Bill Text: NH HB459 | 2019 | Regular Session | Introduced


Bill Title: Establishing an industrial hemp pilot program.

Spectrum: Bipartisan Bill

Status: (Introduced) 2019-01-10 - Introduced 01/03/2019 and referred to Environment and Agriculture [HB459 Detail]

Download: New_Hampshire-2019-HB459-Introduced.html

HB 459-FN - AS INTRODUCED

 

 

2019 SESSION

19-0278

08/10

 

HOUSE BILL 459-FN

 

AN ACT establishing an industrial hemp pilot program.

 

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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ANALYSIS

 

This bill:

 

I.  Establishes an industrial hemp pilot program.

 

II.  Gives the commissioner of the department of agriculture, markets, and food authority to make rules regarding the registration of industrial hemp growers.

 

III.  Exempts industrial hemp from definitions of marijuana and cannabis in other parts of the law.

 

IV.  This bill is a request of the committee established in 2018, 17:1 to study the feasibility of registering industrial hemp growers.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0278

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT establishing an industrial hemp pilot program.

 

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 establish policy and procedures for growing industrial hemp in new Hampshire so that farmers and other businesses in the New Hampshire agricultural industry can take advantage of this market opportunity.

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, produced, possessed, and commercially traded in New Hampshire pursuant to the provisions of this chapter.

439-A:4  Registration; Administration.

I.  A person who intends to grow, transport, or process industrial hemp shall register with the commissioner and submit on a form provided by the commissioner the following:

(a)  The name and address of the person;

(b)  For growers: a statement that the seeds obtained for planting are of a type and variety that do not exceed the maximum concentration of tetrahydrocannabinol set forth in this chapter; and

(c)  The location and acreage of all parcels sown and other field reference information as may be required by the commissioner.

II.  A person who intends to process industrial hemp shall register with the commissioner and submit on a form provided by the commissioner the following:

(a)  The name and address of the person; and

(b)  The location of the processing facility.

III.  A person registered with the commissioner pursuant to this section shall allow hemp crops, throughout sowing, growing season, harvest, storage, and processing, to be inspected and tested by and at the discretion of the commissioner, or his or her designee.  Unless a complaint has been lodged no more than 2 inspections shall be performed in a growing season.

IV.  If the crop inspected exceeds the 0.3 percent THC limit, the producer may request one retest.  If all testing indicates that the 0.3 percent THC limit has been exceeded, the commissioner shall order that the crop be destroyed.  If the THC content meets or exceeds 1 percent the case may be referred to law enforcement.  Testing that indicates that the 0.3 THC limit has been exceeded but is less than 1 percent, the commissioner shall order that the crop be destroyed but shall not refer the case to law enforcement.  

V.  The commissioner may assess an registration fee of $25 for the performance of his or her duties under this chapter.  Registration shall be valid for 3 years.

VI.  Growers of industrial hemp shall submit an annual report to the department on forms supplied by the commissioner.

VII.  Growing or processing industrial hemp without a valid registration under this chapter shall be a violation.

439-A:5  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 conformance 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

439-A:6  Rulemaking.  

I.  The commissioner shall adopt rules to provide for the implementation of this chapter, relative to:

(a)  Requirements that hemp to be tested during growth for THC levels.

(b)  Requirements for inspection and supervision of hemp during sowing, growing season, harvest, storage, and processing.  

(c)  The content of annual reports submitted by industrial hemp growers.

II.  The commissioner shall not adopt under this or any other section a rule that would prohibit a person to grow hemp based on the legal status of hemp under federal law.

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 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 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 under RSA 439-A.

5  Effective Date.  This act shall take effect January 1, 2020.

 

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

 

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