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SF 618

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 08/21/2015 02:53pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to agriculture; providing for the development and regulation of an
industrial hemp industry; authorizing industrial hemp research; requiring
rulemaking; providing a defense for possession of industrial hemp; modifying
the definitions of marijuana and wild hemp; appropriating money; amending
Minnesota Statutes 2014, sections 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1,
2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.09;
18J.11, subdivision 1, by adding a subdivision; 152.01, subdivision 9; 375.30,
subdivision 2; proposing coding for new law as Minnesota Statutes, chapter 18K.

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

Section 1.

Minnesota Statutes 2014, section 18J.01, is amended to read:


18J.01 DEFINITIONS.

(a) The definitions in sections 18G.02, 18H.02, new text begin, new text end27.01, 223.16, 231.01,
and 232.21 apply to this chapter.

(b) For purposes of this chapter, "associated rules" means rules adopted under this
chapter, chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232, or sections 21.80 to 21.92.

Sec. 2.

Minnesota Statutes 2014, section 18J.02, is amended to read:


18J.02 DUTIES OF COMMISSIONER.

The commissioner shall administer and enforce this chapter, chapters 18G, 18H,
new text begin18K, new text end27, 223, 231, and 232; sections 21.80 to 21.92; and associated rules.

Sec. 3.

Minnesota Statutes 2014, section 18J.03, is amended to read:


18J.03 CIVIL LIABILITY.

A person regulated by this chapter, chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232,
or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or
associated rules by the person's employee or agent.

Sec. 4.

Minnesota Statutes 2014, section 18J.04, subdivision 1, is amended to read:


Subdivision 1.

Access and entry.

The commissioner, upon presentation of official
department credentials, must be granted immediate access at reasonable times to sites
where a person manufactures, distributes, uses, handles, disposes of, stores, or transports
seeds, plants, grain, household goods, general merchandise, produce, or other living or
nonliving products or other objects regulated under chapter 18G, 18H, new text begin18K, new text end27, 223, 231,
or 232; sections 21.80 to 21.92; or associated rules.

Sec. 5.

Minnesota Statutes 2014, section 18J.04, subdivision 2, is amended to read:


Subd. 2.

Purpose of entry.

(a) The commissioner may enter sites for:

(1) inspection of inventory and equipment for the manufacture, storage, handling,
distribution, disposal, or any other process regulated under chapter 18G, 18H, new text begin18K, new text end27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(2) sampling of sites, seeds, plants, products, grain, household goods, general
merchandise, produce, or other living or nonliving objects that are manufactured, stored,
distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H,
new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(3) inspection of records related to the manufacture, distribution, storage, handling,
or disposal of seeds, plants, products, grain, household goods, general merchandise,
produce, or other living or nonliving objects regulated under chapter 18G, 18H, new text begin18K, new text end27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(4) investigating compliance with chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules; or

(5) other purposes necessary to implement chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or
232; sections 21.80 to 21.92; or associated rules.

(b) The commissioner may enter any public or private premises during or after
regular business hours without notice of inspection when a suspected violation of chapter
18G, 18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules may
threaten public health or the environment.

Sec. 6.

Minnesota Statutes 2014, section 18J.04, subdivision 3, is amended to read:


Subd. 3.

Notice of inspection samples and analyses.

(a) The commissioner shall
provide the owner, operator, or agent in charge with a receipt describing any samples
obtained. If requested, the commissioner shall split any samples obtained and provide
them to the owner, operator, or agent in charge. If an analysis is made of the samples,
a copy of the results of the analysis must be furnished to the owner, operator, or agent
in charge within 30 days after an analysis has been performed. If an analysis is not
performed, the commissioner must notify the owner, operator, or agent in charge within 30
days of the decision not to perform the analysis.

(b) The sampling and analysis must be done according to methods provided for
under applicable provisions of chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232; sections
21.80 to 21.92; or associated rules. In cases not covered by those sections and methods
or in cases where methods are available in which improved applicability has been
demonstrated the commissioner may adopt appropriate methods from other sources.

Sec. 7.

Minnesota Statutes 2014, section 18J.04, subdivision 4, is amended to read:


Subd. 4.

Inspection requests by others.

(a) A person who believes that a violation
of chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated
rules has occurred may request an inspection by giving notice to the commissioner of the
violation. The notice must be in writing, state with reasonable particularity the grounds
for the notice, and be signed by the person making the request.

(b) If after receiving a notice of violation the commissioner reasonably believes that
a violation has occurred, the commissioner shall make a special inspection in accordance
with the provisions of this section as soon as practicable, to determine if a violation has
occurred.

(c) An inspection conducted pursuant to a notice under this subdivision may cover
an entire site and is not limited to the portion of the site specified in the notice. If the
commissioner determines that reasonable grounds to believe that a violation occurred
do not exist, the commissioner must notify the person making the request in writing of
the determination.

Sec. 8.

Minnesota Statutes 2014, section 18J.05, subdivision 1, is amended to read:


Subdivision 1.

Enforcement required.

(a) A violation of chapter 18G, 18H, new text begin18K, new text end27,
223, 231, or 232; sections 21.80 to 21.92; or an associated rule is a violation of this chapter.

(b) Upon the request of the commissioner, county attorneys, sheriffs, and other
officers having authority in the enforcement of the general criminal laws must take action
to the extent of their authority necessary or proper for the enforcement of chapter 18G,
18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules or valid
orders, standards, stipulations, and agreements of the commissioner.

Sec. 9.

Minnesota Statutes 2014, section 18J.05, subdivision 2, is amended to read:


Subd. 2.

Commissioner's discretion.

If minor violations of chapter 18G, 18H,
new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules occur or the
commissioner believes the public interest will be best served by a suitable notice of
warning in writing, this section does not require the commissioner to:

(1) report the violation for prosecution;

(2) institute seizure proceedings; or

(3) issue a withdrawal from distribution, stop-sale, or other order.

Sec. 10.

Minnesota Statutes 2014, section 18J.05, subdivision 6, is amended to read:


Subd. 6.

Agent for service of process.

All persons licensed, permitted, registered,
or certified under chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or
associated rules must appoint the commissioner as the agent upon whom all legal process
may be served and service upon the commissioner is deemed to be service on the licensee,
permittee, registrant, or certified person.

Sec. 11.

Minnesota Statutes 2014, section 18J.06, is amended to read:


18J.06 FALSE STATEMENT OR RECORD.

A person must not knowingly make or offer a false statement, record, or other
information as part of:

(1) an application for registration, license, certification, or permit under chapter 18G,
18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;

(2) records or reports required under chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules; or

(3) an investigation of a violation of chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232;
sections 21.80 to 21.92; or associated rules.

Sec. 12.

Minnesota Statutes 2014, section 18J.07, subdivision 3, is amended to read:


Subd. 3.

Cancellation of registration, permit, license, certification.

The
commissioner may cancel or revoke a registration, permit, license, or certification
provided for under chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92;
or associated rules or refuse to register, permit, license, or certify under provisions of
chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules
if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive
practices in the evasion or attempted evasion of a provision of chapter 18G, 18H, new text begin18K, new text end27,
223, 231, or 232; sections 21.80 to 21.92; or associated rules.

Sec. 13.

Minnesota Statutes 2014, section 18J.07, subdivision 4, is amended to read:


Subd. 4.

Service of order or notice.

(a) If a person is not available for service of an
order, the commissioner may attach the order to the facility, site, seed or seed container,
plant or other living or nonliving object regulated under chapter 18G, 18H, new text begin18K, new text end27, 223,
231, or 232; sections 21.80 to 21.92; or associated rules and notify the owner, custodian,
other responsible party, or registrant.

(b) The seed, seed container, plant, or other living or nonliving object regulated
under chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or 232; sections 21.80 to 21.92; or associated
rules may not be sold, used, tampered with, or removed until released under conditions
specified by the commissioner, by an administrative law judge, or by a court.

Sec. 14.

Minnesota Statutes 2014, section 18J.07, subdivision 5, is amended to read:


Subd. 5.

Unsatisfied judgments.

(a) An applicant for a license, permit, registration,
or certification under provisions of this chapter, chapter 18G, 18H, new text begin18K, new text end27, 223, 231, or
232; sections 21.80 to 21.92; or associated rules may not allow a final judgment against
the applicant for damages arising from a violation of those statutes or rules to remain
unsatisfied for a period of more than 30 days.

(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this
chapter results in automatic suspension of the license, permit, registration, or certification.

Sec. 15.

Minnesota Statutes 2014, section 18J.09, is amended to read:


18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.

Penalties, cost reimbursements, fees, and other money collected under this chapter
must be deposited into the state treasury and credited to the appropriate nursery and
phytosanitarynew text begin, industrial hemp,new text end or seed account.

Sec. 16.

Minnesota Statutes 2014, section 18J.11, subdivision 1, is amended to read:


Subdivision 1.

General violation.

Except as provided in subdivisions 2 deleted text beginanddeleted text endnew text begin,new text end 3new text begin, and
4
new text end, a person is guilty of a misdemeanor if the person violates this chapter or an order,
standard, stipulation, agreement, or schedule of compliance of the commissioner.

Sec. 17.

Minnesota Statutes 2014, section 18J.11, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Controlled substance offenses. new text end

new text begin Prosecution under this section does not
preclude prosecution under chapter 152.
new text end

Sec. 18.

new text begin [18K.01] SHORT TITLE.
new text end

new text begin This chapter may be referred to as the "Industrial Hemp Development Act."
new text end

Sec. 19.

new text begin [18K.02] FINDINGS; PURPOSE.
new text end

new text begin The legislature finds that the development and use of industrial hemp can improve
the state's economy and agricultural vitality and the production of industrial hemp can
be regulated so as not to interfere with the strict regulation of controlled substances in
this state. The purpose of the Industrial Hemp Development Act is to promote the state
economy and agriculture industry by permitting the development of a regulated industrial
hemp industry while maintaining strict control of marijuana.
new text end

Sec. 20.

new text begin [18K.03] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of agriculture.
new text end

new text begin Subd. 3. new text end

new text begin Industrial hemp. new text end

new text begin "Industrial hemp" means the plant Cannabis sativa L.
and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis.
new text end

new text begin Subd. 4. new text end

new text begin Marijuana. new text end

new text begin "Marijuana" has the meaning given in section 152.01,
subdivision 9.
new text end

Sec. 21.

new text begin [18K.035] PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Authorized activity. new text end

new text begin 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
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. Authorized activity under this section may
include collecting seed from wild hemp sources.
new text end

new text begin Subd. 2. new text end

new text begin Site registration. new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Rulemaking. new text end

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

Sec. 22.

new text begin [18K.04] AGRICULTURAL CROP; POSSESSION AUTHORIZED.
new text end

new text begin Industrial hemp is an agricultural crop in this state. A person may possess, transport,
process, sell, or buy industrial hemp that is grown pursuant to this chapter.
new text end

Sec. 23.

new text begin [18K.05] LICENSING.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement; issuance; presumption. new text end

new text begin (a) A person must obtain a
license from the commissioner before growing industrial hemp for commercial purposes.
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. 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.
new text end

new text begin (b) 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.
new text end

new text begin (c) A person licensed under this section is presumed to be growing industrial hemp
for commercial purposes.
new text end

new text begin Subd. 2. new text end

new text begin Background check; data classification. new text end

new text begin 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. 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.
new text end

new text begin Subd. 3. new text end

new text begin Federal requirements. new text end

new text begin The applicant must demonstrate to the satisfaction
of the commissioner that the applicant has complied with all applicable federal
requirements pertaining to the production, distribution, and sale of industrial hemp.
new text end

Sec. 24.

new text begin [18K.06] ANNUAL REPORT; SALES NOTIFICATION.
new text end

new text begin (a) Annually, a licensee must file with the commissioner:
new text end

new text begin (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
new text end

new text begin (2) a copy of any contract to grow industrial hemp.
new text end

new text begin (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.
new text end

Sec. 25.

new text begin [18K.07] RULEMAKING.
new text end

new text begin (a) The commissioner shall adopt rules governing the production, testing, and
licensing of industrial hemp, including, but not limited to:
new text end

new text begin (1) supervising and inspecting industrial hemp during its growth and harvest;
new text end

new text begin (2) testing industrial hemp to determine delta-9 tetrahydrocannabinol levels;
new text end

new text begin (3) using the results of the background checks required under section 18K.05 to
approve or deny a license application; and
new text end

new text begin (4) any other rule or procedure necessary to carry out the purposes of this chapter.
new text end

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

Sec. 26.

new text begin [18K.08] FEES.
new text end

new text begin Fees collected under this chapter must be credited to the industrial hemp account,
which is hereby established in the agricultural fund in the state treasury. Interest earned
in the account accrues to the account. Funds in the industrial hemp account are annually
appropriated to the commissioner to implement and enforce this chapter.
new text end

Sec. 27.

new text begin [18K.09] DEFENSE FOR POSSESSION OF MARIJUANA.
new text end

new text begin It is an affirmative defense to a prosecution for the possession of marijuana under
chapter 152 if:
new text end

new text begin (1) the defendant possesses industrial hemp grown pursuant to this chapter; and
new text end

new text begin (2) the defendant has a valid controlled substance registration from the United States
Department of Justice, Drug Enforcement Administration, if required under federal law.
new text end

Sec. 28.

Minnesota Statutes 2014, section 152.01, subdivision 9, is amended to read:


Subd. 9.

Marijuana.

"Marijuana" means all parts of the plant of any species of
the genus Cannabis, including all agronomical varieties, whether growing or not; the
seeds thereof; the resin extracted from any part of such plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin, but
shall not include the mature stalks of such plant, fiber from such stalks, oil or cake made
from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of such mature stalks, except the resin extracted therefrom, fiber, oil, or
cake, or the sterilized seed of such plant which is incapable of germination.new text begin Marijuana
does not mean industrial hemp as defined in section 18K.03.
new text end

Sec. 29.

Minnesota Statutes 2014, section 375.30, subdivision 2, is amended to read:


Subd. 2.

Wild hemp.

A county board, by resolution, may appropriate and spend
money as necessary to spray and otherwise eradicate wild hempdeleted text begin, commonly known asdeleted text end
deleted text beginmarijuana,deleted text end on private property within the county. The county board may authorize the
use of county equipment, personnel and supplies and materials to spray or otherwise
eradicate wild hemp on private property, and may pro rate the expenses involved between
the county and owner or occupant of the property.new text begin Industrial hemp grown by a person
licensed under chapter 18K is not wild hemp.
new text end

Sec. 30. new text beginEFFECTIVE DATE.
new text end

new text begin (a) Section 25 is effective the day after the federal government authorizes the
commercial production of industrial hemp in this country.
new text end

new text begin (b) All other sections in this act are effective the day following final enactment.
new text end