An Act ENROLLED SENATE BILL NO. 460 By: Paxton and Bergstrom of the Senate and Fetgatter of the House 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 Agri culture Farm Service Agency; authorizing remediation of industrial hemp under certain conditions; deleting language; providing for codification; providing an effective date; and declaring an emergency. SUBJECT: Authorizing remediation of hemp under certain cond itions BE IT ENACTED BY THE PEOPLE OF THE STATE O F 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 enga ge 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 in dustrial hemp. ENR. S. B. NO. 460 Page 2 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 a gencies, 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. B. The Department shall collect a nonrefundable fee from the applicant at the time of ap plication. 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. ENR. S. B. NO. 460 Page 3 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 s ection. 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, 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. 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 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 o f law to be codified in the Oklahoma Statutes as Section 3-406.1 of Title 2, unless there is created a duplication in numb ering, reads as follows: An industrial hemp processor licensee may remediate any industrial hemp legally grown pursuant to the Oklahoma Department of ENR. S. B. NO. 460 Page 4 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 plant meets the definition of industrial hemp. The Departme nt 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 an d sampling. B. The Department may inspect and take sam ples from any licensee’s plants during normal business hours. C. Licenses for handli ng 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 th e time of inspection and sampling. The licensee or authorized repr esentative 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, bui ldings 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 identified during an inspection that is not part of the regular annual inspection process. F. The Department shall promulgate rules to establish a process by which a licensee may co ntest the procedures, protocols a nd results or findings of the inspection. ENR. S. B. NO. 460 Page 5 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 her eby declared to exist, b y reason whereof this act shall take effect and be in full force from and after its passage and approval. ENR. S. B. NO. 460 Page 6 Passed the Senate the 8th day of March, 2021. Presiding Officer of the Senate Passed the House of Representatives the 21st day of April, 2021. Presiding Officer of the House of Representatives OFFICE OF THE GOVERNOR Received by the Office of the Governor this _______ _____________ day of _________________ __, 20_______, at _______ o'clock _______ M. By: _________________________________ Approved by the Governor of the State of Oklahoma this _____ ____ day of _________________ __, 20_______, at _______ o'clock _______ M. _________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF S TATE Received by the Office of the Secretary of State this _______ ___ day of __________________, 20 _______, at _______ o'clock _______ M. By: _______________________________ __