Source: https://www.legiscan.com/VA/text/SB1692/2019
Timestamp: 2019-05-26 17:09:58
Document Index: 522665336

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Bill Text: VA SB1692 | 2019 | Regular Session | Chaptered | LegiScan
Bill Text: VA SB1692 | 2019 | Regular Session | Chaptered
Virginia Senate Bill 1692 (Adjourned Sine Die)
VA State Legislature page for SB1692
Bill Title: Industrial hemp; federal Farm Bill.
Status: (Passed) 2019-03-21 - Governor: Acts of Assembly Chapter text (CHAP0654) [SB1692 Detail]
Download: Virginia-2019-SB1692-Chaptered.html
CHAPTER 654 An Act to amend and reenact §§3.2-4112, 3.2-4113, 3.2-4114, 3.2-4114.2, 3.2-4115, 3.2-4116, 3.2-4118, 3.2-4119, 18.2-247, 54.1-3401, as it is currently effective and as it shall become effective, 54.1-3408.3, and 54.1-3446 of the Code of Virginia and to repeal §§3.2-4114.1 and 3.2-4117 of the Code of Virginia, relating to industrial hemp. [S 1692] Approved March 21, 2019
1. That §§3.2-4112, 3.2-4113, 3.2-4114, 3.2-4114.2, 3.2-4115, 3.2-4116, 3.2-4118, 3.2-4119, 18.2-247, 54.1-3401, as it is currently effective and as it shall become effective, 54.1-3408.3, and 54.1-3446 are amended and reenacted as follows:
§3.2-4112. Definitions.
"Cannabis sativa product" means a product made from any part of the plant Cannabis sativa, including seeds thereof and any derivative, extract, cannabinoid, isomer, acid, salt, or salt of an isomer, whether growing or not, with a concentration of tetrahydrocannabinol that is greater than that allowed by federal law.
"Deal" means to buy industrial hemp grown in compliance with state or federal law and to sell such industrial hemp to a person who (i) processes industrial hemp in compliance with state or federal law or (ii) sells industrial hemp to a person who processes industrial hemp in compliance with state or federal law.
"Dealer" means any person who is registered pursuant to subsection A of §3.2-4115 to deal in industrial hemp. "Dealer" does not include (i) a grower, (ii) a processor, or (iii) any person who buys industrial hemp for personal use or retail sale in Virginia.
"Dealership" means the location at which a dealer stores or intends to store the industrial hemp in which he deals.
"Grow" means to plant, cultivate, or harvest a plant or crop.
"Grower" means any person registered pursuant to subsection A of §3.2-4115 to grow industrial hemp.
"Hemp product" means a any finished product made from that is otherwise lawful and that contains industrial hemp, including rope, building materials, automobile parts, animal bedding, animal feed, cosmetics, oil containing an industrial hemp extract, or food or food additives for human consumption.
"Higher education industrial hemp research program" means a research program established pursuant to subsection A of §3.2-4114.1.
"Industrial hemp" means all parts and varieties any part of the plant Cannabis sativa, including seeds thereof and any derivative, extract, cannabinoid, isomer, acid, salt, or salt of an isomer, whether growing or not, that contain with a concentration of tetrahydrocannabinol that is no greater than that allowed by federal law.
"Process" means to convert industrial hemp into a marketable form hemp product.
"Processor" means a person registered pursuant to subsection A of §3.2-4115 to process industrial hemp.
"Process site" means the location at which a processor processes or intends to process industrial hemp.
"Production field" means the land or area on which a grower is growing or intends to grow industrial hemp.
"Virginia industrial hemp research program" means the research program established pursuant to subsection B of §3.2-4114.1.
§3.2-4113. Production of industrial hemp lawful.
A. It is lawful for a grower or his agent to grow, a dealer or his agent to deal in, or a processor or his agent to process industrial hemp in the Commonwealth for any lawful purpose, including the manufacture of a hemp product or scientific, agricultural, or other research related to other lawful applications for industrial hemp. No grower or his agent, dealer or his agent, or processor or his agent shall be prosecuted under § 18.2-247, 18.2-248, 18.2-248.01, 18.2-248.1, 18.2-250, or 18.2-250.1 for the possession, growing, dealing, or processing of industrial hemp. In any complaint, information, or indictment, and in any action or proceeding brought for the enforcement of any provision of Article 1 (§18.2-247 et seq.) of Chapter 7 of Title 18.2 or the Drug Control Act (§54.1-3400 et seq.), it shall not be necessary to negate any exception, excuse, proviso, or exemption contained in this chapter or the Drug Control Act, and the burden of proof of any such exception, excuse, proviso, or exemption shall be on the defendant.
B. Nothing in this chapter shall be construed to authorize any person to violate any federal law or regulation. If any part of this chapter conflicts with a provision of federal law relating to industrial hemp, the federal provision shall control to the extent of the conflict.
C. No person shall be prosecuted under §18.2-247, 18.2-248, 18.2-248.01, 18.2-248.1, 18.2-250, or 18.2-250.1 for the involuntary growth of industrial hemp through the inadvertent natural spread of seeds or pollen as a result of proximity to a production field, dealership, or process site.
The Board may adopt regulations pursuant to this chapter as necessary to register persons to grow, deal in, or process industrial hemp or implement the provisions of this chapter.
§3.2-4114.2. Authority of Commissioner; notice to law enforcement; report.
A. The Commissioner may charge a nonrefundable fee not to exceed $50 for (i) any application for registration or renewal of registration allowed under this chapter and (ii). The Commissioner may charge a nonrefundable fee for the tetrahydrocannabinol testing allowed under this chapter. All fees collected by the Commissioner shall be deposited in the state treasury.
B. The Commissioner may establish a minimum size for a production field that shall qualify a person for a Virginia industrial hemp research program grower registration.
C. The Commissioner shall notify the Superintendent of State Police of the locations of all industrial hemp production fields, dealerships, and process sites.
D. C. The Commissioner shall forward a copy or appropriate electronic record of each registration issued by the Commissioner under this chapter to the chief law-enforcement officer of the county or city where industrial hemp will be grown, dealt, or processed.
E. D. The Commissioner shall be responsible for monitoring the industrial hemp grown, dealt, or processed by a person registered pursuant to subsection A of §3.2-4115 and shall provide for random testing of the industrial hemp, at the cost of the grower, dealer, or processor, for compliance with tetrahydrocannabinol limits and for other appropriate purposes established pursuant to §3.2-4114. In addition to any routine inspection and sampling, the Commissioner may inspect and sample the industrial hemp at any production field, dealership, or process site during normal business hours without advance notice if he has reason to believe a violation of this chapter is occurring or has occurred.
F. E. The Commissioner may require a grower, dealer, or processor to destroy, at the cost of the grower, dealer, or processor and in a manner approved of and verified by the Commissioner, any Cannabis sativa that the grower grows or, in which the dealer deals, or that the processor processes that has been tested and is found to have a concentration of tetrahydrocannabinol that is greater than that allowed by federal law, or any Cannabis sativa product that the processor produces.
F. Notwithstanding the provisions of subsection E, if the provisions of subdivisions 1 and 2 are included in a plan that (i) is submitted by the Department pursuant to §10113 of the federal Agriculture Improvement Act of 2018, P.L. 115-334, (ii) requires the Department to monitor and regulate the production of industrial hemp in the Commonwealth, and (iii) is approved by the U.S. Secretary of Agriculture:
1. The Commissioner may require a grower, dealer, or processor to destroy, at the cost of the grower, dealer, or processor and in a manner approved of and verified by the Commissioner, any Cannabis sativa that the grower grows, in which the dealer deals, or that the processor processes that has been tested and is found to have a concentration of tetrahydrocannabinol that is greater than 0.6 percent.
2. If such a test of Cannabis sativa indicates a concentration of tetrahydrocannabinol that is greater than 0.6 percent but less than one percent, the Commissioner shall allow the grower, dealer, or processor to request that the Cannabis sativa be sampled and tested again before he requires its destruction.
G. The Commissioner may shall advise the Attorney General of the United States and the Superintendent of State Police or the chief law-enforcement officer of the appropriate county or city when, with a culpable mental state greater than negligence, a grower grows, a dealer deals in, or a processor processes any Cannabis sativa with a concentration of tetrahydrocannabinol that is greater than that allowed by federal law or a processor produces a Cannabis sativa product.
H. The Commissioner may pursue any permits or waivers from the U.S. Drug Enforcement Administration or appropriate federal agency that he determines to be necessary for the advancement of a higher education industrial hemp research program or the Virginia industrial hemp research program industry.
I. The Commissioner may cooperatively seek funds from public and private sources to implement a higher education industrial hemp research program or the Virginia industrial hemp research program establish a corrective action plan to address a negligent violation of any provision of this chapter.
J. By December 1 of each year, the Commissioner shall report on the status and progress of any higher education industrial hemp research program and the Virginia industrial hemp research program to the Governor and to the General Assembly and shall submit such report for publication as a report document as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents and reports.
§3.2-4115. Issuance of registrations.
A. The Commissioner shall establish a registration program to allow a person to grow, deal in, or process industrial hemp in the Commonwealth in a controlled fashion solely and exclusively as part of a higher education industrial hemp research program or the Virginia industrial hemp research program.
B. Any person seeking to grow, deal in, or process industrial hemp as part of a higher education industrial hemp research program or the Virginia industrial hemp research program in the Commonwealth shall apply to the Commissioner for a registration on a form provided by the Commissioner. At a minimum, the application shall include:
2. The legal description and geographic data sufficient for locating (i) the land on which the applicant intends to grow industrial hemp or, (ii) the site at which the applicant intends to deal in industrial hemp, or (iii) the site at which the applicant intends to process industrial hemp. A registration shall authorize industrial hemp growth, dealing in, or processing only at the location specified in the registration;
3. A signed statement indicating whether the applicant has ever been convicted of a felony. A person with a prior felony drug conviction within 10 years of applying for a registration under this section shall not be eligible to be registered;
4. Written consent allowing the sheriff's office, police department, or Department of State Police, if a registration is ultimately issued to the applicant, to enter the premises on which the industrial hemp is grown, dealt in, or processed to conduct physical inspections of the industrial hemp and to ensure compliance with the requirements of this chapter. No more than two physical inspections shall be conducted under this subdivision per year, unless a valid search warrant for an inspection has been issued by a court of competent jurisdiction;
5. If the applicant intends to participate in a higher education industrial hemp research program, documentation of an agreement between an institution of higher education and the applicant that states that the applicant, if registered pursuant to subsection A, will be a participant in the higher education industrial hemp research program managed by that institution of higher education;
6. Written consent allowing the Commissioner or his designee to enter the premises on which the industrial hemp is grown, dealt in, or processed to conduct inspections and sampling of the industrial hemp to ensure compliance with the requirements of this chapter;
7. If the applicant intends to participate in the Virginia industrial hemp research program, a 6. A statement of the approximate square footage or acreage of the location he intends to use as a production field, dealership, or process site and a description of the research he plans to conduct to advance the industrial hemp industry;
8. 7. Any other information required by the Commissioner; and
9. 8. The payment of a nonrefundable application fee, in an amount set by the Commissioner not to exceed $50.
C. Each registration issued pursuant to this section shall be valid for a period of one year from the date of issuance and may be renewed in successive years. Each annual renewal shall require the payment of a registration renewal fee, in an amount set by the Commissioner not to exceed $50.
D. All records, data, and information filed in support of a registration application submitted pursuant to this section shall be considered proprietary and excluded from the provisions of the Virginia Freedom of Information Act (§2.2-3700 et seq.).
§3.2-4116. Registration conditions.
A. A person shall obtain a registration pursuant to subsection A of §3.2-4115 prior to growing, dealing in, or processing any industrial hemp in the Commonwealth.
B. A person issued a registration pursuant to subsection A of §3.2-4115 shall:
1. Maintain records that reflect compliance with this chapter and with all other state or federal laws regulating the growing, dealing in, or processing of industrial hemp;
2. Retain all industrial hemp growing, dealing, or processing records for at least three years;
3. Allow his production field, dealership, or process site to be inspected by and at the discretion of the Commissioner or his designee, the Department of State Police, or the chief law-enforcement officer of the locality in which the production field or dealership or process site exists;
4. Allow the Commissioner or his designee to monitor and test the grower's, dealer's, or processor's industrial hemp for compliance with tetrahydrocannabinol levels and for other appropriate purposes established pursuant to §3.2-4114, at the cost of the grower, dealer, or processor; and
5. If the person is a participant in a higher education industrial hemp research program, maintain a current written agreement with an institution of higher education that states that the grower or processor is a participant in the higher education industrial hemp research program managed by that institution of higher education;
6. If required by the Commissioner, destroy, at the cost of the grower, dealer, or processor and in a manner approved of and verified by the Commissioner, any Cannabis sativa that the grower grows, the dealer deals in, or the processor processes that has been tested and, following any re-sampling and retesting as authorized pursuant to the provisions of §3.2-4114.2, is found to have a concentration of tetrahydrocannabinol that is greater than that allowed by federal law; and, or any Cannabis sativa product that the processor produces
7. If the person is a participant in the Virginia industrial hemp research program, by October 1 of each year, submit a report to the Commissioner regarding his growing or processing activities for the previous year.
§3.2-4118. Forfeiture of industrial hemp grower, dealer, or processor registration; violations.
A. The Commissioner shall deny the application, or suspend or revoke the registration, of any person who, with a culpable mental state greater than negligence, violates any provision of this chapter. The Commissioner shall provide reasonable notice of an informal fact-finding conference pursuant to §2.2-4019 to any person in connection with the denial, suspension, or revocation of a registration.
C. The Commissioner may revoke any registration of any grower or processor who has pled guilty to, or been convicted of, a felony. A person issued a registration pursuant to subsection A of §3.2-4115 who negligently (i) fails to provide a description and geographic data sufficient for locating his production field, dealership, or process site; (ii) grows, deals in, or processes Cannabis sativa with a tetrahydrocannabinol concentration greater than that allowed by federal law; or (iii) produces a Cannabis sativa product shall comply with any corrective action plan established by the Commissioner in accordance with the provisions of subsection E.
D. A person who grows, deals in, or processes industrial hemp and who negligently fails to register pursuant to subsection A of §3.2-4115 shall comply with any corrective action plan established by the Commissioner in accordance with the provisions of subsection E.
§3.2-4119. Eligibility to receive tobacco settlement funds.
Industrial hemp growers, dealers, or processors registered under this chapter may be eligible to receive funds from the Tobacco Indemnification and Community Revitalization Fund established pursuant to § 3.2-3106.
D. The term "marijuana" when used in this article means any part of a plant of the genus Cannabis, whether growing or not, its seeds or resin; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or its resin. Marijuana shall not include any oily extract containing one or more cannabinoids unless such extract contains less than 12 percent of tetrahydrocannabinol by weight, or the mature stalks of such plant, fiber produced from such stalk, oil or cake made from the seed of such plant, unless such stalks, fiber, oil or cake is combined with other parts of plants of the genus Cannabis. Marijuana shall not include (i) industrial hemp, as defined in §3.2-4112, that is possessed by a person registered pursuant to subsection A of §3.2-4115 or his agent or (ii) a hemp product, as defined in §3.2-4112, containing a tetrahydrocannabinol concentration of no greater than 0.3 percent that is derived from industrial hemp, as defined in §3.2-4112, that is grown, dealt, or processed in compliance with state or federal law.
"Marijuana" means any part of a plant of the genus Cannabis whether growing or not, its seeds, or its resin; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or its resin. Marijuana shall not include any oily extract containing one or more cannabinoids unless such extract contains less than 12 percent of tetrahydrocannabinol by weight, nor shall marijuana include the mature stalks of such plant, fiber produced from such stalk, or oil or cake made from the seeds of such plant, unless such stalks, fiber, oil, or cake is combined with other parts of plants of the genus Cannabis. Marijuana shall not include (i) industrial hemp, as defined in §3.2-4112, that is possessed by a person registered pursuant to subsection A of §3.2-4115 or his agent, or (ii) a hemp product, as defined in §3.2-4112, containing a tetrahydrocannabinol concentration of no greater than 0.3 percent that is derived from industrial hemp, as defined in §3.2-4112, that is grown, dealt, or processed in compliance with state or federal law.
"Cannabidiol oil" means a processed Cannabis plant extract that contains at least 15 percent cannabidiol but no more than five percent tetrahydrocannabinol, or a dilution of the resin of the Cannabis plant that contains at least five milligrams of cannabidiol per milliliter but not more than five percent tetrahydrocannabinol. "Cannabidiol oil" does not include industrial hemp, as defined in §3.2-4112, that is grown, dealt, or processed in compliance with state or federal law.
G. The Board shall promulgate regulations to implement the registration process. Such regulations shall include (i) a mechanism for sufficiently identifying the practitioner issuing the written certification, the patient being treated by the practitioner, and, if such patient is a minor or an incapacitated adult as defined in §18.2-369, the patient's parent or legal guardian; (ii) a process for ensuring that any changes in the information are reported in an appropriate timeframe; and (iii) a prohibition for the patient to be issued a written certification by more than one practitioner during any given time period.
H. Information obtained under the registration process shall be confidential and shall not be subject to the disclosure provisions of the Virginia Freedom of Information Act (§2.2-3700 et seq.). However, reasonable access to registry information shall be provided to (i) the Chairmen of the House and Senate Committees for Courts of Justice, (ii) state and federal agencies or local law enforcement for the purpose of investigating or prosecuting a specific individual for a specific violation of law, (iii) licensed physicians or pharmacists for the purpose of providing patient care and drug therapy management and monitoring of drugs obtained by a registered patient, (iv) a pharmaceutical processor involved in the treatment of a registered patient, or (v) a registered patient or, if such patient is a minor or an incapacitated adult as defined in §18.2-369, the patient's parent or legal guardian, but only with respect to information related to such registered patient.
§54.1-3446. Schedule I.
3,4-dichloro-N-{[1-(dimethylamino)cyclohexyl]methyl}benzamide (other name: AH-7921);
N-{1-[2-hydroxy-2-(2-thienyl)ethyl]-4-piperidinyl}-N-phenylpropanamide (other name: beta-hydroxythiofentanyl);
Tetrahydrocannabinols, except as present in (i) industrial hemp, as defined in §3.2-4112, that is possessed by a person registered pursuant to subsection A of §3.2-4115 or his agent; (ii) a hemp product, as defined in § 3.2-4112, containing a tetrahydrocannabinol concentration of no greater than 0.3 percent that is derived from industrial hemp, as defined in §3.2-4112, that is grown, dealt, or processed in compliance with state or federal law; (iii) marijuana and; or (iv) dronabinol in sesame oil and encapsulated in a soft gelatin capsule in a drug product approved by the U.S. Food and Drug Administration;
2-(3-fluorophenyl)-3-methylmorpholine (other name: 3-fluorophenmetrazine);
Aminorex (some trade or other names; aminoxaphen; 2-amino-5-phenyl-2-oxazoline; 4,5-dihydro-5-phenyl-2-oxazolamine);
a. "Cannabimimetic agents" includes any substance that is within any of the following structural classes:
b. The term "cannabimimetic agents" includes:
(6aR,10aR)-9-(hydroxymethyl)-6,6-dimethyl-3-(2-methyloctan-2-yl)-6a,7,10,10a-ter ahydrobenzo[c]chromen-1-ol (other name: HU-210);
Methyl 2-({1-[(4-fluorophenyl)methyl]-1H-indazole-3-carbonyl}amino)-3- methylbutanoate (other names: AMB-FUBINACA, FUB-AMB);
N-(adamantan-1-yl)-1-(4-fluorobenzyl)-1H-indazole-3-carboxamide (other name: FUB-AKB48);
N-(1-amino-3,3-dimethyl-1-oxobutan-2-yl)-1-(5-fluoropentyl)indazole-3-carbox amide (other name: 5-fluoro-ADB-PINACA).
2. That §§3.2-4114.1 and 3.2-4117 of the Code of Virginia are repealed.
3. That the Virginia Department of Agriculture and Consumer Services (the Department), by December 1, 2019, shall report to the General Assembly on (i) the fiscal impact of the growth of the industrial hemp industry in Virginia upon the Department's registration program and (ii) any need to alter the registration fee charged by the Department.
4. That the Virginia Department of Agriculture and Consumer Services, by December 1, 2019, shall report to the Chairmen of the House Committee on Agriculture, Chesapeake and Natural Resources and the Senate Committee on Agriculture, Conservation and Natural Resources on the viability of markets for Virginia industrial hemp growers, the types of products made from industrial hemp that can be produced in Virginia, and the economic benefits and costs of production of such products.
5. That the Secretary of Agriculture and Forestry and the Secretary of Health and Human Resources shall, by November 1, 2019, report to the General Assembly on the appropriate standards, if any, for the production of an oil with a tetrahydrocannabinol concentration of no greater than 0.3 percent that is derived from industrial hemp, as defined in §3.2-4112 of the Code of Virginia as amended by this act.
6. That the provisions of this act may result in a net increase in periods of imprisonment or commitment. Pursuant to §30-19.1:4 of the Code of Virginia, the estimated amount of the necessary appropriation is $0 for periods of imprisonment in state adult correctional facilities and $0 for periods of commitment to the custody of the Department of Juvenile Justice.
7. That an emergency exists and this act is in force from its passage.