Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB635 Compare Versions

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28-ENGROSSED SENATE
29-BILL NO. 635 By: Paxton of the Senate
29+SENATE FLOOR VERSION
30+February 20, 2023
3031
31- and
3232
33- Dobrinski of the House
33+SENATE BILL NO. 635 By: Paxton
34+
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3839 An Act relating to Oklahoma Industrial Hemp Program;
3940 amending 2 O.S. 2021, Section 3 -402, as amended by
4041 Section 1, Chapter 265, O.S.L. 2022 (2 O.S. Supp.
4142 2022, Section 3-402), which relates to definition s;
4243 defining term; requiring registration of hem p-derived
43-cannabinoid product with th e State Board of
44-Agriculture; establishing conditions for registration
45-by applicant to the Board; providing for promulgatio n
46-of rules by Board for registration; establishing
47-requirements for labeling and packaging necessary to
48-sell hemp-derived cannabinoid products in the state;
49-allowing for hemp-derived cannabinoids to be added to
50-products under certain conditions; prohibiting
51-distribution of products if misbranded or
52-adulterated; allowing the Board to issue and enforce
53-stop sale, stop use, or r emoval or products under
54-certain conditions; providing for codification; and
55-providing an effective date .
44+ingestible cannabinoid product with th e State Board
45+of Agriculture; establishing conditions for
46+registration by applicant to the Board; providing for
47+promulgation of rules by Board for registration;
48+establishing requirements for labeling and packaging
49+necessary to sell hemp-derived ingestible cannabinoid
50+products in the state; allowing for hemp-derived
51+cannabinoids to be added to products un der certain
52+conditions; prohibiting distribution of products if
53+misbranded or adulterated; allowing the Board to
54+issue and enforce stop sale, stop use, or r emoval or
55+products under certain conditions; providing for
56+codification; and providing an effective date .
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6061 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6162 SECTION 1. AMENDATORY 2 O.S. 2021, Section 3 -402, as
6263 amended by Section 1, Chapter 265, O .S.L. 2022 (2 O.S. Supp. 2022,
6364 Section 3-402), is amended to read as follows:
6465 Section 3-402. As used in the Oklahoma Industrial Hemp Program:
6566 1. “Department” means the Oklahoma Department of Agriculture,
6667 Food, and Forestry;
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9395 2. “Fiber” means the stalk of the industrial hemp plant and
9496 does not include the flower or seeds of the plant;
9597 3. “Flower” means the part of the industrial hemp plant that
9698 contains the majority of the industrial hemp plant’s
9799 tetrahydrocannabinol and other cann abinoids;
98100 4. “Grain” means all of the parts of an industrial hem p plant
99101 except the stalk or the flower of the industrial hemp plant;
100102 5. “Handling” means possessing or storing industrial hemp for
101103 any period of time on premises owned, operated or controlled by a
102104 person licensed to cultivate o r process industrial hemp an d also
103105 includes possessing or storing industrial hemp in a vehicle for any
104106 period of time other than during its actual transport from the
105107 premises of a licensed person to cultivate or process industrial
106108 hemp to the premises of a nother licensed person;
107-6. “Hemp-derived cannabinoid product” means a product that
108-contains cannabinoids that are extracted from hemp or resin from
109-hemp by physical or chemical means and is intended for
109+6. “Hemp-derived ingestible cannabinoid product” means a
110+product that contains cannabinoids that are extracted from hemp or
111+resin from hemp by physical or chemical means and is intended for
110112 administration to a consumer including, but not limited to,
111113 concentrates, oils, tinctures, edibles, pills, topicals, gels,
112114 creams, and other derivative forms. The term shall also mean
113115 products available for animal or human consumption, which may be in
114116 the form of inhalation into the respiratory system and ingestion in
115117 the gastrointestinal system, or tissue absorption. The term shall
116118 not include seeds or seed-derived ingredients that are generally
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143146 recognized as safe by the United State s Food and Drug
144147 Administration;
145148 7. “Industrial hemp” means the plant Cannabis sativa L. and any
146149 part of the plant, including the seeds thereof, and all derivatives,
147150 extracts, cannabinoids, isomers, acids, salts and salts of isomers,
148151 whether growing or not, with a delta -9 tetrahydrocannabinol
149152 concentration of not mor e than three-tenths of one percent (0.3%) on
150153 a dry-weight basis;
151154 7. 8. “Licensee” means a person who holds a valid Industrial
152155 Hemp License to grow industrial hemp under the Oklahoma Industrial
153156 Hemp Program. A licensee shall have the ability to remediate
154157 noncompliant industrial hemp with a delta-9 tetrahydrocannabinol
155158 concentration of not more than one percent (1.0%) on a dry-weight
156159 basis for retesting as set forth by the Department as long as the
157160 noncompliant industrial hemp has a delta-9 tetrahydrocannabinol
158161 concentration of not more than three-tenths of one percent (0.3%) on
159162 a dry-weight basis after retesting, and the option to remediate the
160163 industrial hemp through the reasonable destruction of the flower or
161164 shredding of the entire lot into a homogeneous biomass results in
162165 the remediation of any part of the industrial hemp plant that is
163166 above three-tenths of one percent (0.3%) on a dry-weight basis. All
164167 noncompliant hemp must be tracked and documented . The State Board
165168 of Agriculture shall have jurisdiction over such remediation, which
166169 includes, but is not limited to, destruction through composting,
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193197 burning, or other regulated disposal methods if the industrial hemp
194198 is not remediated into a final product bef ore processing below
195199 three-tenths of one percent (0.3%) on a dry-weight basis;
196200 8. 9. “License” means authorization by the Department for any
197201 person to grow and cultivate industrial hemp on a registered land
198202 area as part of the Oklahoma Industrial Hemp Pro gram; and
199203 9. 10. “Processing” means converting industrial hemp into a
200204 marketable form, including the production of all derivatives,
201205 extracts, cannabinoids, isomers, acids, salts and salts of isomers.
202206 SECTION 2. NEW LAW A new section of law to be codified
203207 in the Oklahoma Statutes as Section 3-412 of Title 2, unless there
204208 is created a duplication in numbering, re ads as follows:
205-A. Each hemp-derived cannabinoid product shall be registered
206-with the State Board of Agricultu re prior to distribution in this
207-state by the manufacturer. The application shall be submitted to
208-the State Department of Agriculture on a registration form provided
209-by the Board.
209+A. Each hemp-derived ingestible cannabinoid product shall be
210+registered with the State Board of Agricultu re prior to distribution
211+in this state by the manufacturer. The application shall be
212+submitted to the State Department of Agriculture on a registration
213+form provided by the Board.
210214 B. All registration shall expire on December 31 of the year for
211-which the hemp-derived cannabinoid product is reg istered.
215+which the hemp-derived ingestible cannabinoid product is reg istered.
212216 C. The applicant shall submit with the application for
213-registration a copy of the label and, upon request of the
214-Department, a copy of all advertisements, brochures, posters, and
215-television and radio announcements to be used in promoting the sale
216-of the hemp-derived cannabinoid product.
217+registration a copy of the label and a copy of all advertisements,
218+brochures, posters, and television and radio announcements to be
219+used in promoting the sale of the hemp-derived ingestible
220+cannabinoid product.
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243-D. If the Board discovers any hemp-derived cannabinoid product
244-that is not registered, for which the registration was falsely
245-submitted, or for which the registration was late, the Board may
248+D. If the Board discovers any hemp-derived ingestible
249+cannabinoid product that is not registered, the registration was
250+falsely submitted, or the regist ration was late, the Board may
246251 assess an administrative penalty. The penalty shall be assessed per
247252 offending product.
248253 E. The State Board of Agriculture may promulgate rules
249254 containing the requirements for regist ration, registration fees,
250255 label requirements, and an y other rules necessary for the
251256 implementation of this section.
252257 SECTION 3. NEW LAW A new section of law to be codified
253258 in the Oklahoma Statutes as Section 3-413 of Title 2, unless there
254259 is created a duplication in numbering, reads as follows:
255-A. Each container of hemp -derived cannabinoid product shall be
256-labeled on the face or display side in a readable and conspicuous
257-form to show at a minimum the following information:
258-1. The net weight of the contents;
260+A. Each container of hemp -derived ingestible cannabinoid
261+product shall be labeled on the face or display side in a readable
262+and conspicuous form to show at a minimum the following information:
263+1. The new weight of the contents;
259264 2. The name of the product;
260-3. The total amount of milligrams of hemp-derived cannabinoid
261-in the entire package;
265+3. The guaranteed analysis;
262266 4. Milligrams per serving of c annabidiol (CBD),
263267 tetrahydrocannabinol (THC), or any other marketed cannabinoid, if
264268 applicable;
265-5. A list of all ingredients;
269+5. List of all ingredients;
270+6. A statement of the product’s purpose;
271+7. Lot or batch number;
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292-6. A statement that the product is not approved for any medi cal
293-use by the United States Food and Drug Administration;
294-7. The lot or batch number;
295-8. The expiration or best-by date;
299+8. Expiration or best-by date;
296300 9. Adequate directions for use;
297301 10. A web address, QR code, or other scannable barcode
298302 accessing the laboratory te sting reports;
299-11. The country or state of origin where hemp is sourced;
303+11. Country or state of origin where hemp is sourced;
300304 12. Servings per package;
301-13. Means for reporting adve rse events;
302-14. The name, address, and telephone number of the registrant;
303-and
304-15. Warnings regarding children , pets, and pregnancy.
305-B. The applicant shall su bmit a current label with a working
306-barcode for the certificate of analysis for the hemp-derived
307-cannabinoid products with the application.
308-C. A hemp-derived cannabinoid product shall not imitate any
305+13. Means for reporting adverse even ts; and
306+14. The name, address, and telephone number of the approved
307+applicant to produce the products.
308+B. Bulk lot labels shall be provided to the purchaser by
309+attaching a copy of t he label to the invoice that sh all be furnished
310+to the purchaser.
311+C. The applicant shall su bmit a current label and all
312+certificates of analysis for the hemp-derived ingestible cannabinoid
313+products with the application.
314+D. The State Board of Agricul ture may require proof of any
315+claims made by the re gistrant for any hemp-derived ingestible
316+cannabinoid product. If no claims are made, the Board may require
317+proof of usefulness and value of the hemp-derived ingestible
318+cannabinoid product.
319+E. A hemp-derived cannabinoid product shall not imitate any
309320 packaging used for products typically marketed to children.
310-D. All packaging shall be chil d-resistant.
311-E. Packaging that contains more than one (1) serving shall be
312-resealable.
313-F. If the Board approved the guaranteed analysis and listing of
314-a hemp-derived cannabinoid product, the product shall be subject to
315-inspection and analysis.
321+F. All packaging shall be chil d resistant.
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342-G. The Board may prescribe methods and procedures of inspecti on
343-and analysis of hemp-derived cannabinoid products. The Board may
344-stipulate, by rule, the quantities that are allowed in a hemp-
345-derived cannabinoid product.
349+G. Packaging that contains more than one (1) serv ing shall be
350+resealable.
351+H. If the Board approved the guaranteed analysis and listing of
352+a hemp-derived ingestible cannabinoid product, the product shall be
353+subject to inspection and analysis.
354+I. The Board may prescribe methods and procedures of inspecti on
355+and analysis of hemp-derived ingestible cannabinoid produc ts. The
356+Board may stipulate, by rule, the quantities that are allowed in a
357+hemp-derived ingestible cannabinoid product.
346358 SECTION 4. NEW LAW A new section of law to be codified
347359 in the Oklahoma Statutes as Section 3-414 of Title 2, unless there
348360 is created a duplication in numbering, reads as follows:
349361 A. A hemp-derived cannabinoid may be added to an ingestible
350362 product during the manufacturing process or prior to retail sale a t
351363 a food service establishment.
352-B. The hemp-derived cannabinoid shall be obtain ed from product
353-grown under the United States Department of Agricultur e (USDA) hemp
354-licensing program.
364+B. The hemp-derived cannabinoid shall be obtain ed from a
365+licensed and approved source.
355366 C. The food processor or food service establishment shall
356-obtain a valid certificate of analysis from the licensed USDA hemp
357-grower or processor and provide a copy upon request or inspection.
367+obtain a valid certificate of analysis from the licensed and
368+approved source and provide a copy upon request or inspection.
358369 SECTION 5. NEW LAW A new section of law to be codified
359370 in the Oklahoma Statutes as Section 3-415 of Title 2, unless there
360371 is created a duplication in numbering, reads as follows:
361-A. No person shall distribute misbranded hem p-derived
362-cannabinoid product. A hemp-derived cannabinoid product shall be
363-considered misbranded if:
364-1. The labeling is false or misleading;
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399+A. No person shall distribute misbranded hem p-derived
400+ingestible cannabinoid product. A hemp-deprived ingestible
401+cannabinoid product shall be considered m isbranded if:
402+1. The labeling is false or misleading;
391403 2. The product is distributed under the name of an other hemp-
392-derived cannabinoid product; or
404+derived ingestible cannabinoid product; or
393405 3. The product is not lab eled in compliance with the rules of
394406 the State Board of Agricultur e.
395407 B. No person shall dis tribute an adulterate d hemp-derived
396-cannabinoid product. A hemp-derived cannabinoid product shall be
397-considered adulterated if:
408+ingestible cannabinoid product. A hemp-derived ingestible
409+cannabinoid product shall be considered adulterated if:
398410 1. The product contains any deleterious or harmful substance in
399411 sufficient amounts to render the product injurious to beneficial
400412 plant life, animals, humans, aquatic life, soil, or water when
401413 applied in accordance with directions for use on the label;
402414 2. Adequate warning statements or directions for use , which may
403415 be necessary to protect plant life, animals, humans, aquatic lif e,
404416 soil, or water, are not shown upon the label; or
405417 3. The product’s composition falls below or differs from that
406418 which the product is purported to possess by labeling.
407419 SECTION 6. NEW LAW A new section of law to be codified
408420 in the Oklahoma Statutes as Section 3-416 of Title 2, unless there
409421 is created a duplication in numbering, reads as follows:
410-A. The State Board of Agriculture may issue and enforce a st op
411-sale, stop use, or removal order to the owner or custo dian of any
412-lot of hemp-derived cannabinoid product. The owner or custodian
413-shall hold the lot of hemp-derived cannabinoid product until the
414-time when the product or labeling complies with this act.
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449+A. The State Board of Agriculture may issue and enforce a st op
450+sale, stop use, or removal order to the owner or custo dian of any
451+lot of hemp-derived ingestible cannabinoid product. The owner or
452+custodian shall hold the lot of hemp-derived ingestible cannabinoid
453+product until the time when the prod uct or labeling complies with
454+this act.
441455 B. It shall be a violation of thi s act for any person to:
442-1. Distribute a hemp-derived cannabinoid product that is not
443-registered with the State Board of Agriculture;
444-2. Distribute a hemp-derived cannabinoid product that is not
445-labeled in accordance with the requirements of the Board;
446-3. Distribute a hemp-derived cannabinoid product th at is
447-misbranded;
448-4. Distribute a hemp-derived cannabinoid product that is
449-adulterated;
456+1. Distribute a hemp-derived ingestible cannabinoid product
457+that is not registered with the State Board of Agric ulture;
458+2. Distribute a hemp-derived ingestible cannabinoid product
459+that is not labeled in accordance with the requirements of the
460+Board;
461+3. Distribute a hemp-derived ingestible cannabinoid product
462+that is misbranded;
463+4. Distribute a hemp-derived ingestible cannabino id product
464+that is adulterated;
450465 5. Violate any provision of the requirements of the Board; or
451466 6. Fail to comply with a stop sale, stop use, or removal order.
452467 SECTION 7. This act shall become effective November 1, 2023.
453-Passed the Senate the 22nd day of March, 2023.
454-
455-
456-
457- Presiding Officer of the Senate
458-
459-
460-Passed the House of Representatives the ____ day of __________,
461-2023.
462-
463-
464-
465- Presiding Officer of the House
466- of Representatives
467-
468+COMMITTEE REPORT BY: COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS
469+February 20, 2023 - DO PASS