23 LC 51 0363S H. B. 458 (SUB) - 1 - The House Committee on Agriculture and Consumer Affairs offers the following substitute to HB 458: A BILL TO BE ENTITLED AN ACT To amend Chapter 23 of Title 2 of the Official Code of Georgia Annotated, relating to hemp1 farming, so as to provide for definitions; to provide for license and permit fees, surety bonds,2 and eligibility; to provide for and require retail consumable hemp establishment licenses and3 wholesale consumable hemp establishment licenses; to allow persons convicted of any4 misdemeanor or a felony not related to a state or federally controlled substance within ten5 years of the application date to grow and process industrial hemp; to provide for exemptions6 for criminal background checks, federal criminal history reports, and classifiable7 electronically recorded fingerprints upon permit and license renewals; to provide for8 compliance with applicable laws; to require package requirements, labeling, and certificates9 of analysis for hemp products; to provide for ongoing reporting; to amend Chapter 12 of10 Title 16 of the Official Code of Georgia Annotated, relating to offenses against public health11 and morals, so as to prohibit the purchase of, sale of, and the offering of samples of hemp12 products by or to any individual under the age of 21 years old; to provide for inspections,13 enforcement, and penalties for violations; to provide for venue; to provide for rules and14 regulations; to provide for related matters; to provide for effective dates; to repeal conflicting15 laws; and for other purposes.16 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:17 23 LC 51 0363S H. B. 458 (SUB) - 2 - SECTION 1.18 Said chapter is further amended in Code Section 2-23-3, relating to definitions, by revising19 paragraph (6) and paragraph (12) and by adding new paragraphs to read as follows:20 "(1.2) 'Consumable hemp products' means a hemp product intended to be ingested,21 absorbed, or inhaled by humans or animals."22 "(3.1) 'Full panel certificate of analysis' means a document, produced by a laboratory23 which is unaffiliated with the processor and which has been accredited pursuant to the24 standards of the International Organization for Standardization for the competence,25 impartiality, and consistent operation of laboratories, attesting to the composition of a26 product, and which shall include a designation indicating whether the product passed or27 failed."28 "(6) 'Hemp products' means all products with the federally defined THC level for hemp29 derived from, or made by, processing hemp plants or plant parts that are prepared in a30 form available for legal commercial sale, but not including food products infused with31 THC unless approved by the United States Food and Drug Administration all finished32 products with a concentration of delta-9-THC and esters of delta-9-THC of not more33 than 0.3 percent on a dry-weight basis that is derived from or made by processing a hemp34 plant or plant part and prepared in a form available for commercial sale. Hemp products35 shall not be considered controlled substances solely due to the presence of hemp or hemp36 derived cannabinoids.37 (6.1) 'Industrial hemp product' means any hemp product that is not a consumable hemp38 product."39 "(8.1) 'Passing,' with regard to a full-panel certificate of analysis, means that the40 full-panel certificate of analysis attests to the final packaged product's composition of the41 following grouping of assays and, where applicable, that the final packaged product42 contains equal to or less than the maximum acceptable contaminant levels set forth:43 (A) Cannabinoids:44 23 LC 51 0363S H. B. 458 (SUB) - 3 - (i) Total tetrahydrocannabinol (THC) sum percentage by weight of45 Delta-9-tetrahydrocannabinol; and Delta-9-tetrahydrocannabinolicacid:46 (ii) Cannabidiol (CBD);47 (iii) Cannabidiolic Acid (CBDA);48 (iv) Cannabigerol (CBG);49 (v) Cannabigerol Acid (CBGA);50 (vi) Cannabinol (CBN);51 (vii) Delta-8-tetrahydrocannabinol (Delta-8-THC);52 (viii) Any isomer of Delta-9-THC, (e.g., Delta-8-THC, Delta-10-THC,53 Delta-11-THC); and54 (ix) Any ester of Delta-9-T HC (e.g. THC-O) or Delta-9(11)55 exo-tetrahydrocannabinol (Exo-THC);56 (B) Heavy metals:57 (i) Arsenic, in an amount less than 1.5 parts per million;58 (ii) Cadmium, in an amount less than 0.5 parts per million;59 (iii) Chromium, in an amount less than 0.5 parts per million;60 (iv) Lead, in an amount less than 0.5 parts per million; and61 (v) Mercury, in an amount less than 0.3 parts per million;62 (C) Residual pesticides:63 (i) Abamectin, in an amount less than 0.3 parts per million;64 (ii) Acephate, in an amount less than 5 parts per million;65 (iii) Acequinocyl, in an amount less than 4 parts per million;66 (iv) Acetamiprid, in an amount less than 5 parts per million;67 (v) Aldicarb, in an amount less than 0.01 parts per million;68 (vi) Azoxystrobin, in an amount less than 40 parts per million;69 (vii) Bifenazate, in an amount less than 5 parts per million;70 (viii) Bifenthrin, in an amount less than 0.5 parts per million;71 23 LC 51 0363S H. B. 458 (SUB) - 4 - (ix) Chlormequat Chloride, in an amount less than 0.01 parts per million;72 (x) Chlordane, in an amount less than 0.01 parts per million;73 (xi) Chlorpyrifos, in an amount less than 0.01 parts per million;74 (xii) Cyfluthrin, in an amount less than 1 parts per million;75 (xiii) Daminozide, in an amount less than 0.01 parts per million;76 (xiv) Diazinon, in an amount less than 0.2 parts per million;77 (xv) Dichlorvos, in an amount less than 0.01 parts per million;78 (xvi) Dimethoate, in an amount less than 0.2 parts per million;79 (xvii) Etoxazole, in an amount less than 1.5 parts per million;80 (xviii) Fenoxycarb, in an amount less than 0.01 parts per million;81 (xix) Fenhexamid, in an amount less than 10 parts per million;82 (xx) Fluoxastrobin, in an amount less than 0.01 parts per million;83 (xxi) Fipronil, in an amount less than 0.01 parts per million;84 (xxii) Imazalil, in an amount less than 0.01 parts per million;85 (xxiii) Imidacloprid, in an amount less than 3 parts per million;86 (xxiv) Malathion, in an amount less than 5 parts per million;87 (xxv) Myclobutanil, in an amount less than 9 parts per million;88 (xxvi) Paclobutrazol, in an amount less than 0.01 parts per million;89 (xxvii) Permethrin, in an amount less than 20 parts per million;90 (xxviii) Spirotetramat, in an amount less than 13 parts per million;91 (xxix) Thiacloprid, in an amount less than 0.01 parts per million; and92 (xxx) Trifloxystrobin, in an amount less than 30 parts per million;93 (D) Residual solvents:94 (i) Acetones, in an amount less than 5000 parts per million;95 (ii) Butanes, in an amount less than 5000 parts per million;96 (iii) Benzene, in an amount less than 1.0 parts per million;97 (iv) Methanol, in an amount less than 3000 parts per million;98 23 LC 51 0363S H. B. 458 (SUB) - 5 - (v) Ethanol, in an amount less than 5000 parts per million;99 (vi) Heptanes, in an amount less than 5000 parts per million;100 (vii) Hexane, in an amount less than 10 parts per million;101 (viii) Toluene, in an amount less than 890 parts per million; and102 (ix) Total Xylenes (m,o,p-xylene), in an amount less than 1.0 parts per million;103 (E) Any visible foreign or extraneous material that is not intended to be part of the104 product being produced, including, but not limited to, mold, hair, insects, metal, or105 plastic;106 (F) Microbiological impurities, meeting the following colony-forming unit in per107 gram (CFU/g) levels:108 (i) Total viable aerobic bacteria, not exceeding 105 CFU/g;109 (ii) Total Yeast and Mold, not exceeding 10,000 CFU/g;110 (iii) Total Coliforms, not exceeding 103 CFU/g;111 (iv) Bile-tolerant Gram Negative Bacteria, not exceeding 103 CFU/g;112 (v) E. coli (pathogenic strains) and Salmonella, not detected in 1 gram; and113 (vi) Aspergillus fumigatus, Aspergillus flavus, Aspergillus niger, less than 1 CFU/g;114 (G) Mycotoxins:115 (i) Aflatoxin B1 at less than 20 µg (micrograms) of any mycotoxin per kg of material;116 (ii) Aflatoxin B2 at less than 20 µg (micrograms) of any mycotoxin per kg of117 material;118 (iii) Aflatoxin G1 at less than 20 µg (micrograms) of any mycotoxin per kg of119 material;120 (iv) Aflatoxin G 2at less than 20 µg (micrograms) of any mycotoxin per kg of121 material; and122 (v) Ochratoxin A at less than 20 µg (micrograms) of any mycotoxin per kg of123 material;124 23 LC 51 0363S H. B. 458 (SUB) - 6 - (H) Vitamin E acetate in an amount less than 100 parts per million in an inhalable125 hemp product."126 "(10.1) 'QR code' means a quick response code that is a type of machine-readable,127 two-dimensional barcode that stores information about a product."128 "(12) 'Retail consumable hemp establishment license' means a license issued by the129 department under the authority of this chapter to an establishment that prepares or sells130 prepackaged consumable hemp products to an end consumer.131 (13) 'THC' means tetrahydrocannabinol, tetrahydrocannabinolic acid, or a combination132 of tetrahydrocannabinol and tetrahydrocannabinolic acid.133 (14) 'Wholesale consumable hemp establishment license' means a license issued by the134 department under the authority of this chapter to an establishment that manufactures,135 processes, packs, holds, or prepares consumable hemp products for sale to other136 businesses."137 SECTION 2.138 Said chapter is further amended in Code Section 2-23-5, relating to procedure for licensing,139 fees, licensing requirements, and limitations on licenses, by revising paragraph (2) of140 subsection (a) and subsection (c) as follows:141 "(2) Hemp grower licenses shall be issued for one calendar year at an annual license fee142 of $50.00 per acre cultivated up to a maximum license fee of $5,000.00 $1,000.00."143 "(c)(1) Upon receipt of an application for a hemp grower license, the department shall144 conduct a criminal background check and is authorized to obtain a federal criminal145 history report in accordance with paragraph (2) of this subsection for an individual or, if146 the applicant is a business entity, all key participants seeking to obtain a hemp grower147 license. For renewal of any previously issued license, a background check shall be148 required every three years.149 23 LC 51 0363S H. B. 458 (SUB) - 7 - (2) At least one set of classifiable electronically recorded fingerprints of the individual150 applicant or, if the applicant is a business entity, one set of classifiable electronically151 recorded fingerprints of each key participant shall be submitted to the department in152 accordance with the fingerprint system of identification established by the director of the153 Federal Bureau of Investigation. The department shall transmit the fingerprints to the154 Georgia Crime Information Center, which shall submit the fingerprints to the Federal155 Bureau of Investigation for a search of bureau records and an appropriate report and shall156 promptly conduct a search of state records based upon the fingerprints. After receiving157 the report from the Georgia Crime Information Center and the Federal Bureau of158 Investigation, the department shall review the record for all individuals or key159 participants, as applicable. For renewal of any previously issued license, such set of160 classifiable electronically recorded fingerprints shall not be required for any individual161 applicant or key participant who has already submitted such.162 (3) No license shall be issued to any applicant who has been convicted of a misdemeanor163 involving sale of or trafficking in a controlled substance or a felony related to a state or164 federally controlled substance within ten years of the date of application or who165 materially falsifies any information contained in a license application.166 (4) Upon receipt of an application for renewal of any previously issued license, the167 department may require a signed affidavit stating that the licensee has not had a material168 change to his or her permit eligibility."169 SECTION 3.170 Said chapter is further amended in Code Section 2-23-6, relating to procedure for permitting171 and limitations on permits and interests, by revising subsections (c) through (g) as follows:172 "(c)(1) Upon receipt of an application for a hemp processor permit, the department shall173 conduct a criminal background check and is authorized to obtain a federal criminal174 history report in accordance with paragraph (2) of this subsection for an individual or, if175 23 LC 51 0363S H. B. 458 (SUB) - 8 - the applicant is a business entity, all key participants seeking to obtain a hemp processor176 permit. For renewal of any previously issued permit, such criminal background check177 or federal criminal history report shall be required every three years for each individual178 applicant or key participant who has previously undergone such.179 (2) At least one set of classifiable electronically recorded fingerprints of the individual180 applicant or, if the applicant is a business entity, one set of classifiable electronically181 recorded fingerprints of each key participant shall be submitted to the department in182 accordance with the fingerprint system of identification established by the director of the183 Federal Bureau of Investigation. The department shall transmit the fingerprints to the184 Georgia Crime Information Center, which shall submit the fingerprints to the Federal185 Bureau of Investigation for a search of bureau records and an appropriate report and shall186 promptly conduct a search of state records based upon the fingerprints. After receiving187 the report from the Georgia Crime Information Center and the Federal Bureau of188 Investigation, the department shall review the record for all individuals or key189 participants, as applicable. For renewal of any previously issued permit, such set of190 classifiable electronically recorded fingerprints shall not be required for any individual191 applicant or key participant who has already submitted such.192 (3) No permit shall be issued to any applicant who has been convicted of a misdemeanor193 involving sale of or trafficking in a controlled substance or a felony related to a state or194 federally controlled substance within ten years of the date of application or who195 materially falsifies any information contained in a license application.196 (d) The department shall annually accept applications for hemp processor permits to be197 issued by the department and renew on an annual basis.198 (e) Hemp processor permits shall be issued for one five calendar year years at an annual199 a permit fee of $25,000.00, to be paid in annual installments of $5,000.00, so long as no200 administrative action has been taken by the department regarding such permittee under this201 chapter. If annual permit fee installments are not paid according to the preapproved202 23 LC 51 0363S H. B. 458 (SUB) - 9 - schedule, the department may revoke the permit. The department may annually require a203 signed affidavit stating that the permittee has not had a material change to his or her permit204 eligibility.205 (f) Issuance of any hemp processor permit shall be conditioned upon the permittee's206 compliance with Code Section 2-23-7 prior to initiating hemp processing activities.207 (g) A permittee may also apply for and be issued no more than one hemp grower license."208 SECTION 4.209 Said chapter is further amended in Code Section 2-23-6.1, relating to procedure for210 permitting and limitations on permits and interests, by revising subsection (a) as follows:211 "(a) Any applicant for a hemp processor permit shall make and deliver to the212 Commissioner a surety bond executed by a surety corporation authorized to transact213 business in this state and approved by the Commissioner. Any and all bond applications214 shall be accompanied by a certificate of good standing issued by the Commissioner of215 Insurance. If any company issuing a bond shall be removed from doing business in this216 state, it shall be the duty of the Commissioner of Insurance to notify the Commissioner217 within 30 days. The bond shall be in such amount as the Commissioner may determine,218 not exceeding an amount equal to 2 percent of the amount of hemp purchased from219 licensees by the permittee in the most recent calendar year; provided, however, that the220 minimum amount of such bond shall be $300,000.00 and the maximum amount shall be221 $1 million $50,000.00. Such bond shall be upon a form prescribed or approved by the222 Commissioner and shall be conditioned to secure the faithful accounting for and payment223 to licensees for hemp purchased by such permittee as well as to secure the permittee's224 compliance with the requirements of this chapter. Whenever the Commissioner shall225 determine that a previously approved bond has for any cause become insufficient, the226 Commissioner may require an additional bond or bonds to be given in compliance with this227 Code section. Unless the additional bond or bonds are given within the time fixed by228 23 LC 51 0363S H. B. 458 (SUB) - 10 - written demand therefor, or if the bond of a permittee is canceled, the permit of such229 permittee shall be immediately revoked by operation of law without notice or hearing, and230 such permittee shall be ineligible to reapply for such permit for a period of four years after231 such revocation."232 SECTION 5.233 Said chapter is further amended by adding a new Code section to read as follows:234 "2-23-6.2.235 (a) A retail consumable hemp establishment license shall be issued by the department.236 Such license shall be issued for one calendar year at an annual permit fee of $250.00.237 (b) A wholesale consumable hemp establishment license shall be issued by the department.238 Such license shall be issued for one calendar year at an annual permit fee of $1,500.00.239 (c) No retail establishment shall sell or offer for sale any consumable hemp product in this240 state without first obtaining a retail consumable hemp establishment license issued by the241 department.242 (d) No person shall act as a wholesaler or distributer of consumable hemp products in this243 state without first obtaining a wholesale consumable hemp establishment license issued by244 the department."245 SECTION 6.246 Said chapter is further amended by adding new Code sections to read as follows:247 "2-23-9.1.248 (a) No consumable hemp product shall be sold or otherwise distributed in this state unless249 the manufacturer has, within the last 12 months, contracted for a full-panel certificate of250 analysis to be conducted on such product and such analysis has been designated as passing.251 (b) Any consumable hemp product sold or otherwise distributed in this state shall bear252 conspicuous labeling providing the information from a passing certificate of analysis253 23 LC 51 0363S H. B. 458 (SUB) - 11 - conducted on the product within the last 12 months or allowing a consumer to access such254 information using a QR code.255 (c) The department shall randomly test consumable hemp products available for purchase256 at retail consumable hemp establishments to ensure compliance with this Code section.257 Such testing shall be conducted in compliance with this chapter and with regulations258 promulgated by the department.259 (d) In the event that a test sample reveals a concentration of delta-9-THC and esters of260 delta-9-THC of more than 0.3 percent on a dry-weight basis, all related hemp products261 shall be disposed of in compliance with this chapter and with regulations promulgated by262 the department.263 2-23-9.2.264 Any consumable hemp product shall have a maximum total concentration of any265 combination of delta-9-THC, isomers of delta-9-THC, and esters of delta-9-THC of 25mg266 per individual dose and 500mg per individual package."267 SECTION 7.268 Said chapter is further amended in Code Section 2-23-11, relating to plan for regulation and269 approval, by adding a new subsection to read as follows:270 "(c) The department may submit an amended plan to the secretary of agriculture of the271 United States if or when required by any amendment to this chapter, the rules and272 regulations promulgated by the department pursuant to this chapter, or any federal law or273 regulation."274 SECTION 8.275 Said chapter is further amended in Code Section 2-23-12, relating to rules and regulations,276 as follows:277 23 LC 51 0363S H. B. 458 (SUB) - 12 - "2-23-12.278 The department, in consultation with the Georgia Bureau of Investigation, shall may279 promulgate rules and regulations as necessary to implement the provisions of this chapter.280 Such rules and regulations shall include the plan provided for in Code Section 2-23-11281 upon the approval of such plan by the secretary of agriculture of the United States."282 SECTION 9.283 Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to offenses against284 public health and morals, is amended by adding a new article to read as follows:285 "ARTICLE 10286 16-12-240.287 As used in this article, the term:288 (1) 'Community service' means a public service which an individual under the age of 21289 years might appropriately be required to perform as punishment for certain offenses290 provided for in this article as determined by a court of competent jurisdiction.291 (2) 'Consumable hemp products' has the same meaning as provided in Code292 Section 2-23-3.293 (3) 'Person' means any natural person or any firm, partnership, company, corporation, or294 other entity.295 (4) 'Proper identification' means any document issued by a governmental agency that296 contains a description of an individual, such individual's photograph, or both; provides297 such individual's date of birth; and includes, without being limited to, a passport, military298 identification card, driver's license, or an identification card authorized under Code299 Sections 40-5-100 through 40-5-104. Proper identification shall not include a birth300 certificate.301 23 LC 51 0363S H. B. 458 (SUB) - 13 - 16-12-241.302 (a)(1) It shall be unlawful for any person to knowingly:303 (A) Sell or barter, directly or indirectly, any consumable hemp product to any304 individual under the age of 21 years;305 (B) Purchase any consumable hemp product for any individual under the age of 21306 years; or307 (C) Advise, counsel, or compel any individual under the age of 21 years to smoke,308 inhale, chew, or use consumable hemp products.309 (2)(A) The prohibition contained in paragraph (1) of this subsection shall not apply310 with respect to the sale of consumable hemp products by a person when such person has311 been furnished with proper identification showing that the individual to whom the312 consumable hemp products are sold is 21 years of age or older.313 (B) In any case where a reasonable or prudent person could reasonably be in doubt as314 to whether or not the individual to whom consumable hemp products are to be sold or315 otherwise furnished is 21 years of age or older, it shall be the duty of the person selling316 or otherwise furnishing such consumable hemp products to request to see and to be317 furnished with proper identification in order to verify the age of such individual. The318 failure to make such request and verification in any case where the individual to whom319 the consumable hemp products are sold or otherwise furnished is less than 21 years of320 age may be considered by the trier of fact in determining whether the person who sold321 or otherwise furnished such consumable hemp products did so knowingly.322 (3) Any person that violates this subsection shall be guilty of a misdemeanor.323 (b)(1) It shall be unlawful for any individual under the age of 21 years to:324 (A) Purchase, attempt to purchase, or possess for personal use any consumable hemp325 products; or326 (B) Misrepresent his or her identity or age or use any false identification for the327 purpose of purchasing or procuring any consumable hemp products.328 23 LC 51 0363S H. B. 458 (SUB) - 14 - (2) An individual under the age of 21 years who commits an offense provided for in329 paragraph (1) of this subsection or in paragraph (1) of subsection (a) of this Code section330 shall be punished by requiring the performance of community service not to exceed 20331 hours that may be related to the awareness of the health hazards of consumable hemp332 product use.333 16-12-242.334 (a) Any person owning or operating a place of business in which consumable hemp335 products are sold or offered for sale shall post in a conspicuous place a sign which shall336 contain the following statement:337 'SALE OF CONSUMABLE HEMP PRODUCTS TO INDIVIDUALS UNDER 21338 YEARS OF AGE IS PROHIBITED BY LAW.'339 Such sign shall be printed in letters of at least one-half inch in height.340 (b) Any person that fails to comply with the requirements of subsection (a) of this Code341 section shall be guilty of a misdemeanor.342 16-12-243.343 (a) As used in this Code section, the term 'consumable hemp product sample' means a344 consumable hemp product distributed to members of the general public at no cost for345 purposes of promoting the product.346 (b) It shall be unlawful for any person to distribute any consumable hemp product sample347 to any individual under the age of 21 years.348 (c) A person distributing consumable hemp product samples shall require proof of age349 from a prospective recipient in any case where a reasonable or prudent person could350 conclude on the basis of appearance that such prospective recipient may be under the age351 of 21 years.352 23 LC 51 0363S H. B. 458 (SUB) - 15 - (d) It shall be unlawful for any individual under the age of 21 years to receive or attempt353 to receive any consumable hemp product sample.354 (e) No person shall distribute consumable hemp product samples on any public street,355 sidewalk, or park within 500 feet of any school or playground when such facilities are356 being used primarily by individuals under the age of 21 years.357 (f) A violation of subsection (b), (c), or (e) of this Code section shall be punished as a358 misdemeanor. A violation of subsection (d) of this Code section shall be punished as359 provided for in paragraph (2) of subsection (b) of Code Section 16-12-171.360 16-12-244.361 (a) The provisions of this article shall be enforced through actions brought in any court of362 competent jurisdiction by the prosecuting district attorney for the county in which the363 alleged violation occurred as well as through administrative citations issued by special364 agents or enforcement officers of the Commissioner of Agriculture. Any fine collected for365 a violation of such provisions shall be paid to the clerk of the court of the jurisdiction in366 which the violation occurred. Upon receipt of a fine for any violation of such provision,367 such clerk shall promptly notify the Commissioner of Agriculture of the violation.368 (b) The Commissioner of Agriculture, acting through special agents or enforcement369 officers, shall annually conduct random, unannounced inspections at locations where370 consumable hemp products are sold or distributed to ensure compliance with this article.371 Individuals under the age of 21 years may be enlisted to test compliance with this article;372 provided, however, that such individuals may be used to test compliance with this article373 only if the testing is conducted under the direct supervision of such special agents or374 enforcement officers and written parental consent for such individuals has been provided.375 Any other use of individuals under the age of 21 years to test compliance with this article376 or any other similar provisions shall be unlawful, and the person or persons responsible for377 such use shall be subject to the penalties prescribed in this article.378 23 LC 51 0363S H. B. 458 (SUB) - 16 - 16-12-245.379 The Commissioner of Agriculture is authorized to make reasonable rules and regulations380 for the administration and enforcement of this article. The Commissioner of Agriculture381 may designate employees of the Department of Agriculture for the purpose of382 administering and enforcing this article and may delegate to employees of such department383 any of the duties required of the Commissioner of Agriculture pursuant to this article."384 SECTION 10.385 Sections 1 through 4 and 6 through 11 of this Act shall become effective upon its approval386 by the Governor or upon its becoming law without such approval. Section 5 of this Act shall387 become effective January 1, 2024.388 SECTION 11.389 All laws and parts of laws in conflict with this Act are repealed.390