Title: Hemp Farming Act of 2018
Policy area: Agriculture and Food

Summary:
Hemp Farming Act of 2018
This bill legalizes industrial hemp that has a tetrahydrocannabinol (THC, the psychoactive component of marijuana) concentration of no more than 0.3% by removing it from schedule I of the Controlled Substances Act. States and Indian tribes may regulate the production of hemp by submitting a plan to the Department of Agriculture (USDA). The bill also makes hemp producers eligible for the federal crop insurance program and certain USDA research grants.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2667 Placed on Calendar Senate (PCS)]

<DOC>





                                                       Calendar No. 380
115th CONGRESS
  2d Session
                                S. 2667

 To amend the Agricultural Marketing Act of 1946 to provide for State 
   and Tribal regulation of hemp production, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 12, 2018

   Mr. McConnell (for himself, Mr. Wyden, Mr. Merkley, and Mr. Paul) 
      introduced the following bill; which was read the first time

                             April 16, 2018

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend the Agricultural Marketing Act of 1946 to provide for State 
   and Tribal regulation of hemp production, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hemp Farming Act of 2018''.

SEC. 2. HEMP PRODUCTION.

    The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et seq.) is 
amended by adding at the end the following:

                     ``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--
                    ``(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 post-
                        decarboxylation 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 products that are produced in 
                        violation of this subtitle; and
                            ``(iv) a procedure to comply with the 
                        enforcement procedures under subsection (d); 
                        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 
                regulating the production of hemp, to the extent that 
                law is consistent with 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).
    ``(c) 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).
    ``(d) 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 violations.--
                    ``(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.--Except as 
                provided in subparagraph (D), a hemp producer that 
                negligently violates a State or Tribal plan under 
                subparagraph (A) shall not be subject to any criminal 
                or civil enforcement action by the Federal Government 
                or any State government, Tribal government, or local 
                government other than the enforcement action authorized 
                under subparagraph (B).
                    ``(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.--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--
                    ``(A) the State department of agriculture or Tribal 
                government, as applicable, shall immediately report the 
                hemp producer to--
                            ``(i) the Attorney General; and
                            ``(ii) in the case of a State department of 
                        agriculture, the chief law enforcement officer 
                        of the State; and
                    ``(B) paragraph (1) of this subsection shall not 
                apply to the violation.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    ``(f) Effect.--Nothing in this section prohibits the production of 
hemp in a State or the territory of an Indian tribe for which a State 
or Tribal plan is not approved under this section in accordance with 
other Federal laws (including regulations).

``SEC. 297C. AUTHORITY TO ISSUE REGULATIONS AND GUIDELINES.

    ``The Secretary shall have sole authority to issue Federal 
regulations and guidelines that relate to the production of hemp, 
including Federal regulations and guidelines that relate to the 
implementation of section 297B.''.

SEC. 3. FUNDING FOR HEMP RESEARCH.

    (a) Supplemental and Alternative Crops.--Section 1473D(c)(3)(E) of 
the National Agricultural Research, Extension, and Teaching Policy Act 
of 1977 (7 U.S.C. 3319d(c)(3)(E)) is amended by inserting ``(including 
hemp (as defined in section 297A of the Agricultural Marketing Act of 
1946))'' after ``material''.
    (b) Critical Agricultural Materials.--Section 5(b)(9) of the 
Critical Agricultural Materials Act (7 U.S.C. 178c(b)(9)) is amended by 
inserting ``, and including hemp (as defined in section 297A of the 
Agricultural Marketing Act of 1946)'' after ``hydrocarbon-containing 
plants''.

SEC. 4. LEGITIMACY OF INDUSTRIAL HEMP RESEARCH.

    (a) In General.--Section 7606 of the Agricultural Act of 2014 (7 
U.S.C. 5940) is amended--
            (1) by redesignating subsections (a) and (b) as subsections 
        (b) and (a), respectively, and moving the subsections so as to 
        appear in alphabetical order;
            (2) in subsection (b) (as so redesignated), in the 
        subsection heading, by striking ``In General'' and inserting 
        ``Industrial Hemp Research''; and
            (3) by adding at the end the following:
    ``(c) Study and Report.--
            ``(1) In general.--The Secretary shall conduct a study of 
        agricultural pilot programs--
                    ``(A) to determine the economic viability of the 
                domestic production and sale of industrial hemp; and
                    ``(B) that shall include a review of--
                            ``(i) each agricultural pilot program; and
                            ``(ii) any other agricultural or academic 
                        research relating to industrial hemp.
            ``(2) Report.--Not later than 120 days after the date of 
        enactment of this subsection, the Secretary shall submit to 
        Congress a report describing the results of the study conducted 
        under paragraph (1).''.
    (b) Repeal.--Effective on the date that is 1 year after the date of 
enactment of this Act, section 7606 of the Agricultural Act of 2014 (7 
U.S.C. 5940) is repealed.

SEC. 5. FEDERAL CROP INSURANCE.

    (a) Definition of Hemp.--Section 502(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1502(b)) is amended--
            (1) by redesignating paragraphs (8) through (11) as 
        paragraphs (9) through (12), respectively; and
            (2) by inserting after paragraph (7) the following:
            ``(8) Hemp.--The term `hemp' has the meaning given the term 
        in section 297A of the Agricultural Marketing Act of 1946.''.
    (b) Insurance Period.--Section 508(a)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(a)(2)) is amended by striking ``and sweet 
potatoes'' and inserting ``sweet potatoes, and hemp''.
    (c) Submission of Policies and Materials to Board.--Section 508(h) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by redesignating clauses (i) through (iii) as 
                subclauses (I) through (III), respectively, and 
                indenting appropriately;
                    (B) in the matter preceding subclause (I) (as so 
                redesignated), by striking ``The Corporation shall'' 
                and inserting the following:
                            ``(i) In general.--The Corporation shall'';
                    (C) in clause (i)(I) (as so redesignated), by 
                inserting ``subject to clause (ii),'' before ``will 
                likely''; and
                    (D) by adding at the end the following:
                            ``(ii) Waiver for hemp.--The Corporation 
                        may waive the viability and marketability 
                        requirement under clause (i)(I) in the case of 
                        a policy or pilot program relating to the 
                        production of hemp.''; and
            (2) in paragraph (3)(C)--
                    (A) in clause (ii), by striking ``and'' at the end;
                    (B) in clause (iii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iv) in the case of reviewing policies 
                        and other materials relating to the production 
                        of hemp, may waive the viability and 
                        marketability requirement under subparagraph 
                        (A)(ii)(I).''.
    (d) Agricultural Commodity.--Section 518 of the Federal Crop 
Insurance Act (7 U.S.C. 1518) is amended by inserting ``hemp,'' before 
``aquacultural species''.
    (e) Research and Development Authority.--Section 522(b) of the 
Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended--
            (1) in paragraph (2), by adding at the end the following:
                    ``(K) Waiver for hemp.--The Board may waive the 
                viability and marketability requirements under this 
                paragraph in the case of research and development 
                relating to a policy to insure the production of 
                hemp.''; and
            (2) in paragraph (3)--
                    (A) by striking ``The Corporation'' and inserting 
                the following:
                    ``(A) In general.--Subject to subparagraph (B), the 
                Corporation''; and
                    (B) by adding at the end the following:
                    ``(B) Waiver for hemp.--The Corporation may waive 
                the marketability requirement under subparagraph (A) in 
                the case of research and development relating to a 
                policy to insure the production of hemp.''.

SEC. 6. CONFORMING CHANGES TO CONTROLLED SUBSTANCES ACT.

    (a) In General.--Section 102(16) of the Controlled Substances Act 
(21 U.S.C. 802(16)) is amended--
            (1) by striking ``(16) The'' and inserting ``(16)(A) 
        Subject to subparagraph (B), the''; and
            (2) by striking ``Such term does not include the'' and 
        inserting the following:
    ``(B) The term `marihuana' does not include--
            ``(i) hemp, as defined in section 297A of the Agricultural 
        Marketing Act of 1946; or
            ``(ii) the''.
    (b) Tetrahydrocannabinol.--Schedule I, as set forth in section 
202(c) of the Controlled Substances Act (21 U.S.C. 812(c)), is amended 
in subsection (c)(17) by inserting after ``Tetrahydrocannabinols'' the 
following: ``, except for tetrahydrocannabinols in hemp (as defined 
under section 297A of the Agricultural Marketing Act of 1946)''.

SEC. 7. RULE OF CONSTRUCTION.

    Nothing in this Act authorizes interference with the interstate 
commerce of hemp (as defined in section 297A of the Agricultural 
Marketing Act of 1946, as added by section 2).
                                                       Calendar No. 380

115th CONGRESS

  2d Session

                                S. 2667

_______________________________________________________________________

                                 A BILL

 To amend the Agricultural Marketing Act of 1946 to provide for State 
   and Tribal regulation of hemp production, and for other purposes.

_______________________________________________________________________

                             April 16, 2018

            Read the second time and placed on the calendar