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SF 4040

as introduced - 91st Legislature (2019 - 2020) Posted on 03/10/2020 09:25am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to agriculture; modifying provisions related to industrial hemp; providing
for sale of certain hemp products; amending Minnesota Statutes 2018, sections
18K.04, subdivisions 1, 3; 18K.06; 31.01, subdivision 30; 34A.02; Minnesota
Statutes 2019 Supplement, section 151.72, subdivision 4; proposing coding for
new law in Minnesota Statutes, chapter 31.

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

Section 1.

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 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 deleted text beginanddeleted text endnew text begin,new text end the legal description of the land area or areas where industrial
hemp will be grown by the applicantnew text begin, and attestation of whether the industrial hemp grown
by the applicant will be transported, processed, distributed, or sold outside of Minnesota
new text end.

(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.

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

Sec. 2.

Minnesota Statutes 2018, section 18K.04, subdivision 3, is amended to read:


Subd. 3.

Federal requirements.

new text begin(a) new text endThe 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 begin (b) The applicant is exempt from this subdivision if (1) the applicant attests that the
industrial hemp grown will not be transported, processed, distributed, or sold outside of
Minnesota, or (2) the applicant is otherwise exempt from federal requirements pertaining
to the production, distribution, and sale of industrial hemp.
new text end

Sec. 3.

Minnesota Statutes 2018, section 18K.06, is amended to read:


18K.06 RULEMAKING.

(a) The commissioner shall adopt rules governing the production, testing, 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 new text beginfor industrial hemp that is grown in Minnesota and
transported, distributed, or sold across state lines
new text endmust be consistent with federal law
regarding the production, distribution, and sale of industrial hemp.

Sec. 4.

Minnesota Statutes 2018, section 31.01, subdivision 30, is amended to read:


Subd. 30.

Food additive.

"Food additive" means any substance the intended use of
which results or may be reasonably expected to result, directly or indirectly, in its becoming
a component or otherwise affecting the characteristics of any food; including any substance
intended for use in producing, manufacturing, packing, processing, preparing, treating,
packaging, transporting, or holding food; and including any source of radiation intended
for any such use; if such substance is not generally recognized, among experts qualified by
scientific training and experience to evaluate its safety, as having been adequately shown
through scientific procedures, or in the case of a substance used in a food prior to January
1, 1958, through either scientific procedures or experience based on common use in food,
to be safe under the conditions of its intended use; except that such term does not include:

(1) a pesticide chemical in or on a raw agricultural commodity;

(2) a pesticide chemical to the extent that it is intended for use or is used in the production,
storage, or transportation of any raw agricultural commodity;

(3) a color additive; deleted text beginor
deleted text end

(4) any substance used in accordance with a sanction or approval granted prior to the
enactment of the food additives amendment of 1958, pursuant to the federal act; the Poultry
Products Inspection Act (United States Code, title 21, section 451 et seq.) of the Meat
Inspection Act of March 4, 1907 (Statutes at Large, volume 34, page 1260), as amended
and extended (United States Code, title 21, section 71 et seq.)deleted text begin.deleted text endnew text begin; or
new text end

new text begin (5) hemp extract as defined in section 31.98, subdivision 1, paragraph (d).
new text end

Sec. 5.

new text begin [31.98] SALE OF HEMP EXTRACT FOOD PRODUCTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Batch" means a specific quantity of hemp plants that are from the same seed or
plant stock, cultivated and harvested together, and that receive identical propagation and
cultivation treatment.
new text end

new text begin (c) "Hemp" has the meaning given to "industrial hemp" in section 18K.02, subdivision
3.
new text end

new text begin (d) "Hemp extract" means a substance or a compound intended for ingestion that contains
hemp or a derivative of hemp. Hemp extract does not include hemp that has been approved
as a drug by the United State Food and Drug Administration or a product covered by section
151.72.
new text end

new text begin (e) "Hemp extract food product" means food that contains a hemp extract.
new text end

new text begin Subd. 2. new text end

new text begin Sale. new text end

new text begin Notwithstanding any other section of this chapter or chapter 34A, a hemp
extract food product may be sold for human or animal consumption if all the requirements
of this section are met.
new text end

new text begin Subd. 3. new text end

new text begin Hemp extract food product requirements. new text end

new text begin (a) A person may not sell or
distribute in this state a hemp extract food product unless the hemp extract contained in the
food product is derived from a hemp batch that (1) contains a total delta-9
tetrahydrocannabinol concentration level not exceeding 0.3 percent on a dry-weight basis,
and (2) does not contain contaminants unsafe for human or animal consumption.
new text end

new text begin (b) Each hemp extract food product offered for sale or distributed in this state must
contain a certificate of analysis prepared by an independent testing laboratory that states
(1) the hemp extract contained in the food product has been tested by an independent testing
laboratory, and (2) the hemp extract food product meets the requirements of paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Labeling. new text end

new text begin (a) A hemp extract food product must have labeling that contains,
at a minimum:
new text end

new text begin (1) the name, location, contact telephone number, and website of the manufacturer of
the product;
new text end

new text begin (2) the name and address of the independent, accredited laboratory used by the
manufacturer to test the product;
new text end

new text begin (3) an accurate statement of the amount or percentage of cannabinoids found in each
unit of the product meant to be consumed; and
new text end

new text begin (4) a statement stating that this product does not claim to diagnose, treat, cure, or prevent
any disease and has not been evaluated or approved by the United States Food and Drug
Administration (FDA) unless the product has been so approved.
new text end

new text begin (b) The information required to be on the label must be prominently and conspicuously
placed and in terms that can be easily read and understood by a consumer.
new text end

new text begin (c) The labeling must not contain any claim that the product may be used or is effective
for the prevention, treatment, or cure of a disease or that it may be used to alter the structure
or function of human or animal bodies, unless the claim has been approved by the FDA.
new text end

Sec. 6.

Minnesota Statutes 2018, section 34A.02, is amended to read:


34A.02 ADULTERATION.

new text begin (a) new text endFood is adulterated if:

(1) it bears or contains any poisonous or deleterious substance which may render it
injurious to health; but if the substance is not an added substance, the item is not adulterated
under this clause if the quantity of the substance in the item does not ordinarily render it
injurious to health;

(2) it bears or contains any added poisonous, deleterious, or nonnutritive substance,
other than one which is a pesticide in or on a raw agricultural commodity; a food additive;
or a color additive, that is unsafe within the meaning of section 31.122 or section 406 of
the federal act;

(3) it bears or contains, by administration of a substance to the live animal or otherwise,
an added poisonous or harmful substance, other than a pesticide in or on a raw agricultural
commodity, a food additive, or a color additive, that may, in the judgment of the
commissioner, make the article unfit for human food;

(4) it is unsafe or bears or contains any food additive that is unsafe within the meaning
of section 31.122 or section 409 of the federal act;

(5) it is or bears or contains any color additive that is unsafe within the meaning of
section 31.122 or section 706 of the federal act;

(6) it is a raw agricultural commodity and it bears or contains a pesticide that is unsafe
within the meaning of section 31.122 or section 408 of the federal act;

(7) it consists in whole or in part of a diseased, contaminated, filthy, putrid, or
decomposed substance, or if it is otherwise unfit for food;

(8) it has been produced, prepared, packed, or held under unsanitary conditions whereby
it may have become contaminated with filth, or whereby it may have been rendered diseased,
unwholesome, or injurious to health;

(9) it is in whole or in part the product of a diseased animal or of an animal which has
died otherwise than by slaughter that is unsafe within the meaning of section 402(a)(1) or
(2) of the federal act, or of an animal that has been fed upon the uncooked offal from a
slaughterhouse;

(10) its container is wholly or partly composed of any poisonous or deleterious substance
that may render the contents injurious to health;

(11) it has been intentionally subjected to radiation, unless the use of the radiation was
in conformity with a rule, regulation, or exemption in effect pursuant to section 31.122 or
section 409 of the federal act;

(12) any valuable constituent has been in whole or in part omitted or abstracted from
the food; if any substance has been substituted wholly or in part for the food; or if damage
or inferiority has been concealed in any manner;

(13) any substance has been added to it or mixed or packed with it so as to increase its
bulk or weight, reduce its quality or strength, or make it appear better or of greater value
than it is;

(14) its composition or quality falls below or differs from that which it is purported or
is represented to possess by its labeling; or

(15) it is confectionery and:

(i) has partially or completely imbedded in the food any nonnutritive object, provided
that this clause does not apply in the case of any nonnutritive object if in the judgment of
the commissioner, as provided by rules, the object is of practical functional value to the
confectionery product and would not render the product injurious or hazardous to human
or animal health; or

(ii) bears or contains any nonnutritive substance; provided that this item does not apply
to a confection containing alcohol as defined in section 31.76, or a safe nonnutritive substance
which is in or on confectionery by reason of its use for some practical functional purpose
in the manufacture, packaging, or storing of the confectionery if the use of the substance
does not promote deception of the consumer or otherwise result in adulteration or
misbranding in violation of this chapter, and provided further that the commissioner may,
for the purpose of avoiding or resolving uncertainty as to the application of this clause, issue
rules allowing or prohibiting the use of particular nonnutritive substances.

new text begin (b) A food or beverage is not adulterated by the inclusion of hemp extract as defined in
section 31.98, subdivision 1, paragraph (d). The sale of food or beverages that contain hemp
extract is not restricted or prohibited based solely on the inclusion of hemp extract.
new text end

Sec. 7.

Minnesota Statutes 2019 Supplement, section 151.72, subdivision 4, is amended
to read:


Subd. 4.

Testing requirements.

(a) A manufacturer of a product regulated under this
section must submit representative samples of the product to an independent, accredited
laboratory in order to certify that the product complies with the standards adopted by the
board. Testing must be consistent with generally accepted industry standards for herbal and
botanical substances, and, at a minimum, the testing must confirm that the product:

(1) contains the amount or percentage of cannabinoids that is stated on the label of the
product;

(2) does not contain deleted text beginmore than trace amounts of any pesticides, fertilizers, or heavy
metals
deleted text endnew text begin contaminants that are unsafe for human or animal consumptionnew text end; and

(3) does not contain a delta-9 tetrahydrocannabinol concentration that exceeds the
concentration permitted for industrial hemp as defined in section 18K.02, subdivision 3.

(b) Upon the request of the board, the manufacturer of the product must provide the
board with the results of the testing required in this section.