, produce or store hemp and hemp products, as 500 defined in section 22-61l of the general statutes, as amended by this act, 501 in accordance with the provisions of chapter 424 of the general statutes 502 and the regulations promulgated thereunder, except that producers 503 may obtain hemp and hemp products from a person authorized under 504 the laws of this state or another state, territory or possession of the 505 United States or another sovereign entity to possess and sell such hemp 506 and hemp products. Hemp or hemp products purchased by producers 507 from third parties shall be tracked as a separate batch throughout the 508 manufacturing process in order to document the disposition of such 509 hemp or hemp products. Once hemp or hemp products are received by 510 Raised Bill No. 6099 LCO No. 2339 18 of 18 a producer, such hemp or hemp products shall be deemed marijuana 511 and shall comply with the requirements for marijuana contained in the 512 general statutes and the regulations adopted thereunder. Producers 513 shall retain a copy of the certificate of analysis for hemp or hemp 514 products purchased and invoice and transport documents that evidence 515 the quantity purchased and date received. No hemp or hemp products 516 shall be sold or distributed within a dispensary facility, as defined in 517 section 21a-408-1 of the regulations of Connecticut state agencies. 518 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2021 New section Sec. 2 July 1, 2021 22-61l Sec. 3 July 1, 2021 22-61m(g) Sec. 4 July 1, 2021 22-61m(k) Sec. 5 July 1, 2021 New section Statement of Purpose: To require proposed changes in ownership of medical marijuana businesses licensed by the Department of Consumer Protection to be reviewed by the Office of the Attorney General to determine whether such changes would violate antitrust laws and to allow medical marijuana producers to purchase hemp and hemp products from entities that are not part of the medical marijuana program. [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.]