FIRST REGULAR SESSION
SENATE BILL NO. 697
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
2569S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 312, RSMo, by adding thereto nine new sections relating to hemp businesses,
with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 312, RSMo, is amended by adding thereto 1
nine new sections, to be known as sections 312.1000, 312.1005, 2
312.1010, 312.1015, 312.1020, 312.1025, 312.1030, 312.1035, and 3
312.1040, to read as follows:4
312.1000. As used in sections 312.1000 to 312.1040, 1
the following terms mea n: 2
(1) "Department", the department of health and senior 3
services; 4
(2) "Division", the division of alcohol and tobacco 5
control; 6
(3) "Hemp beverage" or "hemp beverage product", a 7
beverage intended for human consumption, which does not 8
include cannabis flower or cannabis concentrate; and: 9
(a) Contains or consists of hemp plant parts; or 10
(b) Contains hemp concentrate or artificially derived 11
cannabinoids in combination with other ingredients; 12
(4) "Hemp business", one of the following licensed 13
under sections 312.1000 to 312.1040: 14
(a) Hemp beverage manufacturer; 15
(b) Hemp beverage wholesaler; or 16
(c) Hemp beverage retailer. 17 SB 697 2
"Hemp business" does not include a person or entity licensed 18
to grow industrial he mp for commercial or research purposes 19
or to process industrial hemp for commercial purposes; 20
(5) "Hemp concentrate": 21
(a) The extracts and resins of a hemp plant or hemp 22
plant parts; 23
(b) The extracts or resins of a hemp plant or hemp 24
plant parts that are refined to increase the presence of 25
targeted cannabinoids; or 26
(c) A product that is produced by refining extracts or 27
resins of a hemp plant or hemp plant parts and is intended 28
to be consumed by combustion or vaporization of the product 29
and inhalation of smoke, aerosol, or vapor from the product. 30
"Hemp concentrate" does not include artificially derived 31
cannabinoids, hemp beverages, hemp -derived consumer 32
products, or hemp-derived topical products; 33
(6) "Hemp plant", all pa rts of the plant of the genus 34
Cannabis that is growing or has not been harvested and has a 35
delta-9 tetrahydrocannabinol concentration of no more than 36
three-tenths of one percent on a dry weight basis; 37
(7) "Hemp plant parts", any part of the harves ted hemp 38
plant, including the flower, bud, leaves, stems, and stalk, 39
but does not include derivatives, extracts, cannabinoids, 40
isomers, acids, salts, and salts of isomers that are 41
separated from the plant. "Hemp plant parts" do not include 42
hemp fiber products, hemp grain, or hemp seed; 43
(8) "Hemp seed", the viable seed of the plant of the 44
genus Cannabis that is intended to be planted and is 45
reasonably expected to grow into a hemp plant. "Hemp seed" 46
does not include cannabis seed or hemp grain ; 47 SB 697 3
(9) "Industrial hemp", the plant Cannabis sativa L. 48
and any part of the plant, whether growing or not, including 49
the plant's seeds, and all the plant's derivatives, 50
extracts, cannabinoids, isomers, acids, salts, and salts of 51
isomers, whether growing or not, with a delta -9 52
tetrahydrocannabinol concentration of not more than three - 53
tenths of one percent on a dry weight basis. Industrial 54
hemp is not marijuana, as defined under article XIV of the 55
Constitution of Missouri. 56
312.1005. 1. The division shall issue the following 1
types of hemp business licenses: 2
(1) Hemp beverage manufacturer; 3
(2) Hemp beverage wholesaler; and 4
(3) Hemp beverage retailer. 5
2. Notwithstanding any provisions of sections 312.1000 6
to 312.1040 or chapter 311 to the contrary, there shall be 7
no interpretations that prohibit liquor licensees from 8
manufacturing, distributing, or selling hemp beverage 9
products that comply with the provisions of sections 10
312.1000 to 312.1040 and any other rules adopted by the 11
division. 12
3. A person, cooperative, or business may hold both a 13
hemp beverage manufacturer and hemp beverage retailer 14
license, but may only operate hemp beverage retail 15
operations on site at the premises in which the he mp 16
beverage product is manufactured. 17
4. Except as otherwise provided in this section, no 18
person, cooperative, or business holding any one of the 19
three types of hemp beverage licenses shall hold either of 20
the other two types of hemp beverage licen ses and shall not 21
have a financial interest, either direct or indirect, in a 22 SB 697 4
person, cooperative, or business holding any of the other 23
two types of hemp beverage licenses. 24
5. Except as otherwise provided in this section, no 25
hemp beverage manufact urer shall sell or otherwise convey 26
hemp beverage products to retailers. Hemp beverage 27
manufacturers are authorized to solicit and sell hemp 28
beverage products to hemp beverage wholesalers. Hemp 29
beverage wholesalers are authorized to solicit and sell hemp 30
beverage products to hemp beverage retailers. 31
6. A person, cooperative, or business holding a hemp 32
beverage manufacturer license, a hemp beverage wholesaler 33
license, or a hemp beverage retailer license, or any 34
combination of the three, shall not hold a marijuana 35
facility license or a medical facility license, as such 36
terms are defined in article XIV of the Constitution of 37
Missouri. 38
7. No license shall be issued to a hemp beverage 39
retailer unless the hemp beverage retailer also has a n 40
active license issued by the division allowing it to sell 41
alcoholic beverages. This restriction shall not apply to 42
hemp beverage manufacturers or hemp beverage wholesalers, 43
unless they are seeking a hemp beverage retailer license. 44
8. No hemp beverage wholesaler or hemp beverage 45
retailer shall distribute or sell any hemp beverage products 46
that the wholesaler or retailer knows or reasonably should 47
know were manufactured outside of the United States. 48
312.1010. 1. The division, by rule, shall establish 1
forms and procedures for the processing of hemp licenses 2
issued under sections 312.1000 to 312.1040. At a minimum, 3
any application to obtain or renew a hemp business license 4
shall include the following information, if appl icable: 5 SB 697 5
(1) The name, address, and date of birth of the 6
applicant; 7
(2) The address and legal property description of the 8
business; 9
(3) Proof of business name registration; 10
(4) Certification that the applicant shall comply with 11
the requirements of sections 312.1000 to 312.1040 relating 12
to the ownership and operation of a hemp business; 13
(5) Identification of one or more controlling persons 14
or managerial employees as agents who shall be responsible 15
for dealing with the divis ion on all matters; and 16
(6) A statement that the applicant agrees to respond 17
to the division's supplemental requests for information. 18
2. An application on behalf of a corporation, limited 19
liability company, partnership, or association shall b e 20
signed by at least two officers or managing agents of that 21
entity. 22
3. The division may issue a hemp business license to 23
an applicant who: 24
(1) Is, or is owned and managed by persons, at least 25
twenty-one years of age who has or have not bee n convicted 26
of a felony related to controlled substances within the 27
previous ten years in any state or federal jurisdiction and 28
who is or are current in filing all applicable tax returns 29
to the department of revenue and in payment of all taxes, 30
interest, and penalties assessed by the department of 31
revenue; 32
(2) Has completed an application for licensure or 33
application for renewal and has fully and truthfully 34
complied with all information requests relating to license 35
application and renewal; 36 SB 697 6
(3) Has paid the applicable application and license 37
fees. For hemp beverage manufacturers, the license fee 38
shall be one thousand dollars. For hemp beverage 39
wholesalers, the license fee shall be five hundred dollars. 40
For hemp beverage retailers, the license fee shall be two 41
hundred fifty dollars per location, and shall not exceed 42
five thousand dollars for an entity with multiple locations; 43
(4) Is not employed by the division, department, or 44
any other state agency with regulatory authority over 45
sections 312.1000 to 312.1040; and 46
(5) Does not hold any marijuana facility or medical 47
facility license, as such terms are defined in article XIV 48
of the Constitution of Missouri. 49
4. Licenses shall be renewed annually. 50
5. Licenses shall not be transferred. 51
6. The division shall promulgate such regulations 52
related to hemp business licensees for the administration of 53
sections 312.1000 to 312.1040 and shall design all necessary 54
forms. Any rule or portion of a rule, as that t erm is 55
defined in section 536.010, that is created under the 56
authority delegated in this section shall become effective 57
only if it complies with and is subject to all of the 58
provisions of chapter 536 and, if applicable, section 59
536.028. This section and chapter 536 are nonseverable and 60
if any of the powers vested with the general assembly 61
pursuant to chapter 536 to review, to delay the effective 62
date, or to disapprove and annul a rule are subsequently 63
held unconstitutional, then the grant of rulem aking 64
authority and any rule proposed or adopted after August 28, 65
2025, shall be invalid and void. 66
7. Whenever it shall be determined that a hemp 67
business licensee has violated any of the provisions of 68 SB 697 7
sections 312.1000 to 312.1040, the superviso r of the 69
division may warn, place on probation on such terms and 70
conditions as the supervisor deems appropriate for a period 71
not to exceed twelve months, fine in an amount not to exceed 72
five thousand dollars per violation, suspend for a period 73
not to exceed twelve months, or revoke the license of the 74
licensee. The licensee shall have thirty days' notice of 75
the imposition of discipline and may seek a determination 76
thereon by the administrative hearing commission pursuant to 77
the provisions of sectio n 621.045. 78
8. (1) There is hereby created in the state treasury 79
the "Hemp-Derived Products Fund", which shall consist of all 80
fees authorized to be charged by the division under this 81
section. The state treasurer shall be custodian of the 82
fund. In accordance with sections 30.170 and 30.180, the 83
state treasurer may approve disbursements. The fund shall 84
be a dedicated fund and money in the fund shall be used 85
solely by the division for the purposes of administration of 86
sections 312.1000 to 312. 1040. 87
(2) Notwithstanding the provisions of section 33.080 88
to the contrary, any moneys remaining in the fund at the end 89
of the biennium shall not revert to the credit of the 90
general revenue fund. 91
(3) The state treasurer shall invest moneys i n the 92
fund in the same manner as other funds are invested. Any 93
interest and moneys earned on such investments shall be 94
credited to the fund. 95
312.1015. 1. A hemp beverage manufacturer license 1
entitles the license holder to: 2
(1) Purchase hemp plant parts, hemp concentrate, and 3
artificially derived cannabinoids from cannabis 4 SB 697 8
manufacturers, cannabis wholesalers, and hemp beverage 5
manufacturers; 6
(2) Purchase hemp plant parts and propagules from 7
industrial hemp growers; 8
(3) Purchase hemp concentrate from industrial hemp 9
processors; 10
(4) Make hemp concentrate; 11
(5) Manufacture artificially derived cannabinoids; 12
(6) Manufacture hemp beverages for public consumption; 13
(7) Package and label hemp bev erages for sale to 14
customers; 15
(8) Sell hemp concentrate to cannabis businesses and 16
other hemp businesses; 17
(9) Sell hemp beverage products to hemp beverage 18
wholesalers; and 19
(10) Perform any other actions approved by the 20
department and division. 21
2. All hemp beverage manufacturing shall take place in 22
a facility and on equipment that meets the applicable health 23
and safety requirements established by the department, 24
including requirements for cleaning and testing machinery 25
between production of different products. 26
3. A hemp beverage manufacturer shall comply with all 27
applicable packaging, labeling, and testing requirements 28
established by the department. Labels and packaging for the 29
hemp beverage products shall not consist of images or 30
designs that suggest that the products are intended for 31
consumption by children. 32
4. All hemp beverage products shall be registered by 33
the manufacturer with the department prior to sale. 34 SB 697 9
5. A hemp beverage manufacturer that crea tes hemp 35
concentrate or artificially derived cannabinoids shall 36
obtain an endorsement from the department. 37
6. A hemp beverage manufacturer seeking an endorsement 38
to create hemp concentrate shall inform the department of 39
all methods of extraction and concentration that the 40
manufacturer intends to use and identify the volatile 41
chemicals, if any, that will be involved in the creation of 42
hemp concentrate. A hemp beverage manufacturer shall not 43
use a method of extraction and concentration or a vol atile 44
chemical without approval by the department. 45
7. A hemp beverage manufacturer seeking an endorsement 46
to create artificially derived cannabinoids shall inform the 47
department of all methods of conversion that the 48
manufacturer will use, includi ng any specific catalysts that 49
the manufacturer will employ, to create artificially derived 50
cannabinoids and the molecular nomenclature of all 51
cannabinoids or other chemical compounds that the 52
manufacturer will create. A business licensed or authorize d 53
to manufacture hemp beverages shall not use a method of 54
conversion or a catalyst without approval by the department. 55
8. A hemp beverage manufacturer shall obtain a 56
certification from an independent third -party industrial 57
hygienist or profession al engineer approving: 58
(1) All electrical, gas, fire suppression, and exhaust 59
systems; and 60
(2) The plan for safe storage and disposal of 61
hazardous substances, including, but not limited to, any 62
volatile chemicals. 63
9. Upon the sale of hemp concentrate or artificially 64
derived cannabinoids to any person, cooperative, or 65
business, a hemp beverage manufacturer shall provide a 66 SB 697 10
statement to the buyer that discloses the method of 67
extraction and concentration or conversion used and any 68
solvents, gases, or catalysts, including, but not limited 69
to, any volatile chemicals involved in that method. 70
10. All areas within the premises of a hemp beverage 71
manufacturer used for producing hemp beverages shall meet 72
the sanitary standards specifi ed in rules adopted by the 73
department. 74
11. A hemp beverage manufacturer may only add 75
chemicals or compounds approved by the department to hemp 76
concentrate or artificially derived cannabinoids. 77
12. Upon the sale of any hemp beverage, a hemp 78
beverage manufacturer shall provide a statement to the buyer 79
that discloses the product's ingredients, including, but not 80
limited to, any chemicals or compounds and any major food 81
allergens declared by name. 82
13. A hemp beverage manufacturer shall not add any 83
artificially derived cannabinoid, hemp plant part, or hemp 84
concentrate to a product if the manufacturer of the product 85
holds a trademark to the product's name, except that a hemp 86
beverage manufacturer may use a trademarked food product if 87
the manufacturer uses the product as a component or as part 88
of a recipe and if the hemp beverage manufacturer does not 89
state or advertise to the customer that the final retail 90
hemp beverage product contains a trademarked food product. 91
14. A hemp beverage manufacturer shall not add any 92
cannabis flower, cannabis concentrate, or cannabinoid 93
derived from cannabis flower or cannabis concentrate to a 94
product. 95
15. The hemp beverage manufacturer shall have a hemp 96
beverage product tested prior to distribution to confirm 97
compliance with all statutory and regulatory requirements. 98 SB 697 11
The testing shall be performed by a laboratory holding an 99
ISO 17025 accreditation or that is registered with the Drug 100
Enforcement Administration in accordance with 21 C FR 101
1301.13, and which does not have a direct or indirect 102
interest in the entity whose product is being tested. 103
16. No hemp beverage manufacturer who designates a 104
specific geographic area for which a hemp beverage 105
wholesaler shall be responsible, shall enter into any 106
agreement with any other person for the purpose of 107
establishing an additional wholesaler for the same brands of 108
hemp beverage products in such designated area. 109
17. Any hemp beverage manufacturer or wholesaler who 110
violates the provisions of this section, or permit its 111
employees, officers, or agents to do so, shall be guilty of 112
a misdemeanor, and upon conviction thereof shall be punished 113
only as follows: 114
(1) For the first offense, by a fine of one thousand 115
dollars; 116
(2) For the second offense, by a fine of five thousand 117
dollars; and 118
(3) For the third or any subsequent offense, by a fine 119
of twenty-five thousand dollars. 120
312.1020. 1. A hemp beverage wholesaler may transport 1
hemp beverages on public roadways provided: 2
(1) The hemp beverages are in a safe and secured 3
storage compartment that is part of the motor vehicle or in 4
a locked storage container that has a separate key or 5
combination pad; 6
(2) The hemp beverages are pac kaged in tamper-evident 7
containers that are not visible or recognizable from outside 8
the transporting vehicle; 9 SB 697 12
(3) The hemp beverage wholesaler has a shipping 10
manifest in the hemp beverage wholesaler's possession that 11
describes the contents of al l tamper-evident containers; 12
(4) All departures, arrivals, and stops are 13
appropriately documented; and 14
(5) No person other than a designated employee enters 15
a vehicle at any time that the vehicle is transporting hemp 16
beverages. 17
2. A hemp beverage wholesaler may sell to retailers 18
hemp beverage products that: 19
(1) Are obtained from a licensed Missouri hemp 20
beverage manufacturer; 21
(2) Meet all applicable packaging and labeling 22
requirements established by the department; and 23
(3) Comply with any other rules adopted by the 24
department. 25
3. Any vehicle assigned for the purposes of hemp 26
beverages is subject to inspection by the division at any 27
time. 28
4. Any hemp beverage products stored by a hemp 29
beverage wholesaler shall be stored in a secure climate - 30
controlled location that is locked and inaccessible to the 31
general public. 32
5. All hemp beverage wholesalers shall be resident 33
businesses. A "resident business" shall be a business 34
created under the laws of Missouri, in which at least sixty 35
percent of all of the financial interest in the business is 36
owned by bona fide Missouri residents who have continuously 37
resided in Missouri for a period of at least three years 38
immediately prior to the date of filing o f the application 39
for a license, and in which at least sixty percent of all 40
directors, officers, or managers of the business are bona 41 SB 697 13
fide Missouri residents who have continuously resided in 42
Missouri for a period of at least three years immediately 43
prior to the date of filing of the application for a license. 44
312.1025. 1. A hemp beverage retailer shall only sell 1
hemp beverages to individuals who are at least twenty -one 2
years of age. No person under twenty -one years of age shall 3
sell or assist in the sale or dispensing of the hemp 4
beverages. 5
2. A hemp beverage retailer shall not sell any product 6
the retailer knows, or has reason to know, contains more 7
than three-tenths of one percent of tetrahydrocannabinol 8
content. 9
3. A hemp beverage retailer may sell hemp beverage 10
products that: 11
(1) Are obtained from a licensed Missouri hemp 12
beverage wholesaler or is manufactured by the hemp beverage 13
retailer as a licensed hemp beverage manufacturer on the 14
premises it is sold; and 15
(2) Meet all applicable packaging and labeling 16
requirements established by the department. 17
4. A hemp beverage retailer shall not ship or deliver 18
hemp beverages to consumers, and all sales of hemp beverage 19
products shall be made o n the licensed premise of the hemp 20
beverage retailer. 21
5. A hemp beverage retailer may sell other products or 22
items for which the hemp beverage retailer has a license or 23
authorization or that do not require a license or 24
authorization. 25
6. It shall constitute a class B misdemeanor for a 26
hemp beverage retailer or any other person to sell or 27
provide hemp beverage products to a person under twenty -one 28
years of age. It shall constitute a class B misdemeanor for 29 SB 697 14
a person under twenty -one years of age to knowingly acquire, 30
possess, or consume a hemp beverage product. 31
Notwithstanding the other provisions of this section to the 32
contrary, law enforcement efforts utilizing a person under 33
twenty-one years of age but at least eighteen years of age , 34
wherein the person does not consume the hemp beverage 35
product, are not precluded. The division may enforce 36
compliance with this section by conducting random, 37
unannounced inspections at locations where such products are 38
sold or distributed to ensure compliance with sections 39
312.1000 to 312.1040. The division shall submit an annual 40
publicly accessible report to the general assembly 41
describing in detail the division's enforcement efforts. 42
7. A hemp beverage retailer shall ensure that all hemp 43
beverages offered for sale comply with the limits on the 44
amount and types of cannabinoids that a hemp beverage 45
product can contain, including, but not limited to, the 46
requirement that hemp beverages: 47
(1) Consist of servings that contain no more than five 48
milligrams of delta-9 tetrahydrocannabinol, no more than 49
twenty-five milligrams of cannabidiol, no more than twenty - 50
five milligrams of cannabigerol, or any combination of those 51
cannabinoids that does not exceed the identified amounts; 52
(2) Do not contain more than a combined total of five - 53
tenths of a milligram of all other cannabinoids per serving; 54
and 55
(3) Do not contain an artificially derived cannabinoid 56
other than delta-9 tetrahydrocannabinol. 57
8. If a hemp beverage is pa ckaged in a manner that 58
includes more than a single serving, the hemp beverage label 59
shall indicate each serving by scoring, wrapping, or other 60
indicators that appear on the hemp beverage label 61 SB 697 15
designating the individual serving size. If it is not 62
possible to indicate a single serving by an indicator that 63
appears on the product, the hemp beverage shall not be 64
packaged in a manner that includes more than a single 65
serving in each container. The hemp beverage container 66
shall not contain more than tw o servings per container. No 67
hemp beverage container may contain more than five 68
milligrams of delta-9 tetrahydrocannabinol total. 69
9. A hemp beverage retailer shall not: 70
(1) Sell a hemp beverage to a person who is visibly 71
intoxicated; 72
(2) Sell cannabis flower or cannabis products; or 73
(3) Allow for the dispensing of hemp beverage products 74
in vending machines. 75
10. A hemp beverage retailer may permit onsite 76
consumption of hemp beverage products on a portion of its 77
premises if the hemp beverage retailer sells other nonhemp 78
beverage products that are consumed by consumers onsite at 79
the retail premises and earns at least seventy -five percent 80
of its revenue from the sale of nonhemp beverage products 81
that are consumed by consu mers onsite. 82
11. A hemp beverage retailer shall ensure that hemp 83
beverage products sold for onsite consumption comply with 84
sections 312.1000 to 312.1040 and rules adopted pursuant to 85
sections 312.1000 to 312.1040 regarding testing. 86
12. Hemp beverage products may be served outside of 87
their packaging provided that the information that is 88
required to be contained on the label of a hemp beverage is 89
posted or otherwise prominently displayed by the hemp 90
beverage retailer. 91
13. Food and beverages not otherwise prohibited by 92
this section may be prepared and sold onsite provided that 93 SB 697 16
the hemp beverage retailer complies with all relevant state 94
and local laws, ordinances, licensing requirements, and 95
zoning requirements. 96
14. A hemp beverage retailer with an onsite 97
consumption endorsement shall not: 98
(1) Sell hemp beverage products to a customer who the 99
hemp beverage retailer knows or reasonably should know is 100
intoxicated, either from consumption of alcohol, other hemp 101
beverages, or any other drug; 102
(2) Sell hemp beverage products that are designed or 103
reasonably expected to be mixed with an alcoholic beverage; 104
or 105
(3) Permit hemp beverage products that have been 106
removed from the products' packaging to be removed from the 107
premises of the hemp beverage retailer. 108
15. A hemp beverage retailer shall maintain compliance 109
with state and local building, fire, and zoning codes, 110
requirements, or regulations. 111
16. A hemp beverage retailer shall ensure that the 112
licensed premises is maintained in a clean and sanitary 113
condition, free from infestation by insects, rodents, or 114
other pests. 115
17. No hemp beverage manufacturer or wholesaler may 116
pay to a hemp beverage retailer, nor shall any hemp beverage 117
retailer accept, any payment, credit, or any other 118
consideration to induce the hemp beverage retailer to 119
advertise or display a hemp beverage product in a certain 120
manner on the hemp beverage product's licensed premises. 121
Further, no hemp beverage manufacturer or w holesaler may pay 122
to a hemp beverage retailer any fee rental or other 123
consideration for the use of any part of the licensed retail 124 SB 697 17
premises for advertising any brand name for the purpose of 125
advertising the same. 126
18. A hemp beverage retailer is su bject to inspection 127
by the division at any time. 128
19. The division shall not issue a hemp beverage 129
license to any retail establishment located within three 130
hundred feet of any educational institution providing 131
education to children at any level be tween preschool and 132
twelfth grade, or the equivalent, nor to any retail 133
establishment located within three hundred feet of any 134
church or place of worship. 135
312.1030. 1. As used in this section, "franchise" 1
means a written or oral ar rangement for a definite or 2
indefinite period in which a person grants to another person 3
a license to use a trade name, trademark, service mark, or 4
related characteristic, and in which there is a community of 5
interest in the marketing of goods or servi ces at wholesale, 6
retail, by lease, agreement, or otherwise, including, but 7
not limited to, a commercial relationship of definite 8
duration or continuing indefinite duration, between a hemp 9
beverage wholesaler, to hemp beverage retailers, duly 10
licensed in this state, and a hemp beverage manufacturer, 11
and wherein a hemp beverage wholesaler is granted the right 12
to offer, sell, and distribute within this state or any 13
designated area thereof some or all of the hemp beverage 14
manufacturer's hemp beverage products to hemp beverage 15
retailers. 16
2. If more than one franchise for the same brand or 17
brands of hemp beverage products is granted to different 18
hemp beverage wholesalers in Missouri, it is a violation for 19
any hemp beverage manufacturers to disc riminate between the 20 SB 697 18
wholesalers with respect to any of the terms, provisions, 21
and conditions of these franchises. 22
3. Notwithstanding the terms, provisions, and 23
conditions of any franchise, no hemp beverage manufacturer 24
shall unilaterally termina te or refuse to continue or change 25
substantially the condition of any franchise with the hemp 26
beverage wholesaler unless the manufacturer has first 27
established good cause for such termination, noncontinuance, 28
or change. 29
4. Any hemp beverage whole saler may bring an action in 30
a court of competent jurisdiction against a hemp beverage 31
manufacturer for violation of any of the provisions of this 32
section and may recover damages sustained by such wholesaler 33
together with the costs of the action and re asonable 34
attorney's fees. 35
5. In any action brought by a hemp beverage wholesaler 36
against a hemp beverage manufacturer for termination, 37
noncontinuance, or substantial change in violation of the 38
provisions of this section, it is a complete defense for the 39
hemp beverage manufacturer to prove that the termination, 40
noncontinuance, or change was done in good faith and for 41
good cause. 42
6. As used in this section, "good faith" is the duty 43
of each party to any franchise and all officers, employees , 44
or agents thereof to act in a fair and equitable manner 45
towards each other, and "good cause" means the following: 46
(1) Failure by the hemp beverage wholesaler to comply 47
substantially with the provisions of an agreement or 48
understanding with the hemp beverage manufacturer, which 49
provisions are both essential and reasonable; 50
(2) Use of bad faith or failure to observe reasonable 51
commercial standards of fair dealing in the trade; or 52 SB 697 19
(3) Revocation or suspension for more than thirty days 53
of the hemp beverage wholesaler's state or local license 54
required for normal operations of its business. 55
312.1035. 1. A hemp beverage product that is sold in 1
this state shall be labeled with consumer protection 2
warnings in the form of statements that cover all of the 3
following: 4
(1) A list of ingredients and possible allergens and a 5
nutritional fact panel or have a code that can be scanned 6
that directs consumers to a website containing the list of 7
ingredients and possible allergens and a nutritional fact 8
panel; 9
(2) A statement that use while pregnant or 10
breastfeeding may be harmful; 11
(3) A statement that consumption of certain 12
cannabinoids may impair your ability to drive and operate 13
heavy machinery; 14
(4) A statement that the product is not approved by 15
the U.S. Food and Drug Administration; 16
(5) A statement to keep out of reach of children; 17
(6) A statement to consult your physician before use; 18
(7) The amount of hemp-derived cannabinoid i n each 19
serving of the product, measured in milligrams; 20
(8) The total amount of hemp -derived cannabinoid in 21
the entire package, measured in milligrams; 22
(9) The net weight of the product; and 23
(10) An expiration date in accordance with app licable 24
federal or state law. 25
2. A manufacturer, wholesaler, or retailer of a hemp 26
beverage product shall not advertise, market, or offer for 27
sale the product by using, in the labeling or design of the 28
product or product packaging or in advertisi ng or marketing 29 SB 697 20
materials for the product trade dress, trademarks, branding, 30
or other related materials, any imagery or scenery that 31
depicts or signifies characters or symbols known to appeal 32
primarily to persons under twenty -one years of age, 33
including, but not limited to, superheroes, comic book 34
characters, video game characters, television show 35
characters, movie characters, and mythical creatures. 36
312.1040. 1. An excise tax at the rate of seven 1
percent is imposed on the retai l sale of a hemp beverage 2
product. The tax is in addition to any tax imposed under 3
any other provision of federal, state, or local law. 4
2. The tax imposed by this section is intended to be 5
passed on to and borne by the purchaser of the hemp -derived 6
consumable product. The tax is a debt from the purchaser to 7
the retailer until paid. A retailer is considered to act as 8
a trustee on behalf of the state when it collects tax from 9
the purchaser on a taxable transaction. The tax shall be 10
stated and charged separately on any documentation provided 11
to the purchaser by the retailer at the time of the 12
transaction. 13