Minnesota Legislature
SF 3502
as introduced - 91st Legislature (2019 - 2020) Posted on 02/25/2020 08:29am
Current Version - as introduced
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A bill for an act
relating to agriculture; modifying industrial hemp provisions; providing definitions;
classifying industrial hemp data; amending Minnesota Statutes 2018, sections
13.6435, subdivision 4a; 18K.02, by adding subdivisions; 18K.04, subdivisions
1, 3, by adding a subdivision; 18K.06.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2018, section 13.6435, subdivision 4a, is amended to read:
Subd. 4a.
Industrial hemp deleted text begin background checkdeleted text end new text begin licensingnew text end data.
deleted text begin Criminal history recordsdeleted text end new text begin
Certain datanew text end provided to the commissioner by a deleted text begin first-timedeleted text end new text begin licensee ornew text end applicant for a license
to grownew text begin or processnew text end industrial hemp deleted text begin for commercial purposes aredeleted text end new text begin isnew text end classified under section
18K.04deleted text begin , subdivision 2deleted text end .
Sec. 2.
Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Applicant. new text end
new text begin
"Applicant" means an individual who submits an application for
a license as required under this chapter. If the applicant is an entity, applicant means the
owner or most responsible individual in charge of the entity.
new text end
Sec. 3.
Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:
new text begin Subd. 1b. new text end
new text begin Authorized representative. new text end
new text begin
"Authorized representative" means any individual
authorized by the licensee to make changes to the license and share data on behalf of the
licensee.
new text end
Sec. 4.
Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Entity. new text end
new text begin
"Entity" means a corporation, joint stock company, association, limited
partnership, limited liability partnership, limited liability company, irrevocable trust, estate,
charitable organization, or other similar organization, including any such organization
participating in hemp production as a partner in a general partnership, a participant in a joint
venture, or a participant in a similar organization.
new text end
Sec. 5.
Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:
new text begin Subd. 5. new text end
new text begin Processing. new text end
new text begin
"Processing" means rendering by refinement hemp plants or hemp
plant parts from their natural or original state after harvest. Processing includes but is not
limited to decortication, devitalization, chopping, crushing, extraction, and packaging.
Processing does not include typical farm operations such as sorting, grading, baling, and
harvesting.
new text end
Sec. 6.
Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:
new text begin Subd. 6. new text end
new text begin Processing location. new text end
new text begin
"Processing location" means any area, building, plant, or
facility registered with and approved by the commissioner in which a licensee converts raw
hemp into a marketable product.
new text end
Sec. 7.
Minnesota Statutes 2018, section 18K.02, is amended by adding a subdivision to
read:
new text begin Subd. 7. new text end
new text begin Processor. new text end
new text begin
"Processor" means a person or business that converts raw hemp
into a product.
new text end
Sec. 8.
Minnesota Statutes 2018, section 18K.04, subdivision 1, is amended to read:
Subdivision 1.
Requirement; issuance; presumption.
(a) A person must obtain a license
from the commissioner beforenew text begin (1)new text end growing industrial hemp for commercialnew text begin or researchnew text end
purposesnew text begin , and (2) before processing industrial hemp for commercial purposesnew text end .
new text begin (b)new text end new text begin To obtain a license under paragraph (a),new text end 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.
new text begin (c)new text end new text begin For a license to grow industrial hemp for commercial or research purposes,new 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 applicantnew text begin and any other
information required under Code of Federal Regulations, title 7, part 990new text end .
new text begin
(d) For a license to process industrial hemp for commercial purposes, 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.
new text end
new text begin
(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.
new text end
deleted text begin (b)deleted text end new text begin (f)new text end 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.
deleted text begin (c)deleted text end new text begin (g)new text end A person licensed under deleted text begin this sectiondeleted text end new text begin paragraph (a) to grow industrial hempnew text end is
presumed to be growing industrial hemp for commercialnew text begin or researchnew text end purposes.
Sec. 9.
Minnesota Statutes 2018, section 18K.04, subdivision 3, is amended to read:
Subd. 3.
Federal requirements.
The applicant must demonstrate to the satisfaction of
the commissioner that the applicant has complied with all applicable federal requirements
pertaining to the new text begin processing, new text end production, distribution, and sale of industrial hemp.
Sec. 10.
Minnesota Statutes 2018, section 18K.04, is amended by adding a subdivision to
read:
new text begin Subd. 4. new text end
new text begin Industrial hemp licensing data classification. new text end
new text begin
(a) In addition to data classified
pursuant to section 13.41, the following data collected, created, or maintained by the
commissioner under this chapter is classified as private data, as defined in section 13.02,
subdivision 12, or nonpublic data, as defined in section 13.02, subdivision 9:
new text end
new text begin
(1) a nondesignated address provided by a licensee or applicant; and
new text end
new text begin
(2) the legal description of the land area or areas where an individual or entity grows or
will grow industrial hemp.
new text end
new text begin
(b) The commissioner may make any data classified as private data or nonpublic data
under this subdivision accessible to any person, agency, or the public if the commissioner
determines that access may aid in the law enforcement process, promote public health or
safety, or dispel widespread rumor or unrest.
new text end
Sec. 11.
Minnesota Statutes 2018, section 18K.06, is amended to read:
18K.06 RULEMAKING.
(a) The commissioner shall adopt rules governing the production, testing,new text begin processing,new text end
and licensing of industrial hemp.
(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.