HF 2946

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/16/2023 02:36pm

A bill for an act
relating to agriculture; amending hemp provisions; amending Minnesota Statutes
2022, sections 18K.04, subdivisions 1, 2; 18K.06; repealing Minnesota Statutes
2022, sections 18K.05; 18K.09.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 18K.04, subdivision 1, is amended to read:

Subdivision 1.

Requirement; issuance; presumption.

(a) A person must obtain a license
from the commissioner before (1) growing industrial hemp deleted text begin for commercial or research
purposes deleted text end , deleted text begin and deleted text end (2) deleted text begin before deleted text end processing industrial hemp deleted text begin for commercial purposes deleted text end new text begin , or (3)
researching industrial hemp new text end .

(b) To obtain a license under paragraph (a), a person must apply to the commissioner
in the form prescribed by the commissioner and must pay the annual registration and
inspection fee established by the commissioner in accordance with section 16A.1285,
subdivision 2.

(c) For a license to grow industrial hemp deleted text begin for commercial or research purposes deleted text end , the license
application must include the name and address of the applicant and the legal description of
the land area or areas where industrial hemp will be grown by the applicant and any other
information required under Code of Federal Regulations, title 7, part 990.

(d) For a license to process industrial hemp deleted text begin for commercial purposes deleted text end , the license
application must include the name and address of the applicant, the legal description of the
processing location, and any other information required by the commissioner.

(e) A licensee is responsible for compliance with the license requirements irrespective
of the acts or omissions of an authorized representative acting on behalf of the licensee.

(f) When an applicant has paid the fee and completed the application process to the
satisfaction of the commissioner, the commissioner must issue a license which is valid until
December 31 of the year of application.

(g) A person licensed under paragraph (a) to grow industrial hemp is presumed to be
growing industrial hemp for commercial or research purposes.

Sec. 2.

Minnesota Statutes 2022, section 18K.04, subdivision 2, is amended to read:

Subd. 2.

Background check; data classification.

The commissioner must require each
first-time applicant for a license to submit to a background investigation conducted by the
Bureau of Criminal Apprehension as a condition of licensure. new text begin Any first-time authorized
representatives designated by the applicant must also submit to a background investigation.
new text end As part of the background investigation, the Bureau of Criminal Apprehension must conduct
criminal history checks of Minnesota records and is authorized to exchange fingerprints
with the United States Department of Justice, Federal Bureau of Investigation for the purpose
of a criminal background check of the national files. The cost of the investigation must be
paid by the applicant. Criminal history records provided to the commissioner under this
section must be treated as private data on individuals, as defined in section 13.02, subdivision
12.

Sec. 3.

Minnesota Statutes 2022, section 18K.06, is amended to read:

18K.06 RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, processing,
and licensing of industrial hemp. deleted text begin Notwithstanding section 14.125, the commissioner's
authority to adopt these rules expires June 30, 2022. deleted text end new text begin Notwithstanding the two-year limitation
for exempt rules under section 14.388, subdivision 1, Minnesota Rules, chapter 1565,
published in the State Register August 16, 2021, is effective until August 16, 2025, or until
permanent rules implementing chapter 18K are adopted, whichever occurs first.
new text end

(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions
governing:

(1) the supervision and inspection of industrial hemp during its growth and harvest;

(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;

(3) the use of background check results required under section 18K.04 to approve or
deny a license application; and

(4) any other provision or procedure necessary to carry out the purposes of this chapter.

(c) Rules issued under this section must be consistent with federal law regarding the
production, distribution, and sale of industrial hemp.

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 18K.05; and 18K.09, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-02140

18K.05 ANNUAL REPORT; SALES NOTIFICATION.

(a) Annually, a licensee must file with the commissioner:

(1) documentation demonstrating to the commissioner's satisfaction that the seeds planted by the licensee are of a type and variety that contain no more than three-tenths of one percent delta-9 tetrahydrocannabinol; and

(2) a copy of any contract to grow industrial hemp.

(b) Within 30 days, a licensee must notify the commissioner of each sale or distribution of industrial hemp grown by the licensee including, but not limited to, the name and address of the person receiving the industrial hemp and the amount of industrial hemp sold or distributed.

18K.09 PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.

Subdivision 1.

Authorized activity.

The commissioner may grow or cultivate industrial hemp pursuant to a pilot program administered by the commissioner to study the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1) authorize institutions of higher education to grow or cultivate industrial hemp as part of the commissioner's pilot program or as is necessary to perform other agricultural, renewable energy, or academic research; and (2) contract with public or private entities for testing or other activities authorized under this subdivision. Authorized activity under this section may include collecting seed from wild hemp sources.

Subd. 2.

Site registration.

Before growing or cultivating industrial hemp pursuant to this section, each site must be registered with and certified by the commissioner. A person must register each site annually in the form prescribed by the commissioner and must pay the annual registration and certification fee established by the commissioner in accordance with section 16A.1285, subdivision 2.

Subd. 3.

Rulemaking.

The commissioner may adopt rules that govern the pilot program pursuant to this section and Public Law 113-79.