Session of 2023
HOUSE BILL No. 2168
By Representatives Blew and K. Williams
1-25
AN ACT concerning agriculture; relating to industrial hemp; allowing the
fiber, grain and seeds thereof to be used as food for livestock, poultry
and pets; adding hemp grain to the definition of grain; authorizing the
secretary to utilize performance-based sampling when inspecting
industrial hemp; lowering license and registration fees; extending
license and registration periods to two years; exempting certain hemp
processors from fingerprinting and background check requirements;
amending K.S.A. 2-3901, 2-3906, 2-3907, 2-3908 and 34-223 and
repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) The secretary shall approve and allow the
manufacture, transportation, importation, sale or storage of any
commercial feeding stuffs that include hemp fiber, grain or seed as defined
in K.S.A. 2-3901, and amendments thereto, except when any such
commercial feeding stuffs is otherwise determined by the secretary to:
(1) Be misbranded or adulterated;
(2) contain or possibly contain any substance injurious to public
health or the health of livestock, poultry or pets; or
(3) be sold, offered or exposed for sale in violation of any of the
statutes contained in article 10 of chapter 2 of the Kansas Statutes
Annotated, and amendments thereto, or any rules and regulations adopted
thereunder.
(b) This section shall be a part of and supplemental to article 10 of
chapter 2 of the Kansas Statutes Annotated, and amendments thereto.
Sec. 2. K.S.A. 2-3901 is hereby amended to read as follows: 2-3901.
(a) K.S.A. 2-3901 et seq., and amendments thereto, shall be known and
may be cited as the commercial industrial hemp act.
(b) As used in the commercial industrial hemp act:
(1) "Commercial" means the cultivation or production of industrial
hemp for any purpose authorized under K.S.A 2-3906, and amendments
thereto.
(2) "Delta-9 tetrahydrocannabinol concentration" means the
combined percentage of delta-9 tetrahydrocannabinol and its optical
isomers, their salts and acids, and salts of their acids, reported as free
THC:
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(A) On a dry weight basis, of any part of the plant cannabis sativa L.;
or
(B) on a percentage by weight basis in hemp products, waste or
substances resulting from the production or processing of industrial hemp.
(3) "Effective disposal" includes, but is not limited to:
(A) Destruction; or
(B) any other method of disposing of industrial hemp or hemp
products found to be in violation of this act that is permitted under the
provisions of 7 U.S.C. § 1621 et seq. and any rules and regulations
adopted thereunder.
(4) "Hemp fiber, grain or seeds" means the mature stalks of industrial
hemp, fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative, mixture or
preparation of the mature stalks, except the resin extracted therefrom,
fiber, oil or cake or the sterilized seed of the plant that is incapable of
germination.
(5) "Hemp products" means all products made from industrial hemp,
including, but not limited to, cloth, cordage, fiber, food, fuel, paint, paper,
particleboard, plastics, seed, seed meal and seed oil for consumption and
any extract from industrial hemp intended for further processing. Final
"hemp products" may contain a tetrahydrocannabinol concentration of not
more than 0.3%. As used in this paragraph, "tetrahydrocannabinol
concentration" means the same as in K.S.A. 65-6235(b)(3), and
amendments thereto.
(5)(6) "Hemp producer" means any individual, licensed or otherwise,
engaging in the cultivation or production of industrial hemp for
commercial purposes pursuant to K.S.A. 2-3906, and amendments thereto.
(6)(7) "Hemp processor" means a person registered under K.S.A. 2-
3907, and amendments thereto, to process and manufacture industrial
hemp and hemp products.
(7)(8) "Industrial hemp" means all parts and varieties of the plant
cannabis sativa L., whether growing or not, that contain a delta-9
tetrahydrocannabinol concentration of not more than 0.3% on a dry weight
basis.
(8)(9) "Person" means an individual, corporation, partnership,
association, joint stock company, trust, unincorporated organization or any
similar entity or any combination of the foregoing acting in concert.
(9)(10) "State educational institution" means the university of
Kansas, Kansas state university, Wichita state university, Emporia state
university, Pittsburg state university, Fort Hays state university, or any
other accredited college, university, technical college or community
college within Kansas.
(10)(11) "Authorized seed or clone plants" means a source of
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industrial hemp seeds or clone plants that:
(A) Has been certified by a certifying agency, as defined by K.S.A. 2-
1415, and amendments thereto;
(B) has been produced from plants that were tested during the active
growing season and were found to produce industrial hemp having a
tetrahydrocannabinol concentration that does not exceed 0.3% on a dry
weight basis and has been certified in writing by the grower or distributor
of such seeds or clone plants to possess such qualities; or
(C) meets any other authorized standards approved by the Kansas
department of agriculture through rules and regulations, except that no
seed or clone plants shall be considered authorized seed or clone plants if
they do not meet any standard adopted by the United States department of
agriculture pursuant to 7 U.S.C. § 1621 et seq., and amendments thereto.
Sec. 3. K.S.A. 2-3906 is hereby amended to read as follows: 2-3906.
(a) The Kansas department of agriculture, in consultation with the
governor and attorney general, shall submit a plan to the United States
department of agriculture under which the Kansas department of
agriculture will monitor and regulate the commercial production of
industrial hemp within the state in accordance with 7 U.S.C. § 1621 et seq.
and any rules and regulations adopted thereunder.
(b) Such plan shall include the following:
(1) A procedure to maintain relevant information regarding land on
which industrial hemp is produced, including a legal description of the
land, for a period of not less than three calendar years;
(2) a procedure for testing, using post-decarboxylation or other
similarly reliable methods, the delta-9 tetrahydrocannabinol concentration
levels of industrial hemp produced;
(3) a procedure for the effective disposal of industrial hemp and hemp
products that are found to be in violation of this act;
(4) any licensing requirements or other rules and regulations deemed
necessary by the Kansas department of agriculture for the proper
monitoring and regulation of industrial hemp cultivation and production
for commercial purposes, including, but not limited to:
(A) Fees for licenses, license renewals and other necessary expenses
to defray the cost of implementing and operating the plan on an ongoing
basis; and
(B) standards for authorized seed or clone plants;
(5) a procedure for the creation of documentation that any person in
possession of unprocessed industrial hemp may use to prove to any law
enforcement officer that such industrial hemp was lawfully grown under
this section;
(6) a procedure for conducting annual inspections of, at a minimum, a
random sample of hemp producers to verify, including the use of
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performance-based sampling, that industrial hemp is not produced in
violation of this act; and
(7) any other procedures necessary to meet the requirements set forth
in 7 U.S.C. § 1621 et seq. and any rules and regulations adopted
thereunder.
(c) (1) A hemp producer who negligently violates this section or any
rules and regulations adopted hereunder shall not be subject to any state or
local criminal enforcement action, but shall comply with the following
corrective actions as applicable:
(A) A reasonable date by which the hemp producer shall correct the
negligent violation; and
(B) a requirement that the hemp producer shall periodically report to
the Kansas department of agriculture on the hemp producer's compliance
with this section and rules and regulations adopted hereunder, for a period
of not less than the next two calendar years.
(2) A hemp producer who negligently violates this section or any
rules and regulations adopted hereunder three times in a five-year period
shall be ineligible to produce industrial hemp for a period of five years
beginning on the date of the third violation.
(3) The Kansas department of agriculture shall immediately report
any violation by a hemp producer with a greater culpable mental state than
negligence to the attorney general and such hemp producer shall not be
subject to the exemption in subsection (c)(1).
(d) Any individual otherwise eligible to become a licensed hemp
producer shall not be eligible to produce industrial hemp if such individual
has submitted any materially false information in any application to
become a licensed hemp producer.
(e) (1) The department shall require, as a qualification for initial or
continuing licensure, all individuals seeking a license or license renewal as
a hemp producer under this section to be fingerprinted and to submit to a
state and national criminal history record check. The fingerprints shall be
used to identify the individual and to determine whether the individual has
a record of criminal history in this state or any other jurisdiction. The
department is authorized to submit the fingerprints to the Kansas bureau of
investigation and the federal bureau of investigation for a state and
national criminal history record check. The department may use the
information obtained from fingerprinting and the criminal history record
check for purposes of verifying the identification of the individual and for
making an official determination of the qualifications for initial or
continuing licensure as a hemp producer pursuant to this section and rules
and regulations promulgated hereunder. Disclosure or use of any
information received by the department for any purpose other than the
purposes provided for in the commercial industrial hemp act shall be a
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class A misdemeanor and shall constitute grounds for removal from office
or termination of employment.
(2) An individual who has been convicted of a felony violation of
article 57 of chapter 21 of the Kansas Statutes Annotated, and amendments
thereto, or a substantially similar offense in another jurisdiction, within the
immediately preceding 10 years, shall be disqualified from initial or
continuing licensure as a hemp producer under this section.
(3) The Kansas bureau of investigation may charge a reasonable fee
for conducting a criminal history record check.
(4) The individual seeking a license or license renewal as a hemp
producer under this section shall pay the costs of fingerprinting and the
state and national criminal history record checks.
(f) The secretary of agriculture shall promulgate rules and regulations
to implement the plan submitted to the United States department of
agriculture and to otherwise effectuate the provisions of this section.
(g) Upon the repeal of 7 U.S.C. § 5940 or either the adoption of a
federal plan by the United States department of agriculture that allows for
the cultivation and production of industrial hemp for commercial purposes
within the state or upon the adoption of rules and regulations by the
Kansas secretary of agriculture that establish the cultivation and
production of industrial hemp for commercial purposes within the state,
the Kansas department of agriculture may discontinue the industrial hemp
research program established pursuant to K.S.A. 2-3902, and amendments
thereto.
(h) Any modification fee established by the department for any
requested change to a license that was previously issued by the department
under this section shall not exceed $50.
(i) (1) The licensing period for any license issued by the secretary
pursuant to this act shall be at least two years.
(2) The fee for any license issued by the secretary pursuant to this act
shall not exceed $500 and shall be allowed to be paid in a single lump
sum or in annual increments not larger than $250.
(j) Any licensing or other fees collected pursuant to this section and
any rules and regulations adopted hereunder shall be deposited in the
commercial industrial hemp act licensing fee fund established by K.S.A. 2-
3903, and amendments thereto, for all costs of the administration of the
commercial production of industrial hemp.
(j)(k) This section shall be a part of and supplemental to the
commercial industrial hemp act, K.S.A. 2-3901 et seq., and amendments
thereto.
Sec. 4. K.S.A. 2-3907 is hereby amended to read as follows: 2-3907.
(a) The state fire marshal shall create and maintain a registry of all hemp
processors operating within the state of Kansas.
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(b) Any person engaging in the processing of industrial hemp shall
register annually biennially with the state fire marshal prior to processing
industrial hemp.
(c) Registration shall expire annually biennially on June 30.
Registration fees, not to exceed $1,000, shall be established pursuant to
rules and regulations adopted by the state fire marshal. Such registration
fees shall not exceed $500 and shall be allowed to be paid in a single lump
sum or in annual increments not larger than $250.
(d) Any person required to register as a hemp processor pursuant to
this section shall submit an annual a biennial registration application on a
form provided by the state fire marshal that shall include, at a minimum:
(1) The full legal name, date of birth, address and telephone number
of the applicant. If the applicant is not an individual, the same information
shall also be provided for all owners and the individual responsible for all
industrial hemp processing and related activities performed by the
applicant;
(2) the physical location of any premises that will serve as a part of
the applicant's industrial hemp processing operations;
(3) a brief description of the industrial hemp processing methods,
activities and products planned for production; and
(4) certification that such applicant has fully complied with the
fingerprinting and criminal history record check requirements contained in
this section, if applicable. Any such applicant who provides a false
statement of compliance with such requirements shall be guilty of a class
C nonperson misdemeanor.
(e) The state fire marshal shall provide an updated list of all hemp
processors to the Kansas bureau of investigation and to the county sheriff
in each county where a hemp processor is located as often as is reasonably
required or requested.
(f) Fees collected pursuant to this section shall be remitted to the state
treasurer in accordance with the provisions of K.S.A. 75-4215, and
amendments thereto. Upon receipt of each such remittance, the state
treasurer shall deposit the entire amount in the state treasury to the credit
of the fire marshal fee fund.
(g) It shall be unlawful for any person to operate as a hemp processor
without valid registration. Upon a first conviction for a violation of this
subsection, a person shall be guilty of a class A nonperson misdemeanor.
On a second or subsequent conviction for a violation of this subsection, a
person shall be guilty of a severity level 9, nonperson felony.
(h) (1) Except as otherwise provided by subsection (k), the state fire
marshal shall require all individuals applying for a hemp processor
registration who seek to engage in the extraction of cannabinoids from
industrial hemp, including the disposal of such cannabinoids, pursuant to
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the commercial industrial hemp act to be fingerprinted and submit to a
state and national criminal history record check. The state fire marshal
may require individuals who are current employees or applying to be
employees of a hemp processor to be fingerprinted and submit to a state
and national criminal history record check. The fingerprints shall be used
to identify the individual and to determine whether the individual has a
record of criminal history in Kansas or any other jurisdiction. The state fire
marshal is authorized to submit the fingerprints to the Kansas bureau of
investigation and the federal bureau of investigation for a state and
national criminal history record check. The state fire marshal may use the
information obtained from fingerprinting and the criminal history record
check for purposes of verifying the identification of the individual and for
making an official determination of the qualification and fitness of the
individual to process industrial hemp pursuant to this act and rules and
regulations promulgated hereunder. Disclosure or use of any criminal
history information for any purpose other than the purposes provided for in
the commercial industrial hemp act shall be a class A nonperson
misdemeanor and shall constitute grounds for removal from office or
termination of employment.
(2) An individual who has been convicted of a felony violation of
article 57 of chapter 21 of the Kansas Statutes Annotated, and amendments
thereto, or a substantially similar offense in another jurisdiction, within the
immediately preceding 10 years, shall be disqualified from processing
industrial hemp under this section.
(3) The state fire marshal may deny registration to any individual
who has violated subsection (g) or any other provision of the commercial
industrial hemp act.
(4) The Kansas bureau of investigation may charge a reasonable fee
for conducting a criminal history record check.
(5) The individual seeking authorization to extract or dispose of
cannabinoids from industrial hemp pursuant to this section shall pay the
costs of fingerprinting and the state and national criminal history record
check.
(6) Local and state law enforcement officers and agencies shall assist
in taking and processing an individual's fingerprints as authorized by this
section.
(i) (1) The state fire marshal shall promulgate rules and regulations to
carry out the provisions of this section, including, but not limited to, rules
and regulations on:
(A) The denial, conditioning, renewal or revocation of registration;
(B) the creation of multiple classes of registrations based upon the
scope of hemp processing activities of an applicant;
(C) construction and safety standards for processing facilities;
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(D) security measures;
(E) inventory control;
(F) maintenance of records;
(G) access to and inspection of records and processing facilities by
the state fire marshal and law enforcement agencies;
(H) the collection and disposal of any cannabinoids extracted during
the processing of industrial hemp that cannot be lawfully sold in this state;
and
(I) the transportation of industrial hemp or hemp products.
(2) The state fire marshal may grant an exemption from the
application of a specific requirement of rules and regulations promulgated
under paragraph (1), unless the state fire marshal determines that the
condition, structure or activity that is or would be in noncompliance with
such requirement would constitute a distinct hazard to life or property. Any
such exemption shall be granted only upon written request of a registrant
or applicant for registration that clearly demonstrates that enforcement of a
specific requirement of a rule and regulation will cause unnecessary
hardship as determined by the state fire marshal.
(j) The Kansas department of agriculture and the state fire marshal
shall coordinate with one another, including providing any requested
information from the other, regarding industrial hemp licensees, hemp
processors and hemp processor applicants necessary for the enforcement
of any laws or rules and regulations relating to industrial hemp.
(k) The state fire marshal shall grant an exemption from the
fingerprinting and criminal history record check requirements of
subsection (h) for processors who only manufacture hemp products that
are derived from hemp fiber, grain or seeds.
(l) This section shall be a part of and supplemental to the commercial
industrial hemp act, K.S.A. 2-3901 et seq., and amendments thereto.
Sec. 5. K.S.A. 2-3908 is hereby amended to read as follows: 2-3908.
(a) (1) It shall be unlawful for any of the following hemp products to be
manufactured, marketed, sold or distributed by any person in the state of
Kansas:
(A) Cigarettes containing industrial hemp;
(B) cigars containing industrial hemp;
(C) chew, dip or other smokeless material containing industrial hemp;
(D) teas containing industrial hemp;
(E) liquids, solids or gases containing industrial hemp for use in
vaporizing devices; and
(F) any other hemp product intended for human or animal
consumption containing any ingredient derived from industrial hemp that
is prohibited pursuant to the Kansas food, drug and cosmetic act, K.S.A.
65-636 et seq., and amendments thereto, and the commercial feeding stuffs
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act, K.S.A. 2-1001 et seq., and amendments thereto. This subparagraph
shall not otherwise prohibit the use of any such ingredient, including
cannabidiol oil, in such hemp products.
(2) As used in this subsection:
(A) "Human or animal consumption" means:
(i) Ingested orally; or
(ii) applied by any means such that an ingredient derived from
industrial hemp enters the human or animal body.
(B) "Intended for human or animal consumption" means:
(i) Designed by the manufacturer for human or animal consumption;
(ii) marketed for human or animal consumption; or
(iii) distributed with the intent that it be used for human or animal
consumption.
(b) (1) It shall be unlawful for any of the following hemp products to
be marketed, sold or distributed to any person in Kansas who is not
registered as a hemp processor pursuant to K.S.A. 2-3907, and
amendments thereto, or who does not possess a license by the Kansas
department of agriculture under any commercial plan established pursuant
to K.S.A. 2-3906, and amendments thereto, or the research program
established pursuant to K.S.A. 2-3902, and amendments thereto:
(A) Industrial hemp buds;
(B) ground industrial hemp floral material;
(C) ground industrial hemp leaf material; or
(D) any extract from industrial hemp with a delta-9
tetrahydrocannabinol concentration greater than 0.3% that will be further
processed.
(2) No license or registration shall be required for the transport of
hemp products described in paragraph (1) if such products are transported
between hemp producers and hemp processors or between more than one
hemp processor. Any such transportation of hemp products shall be subject
to rules and regulations promulgated by the state fire marshal pursuant to
this act.
(c) (1) Upon a first conviction for a violation of this section, a person
shall be guilty of a class A nonperson misdemeanor.
(2) On a second or subsequent conviction for a violation of this
section, a person shall be guilty of a severity level 9, nonperson felony.
(d) Nothing in this section shall prohibit:
(1) The use of any hemp product for research purposes by a state
educational institution or affiliated entity; or
(2) the production, use or sale of any hemp product that is otherwise
not prohibited by state or federal law.
(e) This section shall be a part of and supplemental to the commercial
industrial hemp act, K.S.A. 2-3901 et seq., and amendments thereto.
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Sec. 6. K.S.A. 34-223 is hereby amended to read as follows: 34-223.
As used in chapter 34 of Kansas Statutes Annotated, and amendments
thereto:
(a) "Action" includes counterclaim, setoff and suit in equity.
(b) "Delivery" means voluntary transfer of possessions from one
person to another.
(c) "Fungible grain" means grain of which any unit is, from its nature
or by mercantile custom, treated as the equivalent of any other unit.
(d) "Grain" means wheat, corn, oats, barley, rye, soybeans, grain
sorghums, hemp grain and any grains upon which federal grain standards
are established. "Grain" includes seeds generally stored by warehouses, if
special permission is granted by the secretary.
(e) "Holder of a receipt" means a person who has both actual
possession of such receipt and a right of property therein.
(f) "Order" means an order by endorsement of the receipt.
(g) "Owner" does not include mortgagee or pledgee.
(h) "Person" includes individuals, corporations, partnerships and all
associations of two or more persons having a joint or common interest.
(i) "To purchase" includes to take as mortgagee or pledgee.
(j) "Receipt" means a warehouse receipt or receipts.
(k) "Value" means any consideration sufficient to support a simple
contract and includes an antecedent or preexisting obligation, whether for
money or not, where a receipt is taken either in satisfaction thereof or as
security therefor.
(l) "Public warehouseman" means a person lawfully engaged in the
business of storing grain for the public.
(m) "Public warehouse" or "public grain warehouse" means every
elevator or other building in which grain is received for storage or transfer
for the public.
(n) "Secretary" means the secretary of the Kansas department of
agriculture or the secretary's designee.
(o) "Department" means the Kansas department of agriculture.
(p) "Grain bank grain" means any grain that has been received into
any public warehouse to be held for the account of the depositor and
returned to the depositor at a later date either as whole or processed grain.
(q) "Storage grain" or "stored grain" means grain that has been
received in any public warehouse located in this state, and such grain is
not purchased by the lessee, owner or manager of such warehouse.
(r) "Functional unit" means a public warehouse that has the capacity
to store, weigh in and weigh out grain. The storage capacity of any
outlying storage facility of a public warehouse that is not a functional unit
itself shall be included as part of the combined capacity of the
warehouseman's nearest functional unit.
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(s) "Open storage" means the storage of grain pursuant to the
issuance of a scale ticket, regardless of whether the grain is retained in the
warehouse that issued the scale ticket or elsewhere.
(t) "Owner" means the holder of any warehouse receipt or any ticket
for grain held in storage by a public warehouseman, regardless of whether
the grain for which the warehouse receipt or ticket was issued is stored at
the warehouse that issued the receipt or ticket or is stored elsewhere.
(u) "Deferred payment" means any payment to be made pursuant to
the terms of a grain purchase contract after the delivery of grain to a public
warehouseman.
(v) "Delayed pricing" means any method of pricing grain pursuant to
the terms of a grain purchase contract after the delivery of grain to a public
warehouseman.
(w) "Financial institution" means any institution whose deposits,
shares or accounts are insured by a federal agency or any bank for
cooperative created pursuant to title III of the farm credit act of 1971.
(x) "Standby letter of credit" means "letter of credit" as that term is
defined in K.S.A. 84-5-103, and amendments thereto, that by its terms:
(1) Is irrevocable;
(2) is nontransferrable;
(3) names the seller that produced the grain as beneficiary;
(4) shall not expire earlier than 60 calendar days after the final
payment is due pursuant to the terms of the underlying grain purchase
contract; and
(5) cannot be drawn upon by the beneficiary in the absence of a
default as defined by the terms of the underlying grain purchase contract.
(y) "Unpaid balance" means that portion of the purchase price under a
grain purchase contract, together with an interest thereon, if any, that
remains due and owing to the seller pursuant to the terms of the grain
purchase contract at the time the seller makes a demand for payment as
provided in the contract. If a grain purchase contract provides for delayed
pricing and the price has not been established at the time the seller makes
demand for payment, then for the purposes of this section only, the unpaid
balance shall be determined as though the price had been established at the
time of the closing of the relevant futures market on the last trading day
before the seller made a demand for payment.
(z) "Hemp grain" means the same as defined in K.S.A. 2-3901, and
amendments thereto.
Sec. 7. K.S.A. 2-3901, 2-3906, 2-3907, 2-3908 and 34-223 are hereby
repealed.
Sec. 8. This act shall take effect and be in force from and after its
publication in the statute book.
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