Regular Session 2015-2016 Senate Bill 0050 P.N. 1597

PRIOR PRINTER'S NOS. 354, 1367, 1420

PRINTER'S NO. 1597

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

Session of

2015

INTRODUCED BY SCHWANK, FOLMER, TEPLITZ, FARNESE, LEACH,

YUDICHAK, WOZNIAK, McILHINNEY AND SMUCKER, FEBRUARY 12, 2015

AS AMENDED ON SECOND CONSIDERATION, MARCH 14, 2016

AN ACT

Establishing an industrial hemp industry in this Commonwealth;

conferring powers and imposing duties on the Department of

Agriculture; and THE LEGISLATIVE REFERENCE BUREAU;

prescribing penalties; AND ESTABLISHING AN ACCOUNT.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Industrial

Hemp Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agricultural pilot program." A pilot program to research

the growth, cultivation or marketing of industrial hemp in a

manner that:

(1) assures only the department or institutions of

higher education within this Commonwealth are utilized to

conduct such research; and

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(2) requires the department to permit and regulate the

institutions of higher education and sites, entities or

individuals utilized by the institutions of higher education

to grow or cultivate industrial hemp as allowed under this

act.

"Department." The Department of Agriculture of the

Commonwealth.

"Industrial hemp." The plant cannabis sativa l. and any part

of such plant, whether growing or not, with a delta-9

tetrahydrocannabinol concentration of not more than 0.3% on a

dry weight basis.

"Institution of higher education." As defined under section

101 of the Higher Education Act of 1965 (Public Law 89-329, 79

Stat. 1219).

"Secretary." The Secretary of Agriculture of the

Commonwealth.

Section 3. Industrial hemp.

(a) Authority.--The department shall have the authority to

regulate and permit industrial hemp under this act in a manner

consistent with the provisions of this act and all Federal laws,

regulations and orders, and notwithstanding any laws of the

Commonwealth to the contrary.

(b) Activities authorized.--Notwithstanding the Controlled

Substances Act (Public Law 91-513, 84 Stat. 1236), the Safe and

Drug-Free Schools and Communities Act (Public Law 107-110, 20

U.S.C. § 7101 et seq.), 41 U.S.C. Ch. 81 (relating to drug-free

workplace) or any other Federal law or the laws of this

Commonwealth, including the act of April 14, 1972 (P.L.233,

No.64), known as The Controlled Substance, Drug, Device and

Cosmetic Act, and 18 Pa.C.S. § 7508(a)(1)(relating to drug

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trafficking sentencing and penalties), the department under its

pilot program, or an institution of higher education within this

Commonwealth holding a permit from the department, may grow or

cultivate industrial hemp for the purpose of research, including

marketing studies.

oilseed in this Commonwealth.

Section 4. Department.

(a) Powers and duties.--The department shall have the

following powers and duties:

(1) To develop and implement regulations and permitting

requirements necessary to carry out the provisions of this

act, including research conducted under section 5.

(2) To issue, renew, deny, revoke, suspend or refuse to

renew permits to conduct research on the cultivation, growth

or marketing of industrial hemp.

(3) To develop an application for permits.

(4) To create and maintain a database of permitted

institutions of higher education and sites, entities or

individual growers whom the institutions have utilized.

(5) To inspect the facilities, sites, seeds, plants,

individual growers and other items or entities utilized by

each permitted institution of higher education to ensure

compliance with this act and regulations promulgated under

this act.

(6) To establish permit requirements for the use or

reuse of seeds, crops or products produced as the end result

of any approved research program undertaken by an institution

of higher education under this act.

(7) To establish, through regulation as set forth under

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section 6, reasonable permitting and inspection fees that may

not exceed the actual cost of administering this act.

(8) Notwithstanding any provisions of 3 Pa.C.S. Ch. 71

(relating to seed) and its attendant regulations, to regulate

the labeling and testing of industrial hemp and industrial

hemp seeds within this Commonwealth.

(9) To establish, through regulation as set forth under

section 6, guidelines for research conducted under section 5.

(b) Report.--Beginning one year after the effective date of

this act, and annually thereafter, the department shall submit

to the majority chairperson and minority chairperson of the

Agriculture and Rural Affairs Committee of the Senate and the

majority chairperson and minority chairperson of the Agriculture

and Rural Affairs Committee of the House of Representatives a

report detailing the following:

(1) The number of institutions of higher education,

sites, entities and individual growers permitted under this

act.

(2) A description of the regulations and permitting

requirements implemented since the previous report.

(3) Any suspensions, revocations, refusals to renew or

deny and the reasons for those dispositions.

(4) A financial accounting of the fees taken in and the

expenditures of the department to carry out this act.

(5) A summary of all research derived from this act.

(6) Any other information requested by the General

Assembly.

Section 5. Research.

The department may develop an agricultural pilot program and

may grow or cultivate industrial hemp for research purposes

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under the agricultural pilot program. In addition, an

institution of higher education located in this Commonwealth may

apply to the department to conduct research in accordance with

this act and the regulations promulgated under this act.

Section 6. Regulations.

(a) Requirement.--The department shall promulgate

regulations as necessary to implement this act. The regulations

shall include permitting requirements.

(b) Temporary regulations.--In order to facilitate the

implementation of this act, regulations promulgated by the

department shall be deemed temporary regulations which shall

expire not later than two years following the publication of the

temporary regulation. The temporary regulations shall include

permitting and other requirements necessary to implement the

provisions of this act. Temporary regulations shall not be

subject to:

(1) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(2) Sections 204(b) and 301(10) of the act of October

15, 1980 (P.L.950, No.164), known as the Commonwealth

Attorneys Act.

(3) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

temporary regulations under subsection (b) shall expire two

years after the effective date of this section. Regulations

adopted after this period shall be promulgated as provided by

law.

(d) Publication.--The department shall begin publishing

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temporary regulations in the Pennsylvania Bulletin no later than

three months following the effective date of this section.

Section 7. Contracted persons.

An institution of higher education holding a permit to

conduct an agricultural pilot program may contract with entities

and individual growers to the extent necessary to carry out the

program. The contract terms shall incorporate the provisions of

the permit issued to the institution of higher education. The

entity or individual grower shall be subject to the terms and

requirements of the permit issued to the institution of higher

education and to enforcement by the department for violations of

the provisions of this act, any regulation issued pursuant to

this act or the permit.

Section 8. Noncriminal offense.

Activities conducted in compliance with this act shall not be

in violation of the act of April 14, 1972 (P.L.233, No.64),

known as The Controlled Substance, Drug, Device and Cosmetic

Act, and 18 Pa.C.S. § 7508(a)(1) (relating to drug trafficking

sentencing and penalties) or any other law of this Commonwealth

regulating the growth or cultivation of industrial hemp.

Section 9. Criminal and civil penalties.

(a) Criminal penalties.--Any person that violates any of the

provisions of this act or any rules or regulations issued

pursuant to this act or who impedes, obstructs, hinders or

otherwise prevents or attempts to prevent the department in

performance of its duty in connection with the provisions of

this act or the regulations promulgated under this act commits a

summary offense and shall, upon conviction, be sentenced to pay

a fine of not less than $100 nor more than $300 for the first

violation and not less than $500 nor more than $1,000 for a

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subsequent violation that occurs within one year of the first

conviction.

(b) Civil penalties.--The following shall apply:

(1) In addition to any other remedy available at law or

in equity for a violation of this act, or the regulations

promulgated under this act, the department may assess a civil

penalty of not more than $5,000, plus cost of remediation,

containment or eradication, upon any person for each

violation of this act or a regulation promulgated or order

issued under authority of this act. The civil penalty

assessed shall be payable to the department. Such penalty

amount shall be collectible in any manner provided by law for

the collection of debt, including referring any collection

matter to the Office of Attorney General, which shall recover

such amount by action in the appropriate court.

(2) No civil penalty shall be assessed unless the person

has been given notice and an opportunity for a hearing on the

assessment in accordance with the provisions of 2 Pa.C.S.

Chs. 5 Subch. A (relating to practice and procedure of

Commonwealth agencies) and 7 Subch. A (relating to judicial

review of Commonwealth agency action).

provided for under this act, the Attorney General, at the

request of the secretary, may initiate, in the Commonwealth

Court or the court of common pleas of the county in which the

defendant resides or has his or her place of business, an action

in equity for an injunction to restrain any and all violations

of this act or the rules and regulations promulgated under this

act or an order of the department from which no timely appeal

has been taken or which has been sustained on appeal. In any

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such proceeding, the court shall, upon motion of the

Commonwealth, issue a preliminary injunction if it finds that

the defendant is engaging in conduct which is causing immediate

or irreparable harm to the public. The Commonwealth shall not be

required to furnish bond or other security in connection with

these proceedings. In addition to an injunction, the court may

levy civil penalties as provided for under this act.

Section 10. Disposition of funds.

(a) Deposit.--Money received from licensing, permitting

fees, fines and penalties shall be paid into a special

restricted account in the General Fund known as the Plant Pest

Management Account. All money deposited in the Plant Pest

Management Account is appropriated to the department for the

purpose of this act and the act of December 16, 1992 (P.L.1228,

No.162), known as the Plant Pest Act, and may not replace money

appropriated to the account as provided under subsection (b).

(b) Supplements.--The Plant Pest Management Account may be

supplemented by money received from the following sources:

(1) State funds appropriated by the General Assembly to

the department for purposes of this act.

(2) Federal funds appropriated to the department for

purposes of this act.

(3) Gifts and other contributions from public or private

sources for purposes of this act.

Section 11. Repeals.

All acts and parts of acts are repealed insofar as they are

inconsistent with this act.

Section 12. Expiration.

The provisions of this act shall expire 60 days after the

United States Department of Agriculture has been authorized to

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regulate industrial hemp.

Section 13. Effective date.

This act shall take effect in 60 days.

SECTION 2. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL

HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

"ACCOUNT." THE PLANT PEST MANAGEMENT ACCOUNT ESTABLISHED IN

SECTION 9.

"AGRICULTURAL PILOT PROGRAM." THE PROGRAM UNDER SECTION 3 TO

RESEARCH THE GROWTH, CULTIVATION, MARKETING AND SALE OF

INDUSTRIAL HEMP TO ENSURE THAT INSTITUTIONS OF HIGHER EDUCATION,

AND SITES AND PERSONS UTILIZED BY THE INSTITUTIONS OF HIGHER

EDUCATION, GROW OR CULTIVATE INDUSTRIAL HEMP AS AUTHORIZED UNDER

THIS ACT.

"DEPARTMENT." THE DEPARTMENT OF AGRICULTURE OF THE

COMMONWEALTH.

"INDUSTRIAL HEMP." 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% ON A

DRY WEIGHT BASIS.

"INSTITUTION OF HIGHER EDUCATION." AN INSTITUTION WHICH:

(1) MEETS THE DEFINITION SET FORTH IN SECTION 101 OF THE

HIGHER EDUCATION ACT OF 1965 (PUBLIC LAW 89-329, 20 U.S.C. §

1001); AND

(2) IS LOCATED IN THIS COMMONWEALTH.

"SECRETARY." THE SECRETARY OF AGRICULTURE OF THE

COMMONWEALTH.

SECTION 3. INDUSTRIAL HEMP.

(A) AUTHORITY.--NOTWITHSTANDING ANY OTHER LAW TO THE

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CONTRARY, THE DEPARTMENT MAY IMPLEMENT THE AGRICULTURAL PILOT

PROGRAM TO RESEARCH INDUSTRIAL HEMP CONSISTENT WITH THIS ACT AND

FEDERAL LAW.

(B) PERMITS.--AN INSTITUTION OF HIGHER EDUCATION, OR A

PERSON THAT SUPPLIES SERVICES TO THE INSTITUTION OF HIGHER

EDUCATION TO IMPLEMENT OR OPERATE THE AGRICULTURAL PILOT

PROGRAM, MAY APPLY TO THE DEPARTMENT FOR A PERMIT UNDER SECTION

4(3).

OILSEED IN THIS COMMONWEALTH.

(D) PROHIBITION.--A PERSON MAY NOT GROW, CULTIVATE, MARKET

OR SELL INDUSTRIAL HEMP UNLESS ALL OF THE FOLLOWING APPLY:

(1) THE PERSON IS PART OF THE AGRICULTURAL PILOT PROGRAM

PURSUANT TO A CONTRACT WITH AN INSTITUTION OF HIGHER

EDUCATION.

(2) THE PERSON HAS A PERMIT UNDER SECTION 4(3).

SECTION 4. DEPARTMENT.

THE DEPARTMENT HAS THE FOLLOWING POWERS AND DUTIES:

(1) TO DEVELOP AND IMPLEMENT THE AGRICULTURAL PILOT

PROGRAM IN THIS COMMONWEALTH.

(2) TO PROMULGATE REGULATIONS UNDER SECTION 5.

(3) SUBJECT TO THE CONTROLLED SUBSTANCES ACT (PUBLIC LAW

91-513, 84 STAT. 1236), THE SAFE AND DRUG-FREE SCHOOLS AND

COMMUNITIES ACT (PUBLIC LAW 107-110, 20 U.S.C. § 7101 ET

SEQ.), 41 U.S.C. CH. 81 (RELATING TO DRUG-FREE WORKPLACE) AND

NOTWITHSTANDING THE ACT OF APRIL 14, 1972 (P.L.233, NO.64),

KNOWN AS THE CONTROLLED SUBSTANCE, DRUG, DEVICE AND COSMETIC

ACT, AND 18 PA.C.S. § 7508(A)(1) (RELATING TO DRUG

TRAFFICKING SENTENCING AND PENALTIES), TO ISSUE, RENEW, DENY,

REVOKE, SUSPEND OR REFUSE TO RENEW A PERMIT AS FOLLOWS:

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(I) FOR AN INSTITUTION OF HIGHER EDUCATION TO

CONDUCT RESEARCH RELATING TO THE CULTIVATION OR MARKETING

OF INDUSTRIAL HEMP.

(II) FOR A PERSON THAT CONTRACTS WITH THE DEPARTMENT

OR AN INSTITUTION OF HIGHER EDUCATION AS NECESSARY TO

IMPLEMENT THE AGRICULTURAL PILOT PROGRAM.

(4) TO ESTABLISH REQUIREMENTS FOR THE USE OR REUSE OF

SEEDS, CROPS OR PRODUCTS PRODUCED AS THE END RESULT OF THE

AGRICULTURAL PILOT PROGRAM.

(5) TO ADOPT AND PUBLISH PERMIT FEES, WHICH DO NOT

EXCEED THE ACTUAL COST OF ADMINISTERING THIS ACT.

(6) TO CREATE AND MAINTAIN A DATABASE OF INSTITUTIONS OF

HIGHER EDUCATION AND PERSONS THAT HAVE PERMITS UNDER

PARAGRAPH (3).

(7) TO INSPECT FACILITIES, SITES, SEEDS, PLANTS,

INDIVIDUAL GROWERS AND PERSONS OR THINGS UTILIZED AS PART OF

THE AGRICULTURAL PILOT PROGRAM TO ENSURE COMPLIANCE WITH THIS

ACT AND REGULATIONS PROMULGATED UNDER THIS ACT.

(8) TO ENSURE THAT NO INDUSTRIAL HEMP IS GROWN,

CULTIVATED, MARKETED OR SOLD EXCEPT IN ACCORDANCE WITH THIS

ACT.

SECTION 5. REGULATIONS.

(A) AUTHORITY.--THE DEPARTMENT MAY PROMULGATE REGULATIONS TO

ENSURE COMPLIANCE WITH THIS ACT AND POLICIES AND PROCEDURES OF

THE DEPARTMENT. REGULATIONS INCLUDE THE FOLLOWING:

(1) RESEARCH.

(2) NOTWITHSTANDING 3 PA.C.S. CH. 71 (RELATING TO SEED)

AND REGULATIONS PROMULGATED UNDER THAT CHAPTER, LABELING,

PACKAGING AND TESTING OF INDUSTRIAL HEMP AND INDUSTRIAL HEMP

SEEDS.

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(3) APPLICATIONS AND OTHER INFORMATION REQUIRED TO BE

SUBMITTED TO THE DEPARTMENT.

(4) MARKETING AND ADVERTISING OF INDUSTRIAL HEMP.

(B) TEMPORARY REGULATIONS.--

(1) WITHIN THREE MONTHS OF THE EFFECTIVE DATE OF THIS

PARAGRAPH, IN ORDER TO FACILITATE THE IMPLEMENTATION OF THIS

SECTION, THE DEPARTMENT MAY PROMULGATE TEMPORARY REGULATIONS.

(2) TEMPORARY REGULATIONS SHALL NOT BE SUBJECT TO ANY OF

THE FOLLOWING:

(I) SECTIONS 201, 202, 203, 204 AND 205 OF THE ACT

OF JULY 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE

COMMONWEALTH DOCUMENTS LAW.

(II) SECTIONS 204(B) AND 301(10) OF THE ACT OF

OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE

COMMONWEALTH ATTORNEYS ACT.

(III) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181),

KNOWN AS THE REGULATORY REVIEW ACT.

(3) TEMPORARY REGULATIONS SHALL EXPIRE TWO YEARS AFTER

THE EFFECTIVE DATE OF THIS SECTION.

SECTION 6. CONTRACTED PERSONS.

AN INSTITUTION OF HIGHER EDUCATION HOLDING A PERMIT TO

CONDUCT AN AGRICULTURAL PILOT PROGRAM MAY CONTRACT WITH ENTITIES

AND INDIVIDUAL GROWERS TO THE EXTENT NECESSARY TO CARRY OUT THE

AGRICULTURAL PILOT PROGRAM. THE CONTRACT TERMS MUST INCORPORATE

THE PROVISIONS OF THE PERMIT. THE ENTITY OR INDIVIDUAL GROWER

SHALL BE SUBJECT TO THE TERMS AND REQUIREMENTS OF THE PERMIT

ISSUED TO THE INSTITUTION OF HIGHER EDUCATION AND TO ENFORCEMENT

BY THE DEPARTMENT FOR A VIOLATION OF ANY OF THE FOLLOWING:

(1) THIS ACT.

(2) A REGULATION ISSUED UNDER THIS ACT.

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(3) THE PERMIT.

SECTION 7. NONCRIMINAL OFFENSE.

THE DEPARTMENT MAY ASSESS A CIVIL PENALTY OF NOT MORE THAN

$5,000 FOR A VIOLATION OF THIS ACT.

SECTION 8. CRIMINAL PENALTIES.

A PERSON THAT VIOLATES SECTION 3(D) COMMITS A SUMMARY

OFFENSE.

SECTION 9. ACCOUNT.

(A) DEPOSIT.--MONEY RECEIVED FROM LICENSING, PERMITTING

FEES, FINES AND PENALTIES UNDER THIS ACT SHALL BE PAID INTO A

SPECIAL RESTRICTED ACCOUNT IN THE GENERAL FUND KNOWN AS THE

PLANT PEST MANAGEMENT ACCOUNT. ALL MONEY DEPOSITED IN THE

ACCOUNT IS APPROPRIATED TO THE DEPARTMENT FOR THE PURPOSES OF

THIS ACT AND THE ACT OF DECEMBER 16, 1992 (P.L.1228, NO.162),

KNOWN AS THE PLANT PEST ACT, AND MAY NOT REPLACE MONEY

APPROPRIATED TO THE ACCOUNT AS PROVIDED IN SUBSECTION (B).

(B) SUPPLEMENTS.--THE ACCOUNT MAY BE SUPPLEMENTED BY MONEY

RECEIVED FROM THE FOLLOWING SOURCES:

(1) STATE MONEY APPROPRIATED TO THE DEPARTMENT FOR

PURPOSES OF THIS ACT.

(2) FEDERAL MONEY APPROPRIATED TO THE DEPARTMENT FOR

PURPOSES OF THIS ACT.

(3) GIFTS AND OTHER CONTRIBUTIONS FROM PUBLIC OR PRIVATE

SOURCES FOR PURPOSES OF THIS ACT.

SECTION 10. EXPIRATION.

(A) FEDERAL ACTION.--IF THE UNITED STATES DEPARTMENT OF

AGRICULTURE IS AUTHORIZED TO REGULATE INDUSTRIAL HEMP, THE

SECRETARY SHALL TRANSMIT NOTICE OF THE AUTHORIZATION TO THE

LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION IN THE PENNSYLVANIA

BULLETIN.

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(B) DATE.--THIS ACT SHALL EXPIRE 60 DAYS AFTER PUBLICATION

OF THE NOTICE UNDER SUBSECTION (A).

SECTION 11. EFFECTIVE DATE.

THIS ACT SHALL TAKE EFFECT AS FOLLOWS:

(1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT

IMMEDIATELY:

(I) SECTION 3(A).

(II) SECTION 4(1) AND (2).

(III) SECTION 5.

(IV) SECTION 10.

(V) THIS SECTION.

(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60

DAYS.

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