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         581.217State 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.