EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1204*
HOUSE BILL 1204
M4 3lr1912
By: Delegates Fraser–Hidalgo and Howard
Introduced and read first time: February 10, 2023
Assigned to: Economic Matters and Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Hemp Farming Program – Refined Hemp and Hemp Extract Products 2
– Requirements 3
FOR the purpose of requiring a person to receive a certain certificate of analysis before 4
distributing refined hemp or a hemp extract product; requiring the Department of 5
Agriculture to establish certain packaging and labeling requirements for refined 6
hemp and hemp extract products; establishing the Hemp Advisory Council to provide 7
advice and expertise to the Department regarding the monitoring and regulation of 8
hemp production in the State; requiring the Department to establish certain licenses 9
under the Hemp Farming Program; specifying that a person transporting hemp that 10
exceeds a certain concentration of delta–9–tetrahydrocannabinol is not in violation 11
of the Hemp Farming Program under certain circumstances; and generally relating 12
to the Hemp Farming Program and requirements for refined hemp and hemp extract 13
products. 14
BY repealing and reenacting, with amendments, 15
Article – Agriculture 16
Section 14–101, 14–301, 14–306, and 14–309 17
Annotated Code of Maryland 18
(2016 Replacement Volume and 2022 Supplement) 19
BY adding to 20
Article – Agriculture 21
Section 14–303.1, 14–303.2, and 14–305.1 22
Annotated Code of Maryland 23
(2016 Replacement Volume and 2022 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
Article – Agriculture 27 2 HOUSE BILL 1204
14–101. 1
(a) In this title the following words have the meanings indicated. 2
(b) “Fund” means the Hemp Farming Fund established under § 14–304 of this 3
title. 4
(c) (1) “Hemp” means the plant Cannabis sativa L. and any part of that plant, 5
including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, 6
whether growing or not, [with a] THAT: 7
(I) DOES NOT CONTAIN DELT A–9–TETRAHYDROCANNABIN OL; 8
OR 9
(II) CONTAINS delta–9–tetrahydrocannabinol IN A concentration 10
that does not exceed 0.3% on a dry weight basis. 11
(2) “Hemp” does not include any plant or part of a plant intended for a use 12
that is regulated under Title 13, Subtitle 33 of the Health – General Article. 13
(d) (1) “Hemp product” means a product derived from hemp produced in 14
accordance with Subtitle 3 of this title. 15
(2) “HEMP PRODUCT ” INCLUDES: 16
(I) ACIDIC FORMS OF CANNA BINOIDS EXTRACTED IN A 17
COMMERCIAL KITCHEN , INCLUDING TETRAHYDROCANNABINOL IC ACID AND 18
CANNABIDIOLIC ACID ; 19
(II) HEMP–DERIVED FIBER , GRAIN, OR TOPICAL PRODUCTS ; 20
AND 21
(III) HEMP–DERIVED FEED PRODUCT S. 22
(e) “Independent testing laboratory” has the meaning stated in § 13–3301 of the 23
Health – General Article. 24
(f) “Institution of higher education” has the meaning stated in the federal Higher 25
Education Act of 1965. 26
14–301. 27
(A) In this subtitle[,] THE FOLLOWING WORDS HAVE THE MEANINGS 28
INDICATED. 29 HOUSE BILL 1204 3
(B) “CONTAMINANTS UNSAFE F OR HUMAN CONSUMPTION ” MEANS ANY 1
MICROBE, FUNGUS, YEAST, MILDEW, HERBICIDE, PESTICIDE, FUNGICIDE, RESIDUAL 2
SOLVENT, HEAVY METAL , OR OTHER CONTAMINANT FOUND IN AN AM OUNT THAT 3
EXCEEDS THE ACCEPTAB LE LIMITATIONS ESTAB LISHED UNDER STATE LAW OR 4
REGULATION . 5
(C) “DISTRIBUTE” MEANS TO SELL OR H OLD FOR FUTURE SALE , OFFER FOR 6
SALE, BARTER, OR OTHERWISE SUPPLY TO A CONSUMER . 7
(D) (1) “HEMP EXTRACT PRODUCT” MEANS A HEMP PRODUCT INTENDED 8
FOR CONSUMPTION . 9
(2) “HEMP EXTRACT PRODUCT” INCLUDES A HEMP PROD UCT 10
INTENDED FOR CONSUMP TION THAT IS MANUFACTURED OR DIST RIBUTED IN THE 11
STATE OR FOR INTERSTA TE COMMERCE THAT IS: 12
(I) PRODUCED, STORED, TRANSPORTED , OR PROCESSED IN A 13
FACILITY BONDED IN A CCORDANCE WITH THIS SUBTITLE; AND 14
(II) LABELED WITH A BRAND NAME AND DESCRIPTORS 15
INCLUDING FLAVOR , SIZE OR VOLUME , AND SPECIFIC CANNABINOID CONTENT. 16
(E) “Program” means the Hemp Farming Program. 17
(F) (1) “REFINED HEMP ” MEANS A DERIVATIVE OF HEMP IN WHICH A 18
CANNABINOID OTHER TH AN DELTA–9–TETRAHYDROCANNABINOL , OR AN ISOMER 19
DERIVED FROM SUCH A CANNABINOID , IS FOUND IN A CONCEN TRATION GREATER 20
THAN 0.3%. 21
(2) “REFINED HEMP ” DOES NOT INCLUDE : 22
(I) CANNABIDIOL; 23
(II) CANNABICHROMENE ; 24
(III) CANNABIELSOIN ; 25
(IV) CANNABIGEROL ; 26
(V) CANNABICYCLOL ; 27
(VI) CANNABINOL; 28 4 HOUSE BILL 1204
(VII) CANNABICITRAN; OR 1
(VIII) CANNABIVARIN . 2
14–303.1. 3
(A) A PERSON SHALL RECEIVE A CERTIFICATE OF ANA LYSIS PREPARED BY 4
AN INDEPENDENT TESTI NG LABORATORY BEFORE DISTRIBUTING REFINED HEMP OR 5
A HEMP EXTRACT PRODU CT. 6
(B) THE CERTIFICATE OF AN ALYSIS REQUIRED UNDE R SUBSECTION (A) OF 7
THIS SECTION SHALL STATE THAT : 8
(1) THE REFINED HEMP OR HEMP EXTRACT PRODUCT IS A PRODUCT 9
OF A BATCH TESTED BY THE INDEPENDENT TEST ING LABORATORY ; 10
(2) THE BATCH TESTED DOES NOT CONTAIN 11
DELTA–9–TETRAHYDROCANNABINOL OR CONTAINS 12
DELTA–9–TETRAHYDROCANNABINOL IN A CONCENTRATION T HAT DOES NOT 13
EXCEED 0.3% ON A DRY WEIGHT BASI S AFTER TESTING A RAND OM SAMPLE OF THE 14
BATCH; AND 15
(3) THE BATCH DOES NOT CONTA IN CONTAMI NANTS UNSAFE FOR 16
HUMAN CONSUMPTION . 17
(C) THE DEPARTMENT MAY CONDUCT AN ANALYSIS OF A SAMPLE OF 18
REFINED HEMP OR A HE MP EXTRACT PRODUCT A ND THE ASSOCIATED LABEL TO 19
ENSURE THE PR ODUCT: 20
(1) MEETS THE LABEL REQUI REMENTS ESTABLISHED UNDER § 21
14–303.2 OF THIS SUBTITLE; 22
(2) DOES NOT CONTAIN DELTA –9–TETRAHYDROCANNABINOL OR 23
CONTAINS DELTA –9–TETRAHYDROCANNABINOL IN A CONCENTRATION T HAT DOES 24
NOT EXCEED 0.3% ON A DRY WEIGHT BASI S; 25
(3) HAS NOT BEEN TAMPERED WITH OR MISBRANDED ; AND 26
(4) MEETS ALL OTHER REQUI REMENTS ESTABLISHED UN DER THIS 27
SUBTITLE. 28
14–303.2. 29 HOUSE BILL 1204 5
(A) THE DEPARTMENT SHALL ESTA BLISH MINIMUM PACKAG ING AND 1
LABELING REQUIREMENT S FOR REFINED HEMP A ND HEMP EXTRACT PROD UCTS. 2
(B) THE PACKAGING REQUIRED UNDER SUBSE CTION (A) OF THIS SECTION 3
SHALL: 4
(1) BE CLEAR, LEGIBLE, AND PRINTED IN ENGLISH; 5
(2) INCLUDE A WARNING STATEMENT GO VERNING SAFE USE AND 6
SECURE STORAGE OF TH E PRODUCT THAT INCLUDES : 7
(I) THE INTENDED SERVING SIZE; 8
(II) A WARNING TO NOT OPERA TE A MOTOR VEHICLE W HILE 9
UNDER THE INFLUENCE ; 10
(III) A WARNING TO NOT USE T HE PRODUCT WHILE NURSING OR 11
PREGNANT; 12
(IV) AN ADVISORY TO KEEP O UT OF REACH OF CHILD REN AND 13
PETS; AND 14
(V) A WARNING THAT THE USE OF THE PRODUCT MA Y CAUSE A 15
POSITIVE THC RESULT ON A TOXICOLO GY SCREENING ; 16
(3) INCLUDE A PRIMARY LABEL THAT : 17
(I) CONTAINS THE GENERIC OR COMMO N NAME OF THE 18
PRODUCT; 19
(II) SPECIFIES WHETHER THE PRODUCT CONTAINS CBD OR 20
THC OR BOTH; AND 21
(III) SPECIFIES THE NET WEIGHT OR VOL UME OF THE CONTENTS 22
OF THE PRODUCT IN U.S. CUSTOMARY U NITS AND METRIC UNIT S IN ACCORDANCE 23
WITH § 11–301 OF THIS ARTICLE; 24
(4) INCLUDE AN INFORMATIO N LABEL THAT: 25
(I) INCLUDES THE NAME AND CONTACT INFORMATION OF THE 26
MANUFACTURER OR DIST RIBUTOR; 27
6 HOUSE BILL 1204
(II) INCLUDES THE DATE THE PRODUCT WAS MANUFACTURED 1
OR PACKAGED; 2
(III) INCLUDES THE BATCH OR LOT NUMB ER FOR THE PRODUCT ; 3
(IV) INSTRUCTS TH E CONSUMER ON HOW TO U SE AND PREPARE 4
THE PRODUCT ; 5
(V) LISTS THC, OTHER CANNABINOID IN GREDIENTS OR 6
ADDITIVES, AND NONCANNABINOID I NGREDIENTS IN THE PRODUCT IN DESCENDING 7
ORDER BY WEIGHT OR V OLUME; 8
(VI) LISTS ANY POTENTIAL ALLERGEN S; 9
(VII) INCLUDES AN EXPIRATION DATE AND REFRIGERATI ON 10
INSTRUCTIONS ; AND 11
(VIII) LISTS THE SODIUM , SUGAR, CARBOHYDRATE , AND FAT 12
CONTENT PER SERVING , IF APPLICABLE; AND 13
(5) INCLUDE A CERTIFICATE OF ANALY SIS DISPLAYING THE 14
LABORATORY TEST RESU LTS OF THE PRODUCT . 15
(C) REFINED HEMP OR A HEM P EXTRACT PRODUCT PACKAGING MAY NOT: 16
(1) BE LABELED AS A PRODU CT GROWN IN THE STATE UNLESS AT 17
LEAST 51% OF THE HEMP USED IN THE PRODUCT WAS GROWN IN THE STATE; 18
(2) BE TARGETED AT MINORS, INCLUDING THE USE OF CARTOONS, 19
POPULAR IMAGES USED TO ADVERTISE TO CHIL DREN, OR DESIGNS SUBSTANTI ALLY 20
RESEMBLING ONES ASSOCIATED WITH ANY COMMERCIAL PRODUCT SOLD TO 21
MINORS; 22
(3) INCLUDE FALSE OR MISLEADING INFORM ATION, INCLUDING 23
UNPROVEN OR UNVERIFI ABLE STATEMENTS ; 24
(4) INCLUDE THE WORD “ORGANIC” UNLESS THE PRODUCT I S 25
CERTIFIED AS ORGANIC IN ACCORDANCE WITH T HE NATIONAL ORGANIC PROGRAM 26
ADMINISTERED BY THE U.S. DEPARTMENT OF AGRICULTURE ; OR 27
(5) INCLUDE DISEASE OR DR UG CLAIMS THAT ARE N OT APPROVED BY 28
THE U.S. FOOD AND DRUG ADMINISTRATION . 29
HOUSE BILL 1204 7
14–305.1. 1
(A) THERE IS A HEMP ADVISORY COUNCIL WITHIN THE DEPARTMENT . 2
(B) THE PURPOSE OF THE ADVISORY COUNCIL IS TO PROVIDE ADVICE AND 3
EXPERTISE TO THE DEPARTMENT REGARDING IMPLEMENTATION OF TH E PLAN 4
REQUIRED UNDER § 14–305(A) OF THIS SUBTITLE. 5
(C) THE ADVISORY COUNCIL SHALL CONSIST OF THE FOLLOWING 6
MEMBERS: 7
(1) TWO MEMBERS APPOINTED BY THE SECRETARY; 8
(2) TWO MEMBERS APPOINTED BY THE GOVERNOR; 9
(3) TWO MEMBERS APPOINTED BY THE PRESIDENT OF THE SENATE; 10
(4) TWO MEMBERS APPOINTED BY THE SPEAKER OF THE HOUSE; 11
(5) THE SECRETARY OF STATE POLICE, OR THE SECRETARY’S 12
DESIGNEE; 13
(6) THE PRESIDENT OF THE MARYLAND FARM BUREAU, OR THE 14
PRESIDENT’S DESIGNEE; 15
(7) A REPRESENTATIVE OF THE MARYLAND HEMP COALITION; AND 16
(8) A REPRESENTATIVE OF THE MARYLAND HEALTHY 17
ALTERNATIVES ASSOCIATION. 18
(D) THE MEMBERS OF THE ADVISORY COUNCIL SHALL SELECT ONE 19
MEMBER TO SERVE AS CHAIR OF THE ADVISORY COUNCIL BY TWO–THIRDS VOTE. 20
(E) (1) THE TERM OF A MEMBER IS 4 YEARS. 21
(2) THE TERMS OF MEMBERS ARE STAGGERED AS REQ UIRED BY THE 22
TERMS PROVIDED FOR M EMBERS OF THE ADVISORY COUNCIL ON OCTOBER 1, 2023. 23
(3) A MEMBER MAY SERVE TWO CONSECUTIVE FULL TER MS. 24
(4) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 25
A SUCCESSOR IS APPOI NTED OR DESIGNATED A ND QUALIFIES. 26
8 HOUSE BILL 1204
(5) A MEMBER WHO SERVES TW O CONSECUTIVE 4–YEAR TERMS MAY 1
NOT BE REAPPOINTED F OR 4 YEARS AFTER THE COMP LETION OF THOSE TERM S. 2
(F) A VACANCY IN TH E ADVISORY COUNCIL SHALL PROMPTLY BE FI LLED IN 3
THE SAME MANNER AS T HE MEMBER BEING SUCC EEDED WAS APPOINTED . 4
(G) THE CHAIR OF THE ADVISORY COUNCIL SHALL: 5
(1) DESIGNATE THE TIME AN D PLACE OF THE ADVISORY COUNCIL’S 6
MEETINGS; AND 7
(2) HOLD AT LEAST ONE MEETING EACH CALENDA R YEAR. 8
(H) A MEMBER OF THE ADVISORY COUNCIL: 9
(1) SHALL SERVE WITHOUT C OMPENSATION AS A MEM BER OF THE 10
ADVISORY COUNCIL; BUT 11
(2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 12
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 13
14–306. 14
(a) The Department shall establish a procedure for licensing the production of 15
hemp in accordance with the plan established under § 14–305 of this subtitle. 16
(B) IN ACCORDANCE WITH SU BSECTION (A) OF THIS SECTION , THE 17
DEPARTMENT SHALL ESTA BLISH THE FOLLOWING LICENSES: 18
(1) A PRODUCER LICENSE THA T ALLOWS A PERSON TO PLANT, 19
CULTIVATE, GROW, HARVEST, AND DRY HEMP ; 20
(2) A PROCESSOR LICENSE TH AT ALLOWS A PERSON T O PROCESS, 21
COMPOUND , OR CONVERT HEMP INTO CANNABINOID PRODU CTS, CONCENTRATES , 22
OR EXTRACTS; 23
(3) A RETAILER LICENSE THA T ALLOWS A PERSON OR EN TITY 24
OPERATING A BUSINESS TO SELL DIRECT TO TH E CONSUMER REFINED H EMP AND 25
HEMP EXTRACT PRODUCT S; 26
(4) A RESEARCH LICENSE THA T ALLOWS A PERSON TO RESEARCH 27
HEMP FOR THE PURPOSE OF BENEFITIN G THE HEMP INDUSTRY IN THE STATE, 28
MEDICAL RESEARCH , OR PUBLIC HEALTH AND SAFETY; AND 29
HOUSE BILL 1204 9
(5) AN INDUSTRIAL LICENSE THAT ALLOWS A PERSON TO PLANT, 1
CULTIVATE, GROW, HARVEST, DRY, AND PROCESS HEMP GROWN AS AN 2
AGRICULTURAL CROP FO R GRAIN OR FIBER CONTENT . 3
(C) THE DEPARTMENT SHALL REQU IRE AS A CONDITION T O THE ISSUANCE 4
OF AN INDUSTRIAL LICENS E UNDER THIS SECTION THAT A PERSON : 5
(1) SIGN A DECLARATION ST ATING THAT THE LICEN SEE WILL 6
HARVEST ONLY GRAIN AND FIBER AND WILL NOT HARVEST OR DISTRIBUTE ANY 7
FLORAL MATERIAL , EXTRACT, OR RESIN FROM A CROP ; AND 8
(2) CONSENT TO PERIODIC V ISUAL INSPECTIONS OF THE CROP BY 9
THE DEPARTMENT TO ENSURE COMPLIANCE WITH THE LICENSING REQUIREMENTS 10
UNDER THIS SECTION . 11
(D) (1) THE DEPARTMENT SHALL REQU IRE AS A CONDITION T O THE 12
ISSUANCE OF A RETAILER LICENSE U NDER THIS SECTION TH AT A PERSON SIGN A 13
DECLARATION STATING THAT THE LICENSEE WI LL NOT SELL REFINED HEMP OR 14
HEMP EXTRACT PRODUCT S TO AN INDIVIDUAL U NDER THE AGE OF 21 YEARS. 15
(2) A RETAILER LICENSE HOL DER THAT SELLS REFINED H EMP OR 16
HEMP EXTRACT PRODUCT S IN VIOLATION OF PA RAGRAPH (1) OF THIS SUBSECTION 17
IS SUBJECT TO THE PENALTIES UNDER § 10–108 OF THE CRIMINAL LAW ARTICLE. 18
(E) (1) THE DEPARTMENT MAY NOT : 19
(I) REQUIRE A PERSON TO U NDERGO A BACKGROUND CHECK 20
AS A CONDITION TO THE ISSUANCE OF AN INDUSTRIAL LICENS E; OR 21
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 22
SUBSECTION, TEST OR SAMPLE THE C ROP OF AN INDUSTRIAL LICENSE HOLDER. 23
(2) THE DEPARTMENT MAY RE QUIRE AN INSPECTION OF THE CROP 24
OF AN INDUSTRIAL LIC ENSE HOLDER IF A VIS UAL INSPECTION REVEA LS CROP 25
PRODUCTION THAT IS I NCONSISTENT WITH THE LICENSE REQUIREMENTS UNDER 26
THIS SECTION. 27
(3) (I) AN INDUSTRIAL LICENSE HOLDER MAY NOT DESTR OY A 28
HEMP CROP. 29
(II) IF AN INDUSTRIAL LICE NSE HOLDER DESTROY S A HEMP 30
CROP IN VIOLATION OF SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE PERSON IS NO 31
LONGER ELIGIBLE TO H OLD AN INDUSTRIAL LI CENSE AND IS SUBJECT TO 32 10 HOUSE BILL 1204
ENFORCEMENT IN ACCORDANCE WITH § 14–309 OF THIS SUBTITLE . 1
[(b)] (F) The Department may set reasonable fees for the issuance and renewal 2
of licenses and other services the Department provides under this subtitle. 3
[(c)] (G) The Department shall pay all funds collected under this section into the 4
Fund. 5
14–309. 6
(a) (1) A person may not knowingly: 7
(i) Fail to comply with the Department’s plan for monitoring and 8
regulating the production of hemp established under § 14–305 of this subtitle; 9
(ii) Misrepresent or fail to provide the legal description of land on 10
which hemp is produced; 11
(iii) Produce hemp without a valid license; or 12
(iv) Produce plants, or any part of a plant, that exceeds a 13
delta–9–tetrahydrocannabinol concentration of 0.3% on a dry weight basis. 14
(2) The Department shall report a person that knowingly violates this 15
subtitle to the Attorney General and the U.S. Attorney. 16
(b) (1) If the Department determines that a person negligently violated this 17
subtitle, the Department shall require the person to correct the violation, including 18
requiring that: 19
(i) The violation be corrected by a reasonable date; and 20
(ii) The person report to the Department, at a frequency determined 21
by the Department and for a period of not less than 2 calendar years, to verify compliance 22
with this subtitle. 23
(2) If a person is found by the Department to have negligently violated this 24
subtitle three times in a 4–year period, the person may not produce hemp in the State for 25
a period of 5 years beginning on the date of the third violation. 26
(C) A PERSON TRANSPO RTING HEMP THAT CONTAINS A 27
DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION THAT E XCEEDS 0.3% ON A 28
DRY WEIGHT BASIS IS NOT IN VIOLATION OF THIS SUBTITLE IF THE PERSON IS 29
TRANSPORTING THE HEM P FROM A CULTIVATOR , A PRODUCER , OR AN EXTRACTOR 30
TO A FACILITY FOR RE MEDIATION. 31
HOUSE BILL 1204 11
SECTION 2. AND BE IT FURTHER ENACTED, That the terms of the initial 1
members of the Hemp Advisory Council shall expire as follows: 2
(1) three members in 2024; 3
(2) three members in 2025; 4
(3) three members in 2026; and 5
(4) three members in 2027. 6
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
October 1, 2023. 8