Req. No. 1505 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) SENATE BILL 635 By: Paxton AS INTRODUCED 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 ingestible cannabinoid product with th e State Board of Agriculture; establishing conditions for registration by applicant to the Board; providing for promulgation of rules by Board for registration; establishing requirements for labeling and packaging necessary to sell hemp-derived ingestible cannabinoid products in the state; allowing for hemp-derived cannabinoids to be added to produc ts 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 rea d as follows: Section 3-402. As used in the Oklahom a Industrial Hemp Program: 1. “Department” means the Oklahoma Department of Agriculture, Food, and Forestry; Req. No. 1505 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 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 hem p 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 cultivate o r process industrial hemp an d 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 of a nother licensed person; 6. “Hemp-derived ingestible cannabinoid product” means a product that contains ca nnabinoids 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 Req. No. 1505 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 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, Req. No. 1505 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 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, reads as follows: A. Each hemp-derived ingestible 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 ingestible cannabinoid product is reg istered. C. The applicant shall submit with the application for registration a copy of the label and a copy of all advertisements, brochures, posters, and television and radio announcements to be used in promoting the sale of the hemp-derived ingestible cannabinoid product. Req. No. 1505 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 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 ingestible cannabinoid product that is not re gistered, the registration was falsely submitted, or the regist ration 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 ingestible 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 new weight of the contents; 2. The name of the product; 3. The guaranteed analysis; 4. Milligrams per serving of c annabidiol (CBD), tetrahydrocannabinol (THC), or any other marketed cannabinoid, if applicable; 5. List of all ingredients; 6. A statement of the product’s purpose; 7. Lot or batch number; Req. No. 1505 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8. Expiration or best-by date; 9. Adequate directions for use; 10. A web address, QR code, or other scannable barcode accessing the laboratory testing reports; 11. Country or state of origin where hemp is sourced; 12. Servings per package; 13. Means for reporting adverse even ts; and 14. The name, address, and telephone number of the approved applicant to produce the products. B. Bulk lot labels shall be provided to the purchaser by attaching a copy of t he label to the invoice that sh all be furnished to the purchaser. C. The applicant shall su bmit a current label and all certificates of analysis for the hemp-derived ingestible cannabinoid products with the application. D. The State Board of Agricul ture may require proof of any claims made by the re gistrant for any hemp-derived ingestible cannabinoid product. If no claims are made, the Board may require proof of usefulness and value of the hemp-derived ingestible cannabinoid product. E. A hemp-derived cannabinoid product shall not imitate any packaging used for products typically marketed to children. F. All packaging shall be chil d resistant. Req. No. 1505 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 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. Packaging that contains more than one (1) serving shall be resealable. H. If the Board approved the guaranteed analysis and listing of a hemp-derived ingestible cannabinoid product, the product shall be subject to inspection and analysis. I. The Board may prescribe methods and procedures of inspection and analysis of hemp-derived ingestible cannabinoid produc ts. The Board may stipulate, by rule, the quantities that are allowed in a hemp-derived ingestible 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 estab lishment. B. The hemp-derived cannabinoid shall be obtain ed from a licensed and approved source. C. The food processor or food service establishment shall obtain a valid certificate of analysis from the licensed and approved source 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: Req. No. 1505 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. No person shall distribute misbranded hem p-derived ingestible cannabinoid product. A hemp-deprived ingestible cannabinoid product shall be considered m isbranded if: 1. The labeling is false or misleading; 2. The product is distributed under the name of another hem p- derived ingestible 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 dis tribute an adulterate d hemp-derived ingestible cannabinoid product. A hemp-derived ingestible 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 lif e, 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: Req. No. 1505 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 ingestible cannabinoid product. The owner or custodian shall hold the lot of hem p-derived ingestible cannabinoid product until the time when the prod uct or labeling complies with this act. B. It shall be a violation of thi s act for any person to: 1. Distribute a hemp-derived ingestible cannabinoid product that is not registered with the State Board of Agric ulture; 2. Distribute a hemp-derived ingestible cannabinoid product that is not labeled in accordance with the requirements of the Board; 3. Distribute a hemp-derived ingestible cannabinoid product that is misbranded; 4. Distribute a hemp-derived ingestible cannabino id 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. 59-1-1505 MR 1/18/2023 9:06:23 AM