Florida Senate - 2019 CS for CS for SB 1020 By the Committees on Appropriations; and Agriculture; and Senators Bradley, Albritton, Hutson, and Bracy 576-04185-19 20191020c2 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 registration and for the 8 distribution and retail sale of hemp and hemp 9 products; providing that hemp seed and hemp seed 10 dealers are subject to the Florida Seed Law; providing 11 hemp seed certification requirements; requiring the 12 department, in consultation with the Department of 13 Health and the Department of Business and Professional 14 Regulation, to adopt specified rules within a 15 specified timeframe; directing the Commissioner of 16 Agriculture, in consultation with the Governor and 17 Attorney General, to submit a specified plan within a 18 specified timeframe to the United States Secretary of 19 Agriculture; creating an Industrial Hemp Advisory 20 Board for a specified purpose; providing that the 21 board is adjunct to the department for administrative 22 purposes; providing the membership and meetings of the 23 board; prohibiting members of the board from receiving 24 compensation; authorizing members of the board to 25 receive reimbursements for certain expenses; amending 26 s. 893.02, F.S.; revising the definition of the term 27 “cannabis” to exclude hemp and industrial hemp for 28 purposes of the Florida Comprehensive Drug Abuse 29 Prevention and Control Act; amending s. 1004.4473, 30 F.S.; revising the schools at which the department is 31 required to authorize and oversee the development of 32 industrial hemp pilot projects; authorizing 33 universities to implement industrial hemp pilot 34 projects pursuant to the state hemp program; requiring 35 the department to submit certain program and fee 36 information in its legislative budget request for the 37 2020-2021 fiscal year; providing a directive to the 38 Division of Law Revision; providing an effective date. 39 40 Be It Enacted by the Legislature of the State of Florida: 41 42 Section 1. Section 581.217, Florida Statutes, is created to 43 read: 44 581.217 State hemp program.— 45 (1) CREATION AND PURPOSE.—The state hemp program is created 46 within the department to promote the cultivation, handling, 47 processing, and sale of hemp, hemp products, and hemp extract in 48 the state. 49 (2) LEGISLATIVE FINDINGS.—The Legislature finds that: 50 (a) Hemp is an agricultural commodity. 51 (b) Hemp-derived cannabinoids, including, but not limited 52 to, cannabidiol, are not controlled substances or adulterants. 53 (c) Products containing one or more hemp-derived 54 cannabinoids, including, but not limited to, cannabidiol, 55 intended for ingestion are foods and not controlled substances 56 or adulterated products. 57 (d) The addition of hemp derivatives, including, but not 58 limited to, hemp-derived cannabidiol, to cosmetics, personal 59 care products, and products intended for human or animal 60 consumption is not an adulteration of such products. 61 (3) DEFINITIONS.—As used in this section, the term: 62 (a) “Cannabidiol” means the compound by the same name 63 derived from the hemp variety of the Cannabis sativa L. plant. 64 (b) “Cultivate” means planting, watering, growing, and 65 harvesting a hemp plant or a hemp crop. The term does not 66 include the transport of a hemp plant or a hemp crop. 67 (c) “Federally defined THC level for hemp” means a total 68 delta-9-tetrahydrocannabinol concentration that does not exceed 69 0.3 percent on a dry-weight basis, or the tetrahydrocannabinol 70 concentration for hemp defined in 7 U.S.C. s. 5940, whichever is 71 greater. 72 (d) “Handle” means possessing or storing hemp plants for 73 any period of time on premises owned, operated, or controlled by 74 a person or an entity registered to cultivate or process hemp, 75 including the possession or storage of hemp plants in a vehicle 76 for any period of time other than during the actual transport 77 from the premises of a person registered to cultivate or process 78 hemp or industrial hemp to the premises of another registered 79 person. The term does not include the possession or storage of 80 finished hemp products. 81 (e) “Hemp” means the plant Cannabis sativa L. and any part 82 of that plant, including seeds, derivatives, extracts, 83 cannabinoids, isomers, acids, salts, and salts of isomers 84 thereof, whether growing or not, that has the federally defined 85 THC level for hemp. The term includes industrial hemp as defined 86 in s. 1004.4473. 87 (f) “Hemp extract” means a no-THC or low-THC substance or 88 compound that: 89 1. Is derived from or contains any part of the plant 90 Cannabis sativa L. that meets the definition of industrial hemp 91 under s. 1004.4473; 92 2. Contains a total delta-9-tetrahydrocannabinol 93 concentration that does not exceed 0.3 percent on a dry-weight 94 basis; and 95 3. Does not contain other controlled substances. 96 (g) “Hemp products” means all products with the federally 97 defined THC level for hemp derived from or made by processing 98 hemp plants or plant parts that are prepared in a form available 99 for retail sale, including, but not limited to cosmetics, 100 personal care products, food intended for animal or human 101 consumption, cloth, cordage, fiber, fuel, paint, paper, 102 particleboard, plastics, and any product containing one or more 103 hemp-derived cannabinoids, such as cannabidiol. 104 (h) “Process” means the conversion of hemp into a 105 marketable form. 106 (4) REGISTRATION.—A person or an entity: 107 (a) Seeking to cultivate, handle, process, or sell hemp, 108 hemp products, or hemp extract must register with the department 109 and complete a background check every 2 years. The department 110 may deny an application. 111 (b) May not cultivate, handle, process, or sell hemp, hemp 112 products, or hemp extract in the state without being registered 113 with the department. 114 (c) Seeking to cultivate hemp must provide to the 115 department the legal land description and global positioning 116 coordinates of the area where hemp will be cultivated. 117 (d) Seeking to cultivate, handle, process, or sell hemp 118 must provide to the department prior written consent allowing 119 representatives of the department, the state police, and other 120 state and local law enforcement agencies to enter onto all 121 premises where hemp is cultivated, handled, or processed for the 122 purpose of conducting physical inspections and ensuring 123 compliance with the requirements of this section and department 124 rules. 125 (5) INDUSTRIAL HEMP PILOT PROJECTS.—Notwithstanding s. 126 1004.4473, an existing industrial hemp project approved by a 127 university under s. 1004.4473 is eligible to cultivate, handle, 128 and process hemp and may register with the department to 129 participate in the state hemp program. 130 (6) DISTRIBUTION AND RETAIL SALE OF HEMP AND HEMP 131 PRODUCTS.— 132 (a) The distribution and retail sale of hemp and hemp 133 products may be conducted when the hemp or the hemp used in 134 products are legally cultivated in another state or jurisdiction 135 and meet the same or substantially the same requirements for 136 cultivating, handling, and processing hemp and hemp products 137 under this section. 138 (b) Hemp and hemp products may be legally transported 139 across state lines and exported to foreign nations consistent 140 with federal laws and the laws of respective foreign nations. 141 (7) HEMP SEED.—Hemp seed and hemp seed dealers are subject 142 to chapter 578 and the rules adopted thereto. Registrants shall 143 only use seeds certified by one of the following: 144 (a) A certifying agency as defined in s. 578.011(8). 145 (b) A university conducting an industrial hemp pilot 146 project pursuant to s. 1004.4473. 147 (8) RULES.—Within 90 days after the effective date of this 148 act, the department shall, in consultation with the Department 149 of Health and the Department of Business and Professional 150 Regulation, adopt rules to administer the state hemp program. 151 The rules must ensure that the application process and 152 registration requirements are reasonable and attainable for 153 small farmers, small businesses, and private individuals. The 154 rules must provide for: 155 (a) Sampling and testing measures to ensure that hemp, hemp 156 products, and hemp extract cultivated, handled, and processed 157 under this section do not exceed the federally defined THC level 158 for hemp; 159 (b) Due process and an appeals process; 160 (c) Enforcement of this section and department rules; 161 (d) A civil penalty schedule for violations; 162 (e) A schedule of nonrefundable fees for administering the 163 program; 164 (f) Inclusion of the state hemp program in the Florida 165 Agricultural Promotional Campaign and for promotion and labeling 166 of hemp, hemp products, and hemp extract as “Fresh From 167 Florida”; and 168 (g) The regulation of the transportation of hemp and hemp 169 products in this state. 170 (9) DEPARTMENT PLAN.— 171 (a) Within 90 days after the effective date of this act, 172 the Commissioner of Agriculture, in consultation with the 173 Governor and Attorney General, shall submit to the United States 174 Secretary of Agriculture the department plan for regulating hemp 175 production. The plan must include: 176 1. A procedure for maintaining relevant information 177 regarding the locations in the state where hemp is cultivated, 178 handled, and processed for not less than 3 calendar years; 179 2. A procedure that uses post-decarboxylation or other 180 similarly reliable methods for testing delta-9 181 tetrahydrocannabinol concentration levels of hemp cultivated, 182 handled, and processed in this state; 183 3. A procedure for the effective disposal of hemp, hemp 184 products, and hemp extract cultivated, handled, and processed in 185 violation of this section and department rules; 186 4. A procedure for the enforcement of violations as 187 outlined in 7 U.S.C. s. 1639o to s. 1639s; 188 5. A procedure for conducting annual inspections of at 189 least a random sample of registrants to verify that hemp is not 190 being produced in violation of this section; 191 6. A procedure for submitting the information described in 192 7 U.S.C. s. 1639q(d)(2) to the United States Secretary of 193 Agriculture within 30 days after the date on which the 194 information is received; and 195 7. A certification that this state has the resources and 196 personnel to carry out the practices and procedures described in 197 this subsection. 198 (b) If the department plan for regulating hemp production 199 is not approved by the United States Secretary of Agriculture, 200 the Commissioner of Agriculture, in consultation with the 201 Governor and the Attorney General, shall submit an amended plan. 202 (10) INDUSTRIAL HEMP ADVISORY BOARD.—An Industrial Hemp 203 Advisory Board is created to provide advice and expertise as 204 needed by a university or the department with respect to plans, 205 policies, and procedures applicable to the administration of 206 their respective industrial hemp pilot programs. 207 (a) The Industrial Hemp Advisory Board shall be adjunct to 208 the department for administrative purposes. 209 (b) The Industrial Hemp Advisory Board shall be composed of 210 all of the following members: 211 1. Two members appointed by the commissioner. 212 2. Two members appointed by the Governor. 213 3. Two members appointed by the President of the Senate. 214 4. Two members appointed by the Speaker of the House of 215 Representatives. 216 5. The dean for research of the Institute of Food and 217 Agricultural Sciences of the University of Florida or his or her 218 designee. 219 6. The president of Florida Agricultural and Mechanical 220 University or his or her designee. 221 7. The executive director of the Department of Law 222 Enforcement or his or her designee. 223 8. The president of the Florida Sheriffs Association or his 224 or her designee. 225 9. The president of the Florida Police Chiefs Association 226 or his or her designee. 227 10. The president of the Florida Farm Bureau Federation or 228 his or her designee. 229 11. The president of the Florida Fruit and Vegetable 230 Association or his or her designee. 231 (c) The board shall elect by a two-thirds vote of the 232 members one member to serve as chair of the board. 233 (d) A majority of the members of the board shall constitute 234 a quorum. 235 (e) The board shall meet at least once annually at the call 236 of the chair. 237 (f) Board members may not receive compensation but may be 238 reimbursed for any actual travel expense incurred while 239 attending meetings of the board. 240 Section 2. Subsection (3) of section 893.02, Florida 241 Statutes, is amended to read: 242 893.02 Definitions.—The following words and phrases as used 243 in this chapter shall have the following meanings, unless the 244 context otherwise requires: 245 (3) “Cannabis” means all parts of any plant of the genus 246 Cannabis, whether growing or not; the seeds thereof; the resin 247 extracted from any part of the plant; and every compound, 248 manufacture, salt, derivative, mixture, or preparation of the 249 plant or its seeds or resin. The term does not include 250 “marijuana,” as defined in s. 381.986, if manufactured, 251 possessed, sold, purchased, delivered, distributed, or 252 dispensed, in conformance with s. 381.986; “hemp,” as defined in 253 s. 581.217(3); or “industrial hemp,” as defined in s. 254 1004.4473(1). 255 Section 3. Paragraph (a) of subsection (2) of section 256 1004.4473, Florida Statutes, is amended, and subsection (8) is 257 added to that section, to read: 258 1004.4473 Industrial hemp pilot projects.— 259 (2)(a) The department shall authorize and oversee the 260 development of industrial hemp pilot projects for the Institute 261 of Food and Agricultural Sciences at the University of Florida, 262 Florida Agricultural and Mechanical University,
andany land 263 grant university in the state that has a college of agriculture, 264 and any Florida College System institution or state university 265 that has an established agriculture or pharmacy program. The 266 department shall adopt rules as required under the Agricultural 267 Act of 2014, 7 U.S.C. s. 5940, to implement this section, 268 including rules for the certification and registration of sites 269 used for growth or cultivation. The purpose of the pilot 270 projects is to cultivate, process, test, research, create, and 271 market safe and effective commercial applications for industrial 272 hemp in the agricultural sector in this state. 273 (8) Notwithstanding this section, a university may choose 274 to implement an industrial hemp pilot project pursuant to s. 275 581.217. 276 Section 4. The Department of Agriculture and Consumer 277 Services shall include, at a minimum, all of the following 278 information for administering the state hemp program as created 279 in s. 581.217, Florida Statutes, in the department’s legislative 280 budget request for the 2020-2021 fiscal year: 281 (1) An estimate of the number of registrants for the first 282 year. 283 (2) An outline of costs associated with operation of the 284 program. 285 (3) A recommended fee schedule. 286 Section 5. The Division of Law Revision is directed to 287 replace the phrase “the effective date of this act” wherever it 288 occurs in this act with the date this act becomes a law. 289 Section 6. This act shall take effect upon becoming a law.