ENGR. S. B. NO. 635 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE BILL NO. 635 By: Paxton of the Senate and Dobrinski of the House An Act relating to Oklahoma Industrial Hemp Program; amending 2 O.S. 2021, Section 3-402, as amended by Section 1, Chapter 265, O.S.L. 2022 (2 O.S. Supp. 2022, Section 3-402), which relates to definition s; defining term; requiring registration of hem p-derived cannabinoid product with th e State Board of Agriculture; establishing conditions for registration by applicant to the Board; providing for promulgatio n of rules by Board for registration; establishing requirements for labeling and packaging necessary to sell hemp-derived cannabinoid products in the state; allowing for hemp-derived cannabinoids to be added to products under certain conditions; prohibiting distribution of products if misbranded or adulterated; allowing the Board to issue and enforce stop sale, stop use, or r emoval or products under certain conditions; providing for codification; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 2 O.S. 2021, Section 3 -402, as amended by Section 1, Chapter 265, O .S.L. 2022 (2 O.S. Supp. 2022, Section 3-402), is amended to read as follows: Section 3-402. As used in the Oklahoma Industrial Hemp Program: 1. “Department” means the Oklahoma Department of Agriculture, Food, and Forestry; ENGR. S. B. NO. 635 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. “Fiber” means the stalk of the industrial hemp plant and does not include the flower or seeds of the plant; 3. “Flower” means the part of the industrial hemp plant that contains the majority of the industrial hemp plant’s tetrahydrocannabinol and other cann abinoids; 4. “Grain” means all of the parts of an industrial hemp plant except the stalk or the flower of the industrial hemp plant; 5. “Handling” means possessing or storing industrial hemp for any period of time on premises owned, operated or controlled by a person licensed to cultivat e or process industrial hemp and also includes possessing or storing industrial hemp in a vehicle for any period of time other than during its actual transport from the premises of a licensed person to cultivate or process industrial hemp to the premises o f another licensed person; 6. “Hemp-derived cannabinoid product” means a product that contains cannabinoids that are extracted from hemp or resin from hemp by physical or chemical means and is intended for administration to a consumer including, but not limited to, concentrates, oils, tinctures, edibles, pills, topicals, gels, creams, and other derivative forms. The term shall also mean products available for animal or human consumption, which may be in the form of inhalation into the respiratory system and ingestion in the gastrointestinal system, or tissue absorption. The term shall not include seeds or seed-derived ingredients that are generally ENGR. S. B. NO. 635 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 recognized as safe by the United State s Food and Drug Administration; 7. “Industrial hemp” means the plant Cannabis sativa L. and any part of the plant, including the seeds thereof, and all derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, whether growing or not, with a delta -9 tetrahydrocannabinol concentration of not mor e than three-tenths of one percent (0.3%) on a dry-weight basis; 7. 8. “Licensee” means a person who holds a valid Industrial Hemp License to grow industrial hemp under the Oklahoma Industrial Hemp Program. A licensee shall have the ability to remediate noncompliant industrial hemp with a delta-9 tetrahydrocannabinol concentration of not more than one percent (1.0%) on a dry-weight basis for retesting as set forth by the Department as long as the noncompliant industrial hemp has a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent (0.3%) on a dry-weight basis after retesting, and the option to remediate the industrial hemp through the reasonable destruction of the flower or shredding of the entire lot into a homogeneous biomass results in the remediation of any part of the industrial hemp plant that is above three-tenths of one percent (0.3%) on a dry-weight basis. All noncompliant hemp must be tracked and documented . The State Board of Agriculture shall have jurisdiction over such remediation, which includes, but is not limited to, destruction through composting, ENGR. S. B. NO. 635 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 burning, or other regulated disposal methods if the industrial hemp is not remediated into a final product bef ore processing below three-tenths of one percent (0.3%) on a dry-weight basis; 8. 9. “License” means authorization by the Department for any person to grow and cultivate industrial hemp on a registered land area as part of the Oklahoma Industrial Hemp Pro gram; and 9. 10. “Processing” means converting industrial hemp into a marketable form, including the production of all derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-412 of Title 2, unless there is created a duplication in numbering, re ads as follows: A. Each hemp-derived cannabinoid product shall be registered with the State Board of Agricultu re prior to distribution in this state by the manufacturer. The application shall be submitted to the State Department of Agriculture on a registration form provided by the Board. B. All registration shall expire on December 31 of the year for which the hemp-derived cannabinoid product is reg istered. C. The applicant shall submit with the application for registration a copy of the label and, upon request of the Department, a copy of all advertisements, brochures, posters, and television and radio announcements to be used in promoting the sale of the hemp-derived cannabinoid product. ENGR. S. B. NO. 635 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. If the Board discovers any hemp-derived cannabinoid product that is not registered, for which the registration was falsely submitted, or for which the registration was late, the Board may assess an administrative penalty. The penalty shall be assessed per offending product. E. The State Board of Agriculture may promulgate rules containing the requirements for regist ration, registration fees, label requirements, and an y other rules necessary for the implementation of this section. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-413 of Title 2, unless there is created a duplication in numbering, reads as follows: A. Each container of hemp -derived cannabinoid product shall be labeled on the face or display side in a readable and conspicuous form to show at a minimum the following information: 1. The net weight of the contents; 2. The name of the product; 3. The total amount of milligrams of hemp-derived cannabinoid in the entire package; 4. Milligrams per servin g of cannabidiol (CBD), tetrahydrocannabinol (THC), or any other marketed cannabinoid, if applicable; 5. A list of all ingredients; ENGR. S. B. NO. 635 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. A statement that the product is not approved for any medi cal use by the United States Food and Drug Administration; 7. The lot or batch number; 8. The expiration or best-by date; 9. Adequate directions for use; 10. A web address, QR code, or other scannable barcode accessing the laboratory te sting reports; 11. The country or state of origin where hemp is sourced; 12. Servings per package; 13. Means for reporting adve rse events; 14. The name, address, and telephone number of the registrant; and 15. Warnings regarding children , pets, and pregnancy. B. The applicant shall su bmit a current label with a working barcode for the certificate of analysis for the hemp-derived cannabinoid products with the application. C. A hemp-derived cannabinoid product shall not imitate any packaging used for products typically marketed to childre n. D. All packaging shall be chil d-resistant. E. Packaging that contains more than one (1) serving shall be resealable. F. If the Board approved the guaranteed analysis and listing of a hemp-derived cannabinoid product, the product shall be subject to inspection and analysis. ENGR. S. B. NO. 635 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 G. The Board may prescribe methods and procedures of inspecti on and analysis of hemp-derived cannabinoid products. The Board may stipulate, by rule, the quantities that are allowed in a hemp- derived cannabinoid product. SECTION 4. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-414 of Title 2, unless there is created a duplication in numbering, reads as follows: A. A hemp-derived cannabinoid may be added to an ingestible product during the manufacturing process or prior to retail sale at a food service establishment. B. The hemp-derived cannabinoid shall be obtain ed from product grown under the United States Department of Agricultur e (USDA) hemp licensing program. C. The food processor or food service esta blishment shall obtain a valid certificate of analysis from the licensed USDA hemp grower or processor and provide a copy upon request or inspection. SECTION 5. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-415 of Title 2, unless there is created a duplication in numbering, reads as follows: A. No person shall distribute misbranded hem p-derived cannabinoid product. A hemp-derived cannabinoid product shall be considered misbranded if: 1. The labeling is false or misleading; ENGR. S. B. NO. 635 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The product is distributed under the name of another hemp- derived cannabinoid product; or 3. The product is not lab eled in compliance with the rules of the State Board of Agricultur e. B. No person shall distribute an adulterated hemp-derived cannabinoid product. A hemp-derived cannabinoid product shall be considered adulterated if: 1. The product contains any deleterious or harmful substance in sufficient amounts to render the product injurious to beneficial plant life, animals, humans, aquatic life, soil, or water when applied in accordance with directions for use on the label; 2. Adequate warning statements or directions for use , which may be necessary to protect plant life, animals, humans, aquatic life, soil, or water, are not shown upon the label; or 3. The product’s composition falls below or differs from that which the product is purported to possess by labeling. SECTION 6. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 3-416 of Title 2, unless there is created a duplication in numbering, reads as follows: A. The State Board of Agriculture may issue and enforce a st op sale, stop use, or removal order to the owner or custo dian of any lot of hemp-derived cannabinoid product. The owner or custodian shall hold the lot of hemp-derived cannabinoid product until the time when the product or labeling complies with this act. ENGR. S. B. NO. 635 Page 9 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. It shall be a violation of thi s act for any person to: 1. Distribute a hemp-derived cannabinoid product that is not registered with the State Board of Agriculture; 2. Distribute a hemp-derived cannabinoid product that is not labeled in accordance with the requirements of the Board; 3. Distribute a hemp-derived cannabinoid product th at is misbranded; 4. Distribute a hemp-derived cannabinoid product that is adulterated; 5. Violate any provision of the requirements of the Board; or 6. Fail to comply with a stop sale, stop use, or removal order. SECTION 7. This act shall become effective November 1, 2023. Passed the Senate the 22nd day of March, 2023. Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2023. Presiding Officer of the House of Representatives