2020 -- H 7535

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LC004449

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO AGRICULTURE AND FORESTRY -- HEMP GROWTH ACT

     

     Introduced By: Representatives Chippendale, Filippi, Slater, Marszalkowski, and
Roberts

     Date Introduced: February 12, 2020

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 2-26-5 of the General Laws in Chapter 2-26 entitled "Hemp Growth

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Act" is hereby amended to read as follows:

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     2-26-5. Authority over licensing and sales.

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     (a) The department shall prescribe rules and regulations for the licensing and regulation

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of hemp growers, handlers, licensed CBD distributors, and licensed CBD retailers and persons

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employed by the applicant not inconsistent with law, to carry into effect the provision of this

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chapter and shall be responsible for the enforcement of the licensing.

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     (b) All growers, handlers, licensed CBD distributors, and licensed CBD retailers must

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have a hemp license issued by the department. All production, distribution, and retail sale of

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hemp-derived consumable CBD products must be consistent with any applicable state or local

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food processing and safety regulations, and the applicant shall be responsible to ensure its

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compliance with the regulations and any applicable food safety licensing requirements, including,

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but not limited to, those promulgated by the department of health.

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     (c) The application for a hemp license shall include, but not be limited to, the following:

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     (1)(i) The name and address of the applicant who will supervise, manage, or direct the

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growing and handling of hemp and the names and addresses of any person or entity partnering or

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providing consulting services regarding the growing or handling of hemp; and

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     (ii) The name and address of the applicant who will supervise, manage, or direct the

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distribution or sale of hemp-derived consumable CBD products, and names and addresses of any

 

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person or entity partnering or providing consulting services regarding the distribution or sale of

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hemp-derived CBD products.

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     (2) A certificate of analysis that the seeds or plants obtained for cultivation are of a type

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and variety that do not exceed the maximum concentration of delta-9 THC, as set forth in § 2-26-

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3; any seeds that are obtained from a federal agency are presumed not to exceed the maximum

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concentration and do not require a certificate of analysis.

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     (3)(i) The location of the facility, including the Global Positioning System location, and

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other field reference information as may be required by the department with a tracking program

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and security layout to ensure that all hemp grown is tracked and monitored from seed to

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distribution outlets; and

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     (ii) The location of the facility and other information as may be required by the

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department as to where the distribution or sale of hemp-derived consumable CBD products will

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occur.

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     (4) An explanation of the seed-to-sale tracking, cultivation method, extraction method,

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and certificate of analysis or certificate of analysis for the standard hemp seeds or hemp product if

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required by the department.

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     (5) Verification, prior to planting any seed, that the plant to be grown is of a type and

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variety of hemp that will produce a delta-9 THC concentration of no more than three-tenths of

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one percent (0.3%) on a dry-weight basis.

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     (6) Documentation that the licensee and/or its agents have entered into a purchase

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agreement with a hemp handler, processor, distributor, or retailer.

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     (7) All applicants:

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     (i) Shall apply to the state police, attorney general, or local law enforcement for a

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National Criminal Identification records check that shall include fingerprints submitted to the

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Federal Bureau of Investigation. Upon the discovery of a disqualifying conviction defined in

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subsections (c)(7)(iv) and (c)(7)(v), and in accordance with the rules promulgated by the

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department, the state police shall inform the applicant, in writing, of the nature of the conviction,

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and the state police shall notify the department, in writing, without disclosing the nature of the

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conviction, that a conviction has been found;

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     (ii) In those situations in which no conviction has been found, the state police shall

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inform the applicant and the department, in writing, of this fact;

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     (iii) All applicants shall be responsible for any expense associated with the criminal

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background check with fingerprints.

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     (iv) Any applicant who has been convicted of any felony offense under chapter 28 of title

 

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21, or any person who has been convicted of murder; manslaughter; first-degree sexual assault;

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second-degree sexual assault; first-degree child molestation; second-degree child molestation;

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kidnapping; first-degree arson; second-degree arson; mayhem; robbery; burglary; breaking and

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entering; assault with a dangerous weapon; or any assault and battery punishable as a felony or

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assault with intent to commit any offense punishable as a felony, shall be disqualified from

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holding any license or permit under this chapter. The department shall notify any applicant, in

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writing, of a denial of a license pursuant to this subsection.

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     (v) For purposes of this section, "conviction" means, in addition to judgments of

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conviction entered by a court subsequent to a finding of guilty, or plea of guilty, those instances

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where the defendant has entered a plea of nolo contendere and has received a jail sentence or a

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suspended jail sentence, or those instances wherein the defendant has entered into a deferred

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sentence agreement with the Rhode Island attorney general and the period of deferment has not

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been completed.

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     (8) Any other information as set forth in rules and regulations as required by the

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department.

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     (d) [Deleted by P.L. 2019, ch. 88, art. 15, § 1].

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     (e) The department shall issue a hemp license to the grower or handler applicant if he,

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she, or it meets the requirements of this chapter, upon the applicant paying a licensure fee of two

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thousand five hundred dollars ($2,500). The license shall be renewed every two (2) years upon

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payment of a two thousand five hundred dollar ($2,500) renewal fee. Any licensee convicted of

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any disqualifying offense described in subsection (c)(7)(iv) shall have his, her, or its license

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revoked. All license fees shall be directed to the department to help defray the cost of

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enforcement. The department shall collect a nonrefundable license application fee of two hundred

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fifty dollars ($250) one hundred dollars ($100) for each application to obtain a license.

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     (f) Any grower or handler license applicant or license holder may also apply for and be

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issued one (1) CBD distributor and/or one (1) CBD retailer license at no additional cost, provided

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their grower or handler license is issued or renewed. CBD distributor and CBD retailer licenses

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shall be renewed each year at no additional fee provided the applicant also holds or renews a

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grower and/or handler license.

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     (g) For applicants who do not hold, renew, or receive a grower or handler license, CBD

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distributor and CBD retailer licenses shall have a licensure fee of five hundred dollars ($500).

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The licenses shall be renewed each year upon approval by the department and payment of a five

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hundred dollar ($500) renewal fee.

 

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO AGRICULTURE AND FORESTRY -- HEMP GROWTH ACT

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     This act would repeal the licensure fee for a hemp license and reduce the license

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application fee from two hundred fifty dollars ($250) to one hundred dollars ($100).

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     This act would take effect upon passage.

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