Bill Details - HB459 (2019)

HB 459-FN - AS AMENDED BY THE HOUSE

 

19Mar2019... 0790h

2019 SESSION

19-0278

08/10

 

HOUSE BILL 459-FN

 

AN ACT defining industrial hemp, relative to its growth in New Hampshire, its use in food, and establishing a committee to study the federal guidelines on growing industrial hemp.

 

SPONSORS: Rep. Bixby, Straf. 17; Rep. Gagne, Hills. 13; Rep. Pearl, Merr. 26; Rep. Knirk, Carr. 3; Rep. O'Connor, Rock. 6; Rep. Cushing, Rock. 21; Sen. Giuda, Dist 2; Sen. Reagan, Dist 17; Sen. Fuller Clark, Dist 21

 

COMMITTEE: Environment and Agriculture

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Defines "industrial hemp."

 

II.  Allows for the growth of industrial hemp in New Hampshire.

 

III.  Allows for the use of industrial hemp products in food.

 

IV.  Establishes a study committee to study the federal guidelines on growing industrial hemp.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19Mar2019... 0790h 19-0278

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT defining industrial hemp, relative to its growth in New Hampshire, its use in food, and establishing a committee to study the federal guidelines on growing industrial hemp.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Findings.  The general court finds:

I.  Hemp has been continuously cultivated for millennia, is accepted and available in the global marketplace, and has numerous beneficial, practical, and economic uses, including:  high-strength fiber, textiles, clothing, bio-fuel, paper products, protein-rich food containing essential fatty acids and amino acids, biodegradable plastics, resins, nontoxic medicinal and cosmetic products, construction materials, rope, and value-added crafts.

II.  The many agriculturally and environmentally beneficial uses of industrial hemp include:  livestock feed and bedding, stream buffering, erosion control, water and soil purification, and weed control.

III.  The hemp plant, an annual herbaceous plant with a long slender stem ranging in height from 4 to 15 feet and a stem diameter of ¼ to ¾ of an inch is morphologically distinctive and readily identifiable as an agricultural crop grown for the cultivation and harvesting of its fiber and seed.

IV.  Industrial hemp cultivation will enable the state of New Hampshire to accelerate economic growth and job creation and promote environmental stewardship.

2  New Chapter; Industrial Hemp.  Amend RSA by inserting after chapter 439 the following new chapter:

CHAPTER 439-A

INDUSTRIAL HEMP

439-A:1 Purpose.  The intent of this chapter is to define industrial hemp so that farmers and other businesses in the New Hampshire agricultural industry can take advantage of this market opportunity afforded by the passage of the Agricultural Improvement Act of 2018.

439-A:2  Definitions.  In this chapter:

I.  "Cannabidiol" or "CBD" is a phytocannabinoid extracted from industrial hemp plants.

II.  “Commissioner means the commissioner of the department of agriculture, markets, and food.

III.  “Department” means the department of agriculture, markets, and food.

IV.  “Hemp products” means all products made from industrial hemp, including cloth, cordage, fiber, food, fuel, paint, paper, construction materials, plastics, seed, seed meal, seed oil, and certified seed for cultivation.

V.  “Industrial hemp” means the plant Cannabis sativa L. and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more than 0.3 percent on a dry weight basis.

439-A:3  Industrial Hemp Permitted.  Industrial hemp is an agricultural product which may be grown as a crop, processed, possessed, and commercially traded in New Hampshire.  Any grower, processor, or commercial trader of industrial hemp shall be licensed by the United States Department of Agriculture.

439-A:4  Industrial Hemp; Use in Food.  In order for food to contain industrial hemp, the manufacturer of the food shall demonstrate the following to the commissioner:

I.  All parts of the hemp plant utilized in food shall come from a state that has an established and approved industrial hemp program or a country that inspects or regulates hemp under a food safety program or equivalent criteria to ensure safety for human consumption.

II.  The industrial hemp producer shall be in good standing and compliance with the governing laws within the state or country of the industrial hemp’s origin.

III.  The industrial hemp shall conform to the standard of identity established above no more than .3 percent THC.

IV.  The use of other parts of the industrial hemp plant other than seed and its derivatives: seed meal, flour, and oil, shall have lab test results indicating the levels of THC within the derivatives are not above the allowable limit of .3 percent THC.

V.  The product shall be labeled in conformity with state and federal labeling laws, including:

(a)  Clearly identify industrial hemp as an ingredient.

(b)  Clearly identify CBD and the amount of CBD if added as an isolate.

(c)  Include the statement “THE FDA HAS NOT EVALUATED THIS PRODUCT FOR SAFETY OR EFFICACY.”

(d)  Shall not contain any health or benefit claims.

VI.  The producer shall document that the finished product does not contain more than .3 THC.

3  Controlled Drug Act; Marijuana; Industrial Hemp Exception.  Amend RSA 318-B:2-c, I(a) to read as follows:

(a)  "Marijuana" includes the leaves, stems, flowers, and seeds of all species of the plant genus cannabis, but shall not include the resin extracted from any part of such plant and every compound, manufacture, salt, derivative, mixture, or preparation from such resin including hashish, and further, shall not include the mature stalks of such plant, fiber [produced] processed from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks, fiber, oil or cake, or the sterilized seed of such plant which is incapable of germination.  Marijuana shall not include industrial hemp grown, processed, marketed, or sold under RSA 439-A.  

4  Therapeutic Cannabis; Industrial Hemp Excepted.  Amend 126-X:1, III to read as follows:

III.  "Cannabis" means all parts of any plant of the Cannabis genus of plants, whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, salt, derivative, mixture, or preparation of such plant, its seeds, or resin.  Such term shall not include the mature stalks of such plants, fiber produced from such stalks, oil, or cake made from the seeds of such plants, any other compound, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil or cake, or the sterilized seeds of such plants which are incapable of germination.  In this chapter, cannabis shall not include industrial hemp grown, processed, marketed, or sold under RSA 439-A.

5  Committee Established.  There is established a committee to study the administrative mechanisms for permitting growing hemp in New Hampshire consistent with the federal Agricultural Improvement Act of 2018 and determining labeling requirements for hemp products sold in New Hampshire.

6  Membership and Compensation.

I.  The members of the committee shall be as follows:

(a)  Three members of the house of representatives, appointed by the speaker of the house of representatives.

(b)  One member of the senate, appointed by the president of the senate.

II.  Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

7  Duties.  The committee shall:

I.  Review the statutes relating to hemp in the Agricultural Improvement Act of 2018 and the United States Department of Agriculture rules and guidelines for states choosing to license the growing, processing, marketing, and sale of hemp and hemp products.

II.  Determine whether it is preferable for the state of New Hampshire to establish a state level oversight program for hemp within the department of agriculture, markets, and food or to request the federal government to oversee hemp production in New Hampshire.

III.  Determine labeling requirements for hemp products in New Hampshire, and in particular, those products that may be intended for human consumption or for application to human skin and further, determine what department would be charged with oversight of labeling, and determine enforcement policies.

8  Chairperson; Quorum.  The members of the study committee shall elect a chairperson from among the members.  The first meeting of the committee shall be called by the first-named house member.  The first meeting of the committee shall be held within 45 days of the effective date of this section.  Three members of the committee shall constitute a quorum.

9  Report.  The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2019.

10  Effective Date.  This act shall take effect upon its passage.

 

LBAO

19-0278

1/8/19

 

HB 459-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing an industrial hemp pilot program.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$342,111

$401,828

$418,360

$439,682

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Registration Fees

 

 

 

 

 

METHODOLOGY:

This bill establishes an industrial hemp pilot program, gives the Commission of the Department of Agriculture, Markets and Food authority to make rules regarding registration of hemp growers, and exempts industrial hemp from the definitions of marijuana and cannabis in other parts of the law.  The Department makes the following assumptions concerning the fiscal impact of this bill.  The Department would:

  • Review and process registrations for growing and processing hemp.
  • Conduct periodic inspection of hemp facilities.
  • Consider assessing an annual fee of $25 for hemp facilities.
  • Review manufacturer statements and labels for hemp use for food.
  • The Department's Division of Regulatory Services inspects and provides technical assistance to certain agricultural activities and it would administer the hemp program.
  • The Division of Pesticide Control would revise its program to include a hemp pesticide license and conduct hemp facility investigations.
  • Based on information from other states, there would be between 30 in the first year to  425 hemp registrations after 3 years.
  • Five additional staff would be needed, and one existing position would be upgraded, to perform the duties associated with the bill.  Additional associated costs would include 3 vehicles, five computers, inspection equipment and office space and furnishings.  The estimated additional expenditures would be $466,000 in FY 2020, $411,000 in FY 2021, $431,000 in FY 2022 and $450,000 in FY 2023.
  • Based on the estimated number of registrations, the revenue generated would be between $750 in the first year and as high as $10,625 by the third year.

 

AGENCIES CONTACTED:

Department of Agriculture, Markets, and Food

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Environment and Agriculture HJ 3 P. 15
Feb. 26, 2019 Public Hearing: 02/26/2019 10:00 am LOB 203
March 5, 2019 Executive Session: 03/05/2019 10:30 am LOB 303
March 19, 2019 Committee Report: Ought to Pass with Amendment # 2019-0790h (NT) for 03/19/2019 (Vote 20-0; CC) HC 16 P. 8
Committee Report: Ought to Pass with Amendment # 2019-0790h (NT) (Vote 20-0; CC)
March 19, 2019 Amendment # 2019-0790h (NT): AA VV 03/19/2019
March 19, 2019 Ought to Pass with Amendment 2019-0790h (NT): MA VV 03/19/2019

Action Dates

Date Body Type
Feb. 26, 2019 House Hearing
March 5, 2019 House Exec Session
House Floor Vote
March 19, 2019 House Floor Vote

Bill Text Revisions

HB459 Revision: 4671 Date: Jan. 10, 2019, 3:09 p.m.
HB459 Revision: 5582 Date: March 19, 2019, 1:49 p.m.