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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
ENGROSSED SENATE
BILL NO. 460 By: Paxton and Bergstrom of the
Senate
and
Fetgatter of the House
An Act relating to industrial hemp; amendin g Section
4, Chapter 64, O.S.L. 2018, as amended by Section 5,
Chapter 91, O.S.L. 2019 and Section 7, Chapter 64,
O.S.L. 2018, as amended by Section 7, Chapter 91,
O.S.L. 2019 (2 O.S. Supp. 2020, Section s 3-404 and 3-
407), which relate to licenses and insp ection of
industrial hemp growth; modifying language; including
United States Department of Agriculture Farm Service
Agency; authorizing remediation of industrial hemp
under certain conditions; deleting language;
providing for codification; providing an ef fective
date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 4, Chapter 64, O.S.L.
2018, as amended by Section 5, Chapter 91, O.S.L. 2019 (2 O.S. Supp.
2020, Section 3-404), is amended to read as follows:
Section 3-404. A. A person intending to engage in industrial
hemp growth, cultivation, handling or processing authorized under
the Oklahoma Industrial Hemp Program shall apply to the Oklahoma
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Department of Agricu lture, Food, and Forestry for a license prior to
planting, handling or processing the industrial hemp.
1. The application shall include:
a. the name and address of the applicant,
b. the legal description, global positioning system
location, and map of the land area on which the
applicant will engage in industrial hemp growth and
cultivation operations, handling operations or
processing operations, and
c. a statement of intended end use.
2. By submitting an application, the applicant acknowledges and
agrees that:
a. information provided to the Department may be provided
to law enforcement agencies,
b. the applicant shall allow and fully cooperate with any
inspection and sampling that the Department deems
necessary,
c. the applicant will submit all required reports by the
applicable due dates specified by the Department, and
d. the applicant has the legal right to cultivate, handle
or process industrial hemp on the registered land area
and shall grant the Department access for inspection
and sampling.
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B. The Department shall collect a nonrefundable fee from the
applicant at the time of application. The Department shall set a
fee schedule based on the size and use of the land area on which the
licensee will conduct industrial hemp growing or cultivation
operations and shall set the fee at a level sufficient to generate
the amount of monies necessary to cover the Department ’s direct
costs in implementing the Oklahoma Industrial Hemp Program. Denied
applications for a license may be resubmitted within a twelve -month
period. The Department may waive the fee for resubmitted
applications.
C. A license issued pursuant to this section is valid for one
(1) year. In order to continue engaging in industrial hemp growth
and cultivation operations in Oklahoma, the lice nsee shall annually
apply for a license in accordance with subsection A of this section.
The Department may set a separate fee schedule for renewal of
existing licenses in good standing.
D. All industrial hemp plant material shall be planted, grown
and harvested under a valid license. Any plant material that is not
harvested in the license period in which it was planted or volunteer
plants that are not destroyed must be declared for inclusion in a
subsequent license.
E. If the licensee wishes to alter t he land area on which the
licensee will conduct industrial hemp growth, cultivation, handling
or processing operations within thirty (30) days of any new license,
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before altering the area, the licensee shall submit to the
Department and the United States D epartment of Agriculture Farm
Service Agency an updated legal description, global positioning
system location, and map specifying the proposed alterations.
F. Each licensee shall report any changes to information
provided in the license application within ten (10) days of such
change to the Department and the United States Department of
Agriculture Farm Service Agency .
G. A licensee shall maintain all records pertaining to the
license and growing records for a minimum of three (3) years.
H. The Department shall promulgate rules necessary to implement
the licensing program and to implement the Oklahoma Industrial Hemp
Program.
I. The Department shall promulgate rules to facilitate
transportation of industrial hemp.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3 -406.1 of Title 2, unless there
is created a duplication in numbering, reads as follows:
An industrial hemp processor licensee may remediate any
industrial hemp legally grown pursu ant to the Oklahoma Department of
Agriculture, Food, and Forestry and the United State s Department of
Agriculture programs so long as all THC is removed and it is
processed as Cannabidiol (CBD).
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SECTION 3. AMENDATORY Section 7, Chapter 64, O.S.L.
2018, as amended by Section 7, Chapter 91, O.S.L. 2019 (2 O.S. Supp.
2020, Section 3-407), is amended to read as follows:
Section 3-407. A. Any plants of the licensee are subject to at
least annual routine inspections and sampling to verif y that the
plant meets the definition of industrial hemp. The Department shall
notify each licensee of the scope of the inspection and the process
by which the inspection will be conducted. The Department shall
promulgate rules regarding the procedures o f inspection and
sampling.
B. The Department may inspect and take samples from any
licensee’s plants during normal business hours.
C. Licenses for handling or processing shall be subject to at
least annual inspections in addition to compliance inspection s.
D. The Department shall make a good-faith attempt to have the
licensee present at the time of inspection and sampling. The
licensee or authorized representative shall provide the Department ’s
inspector with complete and unrestricted access to all plan ts, parts
and seeds, whether growing or harvested, and all land, buildings and
other structures used for the growth, cultivation, harvesting,
storage, handling or processing of industrial hemp, and all
documents and records pertaining to the licensee ’s industrial hemp-
growing, cultivation operation, handling and processing.
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E. The licensee shall pay for any inspection and laboratory
analysis costs that the Department deems necessary within thirty
(30) days of the date of the receipt of an invoice for the c osts.
The Department shall waive all inspection or sampling costs if no
inconsistencies or violations are identified during an inspection
that is not part of the regular annual inspection process.
F. The Department shall promulgate rules to establish a p rocess
by which a licensee may contest the procedures, protocols and
results or findings of the inspection.
SECTION 4. This act shall become effective July 1, 2021.
SECTION 5. It being immediately necessary for the preserv ation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON AGRICULTURE AND RURAL DEVEL OPMENT,
dated 03/31/2021 - DO PASS.