K.S.A. Chapter 2

Article 39 - Commercial Industrial Hemp Act

Current through 2019 Legislative Session

2-3901          Commercial Industrial Hemp Act; citation; definitions.

2-3902          Same; industrial hemp research and cultivation; licensure; rules and regulations; fees; reports to the legislature.

2-3903          Same; alternative crop research act licensing fee fund.

2-3904          (Tentative statute number). Same; intent of the legislature; implementation shall be conducted in the least restrictive manner.

2-3905          (Tentative statute number) Same; plan to be submitted to United States Department of Agriculture.

2-3906          (Tentative statute number) Same; applications.

2-3907          (Tentative statute number) Same; registration; registry.

2-3908          (Tentative statute number) Same; unlawful acts.

2-3909          (Tentative statute number) Same; solid waste.

2-3901. Commercial Industrial Hemp Act; citation; definitions.

          (a) K.S.A. 2018 Supp. 2-3901 et seq., and amendments thereto, shall be known and may be cited as the commercial industrial hemp act.

          (b) As used in the commercial industrial hemp act:

          (1) "Commercial" means the cultivation or production of industrial hemp for purposes other than research as authorized under K.S.A. 2019 Supp. 2-3905 (tentative statute number), and amendments thereto.

          (2) "Delta-9 tetrahydrocannabinol concentration" means the combined percentage of delta-9 tetrahydrocannabinol and its optical isomers, their salts and acids, and salts of their acids, reported as free THC:

          (A) On a dry weight basis, of any part of the plant cannabis sativa L.; or

          (B) on a percentage by weight basis in hemp products, waste or substances resulting from the production or processing of industrial hemp.

          (3) "Effective disposal" includes, but is not limited to:

          (A) Destruction; or

          (B) any other method of disposing of industrial hemp or hemp products found to be in violation of this act that is permitted under the provisions of 7 U.S.C. § 1621 et seq. and any rules and regulations adopted thereunder.

          (4) "Hemp products" means all products made from industrial hemp, including, but not limited to, cloth, cordage, fiber, food, fuel, paint, paper, particleboard, plastics, seed, seed meal and seed oil for consumption and authorized seed or clone plants for cultivation, if the seeds originate from industrial hemp varieties.

          (5) "Hemp producer" means any individual, licensed or otherwise, engaging in the cultivation or production of industrial hemp for commercial purposes pursuant to K.S.A. 2019 Supp. 2-3905 (tentative statute number), and amendments thereto.

          (6) "Hemp processor" means a person registered under K.S.A. 2019 Supp. 2-3907 (tentative statute number), and amendments thereto, to process and manufacture industrial hemp and hemp products.

          (7) "Industrial hemp" means all parts and varieties of the plant cannabis sativa L., whether growing or not, that contain a delta-9 tetrahydrocannabinol concentration of not more than 0.3% on a dry weight basis.

          (8) "Person" means an individual, corporation, partnership, association, joint stock company, trust, unincorporated organization or any similar entity or any combination of the foregoing acting in concert.

          (9) "Seed research" means research conducted to develop or recreate better strains of industrial hemp, particularly for the purpose of seed production.

          (10) "State educational institution" means the university of Kansas, Kansas state university, Wichita state university, Emporia state university, Pittsburg state university and Fort Hays state university.

          (11) "Authorized seed or clone plants" means a source of industrial hemp seeds or clone plants that:

          (A) Has been certified by a certifying agency, as defined by K.S.A. 2-1415, and amendments thereto;

          (B) has been produced from plants that were tested during the active growing season and were found to produce industrial hemp having a tetrahydrocannabinol concentration that does not exceed 0.3% on a dry weight basis and has been certified in writing by the grower or distributor of such seeds or clone plants to possess such qualities; or

          (C) meets any other authorized standards approved by the Kansas department of agriculture through rules and regulations, except that no seed or clone plants shall be considered authorized seed or clone plants if they do not meet any standard adopted by the United States department of agriculture pursuant to 7 U.S.C. § 1621 et seq.

History: L. 2018, ch. 62, § 1; L. 2019, ch. 37, § 7; April 18.

2-3902. Same; industrial hemp research and cultivation; licensure; rules and regulations; fees; reports to the legislature.

          (a) The Kansas Department of Agriculture, alone or in coordination with a state educational institution, may cultivate industrial hemp grown from authorized seed or clone plants and promote the research and development of industrial hemp, in accordance with 7 U.S.C. § 5940. This research may include:

          (1) Oversight and analysis of growth of industrial hemp to conduct agronomy research and analysis of required soils, growing conditions and harvest methods relating to the production of various varieties of industrial hemp that may be suitable for various commercial hemp products;

          (2) seed research on various types of industrial hemp that are best suited to be grown in Kansas, including seed availability, creation of hybrid types, in-the-ground variety trials and seed production;

          (3) analysis on the economic feasibility of developing an industrial hemp market in various types of industrial hemp that can be grown in Kansas;

          (4) analysis on the estimated value-added benefits, including environmental benefits, that Kansas businesses would reap by having an industrial hemp market of Kansas-grown industrial hemp varieties;

          (5) a study on the agronomy research conducted worldwide relating to industrial hemp varieties, production and utilization;

          (6) a study on the feasibility of attracting federal and private funding for industrial hemp research; and

          (7) a pilot program in Russell county, and other counties as determined by the department, for the purpose of economic development, research, cultivation, market analysis, manufacturing and transportation of industrial hemp and industrial hemp products.

          (b) In the event that the department acts alone to cultivate industrial hemp grown from authorized seed or clone plants and to promote the research and development of industrial hemp, the secretary of agriculture shall establish an advisory board within the department to review and recommend applications for pilot projects and research proposals to the secretary. The secretary shall not approve any such project or proposal without the recommendation of the advisory board.

          (c) The department shall oversee and annually license all individuals participating in the cultivation, growth, research, oversight, study, analysis, transportation, processing or distribution of authorized seed or clone plants or industrial hemp pursuant to this section. The department shall establish fees for licenses, license renewals and other necessary expenses to defray the cost of implementing and operating the provisions of this section in this state on an ongoing basis. Any modification fee established by the department for any requested change to a license that was previously issued by the department under this section shall not exceed $50.

          (d)(1) The department shall require, as a qualification for initial or continuing licensure, all individuals seeking a license or license renewal under the research program established under this section to be fingerprinted and to submit to a state and national criminal history record check. The fingerprints shall be used to identify the individual and to determine whether the individual has a record of criminal history in this state or any other jurisdiction. The department is authorized to submit the fingerprints to the Kansas bureau of investigation and the federal bureau of investigation for a state and national criminal history record check. The department may use the information obtained from fingerprinting and the criminal history record check for purposes of verifying the identification of the individual and for making an official determination of the qualifications for initial or continuing licensure pursuant to this section and rules and regulations promulgated hereunder. Disclosure or use of any information received by the department for any purpose other than the purposes provided for in this section shall be a class A misdemeanor and shall constitute grounds for removal from office or termination of employment.

          (2) An individual who has been convicted of a felony violation of article 57 of chapter 21 of the Kansas Statutes Annotated, and amendments thereto, or a substantially similar offense in another jurisdiction, within the immediately preceding 10 years, shall be disqualified from initial or continuing licensure under this section.

          (3) The Kansas bureau of investigation may charge a reasonable fee for conducting a criminal history record check.

          (4) The individual seeking a license or license renewal under this section shall pay the costs of fingerprinting and the state and national criminal history record checks.

          (e) The secretary of agriculture shall promulgate rules and regulations to carry out the provisions of this section on or before December 31, 2019, except that no such promulgated rule or regulation shall concern the recording of license plates. Such rules and regulations shall include, but not be limited to, a requirement that license holders shall have a current license in their possession at all times that they are engaged in the cultivation, growth, research, oversight, study, analysis, transportation, processing or distribution of authorized seed or clone plants or industrial hemp pursuant to this section.

          (f) The department shall submit a report to the legislature outlining the steps and timeline to implement a process that would allow individuals and business entities to grow and process industrial hemp in Kansas and to sell industrial hemp in other states. Such report shall be submitted to the senate standing committee on agriculture and natural resources and the house standing committee on agriculture on or before January 14, 2019. The department shall send such committees an annual supplemental report on the continued progress of such process at the beginning of each regular legislative session for the following three years.

          (g) Nothing in this section shall be construed to authorize any individual to violate any state or federal law.

(h) The legislature shall review the provisions of this section prior to July 1, 2022.

History: L. 2018, ch. 62, § 2; L. 2019, ch. 37, § 8; April 18.

2-3903. Same; alternative crop research act licensing fee fund.

          (a)The alternative crop research act licensing fee fund created in the state treasury shall be renamed the commercial industrial hemp act licensing fee fund and continue to be administered by the secretary of agriculture. All expenditures from the commercial industrial hemp act licensing fee fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers signed by the secretary of agriculture or the secretary's designee.

          (b) Licensing and renewal fees shall be established pursuant to rules and regulations adopted by the secretary under the commercial industrial hemp act. The amounts received for such fees shall be deposited in the state treasury in accordance with K.S.A. 75-4215, and amendments thereto, and shall be credited to the commercial industrial hemp act licensing fee fund.

History: L. 2018, ch. 62, § 3; L. 2019, ch. 37, § 9; April 18.

2-3904. (Tentative statute number). Same; intent of the legislature; implementation shall be conducted in the least restrictive manner.

          (a) It is the intent of the legislature of the state of Kansas that the implementation of the commercial industrial hemp act by the Kansas department of agriculture shall be conducted in the least restrictive manner allowed under federal law.

          (b) This section shall be a part of and supplemental to the commercial industrial hemp act, K.S.A. 2018 Supp. 2-3901 et seq., and amendments thereto.

History: L. 2019, ch. 37, § 1; April 18.

2-3905. (Tentative statute number) Same; plan to be submitted to United States Department of Agriculture.

          (a) The Kansas department of agriculture, in consultation with the governor and attorney general, shall submit a plan to the United States department of agriculture under which the Kansas department of agriculture will monitor and regulate the commercial production of industrial hemp within the state in accordance with 7 U.S.C. § 1621 et seq. and any rules and regulations adopted thereunder.

          (b) Such plan shall include the following:

          (1) A procedure to maintain relevant information regarding land on which industrial hemp is produced, including a legal description of the land, for a period of not less than three calendar years;

          (2) a procedure for testing, using post-decarboxylation or other similarly reliable methods, the delta-9 tetrahydrocannabinol concentration levels of industrial hemp produced;

          (3) a procedure for the effective disposal of industrial hemp and hemp products that are found to be in violation of this act;

          (4) any licensing requirements or other rules and regulations deemed necessary by the Kansas department of agriculture for the proper monitoring and regulation of industrial hemp cultivation and production for commercial purposes, including, but not limited to, fees for licenses, license renewals and other necessary expenses to defray the cost of implementing and operating the plan on an ongoing basis;

          (5) a procedure for the creation of documentation that any person in possession of unprocessed industrial hemp may use to prove to any law enforcement officer that such industrial hemp was lawfully grown under this section;

          (6) a procedure for conducting annual inspections of, at a minimum, a random sample of hemp producers to verify that industrial hemp is not produced in violation of this act; and

          (7) any other procedures necessary to meet the requirements set forth in 7 U.S.C. § 1621 et seq. and any rules and regulations adopted thereunder.

          (c) (1) A hemp producer who negligently violates this section or any rules and regulations adopted hereunder shall not be subject to any state or local criminal enforcement action, but shall comply with the following corrective actions as applicable:

          (A) A reasonable date by which the hemp producer shall correct the negligent violation; and

          (B) a requirement that the hemp producer shall periodically report to the Kansas department of agriculture on the hemp producer's compliance with this section and rules and regulations adopted hereunder, for a period of not less than the next two calendar years.

          (2) A hemp producer who negligently violates this section or any rules and regulations adopted hereunder three times in a five-year period shall be ineligible to produce industrial hemp for a period of five years beginning on the date of the third violation.

          (3) The Kansas department of agriculture shall immediately report any violation by a hemp producer with a greater culpable mental state than negligence to the attorney general and such hemp producer shall not be subject to the exemption in subsection (c)(1).

          (d) Any individual otherwise eligible to become a licensed hemp producer shall not be eligible to produce industrial hemp if such individual has submitted any materially false information in any application to become a licensed hemp producer.

          (e)(1) The department shall require, as a qualification for initial or continuing licensure, all individuals seeking a license or license renewal as a hemp producer under this section to be fingerprinted and to submit to a state and national criminal history record check. The fingerprints shall be used to identify the individual and to determine whether the individual has a record of criminal history in this state or any other jurisdiction. The department is authorized to submit the fingerprints to the Kansas bureau of investigation and the federal bureau of investigation for a state and national criminal history record check. The department may use the information obtained from fingerprinting and the criminal history record check for purposes of verifying the identification of the individual and for making an official determination of the qualifications for initial or continuing licensure as a hemp producer pursuant to this section and rules and regulations promulgated hereunder. Disclosure or use of any information received by the department for any purpose other than the purposes provided for in the commercial industrial hemp act shall be a class A misdemeanor and shall constitute grounds for removal from office or termination of employment.

          (2) An individual who has been convicted of a felony violation of article 57 of chapter 21 of the Kansas Statutes Annotated, and amendments thereto, or a substantially similar offense in another jurisdiction, within the immediately preceding 10 years, shall be disqualified from initial or continuing licensure as a hemp producer under this section.

          (3) The Kansas bureau of investigation may charge a reasonable fee for conducting a criminal history record check.

          (4) The individual seeking a license or license renewal as a hemp producer under this section shall pay the costs of fingerprinting and the state and national criminal history record checks.

          (f) The secretary of agriculture shall promulgate rules and regulations to implement the plan submitted to the United States department of agriculture and to otherwise effectuate the provisions of this section.

          (g) Upon the repeal of 7 U.S.C. § 5940 or either the adoption of a federal plan by the United States department of agriculture that allows for the cultivation and production of industrial hemp for commercial purposes within the state or upon the adoption of rules and regulations by the Kansas secretary of agriculture that establish the cultivation and production of industrial hemp for commercial purposes within the state, the Kansas department of agriculture may discontinue the industrial hemp research program established pursuant to K.S.A. 2018 Supp. 2-

3902, and amendments thereto.

          (h) Any modification fee established by the department for any requested change to a license that was previously issued by the department under this section shall not exceed $50.

          (i) Any licensing or other fees collected pursuant to this section and any rules and regulations adopted hereunder shall be deposited in the commercial industrial hemp act licensing fee fund established by K.S.A. 2018 Supp. 2-3903, and amendments thereto, for all costs of the administration of the commercial production of industrial hemp.

          (j) This section shall be a part of and supplemental to the commercial industrial hemp act, K.S.A. 2018 Supp. 2-3901 et seq., and amendments thereto.

History: L. 2019, ch. 37, § 2; April 18.

2-3906. (Tentative statute number) Same; applications.

          The secretary of agriculture shall continue to accept any applications for licensure submitted under the provisions of K.S.A. 2018 Supp. 2-3902, and amendments thereto, for the 2019 growing season from March 1, 2019, through June 1, 2019.

History: L. 2019, ch. 37, § 3; April 18.

2-3907. (Tentative statute number) Same; registration; registry.

          (a) The Kansas department of agriculture shall create and maintain a registry of all hemp processors operating within the state of Kansas.

          (b) Any person engaging in the processing of industrial hemp shall register annually with the secretary of agriculture prior to processing industrial hemp, except as provided in subsection (f).

          (c) Registration shall expire annually on April 30. A registration fee, not to exceed $200, shall be established pursuant to rules and regulations adopted by the secretary.

          (d) Any person required to register as a hemp processor pursuant to this section shall submit an annual registration application on a form provided by the secretary that shall include, at a minimum:

          (1) The full legal name, date of birth, address and telephone number of the applicant. If the applicant is not an individual, the same information shall also be provided for all owners and the individual responsible for all industrial hemp processing and related activities performed by the applicant;

          (2) the physical location of any premises that will serve as a part of the applicant's industrial hemp processing operations;

          (3) a brief description of the industrial hemp processing methods, activities and products planned for production; and

          (4) certification that such applicant has fully complied with the fingerprinting and criminal history record check requirements contained in this section, if applicable. Any such applicant who provides a false statement of compliance with such requirements shall be guilty of a class C nonperson misdemeanor.

          (e) The Kansas department of agriculture shall provide an updated list of all hemp processors to the Kansas bureau of investigation and to the county sheriff in each county where a hemp processor is located as often as is reasonably required or requested.

          (f) No hemp processor who is licensed under K.S.A. 2018 Supp. 2-3902, and amendments thereto, shall be required to register pursuant to this section, but the secretary shall include such hemp processors in the list of registered hemp processors maintained by the Kansas department of agriculture pursuant to this section.

          (g) Fees collected pursuant to this section shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the commercial industrial hemp act licensing fee fund.

          (h) Except as provided in subsection (f), it shall be unlawful for any person to operate as a hemp processor without valid registration.

          (i)(1) Upon a first conviction for a violation of subsection (h), a person shall be guilty of a class A nonperson misdemeanor.

          (2) On a second or subsequent conviction for a violation of subsection (h), a person shall be guilty of a severity level 9, nonperson felony.

          (j)(1) A registered hemp processor, or an applicant to become a registered hemp processor, shall request the Kansas bureau of investigation to conduct a state and national criminal history record check on any individual employed or seeking employment under such registered hemp processor or applicant who would be engaged in extraction of cannabinoids, including through the disposal of cannabinoids from industrial hemp, pursuant to section 6, and amendments thereto. The request for a state and national criminal history record check shall include the following:

          (A) The individual's fingerprints; and

          (B) a copy of a completed and signed statement furnished by the hemp processor that includes:

          (i) A waiver permitting the hemp processor to request and receive a criminal history record check for the purpose of determining the individual's qualification and fitness to process industrial hemp;

          (ii) the name, address and date of birth of the individual as it appears on a valid identification document;

          (iii) a disclosure of whether or not the individual has ever been convicted of or is the subject of pending charges for a criminal offense and, if convicted, a description of the crime and the result of the conviction; and

          (iv) a notice to the individual that they are entitled to obtain a copy of the criminal history record check to challenge the accuracy and completeness of any information contained in any such report before any final determination is made by the hemp processor.

          (2) A registered hemp processor, or an applicant to become a registered hemp processor, shall require such individual to be fingerprinted and to submit the fingerprints to the Kansas bureau of investigation and the federal bureau of investigation for a state and national criminal history record check. Such hemp processor or applicant shall use the fingerprints to identify the individual and to determine whether the individual has a record of criminal history in this state or other jurisdictions or countries. The hemp processor may use the information obtained from the fingerprints and such state and national criminal history record checks in the official determination of the qualifications and fitness of the individual to process industrial hemp. Disclosure or use of any information received by the hemp processor for any purpose other than the purposes provided for in the

commercial industrial hemp act shall be a class A nonperson misdemeanor.

          (3) Local and state law enforcement officers and agencies shall assist the hemp processor in taking and processing such individual's fingerprints as authorized by this section.

          (4) The Kansas bureau of investigation shall release all records of the individual's adult convictions and adult convictions from another state, jurisdiction or country, to the hemp processor to make a final determination of the qualification of such individual to process industrial hemp.

          (5) An individual who has been convicted of a felony violation of article 57 of chapter 21 of the Kansas Statutes Annotated, and amendments thereto, or a substantially similar offense in another jurisdiction, within the immediately preceding 10 years, shall be disqualified from processing industrial hemp under this section.

          (6) A hemp processor shall be solely responsible for making any determination that an individual's criminal history record shows that such individual has been convicted of a crime that bears upon the fitness of such individual to extract cannabinoids from industrial hemp. This section does not require the Kansas bureau of investigation to make such a determination on behalf of any hemp processor.

          (7) The Kansas bureau of investigation may charge a reasonable fee for conducting a criminal history record check.

          (8) A registered hemp processor, or an applicant to become a registered hemp processor, shall pay the costs of fingerprinting and the state and national criminal history record checks for individuals seeking employment under such hemp processor or applicant.

          (k) The secretary shall promulgate rules and regulations to carry out the provisions of this section.

          (l) This section shall be a part of and supplemental to the commercial industrial hemp act, K.S.A. 2018 Supp. 2-3901 et seq., and amendments thereto.

History: L. 2019, ch. 37, § 4; April 18.

2-3908. (Tentative statute number) Same; unlawful acts.

          (a)(1) It shall be unlawful for any of the following hemp products to be manufactured, marketed, sold or distributed by any person in the state of Kansas:

          (A) Cigarettes containing industrial hemp;

          (B) cigars containing industrial hemp;

          (C) chew, dip or other smokeless material containing industrial hemp;

          (D) teas containing industrial hemp;

          (E) liquids, solids or gases containing industrial hemp for use in vaporizing devices; and

          (F) any other hemp product intended for human or animal consumption containing any ingredient derived from industrial hemp that is prohibited pursuant to the Kansas food, drug and cosmetic act, K.S.A. 65-636 et seq., and amendments thereto, and the commercial feeding stuffs act, K.S.A. 2-1001 et seq., and amendments thereto. This subparagraph shall not otherwise prohibit the use of any such ingredient, including cannabidiol oil, in such hemp products.

          (2) As used in this subsection:

          (A) "Human or animal consumption" means:

          (i) Ingested orally; or

          (ii) applied by any means such that an ingredient derived from industrial hemp enters the human or animal body.

          (B) "Intended for human or animal consumption" means:

          (i) Designed by the manufacturer for human or animal

consumption;

          (ii) marketed for human or animal consumption; or

          (iii) distributed with the intent that it be used for human or animal

consumption.

          (b) It shall be unlawful for any of the following hemp products to be marketed, sold or distributed to any person in Kansas who is not registred as a hemp processor pursuant to section 4, and amendments thereto, or who does not possess a license by the Kansas department of agriculture under any commercial plan established pursuant to section 2, and amendments thereto, or the research program established pursuant to K.S.A. 2018 Supp. 2-3902, and amendments thereto:

          (1) Industrial hemp buds;

          (2) ground industrial hemp floral material; or

          (3) ground industrial hemp leaf material.

          (c)(1) Upon a first conviction for a violation of this section, a person shall be guilty of a class A nonperson misdemeanor.

          (2) On a second or subsequent conviction for a violation of this section, a person shall be guilty of a severity level 9, nonperson felony.

          (d) Nothing in this section shall prohibit:

          (1) The use of any hemp product for research purposes by a state educational institution or affiliated entity; or

          (2) the production, use or sale of any hemp product that is otherwise not prohibited by state or federal law.

          (e) This section shall be a part of and supplemental to the commercial industrial hemp act, K.S.A. 2018 Supp. 2-3901 et seq., and amendments thereto.

History: L. 2019, ch. 37, § 5; April 18.

2-3909. (Tentative statute number) Same; solid waste.

          (a)(1) All solid waste, as defined in K.S.A. 65-3402, and amendments thereto, and all hazardous waste, as defined in K.S.A. 65-3430, and amendments thereto, resulting from the cultivation, production or processing of industrial hemp under the commercial industrial hemp act shall be managed in accordance with all applicable solid and hazardous waste laws and regulations and the requirements of subsection (a)(2).

          (2)(A) If any such waste can be used in the same manner as, or has the appearance of, a controlled substance, as defined in K.S.A. 65- 4101, and amendments thereto, all such waste shall be rendered unusable and unrecognizable before the waste is transported or disposed.

          (B) This requirement shall not apply to waste that is managed as a hazardous waste and sent to a hazardous waste facility, as defined in K.S.A. 65-3430, and amendments thereto.

          (3) For the purposes of this section, "unusable and unrecognizable" means that such waste can not be used in the same manner as, and does not have the appearance of, a controlled substance, as defined in K.S.A. 65-4101, and amendments thereto.

          (b) Any violation of this section shall be considered an unlawful act for the purposes of K.S.A. 65-3409, and amendments thereto.

          (c) This section shall be a part of and supplemental to the commercial industrial hemp act, K.S.A. 2018 Supp. 2-3901 et seq., and amendments thereto.

History: L. 2019, ch. 37, § 6; April 18.