LCO No. 3398 1 of 15 General Assembly Raised Bill No. 6500 January Session, 2021 LCO No. 3398 Referred to Committee on ENVIRONMENT Introduced by: (ENV) AN ACT CONCERNING SU PPLEMENTAL REVISIONS TO THE STATE'S HEMP PROGRAM STATUTE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 22-61l of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective from passage): 2 (a) For the purpose of this section and section 22-61m, the following 3 terms have the same meaning as provided in 7 CFR 990.1, as amended 4 from time to time: "Acceptable hemp THC level", "Agricultural 5 marketing service", "Audit", "Cannabis", "Conviction", "Corrective 6 action plan", "Culpable mental state greater than negligence", 7 "Decarboxylated", "Decarboxylation", "Disposal", "Dry weight basis", 8 "Gas chromatography", "Geospatial location", "Handle", ["High-9 performance liquid] "Liquid chromatography", "Immature plants", 10 "Information sharing system", "Measurement of uncertainty", 11 "Negligence", "Phytocannabinoid", "Postdecarboxylation" , 12 "Remediation", [and] "Reverse distributor" and "Total THC". In 13 addition, for the purpose of this section and section 22-61m: 14 (1) "Cannabidiol" or "CBD" means the nonpsychotropic compound by 15 Raised Bill No. 6500 LCO No. 3398 2 of 15 the same name; 16 (2) "Certificate of analysis" means a certificate from a laboratory 17 describing the results of the laboratory's testing of a sample; 18 (3) "Commissioner" means the Commissioner of Agriculture, or the 19 commissioner's designated agent; 20 (4) "Cultivate" means to plant, grow, harvest, handle and store a plant 21 or crop; 22 (5) "Federal act" means the United States Agricultural Marketing Act 23 of 1946, 7 USC 1639o et seq., as amended from time to time; 24 (6) "Department" means the Department of Agriculture; 25 (7) "Hemp" has the same meaning as provided in the federal act; 26 (8) "Hemp products" means all manufacturer hemp products and 27 producer hemp products; 28 (9) "Independent testing laboratory" means a facility: 29 (A) For which no person who has any direct or indirect financial or 30 managerial interest in the laboratory and also has any direct or indirect 31 interest in a facility that: 32 (i) Produces, distributes, manufactures or sells hemp or hemp 33 products, or marijuana in any state or territory of the United States; or 34 (ii) Cultivates, processes, distributes, dispenses or sells marijuana; 35 and 36 (B) That is accredited as a laboratory in compliance with section 21a-37 408-59 of the regulations of Connecticut state agencies; 38 (10) "Laboratory" means a laboratory that meets the requirements of 39 7 CFR 990.3 and that is accredited as a testing laboratory to International 40 Organization for Standardization (ISO) 17025 by a third-party 41 Raised Bill No. 6500 LCO No. 3398 3 of 15 accrediting body such as the American Association for Laboratory 42 Accreditation or the Assured Calibration and Laboratory Accreditation 43 Select Services; 44 (11) "Law enforcement agency" means the Connecticut State Police, 45 the United States Drug Enforcement Administration, the Department of 46 Agriculture, the Department of Consumer Protection Drug Control 47 Division or any other federal, state or local law enforcement agency or 48 drug suppression unit; 49 (12) "Licensee" means an individual or entity that possesses a license 50 to produce or manufacture hemp or hemp products in this state; 51 (13) "Manufacture" means the conversion of the hemp plant into a by-52 product by means of adding heat, solvents or any method of extraction 53 that modifies the original composition of the plant for the purpose of 54 creating a manufacturer hemp product for commercial or research 55 purposes; 56 (14) "Manufacturer" means a person in the state licensed by the 57 Commissioner of Consumer Protection to manufacture, handle, store 58 and market manufacturer hemp products pursuant to the provisions of 59 section 22-61m and any regulation adopted pursuant to section 22-61m; 60 (15) "Marijuana" has the same meaning as provided in section 21a-61 240; 62 (16) "Market" or "marketing" means promoting, distributing or 63 selling a hemp product within the state, in another state or outside of 64 the United States and includes efforts to advertise and gather 65 information about the needs or preferences of potential consumers or 66 suppliers; 67 (17) "On-site manager" means the individual designated by the 68 producer license applicant or producer responsible for on-site 69 management and operations of a licensed producer; 70 (18) "Pesticide" has the same meaning as "pesticide chemical" as 71 Raised Bill No. 6500 LCO No. 3398 4 of 15 provided in section 21a-92; 72 (19) "Lot" means a contiguous area in a field, greenhouse or indoor 73 growing structure containing the same variety or strain of hemp 74 throughout the area; 75 (20) "Post-harvest sample" means a representative sample of the form 76 of hemp taken from the harvested hemp from a particular lot's harvest 77 that is collected in accordance with the procedures established by the 78 commissioner; 79 (21) "Pre-harvest sample" means a composite, representative portion 80 from plants in a hemp lot, that is collected in accordance with the 81 procedures established by the commissioner; 82 (22) "Produce" means to cultivate hemp or create any producer hemp 83 product; 84 (23) "State plan" means a state plan, as described in the federal act and 85 as authorized pursuant to this section; 86 (24) "THC" means delta-9-tetrahydrocannabinol; 87 (25) "Controlled Substances Act" or "CSA" means the Controlled 88 Substances Act as codified in 21 USC 801 et seq.; 89 (26) "Criminal history report" means [the Federal Bureau of 90 Investigation's Identity History Summary] the fingerprint-based state 91 and national criminal history record information obtained in accordance 92 with section 29-17a; 93 (27) "Drug Enforcement Administration" or "DEA" means the United 94 States Drug Enforcement Administration; 95 (28) "Farm service agency" or "FSA" means an agency of the United 96 States Department of Agriculture; 97 (29) "Key participant" means a sole proprietor, a partner in 98 partnership or a person with executive managerial control in an entity, 99 Raised Bill No. 6500 LCO No. 3398 5 of 15 including persons such as a chief executive officer, chief operating 100 officer and chief financial officer; 101 (30) "Manufacturer hemp product" means a commodity 102 manufactured from the hemp plant, for commercial or research 103 purposes, that is intended for human ingestion, inhalation, absorption 104 or other internal consumption, that contains a THC concentration of not 105 more than 0.3 per cent on a dry weight basis or per volume or weight of 106 such manufacturer hemp product; 107 (31) "Producer" means an individual or entity licensed by the 108 commissioner to produce and market producer hemp products 109 pursuant to the federal act, the state plan, the provisions of this section 110 and the regulations adopted pursuant to this section; 111 (32) "Producer hemp product" means any of the following produced 112 in this state: Raw hemp product, fiber-based hemp product or animal 113 hemp food product, and each of which contains a THC concentration of 114 not more than 0.3 per cent on a dry weight basis or per volume or weight 115 of such producer hemp product; 116 (33) "USDA" means the United States Department of Agriculture; 117 (34) "Entity" means a corporation, joint stock company, association, 118 limited partnership, limited liability partnership, limited liability 119 company, irrevocable trust, estate, charitable organization or other 120 similar organization, including any such organization participating in 121 the hemp production as a partner in a general partnership, a participant 122 in a joint venture or a participant in a similar organization; and 123 (35) "Homogenize" means to blend hemp into a mixture that has a 124 uniform quality and content throughout such mixture. 125 (b) The Commissioner of Agriculture shall establish and operate an 126 agricultural pilot program, as defined in 7 USC 5940, as amended from 127 time to time, for hemp research to enable the department, and its 128 licensees, to study methods of producing and marketing hemp. All 129 Raised Bill No. 6500 LCO No. 3398 6 of 15 producer licensees licensed pursuant to this section shall be participants 130 in the state agricultural pilot program for hemp research. Until such 131 time as said commissioner adopts regulations, in accordance with the 132 provisions of chapter 54, the Department of Agriculture shall utilize 133 procedures and guidance policies that the commissioner deems to be 134 consistent with the provisions of 7 USC 5940, as amended from time to 135 time, provided such procedures and guidance policies shall, at a 136 minimum, require: (1) The commissioner to certify and register any site 137 used to grow hemp, (2) any person who produces hemp to produce 138 plants that meet the definition of hemp and verify such, (3) the 139 maintenance of records by any person who grows hemp and the 140 availability of inspection of such records by the commissioner, and (4) 141 verification of compliance with the definition of hemp by a laboratory, 142 at the expense of any licensee. The provisions of this section shall take 143 precedence over any such procedure or guidance policy. Participants in 144 the state agricultural pilot program for hemp research shall be licensed 145 in accordance with the provisions of this section. Such pilot program 146 shall operate until the earlier of the date of a fully approved state plan 147 under the federal act, as described in this section, or the date of repeal 148 of the federal law permitting the state's agricultural pilot program for 149 hemp research. 150 (c) (1) The commissioner shall prepare a state plan in accordance with 151 the federal act and 7 CFR 990.3, for approval by the Governor, in 152 consultation with the office of the Chief State's Attorney and the 153 Attorney General. The state plan, once approved by the Governor and 154 the Attorney General, shall be submitted by the commissioner to the 155 United States Secretary of Agriculture for his or her approval. The 156 commissioner shall have the authority to amend the state plan, in 157 consultation with the Governor, the Attorney General and the office of 158 the Chief State's Attorney, as necessary to comply with the federal act. 159 (2) The commissioner shall operate the state plan, which shall 160 include, at a minimum, the following requirements: 161 (A) The sampling of hemp shall comply, at a minimum, with 7 CFR 162 Raised Bill No. 6500 LCO No. 3398 7 of 15 [990.3(a)(2)] 990.3 and be performed by [the commissioner, the 163 commissioner's designated agents, or] an authorized sampling agent; 164 (B) The testing of hemp shall comply, at a minimum, with 7 CFR 165 [990.3(a)(3)] 990.3; 166 (C) The control, remediation and disposal of noncompliant cannabis 167 plants shall comply with 7 CFR 990.27 and 7 CFR 990.3; 168 (D) The department shall comply with all recordkeeping and 169 reporting requirements in the federal act, and 7 CFR 990.1 to 7 CFR 170 990.71, inclusive; 171 (E) The department shall comply with enforcement procedures in 7 172 CFR 990.6; 173 (F) The department shall conduct annual inspections of, at a 174 minimum, a random sample of producers to verify that hemp is not 175 produced in violation of the federal act, the state plan and the provisions 176 of this section, and shall enforce any violation as provided for in the 177 federal act and as defined in 7 CFR 990.6; 178 (G) Producers shall report their required license, lot and hemp crop 179 acreage information to FSA, in accordance with the requirements in 7 180 CFR 990.7; and 181 (H) Producers shall report to the commissioner the total acreage of 182 hemp planted, harvested and, if applicable, disposed of or remediated, 183 and such other information as the commissioner may require. 184 (3) All sampling and testing of hemp shall be done using protocols 185 that are at least as statistically valid as the USDA's published protocols 186 for sampling and testing of hemp, which protocols shall be posted on 187 the department's Internet web site. During a scheduled sample 188 collection, the producer, or an authorized representative of the 189 producer, shall be present at the lot. A producer shall not harvest the 190 cannabis crop prior to the taking of samples. Samples of hemp plant 191 material from one lot shall not be commingled with hemp plant material 192 Raised Bill No. 6500 LCO No. 3398 8 of 15 from other lots. Lots tested and not certified by a laboratory at or below 193 the acceptable hemp THC level shall be handled, remediated and 194 disposed of in accordance with the federal act, the provisions of this 195 section and the state plan, as applicable. 196 (4) The commissioner shall collect, maintain and provide to the 197 USDA, on a timely basis, and not less than once per month, license status 198 of each hemp producer, contact information for each hemp producer 199 licensed in the state, including lot legal descriptions and locations, and 200 any changes to such information. The commissioner shall also report to 201 the USDA, on a timely basis, and not less than once per month, all 202 required hemp test results and disposal information for all 203 nonconforming hemp plants and plant material. Such information shall 204 not include state and federal fingerprint-based records pursuant to 205 section 29-17a. 206 (d) The commissioner shall have the authority to enforce the federal 207 act, as amended from time to time, the state plan, this section and any 208 regulations adopted in accordance with the federal act and chapter 54 209 for hemp production in the state. The commissioner shall have the 210 authority to enforce the applicable standards for producer hemp 211 products. The commissioner may consult, collaborate and enter into 212 cooperative agreements with any federal or state agency, municipality 213 or political subdivision of the state concerning application of the 214 provisions of the federal act and the regulations adopted pursuant to the 215 federal act, as may be necessary to carry out the provisions of this 216 section. 217 (e) Any person who produces hemp shall: (1) Be licensed by the 218 commissioner; (2) comply with the federal act, the state plan, the 219 provisions of this section and any regulation adopted pursuant to this 220 section; and (3) transport hemp and hemp samples in a manner and with 221 such documentation as required by the commissioner. 222 (f) Any person who sells hemp products shall not be required to be 223 licensed provided such person only engages in: (1) The retail or 224 Raised Bill No. 6500 LCO No. 3398 9 of 15 wholesale sale of hemp or hemp products in which no further 225 producing or manufacturing of the hemp products occurs and the hemp 226 products are acquired from a person authorized under the laws of this 227 state or another state, territory or possession of the United States or 228 another sovereign entity to possess and sell such hemp products; (2) the 229 acquisition of hemp or hemp products for the sole purpose of product 230 distribution for resale; or (3) the retail sale of hemp products that are 231 otherwise authorized under federal or state law. 232 (g) Any applicant for a license pursuant to this section shall meet each 233 of the following requirements, as applicable: 234 (1) Each applicant, whether an individual or an entity, shall submit 235 an application for a license that consists, at a minimum, of the following: 236 (A) The name, telephone number, electronic mail address, business 237 address and address of any individual who is the applicant, the full 238 name of any entity that is the applicant, including any applicable 239 principal business location and the full name, title and electronic mail 240 address of each key participant; (B) the name and address of each lot for 241 the hemp cultivation or producing location; (C) the geospatial location 242 of each lot by means of global positioning system coordinates and legal 243 description of each lot used for the hemp cultivation; (D) the acreage 244 size of each lot where the hemp will be cultivated; (E) written consent 245 allowing the commissioner to conduct both scheduled and random 246 inspections of and around the premises on which the hemp is to be 247 cultivated, harvested, stored and produced; and (F) any other 248 information as may be required by the commissioner; 249 (2) Each individual who is an applicant and each key participant of 250 any entity applying for a producer license, or renewal thereof, shall 251 submit to state and national fingerprint-based criminal history records 252 checks conducted in accordance with section 29-17a, at his or her own 253 expense; [. For the period commencing on the effective date of this 254 section and ending on December 31, 2021, the results of any such 255 criminal history records checks shall be provided by such applicants 256 and key participants to the commissioner for review;] 257 Raised Bill No. 6500 LCO No. 3398 10 of 15 (3) No individual, including any key participant of any entity, who 258 has been convicted of any state or federal felony, [as prescribed in the 259 federal act] related to a controlled substance, shall be eligible to obtain 260 or hold a producer license for ten years from the date of the conviction, 261 provided such restriction shall not apply to any individual who lawfully 262 grew hemp with a license, registration or authorization under any state 263 pilot program authorized by section 7606 of the Agricultural Act of 2014 264 before December 20, 2018. Any individual or entity that materially 265 falsifies any information in an application pursuant to this section shall 266 be ineligible to obtain a producer license; and 267 (4) Each individual or entity who is required by this section to obtain 268 a producer license shall pay for all costs of sampling, testing, retesting 269 and resampling any samples at a laboratory for the purpose of 270 determining the THC concentration level of any cannabis under their 271 control, or in their possession. Each individual or entity who is required 272 by this section to obtain a producer license shall pay for all costs of 273 disposal of all noncompliant cannabis plants under their control, or in 274 their possession. 275 (h) Any producer license issued by the commissioner shall expire on 276 the third following December thirty-first and may be renewed during 277 the preceding month of October. Such licenses shall not be transferable. 278 (i) The following fees shall apply for each producer license and 279 inspection: 280 (1) A nonrefundable license application fee of fifty dollars, provided 281 any constituent unit of higher education, state agency or department 282 shall be exempt from such application fee if such production is for 283 research purposes; 284 (2) A nonrefundable triennial producer license fee of four hundred 285 fifty dollars for up to one acre of planned hemp plantings and thirty 286 dollars per each additional acre of planned hemp plantings rounded to 287 the nearest acre, except no license fee charged shall exceed three 288 thousand dollars, provided any constituent unit of higher education, 289 Raised Bill No. 6500 LCO No. 3398 11 of 15 state agency or department shall be exempt from such license fee if such 290 production is for research purposes; and 291 (3) In the event that resampling by the commissioner is required due 292 to a test result that shows a violation of any provision of this section or 293 any regulation adopted pursuant to this section, the licensee shall pay 294 an inspection fee of fifty dollars. Such fee shall be paid prior to the 295 inspection and collection of the sample to be used for resampling. 296 (j) After receipt and review of an application for producer licensure, 297 the commissioner may grant a triennial license upon a finding that the 298 applicant meets the applicable requirements. Each producer licensee 299 shall notify the commissioner of any changes to their application 300 information, not later than fifteen days after such change. While the 301 pilot program is in effect, the commissioner may grant a conditional 302 approval of a producer license, pending receipt of the criminal history 303 records check required by this section. The commissioner shall assign 304 each producer with a license or authorization identifier in a format 305 consistent with 7 CFR [990.3(a)(9)] 990.3. 306 (k) Whenever an inspection or investigation conducted by the 307 commissioner pursuant to this title reveals any violation of the state 308 plan, this section or any regulation adopted thereunder, the producer 309 license applicant or respondent, as applicable, shall be notified, in 310 writing, of such violation and any corrective action to be taken and the 311 time period within which such corrective action shall be taken. Any such 312 producer license applicant or respondent may request a hearing, 313 conducted in accordance with chapter 54, on any such notification. Any 314 notification issued pursuant to this section shall be made by certified 315 mail, return receipt requested to the producer license applicant or 316 respondent's last known address, by in-hand service by the 317 commissioner or designated agent of the commissioner, electronic mail 318 service with the consent of the recipient, or by service in accordance 319 with chapter 896. The commissioner shall report all producer violations 320 made with a culpable mental state greater than negligence to the United 321 States Attorney General and the State's Attorney for the judicial district 322 Raised Bill No. 6500 LCO No. 3398 12 of 15 in which the producer violation occurred. 323 (l) Nothing in this section shall be construed to limit the 324 commissioner's authority to issue a cease and desist order pursuant to 325 section 22-4d, or an emergency order, in order to respond to a condition 326 that may present a public health hazard, or issue orders necessary to 327 effectuate the purposes of this section, including, but not limited to, 328 orders for the embargo, partial destruction, destruction and release of 329 hemp or hemp products. Any cease and desist order or an emergency 330 order shall become effective upon service of such order by the 331 commissioner. Following service of any such order, subsequent 332 proceedings shall proceed in accordance with the provisions of section 333 22-4d and the rules of practice for such agency. Any embargo, partial 334 destruction, destruction or release order issued pursuant to this section 335 shall be served by certified mail, return receipt requested to the 336 respondent's last known address, by in-hand service by the 337 commissioner or designated agent of the commissioner, or by service in 338 accordance with chapter 896. 339 (m) Following a hearing conducted in accordance with chapter 54, 340 the commissioner may impose an administrative civil penalty, not to 341 exceed two thousand five hundred dollars per violation, and suspend, 342 revoke or place conditions upon any producer licensee who violates the 343 provisions of this section or any regulation adopted pursuant to this 344 section. 345 (n) (1) Any individual who produces hemp in this state without 346 obtaining a license pursuant to this section, or who produces hemp in 347 this state after having a license suspended or revoked shall have 348 committed an infraction. 349 (2) Any entity that produces hemp in this state without obtaining a 350 license pursuant to this section, produces hemp in violation of this 351 section or produces hemp in this state after having a license suspended 352 or revoked may be fined not more than two thousand five hundred 353 dollars per violation, after a hearing conducted in accordance with 354 Raised Bill No. 6500 LCO No. 3398 13 of 15 chapter 54. 355 (o) (1) Any negligent violation, as described in the federal act, of this 356 section or the state plan shall be subject to enforcement in accordance 357 with the federal act, and the state plan for negligent violations. 358 (2) For any negligent violation, a producer shall be required to correct 359 such negligent violation, by means of a corrective action plan approved 360 by the commissioner. Each corrective action plan shall include, at a 361 minimum, a reasonable completion deadline for correction of the 362 negligent violation, periodic reporting to the commissioner for at least 363 two years and compliance with the state plan. 364 (3) Any producer that negligently violates the state plan shall not, as 365 a result of such negligent violation, be referred by the commissioner for 366 any criminal enforcement action by the federal, state or local 367 government. 368 (4) Any producer that negligently violates the state plan three times 369 during any five-year period shall be ineligible to produce hemp for a 370 period of five years beginning on the date of the third violation. 371 (5) The commissioner shall conduct an inspection to determine if the 372 corrective action plan for a producer who commits any such negligent 373 violation was properly implemented. 374 (p) Any person aggrieved by an order issued pursuant to this section 375 may appeal to the commissioner in accordance with the provisions of 376 chapter 54. Such appeal shall be made in writing to the commissioner 377 and received not later than fifteen days after the date of the order. If no 378 appeal is made pursuant to this subsection the order shall be final. 379 (q) (1) All documents submitted under this section shall be subject to 380 disclosure in accordance with chapter 14, except: (A) Information 381 depicting or describing (i) the test results of any producer, (ii) the 382 location of any hemp growing, harvesting, processing or storage 383 location, or (iii) hemp producer location security schematics; and (B) the 384 Raised Bill No. 6500 LCO No. 3398 14 of 15 results of any criminal history records check. 385 (2) Notwithstanding the provisions of subdivision (1) of this 386 subsection, all documents and records submitted or maintained 387 pursuant to this section shall be disclosed to any law enforcement 388 agency upon request of such law enforcement agency. 389 (r) The commissioner may inspect and shall have access to the 390 buildings, equipment, supplies, vehicles, records, real property and 391 other information that the commissioner deems necessary to carry out 392 the commissioner's duties pursuant to this section from any person 393 participating in producing, handling, storing marketing or researching 394 hemp. 395 (s) Nothing in this section shall be construed to apply to any licensee 396 of palliative marijuana authorized pursuant to chapter 420f. 397 (t) All licensees pursuant to this section shall maintain records 398 required by the federal act, the state plan, this section and any regulation 399 adopted pursuant to this section. Each licensee shall make such records 400 available to the department immediately upon request of the 401 commissioner and in electronic format, if available. 402 (u) The commissioner may adopt regulations, in accordance with the 403 provisions of chapter 54, to implement the provisions of this section 404 including, but not limited to, the labeling of producer hemp products. 405 (v) Notwithstanding any provision of the general statutes: (1) 406 Marijuana does not include hemp or hemp products; (2) THC that does 407 not exceed 0.3 per cent by dry weight and that is found in hemp shall 408 not be considered to be THC that constitutes a controlled substance; (3) 409 hemp-derived cannabidiols, including CBD, shall not constitute 410 controlled substances or adulterants solely on the basis of containing 411 CBD; and (4) hemp products that contain one or more hemp-derived 412 cannabidiols, such as CBD, intended for ingestion shall be considered 413 foods, not controlled substances or adulterated products solely on the 414 basis of the containing hemp-derived cannabidiols. 415 Raised Bill No. 6500 LCO No. 3398 15 of 15 (w) Whenever the commissioner believes or has reasonable cause to 416 believe that the actions of a licensee or any employee of a producer 417 licensee are in violation of the federal act, the state plan, or any state law 418 concerning the growing, cultivation, handling, transporting or 419 possession of marijuana, the commissioner shall notify the Department 420 of Emergency Services and Public Protection and the State Police. 421 This act shall take effect as follows and shall amend the following sections: Section 1 from passage 22-61l Statement of Purpose: To make additional revisions to the state's hemp program statute, as required by the federal government. [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.]