HCS CSSB 6(FIN): "An Act relating to the regulation and production of industrial hemp; relating to industrial hemp pilot programs; providing that industrial hemp is not included in the definition of 'marijuana'; providing that cannabidiol oil is not included in the definition of 'hashish oil'; and clarifying that adding industrial hemp to food does not create an adulterated food product."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 6(FIN) 01 "An Act relating to the regulation and production of industrial hemp; relating to 02 industrial hemp pilot programs; providing that industrial hemp is not included in the 03 definition of 'marijuana'; providing that cannabidiol oil is not included in the definition 04 of 'hashish oil'; and clarifying that adding industrial hemp to food does not create an 05 adulterated food product." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE INTENT. It is the intent of the legislature that the legislature 10 reevaluate the regulation of industrial hemp, as provided under this Act, in seven years. 11 * Sec. 2. AS 03.05.010 is amended to read: 12 Sec. 03.05.010. Powers and duties of commissioner of natural resources. 13 (a) The commissioner of natural resources shall
01 (1) direct, administer, and supervise promotional and experimental 02 work, extension services, and agricultural projects for the purpose of promoting and 03 developing the agricultural industry within the state including such fields as 04 horticulture, dairying, cattle raising, fur farming, grain production, vegetable 05 production, and development of other agricultural products; 06 (2) procure and preserve all information pertaining to the development 07 of the agricultural industry and disseminate that information to the public; 08 (3) assist prospective settlers and others desiring to engage in the 09 agricultural industry in the state with information concerning areas suitable for 10 agriculture and other activities and programs essential to the development of the 11 agricultural industry in the state; 12 (4) review the marketing, financing, and development of agricultural 13 products inside the state including transportation, with special emphasis on [UPON] 14 local production, and negotiate for the marketing of agricultural products of the state 15 with federal and state agencies operating in the state; 16 (5) regulate and control the entry into the state and the transportation, 17 sale, or use inside the state of plants, seeds, vegetables, shell eggs, fruits and berries, 18 nursery stock, animal feeds, remedies and mineral supplements, fertilizers, and 19 agricultural chemicals in order to prevent the spread of pests, diseases, or toxic 20 substances injurious to the public interest, and to protect the agricultural industry 21 against fraud, deception, and misrepresentation; in this connection the commissioner 22 may require registration, inspection, and testing, and establish procedures and fees; 23 (6) regulate the farming of elk in a manner similar to the manner in 24 which the commissioner regulates domestic animals and livestock, to the extent that is 25 appropriate; 26 (7) adopt regulations relating to industrial hemp, including 27 regulations that 28 (A) specify approved sources or varieties of hemp seed to be 29 grown, sold, or offered for sale by an individual registered to produce 30 industrial hemp; 31 (B) require testing, paid for by the registrant, for delta-9
01 tetrahydrocannabinol concentration following harvest of the industrial 02 hemp; 03 (C) provide for general production practices to avoid the 04 unintended distribution of industrial hemp seeds by registrants into 05 nonagricultural land; 06 (D) establish isolation distances for the production of 07 industrial hemp; in this subparagraph, "isolation distance" means the 08 minimum separation required between two or more varieties of the plant 09 (genus) cannabis for the purpose of keeping the seed pure; 10 (8) submit a list of individuals registered to produce industrial 11 hemp under AS 03.05.076 and the expiration dates of the registration to the 12 marijuana control board and the Department of Public Safety [REPEALED]. 13 (b) To carry out the requirements of this title, the commissioner of natural 14 resources may issue orders, regulations, quarantines, and embargoes relating to 15 (1) examination and inspection of premises containing products, 16 articles, and commodities carrying pests; 17 (2) establishment of quarantines for eradication of pests; 18 (3) establishment of standards and labeling requirements pertaining to 19 the sale of agricultural and vegetable seeds; 20 (4) tests and analyses which may be made and hearings which may be 21 held to determine whether the commissioner will issue a stop order or quarantine; 22 (5) cooperation with federal and other state agencies; and 23 (6) industrial hemp. 24 * Sec. 3. AS 03.05.010 is amended by adding a new subsection to read: 25 (c) The commissioner of natural resources shall issue a stop order to any 26 person who is found to be producing a plant product with a delta-9 27 tetrahydrocannabinol over 0.3 percent, regardless of whether the person is registered 28 under AS 03.05.076. The commissioner of natural resources shall notify the Marijuana 29 Control Board and the Department of Public Safety when the commissioner issues a 30 stop order. 31 * Sec. 4. AS 03.05 is amended by adding new sections to read:
01 Sec. 03.05.076. Industrial hemp. (a) Industrial hemp is an agricultural crop in 02 the state. An individual who produces industrial hemp shall apply to the department 03 for registration under this section. Registration is valid for one year but may be 04 renewed. An application for registration or renewal must be on a form prescribed by 05 the department that includes 06 (1) the name and address of the applicant; 07 (2) the address and global positioning system coordinates of the area to 08 be used for the production of industrial hemp. 09 (b) An individual registered under this section may 10 (1) produce industrial hemp, including growing, harvesting, 11 possessing, transporting, processing, selling, or buying industrial hemp; 12 (2) use any propagation method, including planting seeds or starts or 13 using clones or cuttings to produce industrial hemp; 14 (3) retain industrial hemp seeds for the purpose of propagating 15 industrial hemp in future years; 16 (4) retain and recondition any industrial hemp that tests between 0.3 17 percent and one percent delta-9 tetrahydrocannabinol on a dry-weight basis. 18 (c) An individual registered under this section shall 19 (1) comply with testing standards and procedures established by the 20 commissioner by regulation; 21 (2) maintain, for at least three years following the sale or transfer of 22 industrial hemp, records showing 23 (A) the name and address of the person that received the 24 industrial hemp; 25 (B) the amount of industrial hemp transferred; 26 (3) make the records required under (2) of this subsection available for 27 inspection by the department during normal business hours if the department provides 28 at least three days' notice before inspecting the records. 29 (d) The department shall 30 (1) establish fee levels for application, registration, and renewal of 31 registration so that the total amount of fees collected under this section approximately
01 equals the regulatory costs for regulating the industrial hemp industry; 02 (2) annually review each fee level to determine whether the regulatory 03 cost of industrial hemp is approximately equal to the fees collected; 04 (3) notify the Marijuana Control Board and the Department of Public 05 Safety when the department issues a stop-sale order and issues a violation notice under 06 this section; 07 (4) require an individual registered under this section whose industrial 08 hemp tests over one percent delta-9 tetrahydrocannabinol to destroy the product so 09 that it cannot be used for the purpose of reconditioning other hemp crops or gifted or 10 transferred to another individual other than for the purpose of having the industrial 11 hemp destroyed in full form. 12 (e) The department may 13 (1) issue a stop-sale order and issue a violation notice to a person who 14 is producing industrial hemp without a current registration; 15 (2) adopt regulations regarding approved shipping documentation for 16 the transportation of industrial hemp; 17 (3) conduct random tests and inspections of industrial hemp for delta-9 18 tetrahydrocannabinol concentration produced by an individual registered under this 19 section. 20 (f) The department, an individual registered under this section, or any 21 institution of higher education may import into the state and resell industrial hemp 22 seeds. 23 (g) Industrial hemp products intended for human consumption may not exceed 24 0.3 percent delta-9 tetrahydrocannabinol. 25 (h) Producing industrial hemp without a registration issued under this section 26 is a violation punishable by a fine of $500. 27 Sec. 03.05.077. Industrial hemp pilot program. (a) The department or an 28 institution of higher education in the state may create and administer an agricultural 29 pilot program to study the growth, cultivation, or marketing of industrial hemp. 30 (b) An institution of higher education in the state, the division of the 31 department with responsibility for agriculture, or an individual registered under
01 AS 03.05.076 may participate in an agricultural pilot program created under (a) of this 02 section or engage in industrial hemp research. 03 (c) The department may adopt regulations to implement this section. 04 Sec. 03.05.078. Transportation of industrial hemp. (a) An individual 05 registered under AS 03.05.076 shall have a copy of the individual's registration in 06 immediate possession at all times when transporting industrial hemp and shall present 07 the copy of the registration for inspection upon the demand of a peace officer or other 08 authorized representative of the department. An individual may display a copy of the 09 individual's registration on a mobile electronic device. 10 (b) Displaying proof of registration on a mobile electronic device under this 11 section does not constitute consent for a peace officer or other authorized 12 representative of the department to access other contents of the mobile electronic 13 device. 14 (c) An individual who violates (a) of this section is guilty of a violation. 15 Sec. 03.05.079. Production in violation of delta-9 tetrahydrocannabinol 16 limit. Notwithstanding AS 11.71.040 - 11.71.060, an individual registered under 17 AS 03.05.076 to produce industrial hemp whose product has a delta-9 18 tetrahydrocannabinol content between 0.3 percent and one percent is guilty of a 19 violation. 20 * Sec. 5. AS 03.05.100 is amended by adding a new paragraph to read: 21 (5) "industrial hemp" means all parts and varieties of the plant 22 Cannabis sativa L. containing not more than 0.3 percent delta-9 tetrahydrocannabinol. 23 * Sec. 6. AS 11.71.900(11) is amended to read: 24 (11) "hashish oil" means the viscous liquid concentrate of 25 tetrahydrocannabinols extracted from the plant (genus) Cannabis, but does not 26 include cannabidiol oil; 27 * Sec. 7. AS 11.71.900(14) is amended to read: 28 (14) "marijuana" means the seeds, and leaves, buds, and flowers of the 29 plant (genus) Cannabis, whether growing or not; it does not include the resin or oil 30 extracted from any part of the plants, or any compound, manufacture, salt, derivative, 31 mixture, or preparation from the resin or oil, including hashish, hashish oil, and natural
01 or synthetic tetrahydrocannabinol; it does not include the stalks of the plant, fiber 02 produced from the stalks, oil or cake made from the seeds of the plant, any other 03 compound, manufacture, salt, derivative, mixture, or preparation of the stalks, fiber, 04 oil or cake, or the sterilized seed of the plant which is incapable of germination; it 05 does not include industrial hemp as defined in AS 03.05.100; 06 * Sec. 8. AS 11.71.900 is amended by adding a new paragraph to read: 07 (31) "cannabidiol oil" means the viscous liquid concentrate of 08 cannabidiol extracted from the plant (genus) Cannabis containing not more than 0.3 09 percent delta-9 tetrahydrocannabinol; 10 * Sec. 9. AS 17.20.020 is amended by adding a new subsection to read: 11 (e) Food is not adulterated under this section solely because it contains 12 industrial hemp, as defined in AS 03.05.100, or an industrial hemp product. 13 * Sec. 10. AS 17.38.900(10) is amended to read: 14 (10) "marijuana" means all parts of the plant of the genus cannabis 15 whether growing or not, the seeds thereof, the resin extracted from any part of the 16 plant, and every compound, manufacture, salt, derivative, mixture, or preparation of 17 the plant, its seeds, or its resin, including marijuana concentrate; "marijuana" does not 18 include fiber produced from the stalks, oil [,] or cake made from the seeds of the plant, 19 sterilized seed of the plant which is incapable of germination, [OR] the weight of any 20 other ingredient combined with marijuana to prepare topical or oral administrations, 21 food, drink, or other products, or industrial hemp as defined in AS 03.05.100; 22 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 REPORT ON INDUSTRIAL HEMP. On or before December 1, 2024, the Department 25 of Natural Resources shall provide a written report to the legislature on the regulation of 26 industrial hemp. The department shall deliver the report to the senate secretary and the chief 27 clerk of the house of representatives not later than December 1, 2024, and notify the 28 legislature that the report is available. The report must include 29 (1) the total number, for each of the previous seven calendar years and the 30 combined total for the previous seven years, of 31 (A) individuals registered in the state to produce industrial hemp;
01 (B) violations that occurred; and 02 (C) stop orders issued; 03 (2) the total amount of industrial hemp grown for each of the previous seven 04 calendar years and the combined total for the previous seven years; and 05 (3) a summary of the economic effects of the regulation of industrial hemp for 06 the state.