CS for CS for SB 1020 First Engrossed 20191020e1 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 the purpose of the program; providing 6 legislative findings; defining terms; providing 7 requirements for program licensure; requiring the 8 department to deny a license or renewal to certain 9 applicants; authorizing certain industrial hemp pilot 10 projects to participate in the program; providing for 11 the distribution and retail sale of hemp extract; 12 providing civil penalties; providing that hemp seed 13 and hemp seed dealers are subject to the Florida Seed 14 Law; providing hemp seed certification requirements; 15 requiring the department, in consultation with the 16 Department of Health and the Department of Business 17 and Professional Regulation, to adopt specified rules 18 within a specified timeframe; directing the 19 Commissioner of Agriculture, in consultation with and 20 with final approval from the Administration 21 Commission, to submit a specified plan within a 22 specified timeframe to the United States Secretary of 23 Agriculture; creating an Industrial Hemp Advisory 24 Board for a specified purpose; providing that the 25 board is adjunct to the department for administrative 26 purposes; providing for the membership and meetings of 27 the board; prohibiting members of the board from 28 receiving compensation; authorizing members of the 29 board to receive reimbursements for certain expenses; 30 amending s. 893.02, F.S.; revising the definition of 31 the term “cannabis” to exclude hemp and industrial 32 hemp for purposes of the Florida Comprehensive Drug 33 Abuse Prevention and Control Act; amending s. 34 1004.4473, F.S.; revising the schools at which the 35 department is required to authorize and oversee the 36 development of industrial hemp pilot projects; 37 authorizing universities to implement industrial hemp 38 pilot projects pursuant to the state hemp program; 39 requiring the department to submit certain program and 40 fee information in its legislative budget request for 41 the 2020-2021 fiscal year; providing a directive to 42 the Division of Law Revision; providing an effective 43 date. 44 45 Be It Enacted by the Legislature of the State of Florida: 46 47 Section 1. Section 581.217, Florida Statutes, is created to 48 read: 49 581.217 State hemp program.— 50 (1) CREATION AND PURPOSE.—The state hemp program is created 51 within the department to promote the cultivation of hemp in this 52 state. 53 (2) LEGISLATIVE FINDINGS.—The Legislature finds that: 54 (a) Hemp is an agricultural commodity. 55 (b) Hemp-derived cannabinoids, including, but not limited 56 to, cannabidiol, are not controlled substances or adulterants. 57 (c) Products containing one or more hemp-derived 58 cannabinoids, including, but not limited to, cannabidiol, 59 intended for ingestion are foods and not controlled substances 60 or adulterated products. 61 (d) The addition of hemp derivatives, including, but not 62 limited to, hemp-derived cannabidiol, to cosmetics, personal 63 care products, and products intended for human or animal 64 consumption is not an adulteration of such products. 65 (3) DEFINITIONS.—As used in this section, the term: 66 (a) “Cannabidiol” means the compound by the same name 67 derived from the hemp variety of the Cannabis sativa L. plant. 68 (b) “Contaminants unsafe for human consumption” includes, 69 but is not limited to, any microbe, fungus, yeast, mildew, 70 herbicide, pesticide, fungicide, residual solvent, metal, or 71 other contaminant found in any amount that exceeds any of the 72 accepted limitations as determined by rules adopted by the 73 Department of Health in accordance with s. 381.986, or other 74 limitation pursuant to the laws of this state, whichever amount 75 is less. 76 (c) “Cultivate” means planting, watering, growing, and 77 harvesting a hemp plant or a hemp crop. The term does not 78 include the transport of a hemp plant or a hemp crop. 79 (d) “Federally defined THC level for hemp” means a total 80 delta-9-tetrahydrocannabinol concentration that does not exceed 81 0.3 percent on a dry-weight basis, or the tetrahydrocannabinol 82 concentration for hemp defined in 7 U.S.C. s. 5940, whichever is 83 greater. 84 (e) “Hemp” means the plant Cannabis sativa L. and any part 85 of that plant, including seeds, derivatives, extracts, 86 cannabinoids, isomers, acids, salts, and salts of isomers 87 thereof, whether growing or not, which has the federally defined 88 THC level for hemp. The term includes industrial hemp as defined 89 in s. 1004.4473. 90 (f) “Hemp extract” means a no-THC or low-THC substance or 91 compound intended for ingestion, containing more than trace 92 amounts of cannabidiol, which: 93 1. Is derived from or contains any part of the plant 94 Cannabis sativa L. which meets the definition of hemp under this 95 section; 96 2. Contains a total delta-9-tetrahydrocannabinol 97 concentration that does not exceed 0.3 percent on a dry-weight 98 basis; and 99 3. Does not contain other controlled substances. 100 (g) “Hemp products” means all products with the federally 101 defined THC level for hemp derived from or made by processing 102 hemp plants or plant parts that are prepared in a form available 103 for retail sale, including, but not limited to, cosmetics, 104 personal care products, food intended for animal or human 105 consumption, cloth, cordage, fiber, fuel, paint, paper, 106 particleboard, plastics, and any product containing one or more 107 hemp-derived cannabinoids, such as cannabidiol. 108 (h) “Independent testing laboratory” means a laboratory 109 that: 110 1. Does not have a direct or indirect interest in the 111 entity whose product is being tested; 112 2. Does not have a direct or indirect interest in a 113 facility that cultivates, processes, distributes, dispenses, or 114 sells hemp or hemp extract in this state or in another 115 jurisdiction or cultivates, processes, distributes, dispenses, 116 or sells marijuana, as defined in s. 381.986; and 117 3. Is accredited by a third-party accrediting body as a 118 competent testing laboratory pursuant to ISO/IEC 17025 of the 119 International Organization for Standardization. 120 (i) “Licensee” means all owners, officers, stakeholders, 121 and directors of such legal or business entity that have a 122 direct or indirect interest in a business seeking to cultivate 123 hemp. 124 (4) LICENSURE.—A licensee: 125 (a) Must submit the results of a Level 2 background 126 screening to the department with every initial and renewal 127 licensure. The department must deny the issuance of a hemp 128 license to an applicant, or refuse to renew the hemp license of 129 a licensee, if the department finds that the applicant or 130 licensee: 131 1. Has falsified any information contained in an 132 application for a hemp license or hemp license renewal; or 133 2. Has been convicted of a felony relating to a controlled 134 substance under state or federal law. A hemp license may not be 135 issued for 10 years after the date of the conviction. 136 (b) May not cultivate hemp in this state without being 137 annually licensed by the department. 138 (c) Must provide to the department the legal land 139 description and global positioning coordinates of the area where 140 hemp will be cultivated. 141 (d) Must provide to the department prior written consent 142 allowing representatives of the department, the state police, 143 and other state and local law enforcement agencies to enter onto 144 all premises, during regular business hours, where hemp is 145 cultivated for the purpose of conducting physical inspections 146 and ensuring compliance with the requirements of this section 147 and department rules. 148 (5) INDUSTRIAL HEMP PILOT PROJECTS.—Notwithstanding s. 149 1004.4473, an existing industrial hemp project approved by a 150 university under s. 1004.4473 is eligible to cultivate hemp and 151 may obtain a license from the department to participate in the 152 state hemp program. 153 (6) DISTRIBUTION AND RETAIL SALE OF HEMP EXTRACT.— 154 (a) Hemp extract may only be distributed and sold in this 155 state if the product: 156 1. Has a certificate of analysis prepared by an independent 157 testing laboratory which states: 158 a. The hemp extract is the product of a batch tested by the 159 independent testing laboratory; 160 b. The batch contained a total delta-9-tetrahydrocannabinol 161 concentration that did not exceed 0.3 percent on a dry-weight 162 basis pursuant to the testing of a random sample of the batch; 163 and 164 c. The batch does not contain contaminants unsafe for human 165 consumption. 166 2. Is distributed or sold in packaging that includes: 167 a. A scannable barcode or quick response code linked to the 168 certificate of analysis of the hemp extract by an independent 169 testing laboratory; 170 b. The batch number; 171 c. The Internet address of a website where batch 172 information may be obtained; 173 d. The expiration date; 174 e. The number of milligrams of hemp extract; and 175 f. A statement that the product contains a total delta-9 176 tetrahydrocannabinol concentration that does not exceed 0.3 177 percent on a dry-weight basis. 178 (b) A violation of this subsection is punishable by a civil 179 fine of $500 and the forfeiture of any products found to be in 180 violation. 181 (c) Hemp, hemp products, and hemp extract may be legally 182 transported across state lines and exported to foreign nations 183 consistent with federal laws, laws of other states, and the laws 184 of respective foreign nations. 185 (7) HEMP SEED.—Hemp seed and hemp seed dealers are subject 186 to chapter 578 and the rules adopted thereto. Licensees shall 187 only use seeds certified by one of the following: 188 (a) A certifying agency as defined in s. 578.011(8). 189 (b) A university conducting an industrial hemp pilot 190 project pursuant to s. 1004.4473. 191 (c) A member of the Association of Official Seed Certifying 192 Agencies. 193 (8) RULES.—Within 90 days after the effective date of this 194 act, the department shall, in consultation with the Department 195 of Health and the Department of Business and Professional 196 Regulation, adopt rules to administer the state hemp program. 197 The rules must ensure that the application process and licensure 198 requirements are reasonable and attainable for small farmers, 199 small businesses, and private individuals. Rules adopted 200 pursuant to this section are not subject to s. 120.541(3). The 201 rules must provide for: 202 (a) Sampling and testing measures to ensure that hemp 203 cultivated under this section do not exceed the federally 204 defined THC level for hemp; 205 (b) Due process and an appeals process; 206 (c) Enforcement of this section and department rules; 207 (d) A civil penalty schedule for violations; 208 (e) A schedule of nonrefundable fees for administering the 209 program; 210 (f) Inclusion of the state hemp program in the Florida 211 Agricultural Promotional Campaign and for promotion and labeling 212 of hemp, hemp products, and hemp extract as “Fresh From Florida” 213 or any other agricultural campaign for the promotion of 214 agriculture products; 215 (g) The regulation of the transportation of hemp, hemp 216 products, and hemp extract in this state; and 217 (h) The implementation of the department plan and this 218 section. 219 (9) DEPARTMENT PLAN.— 220 (a) Within 90 days after the effective date of this act, 221 the Commissioner of Agriculture, in consultation with and with 222 final approval from the Administration Commission as defined in 223 s. 14.202, shall submit to the United States Secretary of 224 Agriculture the department plan for regulating hemp production. 225 The plan must include: 226 1. A procedure for maintaining relevant information 227 regarding the locations in the state where hemp is cultivated 228 for not less than 3 calendar years; 229 2. A procedure that uses post-decarboxylation or other 230 similarly reliable methods for testing delta-9 231 tetrahydrocannabinol concentration levels of hemp cultivated in 232 this state; 233 3. A procedure for the effective disposal of hemp, hemp 234 products, and hemp extract cultivated in violation of this 235 section and department rules; 236 4. Notwithstanding s. 120.569-120.595, a procedure for the 237 enforcement of violations as outlined in 7 U.S.C. s. 1639o to s. 238 1639s; 239 5. A procedure for conducting annual inspections of at 240 least a random sample of licensees to verify that hemp is not 241 being produced in violation of this section; 242 6. A procedure for submitting the information described in 243 7 U.S.C. s. 1639q(d)(2) to the United States Secretary of 244 Agriculture within 30 days after the date on which the 245 information is received; and 246 7. A certification that this state has the resources and 247 personnel to carry out the practices and procedures described in 248 this subsection. 249 (b) If the department plan for regulating hemp production 250 is not approved by the United States Secretary of Agriculture, 251 the Commissioner of Agriculture, in consultation with and with 252 final approval from the Administration Commission, shall submit 253 an amended plan. 254 (10) INDUSTRIAL HEMP ADVISORY BOARD.—An Industrial Hemp 255 Advisory Board is created to provide advice and expertise as 256 needed by a university or the department with respect to plans, 257 policies, and procedures applicable to the administration of 258 their respective industrial hemp pilot programs. 259 (a) The Industrial Hemp Advisory Board shall be adjunct to 260 the department for administrative purposes. 261 (b) The Industrial Hemp Advisory Board shall be composed of 262 all of the following members: 263 1. Two members appointed by the Commissioner of Agriculture 264 and Consumer Services. 265 2. Two members appointed by the Governor. 266 3. Two members appointed by the President of the Senate. 267 4. Two members appointed by the Speaker of the House of 268 Representatives. 269 5. The dean for research of the Institute of Food and 270 Agricultural Sciences of the University of Florida or his or her 271 designee. 272 6. The president of Florida Agricultural and Mechanical 273 University or his or her designee. 274 7. The executive director of the Department of Law 275 Enforcement or his or her designee. 276 8. The president of the Florida Sheriffs Association or his 277 or her designee. 278 9. The president of the Florida Police Chiefs Association 279 or his or her designee. 280 10. The president of the Florida Farm Bureau Federation or 281 his or her designee. 282 11. The president of the Florida Fruit and Vegetable 283 Association or his or her designee. 284 (c) The board shall elect by a two-thirds vote of the 285 members one member to serve as chair of the board. 286 (d) A majority of the members of the board shall constitute 287 a quorum. 288 (e) The board shall meet at least once annually at the call 289 of the chair. 290 (f) Board members may not receive compensation but may be 291 reimbursed for any actual travel expense incurred while 292 attending meetings of the board. 293 Section 2. Subsection (3) of section 893.02, Florida 294 Statutes, is amended to read: 295 893.02 Definitions.—The following words and phrases as used 296 in this chapter shall have the following meanings, unless the 297 context otherwise requires: 298 (3) “Cannabis” means all parts of any plant of the genus 299 Cannabis, whether growing or not; the seeds thereof; the resin 300 extracted from any part of the plant; and every compound, 301 manufacture, salt, derivative, mixture, or preparation of the 302 plant or its seeds or resin. The term does not include 303 “marijuana,” as defined in s. 381.986, if manufactured, 304 possessed, sold, purchased, delivered, distributed, or 305 dispensed, in conformance with s. 381.986; “hemp,” as defined in 306 s. 581.217(3); or “industrial hemp,” as defined in s. 307 1004.4473(1). 308 Section 3. Paragraph (a) of subsection (2) of section 309 1004.4473, Florida Statutes, is amended, and subsection (8) is 310 added to that section, to read: 311 1004.4473 Industrial hemp pilot projects.— 312 (2)(a) The department shall authorize and oversee the 313 development of industrial hemp pilot projects for the Institute 314 of Food and Agricultural Sciences at the University of Florida, 315 Florida Agricultural and Mechanical University,
andany land 316 grant university in the state that has a college of agriculture, 317 and any Florida College System institution or state university 318 that has an established agriculture, pharmacy, or engineering 319 program. The department shall adopt rules as required under the 320 Agricultural Act of 2014, 7 U.S.C. s. 5940, to implement this 321 section, including rules for the certification and registration 322 of sites used for growth or cultivation. The purpose of the 323 pilot projects is to cultivate, process, test, research, create, 324 and market safe and effective commercial applications for 325 industrial hemp in the agricultural sector in this state. 326 (8) Notwithstanding this section, a university may choose 327 to implement an industrial hemp pilot project pursuant to s. 328 581.217. 329 Section 4. The Department of Agriculture and Consumer 330 Services shall include, at a minimum, all of the following 331 information for administering the state hemp program as created 332 pursuant to s. 581.217, Florida Statutes, in the department’s 333 legislative budget request for the 2020-2021 fiscal year: 334 (1) An estimate of the number of licensees for the first 335 year. 336 (2) An outline of costs associated with operation of the 337 program. 338 (3) A recommended fee schedule. 339 Section 5. The Division of Law Revision is directed to 340 replace the phrase “the effective date of this act” wherever it 341 occurs in this act with the date this act becomes a law. 342 Section 6. This act shall take effect upon becoming a law.