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30th Legislature(2017-2018)

Bill Text 30th Legislature

00             HOUSE CS FOR CS FOR SENATE BILL NO. 6(FIN)(efd add H)                                                       
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'; clarifying that adding industrial hemp to food does not create an                                     
05 adulterated food product; and providing for an effective date."                                                         
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.                                                                                                              
07    * Sec. 12.  This Act takes effect immediately under AS 01.10.070(c).                                               
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