FIRSTREGULARSESSION HOUSEBILLNO.1328 103RDGENERALASSEMBLY INTRODUCEDBYREPRESENTATIVEALLEN. 2106H.01I JOSEPHENGLER,ChiefClerk ANACT Toamendchapters144and407,RSMo,byaddingtheretoseventeennewsectionsrelatingto hempproducts,withpenaltyprovisions. BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: SectionA.Chapters144and407,RSMo,areamendedbyaddingtheretoseventeen 2newsections,tobeknownassections144.028,407.3070,407.3073,407.3076,407.3079, 3407.3082,407.3085,407.3088,407.3091,407.3094,407.3097,407.3100,407.3103, 4407.3106,407.3109,407.3112,and407.3115,toreadasfollows: 144.028.1.Asusedinthissection,theterm"intoxicatinghempproduct"shall 2havethesamemeaninggiventotheterminsection407.3070. 3 2.ForalltaxyearsbeginningonorafterJanuary1,2026,anexcisetaxishereby 4leviedandimposedupontheretailsaleofintoxicatinghempproductstoconsumers 5withinthisstate.Therateoftaxshallbetwoandone-fourthpercentoftheretail 6purchasepricepaidorcharged. 7 3.Theportionoftherevenuederivedfromthetaxleviedunderthissectionthat 8representsrevenuefromataxrateofone-fourthofonepercentshallbedepositedbythe 9departmentofrevenueintothehempbusinessfundestablishedundersection407.3076. 10 4.Theportionoftherevenuederivedfromthetaxleviedunderthissectionthat 11representsrevenuefromataxrateoftwopercentshallbedepositedbythedepartment 12ofrevenueintotheMissourihempdevelopmentfundestablishedundersection 13407.3091. EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 14 5.Thetaxleviedunderthissectionisseparatefromandinadditiontoany 15generalstateandlocalsalesandusetaxesthatapplytoretailsales,whichshallcontinue 16tobecollectedanddistributedasprovidedbylaw. 17 6.Counties,municipalities,andanyotherpoliticalsubdivisionsshallnotimpose 18additionaltaxesorfeesonintoxicatinghempproductsbeyondthetaxesauthorized 19underthissection. 407.3070.1.Sections407.3070to407.3115shallbeknownandmaybecitedas 2the"Fair,Practical,andResponsibleHempRegulationsAct". 3 2.Asusedinsections407.3070to407.3115,unlessthecontextotherwiserequires, 4thefollowingtermsmean: 5 (1)"Batch",asinglestock-keepingunitthathasacommoncannabinoidinputor 6ahempflowerofthesamevarietalandharvestedonthesamedateandthatis 7manufacturedduringadefinedcycleinsuchawaythatitcouldbeexpectedtobeofa 8uniformcharacter; 9 (2)"Division",thedivisionofalcoholandtobaccocontrolofthedepartmentof 10publicsafety; 11 (3)"Hemp",theplantCannabissativaL.andanypartofthatplant,including 12theseedsthereofandallderivatives,extracts,cannabinoids,isomers,acids,salts,and 13saltsofisomers,whethergrowingornot,withadelta-9tetrahydrocannabinol 14concentrationofnotmorethanthree-tenthsofonepercentonadry-weightbasis; 15 (4)"Hemp-derivedcannabinoid",anycannabinoid,orisomerderivedfromthe 16cannabinoid,thatisderivedfromhempincluding,butnotlimitedto,thefollowing: 17 (a)Delta-9tetrahydrocannabinol(delta-9THC); 18 (b)Delta-8tetrahydrocannabinol(delta-8THC); 19 (c)Delta-10tetrahydrocannabinol(delta-10THC); 20 (d)Hexahydrocannabinol; 21 (e)Tetrahydrocannabinolacetateester(THCO); 22 (f)Tetrahydrocannabiphorol(THCP); 23 (g)Tetrahydrocannabivarin(THCV);and 24 (h)Tetrahydrocannabinolicacid(THCA); 25 (5)"Hempproduct",anyproductinwhich: 26 (a)Atleastonehemp-derivedcannabinoidiscontainedintheproduct; 27 (b)Anycannabinoid,orisomerderivedfromthecannabinoid,containedinthe 28productisahemp-derivedcannabinoid;and 29 (c)Either: 30 a.Iftheproductdoesnotcontaindelta-9THC,theproductcontainsatleastone 31hemp-derivedcannabinoidinaconcentrationofmorethanone-tenthofonepercent;or HB1328 2 32 b.Iftheproductcontainsdelta-9THC,theconcentrationofthedelta-9THC 33doesnotexceedthree-tenthsofonepercentonadry-weightbasis; 34 (6)"Intoxicatinghempproduct",anyhempproductthatdoesnotqualifyasa 35nonintoxicatinghempproduct; 36 (7)"License",alicenseissuedbythedivisiontoamanufacturerorretailer 37undersection407.3073; 38 (8)"Manufacturer",apersonorentitythatprocessesrawhempmaterialsinto 39hempproductsforconsumptionorsale; 40 (9)"Nonintoxicatinghempproduct",anyhempproductthat,evenifitcontains 41ahemp-derivedcannabinoidknowntoproduceintoxicatingeffects,isnotformulatedor 42marketedasaproductintendedtoproduceeuphoria,inebriation,orothersimilar 43effectsintheconsumer;thatisdesignedfortherapeutic,nutritional,orwellness 44purposes;andthatisnotintendedtoimpaircognitiveormotorfunctionsinthe 45consumer.Theterm"nonintoxicatinghempproduct"shallinclude,butnotbelimited 46to,thefollowing: 47 (a)Anyhempproductthatdoesnotcontainanyhemp-derivedcannabinoid 48otherthan: 49 a.Cannabichromene(CBC),includingcannabichromeneacid(CBCA)or 50cannabichromevarin(CBCV); 51 b.Cannabicitran(CBT),includingcannabitriolicacid(CBTA); 52 c.Cannabicyclol(CBL),includingcannabicyclolicacid(CBLA); 53 d.Cannabidiol(CBD),includingcannabidiolicacid(CBDA),cannabidivarin 54(CBDV),orcannabidiphorol(CBDP); 55 e.Cannabielsoin(CBE),includingcannabielsoicacid(CBEA); 56 f.Cannabigerol(CBG),includingcannabigerolicacid(CBGA), 57cannabigerovarin(CBGV),orcannabigerolmonomethylether(CBGM); 58 g.Cannabinol(CBN),includingcannabinolicacid(CBNA);or 59 h.Cannabivarin(CBV),includingcannabivarinicacid(CBVA); 60 (b)Anyhemp-derivedanimalfeedproduct; 61 (c)Anyhemp-derivedfiber,grain,ortopicalproduct;and 62 (d)Anyfull-spectrumcannabidiol(CBD)productinwhichCBDconstitutesat 63leasteightypercentofthetotalcannabinoidcontentanddelta-9THCdoesnotexceed 64three-tenthsofonepercentonadry-weightbasis; 65 (10)"Proofofage",avaliddriver'slicenseorgovernment-issuedidentification 66confirmingaperson'sageastwenty-oneyearsofageorolder; 67 (11)"Retailer",apersonorentitythatsellshempproductstoconsumersfor 68personaluseandnotforresale. HB1328 3 407.3073.1.Apersonorentityshallnotmanufactureintoxicatinghemp 2productsunlessthepersonorentityholdsamanufacturinglicenseissuedbythedivision 3underthissection. 4 2.Apersonorentityshallnotsellintoxicatinghempproductsunlesstheperson 5orentityholdsaretaillicenseissuedbythedivisionunderthissectionforeachlocation 6atwhichtheretailersellsintoxicatinghempproducts. 7 3.Anyholderofalicenseissuedunderthissectionshallpayanannuallicensing 8feeof: 9 (1)Formanufacturers,twohundredfiftydollars;and 10 (2)Forretailers,onehundreddollarsperlocation. 11 4.Allfeespayableunderthissectionshallbecollectedbythedivisionand 12transmittedtothedepartmentofrevenuefordepositinthestatetreasurytothecreditof 13thehempbusinessfundestablishedundersection407.3076. 14 5.Anapplicantforalicenseshallsubmit: 15 (1)Theannuallicensingfee; 16 (2)Foramanufacturer,proofofcompliancewithproductsafety,testing,and 17labelingrequirements;and 18 (3)Foraretailer,adescriptionoftheretailer'sage-verificationprocesses. 19 6.Licensesshallbevalidforoneyearfromthedateofissuanceandmaybe 20renewedannually.Anyrenewalapplicationshallbesubmittedatleastthirtydays 21beforethedateonwhichthelicenseexpiresandincludeproofofcompliancewiththe 22provisionsofsections407.3070to407.3115alongwiththeannuallicensingfee. 23 7.AnagriculturalproducerlicensedundertheUnitedStatesDepartmentof 24Agriculture'shempprogramshallnotbesubjecttothelicensingrequirementsofthis 25section,providedthattheproducerdoesnotengageinthemanufacturingorretailingof 26intoxicatinghempproducts. 27 8.Nothinginsections407.3070to407.3115prohibitsamanufacturerfrom 28holdingaretaillicenseoraretailerfromholdingamanufacturinglicense,providedthat 29eachlicenseisobtainedandthelicenseecomplieswithallprovisionsofsections407.3070 30to407.3115. 31 9.Anymanufacturerthatusesfiftykilogramsofrawcannabinoidsorlessper 32yearmayengageintheactivitiesofalicensedretaileratthelocationofits 33manufacturingoperationswithoutobtainingaretaillicense. 34 10.Anypersonorentitythatmanufacturesorsellsintoxicatinghempproducts 35withoutalicenseshallbesubjectto: 36 (1)Acivilfineofuptofivethousanddollarsperviolation; HB1328 4 37 (2)Seizureanddestructionofanyproductsthatfailtocomplywithsections 38407.3070to407.3115;and 39 (3)Apermanentprohibitionfromapplyingforalicense. 40 11.Counties,municipalities,andanyotherpoliticalsubdivisionsshallnot 41requirealocallicensetomanufactureorsellintoxicatinghempproductsandshallnot 42collectanylicensingfeefrommanufacturersorretailers. 407.3076.1.Thereisherebycreatedinthestatetreasurythe"HempBusiness 2Fund",whichshallconsistofallfeesauthorizedtobechargedbythedivisionunder 3section407.3073aswellastheexcisetaxrevenuecollectedundersections144.028and 4407.3088designatedfordepositintothefund.Thestatetreasurershallbecustodianof 5thefund.Inaccordancewithsections30.170and30.180,thestatetreasurermay 6approvedisbursements.Thefundshallbeadedicatedfundand,uponappropriation, 7moneysinthisfundshallbeusedsolelyfortheadministrationandenforcementof 8sections407.3070to407.3115andsection144.028. 9 2.Notwithstandingtheprovisionsofsection33.080tothecontrary,anymoneys 10remaininginthefundattheendofthebienniumshallnotreverttothecreditofthe 11generalrevenuefund. 12 3.Thestatetreasurershallinvestmoneysinthefundinthesamemanneras 13otherfundsareinvested.Anyinterestandmoneysearnedonsuchinvestmentsshallbe 14creditedtothefund. 407.3079.1.Amanufacturershallensurethattheprimaryrawhempingredient 2usedinthemanufactureofhempproductsundergoesfull-paneltesting.Thefinalhemp 3productsshallundergopotencytestingbeforebeingreleasedforsale. 4 2.Testingrequiredunderthissectionshalloccuronaper-batchbasis,and 5resultsshallconfirmcompliancewithfederalandstatesafetystandards. 6 3.Testingrequiredunderthissectionshallbeconductedbyanindependent 7laboratoryaccreditedtotheInternationalOrganizationforStandardization(ISO)/ 8InternationalElectrotechnicalCommission(IEC)17025standardbyanaccreditation 9bodyrecognizedundertheInternationalLaboratoryAccreditationCooperation(ILAC) 10MutualRecognitionArrangement. 11 4.Full-paneltestingoftheprimaryrawhempingredientusedinthe 12manufactureofahempproductshallincludetestingformicrobialcontaminantsand 13anyothersubstancesspecifiedbythedivisionbyrule. 14 5.Anysamplefailuremayberesubmittedforconfirmationoftestingfailurein 15accordancewiththefollowingprocedures: HB1328 5 16 (1)Ifareservesamplewasretainedbythesamelaboratorythatproducedthe 17certificateofanalysisdemonstratingatestfailure,thatlaboratorymayretestthe 18reservesamplefollowingthefailedtestinordertoconfirmcomponentcompliance; 19 (2)Iftheretestedsamplepassesforthesuspectcomponentorcomponents,anew 20samplefromthesamebatchshallbedrawnandsubmittedtoasecondlaboratoryfor 21completeretestingofallcomponentsrequiredtobetestedundertherulespromulgated 22bythedivision.Ifthesecondretestingconformstoallrequiredtolerances,thebatch 23shallbedeemedcompliantwithtestingrequirementsandmaybetransportedand 24distributedincommerce;and 25 (3)Ifareservesampleisnotavailablefromtheinitiallaboratoryorifasample 26failseitheroftheretests,thebatchshallbedeemednonconformingwiththetesting 27requirements. 28 6.(1)Amanufacturershallnottransport,orallowtransportof,abatchthathas 29failedmicrobialcontaminanttestingunless: 30 (a)Thebatchisfurtherprocessedbyamethodthateffectivelysterilizesthe 31batch,thebatchisretestedfollowingsuchprocessing,andtheresultsoftheretesting 32showconformancewithrequiredtolerances;or 33 (b)Thebatchisrenderedunusable. 34 (2)Amanufacturershallnottransport,orallowtransportof,abatchthathas 35failedTHCconcentrationtestingunless: 36 (a)Thebatchisfurtherprocessedbyamethodthateffectivelydilutesthebatch, 37thebatchisretestedfollowingsuchprocessing,andtheresultsoftheretestingshow 38conformancewithrequiredtolerances; 39 (b)Thebatchisunderimmediatetransporttoalicensedmanufacturerfor 40purposesofdilutingthebatchandthebatchandremediationplanarereportedtothe 41divisionpriortotransport;or 42 (c)Thebatchisrenderedunusable. 43 (3)Forallothercomponenttestingfailuresnotdescribedinsubdivisions(1)and 44(2)ofthissubsection,themanufacturershallrenderthebatchunusable. 407.3082.1.Eachbatchshallhaveacertificateofanalysisdetailingtheresults 2ofthetestingconductedundersection407.3079. 3 2.Manufacturersshallmaintaincertificatesofanalysisforeachprimaryraw 4hempingredientusedinthemanufactureofhempproductsandprovidethemto 5inspectorsuponrequest. 6 3.Retailersshallmaintaincertificatesofanalysisforeachbatchofhemp 7productstheysellandprovidethemtoinspectorsuponrequest. HB1328 6 8 4.Thecertificateofanalysisshallbemadeavailabletoconsumersviaaquick- 9responsecodeontheproductlabelthatprovidesaccessto: 10 (1)Thebatchnumber; 11 (2)Thedateoftesting;and 12 (3)Testingresultsforeachsubstancetested. 407.3085.1.Eachproductlabelforahempproductshallclearlydisplay: 2 (1)Totalcannabinoidcontentinmilligramsperpackageandperserving,if 3applicable; 4 (2)Aningredientlistwithpotentialallergens; 5 (3)Thenetweightoftheproduct; 6 (4)Abest-bydatenotexceedingtwoyearsfromthedatethebatchfromwhich 7thehempproductoriginatedwastestedundersection407.3079;and 8 (5)Aquick-responsecodelinkingtothecertificateofanalysisforthebatchfrom 9whichthehempproductoriginated. 10 2.Eachproductlabelforanintoxicatinghempproductshallincludethe 11followingwarningswiththetextforeachwarningasfollows: 12 (1)"Consumptionmayimpairtheabilitytooperateheavymachineryordrive."; 13 (2)"Notforusebyindividualsunder21yearsofage."; 14 (3)"Consultyourphysicianbeforeuseifyouarepregnant,breast-feeding,or 15takingmedications."; 16 (4)"ThisproducthasnotbeenapprovedbytheUnitedStatesFoodandDrug 17Administration(FDA)formedicaluse.";and 18 (5)"Consuminghempproductsmayresultinafaileddrugtest.". 19 3.Hempproductsshallnotbelabeledormarketedtoappealprimarilyto 20individualsundertwenty-oneyearsofage.Theuseofcartooncharacters,mythical 21creatures,orotherjuvenileimageryinthelabelingormarketingofahempproduct 22shallbeprohibited. 23 4.Labelingormarketingofhempproductsshallnotmimicpackagingor 24brandingoffood,beverages,orothernonhempproductsinamannerthatcouldcause 25consumerconfusion. 26 5.Anyadvertisementforanintoxicatinghempproductshallprominently 27includethefollowingdisclaimerorallyorinwriting:"Thisproductcontainshemp- 28derivedcannabinoids.Useresponsibly.Keepoutofreachofchildren.". 29 6.Labelingormarketingofhempproductsshallnotinfringeuponany 30trademarksprotectedbytheUnitedStatesPatentandTrademarkOfficeorthe 31Missouriofficeofthesecretaryofstate. HB1328 7 32 7.Unsubstantiatedclaimsofmedicalbenefitsshallbeprohibitedinanylabeling 33ormarketingofahempproductunlessapprovedbytheUnitedStatesFoodandDrug 34Administration. 35 8.Hemp-derivedanimalfeedproductsandhemp-derivedfiber,grain,and 36topicalproductsshallnotbesubjecttotheprovisionsofthissection. 407.3088.1.ForalltaxyearsbeginningonorafterJanuary1,2026,anexcise 2taxisleviedandimposedupontheretailsaleofintoxicatinghempproductsto 3consumerswithinthisstateattherateandinthemannersetforthinsection144.028. 4 2.Thefollowingpenaltiesmaybeimposedonanyretailerwhofailstocollector 5remittheexcisetaximposedbythissectionandsection144.028: 6 (1)Acivilfineofuptofivethousanddollarsperviolation;and 7 (2)Suspensionorrevocationofanyretaillicense. 407.3091.1.Thereisherebycreatedinthestatetreasurythe"MissouriHemp 2DevelopmentFund",whichshallconsistoftheexcisetaxrevenuecollectedunder 3sections144.028and407.3088designatedfordepositintothefund.Thestatetreasurer 4shallbecustodianofthefund.Inaccordancewithsections30.170and30.180,thestate 5treasurermayapprovedisbursements.Thefundshallbeadedicatedfundand,upon 6appropriation,moneysinthisfundshallbeusedsolelyasprovidedinthissection. 7 2.Notwithstandingtheprovisionsofsection33.080tothecontrary,anymoneys 8remaininginthefundattheendofthebienniumshallnotreverttothecreditofthe 9generalrevenuefund. 10 3.Thestatetreasurershallinvestmoneysinthefundinthesamemanneras 11otherfundsareinvested.Anyinterestandmoneysearnedonsuchinvestmentsshallbe 12creditedtothefund. 13 4.AfterallocatingmoneysinthefundtotheMissourihempresearch 14commissionestablishedinsection407.3094foritsbudgetedadministrativecosts,the 15moneysinthefundshallbeallocatedasfollows: 16 (1)Twenty-fivepercenttothedepartmentofhealthandseniorservicesfor: 17 (a)Publichealthinitiativesrelatedtohempproducts;and 18 (b)Educationprogramsonsafeandresponsibleuseofhempproducts; 19 (2)Twentypercenttothedepartmentofagricultureto: 20 (a)Supportsoilremediationprojectsusingindustrialhemp;and 21 (b)Developandpromotehempgrainandfiberindustries; 22 (3)Twenty-fivepercenttoveterans'programs,includingprogramsthatprovide 23veteranswithaccesstocannabinoidtherapiesandmentalhealthsupport;and 24 (4)ThirtypercenttotheMissourihempresearchcommissionforfunding 25researchandinitiativesdescribedinsection407.3094. HB1328 8 26 5.Thedepartmentofrevenueshallpublishquarterlyreportsdetailing: 27 (1)Thetotalexcisetaxrevenuecollected; 28 (2)Allocationstoeachprogramordepartment;and 29 (3)Outcomesandprogressreportsfromfundedprograms. 407.3094.1.The"MissouriHempResearchCommission"isherebyestablished 2withinthedepartmentofpublicsafetytooverseetheallocationoffundsdesignatedfor 3itsusefromtheMissourihempdevelopmentfundinsection407.3091forresearchand 4initiativesrelatedto: 5 (1)Hemp-derivedcannabinoidtherapies,withaninitialfocusonchronicpain 6managementandsymptommanagementofposttraumaticstressdisorderandtraumatic 7braininjuries; 8 (2)Soilremediation,includingsoilremediationin: 9 (a)AreascontaminatedbytheManhattanProject;and 10 (b)Contaminatedwellsandsurroundingecosystems;and 11 (3)Thepromotionandexpansionofhemp-basedindustries,includingthegrain, 12fiber,biofuels,andbioplasticsindustries. 13 2.Thecommissionshallbecomposedofsevenmembers,appointedbythe 14governorwiththeadviceandconsentofthesenate,asfollows: 15 (1)Onerepresentativefromthedepartmentofagriculture; 16 (2)Onerepresentativefromthedepartmentofhealthandseniorservices; 17 (3)Onerepresentativefromaveterans'advocacyorganization; 18 (4)Onerepresentativefromaninstitutionofhighereducationspecializingin 19agricultureorenvironmentalsciences;and 20 (5)Threeindustrystakeholders,asfollows: 21 (a)Onelicensedhempfarmer; 22 (b)Onelicensedhempmanufacturer;and 23 (c)Onelicensedhempretailer. 24 3.Thecommissionshalldevelopfundingprioritiesandapprovegrantsfor: 25 (1)Chronicpainmanagementresearchandclinicaltrialsofhemp-derived 26cannabinoidtherapies; 27 (2)Researchintotherapiesforposttraumaticstressdisorderandtraumatic 28braininjuriesthatusecannabinoids; 29 (3)Soilremediationpilotprogramsfocusedontheuseofindustrialhemp; 30 (4)Programstoremediatewatersystems,includingcontaminatedwells;and 31 (5)TheexpansionofMissouri'shempindustries,suchasthegrain,fiber,and 32renewablematerialsindustries. HB1328 9 33 4.Thecommissionshallpartnerwithacademicinstitutions,research 34organizations,andpublichealthagenciestoimplementapprovedprograms. 35 5.Thecommissionshallensurecompliancewithresearchstandardsand 36maintainoversightofprojectsfundedunderthissection. 37 6.Inawardinggrants,contracts,orfundingforresearchanddevelopment 38initiatives,thecommissionshall: 39 (1)GivepreferencetoMissouri-basedcompanies,licensedfarmers,andresearch 40institutions; 41 (2)Ensurethatatleastseventypercentoffundedcontractsareawardedto 42Missourientitiesunlessnosuitablein-stateapplicantmeetstheproject'srequirements; 43and 44 (3)Prioritizeprojectsthatcontributedirectlytothegrowthofthestate'shemp 45economy. 46 7.(1)Thecommissionshallpublishanannualreportdetailing: 47 (a)Researchfindingsandprogressfromfundedinitiatives; 48 (b)ExpendituresfromtheMissourihempdevelopmentfund;and 49 (c)Futurefundingprioritiesandgoals. 50 (2)Thecommissionshallsubmitthereporttothegovernorandmakethereport 51publiclyavailable. 52 8.Thecommissionmayestablishadvisorycommitteescomposedofstakeholders, 53including,butnotlimitedto,farmers,researchers,veterans,andpublichealthexperts, 54toprovideguidanceonspecificinitiatives. 55 9.Theadministrativecostsforthecommissionshallbefundedthrough 56allocationsfromtheMissourihempdevelopmentfund,butanysuchallocationsfor 57administrativecostsshallnotexceedtenpercentofthecommission'stotalannual 58budget. 407.3097.1.Nopersonshallsellordistributeintoxicatinghempproductsto 2individualsundertwenty-oneyearsofage. 3 2.Retailersshallverifyproofofageofapurchaserusingagovernment-issued 4identificationthatcontainsaphotographofthepurchaserforeverysaleofan 5intoxicatinghempproduct. 6 3.Anyretailerwhosellsordistributesintoxicatinghempproductstoindividuals 7undertwenty-oneyearsofageshallbesubjectto: 8 (1)Acivilfineofuptofivethousanddollarsperviolation;and 9 (2)Suspensionorrevocationoftheretailer'slicenseuponrepeatedviolations. HB1328 10 407.3100.1.Intoxicatinghempproductsthatarenotbeveragesshallbestored 2behindcountersorinlockeddisplaycasesinaccessibletocustomerswithoutemployee 3assistance. 4 2.Intoxicatinghempproductsthatarebeveragesshallbestoredanddisplayed 5inthesamemannerasalcoholicbeveragesarerequiredtobestoredanddisplayed 6understatelawincluding,butnotlimitedto,therequirementsto: 7 (1)Displaytheproductsinadesignatedbeveragesectionwhereage-restricted 8productsareclearlyidentifiedandseparatedfromnon-age-restrictedproducts;and 9 (2)Storetheproductsinsecure,monitoredareastopreventaccessby 10individualsundertwenty-oneyearsofage. 407.3103.1.Thedivisionmay: 2 (1)Conductrandom,unannouncedinspectionsoflicensedmanufacturersand 3retailers; 4 (2)Investigatecomplaintsofnoncompliancewithanyprovisionofsections 5407.3070to407.3115;and 6 (3)Seizenoncompliantproductsandissuenoticesofviolation. 7 2.Thedivisionmayimposeanyofthefollowingpenaltiesforviolationsofthe 8provisionsofsections407.3070to407.3115: 9 (1)Acivilfineofuptofivethousanddollarsperviolation; 10 (2)Suspensionorrevocationoflicensesforrepeatedviolations;or 11 (3)Confiscationanddestructionofnoncompliantproducts. 12 3.Anylicenseesubjecttoapenaltyforaviolationofsections407.3070to 13407.3115mayrequestahearingwithinthirtydaysofreceiptofanoticeofviolation.All 14hearingsshallbeconductedinaccordancewithstateadministrativeprocedures. 15 4.Thedivisionshallpublishanannualcompliancereportsummarizing: 16 (1)Thenumberofinspectionsconducted; 17 (2)Violationsidentifiedandpenaltiesissuedfortheviolations;and 18 (3)Improvementsinoverallcomplianceacrossthestate. 407.3106.1.Asusedinthissection,thefollowingtermsmean: 2 (1)"Safeharborhempproduct",ahemp-derivedcompoundorhemp-derived 3cannabinoid,whetherafinishedproductorintheprocessofbeingproduced,thatis 4manufacturedfordistribution,producedfordistribution,packagedfordistribution, 5processedfordistribution,preparedfordistribution,treatedfordistribution, 6transportedfordistribution,orheldfordistributioninthisstateforexportorresale 7outsidethisstatebutthatisnotsoldordistributedinthisstate; 8 (2)"Safeharbormanufacturerorstoragefacility",afacilitythatmanufactures 9fordistribution,producesfordistribution,packagesfordistribution,processesfor HB1328 11 10distribution,preparesfordistribution,treatsfordistribution,transportsfor 11distribution,orholdsfordistributionasafeharborhempproduct. 12 2.Sections407.3070to407.3115shallnotapplytoany: 13 (1)Safeharborhempproduct;or 14 (2)Safeharbormanufacturerorstoragefacility. 15 3.Hempproductsintendedfordistributionorresaleoutsidethisstateare 16exemptfromanyrequirementsofthedivision.Suchproductsaresubjectonlytothe 17regulationsofthedestinationstateorcountry. 407.3109.Manufacturersandretailersshallobtainanyrequiredlicensesand 2ensurefullcompliancewiththeprovisionsofsections407.3070to407.3115beforeJuly1, 32026. 407.3112.1.Notwithstandingtheprovisionsofchapter195or579oranyother 2provisionoflawtothecontrary,anypurchase,possession,consumption,use, 3manufacture,transportation,ordistributionofanyhempproductthatcomplieswith 4theprovisionsofsections407.3070to407.3115shallbelawful. 5 2.Ifthesaleofanyhempproductbecomesillegalunderfederallaw,thesaleof 6anysuchhempproductinthisstateshallbeprohibited,andthefollowingprovisions 7shallapplyifthefederallawprohibitsthesaleofallintoxicatinghempproducts: 8 (1)Anylicenseissuedbythedivisionundersections407.3070to407.3115shall 9berevoked;and 10 (2)Thedivisionshallnotbegin,orshallstop,issuinganylicensesundersections 11407.3070to407.3115. 407.3115.Thedivisionandthedepartmentofrevenueshallpromulgateany 2rules,forms,andproceduresnecessarytoimplementtheprovisionsofsections407.3070 3to407.3115andsection144.028beforeMarch1,2026.Anyruleorportionofarule,as 4thattermisdefinedinsection536.010,thatiscreatedundertheauthoritydelegatedin 5thissectionshallbecomeeffectiveonlyifitcomplieswithandissubjecttoallofthe 6provisionsofchapter536and,ifapplicable,section536.028.Thissectionandchapter 7536arenonseverableandifanyofthepowersvestedwiththegeneralassembly 8pursuanttochapter536toreview,todelaytheeffectivedate,ortodisapproveandannul 9arulearesubsequentlyheldunconstitutional,thenthegrantofrulemakingauthority 10andanyruleproposedoradoptedaftertheeffectivedateofthissectionshallbeinvalid 11andvoid. ✔ HB1328 12