Revision: Dec. 16, 2019, 10:13 a.m.
HB 1658-FN - AS INTRODUCED
2020 SESSION
20-2373
08/10
HOUSE BILL 1658-FN
AN ACT establishing a registration program for growers and producers of hemp and hemp products.
SPONSORS: Rep. Bixby, Straf. 17; Rep. Pearl, Merr. 26; Rep. Knirk, Carr. 3; Rep. Aron, Sull. 7
COMMITTEE: Environment and Agriculture
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ANALYSIS
This bill establishes a registration program for growers and producers of hemp and hemp products.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20-2373
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
AN ACT establishing a registration program for growers and producers of hemp and hemp products.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Hemp. RSA 439-A is repealed and reenacted to read as follows:
CHAPTER 439-A
HEMP
439-A:1 Definitions. In this chapter:
I. “Commissioner” means the commissioner of the department of agriculture, markets, and food.
II. “Department” means the department of agriculture, markets, and food.
III. “Grow” means producing, planting, cultivating, harvesting or drying of hemp; and selling, storing, and transporting hemp grown by a grower.
IV. “Grower” means a person who is registered with the department to grow hemp.
V. “Hemp products” or “hemp-infused products” means all products with the federally defined tetrahydrocannabinol concentration level for hemp derived from or made by processing hemp plants or plant parts that are prepared in a form available for commercial sale, including cosmetics, personal care products, food intended for animal or human consumption, cloth cordage, fiber, fuel, paint, paper, construction materials, plastics, and any product containing one or more hemp-derived cannabinoids such as cannabidiol.
VI. “Hemp” means the plant Cannabis sativa L and any part of the plant, including the seeds and all derivatives, extracts, cannabinoids, acids, salts, isomers, and salts of isomers, whether growing or not, with the federally defined tetrahydrocannabinol concentration level of hemp. Hemp shall be considered an agricultural commodity.
VII. “Process” means the storing, drying, trimming, handling, compounding, or converting of a hemp crop by a processor for a single grower or multiple growers into hemp products or hemp-infused products. “Process” includes transporting, aggregating, or packaging hemp from a single grower or multiple growers.
VIII. “Processor” means a person who is registered with the department to process hemp. A retail establishment selling hemp products or hemp-infused products is not a processor.
439-A:2 Hemp; Agricultural Product. Hemp is an agricultural product that may be grown as a crop produced, possessed, marketed, and commercially traded in New Hampshire pursuant to the provisions of this chapter and section 10113 of the Agriculture Improvement Act of 2018, P.L. No. 115-334. The growing of hemp shall be subject to and shall comply with the required agricultural practices adopted in this chapter.
439-A:3 State Hemp Program; Administration.
I. The commissioner shall establish and administer a state hemp program to regulate the growing, processing, testing, and marketing of industrial hemp and hemp products in the state.
II.(a) A person shall register annually with the secretary as part of the state hemp program in order to grow, process, or test hemp or hemp products in the state. A person shall apply for a registration or renew a registration on forms provided by the department. The application for registration or renewal of registration shall include:
(1) The name and address of the person applying for or renewing a registration.
(2) Whether the person is applying to grow, process, or test hemp or hemp products.
(3) For a person applying for registration as a grower:
(A) The location and acreage of all parcels where hemp will be grown;
(B) A statement that the seeds obtained for planting are of a type and variety that do not exceed the federally defined tetrahydrocannabinol concentration level of hemp;
(4) For a person applying for a registration as a processor, the location of the processing site.
(5) For a person applying to test hemp or hemp products, the location of the site where testing will occur, and any proof of certification required by the commissioner; and
(6) Any other information the commissioner deems necessary.
(b) The commissioner may verify the information provided in the application or renewal form and on any maps accompanying the application for renewal form and any request additional information in order to perform a review of an application for initial registration or renewal of a registration.
III. The commissioner may deny an application for initial registration or renewal of a registration if the applicant:
(a) Does not provide all information requested on the initial application or renewal of registration form;
(b) Fails to submit the required fee;
(c) Fails to submit any additional information requested by the commissioner under paragraph II;
(d) Does not, as determined by the commissioner, satisfy the requirements of section 10113 of the Agriculture Improvement Act of 2018, Pub. L. 115-334 for participation in the program.
IV. A person registered under this section may purchase or import hemp genetic material from any state that complies with the federal requirements for the cultivation of hemp.
V. A person registered under this section shall allow the commissioner to inspect any hemp crops, processing sites, or laboratories registered under this program. The commissioner shall retain tests and inspection information collected under this section in order to research the growth and cultivation of hemp.
VI. The name and general location of a person registered under this section shall be available for inspection and copying under RSA 91-A provided that all records produced or acquired by the department related to the location of parcels where hemp will be grown, including coordinates, maps, and parcel identifiers shall be confidential and shall not be disclosed for inspection and copying under RSA 91-A.
439-A:4 Rulemaking.
I. The commissioner shall adopt rules relative to the implementation of this chapter including:
(a) Requiring hemp to be tested during growth for tetrahydrocannabinol levels;
(b) Authorizing methods of testing hemp, including the ration of cannabidiol to tetrahydrocannabinol levels or a taxonomic determination using genetic testing;
(c) Requiring inspection and supervision of hemp during sowing, growing, season, harvest, storage, and processing; and
(d) Requiring labels or label information for hemp products in order to provide consumers with product content or source information or to conform with federal requirements.
(e) Establishing how the department will conduct research within the program to study the hemp industry.
(f) Establishing requirements for the registration of processors of hemp and hemp-infused products.
439-A:5 Departmental Testing. The department shall establish a cannabis quality control program to:
I. Develop potency and contaminant testing protocols for hemp and hemp-infused products;
II. Verify cannabinoid label guarantees of hemp and hemp-infused products;
III. Testing for pesticides, solvents, heavy metals, mycotoxins, and bacterial and fungal contaminants in hemp and hemp-infused products; and
IV. Certifying testing laboratories that offer testing services for potency, contaminants, pesticides, solvents, heavy metals, mycotoxins, bacteria, and fungi.
439-A:6 Test Results; Enforcement.
I. If the commissioner tests a hemp crop of a person registered with the commissioner as a hemp grower and the hemp has a delta-9 tetrahydrocannabinol concentration of more than 0.3 percent on a dry weight basis, such person shall:
(a) Sell the hemp crop to a dispensary registered under RSA 126-X.
(b) Arrange for the secretary to destroy or order the destruction of the crop.
II. To enforce this chapter, the commissioner may:
(a) Enter upon any premises where hemp is grown or processed and inspect premises, machinery, equipment and facilities, any crop during any growth phase, or any hemp product or hemp-infused product during processing or storage. Inspection under this section may include the taking of samples, inspection of records, and inspection of equipment or vehicles used in the growing, processing, or transport of hemp crops, hemp products, or hemp-infused products.
(b) Inspect any retail location offering hemp products or hemp-infused products. Inspection under this section may include the taking of samples of such products.
(c) Issue and enforce a written or printed “stop sale” order to the owner or custodian of any hemp crop, hemp product, or hemp-infused product subject to the requirements of this chapter or rules adopted under this chapter that the commissioner finds in violation of any of the provisions of this chapter or rules adopted under this chapter. An order shall prohibit further sale, processing, and movement of the hemp crop, hemp product, or hemp-infused product until the commissioner has approved and issued a release from the stop sale order.
III. A crop or product confirmed by the commissioner to meet the definition of hemp under state or federal law may be sold or transferred in interstate commerce to the extent authorized by federal law.
439-A:7 Administrative Penalties.
I. Except for violations set forth under paragraph II, the commissioner may assess an administrative penalty not to exceed $1,000 per violation for any violation of this chapter or rules adopted under this chapter including:
(a) Failure to provide the location of the land on which the grower grows hemp crops or the processor processes hemp crops into hemp products or hemp-infused products; or
(b) Failing to obtain a registration in accordance with this chapter.
II. The commissioner may assess an administrative penalty not to exceed $5,000 per violation in any case in which the commissioner determines that a grower or processor:
(a) Failed to follow a corrective action plan to correct a negligent violation;
(b) Has grown or processed hemp in violation of the requirements of this chapter or the rules adopted under this chapter 3 times in a 5-year period; or
(c) Has produced hemp in violation of the requirements of this chapter or the rules adopted under this chapter with a culpable mental state greater than negligence.
III. In determining the amount of the penalty assessed under this section, the commissioner may give consideration to the appropriateness of the penalty with respect to the size of the business being assessed, the gravity of the violation, the good faith of the person alleged to be in violation, and the overall compliance history of the person alleged to be in violation.
IV. The commissioner shall use the following procedures in assessing penalties:
(a) The commissioner shall issue a written notice of violation setting forth facts that would establish probable cause that a violation of this chapter or the rules adopted under this chapter has occurred.
(c) Such notice shall comply with all of the following:
(1) The notice shall be served by personal service or by certified mail, return receipt.
(2) The notice shall advice the recipient of the right to a hearing. If a hearing is requested the hearing shall be conducted pursuant to RSA 541-A.
(3) The notice shall state the proposed penalty and shall advise the recipient that if no hearing is requested, the decision of the commission shall become final and a penalty shall be imposed.
(4) The notice shall advise the recipient that they shall have 15 days from the date on which notice is received to request a hearing.
V. Any party aggrieved by a final decision of the commissioner may appeal to a superior court within 30 days of the final decision of the commissioner.
439-A:8 Registration Fees.
I. A person applying for an initial registration or renewal of registration under this chapter shall annually pay the following fees:
(a) A registration to grow less than 0.5 acres of hemp for personal use:
(1) Initial application fee $25.
(2) Annual Registration fee $25.
(b) A registration to grow or process hemp seed for food oil production, grain crop, fiber, or textile:
(1) Initial application fee $100.
(2) Annual registration fee $100.
(c) Except as provided for in subparagraph (d) for a registration to grow hemp commercially for floral material production, viable seed, or cannabinoids, including cannabidiolic acid (CBDA), cannabidiol (CBD), cannabinol (CBN), cannabigerol (CBG), cannabichromene (CBC), or tetrahydrocannabivarin (THCV):
(1) Initial application fee $100.
(2) Annual registration fee $500 plus $50 per acre planted.
(d) For a registration to operate exclusively within an indoor facility in order to grow hemp commercially for floral material production, viable seed, or cannabinoids, including cannabidiolic acid (CBDA), cannabidiol (CBD), cannabinol (CBN), cannabigerol (CBG), cannabichromene (CBC), or tetrahydrocannabivarin (THCV):
(1) Initial application fee $100.
(2) Annual registration fee $500 plus:
(A) For a facility with an area of 500 square feet or less: $1,000; and
(B) For a facility with an area greater than 500 square feet: $2,000.
(e) For a registration to process hemp commercially for cannabinoids, including cannabidiolic acid (CBDA), cannabidiol (CBD), cannabinol (CBN), cannabigerol (CBG), cannabichromene (CBC), or tetrahydrocannabivarin (THCV):
(1) Application fee $100.
(2) Annual registration fee $500 plus the following based on pounds of floral material processed annually:
(A) Less than 500 pounds $100.
(B) Greater than 500 pounds but less than 10,000 pounds $500.
(C) Greater than 10,000 pounds but less than 50,000 pounds $1,000.
(D) Greater than 50,000 pounds $3,000.
(f) A person who both grows and processes will pay a single registration fee equal to the greater of the fee determined under subparagraphs (d), (e), and (f).
(g) For an initial application or renewal of registration as a laboratory certified to conduct testing of hemp and hemp products: $1,500.
II. A person registered to grow, process, or grow and process hemp for floral material production, viable seed, or cannabinoids shall not grow more acres of hemp per year than the amount identified in a registration without first notifying the commissioner and paying an additional registration fee if necessary under paragraph I.
III. Registration shall be valid for one year from the date of issuance.
IV. The registration fees collected under this section shall be deposited in the state hemp program fund established in RSA 439-A:9 and shall be used for the administration of the requirements of this chapter.
439-A:9 State Hemp Program Fund. There is established the state hemp program fund which shall be nonlapsing and continually appropriated to the department of agriculture, markets, and food. The fund shall be used to administer and enforce the state hemp program in this chapter.
2 New Subparagraph; Application of Receipts; State Hemp Program Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (358) the following new subparagraph:
(359) Moneys deposited in the state hemp program fund established in RSA 439-A:9.
3 Effective Date. This act shall take effect July 1, 2020.
20-2373
12/13/19
HB 1658-FN- FISCAL NOTE
AS INTRODUCED
AN ACT establishing a registration program for growers and producers of hemp and hemp products.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| 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 | Approximately $426,000 | Approximately $354,000 | Approximately $375,000 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - State Hemp Program Fund | |||
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METHODOLOGY:
This bill establishes a registration program for growers and producers of hemp and hemp products. The Department of Agriculture, Markets and Food indicates the hemp program would be established in the Division of Regulatory Services. The Division of Pesticide Control would revise its program to include a hemp pesticide license and conduct hemp facility investigations. Based on information from Vermont and Massachusetts, the Department expects there would be between 30 and 300 hemp registrations within the first 3 years. The Department developed the following estimate of costs to fulfill its responsibilities under the bill:
Additional Staff Salary and Benefit Costs | FY 2021 | FY 2022 | FY 2023 |
Upgrade Existing Program Specialist IV (LG 25) to Administrator I (LG27) | $3,000 | $3,000 | $7,000 |
Program Specialist II (LG23) | $76,000 | $79,000 | $83,000 |
Program Specialist II (LG23) | $76,000 | $79,000 | $83,000 |
Agricultural Inspector (LG18) | $65,000 | $68,000 | $71,000 |
Environmentalist III (LG23) | $76,000 | $79,000 | $83,000 |
Total Salaries and Benefits: | $296,000 | $308,000 | $327,000 |
Other Expense; Office space. Computers inspection equipment, current expenses and travel | $130,000 | $46,000 | $48,000 |
TOTAL: | $426,000 | $354,000 | $375,000 |
The Department indicates the fiscal impact on State revenue cannot be determined because it does not have information on the type or size of hemp producers or growers that would register with the State or the number of administrative penalties that might be assessed.
AGENCIES CONTACTED:
Department of Agriculture, Markets and Food