Connecticut 2021 Regular Session

Connecticut House Bill HB06099 Compare Versions

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7	7		General Assembly Substitute Bill No. 6099
8	8		January Session, 2021
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14	14		AN ACT CONCERNING AN TITRUST ISSUES AND THE PALLIATIVE
15	15		USE OF MARIJUANA AND THE SALE OF HEMP AN D HEMP
16	16		PRODUCTS.
17	17		Be it enacted by the Senate and House of Representatives in General
18	18		Assembly convened:
19	19
20	20		Section 1. (NEW) (Effective July 1, 2021) (a) For purposes of this 1
21	21		section: 2
22	22		(1) "Material change" means: (A) The addition of a dispensary facility 3
23	23		backer or producer backer, (B) a change in the ownership interest of an 4
24	24		existing dispensary facility backer or producer backer, (C) the merger, 5
25	25		consolidation or other affiliation of a medical marijuana business with 6
26	26		another person, (D) the acquisition of all or part of a medical marijuana 7
27	27		business by another person, and (E) the transfer of assets or security 8
28	28		interests from a medical marijuana business to another person; 9
29	29		(2) "Medical marijuana business" means a medical marijuana 10
30	30		dispensary facility or production facility, licensed pursuant to chapter 11
31	31		420f of the general statutes and the regulations adopted under said 12
32	32		chapter; 13
33	33		(3) "Person" means an individual, firm, partnership, corporation, 14
34	34		company, association, trust or other business or tribal entity; and 15 Substitute Bill No. 6099
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41	41		(4) "Transfer" means to sell, transfer, lease, exchange, option, convey, 16
42	42		give or otherwise dispose of or transfer control over, including, but not 17
43	43		limited to, transfer by way of merger or joint venture not in the ordinary 18
44	44		course of business. 19
45	45		(b) No person shall, directly or indirectly, enter into a transaction that 20
46	46		results in a material change to a medical marijuana business, unless all 21
47	47		persons involved in the transaction file a written notification with the 22
48	48		Attorney General pursuant to subsection (c) of this section and the 23
49	49		waiting period described in subsection (d) of this section has expired. 24
50	50		(c) The written notice required under subsection (b) of this section 25
51	51		shall be in such form and contain such documentary material and 26
52	52		information relevant to the proposed transaction as the Attorney 27
53	53		General deems necessary and appropriate to enable the Attorney 28
54	54		General to determine whether such transaction, if consummated, would 29
55	55		violate antitrust laws. 30
56	56		(d) The waiting period required under subsection (b) of this section 31
57	57		shall begin on the date of the receipt by the office of the Attorney 32
58	58		General of the completed notification required under subsection (c) of 33
59	59		this section from all parties to the transaction and shall end on the 34
60	60		thirtieth day after the date of such receipt, unless such time is extended 35
61	61		pursuant to subsection (f) of this section. 36
62	62		(e) The Attorney General may, in individual cases, terminate the 37
63	63		waiting period specified in subsection (d) of this section and allow any 38
64	64		person to proceed with a transaction. 39
65	65		(f) The Attorney General may, prior to the expiration of the thirty-day 40
66	66		waiting period, require, pursuant to a subpoena or voluntarily, the 41
67	67		submission of additional information or documentary material relevant 42
68	68		to the proposed transaction from a person required to file notification 43
69	69		with respect to such transaction under subsection (b) of this section. 44
70	70		Upon request for additional information under this subsection, the 45
71	71		waiting period shall be extended until thirty days after the parties have 46 Substitute Bill No. 6099
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78	78		substantially complied, as determined solely by the Attorney General, 47
79	79		with such request for additional information. 48
80	80		(g) Any information or documentary material filed with the Attorney 49
81	81		General pursuant to this section shall not be disclosed pursuant to 50
82	82		subsection (c) of section 35-42 of the general statutes and, shall be 51
83	83		exempt from disclosure under the Freedom of Information Act, as 52
84	84		defined in section 1-200 of the general statutes, and no such information 53
85	85		or documentary material may be made public, except as may be relevant 54
86	86		to any administrative or judicial action or proceeding. Such information 55
87	87		or documentary material shall be returned to the person furnishing such 56
88	88		information or documentary material upon the termination of the 57
89	89		Attorney General's review or final determination of any action or 58
90	90		proceeding commenced thereunder. 59
91	91		Sec. 2. Section 22-61l of the general statutes is repealed and the 60
92	92		following is substituted in lieu thereof (Effective July 1, 2021): 61
93	93		(a) For the purpose of this section and section 22-61m, as amended by 62
94	94		this act, the following terms have the same meaning as provided in 7 63
95	95		CFR 990.1, as amended from time to time: "Acceptable hemp THC level", 64
96	96		"Agricultural marketing service", "Cannabis", "Conviction", "Corrective 65
97	97		action plan", "Culpable mental state greater than negligence", 66
98	98		"Decarboxylated", "Decarboxylation", "Dry weight basis", "Gas 67
99	99		chromatography", "Geospatial location", "Handle", "High-performance 68
100	100		liquid chromatography", "Information sharing system", "Measurement 69
101	101		of uncertainty", "Negligence", "Phytocannabinoid", 70
102	102		"Postdecarboxylation" and "Reverse distributor". In addition, for the 71
103	103		purpose of this section and section 22-61m, as amended by this act: 72
104	104		(1) "Cannabidiol" or "CBD" means the nonpsychotropic compound by 73
105	105		the same name; 74
106	106		(2) "Certificate of analysis" means a certificate from a laboratory 75
107	107		describing the results of the laboratory's testing of a sample; 76
108	108		(3) "Commissioner" means the Commissioner of Agriculture, or the 77 Substitute Bill No. 6099
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115	115		commissioner's designated agent; 78
116	116		(4) "Cultivate" means to plant, grow, harvest, handle and store a plant 79
117	117		or crop; 80
118	118		(5) "Federal act" means the United States Agricultural Marketing Act 81
119	119		of 1946, 7 USC 1639o et seq., as amended from time to time; 82
120	120		(6) "Department" means the Department of Agriculture; 83
121	121		(7) "Hemp" has the same meaning as provided in the federal act; 84
122	122		(8) "Hemp products" means all manufacturer hemp products and 85
123	123		producer hemp products; 86
124	124		(9) "Independent testing laboratory" means a facility: 87
125	125		(A) For which no person who has any direct or indirect financial or 88
126	126		managerial interest in the laboratory and also has any direct or indirect 89
127	127		interest in a facility that: 90
128	128		(i) Produces, distributes, manufactures or sells hemp or hemp 91
129	129		products, or marijuana in any state or territory of the United States; or 92
130	130		(ii) Cultivates, processes, distributes, dispenses or sells marijuana; 93
131	131		and 94
132	132		(B) That is accredited as a laboratory in compliance with section 21a-95
133	133		408-59 of the regulations of Connecticut state agencies; 96
134	134		(10) "Laboratory" means a laboratory that meets the requirements of 97
135	135		7 CFR 990.3 and that is accredited as a testing laboratory to International 98
136	136		Organization for Standardization (ISO) 17025 by a third-party 99
137	137		accrediting body such as the American Association for Laboratory 100
138	138		Accreditation or the Assured Calibration and Laboratory Accreditation 101
139	139		Select Services; 102
140	140		(11) "Law enforcement agency" means the Connecticut State Police, 103 Substitute Bill No. 6099
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147	147		the United States Drug Enforcement Administration, the Department of 104
148	148		Agriculture, the Department of Consumer Protection Drug Control 105
149	149		Division or any other federal, state or local law enforcement agency or 106
150	150		drug suppression unit; 107
151	151		(12) "Licensee" means an individual or entity that possesses a license 108
152	152		to produce or manufacture hemp or hemp products in this state; 109
153	153		(13) "Manufacture" means the conversion of the hemp plant into a by-110
154	154		product by means of adding heat, solvents or any method of extraction 111
155	155		that modifies the original composition of the plant for the purpose of 112
156	156		creating a manufacturer hemp product for commercial or research 113
157	157		purposes; 114
158	158		(14) "Manufacturer" means a person in the state licensed by the 115
159	159		Commissioner of Consumer Protection to manufacture, handle, store 116
160	160		and market manufacturer hemp products pursuant to the provisions of 117
161	161		section 22-61m, as amended by this act, and any regulation adopted 118
162	162		pursuant to section 22-61m, as amended by this act; 119
163	163		(15) "Marijuana" has the same meaning as provided in section 21a-120
164	164		240; 121
165	165		(16) "Market" or "marketing" means promoting, distributing or 122
166	166		selling a hemp product within the state, in another state or outside of 123
167	167		the United States and includes efforts to advertise and gather 124
168	168		information about the needs or preferences of potential consumers or 125
169	169		suppliers; 126
170	170		(17) "On-site manager" means the individual designated by the 127
171	171		producer license applicant or producer responsible for on-site 128
172	172		management and operations of a licensed producer; 129
173	173		(18) "Pesticide" has the same meaning as "pesticide chemical" as 130
174	174		provided in section 21a-92; 131
175	175		(19) "Lot" means a contiguous area in a field, greenhouse or indoor 132 Substitute Bill No. 6099
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182	182		growing structure containing the same variety or strain of hemp 133
183	183		throughout the area; 134
184	184		(20) "Post-harvest sample" means a representative sample of the form 135
185	185		of hemp taken from the harvested hemp from a particular lot's harvest 136
186	186		that is collected in accordance with the procedures established by the 137
187	187		commissioner; 138
188	188		(21) "Pre-harvest sample" means a composite, representative portion 139
189	189		from plants in a hemp lot, that is collected in accordance with the 140
190	190		procedures established by the commissioner; 141
191	191		(22) "Produce" means to cultivate hemp or create any producer hemp 142
192	192		product; 143
193	193		(23) "State plan" means a state plan, as described in the federal act and 144
194	194		as authorized pursuant to this section; 145
195	195		(24) "THC" means delta-9-tetrahydrocannabinol; 146
196	196		(25) "Controlled Substances Act" or "CSA" means the Controlled 147
197	197		Substances Act as codified in 21 USC 801 et seq.; 148
198	198		(26) "Criminal history report" means the Federal Bureau of 149
199	199		Investigation's Identity History Summary; 150
200	200		(27) "Drug Enforcement Administration" or "DEA" means the United 151
201	201		States Drug Enforcement Administration; 152
202	202		(28) "Farm service agency" or "FSA" means an agency of the United 153
203	203		States Department of Agriculture; 154
204	204		(29) "Key participant" means a sole proprietor, a partner in 155
205	205		partnership or a person with executive managerial control in an entity, 156
206	206		including persons such as a chief executive officer, chief operating 157
207	207		officer and chief financial officer; 158
208	208		(30) "Manufacturer hemp product" means a commodity 159 Substitute Bill No. 6099
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215	215		manufactured from the hemp plant, for commercial or research 160
216	216		purposes, that is intended for human ingestion, inhalation, absorption 161
217	217		or other internal consumption, that contains a THC concentration of not 162
218	218		more than 0.3 per cent on a dry weight basis or per volume or weight of 163
219	219		such manufacturer hemp product; 164
220	220		(31) "Producer" means an individual or entity licensed by the 165
221	221		commissioner to produce and market producer hemp products 166
222	222		pursuant to the federal act, the state plan, the provisions of this section 167
223	223		and the regulations adopted pursuant to this section; 168
224	224		(32) "Producer hemp product" means any of the following produced 169
225	225		in this state: Raw hemp product, fiber-based hemp product or animal 170
226	226		hemp food product, and each of which contains a THC concentration of 171
227	227		not more than 0.3 per cent on a dry weight basis or per volume or weight 172
228	228		of such producer hemp product; 173
229	229		(33) "USDA" means the United States Department of Agriculture; 174
230	230		(34) "Entity" means a corporation, joint stock company, association, 175
231	231		limited partnership, limited liability partnership, limited liability 176
232	232		company, irrevocable trust, estate, charitable organization or other 177
233	233		similar organization, including any such organization participating in 178
234	234		the hemp production as a partner in a general partnership, a participant 179
235	235		in a joint venture or a participant in a similar organization; and 180
236	236		(35) "Homogenize" means to blend hemp into a mixture that has a 181
237	237		uniform quality and content throughout such mixture. 182
238	238		(b) The Commissioner of Agriculture shall establish and operate an 183
239	239		agricultural pilot program, as defined in 7 USC 5940, as amended from 184
240	240		time to time, for hemp research to enable the department, and its 185
241	241		licensees, to study methods of producing and marketing hemp. All 186
242	242		producer licensees licensed pursuant to this section shall be participants 187
243	243		in the state agricultural pilot program for hemp research. Until such 188
244	244		time as said commissioner adopts regulations, in accordance with the 189
245	245		provisions of chapter 54, the Department of Agriculture shall utilize 190 Substitute Bill No. 6099
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252	252		procedures and guidance policies that the commissioner deems to be 191
253	253		consistent with the provisions of 7 USC 5940, as amended from time to 192
254	254		time, provided such procedures and guidance policies shall, at a 193
255	255		minimum, require: (1) The commissioner to certify and register any site 194
256	256		used to grow hemp, (2) any person who produces hemp to produce 195
257	257		plants that meet the definition of hemp and verify such, (3) the 196
258	258		maintenance of records by any person who grows hemp and the 197
259	259		availability of inspection of such records by the commissioner, and (4) 198
260	260		verification of compliance with the definition of hemp by a laboratory, 199
261	261		at the expense of any licensee. The provisions of this section shall take 200
262	262		precedence over any such procedure or guidance policy. Participants in 201
263	263		the state agricultural pilot program for hemp research shall be licensed 202
264	264		in accordance with the provisions of this section. Such pilot program 203
265	265		shall operate until the earlier of the date of a fully approved state plan 204
266	266		under the federal act, as described in this section, or the date of repeal 205
267	267		of the federal law permitting the state's agricultural pilot program for 206
268	268		hemp research. 207
269	269		(c) (1) The commissioner shall prepare a state plan in accordance with 208
270	270		the federal act and 7 CFR 990.3, for approval by the Governor, in 209
271	271		consultation with the office of the Chief State's Attorney and the 210
272	272		Attorney General. The state plan, once approved by the Governor and 211
273	273		the Attorney General, shall be submitted by the commissioner to the 212
274	274		United States Secretary of Agriculture for his or her approval. The 213
275	275		commissioner shall have the authority to amend the state plan, in 214
276	276		consultation with the Governor, the Attorney General and the office of 215
277	277		the Chief State's Attorney, as necessary to comply with the federal act. 216
278	278		(2) The commissioner shall operate the state plan, which shall 217
279	279		include, at a minimum, the following requirements: 218
280	280		(A) The sampling of hemp shall comply, at a minimum, with 7 CFR 219
281	281		990.3(a)(2) and be performed by the commissioner, the commissioner's 220
282	282		designated agents, or an authorized sampling agent; 221
283	283		(B) The testing of hemp shall comply, at a minimum, with 7 CFR 222 Substitute Bill No. 6099
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290	290		990.3(a)(3); 223
291	291		(C) The control and disposal of noncompliant cannabis plants shall 224
292	292		comply with 7 CFR 990.27; 225
293	293		(D) The department shall comply with all recordkeeping and 226
294	294		reporting requirements in the federal act, and 7 CFR 990.1 to 7 CFR 227
295	295		990.71, inclusive; 228
296	296		(E) The department shall comply with enforcement procedures in 7 229
297	297		CFR 990.6; 230
298	298		(F) The department shall conduct annual inspections of, at a 231
299	299		minimum, a random sample of producers to verify that hemp is not 232
300	300		produced in violation of the federal act, the state plan and the provisions 233
301	301		of this section, and shall enforce any violation as provided for in the 234
302	302		federal act and as defined in 7 CFR 990.6; 235
303	303		(G) Producers shall report their required license, lot and hemp crop 236
304	304		acreage information to FSA, in accordance with the requirements in 7 237
305	305		CFR 990.7; and 238
306	306		(H) Producers shall report to the commissioner the total acreage of 239
307	307		hemp planted, harvested and, if applicable, disposed of, and such other 240
308	308		information as the commissioner may require. 241
309	309		(3) All sampling and testing of hemp shall be done using protocols 242
310	310		that are at least as statistically valid as the USDA's published protocols 243
311	311		for sampling and testing of hemp, which protocols shall be posted on 244
312	312		the department's Internet web site. During a scheduled sample 245
313	313		collection, the producer, or an authorized representative of the 246
314	314		producer, shall be present at the lot. A producer shall not harvest the 247
315	315		cannabis crop prior to the taking of samples. Samples of hemp plant 248
316	316		material from one lot shall not be commingled with hemp plant material 249
317	317		from other lots. Lots tested and not certified by a laboratory at or below 250
318	318		the acceptable hemp THC level shall be handled and disposed of in 251
319	319		accordance with the federal act, the provisions of this section and the 252 Substitute Bill No. 6099
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326	326		state plan, as applicable. 253
327	327		(4) The commissioner shall collect, maintain and provide to the 254
328	328		USDA, on a timely basis, and not less than once per month, license status 255
329	329		of each hemp producer, contact information for each hemp producer 256
330	330		licensed in the state, including lot legal descriptions and locations, and 257
331	331		any changes to such information. The commissioner shall also report to 258
332	332		the USDA, on a timely basis, and not less than once per month, all 259
333	333		required hemp test results and disposal information for all 260
334	334		nonconforming hemp plants and plant material. Such information shall 261
335	335		not include state and federal fingerprint-based records pursuant to 262
336	336		section 29-17a. 263
337	337		(d) The commissioner shall have the authority to enforce the federal 264
338	338		act, as amended from time to time, the state plan, this section and any 265
339	339		regulations adopted in accordance with the federal act and chapter 54 266
340	340		for hemp production in the state. The commissioner shall have the 267
341	341		authority to enforce the applicable standards for producer hemp 268
342	342		products. The commissioner may consult, collaborate and enter into 269
343	343		cooperative agreements with any federal or state agency, municipality 270
344	344		or political subdivision of the state concerning application of the 271
345	345		provisions of the federal act and the regulations adopted pursuant to the 272
346	346		federal act, as may be necessary to carry out the provisions of this 273
347	347		section. 274
348	348		(e) Any person who produces hemp shall: (1) Be licensed by the 275
349	349		commissioner; (2) comply with the federal act, the state plan, the 276
350	350		provisions of this section and any regulation adopted pursuant to this 277
351	351		section; and (3) transport hemp and hemp samples in a manner and with 278
352	352		such documentation as required by the commissioner. 279
353	353		(f) Any person who sells hemp products shall not be required to be 280
354	354		licensed provided such person only engages in: (1) The retail or 281
355	355		wholesale sale of hemp or hemp products in which no further 282
356	356		producing or manufacturing of the hemp products occurs and the hemp 283
357	357		products are acquired from a person authorized under the laws of this 284 Substitute Bill No. 6099
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364	364		state or another state, territory or possession of the United States or 285
365	365		another sovereign entity to possess and sell such hemp products; (2) the 286
366	366		acquisition of hemp or hemp products for the sole purpose of product 287
367	367		distribution for resale; or (3) the retail sale of hemp products that are 288
368	368		otherwise authorized under federal or state law. 289
369	369		(g) Any applicant for a license pursuant to this section shall meet each 290
370	370		of the following requirements, as applicable: 291
371	371		(1) Each applicant, whether an individual or an entity, shall submit 292
372	372		an application for a license that consists, at a minimum, of the following: 293
373	373		(A) The name, telephone number, electronic mail address, business 294
374	374		address and address of any individual who is the applicant, the full 295
375	375		name of any entity that is the applicant, including any applicable 296
376	376		principal business location and the full name, title and electronic mail 297
377	377		address of each key participant; (B) the name and address of each lot for 298
378	378		the hemp cultivation or producing location; (C) the geospatial location 299
379	379		of each lot by means of global positioning system coordinates and legal 300
380	380		description of each lot used for the hemp cultivation; (D) the acreage 301
381	381		size of each lot where the hemp will be cultivated; (E) written consent 302
382	382		allowing the commissioner to conduct both scheduled and random 303
383	383		inspections of and around the premises on which the hemp is to be 304
384	384		cultivated, harvested, stored and produced; and (F) any other 305
385	385		information as may be required by the commissioner; 306
386	386		(2) Each individual who is an applicant and each key participant of 307
387	387		any entity applying for a producer license, or renewal thereof, shall 308
388	388		submit to state and national fingerprint-based criminal history records 309
389	389		checks conducted in accordance with section 29-17a, at his or her own 310
390	390		expense. For the period commencing on the effective date of this section 311
391	391		and ending on December 31, 2021, the results of any such criminal 312
392	392		history records checks shall be provided by such applicants and key 313
393	393		participants to the commissioner for review; 314
394	394		(3) No individual, including any key participant of any entity, who 315
395	395		has been convicted of any felony, as prescribed in the federal act, shall 316 Substitute Bill No. 6099
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402	402		be eligible to obtain or hold a producer license, provided such restriction 317
403	403		shall not apply to any individual who lawfully grew hemp with a 318
404	404		license, registration or authorization under any state pilot program 319
405	405		authorized by section 7606 of the Agricultural Act of 2014 before 320
406	406		December 20, 2018. Any individual or entity that materially falsifies any 321
407	407		information in an application pursuant to this section shall be ineligible 322
408	408		to obtain a producer license; and 323
409	409		(4) Each individual or entity who is required by this section to obtain 324
410	410		a producer license shall pay for all costs of sampling, testing, retesting 325
411	411		and resampling any samples at a laboratory for the purpose of 326
412	412		determining the THC concentration level of any cannabis under their 327
413	413		control, or in their possession. Each individual or entity who is required 328
414	414		by this section to obtain a producer license shall pay for all costs of 329
415	415		disposal of all noncompliant cannabis plants under their control, or in 330
416	416		their possession. 331
417	417		(h) Any producer license issued by the commissioner shall expire on 332
418	418		the third following December thirty-first and may be renewed during 333
419	419		the preceding month of October. Such licenses shall not be transferable. 334
420	420		(i) The following fees shall apply for each producer license and 335
421	421		inspection: 336
422	422		(1) A nonrefundable license application fee of fifty dollars, provided 337
423	423		any constituent unit of higher education, state agency or department 338
424	424		shall be exempt from such application fee if such production is for 339
425	425		research purposes; 340
426	426		(2) A nonrefundable triennial producer license fee of four hundred 341
427	427		fifty dollars for up to one acre of planned hemp plantings and thirty 342
428	428		dollars per each additional acre of planned hemp plantings rounded to 343
429	429		the nearest acre, except no license fee charged shall exceed three 344
430	430		thousand dollars, provided any constituent unit of higher education, 345
431	431		state agency or department shall be exempt from such license fee if such 346
432	432		production is for research purposes; and 347 Substitute Bill No. 6099
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439	439		(3) In the event that resampling by the commissioner is required due 348
440	440		to a test result that shows a violation of any provision of this section or 349
441	441		any regulation adopted pursuant to this section, the licensee shall pay 350
442	442		an inspection fee of fifty dollars. Such fee shall be paid prior to the 351
443	443		inspection and collection of the sample to be used for resampling. 352
444	444		(j) After receipt and review of an application for producer licensure, 353
445	445		the commissioner may grant a triennial license upon a finding that the 354
446	446		applicant meets the applicable requirements. Each producer licensee 355
447	447		shall notify the commissioner of any changes to their application 356
448	448		information, not later than fifteen days after such change. While the 357
449	449		pilot program is in effect, the commissioner may grant a conditional 358
450	450		approval of a producer license, pending receipt of the criminal history 359
451	451		records check required by this section. The commissioner shall assign 360
452	452		each producer with a license or authorization identifier in a format 361
453	453		consistent with 7 CFR 990.3(a)(9). 362
454	454		(k) Whenever an inspection or investigation conducted by the 363
455	455		commissioner pursuant to this title reveals any violation of the state 364
456	456		plan, this section or any regulation adopted thereunder, the producer 365
457	457		license applicant or respondent, as applicable, shall be notified, in 366
458	458		writing, of such violation and any corrective action to be taken and the 367
459	459		time period within which such corrective action shall be taken. Any such 368
460	460		producer license applicant or respondent may request a hearing, 369
461	461		conducted in accordance with chapter 54, on any such notification. Any 370
462	462		notification issued pursuant to this section shall be made by certified 371
463	463		mail, return receipt requested to the producer license applicant or 372
464	464		respondent's last known address, by in-hand service by the 373
465	465		commissioner or designated agent of the commissioner, electronic mail 374
466	466		service with the consent of the recipient, or by service in accordance 375
467	467		with chapter 896. The commissioner shall report all producer violations 376
468	468		made with a culpable mental state greater than negligence to the United 377
469	469		States Attorney General and the State's Attorney for the judicial district 378
470	470		in which the producer violation occurred. 379
471	471		(l) Nothing in this section shall be construed to limit the 380 Substitute Bill No. 6099
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477	477
478	478		commissioner's authority to issue a cease and desist order pursuant to 381
479	479		section 22-4d, or an emergency order, in order to respond to a condition 382
480	480		that may present a public health hazard, or issue orders necessary to 383
481	481		effectuate the purposes of this section, including, but not limited to, 384
482	482		orders for the embargo, partial destruction, destruction and release of 385
483	483		hemp or hemp products. Any cease and desist order or an emergency 386
484	484		order shall become effective upon service of such order by the 387
485	485		commissioner. Following service of any such order, subsequent 388
486	486		proceedings shall proceed in accordance with the provisions of section 389
487	487		22-4d and the rules of practice for such agency. Any embargo, partial 390
488	488		destruction, destruction or release order issued pursuant to this section 391
489	489		shall be served by certified mail, return receipt requested to the 392
490	490		respondent's last known address, by in-hand service by the 393
491	491		commissioner or designated agent of the commissioner, or by service in 394
492	492		accordance with chapter 896. 395
493	493		(m) Following a hearing conducted in accordance with chapter 54, 396
494	494		the commissioner may impose an administrative civil penalty, not to 397
495	495		exceed two thousand five hundred dollars per violation, and suspend, 398
496	496		revoke or place conditions upon any producer licensee who violates the 399
497	497		provisions of this section or any regulation adopted pursuant to this 400
498	498		section. 401
499	499		(n) (1) Any individual who produces hemp in this state without 402
500	500		obtaining a license pursuant to this section, or who produces hemp in 403
501	501		this state after having a license suspended or revoked shall have 404
502	502		committed an infraction. 405
503	503		(2) Any entity that produces hemp in this state without obtaining a 406
504	504		license pursuant to this section, produces hemp in violation of this 407
505	505		section or produces hemp in this state after having a license suspended 408
506	506		or revoked may be fined not more than two thousand five hundred 409
507	507		dollars per violation, after a hearing conducted in accordance with 410
508	508		chapter 54. 411
509	509		(o) (1) Any negligent violation, as described in the federal act, of this 412 Substitute Bill No. 6099
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515	515
516	516		section or the state plan shall be subject to enforcement in accordance 413
517	517		with the federal act, and the state plan for negligent violations. 414
518	518		(2) For any negligent violation, a producer shall be required to correct 415
519	519		such negligent violation, by means of a corrective action plan approved 416
520	520		by the commissioner. Each corrective action plan shall include, at a 417
521	521		minimum, a reasonable completion deadline for correction of the 418
522	522		negligent violation, periodic reporting to the commissioner for at least 419
523	523		two years and compliance with the state plan. 420
524	524		(3) Any producer that negligently violates the state plan shall not, as 421
525	525		a result of such negligent violation, be referred by the commissioner for 422
526	526		any criminal enforcement action by the federal, state or local 423
527	527		government. 424
528	528		(4) Any producer that negligently violates the state plan three times 425
529	529		during any five-year period shall be ineligible to produce hemp for a 426
530	530		period of five years beginning on the date of the third violation. 427
531	531		(5) The commissioner shall conduct an inspection to determine if the 428
532	532		corrective action plan for a producer who commits any such negligent 429
533	533		violation was properly implemented. 430
534	534		(p) Any person aggrieved by an order issued pursuant to this section 431
535	535		may appeal to the commissioner in accordance with the provisions of 432
536	536		chapter 54. Such appeal shall be made in writing to the commissioner 433
537	537		and received not later than fifteen days after the date of the order. If no 434
538	538		appeal is made pursuant to this subsection the order shall be final. 435
539	539		(q) (1) All documents submitted under this section shall be subject to 436
540	540		disclosure in accordance with chapter 14, except: (A) Information 437
541	541		depicting or describing (i) the test results of any producer, (ii) the 438
542	542		location of any hemp growing, harvesting, processing or storage 439
543	543		location, or (iii) hemp producer location security schematics; and (B) the 440
544	544		results of any criminal history records check. 441
545	545		(2) Notwithstanding the provisions of subdivision (1) of this 442 Substitute Bill No. 6099
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551	551
552	552		subsection, all documents and records submitted or maintained 443
553	553		pursuant to this section shall be disclosed to any law enforcement 444
554	554		agency upon request of such law enforcement agency. 445
555	555		(r) The commissioner may inspect and shall have access to the 446
556	556		buildings, equipment, supplies, vehicles, records, real property and 447
557	557		other information that the commissioner deems necessary to carry out 448
558	558		the commissioner's duties pursuant to this section from any person 449
559	559		participating in producing, handling, storing marketing or researching 450
560	560		hemp. 451
561	561		[(s) Nothing in this section shall be construed to apply to any licensee 452
562	562		of palliative marijuana authorized pursuant to chapter 420f.] 453
563	563		[(t)] (s) All licensees pursuant to this section shall maintain records 454
564	564		required by the federal act, the state plan, this section and any regulation 455
565	565		adopted pursuant to this section. Each licensee shall make such records 456
566	566		available to the department immediately upon request of the 457
567	567		commissioner and in electronic format, if available. 458
568	568		[(u)] (t) The commissioner may adopt regulations, in accordance with 459
569	569		the provisions of chapter 54, to implement the provisions of this section 460
570	570		including, but not limited to, the labeling of producer hemp products. 461
571	571		[(v)] (u) Notwithstanding any provision of the general statutes: (1) 462
572	572		Marijuana does not include hemp or hemp products; (2) THC that does 463
573	573		not exceed 0.3 per cent by dry weight and that is found in hemp shall 464
574	574		not be considered to be THC that constitutes a controlled substance; (3) 465
575	575		hemp-derived cannabidiols, including CBD, shall not constitute 466
576	576		controlled substances or adulterants solely on the basis of containing 467
577	577		CBD; and (4) hemp products that contain one or more hemp-derived 468
578	578		cannabidiols, such as CBD, intended for ingestion shall be considered 469
579	579		foods, not controlled substances or adulterated products solely on the 470
580	580		basis of the containing hemp-derived cannabidiols. 471
581	581		[(w)] (v) Whenever the commissioner believes or has reasonable 472
582	582		cause to believe that the actions of a licensee or any employee of a 473 Substitute Bill No. 6099
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588	588
589	589		producer licensee are in violation of the federal act, the state plan, or any 474
590	590		state law concerning the growing, cultivation, handling, transporting or 475
591	591		possession of marijuana, the commissioner shall notify the Department 476
592	592		of Emergency Services and Public Protection and the State Police. 477
593	593		Sec. 3. Subsection (g) of section 22-61m of the general statutes is 478
594	594		repealed and the following is substituted in lieu thereof (Effective July 1, 479
595	595		2021): 480
596	596		(g) Nothing in this [section shall be construed to apply to any licensee 481
597	597		of palliative marijuana authorized pursuant to chapter 420f] chapter or 482
598	598		any regulations adopted pursuant to this chapter shall be construed to 483
599	599		apply to persons licensed pursuant to section 21a-408i nor to require 484
600	600		persons licensed pursuant to said section to obtain a license pursuant to 485
601	601		this chapter. 486
602	602		Sec. 4. Subsection (k) of section 22-61m of the general statutes is 487
603	603		repealed and the following is substituted in lieu thereof (Effective July 1, 488
604	604		2021): 489
605	605		(k) Any hemp intended to be manufactured into a manufacturer 490
606	606		hemp product shall be tested by an independent testing laboratory 491
607	607		located in this state. A manufacturer licensee shall make available 492
608	608		samples, in an amount and type determined by the Commissioner of 493
609	609		Consumer Protection, of hemp for an independent testing laboratory 494
610	610		employee to select random samples. The independent testing laboratory 495
611	611		shall test each sample for microbiological contaminants, mycotoxins, 496
612	612		heavy metals and pesticide chemical residue, and for purposes of 497
613	613		conducting an active ingredient analysis, if applicable, as determined by 498
614	614		the Commissioner of Consumer Protection. 499
615	615		Sec. 5. (NEW) (Effective July 1, 2021) (a) Marijuana producers, licensed 500
616	616		under any provision of the general statutes, shall manufacture, market, 501
617	617		produce or store hemp and hemp products, as such terms are defined in 502
618	618		section 22-61l of the general statutes, as amended by this act, in 503
619	619		accordance with the provisions of chapter 424 of the general statutes and 504 Substitute Bill No. 6099
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625	625
626	626		any regulations adopted under said chapter, except that marijuana 505
627	627		producers may obtain hemp and hemp products from a person 506
628	628		authorized under the laws of this state or another state, territory or 507
629	629		possession of the United States or another sovereign entity to possess 508
630	630		and sell such hemp and hemp products. 509
631	631		(b) Hemp or hemp products purchased by marijuana producers from 510
632	632		third parties shall be tracked as a separate batch throughout the 511
633	633		manufacturing process in order to document the disposition of such 512
634	634		hemp or hemp products. Once hemp or hemp products are received by 513
635	635		a marijuana producer, such hemp or hemp products shall be deemed 514
636	636		marijuana and shall comply with the requirements for marijuana 515
637	637		contained in the applicable provisions of the general statutes and any 516
638	638		regulations adopted under such provisions. Marijuana producers shall 517
639	639		retain a copy of the certificate of analysis for hemp or hemp products 518
640	640		purchased and invoice and transport documents that evidence the 519
641	641		quantity purchased and date received. 520
642	642		(c) No hemp or hemp products shall be sold or distributed within a 521
643	643		dispensary facility, as defined in section 21a-408-1 of the regulations of 522
644	644		Connecticut state agencies. 523
645	645		This act shall take effect as follows and shall amend the following
646	646		sections:
647	647
648	648		Section 1 July 1, 2021 New section
649	649		Sec. 2 July 1, 2021 22-61l
650	650		Sec. 3 July 1, 2021 22-61m(g)
651	651		Sec. 4 July 1, 2021 22-61m(k)
652	652		Sec. 5 July 1, 2021 New section
653	653
654	654		GL Joint Favorable Subst.
655		-	ENV Joint Favorable
656	655