CS for CS for SB 1020                            First Engrossed
    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.
   45  Be It Enacted by the Legislature of the State of Florida:
   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.
  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, and any 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.