| 1 | 1 | | 24 LC 55 0231 |
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| 2 | 2 | | House Bill 1286 |
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| 3 | 3 | | By: Representatives Corbett of the 174 |
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| 4 | 4 | | th |
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| 5 | 5 | | , Cannon of the 172 |
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| 6 | 6 | | nd |
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| 7 | 7 | | , Williams of the 148 |
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| 8 | 8 | | th |
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| 9 | 9 | | , LaHood |
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| 10 | 10 | | of the 175 |
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| 11 | 11 | | th |
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| 12 | 12 | | , and Rhodes of the 124 |
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| 13 | 13 | | th |
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| 14 | 14 | | |
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| 15 | 15 | | A BILL TO BE ENTITLED |
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| 16 | 16 | | AN ACT |
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| 17 | 17 | | To amend Chapter 23 of Title 2 of the Official Code of Georgia Annotated, relating to the |
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| 18 | 18 | | 1 |
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| 19 | 19 | | 'Georgia Hemp Farming Act,' so as to regulate hemp products; to provide for definitions; to2 |
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| 20 | 20 | | prohibit persons from performing certain activities without licenses; to provide for penalties;3 |
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| 21 | 21 | | to revise disqualifications for a hemp grower license; to revise disqualifications for a hemp4 |
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| 22 | 22 | | processor permit; to revise the annual fee for such a permit; to provide for the issuance of5 |
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| 23 | 23 | | retail consumable hemp establishment licenses; to provide for the issuance of wholesale6 |
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| 24 | 24 | | consumable hemp licenses; to provide for the issuance of manufacturer licenses; to provide7 |
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| 25 | 25 | | for the registration of laboratories; to revise provisions concerning violations; to conform8 |
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| 26 | 26 | | terminology; to provide for related matters; to repeal conflicting laws; and for other purposes.9 |
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| 27 | 27 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 |
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| 28 | 28 | | SECTION 1.11 |
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| 29 | 29 | | Chapter 23 of Title 2 of the Official Code of Georgia Annotated, relating to the 'Georgia12 |
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| 30 | 30 | | Hemp Farming Act,' is amended in Code Section 2-23-2, relating to intent, by revising13 |
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| 31 | 31 | | paragraph (6) as follows:14 |
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| 32 | 32 | | "(6) Enable the department, hemp grower |
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| 33 | 33 | | licensees, and universities to promote the15 |
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| 34 | 34 | | cultivation and processing of hemp and the commercial sale of hemp products."16 |
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| 35 | 35 | | H. B. 1286 |
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| 36 | 36 | | - 1 - 24 LC 55 0231 |
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| 37 | 37 | | SECTION 2. |
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| 38 | 38 | | 17 |
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| 39 | 39 | | Said chapter is further amended by revising Code Section 2-23-3, relating to definitions, as18 |
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| 40 | 40 | | follows:19 |
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| 41 | 41 | | "2-23-3.20 |
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| 42 | 42 | | As used in this chapter, the term:21 |
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| 43 | 43 | | (1) 'Commercial sale' means the sale of products in the stream of commerce at retail, at22 |
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| 44 | 44 | | wholesale, and online.23 |
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| 45 | 45 | | (1.2) 'Consumable hemp product' means a hemp product intended to be ingested, |
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| 46 | 46 | | 24 |
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| 47 | 47 | | absorbed, or inhaled by humans or animals.25 |
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| 48 | 48 | | (2) 'Cultivate' means to plant, water, grow, and harvest a plant or crop.26 |
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| 49 | 49 | | (3) 'Federally defined THC level for hemp' means a delta-9-THC concentration of not27 |
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| 50 | 50 | | more than 0.3 percent on a dry weight basis, or as defined in 7 U.S.C. Section 1639o,28 |
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| 51 | 51 | | whichever is greater.29 |
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| 52 | 52 | | (4) 'Handle' means to possess or store hemp plants for any period of time on premises30 |
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| 53 | 53 | | owned, operated, or controlled by a person licensed to cultivate or permitted to process31 |
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| 54 | 54 | | hemp, or to possess or store hemp plants in a vehicle for any period of time other than32 |
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| 55 | 55 | | during the actual transport of such plants from the premises of a person licensed to33 |
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| 56 | 56 | | cultivate or permitted to process hemp or a college or university authorized to conduct34 |
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| 57 | 57 | | research pursuant to Code Section 2-23-4 to the premises of another licensed or permitted35 |
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| 58 | 58 | | person or to a college or university authorized to conduct research pursuant to Code36 |
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| 59 | 59 | | Section 2-23-4; provided, however, that this term shall not include possessing or storing37 |
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| 60 | 60 | | finished hemp products.38 |
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| 61 | 61 | | (5) 'Hemp' means the Cannabis sativa L. plant and any part of such plant, including the39 |
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| 62 | 62 | | seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts40 |
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| 63 | 63 | | of isomers, whether growing or not, with the federally defined THC level for hemp or a41 |
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| 64 | 64 | | lower level.42 |
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| 65 | 65 | | H. B. 1286 |
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| 66 | 66 | | - 2 - 24 LC 55 0231 |
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| 67 | 67 | | (5.1) 'Hemp grower licensee' means an individual or business entity possessing a hemp43 |
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| 68 | 68 | | grower license issued by the department under the authority of this chapter to handle and44 |
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| 69 | 69 | | cultivate hemp in the State of Georgia.45 |
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| 70 | 70 | | (6) 'Hemp products' means all products with the federally defined THC level for hemp46 |
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| 71 | 71 | | derived from, or made by, processing hemp plants or plant parts that are prepared in a47 |
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| 72 | 72 | | form available for legal commercial sale, but not including food products infused with48 |
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| 73 | 73 | | THC unless approved by the United States Food and Drug Administration.49 |
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| 74 | 74 | | (6.1) 'Industrial hemp product' means any hemp product that is not a consumable hemp50 |
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| 75 | 75 | | product.51 |
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| 76 | 76 | | (7) 'Key participant' means a sole proprietor, a partner in a partnership, or a person with52 |
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| 77 | 77 | | executive managerial control in a corporation when such sole proprietor, partnership, or53 |
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| 78 | 78 | | corporation is an applicant to be a hemp grower licensee or a permittee. A person with54 |
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| 79 | 79 | | executive managerial control in a corporation includes persons serving as a chief55 |
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| 80 | 80 | | executive officer, chief operating officer, chief financial officer, or any other individual56 |
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| 81 | 81 | | identified in regulations promulgated by the department. This term shall not include57 |
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| 82 | 82 | | nonexecutive managers, such as farm, field, or shift managers.58 |
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| 83 | 83 | | (8) 'Licensee' means an individual or business entity possessing a hemp grower license59 |
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| 84 | 84 | | issued by the department under the authority of this chapter to handle and cultivate hemp60 |
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| 85 | 85 | | in the State of Georgia.61 |
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| 86 | 86 | | (8.1) 'Manufacture' means to create, produce, manipulate, combine, or package.62 |
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| 87 | 87 | | (8.2) 'Manufacturer license' means a license issued by the department under the authority63 |
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| 88 | 88 | | of this chapter to an individual or business entity that manufactures consumable hemp64 |
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| 89 | 89 | | products or industrial hemp products in this state.65 |
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| 90 | 90 | | (9) 'Permittee' means an individual or business entity possessing a hemp processor permit66 |
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| 91 | 91 | | issued by the department under the authority of this chapter to handle and process hemp67 |
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| 92 | 92 | | in the State of Georgia.68 |
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| 93 | 93 | | H. B. 1286 |
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| 94 | 94 | | - 3 - 24 LC 55 0231 |
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| 95 | 95 | | (10)(A) 'Process' or 'processing,' except as otherwise provided in subparagraph (B) of |
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| 96 | 96 | | 69 |
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| 97 | 97 | | this paragraph, means converting an agricultural commodity into a legally marketable70 |
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| 98 | 98 | | form.71 |
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| 99 | 99 | | (B) Such term shall not include:72 |
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| 100 | 100 | | (i) Merely placing raw or dried material into another container or packaging raw or73 |
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| 101 | 101 | | dried material for resale; or74 |
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| 102 | 102 | | (ii) Traditional farming practices such as those commonly known as drying, shucking75 |
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| 103 | 103 | | and bucking, storing, trimming, and curing.76 |
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| 104 | 104 | | (10.1) 'Registered laboratory' means an individual or business entity that tests or analyzes |
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| 105 | 105 | | 77 |
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| 106 | 106 | | any plant within the genus Cannabis, including but not limited to hemp, and products78 |
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| 107 | 107 | | made from or derived from such plant, including but not limited to hemp products and79 |
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| 108 | 108 | | consumable hemp products, and that has registered with the department under this80 |
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| 109 | 109 | | chapter.81 |
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| 110 | 110 | | (11) 'Research' or 'researching' means experimental field, greenhouse, or laboratory82 |
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| 111 | 111 | | activity for the ultimate purpose of developing new hemp varieties and products,83 |
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| 112 | 112 | | improving existing hemp products, developing new uses for existing hemp products, or84 |
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| 113 | 113 | | developing or improving methods for producing hemp products.85 |
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| 114 | 114 | | (11.1) 'Retail consumable hemp establishment license' means a license issued by the86 |
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| 115 | 115 | | department under the authority of this chapter to an individual or business entity that87 |
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| 116 | 116 | | prepares or sells prepackaged consumable hemp products to consumers.88 |
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| 117 | 117 | | (12) 'THC' means tetrahydrocannabinol, tetrahydrocannabinolic acid, or a combination89 |
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| 118 | 118 | | of tetrahydrocannabinol and tetrahydrocannabinolic acid.90 |
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| 119 | 119 | | (13) 'Wholesale consumable hemp license' means a license issued by the department91 |
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| 120 | 120 | | under the authority of this chapter to an individual or business entity that sells, in bulk,92 |
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| 121 | 121 | | prepackaged consumable hemp products to retail consumable hemp establishment93 |
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| 122 | 122 | | licensees or to other retail establishments located outside of the State of Georgia that are94 |
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| 123 | 123 | | H. B. 1286 |
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| 124 | 124 | | - 4 - 24 LC 55 0231 |
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| 125 | 125 | | authorized to sell consumable hemp products to consumers in the jurisdiction where such95 |
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| 126 | 126 | | establishments are located."96 |
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| 127 | 127 | | SECTION 3.97 |
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| 128 | 128 | | Said chapter is further amended in Code Section 2-23-4, relating to required licenses,98 |
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| 129 | 129 | | research by colleges and universities, and processing of other products, by revising99 |
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| 130 | 130 | | subsection (a) as follows:100 |
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| 131 | 131 | | "(a) Except as otherwise provided in subsection (b) of this Code section, it shall be101 |
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| 132 | 132 | | unlawful for:102 |
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| 133 | 133 | | (1) Any person to cultivate, handle, or process hemp in this state unless such person103 |
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| 134 | 134 | | holds a hemp grower license or a hemp processor permit issued by the department104 |
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| 135 | 135 | | pursuant to this chapter or is employed by a hemp grower licensee or permittee;105 |
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| 136 | 136 | | (2) A permittee to accept hemp for processing from any person other than a hemp grower106 |
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| 137 | 137 | | licensee or a college or university authorized to conduct research pursuant to107 |
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| 138 | 138 | | subsection (b) of this Code section, except as otherwise provided in paragraph (4) of this108 |
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| 139 | 139 | | subsection;109 |
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| 140 | 140 | | (3) A hemp grower licensee to provide or sell hemp to any person other than another110 |
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| 141 | 141 | | hemp grower licensee, a college or university authorized to conduct research pursuant to111 |
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| 142 | 142 | | subsection (b) of this Code section, or a permittee with whom the hemp grower licensee112 |
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| 143 | 143 | | enters into an agreement pursuant to Code Section 2-23-7, unless such person is located113 |
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| 144 | 144 | | in a state with a plan to regulate hemp production that is approved by the Secretary of114 |
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| 145 | 145 | | Agriculture secretary of agriculture of the United States, or otherwise in accordance with115 |
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| 146 | 146 | | regulations promulgated by the United States Department of Agriculture, and such person116 |
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| 147 | 147 | | is authorized to grow or process hemp in that state;117 |
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| 148 | 148 | | (4) A permittee to accept for processing any hemp grown outside of the State of Georgia,118 |
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| 149 | 149 | | unless such hemp is grown in a state with a plan to regulate hemp production that is119 |
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| 150 | 150 | | approved by the Secretary of Agriculture secretary of agriculture of the United States or120 |
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| 151 | 151 | | H. B. 1286 |
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| 152 | 152 | | - 5 - 24 LC 55 0231 |
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| 153 | 153 | | otherwise in accordance with regulations promulgated by the United States Department |
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| 154 | 154 | | 121 |
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| 155 | 155 | | of Agriculture;122 |
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| 156 | 156 | | (5) A permittee to process hemp pursuant to a hemp processor permit outside of the State123 |
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| 157 | 157 | | of Georgia, unless such processing occurs in a state with a plan to regulate hemp124 |
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| 158 | 158 | | production that is approved by the Secretary of Agriculture |
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| 159 | 159 | | secretary of agriculture of the125 |
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| 160 | 160 | | United States or otherwise in accordance with regulations promulgated by the United126 |
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| 161 | 161 | | States Department of Agriculture;127 |
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| 162 | 162 | | (6) Any hemp grower licensee or permittee to otherwise fail to comply with the128 |
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| 163 | 163 | | requirements of this chapter or any applicable state or federal law or regulation;129 |
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| 164 | 164 | | (7) Any person to offer for sale at retail the unprocessed flower or leaves of the hemp130 |
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| 165 | 165 | | plant; or131 |
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| 166 | 166 | | (8) Any person to cultivate or handle hemp in any structure that is used for residential132 |
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| 167 | 167 | | purposes."133 |
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| 168 | 168 | | SECTION 4.134 |
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| 169 | 169 | | Said chapter is further amended by adding a new Code section to read as follows:135 |
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| 170 | 170 | | "2-23-4.1.136 |
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| 171 | 171 | | (a) Except as provided in subsection (b) of this Code section, it shall be unlawful for any137 |
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| 172 | 172 | | person:138 |
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| 173 | 173 | | (1) To process hemp in this state unless such person holds a processing permit issued by139 |
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| 174 | 174 | | the department or is employed by a permittee;140 |
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| 175 | 175 | | (2) To handle hemp in this state unless such person holds a hemp grower license, a141 |
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| 176 | 176 | | processing permit, or a manufacturer license issued by the department or has registered142 |
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| 177 | 177 | | with the department as a registered laboratory or is employed by a person who holds such143 |
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| 178 | 178 | | a license or who has registered with the department as a registered laboratory;144 |
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| 179 | 179 | | H. B. 1286 |
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| 180 | 180 | | - 6 - 24 LC 55 0231 |
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| 181 | 181 | | (3) To sell or offer for sale any consumable hemp product in this state to consumers145 |
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| 182 | 182 | | unless such person holds a retail consumable hemp establishment license issued by the146 |
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| 183 | 183 | | department or is employed by a person who holds such a license;147 |
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| 184 | 184 | | (4) To sell or offer for sale any consumable hemp product in this state to retail148 |
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| 185 | 185 | | consumable hemp establishment licensees or other retail establishments unless such149 |
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| 186 | 186 | | person holds a wholesale consumable hemp license issued by the department or is150 |
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| 187 | 187 | | employed by a person who holds such a license;151 |
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| 188 | 188 | | (5) To manufacture hemp products in this state unless such person holds a manufacturer152 |
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| 189 | 189 | | license issued by the department or is employed by a person who holds such a license;153 |
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| 190 | 190 | | or154 |
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| 191 | 191 | | (6) Perform in this state tests or analyses of any plant within the genus Cannabis,155 |
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| 192 | 192 | | including but not limited to hemp, or any product made or derived from such plant,156 |
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| 193 | 193 | | including but not limited to hemp products and consumable hemp products, unless such157 |
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| 194 | 194 | | person has registered with the department as a registered laboratory or is employed by a158 |
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| 195 | 195 | | person who has registered with the department as a registered laboratory.159 |
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| 196 | 196 | | (b) The prohibitions contained in paragraphs (2) and (6) of subsection (a) of this Code160 |
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| 197 | 197 | | section shall not apply to a college or university authorized to conduct research pursuant161 |
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| 198 | 198 | | to Code Section 2-23-4 or a person assisting such college or university with such research162 |
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| 199 | 199 | | pursuant to Code Section 2-23-4.163 |
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| 200 | 200 | | (c)(1) Any person who violates any provision of subsection (a) of this Code section shall:164 |
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| 201 | 201 | | (A) Be guilty of a misdemeanor for a first offense; and165 |
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| 202 | 202 | | (B) For a second or subsequent offense, be guilty of a misdemeanor of a high and166 |
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| 203 | 203 | | aggravated nature.167 |
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| 204 | 204 | | (2) Each violation of any provision of subsection (a) of this Code section shall constitute168 |
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| 205 | 205 | | a separate offense.169 |
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| 206 | 206 | | (d) In addition to the criminal penalties provided for in subsection (c) of this Code section,170 |
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| 207 | 207 | | any person who violates any provision of subsection (a) of this Code section shall be171 |
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| 208 | 208 | | H. B. 1286 |
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| 209 | 209 | | - 7 - 24 LC 55 0231 |
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| 210 | 210 | | subject to a civil penalty of not more than $5,000.00 for each violation. The amount of the172 |
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| 211 | 211 | | civil penalty imposed pursuant to this subsection shall be fixed by the Commissioner after173 |
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| 212 | 212 | | notice and hearing as provided in Chapter 13 of Title 50, the 'Georgia Administrative174 |
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| 213 | 213 | | Procedure Act,' for contested cases. For purposes of this subsection, each day a violation175 |
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| 214 | 214 | | of subsection (a) of this Code section occurs or continues shall constitute a separate176 |
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| 215 | 215 | | violation."177 |
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| 216 | 216 | | SECTION 5.178 |
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| 217 | 217 | | Said chapter is further amended in Code Section 2-23-5, relating to procedure for licensing,179 |
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| 218 | 218 | | fees, license requirements, and limitations on license, by revising paragraph (3) of180 |
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| 219 | 219 | | subsection (c) and paragraph (3) of subsection (d) as follows:181 |
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| 220 | 220 | | "(3) No license shall be issued to any applicant who has been convicted of a182 |
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| 221 | 221 | | misdemeanor involving sale of or trafficking in a controlled substance or a felony related183 |
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| 222 | 222 | | to a state or federally controlled substance within ten years of the date of application or184 |
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| 223 | 223 | | who materially falsifies any information contained in a license application."185 |
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| 224 | 224 | | "(3) For purposes of this subsection:186 |
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| 225 | 225 | | (A) The term 'person' shall include all members of a hemp grower licensee's family and187 |
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| 226 | 226 | | all corporations, limited partnerships, limited liability companies, and other business188 |
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| 227 | 227 | | entities in which a hemp grower licensee holds more than a 50 percent ownership189 |
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| 228 | 228 | | interest; the term 'family' shall include any person related to the holder of the hemp190 |
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| 229 | 229 | | grower license within the first degree of consanguinity and affinity as computed191 |
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| 230 | 230 | | according to the canon law and who is claimed as a dependent by the hemp grower192 |
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| 231 | 231 | | licensee for income tax purposes; and193 |
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| 232 | 232 | | (B) The beneficiaries of a trust shall be considered to have a beneficial interest in any194 |
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| 233 | 233 | | business forming a part of the trust estate."195 |
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| 234 | 234 | | H. B. 1286 |
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| 235 | 235 | | - 8 - 24 LC 55 0231 |
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| 236 | 236 | | SECTION 6. |
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| 237 | 237 | | 196 |
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| 238 | 238 | | Said chapter is further amended in Code Section 2-23-6, relating to procedure for permitting197 |
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| 239 | 239 | | and limitations on permits and interests, by revising paragraph (3) of subsection (c),198 |
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| 240 | 240 | | subsection (e), and paragraph (3) of subsection (h) as follows:199 |
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| 241 | 241 | | "(3) No permit shall be issued to any applicant who has been convicted of a misdemeanor200 |
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| 242 | 242 | | involving sale of or trafficking in a controlled substance or a felony related to a state or |
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| 243 | 243 | | 201 |
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| 244 | 244 | | federally controlled substance within ten years of the date of application or who202 |
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| 245 | 245 | | materially falsifies any information contained in a license application."203 |
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| 246 | 246 | | "(e) Hemp processor permits shall be issued for one calendar year at an annual permit fee204 |
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| 247 | 247 | | of $25,000.00 $10,000.00, so long as no administrative action has been taken by the205 |
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| 248 | 248 | | department regarding such permittee under this chapter."206 |
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| 249 | 249 | | "(3) For purposes of this subsection:207 |
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| 250 | 250 | | (A) The term 'person' shall include all members of a licensee's permittee's family and208 |
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| 251 | 251 | | all corporations, limited partnerships, limited liability companies, and other business209 |
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| 252 | 252 | | entities in which a licensee permittee holds more than a 50 percent ownership interest;210 |
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| 253 | 253 | | the term 'family' shall include any person related to the holder of the hemp processor211 |
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| 254 | 254 | | permit within the first degree of consanguinity and affinity as computed according to212 |
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| 255 | 255 | | the canon law and who is claimed as a dependent by the licensee permittee for income213 |
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| 256 | 256 | | tax purposes; and214 |
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| 257 | 257 | | (B) The beneficiaries of a trust shall be considered to have a beneficial interest in any215 |
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| 258 | 258 | | business forming a part of the trust estate."216 |
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| 259 | 259 | | SECTION 7.217 |
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| 260 | 260 | | Said chapter is further amended in Code Section 2-23-6.1, relating to bond requirements,218 |
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| 261 | 261 | | breach of bond, hearing, enforcement, and insufficient bond funds, by revising219 |
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| 262 | 262 | | subsections (a), (d), and (e) as follows:220 |
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| 263 | 263 | | H. B. 1286 |
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| 264 | 264 | | - 9 - 24 LC 55 0231 |
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| 265 | 265 | | "(a) Any applicant for a hemp processor permit shall make and deliver to the |
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| 266 | 266 | | 221 |
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| 267 | 267 | | Commissioner a surety bond executed by a surety corporation authorized to transact222 |
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| 268 | 268 | | business in this state and approved by the Commissioner. Any and all bond applications223 |
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| 269 | 269 | | shall be accompanied by a certificate of good standing issued by the Commissioner of224 |
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| 270 | 270 | | Insurance. If any company issuing a bond shall be removed from doing business in this225 |
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| 271 | 271 | | state, it shall be the duty of the Commissioner of Insurance to notify the Commissioner226 |
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| 272 | 272 | | within 30 days. The bond shall be in such amount as the Commissioner may determine,227 |
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| 273 | 273 | | not exceeding an amount equal to 2 percent of the amount of hemp purchased from hemp |
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| 274 | 274 | | 228 |
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| 275 | 275 | | grower licensees by the permittee in the most recent calendar year; provided, however, that229 |
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| 276 | 276 | | the minimum amount of such bond shall be $300,000.00 and the maximum amount shall230 |
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| 277 | 277 | | be $1 million. Such bond shall be upon a form prescribed or approved by the231 |
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| 278 | 278 | | Commissioner and shall be conditioned to secure the faithful accounting for and payment232 |
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| 279 | 279 | | to hemp grower licensees for hemp purchased by such permittee as well as to secure the233 |
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| 280 | 280 | | permittee's compliance with the requirements of this chapter. Whenever the Commissioner234 |
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| 281 | 281 | | shall determine that a previously approved bond has for any cause become insufficient, the235 |
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| 282 | 282 | | Commissioner may require an additional bond or bonds to be given in compliance with this236 |
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| 283 | 283 | | Code section. Unless the additional bond or bonds are given within the time fixed by237 |
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| 284 | 284 | | written demand therefor, or if the bond of a permittee is canceled, the permit of such238 |
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| 285 | 285 | | permittee shall be immediately revoked by operation of law without notice or hearing, and239 |
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| 286 | 286 | | such permittee shall be ineligible to reapply for such permit for a period of four years after240 |
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| 287 | 287 | | such revocation."241 |
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| 288 | 288 | | "(d) If such settlement is not effected within such time, the Commissioner or the hemp242 |
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| 289 | 289 | | grower licensee may bring an action to enforce the claim. If the hemp grower licensee is243 |
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| 290 | 290 | | not satisfied with the ruling of the Commissioner, he or she may commence and maintain244 |
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| 291 | 291 | | an action against the principal and surety on the bond of the parties complained of as in any245 |
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| 292 | 292 | | civil action.246 |
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| 293 | 293 | | H. B. 1286 |
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| 294 | 294 | | - 10 - 24 LC 55 0231 |
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| 295 | 295 | | (e) If the bond or collateral posted is insufficient to pay in full the valid claims of hemp247 |
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| 296 | 296 | | grower licensees, the Commissioner may direct that the proceeds of such bond shall be248 |
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| 297 | 297 | | divided pro rata among such hemp grower licensees."249 |
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| 298 | 298 | | SECTION 8.250 |
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| 299 | 299 | | Said chapter is further amended by adding a new Code section to read as follows:251 |
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| 300 | 300 | | "2-23-6.2.252 |
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| 301 | 301 | | (a) Except as otherwise provided in this chapter, consideration, issuance, and revocation253 |
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| 302 | 302 | | of retail consumable hemp establishment licenses issued by the department pursuant to this254 |
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| 303 | 303 | | Code section shall be accomplished in accordance with Chapter 5 of this title, and such255 |
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| 304 | 304 | | licenses shall otherwise be governed by such chapter.256 |
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| 305 | 305 | | (b) Applications for a retail consumable hemp establishment license shall be made on a257 |
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| 306 | 306 | | form furnished by the Commissioner and, together with such other information as the258 |
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| 307 | 307 | | Commissioner may require, shall state:259 |
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| 308 | 308 | | (1) The name of the applicant;260 |
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| 309 | 309 | | (2) The business address of the applicant;261 |
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| 310 | 310 | | (3) The complete telephone number and email address of the applicant;262 |
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| 311 | 311 | | (4) The location where the applicant will sell or offer for sale consumable hemp products263 |
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| 312 | 312 | | in this state and whether such location is owned or leased by the applicant; and264 |
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| 313 | 313 | | (5) If the applicant is a business entity, the name of the owners, partners, members, or265 |
|---|
| 314 | 314 | | shareholders of such entity.266 |
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| 315 | 315 | | (c) Retail consumable hemp establishment licenses shall be issued by the department for267 |
|---|
| 316 | 316 | | one calendar year at an annual licensing fee of at least $250.00 but not more268 |
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| 317 | 317 | | than $4,000.00, as established by the Commissioner. The Commissioner may establish269 |
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| 318 | 318 | | separate classes of retail consumable hemp establishment licenses based on the amount of270 |
|---|
| 319 | 319 | | consumable hemp products to be sold by the licensee, and the annual licensing fees271 |
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| 320 | 320 | | H. B. 1286 |
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| 321 | 321 | | - 11 - 24 LC 55 0231 |
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| 322 | 322 | | required by this subsection shall be in different amounts for each such separate class of272 |
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| 323 | 323 | | retail consumable hemp establishment licenses.273 |
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| 324 | 324 | | (d) Retail consumable hemp establishment licenses issued by the department pursuant to274 |
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| 325 | 325 | | this Code section shall be issued in connection with a single retail location where275 |
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| 326 | 326 | | consumable hemp products will be sold or offered for sale to consumers by the licensee.276 |
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| 327 | 327 | | For a person to sell or offer for sale consumable hemp products to consumers at multiple277 |
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| 328 | 328 | | retail locations, such person shall be required to obtain from the department separate retail278 |
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| 329 | 329 | | consumable hemp establishment licenses for each such retail location."279 |
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| 330 | 330 | | SECTION 9.280 |
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| 331 | 331 | | Said chapter is further amended by adding a new Code section to read as follows:281 |
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| 332 | 332 | | "2-23-6.3.282 |
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| 333 | 333 | | (a) Except as otherwise provided in this chapter, consideration, issuance, and revocation283 |
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| 334 | 334 | | of wholesale consumable hemp licenses issued by the department pursuant to this Code284 |
|---|
| 335 | 335 | | section shall be accomplished in accordance with Chapter 5 of this title, and such licenses285 |
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| 336 | 336 | | shall otherwise be governed by such chapter.286 |
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| 337 | 337 | | (b) Applications for a wholesale consumable hemp license shall be made on a form287 |
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| 338 | 338 | | furnished by the Commissioner and, together with such other information as the288 |
|---|
| 339 | 339 | | Commissioner may require, shall state:289 |
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| 340 | 340 | | (1) The name of the applicant;290 |
|---|
| 341 | 341 | | (2) The business address of the applicant;291 |
|---|
| 342 | 342 | | (3) The complete telephone number and email address of the applicant;292 |
|---|
| 343 | 343 | | (4) The location of the facility where the applicant will store consumable hemp products293 |
|---|
| 344 | 344 | | and otherwise operate as a wholesaler of consumable hemp products in this state and294 |
|---|
| 345 | 345 | | whether such facility is owned or leased by the applicant; and295 |
|---|
| 346 | 346 | | (5) If the applicant is a business entity, the name of the owners, partners, members, or296 |
|---|
| 347 | 347 | | shareholders of such entity.297 |
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| 348 | 348 | | H. B. 1286 |
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| 349 | 349 | | - 12 - 24 LC 55 0231 |
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| 350 | 350 | | (c) Wholesale consumable hemp licenses shall be issued by the department for one298 |
|---|
| 351 | 351 | | calendar year at an annual licensing fee of at least $500.00 but not more than $10,000.00,299 |
|---|
| 352 | 352 | | as established by the Commissioner. The Commissioner may establish separate classes of300 |
|---|
| 353 | 353 | | wholesale consumable hemp licenses based on the amount of consumable hemp products301 |
|---|
| 354 | 354 | | to be sold by the licensee, and the annual licensing fees required by this subsection shall302 |
|---|
| 355 | 355 | | be in different amounts for each such separate class of wholesale consumable hemp303 |
|---|
| 356 | 356 | | licenses.304 |
|---|
| 357 | 357 | | (d) Wholesale consumable hemp licenses issued by the department pursuant to this Code305 |
|---|
| 358 | 358 | | section shall be issued in connection with a single facility where the licensee will store306 |
|---|
| 359 | 359 | | consumable hemp products or otherwise operate as a wholesaler of consumable hemp307 |
|---|
| 360 | 360 | | products. For a person to store consumable hemp products or otherwise operate as a308 |
|---|
| 361 | 361 | | wholesaler of consumable hemp products at multiple facilities, such person shall be309 |
|---|
| 362 | 362 | | required to obtain from the department separate wholesale consumable hemp licenses for310 |
|---|
| 363 | 363 | | each such facility."311 |
|---|
| 364 | 364 | | SECTION 10.312 |
|---|
| 365 | 365 | | Said chapter is further amended by adding a new Code section to read as follows:313 |
|---|
| 366 | 366 | | "2-23-6.4.314 |
|---|
| 367 | 367 | | (a) Except as otherwise provided in this chapter, consideration, issuance, and revocation315 |
|---|
| 368 | 368 | | of manufacturer licenses issued by the department pursuant to this Code section shall be316 |
|---|
| 369 | 369 | | accomplished in accordance with Chapter 5 of this title, and such licenses shall otherwise317 |
|---|
| 370 | 370 | | be governed by such chapter.318 |
|---|
| 371 | 371 | | (b) Applications for a manufacturer license shall be made on a form furnished by the319 |
|---|
| 372 | 372 | | Commissioner and, together with such other information as the Commissioner may require,320 |
|---|
| 373 | 373 | | shall state:321 |
|---|
| 374 | 374 | | (1) The name of the applicant;322 |
|---|
| 375 | 375 | | (2) The business address of the applicant;323 |
|---|
| 376 | 376 | | H. B. 1286 |
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| 377 | 377 | | - 13 - 24 LC 55 0231 |
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| 378 | 378 | | (3) The complete telephone number and email address of the applicant;324 |
|---|
| 379 | 379 | | (4) The location of the facility where the applicant will manufacture hemp products in325 |
|---|
| 380 | 380 | | this state and whether such facility is owned or leased by the applicant; and326 |
|---|
| 381 | 381 | | (5) If the applicant is a business entity, the name of the owners, partners, members, or327 |
|---|
| 382 | 382 | | shareholders of such entity.328 |
|---|
| 383 | 383 | | (c) Manufacturer licenses shall be issued by the department for one calendar year at an329 |
|---|
| 384 | 384 | | annual licensing fee of $5,000.00; provided, however, that any person who holds a hemp330 |
|---|
| 385 | 385 | | processor permit issued by the department under this chapter shall not be required to pay331 |
|---|
| 386 | 386 | | the annual licensing fee provided for in this subsection in order for such person to be issued332 |
|---|
| 387 | 387 | | a manufacturer license by the department under this Code section.333 |
|---|
| 388 | 388 | | (d) Manufacturer licenses issued by the department pursuant to this Code section shall be334 |
|---|
| 389 | 389 | | issued in connection with a single facility where the licensee will manufacture hemp335 |
|---|
| 390 | 390 | | products. For a person to manufacture hemp products at multiple facilities, such person336 |
|---|
| 391 | 391 | | shall be required to obtain from the department separate manufacturer licenses for each337 |
|---|
| 392 | 392 | | such facility."338 |
|---|
| 393 | 393 | | SECTION 11.339 |
|---|
| 394 | 394 | | Said chapter is further amended by adding a new Code section to read as follows:340 |
|---|
| 395 | 395 | | "2-23-6.5.341 |
|---|
| 396 | 396 | | (a) Any person desiring to perform in this state tests or analyses of any plant within the342 |
|---|
| 397 | 397 | | genus Cannabis, including but not limited to hemp, or any product made or derived from343 |
|---|
| 398 | 398 | | such plant, including but not limited to hemp products and consumable hemp products,344 |
|---|
| 399 | 399 | | shall register with the department as a registered laboratory and pay a one-time registration345 |
|---|
| 400 | 400 | | fee of $250.00.346 |
|---|
| 401 | 401 | | (b) Except as otherwise provided in this chapter, consideration, acceptance, and revocation347 |
|---|
| 402 | 402 | | of a registration made pursuant to this Code section shall be accomplished in accordance348 |
|---|
| 403 | 403 | | H. B. 1286 |
|---|
| 404 | 404 | | - 14 - 24 LC 55 0231 |
|---|
| 405 | 405 | | with Chapter 5 of this title, and such registration shall otherwise be governed by such349 |
|---|
| 406 | 406 | | chapter.350 |
|---|
| 407 | 407 | | (c) Registration with the department as a registered laboratory shall be made on a form and351 |
|---|
| 408 | 408 | | in a manner as prescribed by the Commissioner. Such registration shall include, together352 |
|---|
| 409 | 409 | | with such other information as the Commissioner may require, the following information:353 |
|---|
| 410 | 410 | | (1) The name of the registrant;354 |
|---|
| 411 | 411 | | (2) The business address of the registrant;355 |
|---|
| 412 | 412 | | (3) The complete telephone number and email address of the registrant;356 |
|---|
| 413 | 413 | | (4) The location of the laboratory facility where the registrant will perform tests and357 |
|---|
| 414 | 414 | | analyses of any plant within the genus Cannabis or any product made or derived from358 |
|---|
| 415 | 415 | | such plant; and359 |
|---|
| 416 | 416 | | (5) If the registrant is a business entity, the name of the owner, partners, members, or360 |
|---|
| 417 | 417 | | shareholders of such entity.361 |
|---|
| 418 | 418 | | (d) The department shall not accept a registration under this Code section unless the362 |
|---|
| 419 | 419 | | registrant demonstrates, to the department's satisfaction, that it is not affiliated with any363 |
|---|
| 420 | 420 | | licensee or permittee and has been accredited pursuant to the standards of the International364 |
|---|
| 421 | 421 | | Organization for Standardization for the competence, impartiality, and consistent operation365 |
|---|
| 422 | 422 | | of laboratories.366 |
|---|
| 423 | 423 | | (e) Registrations made under this Code section shall be in connection with a single367 |
|---|
| 424 | 424 | | laboratory facility. For a person to perform tests or analyses of any plant within the genus368 |
|---|
| 425 | 425 | | Cannabis or any product made or derived from such plant at multiple laboratory facilities,369 |
|---|
| 426 | 426 | | such person shall be required to register each such laboratory facility with the department370 |
|---|
| 427 | 427 | | under this Code section.371 |
|---|
| 428 | 428 | | (f) A registered laboratory, or any person employed by a registered laboratory, shall not372 |
|---|
| 429 | 429 | | be subject to arrest, prosecution, or any civil penalty for possessing, or having under his or373 |
|---|
| 430 | 430 | | her control, THC or marijuana, as such term is defined in Code Section 16-13-21, provided374 |
|---|
| 431 | 431 | | that such possession or control occurs in connection with a test or analysis performed:375 |
|---|
| 432 | 432 | | H. B. 1286 |
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| 433 | 433 | | - 15 - 24 LC 55 0231 |
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| 434 | 434 | | (1) On behalf of:376 |
|---|
| 435 | 435 | | (A) A person licensed under this chapter or under Article 9 of Chapter 12 of Title 16;377 |
|---|
| 436 | 436 | | or378 |
|---|
| 437 | 437 | | (B) The department or the Georgia Access to Medical Cannabis Commission; and379 |
|---|
| 438 | 438 | | (2) In accordance with the rules and regulations promulgated by the department pursuant380 |
|---|
| 439 | 439 | | to this chapter.381 |
|---|
| 440 | 440 | | (g) The department shall provide by rule and regulation a procedure by which registered382 |
|---|
| 441 | 441 | | laboratories shall dispose of plants or products within their possession that do not comply383 |
|---|
| 442 | 442 | | with the provisions of this chapter or are otherwise unlawful under the laws of this state."384 |
|---|
| 443 | 443 | | SECTION 12.385 |
|---|
| 444 | 444 | | Said chapter is further amended in Code Section 2-23-7, relating to business agreements,386 |
|---|
| 445 | 445 | | transportation, and reimbursement for crop destruction, by revising subsections (a) and (c)387 |
|---|
| 446 | 446 | | as follows:388 |
|---|
| 447 | 447 | | "(a) Every permittee shall at all times have in place written agreements with each hemp389 |
|---|
| 448 | 448 | | grower licensee governing their business relationship. Each permittee shall provide a copy390 |
|---|
| 449 | 449 | | of each such agreement, and any amendments thereto, to the department within ten days391 |
|---|
| 450 | 450 | | of execution of each such agreement or amendment thereto."392 |
|---|
| 451 | 451 | | "(c) Until December 31, 2022, when a hemp grower licensee disposes of a lot pursuant to393 |
|---|
| 452 | 452 | | Code Section 2-23-8, the permittee with whom the hemp grower licensee has entered into394 |
|---|
| 453 | 453 | | an agreement pursuant to this Code section shall reimburse the hemp grower licensee for395 |
|---|
| 454 | 454 | | half of the amount of the combined value of the seed, fertilizer, labor costs, and any other396 |
|---|
| 455 | 455 | | reasonable and customary input expenses incurred with such disposed of lot."397 |
|---|
| 456 | 456 | | SECTION 13.398 |
|---|
| 457 | 457 | | Said chapter is further amended in Code Section 2-23-8, relating to sampling and random399 |
|---|
| 458 | 458 | | testing of hemp, by revising paragraph (1) of subsection (a) as follows:400 |
|---|
| 459 | 459 | | H. B. 1286 |
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| 460 | 460 | | - 16 - 24 LC 55 0231 |
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| 461 | 461 | | "(a)(1) The department shall have the right, either through its own personnel or through |
|---|
| 462 | 462 | | 401 |
|---|
| 463 | 463 | | an independent contractor as provided for in Code Section 2-23-9, to collect samples of402 |
|---|
| 464 | 464 | | hemp for testing as provided for in this chapter from the fields and greenhouses of all403 |
|---|
| 465 | 465 | | hemp grower |
|---|
| 466 | 466 | | licensees. Samples shall be representative of each lot with the same global404 |
|---|
| 467 | 467 | | positioning coordinates. No hemp shall be harvested until such samples are collected.405 |
|---|
| 468 | 468 | | Such testing, and the harvesting of the hemp tested, shall be conducted in compliance406 |
|---|
| 469 | 469 | | with this chapter and with regulations promulgated by the department."407 |
|---|
| 470 | 470 | | SECTION 14.408 |
|---|
| 471 | 471 | | Said chapter is further amended by revising Code Section 2-23-10, relating to enforcement,409 |
|---|
| 472 | 472 | | corrective action plan, revocation of licenses, and reporting of licensees and permittees to the410 |
|---|
| 473 | 473 | | Attorney General, as follows:411 |
|---|
| 474 | 474 | | "2-23-10.412 |
|---|
| 475 | 475 | | (a) A violation of a plan authorized by Code Section 2-23-11 and approved by the413 |
|---|
| 476 | 476 | | secretary of agriculture of the United States by a licensee or permittee shall be subject to414 |
|---|
| 477 | 477 | | enforcement in accordance with this Code section.415 |
|---|
| 478 | 478 | | (b)(1) A hemp grower licensee or permittee under this chapter shall be required to416 |
|---|
| 479 | 479 | | conduct a corrective action plan if the Commissioner determines that the hemp grower417 |
|---|
| 480 | 480 | | licensee or permittee has negligently violated this chapter or has violated rules and418 |
|---|
| 481 | 481 | | regulations promulgated by the department pursuant to this chapter by:419 |
|---|
| 482 | 482 | | (A) Failing to provide a legal description and global positioning coordinates sufficient420 |
|---|
| 483 | 483 | | for locating fields and greenhouses the hemp grower licensee uses to cultivate and421 |
|---|
| 484 | 484 | | harvest hemp or facilities at which the permittee processes hemp;422 |
|---|
| 485 | 485 | | (B) Failing to properly obtain a hemp grower license or permit from the department;423 |
|---|
| 486 | 486 | | (C) Producing Cannabis sativa L. with more than the federally defined THC level for424 |
|---|
| 487 | 487 | | hemp; or425 |
|---|
| 488 | 488 | | (D) Otherwise negligently violating this chapter.426 |
|---|
| 489 | 489 | | H. B. 1286 |
|---|
| 490 | 490 | | - 17 - 24 LC 55 0231 |
|---|
| 491 | 491 | | (2) A corrective action plan required by this Code section shall include: |
|---|
| 492 | 492 | | 427 |
|---|
| 493 | 493 | | (A) A reasonable date by which the hemp grower |
|---|
| 494 | 494 | | licensee or permittee shall correct428 |
|---|
| 495 | 495 | | the negligent violation; and429 |
|---|
| 496 | 496 | | (B) A requirement that the hemp grower licensee or permittee shall periodically report430 |
|---|
| 497 | 497 | | to the Commissioner on the compliance status of the hemp grower licensee or permittee431 |
|---|
| 498 | 498 | | with the corrective action plan for a period of not less than two calendar years after the432 |
|---|
| 499 | 499 | | violation.433 |
|---|
| 500 | 500 | | (c) Except as provided in subsection (d) of this Code section, a hemp grower licensee or434 |
|---|
| 501 | 501 | | permittee that negligently violates this chapter or rules and regulations promulgated by the435 |
|---|
| 502 | 502 | | department pursuant to this chapter shall not as a result be subject to any criminal or civil436 |
|---|
| 503 | 503 | | enforcement action by any government agency other than the enforcement action437 |
|---|
| 504 | 504 | | authorized under subsection (b) of this Code section.438 |
|---|
| 505 | 505 | | (d) A hemp grower licensee or permittee that negligently violates the corrective action439 |
|---|
| 506 | 506 | | plan under subsection (b) of this Code section this chapter or the rules and regulations440 |
|---|
| 507 | 507 | | promulgated by the department pursuant to this chapter three times in a five-year period441 |
|---|
| 508 | 508 | | shall have its hemp grower license or permit issued pursuant to this chapter immediately442 |
|---|
| 509 | 509 | | revoked and shall be ineligible to reapply for a hemp grower license or permit for a period443 |
|---|
| 510 | 510 | | of five years after the date of the third violation.444 |
|---|
| 511 | 511 | | (e) If the Commissioner determines that a hemp grower licensee or permittee has violated445 |
|---|
| 512 | 512 | | state law with a culpable mental state greater than negligence, the Commissioner shall446 |
|---|
| 513 | 513 | | immediately report the hemp grower licensee or permittee to the United States Attorney447 |
|---|
| 514 | 514 | | General and the state Attorney General, and subsection (a) of this Code section shall not448 |
|---|
| 515 | 515 | | apply to the violation.449 |
|---|
| 516 | 516 | | (f) Laws enacting criminal offenses, including laws provided for in Title 16, not in conflict450 |
|---|
| 517 | 517 | | with this chapter shall continue to be enforceable and of full force and effect."451 |
|---|
| 518 | 518 | | H. B. 1286 |
|---|
| 519 | 519 | | - 18 - 24 LC 55 0231 |
|---|
| 520 | 520 | | SECTION 15. |
|---|
| 521 | 521 | | 452 |
|---|
| 522 | 522 | | Said chapter is further amended by revising Code Section 2-23-12, relating to rules and453 |
|---|
| 523 | 523 | | regulations, as follows:454 |
|---|
| 524 | 524 | | "2-23-12.455 |
|---|
| 525 | 525 | | The department, in consultation with the Georgia Bureau of Investigation, shall |
|---|
| 526 | 526 | | may456 |
|---|
| 527 | 527 | | promulgate rules and regulations as necessary to implement the provisions of this chapter.457 |
|---|
| 528 | 528 | | Such rules and regulations shall include the plan provided for in Code Section 2-23-11458 |
|---|
| 529 | 529 | | upon the approval of such plan by the secretary of agriculture of the United States."459 |
|---|
| 530 | 530 | | SECTION 16.460 |
|---|
| 531 | 531 | | All laws and parts of laws in conflict with this Act are repealed.461 |
|---|
| 532 | 532 | | H. B. 1286 |
|---|
| 533 | 533 | | - 19 - |
|---|