| Summary |
Current law requires the manufacturer of cosmetic products,
dietary supplements, food products, and food additives, including hemp
products, to be registered with the department of public health and
environment (department).
The bill creates a new framework for the department to regulate
and register hemp products and certain intoxicating hemp products and
for the marijuana enforcement division in the department of revenue
(division) to regulate intoxicating products or potentially intoxicating
compounds that are or may be cannabinoids. This regulation includes:
•
The power to promulgate rules authorizing or prohibiting
chemical modification, conversion, or synthetic derivation
to create certain types of intoxicating cannabinoids;
•
Labeling and advertising requirements;
•
Production and testing requirements; and
•
Inspection, record-keeping, and tracking requirements.
Hemp- and marijuana-derived compounds and cannabinoids are
classified into three classifications:
•
Nonintoxicating cannabinoids;
•
Potentially intoxicating compounds; and
•
Intoxicating cannabinoids.
Nonintoxicating cannabinoids that are derived from hemp may be
produced, distributed, or sold as a hemp product. With the exception of
products manufactured or produced for export, which are referred to as
safe harbor hemp products, products containing potentially intoxicating
compounds and intoxicating cannabinoids must only be produced,
distributed, or sold by a person licensed by the division to produce,
distribute, or sell the compound or cannabinoid as a product.
The bill clarifies that:
•
Nonintoxicating cannabinoids, potentially intoxicating
compounds, and intoxicating cannabinoids are marijuana
or marijuana products for the purposes of the retail
marijuana sales tax; and
•
A person must be licensed to manufacture potentially
intoxicating compounds or intoxicating cannabinoids.
The bill prohibits the following acts:
•
Manufacturing, selling, or delivering products that contain
intoxicating cannabinoids in excess of limits established by
rule;
•
Manufacturing a product containing hemp that is not a
cosmetic, a dietary supplement, a food, a food additive, or
an herb; or
•
Manufacturing, producing, selling, distributing, or holding
for sale or distribution a safe harbor hemp product without
registering with the department.
The penalty for a violation is up to $10,000. The bill specifies
factors to consider in determining the amount of the penalty.
The bill requires the executive director of the department of
revenue to analyze the feasibility of establishing a standing committee to
evaluate cannabinoids and cannabis-derived products for the purpose of
determining and making recommendations regarding their safety profiles
and potential for intoxication. The department of revenue may engage
experts to do this analysis.
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