Florida Senate - 2019 SB 1058 By Senator Albritton 26-01154-19 20191058__ 1 A bill to be entitled 2 An act relating to the state hemp program; creating s. 3 581.217, F.S.; creating the state hemp program within 4 the Department of Agriculture and Consumer Services; 5 providing legislative findings; providing definitions; 6 providing requirements for program registration and 7 distribution and retail sale of hemp, hemp products, 8 and hemp extract; providing applicability; directing 9 the department, in consultation with the Department of 10 Health and the Department of Business and Professional 11 Regulation, to adopt specified rules; providing 12 corrective measures for violations; directing the 13 Commissioner of Agriculture, in consultation with the 14 Governor and Attorney General, to submit a specified 15 plan to the United States Secretary of Agriculture; 16 amending s. 1004.4473, F.S.; authorizing universities 17 to implement industrial hemp pilot projects pursuant 18 to the state hemp program; providing an effective 19 date. 20 21 Be It Enacted by the Legislature of the State of Florida: 22 23 Section 1. Section 581.217, Florida Statutes, is created to 24 read: 25 581.217 State hemp program.— 26 (1) CREATION AND PURPOSE.—The state hemp program is created 27 within the department to promote the cultivation, handling, 28 processing, and sale of hemp, hemp products, and hemp extract in 29 the state. 30 (2) LEGISLATIVE FINDINGS.—The Legislature finds that: 31 (a) Hemp is an agricultural commodity. 32 (b) Hemp-derived cannabinoids, including, but not limited 33 to, cannabidiol, are not controlled substances or adulterants. 34 (c) Products containing one or more hemp-derived 35 cannabinoids, including, but not limited to, cannabidiol, 36 intended for ingestion are foods and not controlled substances 37 or adulterated products. 38 (d) The addition of hemp derivatives, including, but not 39 limited to, hemp-derived cannabidiol, to cosmetics, personal 40 care products, and products intended for human or animal 41 consumption is not an adulteration of such products. 42 (3) DEFINITIONS.—As used in this section, the term: 43 (a) “Cannabidiol” means the compound by the same name 44 derived from the hemp variety of the Cannabis sativa L. plant. 45 (b) “Cultivate” means planting, watering, growing, and 46 harvesting a hemp plant or crop. 47 (c) “Federally defined THC level for hemp” means a total 48 delta-9-tetrahydrocannabinol concentration, including immediate 49 precursors, that does not exceed 0.3 percent on a dry-weight 50 basis, or the tetrahydrocannabinol concentration for hemp 51 defined in 7 U.S.C. s. 5940, whichever is greater. 52 (d) “Handle” means possessing or storing hemp plants for 53 any period of time on premises owned, operated, or controlled by 54 a person or an entity registered to cultivate or process hemp, 55 including the possession or storage of hemp plants in a vehicle 56 for any period of time other than during the actual transport 57 from the premises of a person registered to cultivate or process 58 hemp or industrial hemp to the premises of another registered 59 person. The term does not include the possession or storage of 60 finished hemp products. 61 (e) “Hemp” means the plant Cannabis sativa L. and any part 62 of that plant, including seeds, derivatives, extracts, 63 cannabinoids, isomers, acids, salts, and salts of isomers 64 thereof, whether growing or not, that has the federally defined 65 THC level for hemp. The term includes industrial hemp as defined 66 in s. 1004.4473. 67 (f) “Hemp extract” means a no-THC or low-THC substance or 68 compound that: 69 1. Is derived from or contains any part of the plant 70 Cannabis sativa L. that meets the definition of industrial hemp 71 under s. 1004.4473; 72 2. Contains a total delta-9-tetrahydrocannabinol 73 concentration, including immediate precursors, that does not 74 exceed 0.3 percent on a dry-weight basis; and 75 3. Does not contain other controlled substances. 76 (g) “Hemp products” means all products with the federally 77 defined THC level for hemp derived from or made by processing 78 hemp plants or plant parts that are prepared in a form available 79 for retail sale, including, but not limited to cosmetics, 80 personal care products, food intended for animal or human 81 consumption, cloth, cordage, fiber, fuel, paint, paper, 82 particleboard, plastics, and any product containing one or more 83 hemp-derived cannabinoids, such as cannabidiol. 84 (h) “Independent testing laboratory” means a laboratory 85 that: 86 1. Does not have a direct or indirect interest in the 87 entity whose product is being tested; 88 2. Does not have a direct or indirect interest in a 89 facility that cultivates, processes, distributes, dispenses, or 90 sells no-THC or low-THC hemp extract or a substantially similar 91 substance in another jurisdiction; cultivates, processes, 92 distributes, dispenses, or sells marijuana, as defined in s. 93 381.986; or cultivates, processes, distributes, dispenses, or 94 sells industrial hemp; and 95 3. Is accredited by a third-party accrediting body, such as 96 the American Association for Laboratory Accreditation or Assured 97 Calibration and Laboratory Accreditation Select Services, as a 98 competent testing laboratory pursuant to ISO/IEC 17025 of the 99 International Organization for Standardization. 100 (i) “Process” means the conversion of hemp into a 101 marketable form. 102 (4)(a) REGISTRATION.—A person or entity seeking to 103 cultivate, handle, process, transport, or sell hemp, hemp 104 products, or hemp extract must register with the department. 105 (b) A person or entity may not cultivate, handle, process, 106 transport, or sell hemp, hemp products, or hemp extract in the 107 state without being registered with the department. 108 (c) A person or entity seeking to cultivate hemp must 109 provide to the department the legal land description and global 110 positioning coordinates of the area where hemp will be 111 cultivated. 112 (d) A person or entity seeking to cultivate, handle, 113 process, transport, or sell hemp must provide to the department 114 prior written consent allowing representatives of the 115 department, the state police, and other state and local law 116 enforcement agencies to enter onto all premises where hemp is 117 cultivated, handled, or processed for the purpose of conducting 118 physical inspections and ensuring compliance with the 119 requirements of this section and department rules. 120 (5) INDUSTRIAL HEMP PILOT PROJECTS.—Notwithstanding s. 121 1004.4473, an existing industrial hemp project approved by a 122 university under s. 1004.4473 is eligible to cultivate, handle, 123 and process hemp and may register with the department to 124 participate in the state hemp program. 125 (6)(a) DISTRIBUTION AND RETAIL SALE OF HEMP AND HEMP 126 PRODUCTS.—Distribution and retail sale of hemp and hemp products 127 may be conducted when the hemp or the hemp used in products are 128 legally cultivated in another state or jurisdiction and meet the 129 same or substantially the same requirements for cultivating, 130 handling, and processing hemp and hemp products under this 131 section. 132 (b) Hemp and hemp products may be legally transported 133 across state lines and exported to foreign nations consistent 134 with federal laws and the laws of respective foreign nations. 135 (7) DISTRIBUTION AND RETAIL SALE OF HEMP EXTRACT.—Before 136 December 31, 2019, hemp extract may be distributed in the state 137 without meeting the requirements of this section. Beginning 138 December 31, 2019, hemp extract may only be distributed or sold 139 in the state if the product: 140 (a)1. Has been approved by the United States Food and Drug 141 Administration or the United States Drug Enforcement 142 Administration as a prescription drug or an over the counter 143 drug; or 144 2. Has a certificate of analysis prepared by an independent 145 testing laboratory that states: 146 a. The hemp extract is the product of a batch tested by the 147 independent testing laboratory; and 148 b. The batch contained a total delta-9-tetrahydrocannabinol 149 concentration, including immediate precursors, that did not 150 exceed 0.3 percent on a dry-weight basis pursuant to the testing 151 of a random sample of the batch. 152 (b) Is distributed or sold in packaging that includes: 153 1. A scannable bar code or quick response code linked to 154 the certificate of analysis of the hemp strain extract by an 155 independent testing laboratory; 156 2. The batch number; 157 3. The Internet address of a website to obtain batch 158 information; 159 4. The expiration date; 160 5. The number of milligrams of no-THC or low-THC hemp 161 extract; and 162 6. A statement that the product contains a total delta-9 163 tetrahydrocannabinol concentration, including immediate 164 precursors, that does not exceed 0.3 percent on a dry-weight 165 basis. 166 (8) APPLICABILITY.—Notwithstanding any other law: 167 (a) This section does not authorize a registrant to violate 168 any federal or state law or regulation. 169 (b) Section 1004.4473 does not apply to the cultivation, 170 handling, processing, transport, or sale of hemp products and 171 hemp extracts pursuant to this section, including those products 172 and extracts containing one or more hemp-derived cannabinoids, 173 including, but not limited to, cannabidiol. 174 (c) A registrant that negligently violates this section or 175 department rules is not subject to any criminal or civil 176 enforcement action by the state or a local government other than 177 the enforcement action authorized under subsection (10). 178 (9) RULES.—Within 90 days of the effective date of this 179 act, the department shall, in consultation with the Department 180 of Health and the Department of Business and Professional 181 Regulation, adopt rules to administer the state hemp program. 182 The rules shall ensure the application process and registration 183 requirements are reasonable and attainable for small farmers, 184 small businesses, and private individuals. The rules shall 185 provide for: 186 (a) A minimal application that does not include extensive 187 and prohibitive requirements to become registered, such as 188 additional credentials, expertise, certifications, licensing, 189 bonding capacity, financing, insurance, equipment, security and 190 chain of control, or other similar provisions; 191 (b) Standards, best practices, and self-regulation for 192 registrants, including specific guidelines to ensure that 193 registrants remain in compliance with department rules; 194 (c) University participation in or affiliation with the 195 state hemp program; 196 (d) Sampling and testing measures to ensure that hemp, hemp 197 products, and hemp extract cultivated, handled, and processed 198 under this section do not exceed the federally defined THC level 199 for hemp; 200 (e) Due process, an appeals process, and opportunities to 201 cure unintentional and negligent violations for registrants; 202 (f) Enforcement of this section and department rules; 203 (g) A civil penalty schedule for violations; 204 (h) A schedule of nonrefundable fees for administering the 205 program; 206 (i) Strategies for assisting registrants in the development 207 of high-quality products and successful competition in national 208 and global hemp markets; and 209 (j) Inclusion of the state hemp program in the Florida 210 Agricultural Promotional Campaign and for promotion and labeling 211 of hemp, hemp products, and hemp extract as “Fresh from 212 Florida.” 213 (10)(a) VIOLATIONS.—Registrants must complete a corrective 214 action plan if the department determines that a registrant has 215 negligently violated this section or department rules, including 216 negligently: 217 1. Failing to provide a legal land description and global 218 positioning coordinates pursuant to subsection (4); 219 2. Failing to obtain a proper registration or other 220 required authorization from the department; or 221 3. Producing Cannabis sativa L. with more than the 222 federally defined THC level for hemp. 223 (b) The corrective action plan must include: 224 1. A reasonable date by which the registrant must correct 225 the negligent violation; and 226 2. A requirement that the registrant periodically report to 227 the department on compliance with the program for a period of 228 not less than 2 calendar years after the date of the violation. 229 (c) A registrant that negligently violates the corrective 230 action plan under this subsection three times within 5 years is 231 ineligible to produce hemp for 5 years from the date of the 232 third violation. 233 (d) If the department determines that a registrant has 234 violated this section or department rules with a culpable mental 235 state greater than negligence, the department shall immediately 236 report the registered participant to the Attorney General and 237 the United States Attorney General. 238 (11)(a) DEPARTMENT PLAN.—Within 90 days of the effective 239 date of this act, the Commissioner of Agriculture, in 240 consultation with the Governor and Attorney General, shall 241 submit to the United States Secretary of Agriculture the 242 department plan for regulating hemp production. The plan must 243 include: 244 1. A procedure for maintaining relevant information 245 regarding the locations in the state where hemp is cultivated, 246 handled, and processed for not less than 3 calendar years; 247 2. A procedure that uses post-decarboxylation or other 248 similarly reliable methods for testing delta-9 249 tetrahydrocannabinol concentration levels of hemp cultivated, 250 handled, and processed in the state; 251 3. A procedure for the effective disposal of hemp, hemp 252 products, and hemp extract cultivated, handled, and processed in 253 violation of this section and department rules; and 254 4. Guidance for compliance with enforcement procedures. 255 (b) If the department plan for regulating hemp production 256 is not approved by the United States Secretary of Agriculture, 257 the Commissioner of Agriculture, in consultation with the 258 Governor and Attorney General, shall submit an amended plan. 259 Section 2. Subsection (8) is added to section 1004.4473, 260 Florida Statutes, to read: 261 1004.4473 Industrial hemp pilot projects.— 262 (8) Notwithstanding this section, a university may choose 263 to implement an industrial hemp pilot project pursuant to s. 264 581.217. 265 Section 3. This act shall take effect July 1, 2019.