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Missouri Senate Bill SB697

Missouri 2025 Regular Session

Missouri Senate Bill SB697 Compare Versions

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22 FIRST REGULAR SESSION
33 SENATE BILL NO. 697
44 103RD GENERAL ASSEMBLY
55 INTRODUCED BY SENATOR HENDERSON.
66 2569S.01I KRISTINA MARTIN, Secretary
77 AN ACT
88 To amend chapter 312, RSMo, by adding thereto nine new sections relating to hemp businesses,
99 with penalty provisions.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
1212 Section A. Chapter 312, RSMo, is amended by adding thereto 1
1313 nine new sections, to be known as sections 312.1000, 312.1005, 2
1414 312.1010, 312.1015, 312.1020, 312.1025, 312.1030, 312.1035, and 3
1515 312.1040, to read as follows:4
1616 312.1000. As used in sections 312.1000 to 312.1040, 1
1717 the following terms mea n: 2
1818 (1) "Department", the department of health and senior 3
1919 services; 4
2020 (2) "Division", the division of alcohol and tobacco 5
2121 control; 6
2222 (3) "Hemp beverage" or "hemp beverage product", a 7
2323 beverage intended for human consumption, which does not 8
2424 include cannabis flower or cannabis concentrate; and: 9
2525 (a) Contains or consists of hemp plant parts; or 10
2626 (b) Contains hemp concentrate or artificially derived 11
2727 cannabinoids in combination with other ingredients; 12
2828 (4) "Hemp business", one of the following licensed 13
2929 under sections 312.1000 to 312.1040: 14
3030 (a) Hemp beverage manufacturer; 15
3131 (b) Hemp beverage wholesaler; or 16
3232 (c) Hemp beverage retailer. 17 SB 697 2
3333 "Hemp business" does not include a person or entity licensed 18
3434 to grow industrial he mp for commercial or research purposes 19
3535 or to process industrial hemp for commercial purposes; 20
3636 (5) "Hemp concentrate": 21
3737 (a) The extracts and resins of a hemp plant or hemp 22
3838 plant parts; 23
3939 (b) The extracts or resins of a hemp plant or hemp 24
4040 plant parts that are refined to increase the presence of 25
4141 targeted cannabinoids; or 26
4242 (c) A product that is produced by refining extracts or 27
4343 resins of a hemp plant or hemp plant parts and is intended 28
4444 to be consumed by combustion or vaporization of the product 29
4545 and inhalation of smoke, aerosol, or vapor from the product. 30
4646 "Hemp concentrate" does not include artificially derived 31
4747 cannabinoids, hemp beverages, hemp -derived consumer 32
4848 products, or hemp-derived topical products; 33
4949 (6) "Hemp plant", all pa rts of the plant of the genus 34
5050 Cannabis that is growing or has not been harvested and has a 35
5151 delta-9 tetrahydrocannabinol concentration of no more than 36
5252 three-tenths of one percent on a dry weight basis; 37
5353 (7) "Hemp plant parts", any part of the harves ted hemp 38
5454 plant, including the flower, bud, leaves, stems, and stalk, 39
5555 but does not include derivatives, extracts, cannabinoids, 40
5656 isomers, acids, salts, and salts of isomers that are 41
5757 separated from the plant. "Hemp plant parts" do not include 42
5858 hemp fiber products, hemp grain, or hemp seed; 43
5959 (8) "Hemp seed", the viable seed of the plant of the 44
6060 genus Cannabis that is intended to be planted and is 45
6161 reasonably expected to grow into a hemp plant. "Hemp seed" 46
6262 does not include cannabis seed or hemp grain ; 47 SB 697 3
6363 (9) "Industrial hemp", the plant Cannabis sativa L. 48
6464 and any part of the plant, whether growing or not, including 49
6565 the plant's seeds, and all the plant's derivatives, 50
6666 extracts, cannabinoids, isomers, acids, salts, and salts of 51
6767 isomers, whether growing or not, with a delta -9 52
6868 tetrahydrocannabinol concentration of not more than three - 53
6969 tenths of one percent on a dry weight basis. Industrial 54
7070 hemp is not marijuana, as defined under article XIV of the 55
7171 Constitution of Missouri. 56
7272 312.1005. 1. The division shall issue the following 1
7373 types of hemp business licenses: 2
7474 (1) Hemp beverage manufacturer; 3
7575 (2) Hemp beverage wholesaler; and 4
7676 (3) Hemp beverage retailer. 5
7777 2. Notwithstanding any provisions of sections 312.1000 6
7878 to 312.1040 or chapter 311 to the contrary, there shall be 7
7979 no interpretations that prohibit liquor licensees from 8
8080 manufacturing, distributing, or selling hemp beverage 9
8181 products that comply with the provisions of sections 10
8282 312.1000 to 312.1040 and any other rules adopted by the 11
8383 division. 12
8484 3. A person, cooperative, or business may hold both a 13
8585 hemp beverage manufacturer and hemp beverage retailer 14
8686 license, but may only operate hemp beverage retail 15
8787 operations on site at the premises in which the he mp 16
8888 beverage product is manufactured. 17
8989 4. Except as otherwise provided in this section, no 18
9090 person, cooperative, or business holding any one of the 19
9191 three types of hemp beverage licenses shall hold either of 20
9292 the other two types of hemp beverage licen ses and shall not 21
9393 have a financial interest, either direct or indirect, in a 22 SB 697 4
9494 person, cooperative, or business holding any of the other 23
9595 two types of hemp beverage licenses. 24
9696 5. Except as otherwise provided in this section, no 25
9797 hemp beverage manufact urer shall sell or otherwise convey 26
9898 hemp beverage products to retailers. Hemp beverage 27
9999 manufacturers are authorized to solicit and sell hemp 28
100100 beverage products to hemp beverage wholesalers. Hemp 29
101101 beverage wholesalers are authorized to solicit and sell hemp 30
102102 beverage products to hemp beverage retailers. 31
103103 6. A person, cooperative, or business holding a hemp 32
104104 beverage manufacturer license, a hemp beverage wholesaler 33
105105 license, or a hemp beverage retailer license, or any 34
106106 combination of the three, shall not hold a marijuana 35
107107 facility license or a medical facility license, as such 36
108108 terms are defined in article XIV of the Constitution of 37
109109 Missouri. 38
110110 7. No license shall be issued to a hemp beverage 39
111111 retailer unless the hemp beverage retailer also has a n 40
112112 active license issued by the division allowing it to sell 41
113113 alcoholic beverages. This restriction shall not apply to 42
114114 hemp beverage manufacturers or hemp beverage wholesalers, 43
115115 unless they are seeking a hemp beverage retailer license. 44
116116 8. No hemp beverage wholesaler or hemp beverage 45
117117 retailer shall distribute or sell any hemp beverage products 46
118118 that the wholesaler or retailer knows or reasonably should 47
119119 know were manufactured outside of the United States. 48
120120 312.1010. 1. The division, by rule, shall establish 1
121121 forms and procedures for the processing of hemp licenses 2
122122 issued under sections 312.1000 to 312.1040. At a minimum, 3
123123 any application to obtain or renew a hemp business license 4
124124 shall include the following information, if appl icable: 5 SB 697 5
125125 (1) The name, address, and date of birth of the 6
126126 applicant; 7
127127 (2) The address and legal property description of the 8
128128 business; 9
129129 (3) Proof of business name registration; 10
130130 (4) Certification that the applicant shall comply with 11
131131 the requirements of sections 312.1000 to 312.1040 relating 12
132132 to the ownership and operation of a hemp business; 13
133133 (5) Identification of one or more controlling persons 14
134134 or managerial employees as agents who shall be responsible 15
135135 for dealing with the divis ion on all matters; and 16
136136 (6) A statement that the applicant agrees to respond 17
137137 to the division's supplemental requests for information. 18
138138 2. An application on behalf of a corporation, limited 19
139139 liability company, partnership, or association shall b e 20
140140 signed by at least two officers or managing agents of that 21
141141 entity. 22
142142 3. The division may issue a hemp business license to 23
143143 an applicant who: 24
144144 (1) Is, or is owned and managed by persons, at least 25
145145 twenty-one years of age who has or have not bee n convicted 26
146146 of a felony related to controlled substances within the 27
147147 previous ten years in any state or federal jurisdiction and 28
148148 who is or are current in filing all applicable tax returns 29
149149 to the department of revenue and in payment of all taxes, 30
150150 interest, and penalties assessed by the department of 31
151151 revenue; 32
152152 (2) Has completed an application for licensure or 33
153153 application for renewal and has fully and truthfully 34
154154 complied with all information requests relating to license 35
155155 application and renewal; 36 SB 697 6
156156 (3) Has paid the applicable application and license 37
157157 fees. For hemp beverage manufacturers, the license fee 38
158158 shall be one thousand dollars. For hemp beverage 39
159159 wholesalers, the license fee shall be five hundred dollars. 40
160160 For hemp beverage retailers, the license fee shall be two 41
161161 hundred fifty dollars per location, and shall not exceed 42
162162 five thousand dollars for an entity with multiple locations; 43
163163 (4) Is not employed by the division, department, or 44
164164 any other state agency with regulatory authority over 45
165165 sections 312.1000 to 312.1040; and 46
166166 (5) Does not hold any marijuana facility or medical 47
167167 facility license, as such terms are defined in article XIV 48
168168 of the Constitution of Missouri. 49
169169 4. Licenses shall be renewed annually. 50
170170 5. Licenses shall not be transferred. 51
171171 6. The division shall promulgate such regulations 52
172172 related to hemp business licensees for the administration of 53
173173 sections 312.1000 to 312.1040 and shall design all necessary 54
174174 forms. Any rule or portion of a rule, as that t erm is 55
175175 defined in section 536.010, that is created under the 56
176176 authority delegated in this section shall become effective 57
177177 only if it complies with and is subject to all of the 58
178178 provisions of chapter 536 and, if applicable, section 59
179179 536.028. This section and chapter 536 are nonseverable and 60
180180 if any of the powers vested with the general assembly 61
181181 pursuant to chapter 536 to review, to delay the effective 62
182182 date, or to disapprove and annul a rule are subsequently 63
183183 held unconstitutional, then the grant of rulem aking 64
184184 authority and any rule proposed or adopted after August 28, 65
185185 2025, shall be invalid and void. 66
186186 7. Whenever it shall be determined that a hemp 67
187187 business licensee has violated any of the provisions of 68 SB 697 7
188188 sections 312.1000 to 312.1040, the superviso r of the 69
189189 division may warn, place on probation on such terms and 70
190190 conditions as the supervisor deems appropriate for a period 71
191191 not to exceed twelve months, fine in an amount not to exceed 72
192192 five thousand dollars per violation, suspend for a period 73
193193 not to exceed twelve months, or revoke the license of the 74
194194 licensee. The licensee shall have thirty days' notice of 75
195195 the imposition of discipline and may seek a determination 76
196196 thereon by the administrative hearing commission pursuant to 77
197197 the provisions of sectio n 621.045. 78
198198 8. (1) There is hereby created in the state treasury 79
199199 the "Hemp-Derived Products Fund", which shall consist of all 80
200200 fees authorized to be charged by the division under this 81
201201 section. The state treasurer shall be custodian of the 82
202202 fund. In accordance with sections 30.170 and 30.180, the 83
203203 state treasurer may approve disbursements. The fund shall 84
204204 be a dedicated fund and money in the fund shall be used 85
205205 solely by the division for the purposes of administration of 86
206206 sections 312.1000 to 312. 1040. 87
207207 (2) Notwithstanding the provisions of section 33.080 88
208208 to the contrary, any moneys remaining in the fund at the end 89
209209 of the biennium shall not revert to the credit of the 90
210210 general revenue fund. 91
211211 (3) The state treasurer shall invest moneys i n the 92
212212 fund in the same manner as other funds are invested. Any 93
213213 interest and moneys earned on such investments shall be 94
214214 credited to the fund. 95
215215 312.1015. 1. A hemp beverage manufacturer license 1
216216 entitles the license holder to: 2
217217 (1) Purchase hemp plant parts, hemp concentrate, and 3
218218 artificially derived cannabinoids from cannabis 4 SB 697 8
219219 manufacturers, cannabis wholesalers, and hemp beverage 5
220220 manufacturers; 6
221221 (2) Purchase hemp plant parts and propagules from 7
222222 industrial hemp growers; 8
223223 (3) Purchase hemp concentrate from industrial hemp 9
224224 processors; 10
225225 (4) Make hemp concentrate; 11
226226 (5) Manufacture artificially derived cannabinoids; 12
227227 (6) Manufacture hemp beverages for public consumption; 13
228228 (7) Package and label hemp bev erages for sale to 14
229229 customers; 15
230230 (8) Sell hemp concentrate to cannabis businesses and 16
231231 other hemp businesses; 17
232232 (9) Sell hemp beverage products to hemp beverage 18
233233 wholesalers; and 19
234234 (10) Perform any other actions approved by the 20
235235 department and division. 21
236236 2. All hemp beverage manufacturing shall take place in 22
237237 a facility and on equipment that meets the applicable health 23
238238 and safety requirements established by the department, 24
239239 including requirements for cleaning and testing machinery 25
240240 between production of different products. 26
241241 3. A hemp beverage manufacturer shall comply with all 27
242242 applicable packaging, labeling, and testing requirements 28
243243 established by the department. Labels and packaging for the 29
244244 hemp beverage products shall not consist of images or 30
245245 designs that suggest that the products are intended for 31
246246 consumption by children. 32
247247 4. All hemp beverage products shall be registered by 33
248248 the manufacturer with the department prior to sale. 34 SB 697 9
249249 5. A hemp beverage manufacturer that crea tes hemp 35
250250 concentrate or artificially derived cannabinoids shall 36
251251 obtain an endorsement from the department. 37
252252 6. A hemp beverage manufacturer seeking an endorsement 38
253253 to create hemp concentrate shall inform the department of 39
254254 all methods of extraction and concentration that the 40
255255 manufacturer intends to use and identify the volatile 41
256256 chemicals, if any, that will be involved in the creation of 42
257257 hemp concentrate. A hemp beverage manufacturer shall not 43
258258 use a method of extraction and concentration or a vol atile 44
259259 chemical without approval by the department. 45
260260 7. A hemp beverage manufacturer seeking an endorsement 46
261261 to create artificially derived cannabinoids shall inform the 47
262262 department of all methods of conversion that the 48
263263 manufacturer will use, includi ng any specific catalysts that 49
264264 the manufacturer will employ, to create artificially derived 50
265265 cannabinoids and the molecular nomenclature of all 51
266266 cannabinoids or other chemical compounds that the 52
267267 manufacturer will create. A business licensed or authorize d 53
268268 to manufacture hemp beverages shall not use a method of 54
269269 conversion or a catalyst without approval by the department. 55
270270 8. A hemp beverage manufacturer shall obtain a 56
271271 certification from an independent third -party industrial 57
272272 hygienist or profession al engineer approving: 58
273273 (1) All electrical, gas, fire suppression, and exhaust 59
274274 systems; and 60
275275 (2) The plan for safe storage and disposal of 61
276276 hazardous substances, including, but not limited to, any 62
277277 volatile chemicals. 63
278278 9. Upon the sale of hemp concentrate or artificially 64
279279 derived cannabinoids to any person, cooperative, or 65
280280 business, a hemp beverage manufacturer shall provide a 66 SB 697 10
281281 statement to the buyer that discloses the method of 67
282282 extraction and concentration or conversion used and any 68
283283 solvents, gases, or catalysts, including, but not limited 69
284284 to, any volatile chemicals involved in that method. 70
285285 10. All areas within the premises of a hemp beverage 71
286286 manufacturer used for producing hemp beverages shall meet 72
287287 the sanitary standards specifi ed in rules adopted by the 73
288288 department. 74
289289 11. A hemp beverage manufacturer may only add 75
290290 chemicals or compounds approved by the department to hemp 76
291291 concentrate or artificially derived cannabinoids. 77
292292 12. Upon the sale of any hemp beverage, a hemp 78
293293 beverage manufacturer shall provide a statement to the buyer 79
294294 that discloses the product's ingredients, including, but not 80
295295 limited to, any chemicals or compounds and any major food 81
296296 allergens declared by name. 82
297297 13. A hemp beverage manufacturer shall not add any 83
298298 artificially derived cannabinoid, hemp plant part, or hemp 84
299299 concentrate to a product if the manufacturer of the product 85
300300 holds a trademark to the product's name, except that a hemp 86
301301 beverage manufacturer may use a trademarked food product if 87
302302 the manufacturer uses the product as a component or as part 88
303303 of a recipe and if the hemp beverage manufacturer does not 89
304304 state or advertise to the customer that the final retail 90
305305 hemp beverage product contains a trademarked food product. 91
306306 14. A hemp beverage manufacturer shall not add any 92
307307 cannabis flower, cannabis concentrate, or cannabinoid 93
308308 derived from cannabis flower or cannabis concentrate to a 94
309309 product. 95
310310 15. The hemp beverage manufacturer shall have a hemp 96
311311 beverage product tested prior to distribution to confirm 97
312312 compliance with all statutory and regulatory requirements. 98 SB 697 11
313313 The testing shall be performed by a laboratory holding an 99
314314 ISO 17025 accreditation or that is registered with the Drug 100
315315 Enforcement Administration in accordance with 21 C FR 101
316316 1301.13, and which does not have a direct or indirect 102
317317 interest in the entity whose product is being tested. 103
318318 16. No hemp beverage manufacturer who designates a 104
319319 specific geographic area for which a hemp beverage 105
320320 wholesaler shall be responsible, shall enter into any 106
321321 agreement with any other person for the purpose of 107
322322 establishing an additional wholesaler for the same brands of 108
323323 hemp beverage products in such designated area. 109
324324 17. Any hemp beverage manufacturer or wholesaler who 110
325325 violates the provisions of this section, or permit its 111
326326 employees, officers, or agents to do so, shall be guilty of 112
327327 a misdemeanor, and upon conviction thereof shall be punished 113
328328 only as follows: 114
329329 (1) For the first offense, by a fine of one thousand 115
330330 dollars; 116
331331 (2) For the second offense, by a fine of five thousand 117
332332 dollars; and 118
333333 (3) For the third or any subsequent offense, by a fine 119
334334 of twenty-five thousand dollars. 120
335335 312.1020. 1. A hemp beverage wholesaler may transport 1
336336 hemp beverages on public roadways provided: 2
337337 (1) The hemp beverages are in a safe and secured 3
338338 storage compartment that is part of the motor vehicle or in 4
339339 a locked storage container that has a separate key or 5
340340 combination pad; 6
341341 (2) The hemp beverages are pac kaged in tamper-evident 7
342342 containers that are not visible or recognizable from outside 8
343343 the transporting vehicle; 9 SB 697 12
344344 (3) The hemp beverage wholesaler has a shipping 10
345345 manifest in the hemp beverage wholesaler's possession that 11
346346 describes the contents of al l tamper-evident containers; 12
347347 (4) All departures, arrivals, and stops are 13
348348 appropriately documented; and 14
349349 (5) No person other than a designated employee enters 15
350350 a vehicle at any time that the vehicle is transporting hemp 16
351351 beverages. 17
352352 2. A hemp beverage wholesaler may sell to retailers 18
353353 hemp beverage products that: 19
354354 (1) Are obtained from a licensed Missouri hemp 20
355355 beverage manufacturer; 21
356356 (2) Meet all applicable packaging and labeling 22
357357 requirements established by the department; and 23
358358 (3) Comply with any other rules adopted by the 24
359359 department. 25
360360 3. Any vehicle assigned for the purposes of hemp 26
361361 beverages is subject to inspection by the division at any 27
362362 time. 28
363363 4. Any hemp beverage products stored by a hemp 29
364364 beverage wholesaler shall be stored in a secure climate - 30
365365 controlled location that is locked and inaccessible to the 31
366366 general public. 32
367367 5. All hemp beverage wholesalers shall be resident 33
368368 businesses. A "resident business" shall be a business 34
369369 created under the laws of Missouri, in which at least sixty 35
370370 percent of all of the financial interest in the business is 36
371371 owned by bona fide Missouri residents who have continuously 37
372372 resided in Missouri for a period of at least three years 38
373373 immediately prior to the date of filing o f the application 39
374374 for a license, and in which at least sixty percent of all 40
375375 directors, officers, or managers of the business are bona 41 SB 697 13
376376 fide Missouri residents who have continuously resided in 42
377377 Missouri for a period of at least three years immediately 43
378378 prior to the date of filing of the application for a license. 44
379379 312.1025. 1. A hemp beverage retailer shall only sell 1
380380 hemp beverages to individuals who are at least twenty -one 2
381381 years of age. No person under twenty -one years of age shall 3
382382 sell or assist in the sale or dispensing of the hemp 4
383383 beverages. 5
384384 2. A hemp beverage retailer shall not sell any product 6
385385 the retailer knows, or has reason to know, contains more 7
386386 than three-tenths of one percent of tetrahydrocannabinol 8
387387 content. 9
388388 3. A hemp beverage retailer may sell hemp beverage 10
389389 products that: 11
390390 (1) Are obtained from a licensed Missouri hemp 12
391391 beverage wholesaler or is manufactured by the hemp beverage 13
392392 retailer as a licensed hemp beverage manufacturer on the 14
393393 premises it is sold; and 15
394394 (2) Meet all applicable packaging and labeling 16
395395 requirements established by the department. 17
396396 4. A hemp beverage retailer shall not ship or deliver 18
397397 hemp beverages to consumers, and all sales of hemp beverage 19
398398 products shall be made o n the licensed premise of the hemp 20
399399 beverage retailer. 21
400400 5. A hemp beverage retailer may sell other products or 22
401401 items for which the hemp beverage retailer has a license or 23
402402 authorization or that do not require a license or 24
403403 authorization. 25
404404 6. It shall constitute a class B misdemeanor for a 26
405405 hemp beverage retailer or any other person to sell or 27
406406 provide hemp beverage products to a person under twenty -one 28
407407 years of age. It shall constitute a class B misdemeanor for 29 SB 697 14
408408 a person under twenty -one years of age to knowingly acquire, 30
409409 possess, or consume a hemp beverage product. 31
410410 Notwithstanding the other provisions of this section to the 32
411411 contrary, law enforcement efforts utilizing a person under 33
412412 twenty-one years of age but at least eighteen years of age , 34
413413 wherein the person does not consume the hemp beverage 35
414414 product, are not precluded. The division may enforce 36
415415 compliance with this section by conducting random, 37
416416 unannounced inspections at locations where such products are 38
417417 sold or distributed to ensure compliance with sections 39
418418 312.1000 to 312.1040. The division shall submit an annual 40
419419 publicly accessible report to the general assembly 41
420420 describing in detail the division's enforcement efforts. 42
421421 7. A hemp beverage retailer shall ensure that all hemp 43
422422 beverages offered for sale comply with the limits on the 44
423423 amount and types of cannabinoids that a hemp beverage 45
424424 product can contain, including, but not limited to, the 46
425425 requirement that hemp beverages: 47
426426 (1) Consist of servings that contain no more than five 48
427427 milligrams of delta-9 tetrahydrocannabinol, no more than 49
428428 twenty-five milligrams of cannabidiol, no more than twenty - 50
429429 five milligrams of cannabigerol, or any combination of those 51
430430 cannabinoids that does not exceed the identified amounts; 52
431431 (2) Do not contain more than a combined total of five - 53
432432 tenths of a milligram of all other cannabinoids per serving; 54
433433 and 55
434434 (3) Do not contain an artificially derived cannabinoid 56
435435 other than delta-9 tetrahydrocannabinol. 57
436436 8. If a hemp beverage is pa ckaged in a manner that 58
437437 includes more than a single serving, the hemp beverage label 59
438438 shall indicate each serving by scoring, wrapping, or other 60
439439 indicators that appear on the hemp beverage label 61 SB 697 15
440440 designating the individual serving size. If it is not 62
441441 possible to indicate a single serving by an indicator that 63
442442 appears on the product, the hemp beverage shall not be 64
443443 packaged in a manner that includes more than a single 65
444444 serving in each container. The hemp beverage container 66
445445 shall not contain more than tw o servings per container. No 67
446446 hemp beverage container may contain more than five 68
447447 milligrams of delta-9 tetrahydrocannabinol total. 69
448448 9. A hemp beverage retailer shall not: 70
449449 (1) Sell a hemp beverage to a person who is visibly 71
450450 intoxicated; 72
451451 (2) Sell cannabis flower or cannabis products; or 73
452452 (3) Allow for the dispensing of hemp beverage products 74
453453 in vending machines. 75
454454 10. A hemp beverage retailer may permit onsite 76
455455 consumption of hemp beverage products on a portion of its 77
456456 premises if the hemp beverage retailer sells other nonhemp 78
457457 beverage products that are consumed by consumers onsite at 79
458458 the retail premises and earns at least seventy -five percent 80
459459 of its revenue from the sale of nonhemp beverage products 81
460460 that are consumed by consu mers onsite. 82
461461 11. A hemp beverage retailer shall ensure that hemp 83
462462 beverage products sold for onsite consumption comply with 84
463463 sections 312.1000 to 312.1040 and rules adopted pursuant to 85
464464 sections 312.1000 to 312.1040 regarding testing. 86
465465 12. Hemp beverage products may be served outside of 87
466466 their packaging provided that the information that is 88
467467 required to be contained on the label of a hemp beverage is 89
468468 posted or otherwise prominently displayed by the hemp 90
469469 beverage retailer. 91
470470 13. Food and beverages not otherwise prohibited by 92
471471 this section may be prepared and sold onsite provided that 93 SB 697 16
472472 the hemp beverage retailer complies with all relevant state 94
473473 and local laws, ordinances, licensing requirements, and 95
474474 zoning requirements. 96
475475 14. A hemp beverage retailer with an onsite 97
476476 consumption endorsement shall not: 98
477477 (1) Sell hemp beverage products to a customer who the 99
478478 hemp beverage retailer knows or reasonably should know is 100
479479 intoxicated, either from consumption of alcohol, other hemp 101
480480 beverages, or any other drug; 102
481481 (2) Sell hemp beverage products that are designed or 103
482482 reasonably expected to be mixed with an alcoholic beverage; 104
483483 or 105
484484 (3) Permit hemp beverage products that have been 106
485485 removed from the products' packaging to be removed from the 107
486486 premises of the hemp beverage retailer. 108
487487 15. A hemp beverage retailer shall maintain compliance 109
488488 with state and local building, fire, and zoning codes, 110
489489 requirements, or regulations. 111
490490 16. A hemp beverage retailer shall ensure that the 112
491491 licensed premises is maintained in a clean and sanitary 113
492492 condition, free from infestation by insects, rodents, or 114
493493 other pests. 115
494494 17. No hemp beverage manufacturer or wholesaler may 116
495495 pay to a hemp beverage retailer, nor shall any hemp beverage 117
496496 retailer accept, any payment, credit, or any other 118
497497 consideration to induce the hemp beverage retailer to 119
498498 advertise or display a hemp beverage product in a certain 120
499499 manner on the hemp beverage product's licensed premises. 121
500500 Further, no hemp beverage manufacturer or w holesaler may pay 122
501501 to a hemp beverage retailer any fee rental or other 123
502502 consideration for the use of any part of the licensed retail 124 SB 697 17
503503 premises for advertising any brand name for the purpose of 125
504504 advertising the same. 126
505505 18. A hemp beverage retailer is su bject to inspection 127
506506 by the division at any time. 128
507507 19. The division shall not issue a hemp beverage 129
508508 license to any retail establishment located within three 130
509509 hundred feet of any educational institution providing 131
510510 education to children at any level be tween preschool and 132
511511 twelfth grade, or the equivalent, nor to any retail 133
512512 establishment located within three hundred feet of any 134
513513 church or place of worship. 135
514514 312.1030. 1. As used in this section, "franchise" 1
515515 means a written or oral ar rangement for a definite or 2
516516 indefinite period in which a person grants to another person 3
517517 a license to use a trade name, trademark, service mark, or 4
518518 related characteristic, and in which there is a community of 5
519519 interest in the marketing of goods or servi ces at wholesale, 6
520520 retail, by lease, agreement, or otherwise, including, but 7
521521 not limited to, a commercial relationship of definite 8
522522 duration or continuing indefinite duration, between a hemp 9
523523 beverage wholesaler, to hemp beverage retailers, duly 10
524524 licensed in this state, and a hemp beverage manufacturer, 11
525525 and wherein a hemp beverage wholesaler is granted the right 12
526526 to offer, sell, and distribute within this state or any 13
527527 designated area thereof some or all of the hemp beverage 14
528528 manufacturer's hemp beverage products to hemp beverage 15
529529 retailers. 16
530530 2. If more than one franchise for the same brand or 17
531531 brands of hemp beverage products is granted to different 18
532532 hemp beverage wholesalers in Missouri, it is a violation for 19
533533 any hemp beverage manufacturers to disc riminate between the 20 SB 697 18
534534 wholesalers with respect to any of the terms, provisions, 21
535535 and conditions of these franchises. 22
536536 3. Notwithstanding the terms, provisions, and 23
537537 conditions of any franchise, no hemp beverage manufacturer 24
538538 shall unilaterally termina te or refuse to continue or change 25
539539 substantially the condition of any franchise with the hemp 26
540540 beverage wholesaler unless the manufacturer has first 27
541541 established good cause for such termination, noncontinuance, 28
542542 or change. 29
543543 4. Any hemp beverage whole saler may bring an action in 30
544544 a court of competent jurisdiction against a hemp beverage 31
545545 manufacturer for violation of any of the provisions of this 32
546546 section and may recover damages sustained by such wholesaler 33
547547 together with the costs of the action and re asonable 34
548548 attorney's fees. 35
549549 5. In any action brought by a hemp beverage wholesaler 36
550550 against a hemp beverage manufacturer for termination, 37
551551 noncontinuance, or substantial change in violation of the 38
552552 provisions of this section, it is a complete defense for the 39
553553 hemp beverage manufacturer to prove that the termination, 40
554554 noncontinuance, or change was done in good faith and for 41
555555 good cause. 42
556556 6. As used in this section, "good faith" is the duty 43
557557 of each party to any franchise and all officers, employees , 44
558558 or agents thereof to act in a fair and equitable manner 45
559559 towards each other, and "good cause" means the following: 46
560560 (1) Failure by the hemp beverage wholesaler to comply 47
561561 substantially with the provisions of an agreement or 48
562562 understanding with the hemp beverage manufacturer, which 49
563563 provisions are both essential and reasonable; 50
564564 (2) Use of bad faith or failure to observe reasonable 51
565565 commercial standards of fair dealing in the trade; or 52 SB 697 19
566566 (3) Revocation or suspension for more than thirty days 53
567567 of the hemp beverage wholesaler's state or local license 54
568568 required for normal operations of its business. 55
569569 312.1035. 1. A hemp beverage product that is sold in 1
570570 this state shall be labeled with consumer protection 2
571571 warnings in the form of statements that cover all of the 3
572572 following: 4
573573 (1) A list of ingredients and possible allergens and a 5
574574 nutritional fact panel or have a code that can be scanned 6
575575 that directs consumers to a website containing the list of 7
576576 ingredients and possible allergens and a nutritional fact 8
577577 panel; 9
578578 (2) A statement that use while pregnant or 10
579579 breastfeeding may be harmful; 11
580580 (3) A statement that consumption of certain 12
581581 cannabinoids may impair your ability to drive and operate 13
582582 heavy machinery; 14
583583 (4) A statement that the product is not approved by 15
584584 the U.S. Food and Drug Administration; 16
585585 (5) A statement to keep out of reach of children; 17
586586 (6) A statement to consult your physician before use; 18
587587 (7) The amount of hemp-derived cannabinoid i n each 19
588588 serving of the product, measured in milligrams; 20
589589 (8) The total amount of hemp -derived cannabinoid in 21
590590 the entire package, measured in milligrams; 22
591591 (9) The net weight of the product; and 23
592592 (10) An expiration date in accordance with app licable 24
593593 federal or state law. 25
594594 2. A manufacturer, wholesaler, or retailer of a hemp 26
595595 beverage product shall not advertise, market, or offer for 27
596596 sale the product by using, in the labeling or design of the 28
597597 product or product packaging or in advertisi ng or marketing 29 SB 697 20
598598 materials for the product trade dress, trademarks, branding, 30
599599 or other related materials, any imagery or scenery that 31
600600 depicts or signifies characters or symbols known to appeal 32
601601 primarily to persons under twenty -one years of age, 33
602602 including, but not limited to, superheroes, comic book 34
603603 characters, video game characters, television show 35
604604 characters, movie characters, and mythical creatures. 36
605605 312.1040. 1. An excise tax at the rate of seven 1
606606 percent is imposed on the retai l sale of a hemp beverage 2
607607 product. The tax is in addition to any tax imposed under 3
608608 any other provision of federal, state, or local law. 4
609609 2. The tax imposed by this section is intended to be 5
610610 passed on to and borne by the purchaser of the hemp -derived 6
611611 consumable product. The tax is a debt from the purchaser to 7
612612 the retailer until paid. A retailer is considered to act as 8
613613 a trustee on behalf of the state when it collects tax from 9
614614 the purchaser on a taxable transaction. The tax shall be 10
615615 stated and charged separately on any documentation provided 11
616616 to the purchaser by the retailer at the time of the 12
617617 transaction. 13
618618