HB1581 (2020) Detail

Relative to the labeling and sale of hemp products containing CBD.


HB 1581-FN - AS INTRODUCED

 

 

2020 SESSION

20-2374

08/01

 

HOUSE BILL 1581-FN

 

AN ACT relative to the labeling and sale of hemp products containing CBD.

 

SPONSORS: Rep. Knirk, Carr. 3; Rep. Bixby, Straf. 17; Rep. Muscatel, Graf. 12; Rep. Pearl, Merr. 26; Rep. Marsh, Carr. 8

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill:

 

I.  Allows for the sale of products containing CBD derived from hemp.

 

II.  Requires products containing CBD derived from hemp to be registered annually by the manufacturer.

 

III.  Creates a position in the department of agriculture, markets, and food to perform inspections relative to registered products containing CBD derived from 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2374

08/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to the labeling and sale of hemp products containing CBD.

 

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

 

1  New Subdivision; Products Containing Hemp.  Amend RSA 146 by inserting after section 21 the following new subdivision:

Products Containing Hemp or Hemp Products

146:22  Products; Hemp.

I.  In this section, “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 (THC) of not more than 0.3 percent on a dry weight basis.

II.  Notwithstanding any other provision of law to the contrary, food, food additives, or food products that contain hemp, including cannabidiol (CBD) derived from hemp, shall not be considered adulterated or misbranded solely on the inclusion of hemp or CBD derived from hemp.  The nonpharmaceutical or nonmedical production, marketing, sale, or distribution of food, food additives, or food products within this state that contain hemp or CBD shall not be prohibited within this state based solely on the inclusion of hemp or CBD.  No person shall make a claim that products that contain hemp or CBD derived from hemp can diagnose, treat, cure, or prevent any disease, condition or injury without the approval of the federal Food and Drug Administration pursuant to federal law.

III.  Any product containing CBD derived from hemp offered for sale in New Hampshire shall be manufactured in New Hampshire.  In this subdivision, "manufactured" means the addition of CBD derived from hemp to any product shall take place in New Hampshire.

146:23  Testing of Products.

I.  Any product containing CBD derived from hemp offered for sale shall have testing done by a third party laboratory which produces a certificate of analysis listing the CBD content, THC content, the presence and content of pesticides, heavy metals, residual solvent, mold, bacteria, and yeast.  Such certificate of analysis shall be displayed on the label of the product offered for sale or be traceable to the certificate of analysis in such a manner that the consumer may retrieve the certificate of analysis.  

II.  Any laboratory offering testing of products containing CBD derived from hemp shall be certified by the department of agriculture, markets, and food according to rules adopted by the commissioner of the department under RSA 541-A.

146:24  Products; Labeling.  All products containing CBD derived from hemp shall be labeled with the following:

I.  If an oral tincture, pill, or capsule the amount of milligrams of CBD per milliliter.

II.  If any other product, the serving size and the contents of CBD in milligrams per serving size or if there is no serving size the contents of CBD in milligrams per millimeter.

III.  A warning that CBD should not be used during pregnancy.

IV.  An explanation that the product is derived from hemp and may contain THC.

V.  A warning that the consumer ought to consult with a medical provider if he or she is taking any other medication.

VI.  A warning to keep such products out of the reach of children.

VII.  The process lot number.

VIII.  The manufacturing date of the product.

IX.  A list of all ingredients in descending predominance by weight if the ingredient represents at least 0.05 percent of the content of the product.  

146:25  Registration.  Any product with CBD derived from hemp shall be registered by its manufacturer with the commissioner of the department of agriculture, markets, and food prior to selling any such products.  Applications for registration or re-registration shall be in writing, under oath, in a form prescribed by the commissioner of the department of agriculture markets, and food, and shall be accompanied by a fee of $75.  Each product registration is valid for one year and may be renewed for additional one-year periods upon application and payment of the fee.

146:26  Rulemaking.  The commissioner of the department of agriculture, markets, and food shall, in consultation with the commissioner of the department of health and human services, adopt rules under RSA 541-A relative to:

I.  Application procedures for obtaining a registration under this subdivision.

II.  Qualifications of applicants in addition to those set forth in this subdivision.

III.  Procedures for renewal of registration.

IV.  Collection of fees to cover the costs of administering this subdivision.

V.  Establishment of administrative penalties and fines for violations of this subdivision.

2  Part-Time Inspector; Position Authorized.  In order to facilitate the state's enforcement of the registration of products containing CBD derived from hemp, the department of agriculture, markets and food is authorized to hire a part-time inspector from the funds collected in RSA 146:25.

3  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

20-2374

11/25/19

 

HB 1581-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the labeling and sale of hemp products containing CBD.

 

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

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Registration fee revenue

 

 

 

 

 

METHODOLOGY:

This bill would allow the sale of products containing CBD derived from hemp and would require such products to be registered annually with the Department of Agriculture by the manufacturer.  The bill creates a part-time position in the Department of Agriculture, Markets and Food to perform inspections relative to registered products containing CBD derived from hemp.  The bill does not contain an appropriation for the part-time position.

 

The Department of Agriculture, Markets and Food indicates its responsibilities under the bill would include:

  • Certification of  laboratories offering testing of products containing CBD derived from hemp.
  • The review of products labels for compliance with the labeling requirements.
  • Review and processing of applications to register CBD products.
  • Assessment of the annual registration fee of $75 and creation and maintenance of a registration database.
  • Inspections relative to registered products containing CBD.
  • Enforcement activities related to the sale of CBD products without a valid registration.
  • Promulgation of rules in consultation with the Department of Health and Human Services.

The Department's Division of Regulatory Services has a registration program for various agricultural products.  The Divisions staff are experienced in implementing registration requirements including reviewing product labels, inspecting retail outlets and enforcing compliance.  The Department assumes it would incur the following personnel costs to fulfill its responsibilities under this bill:

Personnel Costs

FY 2021

FY 2022

FY 2023

Upgrade existing Supervisor IV position to Administrator I

$3,000

$3,000

$7,000

New Program Specialist III

$76,000

$79,000

$83,000

2 New Agricultural Inspectors

$130,000

$136,000

$136,000

New Program Assistant

$56,000

$58,000

$61,000

Total Personnel

$265,000

$276,000

$293,000

 

In addition to the staff costs, the Department indicates it would need to purchase 2 vehicles and 4 computers and workstations.  The Department states it has no space available and would need to acquire office space for the additional staff.  The Department does not currently have information on these costs.

 

It is assumed this bill will not take effect until FY 2021.

 

AGENCIES CONTACTED:

Department of Agriculture, Markets and Food

 

Links

HB1581 at GenCourtMobile
HB1581 Discussion

Action Dates

Date Body Type
Feb. 12, 2020 House Hearing
March 3, 2020 House Exec Session

Bill Text Revisions

HB1581 Revision: 7224 Date: Dec. 3, 2019, 11:51 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Commerce and Consumer Affairs HJ 1 P. 27
Feb. 12, 2020 Public Hearing: 02/12/2020 01:30 pm LOB 302
Feb. 21, 2020 Subcommittee Work Session: 02/21/2020 10:00 am LOB 302
March 3, 2020 Executive Session: 03/03/2020 10:30 am LOB 302
Committee Report: Refer for Interim Study (Vote 19-0; CC)
March 11, 2020 Committee Report: Refer for Interim Study for 03/11/2020 (Vote 19-0; CC) HC 10 P. 7
March 11, 2020 Refer for Interim Study: MA VV 03/11/2020