LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099-R02- HB.docx 1 of 18 General Assembly Substitute Bill No. 6099 January Session, 2021 AN ACT CONCERNING AN TITRUST ISSUES AND THE PALLIATIVE USE OF MARIJUANA AND THE SALE OF HEMP AN D HEMP PRODUCTS. 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 adopted under said 12 chapter; 13 (3) "Person" means an individual, firm, partnership, corporation, 14 company, association, trust or other business or tribal entity; and 15 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 2 of 18 (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 office of the Attorney 32 General of the completed notification required under subsection (c) of 33 this section from all parties to the transaction and shall end on the 34 thirtieth day after the date of such receipt, unless such time is extended 35 pursuant to 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 a 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 transaction from a person required to file notification 43 with respect to such transaction under subsection (b) of this section. 44 Upon request for additional information under this subsection, the 45 waiting period shall be extended until thirty days after the parties have 46 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 3 of 18 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 the Freedom of Information Act, as 52 defined in section 1-200 of the general statutes, and no such information 53 or documentary material may be made public, except as may be relevant 54 to any administrative or judicial action or proceeding. Such information 55 or documentary material shall be returned to the person furnishing such 56 information or documentary material upon the termination of the 57 Attorney General's review or final determination of any action or 58 proceeding commenced thereunder. 59 Sec. 2. Section 22-61l of the general statutes is repealed and the 60 following is substituted in lieu thereof (Effective July 1, 2021): 61 (a) For the purpose of this section and section 22-61m, as amended by 62 this act, the following terms have the same meaning as provided in 7 63 CFR 990.1, as amended from time to time: "Acceptable hemp THC level", 64 "Agricultural marketing service", "Cannabis", "Conviction", "Corrective 65 action plan", "Culpable mental state greater than negligence", 66 "Decarboxylated", "Decarboxylation", "Dry weight basis", "Gas 67 chromatography", "Geospatial location", "Handle", "High-performance 68 liquid chromatography", "Information sharing system", "Measurement 69 of uncertainty", "Negligence", "Phytocannabinoid", 70 "Postdecarboxylation" and "Reverse distributor". In addition, for the 71 purpose of this section and section 22-61m, as amended by this act: 72 (1) "Cannabidiol" or "CBD" means the nonpsychotropic compound by 73 the same name; 74 (2) "Certificate of analysis" means a certificate from a laboratory 75 describing the results of the laboratory's testing of a sample; 76 (3) "Commissioner" means the Commissioner of Agriculture, or the 77 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 4 of 18 commissioner's designated agent; 78 (4) "Cultivate" means to plant, grow, harvest, handle and store a plant 79 or crop; 80 (5) "Federal act" means the United States Agricultural Marketing Act 81 of 1946, 7 USC 1639o et seq., as amended from time to time; 82 (6) "Department" means the Department of Agriculture; 83 (7) "Hemp" has the same meaning as provided in the federal act; 84 (8) "Hemp products" means all manufacturer hemp products and 85 producer hemp products; 86 (9) "Independent testing laboratory" means a facility: 87 (A) For which no person who has any direct or indirect financial or 88 managerial interest in the laboratory and also has any direct or indirect 89 interest in a facility that: 90 (i) Produces, distributes, manufactures or sells hemp or hemp 91 products, or marijuana in any state or territory of the United States; or 92 (ii) Cultivates, processes, distributes, dispenses or sells marijuana; 93 and 94 (B) That is accredited as a laboratory in compliance with section 21a-95 408-59 of the regulations of Connecticut state agencies; 96 (10) "Laboratory" means a laboratory that meets the requirements of 97 7 CFR 990.3 and that is accredited as a testing laboratory to International 98 Organization for Standardization (ISO) 17025 by a third-party 99 accrediting body such as the American Association for Laboratory 100 Accreditation or the Assured Calibration and Laboratory Accreditation 101 Select Services; 102 (11) "Law enforcement agency" means the Connecticut State Police, 103 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 5 of 18 the United States Drug Enforcement Administration, the Department of 104 Agriculture, the Department of Consumer Protection Drug Control 105 Division or any other federal, state or local law enforcement agency or 106 drug suppression unit; 107 (12) "Licensee" means an individual or entity that possesses a license 108 to produce or manufacture hemp or hemp products in this state; 109 (13) "Manufacture" means the conversion of the hemp plant into a by-110 product by means of adding heat, solvents or any method of extraction 111 that modifies the original composition of the plant for the purpose of 112 creating a manufacturer hemp product for commercial or research 113 purposes; 114 (14) "Manufacturer" means a person in the state licensed by the 115 Commissioner of Consumer Protection to manufacture, handle, store 116 and market manufacturer hemp products pursuant to the provisions of 117 section 22-61m, as amended by this act, and any regulation adopted 118 pursuant to section 22-61m, as amended by this act; 119 (15) "Marijuana" has the same meaning as provided in section 21a-120 240; 121 (16) "Market" or "marketing" means promoting, distributing or 122 selling a hemp product within the state, in another state or outside of 123 the United States and includes efforts to advertise and gather 124 information about the needs or preferences of potential consumers or 125 suppliers; 126 (17) "On-site manager" means the individual designated by the 127 producer license applicant or producer responsible for on-site 128 management and operations of a licensed producer; 129 (18) "Pesticide" has the same meaning as "pesticide chemical" as 130 provided in section 21a-92; 131 (19) "Lot" means a contiguous area in a field, greenhouse or indoor 132 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 6 of 18 growing structure containing the same variety or strain of hemp 133 throughout the area; 134 (20) "Post-harvest sample" means a representative sample of the form 135 of hemp taken from the harvested hemp from a particular lot's harvest 136 that is collected in accordance with the procedures established by the 137 commissioner; 138 (21) "Pre-harvest sample" means a composite, representative portion 139 from plants in a hemp lot, that is collected in accordance with the 140 procedures established by the commissioner; 141 (22) "Produce" means to cultivate hemp or create any producer hemp 142 product; 143 (23) "State plan" means a state plan, as described in the federal act and 144 as authorized pursuant to this section; 145 (24) "THC" means delta-9-tetrahydrocannabinol; 146 (25) "Controlled Substances Act" or "CSA" means the Controlled 147 Substances Act as codified in 21 USC 801 et seq.; 148 (26) "Criminal history report" means the Federal Bureau of 149 Investigation's Identity History Summary; 150 (27) "Drug Enforcement Administration" or "DEA" means the United 151 States Drug Enforcement Administration; 152 (28) "Farm service agency" or "FSA" means an agency of the United 153 States Department of Agriculture; 154 (29) "Key participant" means a sole proprietor, a partner in 155 partnership or a person with executive managerial control in an entity, 156 including persons such as a chief executive officer, chief operating 157 officer and chief financial officer; 158 (30) "Manufacturer hemp product" means a commodity 159 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 7 of 18 manufactured from the hemp plant, for commercial or research 160 purposes, that is intended for human ingestion, inhalation, absorption 161 or other internal consumption, that contains a THC concentration of not 162 more than 0.3 per cent on a dry weight basis or per volume or weight of 163 such manufacturer hemp product; 164 (31) "Producer" means an individual or entity licensed by the 165 commissioner to produce and market producer hemp products 166 pursuant to the federal act, the state plan, the provisions of this section 167 and the regulations adopted pursuant to this section; 168 (32) "Producer hemp product" means any of the following produced 169 in this state: Raw hemp product, fiber-based hemp product or animal 170 hemp food product, and each of which contains a THC concentration of 171 not more than 0.3 per cent on a dry weight basis or per volume or weight 172 of such producer hemp product; 173 (33) "USDA" means the United States Department of Agriculture; 174 (34) "Entity" means a corporation, joint stock company, association, 175 limited partnership, limited liability partnership, limited liability 176 company, irrevocable trust, estate, charitable organization or other 177 similar organization, including any such organization participating in 178 the hemp production as a partner in a general partnership, a participant 179 in a joint venture or a participant in a similar organization; and 180 (35) "Homogenize" means to blend hemp into a mixture that has a 181 uniform quality and content throughout such mixture. 182 (b) The Commissioner of Agriculture shall establish and operate an 183 agricultural pilot program, as defined in 7 USC 5940, as amended from 184 time to time, for hemp research to enable the department, and its 185 licensees, to study methods of producing and marketing hemp. All 186 producer licensees licensed pursuant to this section shall be participants 187 in the state agricultural pilot program for hemp research. Until such 188 time as said commissioner adopts regulations, in accordance with the 189 provisions of chapter 54, the Department of Agriculture shall utilize 190 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 8 of 18 procedures and guidance policies that the commissioner deems to be 191 consistent with the provisions of 7 USC 5940, as amended from time to 192 time, provided such procedures and guidance policies shall, at a 193 minimum, require: (1) The commissioner to certify and register any site 194 used to grow hemp, (2) any person who produces hemp to produce 195 plants that meet the definition of hemp and verify such, (3) the 196 maintenance of records by any person who grows hemp and the 197 availability of inspection of such records by the commissioner, and (4) 198 verification of compliance with the definition of hemp by a laboratory, 199 at the expense of any licensee. The provisions of this section shall take 200 precedence over any such procedure or guidance policy. Participants in 201 the state agricultural pilot program for hemp research shall be licensed 202 in accordance with the provisions of this section. Such pilot program 203 shall operate until the earlier of the date of a fully approved state plan 204 under the federal act, as described in this section, or the date of repeal 205 of the federal law permitting the state's agricultural pilot program for 206 hemp research. 207 (c) (1) The commissioner shall prepare a state plan in accordance with 208 the federal act and 7 CFR 990.3, for approval by the Governor, in 209 consultation with the office of the Chief State's Attorney and the 210 Attorney General. The state plan, once approved by the Governor and 211 the Attorney General, shall be submitted by the commissioner to the 212 United States Secretary of Agriculture for his or her approval. The 213 commissioner shall have the authority to amend the state plan, in 214 consultation with the Governor, the Attorney General and the office of 215 the Chief State's Attorney, as necessary to comply with the federal act. 216 (2) The commissioner shall operate the state plan, which shall 217 include, at a minimum, the following requirements: 218 (A) The sampling of hemp shall comply, at a minimum, with 7 CFR 219 990.3(a)(2) and be performed by the commissioner, the commissioner's 220 designated agents, or an authorized sampling agent; 221 (B) The testing of hemp shall comply, at a minimum, with 7 CFR 222 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 9 of 18 990.3(a)(3); 223 (C) The control and disposal of noncompliant cannabis plants shall 224 comply with 7 CFR 990.27; 225 (D) The department shall comply with all recordkeeping and 226 reporting requirements in the federal act, and 7 CFR 990.1 to 7 CFR 227 990.71, inclusive; 228 (E) The department shall comply with enforcement procedures in 7 229 CFR 990.6; 230 (F) The department shall conduct annual inspections of, at a 231 minimum, a random sample of producers to verify that hemp is not 232 produced in violation of the federal act, the state plan and the provisions 233 of this section, and shall enforce any violation as provided for in the 234 federal act and as defined in 7 CFR 990.6; 235 (G) Producers shall report their required license, lot and hemp crop 236 acreage information to FSA, in accordance with the requirements in 7 237 CFR 990.7; and 238 (H) Producers shall report to the commissioner the total acreage of 239 hemp planted, harvested and, if applicable, disposed of, and such other 240 information as the commissioner may require. 241 (3) All sampling and testing of hemp shall be done using protocols 242 that are at least as statistically valid as the USDA's published protocols 243 for sampling and testing of hemp, which protocols shall be posted on 244 the department's Internet web site. During a scheduled sample 245 collection, the producer, or an authorized representative of the 246 producer, shall be present at the lot. A producer shall not harvest the 247 cannabis crop prior to the taking of samples. Samples of hemp plant 248 material from one lot shall not be commingled with hemp plant material 249 from other lots. Lots tested and not certified by a laboratory at or below 250 the acceptable hemp THC level shall be handled and disposed of in 251 accordance with the federal act, the provisions of this section and the 252 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 10 of 18 state plan, as applicable. 253 (4) The commissioner shall collect, maintain and provide to the 254 USDA, on a timely basis, and not less than once per month, license status 255 of each hemp producer, contact information for each hemp producer 256 licensed in the state, including lot legal descriptions and locations, and 257 any changes to such information. The commissioner shall also report to 258 the USDA, on a timely basis, and not less than once per month, all 259 required hemp test results and disposal information for all 260 nonconforming hemp plants and plant material. Such information shall 261 not include state and federal fingerprint-based records pursuant to 262 section 29-17a. 263 (d) The commissioner shall have the authority to enforce the federal 264 act, as amended from time to time, the state plan, this section and any 265 regulations adopted in accordance with the federal act and chapter 54 266 for hemp production in the state. The commissioner shall have the 267 authority to enforce the applicable standards for producer hemp 268 products. The commissioner may consult, collaborate and enter into 269 cooperative agreements with any federal or state agency, municipality 270 or political subdivision of the state concerning application of the 271 provisions of the federal act and the regulations adopted pursuant to the 272 federal act, as may be necessary to carry out the provisions of this 273 section. 274 (e) Any person who produces hemp shall: (1) Be licensed by the 275 commissioner; (2) comply with the federal act, the state plan, the 276 provisions of this section and any regulation adopted pursuant to this 277 section; and (3) transport hemp and hemp samples in a manner and with 278 such documentation as required by the commissioner. 279 (f) Any person who sells hemp products shall not be required to be 280 licensed provided such person only engages in: (1) The retail or 281 wholesale sale of hemp or hemp products in which no further 282 producing or manufacturing of the hemp products occurs and the hemp 283 products are acquired from a person authorized under the laws of this 284 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 11 of 18 state or another state, territory or possession of the United States or 285 another sovereign entity to possess and sell such hemp products; (2) the 286 acquisition of hemp or hemp products for the sole purpose of product 287 distribution for resale; or (3) the retail sale of hemp products that are 288 otherwise authorized under federal or state law. 289 (g) Any applicant for a license pursuant to this section shall meet each 290 of the following requirements, as applicable: 291 (1) Each applicant, whether an individual or an entity, shall submit 292 an application for a license that consists, at a minimum, of the following: 293 (A) The name, telephone number, electronic mail address, business 294 address and address of any individual who is the applicant, the full 295 name of any entity that is the applicant, including any applicable 296 principal business location and the full name, title and electronic mail 297 address of each key participant; (B) the name and address of each lot for 298 the hemp cultivation or producing location; (C) the geospatial location 299 of each lot by means of global positioning system coordinates and legal 300 description of each lot used for the hemp cultivation; (D) the acreage 301 size of each lot where the hemp will be cultivated; (E) written consent 302 allowing the commissioner to conduct both scheduled and random 303 inspections of and around the premises on which the hemp is to be 304 cultivated, harvested, stored and produced; and (F) any other 305 information as may be required by the commissioner; 306 (2) Each individual who is an applicant and each key participant of 307 any entity applying for a producer license, or renewal thereof, shall 308 submit to state and national fingerprint-based criminal history records 309 checks conducted in accordance with section 29-17a, at his or her own 310 expense. For the period commencing on the effective date of this section 311 and ending on December 31, 2021, the results of any such criminal 312 history records checks shall be provided by such applicants and key 313 participants to the commissioner for review; 314 (3) No individual, including any key participant of any entity, who 315 has been convicted of any felony, as prescribed in the federal act, shall 316 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 12 of 18 be eligible to obtain or hold a producer license, provided such restriction 317 shall not apply to any individual who lawfully grew hemp with a 318 license, registration or authorization under any state pilot program 319 authorized by section 7606 of the Agricultural Act of 2014 before 320 December 20, 2018. Any individual or entity that materially falsifies any 321 information in an application pursuant to this section shall be ineligible 322 to obtain a producer license; and 323 (4) Each individual or entity who is required by this section to obtain 324 a producer license shall pay for all costs of sampling, testing, retesting 325 and resampling any samples at a laboratory for the purpose of 326 determining the THC concentration level of any cannabis under their 327 control, or in their possession. Each individual or entity who is required 328 by this section to obtain a producer license shall pay for all costs of 329 disposal of all noncompliant cannabis plants under their control, or in 330 their possession. 331 (h) Any producer license issued by the commissioner shall expire on 332 the third following December thirty-first and may be renewed during 333 the preceding month of October. Such licenses shall not be transferable. 334 (i) The following fees shall apply for each producer license and 335 inspection: 336 (1) A nonrefundable license application fee of fifty dollars, provided 337 any constituent unit of higher education, state agency or department 338 shall be exempt from such application fee if such production is for 339 research purposes; 340 (2) A nonrefundable triennial producer license fee of four hundred 341 fifty dollars for up to one acre of planned hemp plantings and thirty 342 dollars per each additional acre of planned hemp plantings rounded to 343 the nearest acre, except no license fee charged shall exceed three 344 thousand dollars, provided any constituent unit of higher education, 345 state agency or department shall be exempt from such license fee if such 346 production is for research purposes; and 347 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 13 of 18 (3) In the event that resampling by the commissioner is required due 348 to a test result that shows a violation of any provision of this section or 349 any regulation adopted pursuant to this section, the licensee shall pay 350 an inspection fee of fifty dollars. Such fee shall be paid prior to the 351 inspection and collection of the sample to be used for resampling. 352 (j) After receipt and review of an application for producer licensure, 353 the commissioner may grant a triennial license upon a finding that the 354 applicant meets the applicable requirements. Each producer licensee 355 shall notify the commissioner of any changes to their application 356 information, not later than fifteen days after such change. While the 357 pilot program is in effect, the commissioner may grant a conditional 358 approval of a producer license, pending receipt of the criminal history 359 records check required by this section. The commissioner shall assign 360 each producer with a license or authorization identifier in a format 361 consistent with 7 CFR 990.3(a)(9). 362 (k) Whenever an inspection or investigation conducted by the 363 commissioner pursuant to this title reveals any violation of the state 364 plan, this section or any regulation adopted thereunder, the producer 365 license applicant or respondent, as applicable, shall be notified, in 366 writing, of such violation and any corrective action to be taken and the 367 time period within which such corrective action shall be taken. Any such 368 producer license applicant or respondent may request a hearing, 369 conducted in accordance with chapter 54, on any such notification. Any 370 notification issued pursuant to this section shall be made by certified 371 mail, return receipt requested to the producer license applicant or 372 respondent's last known address, by in-hand service by the 373 commissioner or designated agent of the commissioner, electronic mail 374 service with the consent of the recipient, or by service in accordance 375 with chapter 896. The commissioner shall report all producer violations 376 made with a culpable mental state greater than negligence to the United 377 States Attorney General and the State's Attorney for the judicial district 378 in which the producer violation occurred. 379 (l) Nothing in this section shall be construed to limit the 380 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 14 of 18 commissioner's authority to issue a cease and desist order pursuant to 381 section 22-4d, or an emergency order, in order to respond to a condition 382 that may present a public health hazard, or issue orders necessary to 383 effectuate the purposes of this section, including, but not limited to, 384 orders for the embargo, partial destruction, destruction and release of 385 hemp or hemp products. Any cease and desist order or an emergency 386 order shall become effective upon service of such order by the 387 commissioner. Following service of any such order, subsequent 388 proceedings shall proceed in accordance with the provisions of section 389 22-4d and the rules of practice for such agency. Any embargo, partial 390 destruction, destruction or release order issued pursuant to this section 391 shall be served by certified mail, return receipt requested to the 392 respondent's last known address, by in-hand service by the 393 commissioner or designated agent of the commissioner, or by service in 394 accordance with chapter 896. 395 (m) Following a hearing conducted in accordance with chapter 54, 396 the commissioner may impose an administrative civil penalty, not to 397 exceed two thousand five hundred dollars per violation, and suspend, 398 revoke or place conditions upon any producer licensee who violates the 399 provisions of this section or any regulation adopted pursuant to this 400 section. 401 (n) (1) Any individual who produces hemp in this state without 402 obtaining a license pursuant to this section, or who produces hemp in 403 this state after having a license suspended or revoked shall have 404 committed an infraction. 405 (2) Any entity that produces hemp in this state without obtaining a 406 license pursuant to this section, produces hemp in violation of this 407 section or produces hemp in this state after having a license suspended 408 or revoked may be fined not more than two thousand five hundred 409 dollars per violation, after a hearing conducted in accordance with 410 chapter 54. 411 (o) (1) Any negligent violation, as described in the federal act, of this 412 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 15 of 18 section or the state plan shall be subject to enforcement in accordance 413 with the federal act, and the state plan for negligent violations. 414 (2) For any negligent violation, a producer shall be required to correct 415 such negligent violation, by means of a corrective action plan approved 416 by the commissioner. Each corrective action plan shall include, at a 417 minimum, a reasonable completion deadline for correction of the 418 negligent violation, periodic reporting to the commissioner for at least 419 two years and compliance with the state plan. 420 (3) Any producer that negligently violates the state plan shall not, as 421 a result of such negligent violation, be referred by the commissioner for 422 any criminal enforcement action by the federal, state or local 423 government. 424 (4) Any producer that negligently violates the state plan three times 425 during any five-year period shall be ineligible to produce hemp for a 426 period of five years beginning on the date of the third violation. 427 (5) The commissioner shall conduct an inspection to determine if the 428 corrective action plan for a producer who commits any such negligent 429 violation was properly implemented. 430 (p) Any person aggrieved by an order issued pursuant to this section 431 may appeal to the commissioner in accordance with the provisions of 432 chapter 54. Such appeal shall be made in writing to the commissioner 433 and received not later than fifteen days after the date of the order. If no 434 appeal is made pursuant to this subsection the order shall be final. 435 (q) (1) All documents submitted under this section shall be subject to 436 disclosure in accordance with chapter 14, except: (A) Information 437 depicting or describing (i) the test results of any producer, (ii) the 438 location of any hemp growing, harvesting, processing or storage 439 location, or (iii) hemp producer location security schematics; and (B) the 440 results of any criminal history records check. 441 (2) Notwithstanding the provisions of subdivision (1) of this 442 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 16 of 18 subsection, all documents and records submitted or maintained 443 pursuant to this section shall be disclosed to any law enforcement 444 agency upon request of such law enforcement agency. 445 (r) The commissioner may inspect and shall have access to the 446 buildings, equipment, supplies, vehicles, records, real property and 447 other information that the commissioner deems necessary to carry out 448 the commissioner's duties pursuant to this section from any person 449 participating in producing, handling, storing marketing or researching 450 hemp. 451 [(s) Nothing in this section shall be construed to apply to any licensee 452 of palliative marijuana authorized pursuant to chapter 420f.] 453 [(t)] (s) All licensees pursuant to this section shall maintain records 454 required by the federal act, the state plan, this section and any regulation 455 adopted pursuant to this section. Each licensee shall make such records 456 available to the department immediately upon request of the 457 commissioner and in electronic format, if available. 458 [(u)] (t) The commissioner may adopt regulations, in accordance with 459 the provisions of chapter 54, to implement the provisions of this section 460 including, but not limited to, the labeling of producer hemp products. 461 [(v)] (u) Notwithstanding any provision of the general statutes: (1) 462 Marijuana does not include hemp or hemp products; (2) THC that does 463 not exceed 0.3 per cent by dry weight and that is found in hemp shall 464 not be considered to be THC that constitutes a controlled substance; (3) 465 hemp-derived cannabidiols, including CBD, shall not constitute 466 controlled substances or adulterants solely on the basis of containing 467 CBD; and (4) hemp products that contain one or more hemp-derived 468 cannabidiols, such as CBD, intended for ingestion shall be considered 469 foods, not controlled substances or adulterated products solely on the 470 basis of the containing hemp-derived cannabidiols. 471 [(w)] (v) Whenever the commissioner believes or has reasonable 472 cause to believe that the actions of a licensee or any employee of a 473 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 17 of 18 producer licensee are in violation of the federal act, the state plan, or any 474 state law concerning the growing, cultivation, handling, transporting or 475 possession of marijuana, the commissioner shall notify the Department 476 of Emergency Services and Public Protection and the State Police. 477 Sec. 3. Subsection (g) of section 22-61m of the general statutes is 478 repealed and the following is substituted in lieu thereof (Effective July 1, 479 2021): 480 (g) Nothing in this [section shall be construed to apply to any licensee 481 of palliative marijuana authorized pursuant to chapter 420f] chapter or 482 any regulations adopted pursuant to this chapter shall be construed to 483 apply to persons licensed pursuant to section 21a-408i nor to require 484 persons licensed pursuant to said section to obtain a license pursuant to 485 this chapter. 486 Sec. 4. Subsection (k) of section 22-61m of the general statutes is 487 repealed and the following is substituted in lieu thereof (Effective July 1, 488 2021): 489 (k) Any hemp intended to be manufactured into a manufacturer 490 hemp product shall be tested by an independent testing laboratory 491 located in this state. A manufacturer licensee shall make available 492 samples, in an amount and type determined by the Commissioner of 493 Consumer Protection, of hemp for an independent testing laboratory 494 employee to select random samples. The independent testing laboratory 495 shall test each sample for microbiological contaminants, mycotoxins, 496 heavy metals and pesticide chemical residue, and for purposes of 497 conducting an active ingredient analysis, if applicable, as determined by 498 the Commissioner of Consumer Protection. 499 Sec. 5. (NEW) (Effective July 1, 2021) (a) Marijuana producers, licensed 500 under any provision of the general statutes, shall manufacture, market, 501 produce or store hemp and hemp products, as such terms are defined in 502 section 22-61l of the general statutes, as amended by this act, in 503 accordance with the provisions of chapter 424 of the general statutes and 504 Substitute Bill No. 6099 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2021HB-06099- R02-HB.docx } 18 of 18 any regulations adopted under said chapter, except that marijuana 505 producers may obtain hemp and hemp products from a person 506 authorized under the laws of this state or another state, territory or 507 possession of the United States or another sovereign entity to possess 508 and sell such hemp and hemp products. 509 (b) Hemp or hemp products purchased by marijuana producers from 510 third parties shall be tracked as a separate batch throughout the 511 manufacturing process in order to document the disposition of such 512 hemp or hemp products. Once hemp or hemp products are received by 513 a marijuana producer, such hemp or hemp products shall be deemed 514 marijuana and shall comply with the requirements for marijuana 515 contained in the applicable provisions of the general statutes and any 516 regulations adopted under such provisions. Marijuana producers shall 517 retain a copy of the certificate of analysis for hemp or hemp products 518 purchased and invoice and transport documents that evidence the 519 quantity purchased and date received. 520 (c) No hemp or hemp products shall be sold or distributed within a 521 dispensary facility, as defined in section 21a-408-1 of the regulations of 522 Connecticut state agencies. 523 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 GL Joint Favorable Subst. ENV Joint Favorable