SENATE FLOOR VERSION - SB460 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 22, 2021 SENATE BILL NO. 460 By: Paxton An Act relating to industrial hemp; amending 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, Sections 3-404 and 3- 407), which relate to licenses and inspection of industrial hemp growth; modifying language; including United States Department of Agriculture Farm Servic e Agency; authorizing remediation of industrial hemp under certain conditions; deleting language; providing for codification; providing an effective 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 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, SENATE FLOOR VERSION - SB460 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 a llow 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. B. The Department shall collect a nonr efundable 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 SENATE FLOOR VERSION - SB460 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ma y waive the fee for resubmitted applications. C. A license issued pursuant to this sec tion 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 sepa rate 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, before altering the area, the licensee shall submit to the Department and the United States Department of Agriculture Farm Service Agency an updated legal descri ption, global positioning system location, and map specifying the proposed alterations. SENATE FLOOR VERSION - SB460 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 p romulgate rules necessa ry 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 co dified 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 pursuant to the Oklahoma Department of Agriculture, Food, and Forestry and the United States Department of Agriculture programs so long as all THC is removed and it is processed as Cannabidiol (CBD). 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 verify that the SENATE FLOOR VERSION - SB460 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 plant meets the defini tion 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 of 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 inspections. D. The Department shall make a good-faith attempt to have the licensee present at the time of inspection and sam pling. The licensee or authorized representative shall provide the Department ’s inspector with complete and unrestricted access to all plants, parts and seeds, whether grow ing 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. 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 costs. The Department shall waive all inspection or sampling costs if no inconsistencies or violations are identifie d during an inspection that is not part of the regular annual inspection process. SENATE FLOOR VERSION - SB460 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 F. The Department shall promulgate rules to establish a process by which a licensee may co ntest 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 preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof thi s act shall take effect and be in full force from and after its passage and approval. COMMITTEE REPORT BY: COMMITTEE ON AGRICULTURE AND WILDLIFE February 22, 2021 - DO PASS