Substitute For

HOUSE BILL NO. 5061

A bill to amend 2014 PA 547, entitled

"Industrial hemp research and development act,"

by amending the title and sections 2 and 7 (MCL 286.842 and 286.847), the title as amended and section 7 as added by 2018 PA 641 and section 2 as amended by 2021 PA 61.

the people of the state of michigan enact:

TITLE

An act to authorize the growing and cultivating of industrial hemp for research and development purposes; to require and provide for the registration and licensing of certain persons engaged in the growing, processing, and handling, and brokering of industrial hemp; to provide for the collection of fees; to authorize the receipt and expenditure of funding for research and development related to industrial hemp; to prescribe the powers and duties of certain state agencies and officials and colleges and universities in this state; and to provide for certain fines and sanctions.

Sec. 2. As used in this act:

(a) "Broker" means to engage or participate in the marketing promotion of industrial hemp by acting as an intermediary or negotiator between prospective buyers and sellers.

(b) "Cannabis" means the plant Cannabis sativa L. and any part of that plant, whether growing or not.

(c) "Department" means the department of agriculture and rural development.

(d) "Director" means the director of the department, or his or her designee.

(e) "GPS coordinates" means latitude and longitude coordinates derived from a global positioning system.

(f) "Grow" means to plant, propagate, grow, cultivate, or harvest live plants or viable seeds.

(g) "Grower" means a person registered by the department under this act to grow industrial hemp.

(h) "Handle" means to possess, store, or transport industrial hemp on premises owned, operated, or controlled by a registered grower or licensed processor-handler. Handle does not include the selling of industrial hemp.

(i) "Industrial hemp" means that term as defined in section 3 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27953.

(j) "Licensing and registration fund" means the industrial hemp licensing and registration fund created in section 5.

(k) "Location ID" means the unique identifier established by the applicant for each unique set of GPS coordinates where industrial hemp will be grown, handled, stored, processed, or brokered.

(l) "Market" means to promote or sell industrial hemp or an industrial hemp commodity or product. Market includes, but is not limited to, efforts to advertise and gather information about the needs or preferences of potential consumers or suppliers.

(l) (m) "Nonviable seed" means seed that has been crushed, dehulled, heat treated, or otherwise rendered to have a 0.0% germination rate.

(m) (n) "Person" means an individual, partnership, corporation, association, or other legal entity.

(n) (o) "Plot" means a contiguous area in a field, greenhouse, or indoor growing structure containing the same variety of industrial hemp throughout the area.

(o) (p) "Process" means to convert raw industrial hemp into a marketable form.an intermediary, in-process, or finished commodity or product.

(p) (q) "Processor-handler" means a person licensed by the department under this act to process, handle, or broker , or market industrial hemp.

(q) (r) "Program" means the industrial hemp licensing and registration program established by this act.

(r) (s) "Propagule" means a plant or plant part that is utilized to grow a new plant.

(s) (t) "Research fund" means the industrial hemp research and development fund created in section 4.

(t) (u) "Testing facility" means a safety compliance facility licensed under the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or a testing facility approved by the department.

(u) (v) "THC" means that term as defined in section 3 of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27953.

(v) (w) "Variety" means a subdivision of a species that has the following characteristics:

(i) The subdivision is uniform, in the sense that variations between the subdivision and other subdivisions in essential and distinctive characteristics are describable.

(ii) The subdivision is distinct, in the sense that the subdivision can be differentiated by 1 or more identifiable morphological, physiological, or other characteristics from all other known subdivisions.

(iii) The subdivision is stable, in the sense that the subdivision will remain uniform and distinct if reproduced.

(w) (x) "Viable seed" means seed that has a germination rate of greater than 0.0%.

(x) (y) "Volunteer cannabis plant" means a cannabis plant that is not intentionally planted and grows of its own accord from seeds or roots in the years following an intentionally planted cannabis crop.

Sec. 7. (1) Except as otherwise provided under this act for a college or university in this state, and except for a processor licensed under the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, or a testing facility, a person shall not process, handle, or broker , or market industrial hemp in this state unless the person is licensed as a processor-handler under this act. A person other than a college or university in this state that wishes to process, handle, or broker , or market industrial hemp in this state shall submit the license application fee provided under section 16 and apply to the department for a processor-handler license on a form as prescribed by the department that includes, but is not limited to, the following:

(a) The applicant's full name, date of birth, mailing address, telephone number, and valid and monitored electronic mail email address. If the applicant is a person that is not an individual, the full name of each officer and director, and partner, member, or owner owning in excess of 10% of equity or stock, including his or her birth date, title, and valid and monitored electronic mail email address.

(b) The street address, location ID, and GPS coordinates for each building or site where industrial hemp will be processed, handled, stored, or brokered.

(c) Maps depicting each building, or other site where industrial hemp will be processed, handled, stored, or brokered with appropriate indications for entrances and specific locations corresponding to the GPS coordinates provided under subdivision (b).

(2) An initial processor-handler license application may be submitted at any time. An initial processor-handler license issued by the department expires at midnight on November 30 in the year in which it is issued.

(3) Other than an initial processor-handler license, a processor-handler license is valid for 1 year beginning on December 1 and expiring at midnight on the following November 30 each year.

(4) An application to renew an existing processor-handler license shall must be postmarked on or before November 30. An application submitted after November 30 is subject to a late fee of $250.00.

(5) An application and supporting documents submitted to the department under this section are exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.