2018 Farm Bill Subtitle G - Hemp Production

‘‘Subtitle G—Hemp Production
‘‘SEC. 297A. DEFINITIONS.

‘‘In this subtitle:
‘‘(1) HEMP.—The term ‘hemp’ means the plant Cannabis
sativa L. and any part of that plant, including the seeds thereof
and all derivatives, extracts, cannabinoids, isomers, acids,
salts, and salts of isomers, whether growing or not, with a
delta-9 tetrahydrocannabinol concentration of not more than
0.3 percent on a dry weight basis.
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5304).
‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary
of Agriculture.
‘‘(4) STATE.—The term ‘State’ means—
‘‘(A) a State;
‘‘(B) the District of Columbia;
‘‘(C) the Commonwealth of Puerto Rico; and
‘‘(D) any other territory or possession of the United
States.

V

‘‘(5) STATE DEPARTMENT OF AGRICULTURE.—The term ‘State
department of agriculture’ means the agency, commission, or
department of a State government responsible for agriculture in
the State.
‘‘(6) TRIBAL GOVERNMENT.—The term ‘Tribal government’
means the governing body of an Indian tribe.

‘‘SEC. 297B. STATE AND TRIBAL PLANS.

‘‘(a) SUBMISSION.—
‘‘(1) IN GENERAL.—A State or Indian tribe desiring to have
primary regulatory authority over the production of hemp in the
State or territory of the Indian tribe shall submit to the Secretary,
through the State department of agriculture (in consultation
with the Governor and chief law enforcement officer of
the State) or the Tribal government, as applicable, a plan under
which the State or Indian tribe monitors and regulates that
production as described in paragraph (2).
‘‘(2) CONTENTS.—A State or Tribal plan referred to in paragraph
(1)—
‘‘(A) shall only be required to include—
‘‘(i) a practice to maintain relevant information regarding
land on which hemp is produced in the State
or territory of the Indian tribe, including a legal description
of the land, for a period of not less than 3 calendar
years;
‘‘(ii) a procedure for testing, using postdecarboxylation
or other similarly reliable methods,
delta-9 tetrahydrocannabinol concentration levels of

hemp produced in the State or territory of the Indian
tribe;
‘‘(iii) a procedure for the effective disposal of—
‘‘(I) plants, whether growing or not, that are
produced in violation of this subtitle; and
‘‘(II) products derived from those plants;
‘‘(iv) a procedure to comply with the enforcement
procedures under subsection (e);
‘‘(v) a procedure for conducting annual inspections
of, at a minimum, a random sample of hemp producers
to verify that hemp is not produced in violation of this
subtitle;
‘‘(vi) a procedure for submitting the information
described in section 297C(d)(2), as applicable, to the
Secretary not more than 30 days after the date on
which the information is received; and
‘‘(vii) a certification that the State or Indian tribe
has the resources and personnel to carry out the practices
and procedures described in clauses (i) through
(vi); and
‘‘(B) may include any other practice or procedure established
by a State or Indian tribe, as applicable, to the extent that the practice
or procedure is consistent with this
subtitle.
‘‘(3) RELATION TO STATE AND TRIBAL LAW.—
‘‘(A) NO PREEMPTION.—Nothing in this subsection preempts
or limits any law of a State or Indian tribe that—
‘‘(i) regulates the production of hemp; and
‘‘(ii) is more stringent than this subtitle.
‘‘(B) REFERENCES IN PLANS.—A State or Tribal plan referred
to in paragraph (1) may include a reference to a law
of the State or Indian tribe regulating the production of
hemp, to the extent that law is consistent with this subtitle.
‘‘(b) APPROVAL.—
‘‘(1) IN GENERAL.—Not later than 60 days after receipt of a
State or Tribal plan under subsection (a), the Secretary shall—
‘‘(A) approve the State or Tribal plan if the State or
Tribal plan complies with subsection (a); or
‘‘(B) disapprove the State or Tribal plan only if the
State or Tribal plan does not comply with subsection (a).
‘‘(2) AMENDED PLANS.—If the Secretary disapproves a State
or Tribal plan under paragraph (1)(B), the State, through the
State department of agriculture (in consultation with the Governor
and chief law enforcement officer of the State) or the Tribal
government, as applicable, may submit to the Secretary an
amended State or Tribal plan that complies with subsection (a).
‘‘(3) CONSULTATION.—The Secretary shall consult with the
Attorney General in carrying out this subsection.

‘‘(c) AUDIT OF STATE COMPLIANCE.—
‘‘(1) IN GENERAL.—The Secretary may conduct an audit of
the compliance of a State or Indian tribe with a State or Tribal
plan approved under subsection (b).
‘‘(2) NONCOMPLIANCE.—If the Secretary determines under
an audit conducted under paragraph (1) that a State or Indian
tribe is not materially in compliance with a State or Tribal
plan—
‘‘(A) the Secretary shall collaborate with the State or
Indian tribe to develop a corrective action plan in the case
of a first instance of noncompliance; and
‘‘(B) the Secretary may revoke approval of the State or
Tribal plan in the case of a second or subsequent instance
of noncompliance.
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may provide technical
assistance to a State or Indian tribe in the development of a
State or Tribal plan under subsection (a).
‘‘(e) VIOLATIONS.—
‘‘(1) IN GENERAL.—A violation of a State or Tribal plan approved
under subsection (b) shall be subject to enforcement solely
in accordance with this subsection.
‘‘(2) NEGLIGENT VIOLATION.—
‘‘(A) IN GENERAL.—A hemp producer in a State or the
territory of an Indian tribe for which a State or Tribal plan
is approved under subsection (b) shall be subject to subparagraph
(B) of this paragraph if the State department of
agriculture or Tribal government, as applicable, determines
that the hemp producer has negligently violated the State
or Tribal plan, including by negligently—
‘‘(i) failing to provide a legal description of land on
which the producer produces hemp;
‘‘(ii) failing to obtain a license or other required
authorization from the State department of agriculture
or Tribal government, as applicable; or
‘‘(iii) producing Cannabis sativa L. with a delta-9
tetrahydrocannabinol concentration of more than 0.3
percent on a dry weight basis.
‘‘(B) CORRECTIVE ACTION PLAN.—A hemp producer described
in subparagraph (A) shall comply with a plan established
by the State department of agriculture or Tribal
government, as applicable, to correct the negligent violation,
including—
‘‘(i) a reasonable date by which the hemp producer
shall correct the negligent violation; and
‘‘(ii) a requirement that the hemp producer shall
periodically report to the State department of agriculture
or Tribal government, as applicable, on the
compliance of the hemp producer with the State or
Tribal plan for a period of not less than the next 2 calendar

years.
‘‘(C) RESULT OF NEGLIGENT VIOLATION.—A hemp producer
that negligently violates a State or Tribal plan under
subparagraph (A) shall not as a result of that violation be
subject to any criminal enforcement action by the Federal
Government or any State government, Tribal government,
or local government.
‘‘(D) REPEAT VIOLATIONS.—A hemp producer that negligently
violates a State or Tribal plan under subparagraph
(A) 3 times in a 5-year period shall be ineligible to produce
hemp for a period of 5 years beginning on the date of the
third violation.
‘‘(3) OTHER VIOLATIONS.—
‘‘(A) IN GENERAL.—If the State department of agriculture
or Tribal government in a State or the territory of
an Indian tribe for which a State or Tribal plan is approved
under subsection (b), as applicable, determines that
a hemp producer in the State or territory has violated the
State or Tribal plan with a culpable mental state greater
than negligence—
‘‘(i) the State department of agriculture or Tribal
government, as applicable, shall immediately report
the hemp producer to—
‘‘(I) the Attorney General; and
‘‘(II) the chief law enforcement officer of the
State or Indian tribe, as applicable; and
‘‘(ii) paragraph (1) of this subsection shall not
apply to the violation.
‘‘(B) FELONY.—
‘‘(i) IN GENERAL.—Except as provided in clause (ii),
any person convicted of a felony relating to a controlled
substance under State or Federal law before, on, or
after the date of enactment of this subtitle shall be ineligible,
during the 10-year period following the date of
the conviction—
‘‘(I) to participate in the program established
under this section or section 297C; and
‘‘(II) to produce hemp under any regulations or
guidelines issued under section 297D(a).
‘‘(ii) EXCEPTION.—Clause (i) shall not apply to any
person growing hemp lawfully with a license, registration,
or authorization under a pilot program authorized
by section 7606 of the Agricultural Act of 2014 (7
U.S.C. 5940) before the date of enactment of this subtitle.
‘‘(C) FALSE STATEMENT.—Any person who materially
falsifies any information contained in an application to
participate in the program established under this section
shall be ineligible to participate in that program.

‘‘(f) EFFECT.—Nothing in this section prohibits the production of
hemp in a State or the territory of an Indian tribe—
‘‘(1) for which a State or Tribal plan is not approved under
this section, if the production of hemp is in accordance with section
297C or other Federal laws (including regulations); and
‘‘(2) if the production of hemp is not otherwise prohibited
by the State or Indian tribe.

‘‘SEC. 297C. DEPARTMENT OF AGRICULTURE.

‘‘(a) DEPARTMENT OF AGRICULTURE PLAN.—
‘‘(1) IN GENERAL.—In the case of a State or Indian tribe for
which a State or Tribal plan is not approved under section
297B, the production of hemp in that State or the territory of
that Indian tribe shall be subject to a plan established by the
Secretary to monitor and regulate that production in accordance
with paragraph (2).
‘‘(2) CONTENT.—A plan established by the Secretary under
paragraph (1) shall include—
‘‘(A) a practice to maintain relevant information regarding
land on which hemp is produced in the State or
territory of the Indian tribe, including a legal description
of the land, for a period of not less than 3 calendar years;
‘‘(B) a procedure for testing, using post-decarboxylation
or other similarly reliable methods, delta-9
tetrahydrocannabinol concentration levels of hemp produced
in the State or territory of the Indian tribe;
‘‘(C) a procedure for the effective disposal of—
‘‘(i) plants, whether growing or not, that are produced
in violation of this subtitle; and
‘‘(ii) products derived from those plants;
‘‘(D) a procedure to comply with the enforcement procedures
under subsection (c)(2);
‘‘(E) a procedure for conducting annual inspections of,
at a minimum, a random sample of hemp producers to
verify that hemp is not produced in violation of this subtitle;
and
‘‘(F) such other practices or procedures as the Secretary
considers to be appropriate, to the extent that the practice
or procedure is consistent with this subtitle.
‘‘(b) LICENSING.—The Secretary shall establish a procedure to
issue licenses to hemp producers in accordance with a plan established
under subsection (a).
‘‘(c) VIOLATIONS.—
‘‘(1) IN GENERAL.—In the case of a State or Indian tribe for
which a State or Tribal plan is not approved under section
297B, it shall be unlawful to produce hemp in that State or the

territory of that Indian tribe without a license issued by the
Secretary under subsection (b).
‘‘(2) NEGLIGENT AND OTHER VIOLATIONS.—A violation of a
plan established under subsection (a) shall be subject to enforcement
in accordance with paragraphs (2) and (3) of section
297B(e), except that the Secretary shall carry out that enforcement
instead of a State department of agriculture or Tribal government.
‘‘(3) REPORTING TO ATTORNEY GENERAL.—In the case of a
State or Indian tribe covered by paragraph (1), the Secretary
shall report the production of hemp without a license issued by
the Secretary under subsection (b) to the Attorney General.
‘‘(d) INFORMATION SHARING FOR LAW ENFORCEMENT.—
‘‘(1) IN GENERAL.—The Secretary shall—
‘‘(A) collect the information described in paragraph (2);
And
‘‘(B) make the information collected under subparagraph
(A) accessible in real time to Federal, State, territorial,
and local law enforcement.
‘‘(2) CONTENT.—The information collected by the Secretary
under paragraph (1) shall include—
‘‘(A) contact information for each hemp producer in a
State or the territory of an Indian tribe for which—
‘‘(i) a State or Tribal plan is approved under section
297B(b); or
‘‘(ii) a plan is established by the Secretary under
this section;
‘‘(B) a legal description of the land on which hemp is
grown by each hemp producer described in subparagraph
(A); and
‘‘(C) for each hemp producer described in subparagraph
(A)—
‘‘(i) the status of—
‘‘(I) a license or other required authorization
from the State department of agriculture or Tribal
government, as applicable; or
‘‘(II) a license from the Secretary; and
‘‘(ii) any changes to the status.

‘‘SEC. 297D. REGULATIONS AND GUIDELINES; EFFECT ON OTHER LAW.
‘‘(a) PROMULGATION OF REGULATIONS AND GUIDELINES; REPORT.—
‘‘(1) REGULATIONS AND GUIDELINES.—
‘‘(A) IN GENERAL.—The Secretary shall promulgate regulations
and guidelines to implement this subtitle as expeditiously
as practicable.
‘‘(B) CONSULTATION WITH ATTORNEY GENERAL.—The
Secretary shall consult with the Attorney General on the
promulgation of regulations and guidelines under subparagraph
(A).

‘‘(2) REPORT.—The Secretary shall annually submit to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate a report containing updates on the implementation of
this subtitle.
‘‘(b) AUTHORITY.—Subject to subsection (c)(3)(B), the Secretary
shall have sole authority to promulgate Federal regulations and
guidelines that relate to the production of hemp, including Federal
regulations and guidelines that relate to the implementation of sections
297B and 297C.
‘‘(c) EFFECT ON OTHER LAW.—Nothing in this subtitle shall affect
or modify—
‘‘(1) the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
301 et seq.);
‘‘(2) section 351 of the Public Health Service Act (42 U.S.C.
262); or
‘‘(3) the authority of the Commissioner of Food and Drugs
and the Secretary of Health and Human Services—
‘‘(A) under—
‘‘(i) the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 301 et seq.); or
‘‘(ii) section 351 of the Public Health Service Act
(42 U.S.C. 262); or
‘‘(B) to promulgate Federal regulations and guidelines
that relate to the production of hemp under the Act described
in subparagraph (A)(i) or the section described in
subparagraph (A)(ii).

‘‘SEC. 297E. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated such sums as are necessary
to carry out this subtitle.’’.

SEC. 10114. INTERSTATE COMMERCE.

(a) RULE OF CONSTRUCTION.—Nothing in this title or an
amendment made by this title prohibits the interstate commerce of
hemp (as defined in section 297A of the Agricultural Marketing Act
of 1946 (as added by section 10113)) or hemp products.
(b) TRANSPORTATION OF HEMP AND HEMP PRODUCTS.—No State
or Indian Tribe shall prohibit the transportation or shipment of
hemp or hemp products produced in accordance with subtitle G of
the Agricultural Marketing Act of 1946 (as added by section 10113)
through the State or the territory of the Indian Tribe, as applicable.

++++++++++++++++++++++++++++++++++++++++++++++++
(8) Hemp production
The Senate amendment provision amends the Agricultural
Marketing Act of 1946 to allow States to regulate hemp production
based on a state or tribal plan. The amendment requires that such

plan includes information on locations of hemp production, testing
for THC concentration, disposal of plants that are out of compliance,
and negligence or other violations of the state or tribal plan.
It requires the Secretary to establish a plan, in consultation with
the U.S. Attorney General, for States and tribes without USDA approved
plans to monitor and regulate hemp production. The section
clarifies that nothing in this subtitle affects or modifies the Federal
Food, Drug, and Cosmetic Act or authorities of the HHS Secretary
and FDA Commissioner and clarifies that nothing in this title authorizes
interference with the interstate commerce of hemp. (Sections
10111 & 10112)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision with
amendment, including auditing authority and a grandfather clause
regarding program participation. (Sections 10113 and 10114)
In Sec. 297A, the Managers intend to clarify, within the hemp
production subtitle, that hemp is defined as the plant cannabis
sativa L, or any part of that plant, including seeds, derivatives, and
extracts, with a delta–9 tetrahydrocannabinol (THC) concentration
of not more than 0.3 percent on a dry weight basis.
In Sec. 297B, the Managers intend to authorize states and tribal
governments to submit a state plan to the Secretary for approval
to have primary regulatory authority over the growing and production
of hemp. The Managers do not intend to limit what states and
tribal governments include in their state or tribal plan, as long as
it is consistent with this subtitle. For example, states and tribal
governments are authorized to put more restrictive parameters on
the production of hemp, but are not authorized to alter the definition
of hemp or put in place policies that are less restrictive than
this title.

Within 60 days of receiving a state or tribal plan, the Secretary
must approve or deny the plan. The Secretary is required to consult
with the Attorney General regarding the approval or denial of
state plans, but the Managers intend for the final decision to be
made by the Secretary. The consultation with the Attorney General
should not alter the 60 day requirement to approve or deny a plan.
The Managers authorized the Secretary to audit state and tribal
compliance with an approved plan and take corrective action, including
revoking approval, based on a state or tribal government’s
noncompliance, as appropriate. The Managers intend to allow state
and tribal governments to appeal decisions by the Secretary pertaining
to a state or tribal plan for hemp production and do not intend
to preclude a state or tribal government from resubmitting a
new state or tribal plan for consideration at a later date. If a state
or tribal plan is denied or revoked, the Managers intend for hemp
production in that state or tribal area to fall under the Secretary’s
jurisdiction as authorized in section 297C.
The Secretary is authorized to provide technical assistance to
states and Indian tribes to aid in the development of a state or
tribal plan.

The Managers define negligent and other types of producer violations

that require enforcement under a state or tribal plan. The
Managers also set limits on who may participate in state or tribal
plans. Any person convicted of a felony relating to a controlled substance
shall be ineligible to participate under the state or tribal
plan for a 10-year period following the date of the conviction. However,
this prohibition shall not apply to producers who have been
lawfully participating in a state hemp pilot program as authorized
by the Agricultural Act of 2014, prior to enactment of this subtitle.
Subsequent felony convictions after the date of enactment of this
subtitle will trigger a 10-year nonparticipation period regardless of
whether the producer participated in the pilot program authorized
in 2014. Additionally, anyone who materially falsifies any information
in their application to participate in hemp production through
a state, tribal, or USDA plan shall be ineligible.

In Sec. 297C, the Managers intend to require the Secretary to
develop a USDA plan or plans to be implemented in states and
tribal territories that forego developing and submitting a state or
tribal hemp production plan. The Managers expect the USDA plan
or plans to meet the same content requirements as state and tribal
plans in Sec. 297B. The USDA plan may contain, as determined by
the Secretary, additional practices and procedures that are otherwise
consistent with this subtitle. It is the Managers intent that
the Secretary have discretion regarding the appropriate number of
plans, one or more than one, needed to implement Sec. 297C.

The Managers require the Secretary to collect, maintain, and
make accessible to Federal, state, territorial, and local law enforcement,
real-time information regarding the status of a license or
other authorization for all hemp producers, whether participating
under a state, tribal, or USDA plan. The Managers encourage the
Secretary to develop a memorandum of understanding with Federal
law enforcement agencies to define the parameters of this system
and to potentially share the costs of such information sharing system.
In Sec. 297D, the Managers clarify that the Secretary has the
sole authority to issue guidelines and regulations regarding the
production of hemp. However, nothing in this subtitle shall affect
or modify the authority granted to the Food and Drug Administration
and the Secretary of Health and Human Services under the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) or
section 351 of the Public Health Service Act (42 U.S.C. 262), including
for hemp-derived products. The Secretary is required to
consult with the Attorney General on the promulgation of regulations,
but ultimately, the regulations shall only be issued by the
Secretary of Agriculture. To ensure that the Secretary moves forward
with issuing regulations in as timely a fashion as possible,
the Secretary shall periodically report to Congress with updates regarding
implementation of this title.
While states and Indian tribes may limit the production and
sale of hemp and hemp products within their borders, the Managers,
in Sec. 10112, agreed to not allow such states and Indian
tribes to limit the transportation or shipment of hemp or hemp
products through the state or Indian territory.