‘‘Subtitle G—Hemp Production

‘‘SEC. 297A. DEFINITIONS.

‘‘In this subtitle:

‘‘(1) HEMP.—The term ‘hemp’ means the plant Cannabis

sativa L. and any part of that 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 of not more than

0.3 percent on a dry weight basis.

‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning

given the term in section 4 of the Indian Self-Determination

and Education Assistance Act (25 U.S.C. 5304).

‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary

of Agriculture.

‘‘(4) STATE.—The term ‘State’ means—

V ‘‘(A) a State;

 ‘‘(B) the District of Columbia;

 ‘‘(C) the Commonwealth of Puerto Rico; and

 ‘‘(D) any other territory or possession of the United

States.

‘‘(5) STATE DEPARTMENT OF AGRICULTURE.—The term ‘State

department of agriculture’ means the agency, commission, or

department of a State government responsible for agriculture in

the State.

‘‘(6) TRIBAL GOVERNMENT.—The term ‘Tribal government’

means the governing body of an Indian tribe.

‘‘SEC. 297B. STATE AND TRIBAL PLANS.

‘‘(a) SUBMISSION.—

 ‘‘(1) IN GENERAL.—A State or Indian tribe desiring to have

primary regulatory authority over the production of hemp in the

State or territory of the Indian tribe shall submit to the Secretary,

through the State department of agriculture (in consultation

with the Governor and chief law enforcement officer of

the State) or the Tribal government, as applicable, a plan under

which the State or Indian tribe monitors and regulates that

production as described in paragraph (2).

 ‘‘(2) CONTENTS.—A State or Tribal plan referred to in paragraph

(1)—

 ‘‘(A) shall only be required to include—

‘‘(i) a practice to maintain relevant information regarding

land on which hemp is produced in the State

or territory of the Indian tribe, including a legal description

of the land, for a period of not less than 3 calendar

years;

‘‘(ii) a procedure for testing, using postdecarboxylation

or other similarly reliable methods,

delta-9 tetrahydrocannabinol concentration levels of
hemp produced in the State or territory of the Indian

tribe;

‘‘(iii) a procedure for the effective disposal of—

 ‘‘(I) plants, whether growing or not, that are

produced in violation of this subtitle; and

 ‘‘(II) products derived from those plants;

‘‘(iv) a procedure to comply with the enforcement

procedures under subsection (e);

‘‘(v) a procedure for conducting annual inspections

of, at a minimum, a random sample of hemp producers

to verify that hemp is not produced in violation of this

subtitle;

‘‘(vi) a procedure for submitting the information

described in section 297C(d)(2), as applicable, to the

Secretary not more than 30 days after the date on

which the information is received; and

‘‘(vii) a certification that the State or Indian tribe

has the resources and personnel to carry out the practices

and procedures described in clauses (i) through

(vi); and

 ‘‘(B) may include any other practice or procedure established

by a State or Indian tribe, as applicable, to the extent that the practice 

or procedure is consistent with this

subtitle.

 ‘‘(3) RELATION TO STATE AND TRIBAL LAW.—

 ‘‘(A) NO PREEMPTION.—Nothing in this subsection preempts

or limits any law of a State or Indian tribe that—

‘‘(i) regulates the production of hemp; and

‘‘(ii) is more stringent than this subtitle.

 ‘‘(B) REFERENCES IN PLANS.—A State or Tribal plan referred

to in paragraph (1) may include a reference to a law

of the State or Indian tribe regulating the production of

hemp, to the extent that law is consistent with this subtitle.

‘‘(b) APPROVAL.—

 ‘‘(1) IN GENERAL.—Not later than 60 days after receipt of a

State or Tribal plan under subsection (a), the Secretary shall—

 ‘‘(A) approve the State or Tribal plan if the State or

Tribal plan complies with subsection (a); or

 ‘‘(B) disapprove the State or Tribal plan only if the

State or Tribal plan does not comply with subsection (a).

 ‘‘(2) AMENDED PLANS.—If the Secretary disapproves a State

or Tribal plan under paragraph (1)(B), the State, through the

State department of agriculture (in consultation with the Governor

and chief law enforcement officer of the State) or the Tribal

government, as applicable, may submit to the Secretary an

amended State or Tribal plan that complies with subsection (a).

 ‘‘(3) CONSULTATION.—The Secretary shall consult with the

Attorney General in carrying out this subsection.
‘‘(c) AUDIT OF STATE COMPLIANCE.—

 ‘‘(1) IN GENERAL.—The Secretary may conduct an audit of

the compliance of a State or Indian tribe with a State or Tribal

plan approved under subsection (b).

 ‘‘(2) NONCOMPLIANCE.—If the Secretary determines under

an audit conducted under paragraph (1) that a State or Indian

tribe is not materially in compliance with a State or Tribal

plan—

 ‘‘(A) the Secretary shall collaborate with the State or

Indian tribe to develop a corrective action plan in the case

of a first instance of noncompliance; and

 ‘‘(B) the Secretary may revoke approval of the State or

Tribal plan in the case of a second or subsequent instance

of noncompliance.

‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may provide technical

assistance to a State or Indian tribe in the development of a

State or Tribal plan under subsection (a).

‘‘(e) VIOLATIONS.—

 ‘‘(1) IN GENERAL.—A violation of a State or Tribal plan approved

under subsection (b) shall be subject to enforcement solely

in accordance with this subsection.

 ‘‘(2) NEGLIGENT VIOLATION.—

 ‘‘(A) IN GENERAL.—A hemp producer in a State or the

territory of an Indian tribe for which a State or Tribal plan

is approved under subsection (b) shall be subject to subparagraph

(B) of this paragraph if the State department of

agriculture or Tribal government, as applicable, determines

that the hemp producer has negligently violated the State

or Tribal plan, including by negligently—

‘‘(i) failing to provide a legal description of land on

which the producer produces hemp;

‘‘(ii) failing to obtain a license or other required

authorization from the State department of agriculture

or Tribal government, as applicable; or

‘‘(iii) producing Cannabis sativa L. with a delta-9

tetrahydrocannabinol concentration of more than 0.3

percent on a dry weight basis.

 ‘‘(B) CORRECTIVE ACTION PLAN.—A hemp producer described

in subparagraph (A) shall comply with a plan established

by the State department of agriculture or Tribal

government, as applicable, to correct the negligent violation,

including—

‘‘(i) a reasonable date by which the hemp producer

shall correct the negligent violation; and

‘‘(ii) a requirement that the hemp producer shall

periodically report to the State department of agriculture

or Tribal government, as applicable, on the

compliance of the hemp producer with the State or

Tribal plan for a period of not less than the next 2 calendar
years.

 ‘‘(C) RESULT OF NEGLIGENT VIOLATION.—A hemp producer

that negligently violates a State or Tribal plan under

subparagraph (A) shall not as a result of that violation be

subject to any criminal enforcement action by the Federal

Government or any State government, Tribal government,

or local government.

 ‘‘(D) REPEAT VIOLATIONS.—A hemp producer that negligently

violates a State or Tribal plan under subparagraph

(A) 3 times in a 5-year period shall be ineligible to produce

hemp for a period of 5 years beginning on the date of the

third violation.

 ‘‘(3) OTHER VIOLATIONS.—

 ‘‘(A) IN GENERAL.—If the State department of agriculture

or Tribal government in a State or the territory of

an Indian tribe for which a State or Tribal plan is approved

under subsection (b), as applicable, determines that

a hemp producer in the State or territory has violated the

State or Tribal plan with a culpable mental state greater

than negligence—

‘‘(i) the State department of agriculture or Tribal

government, as applicable, shall immediately report

the hemp producer to—

 ‘‘(I) the Attorney General; and

 ‘‘(II) the chief law enforcement officer of the

State or Indian tribe, as applicable; and

‘‘(ii) paragraph (1) of this subsection shall not

apply to the violation.

 ‘‘(B) FELONY.—

‘‘(i) IN GENERAL.—Except as provided in clause (ii),

any person convicted of a felony relating to a controlled

substance under State or Federal law before, on, or

after the date of enactment of this subtitle shall be ineligible,

during the 10-year period following the date of

the conviction—

 ‘‘(I) to participate in the program established

under this section or section 297C; and

 ‘‘(II) to produce hemp under any regulations or

guidelines issued under section 297D(a).

‘‘(ii) EXCEPTION.—Clause (i) shall not apply to any

person growing hemp lawfully with a license, registration,

or authorization under a pilot program authorized

by section 7606 of the Agricultural Act of 2014 (7

U.S.C. 5940) before the date of enactment of this subtitle.

 

 ‘‘(C) FALSE STATEMENT.—Any person who materially

falsifies any information contained in an application to

participate in the program established under this section

shall be ineligible to participate in that program.
‘‘(f) EFFECT.—Nothing in this section prohibits the production of

hemp in a State or the territory of an Indian tribe—

 ‘‘(1) for which a State or Tribal plan is not approved under

this section, if the production of hemp is in accordance with section

297C or other Federal laws (including regulations); and

 ‘‘(2) if the production of hemp is not otherwise prohibited

by the State or Indian tribe.

‘‘SEC. 297C. DEPARTMENT OF AGRICULTURE.

‘‘(a) DEPARTMENT OF AGRICULTURE PLAN.—

 ‘‘(1) IN GENERAL.—In the case of a State or Indian tribe for

which a State or Tribal plan is not approved under section

297B, the production of hemp in that State or the territory of

that Indian tribe shall be subject to a plan established by the

Secretary to monitor and regulate that production in accordance

with paragraph (2).

 ‘‘(2) CONTENT.—A plan established by the Secretary under

paragraph (1) shall include—

 ‘‘(A) a practice to maintain relevant information regarding

land on which hemp is produced in the State or

territory of the Indian tribe, including a legal description

of the land, for a period of not less than 3 calendar years;

 ‘‘(B) a procedure for testing, using post-decarboxylation

or other similarly reliable methods, delta-9

tetrahydrocannabinol concentration levels of hemp produced

in the State or territory of the Indian tribe;

 ‘‘(C) a procedure for the effective disposal of—

‘‘(i) plants, whether growing or not, that are produced

in violation of this subtitle; and

‘‘(ii) products derived from those plants;

 ‘‘(D) a procedure to comply with the enforcement procedures

under subsection (c)(2);

 ‘‘(E) a procedure for conducting annual inspections of,

at a minimum, a random sample of hemp producers to

verify that hemp is not produced in violation of this subtitle;

and

 ‘‘(F) such other practices or procedures as the Secretary

considers to be appropriate, to the extent that the practice

or procedure is consistent with this subtitle.

‘‘(b) LICENSING.—The Secretary shall establish a procedure to

issue licenses to hemp producers in accordance with a plan established

under subsection (a).

‘‘(c) VIOLATIONS.—

 ‘‘(1) IN GENERAL.—In the case of a State or Indian tribe for

which a State or Tribal plan is not approved under section

297B, it shall be unlawful to produce hemp in that State or the
territory of that Indian tribe without a license issued by the

Secretary under subsection (b).

 ‘‘(2) NEGLIGENT AND OTHER VIOLATIONS.—A violation of a

plan established under subsection (a) shall be subject to enforcement

in accordance with paragraphs (2) and (3) of section

297B(e), except that the Secretary shall carry out that enforcement

instead of a State department of agriculture or Tribal government.

 ‘‘(3) REPORTING TO ATTORNEY GENERAL.—In the case of a

State or Indian tribe covered by paragraph (1), the Secretary

shall report the production of hemp without a license issued by

the Secretary under subsection (b) to the Attorney General.

‘‘(d) INFORMATION SHARING FOR LAW ENFORCEMENT.—

 ‘‘(1) IN GENERAL.—The Secretary shall—

 ‘‘(A) collect the information described in paragraph (2);

And

 ‘‘(B) make the information collected under subparagraph

(A) accessible in real time to Federal, State, territorial,

and local law enforcement.

 ‘‘(2) CONTENT.—The information collected by the Secretary

under paragraph (1) shall include—

 ‘‘(A) contact information for each hemp producer in a

State or the territory of an Indian tribe for which—

‘‘(i) a State or Tribal plan is approved under section

297B(b); or

‘‘(ii) a plan is established by the Secretary under

this section;

 ‘‘(B) a legal description of the land on which hemp is

grown by each hemp producer described in subparagraph

(A); and

 ‘‘(C) for each hemp producer described in subparagraph

(A)—

‘‘(i) the status of—

 ‘‘(I) a license or other required authorization

from the State department of agriculture or Tribal

government, as applicable; or

 ‘‘(II) a license from the Secretary; and

‘‘(ii) any changes to the status.

‘‘SEC. 297D. REGULATIONS AND GUIDELINES; EFFECT ON OTHER LAW.

‘‘(a) PROMULGATION OF REGULATIONS AND GUIDELINES; REPORT.—

 ‘‘(1) REGULATIONS AND GUIDELINES.—

 ‘‘(A) IN GENERAL.—The Secretary shall promulgate regulations

and guidelines to implement this subtitle as expeditiously

as practicable.

 ‘‘(B) CONSULTATION WITH ATTORNEY GENERAL.—The

Secretary shall consult with the Attorney General on the

promulgation of regulations and guidelines under subparagraph

(A).
 ‘‘(2) REPORT.—The Secretary shall annually submit to the

Committee on Agriculture of the House of Representatives and

the Committee on Agriculture, Nutrition, and Forestry of the

Senate a report containing updates on the implementation of

this subtitle.

‘‘(b) AUTHORITY.—Subject to subsection (c)(3)(B), the Secretary

shall have sole authority to promulgate Federal regulations and

guidelines that relate to the production of hemp, including Federal

regulations and guidelines that relate to the implementation of sections

297B and 297C.

‘‘(c) EFFECT ON OTHER LAW.—Nothing in this subtitle shall affect

or modify—

 ‘‘(1) the Federal Food, Drug, and Cosmetic Act (21 U.S.C.

301 et seq.);

 ‘‘(2) section 351 of the Public Health Service Act (42 U.S.C.

262); or

 ‘‘(3) the authority of the Commissioner of Food and Drugs

and the Secretary of Health and Human Services—

 ‘‘(A) under—

‘‘(i) the Federal Food, Drug, and Cosmetic Act (21

U.S.C. 301 et seq.); or

‘‘(ii) section 351 of the Public Health Service Act

(42 U.S.C. 262); or

 ‘‘(B) to promulgate Federal regulations and guidelines

that relate to the production of hemp under the Act described

in subparagraph (A)(i) or the section described in

subparagraph (A)(ii).

‘‘SEC. 297E. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated such sums as are necessary

to carry out this subtitle.’’.

SEC. 10114. INTERSTATE COMMERCE.

(a) RULE OF CONSTRUCTION.—Nothing in this title or an

amendment made by this title prohibits the interstate commerce of

hemp (as defined in section 297A of the Agricultural Marketing Act

of 1946 (as added by section 10113)) or hemp products.

(b) TRANSPORTATION OF HEMP AND HEMP PRODUCTS.—No State

or Indian Tribe shall prohibit the transportation or shipment of

hemp or hemp products produced in accordance with subtitle G of

the Agricultural Marketing Act of 1946 (as added by section 10113)

through the State or the territory of the Indian Tribe, as applicable.

++++++++++++++++++++++++++++++++++++++++++++++++

(8) Hemp production

The Senate amendment provision amends the Agricultural

Marketing Act of 1946 to allow States to regulate hemp production

based on a state or tribal plan. The amendment requires that such
plan includes information on locations of hemp production, testing

for THC concentration, disposal of plants that are out of compliance,

and negligence or other violations of the state or tribal plan.

It requires the Secretary to establish a plan, in consultation with

the U.S. Attorney General, for States and tribes without USDA approved

plans to monitor and regulate hemp production. The section

clarifies that nothing in this subtitle affects or modifies the Federal

Food, Drug, and Cosmetic Act or authorities of the HHS Secretary

and FDA Commissioner and clarifies that nothing in this title authorizes

interference with the interstate commerce of hemp. (Sections

10111 & 10112)

The House bill contains no comparable provision.

The Conference substitute adopts the Senate provision with

amendment, including auditing authority and a grandfather clause

regarding program participation. (Sections 10113 and 10114)

In Sec. 297A, the Managers intend to clarify, within the hemp

production subtitle, that hemp is defined as the plant cannabis

sativa L, or any part of that plant, including seeds, derivatives, and

extracts, with a delta–9 tetrahydrocannabinol (THC) concentration

of not more than 0.3 percent on a dry weight basis.

In Sec. 297B, the Managers intend to authorize states and tribal

governments to submit a state plan to the Secretary for approval

to have primary regulatory authority over the growing and production

of hemp. The Managers do not intend to limit what states and

tribal governments include in their state or tribal plan, as long as

it is consistent with this subtitle. For example, states and tribal

governments are authorized to put more restrictive parameters on

the production of hemp, but are not authorized to alter the definition

of hemp or put in place policies that are less restrictive than

this title.

Within 60 days of receiving a state or tribal plan, the Secretary

must approve or deny the plan. The Secretary is required to consult

with the Attorney General regarding the approval or denial of

state plans, but the Managers intend for the final decision to be

made by the Secretary. The consultation with the Attorney General

should not alter the 60 day requirement to approve or deny a plan.

The Managers authorized the Secretary to audit state and tribal

compliance with an approved plan and take corrective action, including

revoking approval, based on a state or tribal government’s

noncompliance, as appropriate. The Managers intend to allow state

and tribal governments to appeal decisions by the Secretary pertaining

to a state or tribal plan for hemp production and do not intend

to preclude a state or tribal government from resubmitting a

new state or tribal plan for consideration at a later date. If a state

or tribal plan is denied or revoked, the Managers intend for hemp

production in that state or tribal area to fall under the Secretary’s

jurisdiction as authorized in section 297C.

The Secretary is authorized to provide technical assistance to

states and Indian tribes to aid in the development of a state or

tribal plan.

The Managers define negligent and other types of producer violations
that require enforcement under a state or tribal plan. The

Managers also set limits on who may participate in state or tribal

plans. Any person convicted of a felony relating to a controlled substance

shall be ineligible to participate under the state or tribal

plan for a 10-year period following the date of the conviction. However,

this prohibition shall not apply to producers who have been

lawfully participating in a state hemp pilot program as authorized

by the Agricultural Act of 2014, prior to enactment of this subtitle.

Subsequent felony convictions after the date of enactment of this

subtitle will trigger a 10-year nonparticipation period regardless of

whether the producer participated in the pilot program authorized

in 2014. Additionally, anyone who materially falsifies any information

in their application to participate in hemp production through

a state, tribal, or USDA plan shall be ineligible.

In Sec. 297C, the Managers intend to require the Secretary to

develop a USDA plan or plans to be implemented in states and

tribal territories that forego developing and submitting a state or

tribal hemp production plan. The Managers expect the USDA plan

or plans to meet the same content requirements as state and tribal

plans in Sec. 297B. The USDA plan may contain, as determined by

the Secretary, additional practices and procedures that are otherwise

consistent with this subtitle. It is the Managers intent that

the Secretary have discretion regarding the appropriate number of

plans, one or more than one, needed to implement Sec. 297C.

The Managers require the Secretary to collect, maintain, and

make accessible to Federal, state, territorial, and local law enforcement,

real-time information regarding the status of a license or

other authorization for all hemp producers, whether participating

under a state, tribal, or USDA plan. The Managers encourage the

Secretary to develop a memorandum of understanding with Federal

law enforcement agencies to define the parameters of this system

and to potentially share the costs of such information sharing system.

In Sec. 297D, the Managers clarify that the Secretary has the

sole authority to issue guidelines and regulations regarding the

production of hemp. However, nothing in this subtitle shall affect

or modify the authority granted to the Food and Drug Administration

and the Secretary of Health and Human Services under the

Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) or

section 351 of the Public Health Service Act (42 U.S.C. 262), including

for hemp-derived products. The Secretary is required to

consult with the Attorney General on the promulgation of regulations,

but ultimately, the regulations shall only be issued by the

Secretary of Agriculture. To ensure that the Secretary moves forward

with issuing regulations in as timely a fashion as possible,

the Secretary shall periodically report to Congress with updates regarding

implementation of this title.

While states and Indian tribes may limit the production and

sale of hemp and hemp products within their borders, the Managers,

in Sec. 10112, agreed to not allow such states and Indian

tribes to limit the transportation or shipment of hemp or hemp

products through the state or Indian territory.