What This Bill Does
This bill amends the Agricultural Marketing Act of 1946 to create a separate category called "industrial hemp" and exempt it from certain hemp production program requirements. The bill allows hemp producers to designate whether they are growing industrial hemp or hemp for other purposes, and it changes inspection and violation rules based on that designation.
Who It Affects
Hemp producers, state governments, Native American tribes, the U.S. Department of Agriculture, and the Attorney General.
Key Provisions
• Industrial hemp is defined as the Cannabis sativa L. plant if the harvested material consists only of stalks, fiber from stalks, seed products (like grain or oil), or viable seeds for producing those materials, but NOT cannabinoid resin (a concentrated plant extract) extracted from stalks or seeds (Sec. 2(a)).
• Hemp producers must be given a procedure to designate their production type as either "industrial hemp" or "hemp for any purpose," and states or Native American tribes cannot create laws more strict than federal requirements for industrial hemp producers (Sec. 2(b)).
• Annual inspections of industrial hemp producers must start with a visual inspection only; chemical testing is only required if the producer fails the visual inspection and cannot provide documentation showing clear intent to grow industrial hemp (Sec. 2(b)).
• A person who knowingly produces a crop inconsistent with their industrial hemp designation becomes ineligible to participate in the hemp program for five years from the violation date (Sec. 2(b)).
• The Secretary of Agriculture must create regulations and guidelines to carry out this bill as quickly as practical (Sec. 3).
What Changes
If this becomes law, hemp producers can officially declare themselves as industrial hemp growers and face fewer regulatory requirements than producers growing hemp for other purposes. Industrial hemp producers only need to pass a visual inspection rather than automatic chemical testing. States and tribes cannot impose stricter regulations on industrial hemp than what the federal law allows. The definition of hemp will now specifically include industrial hemp as a separate category. Violations for knowingly producing crops that don't match a producer's declared type now result in five-year program ineligibility.
Important Definitions
Industrial hemp: The Cannabis sativa L. plant if farmers harvest only the stalks, fiber from stalks, seed products (like oil or grain), or viable seeds meant to produce those materials. It cannot include cannabinoid resin (a concentrated plant extract) from stalks or seeds.
II
118TH CONGRESS
1ST SESSION
S. 980
To amend the Agricultural Marketing Act of 1946 to exempt industrial
hemp from certain requirements under the hemp production program,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 27, 2023
Mr. TESTER (for himself and Mr. BRAUN) introduced the following bill; which
was read twice and referred to the Committee on Agriculture, Nutrition,
and Forestry
A BILL
To amend the Agricultural Marketing Act of 1946 to exempt
industrial hemp from certain requirements under the
hemp production program, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Industrial Hemp Act
4
of 2023’’.
5
SEC. 2. EXEMPTIONS OF INDUSTRIAL HEMP UNDER HEMP
6
PRODUCTION PROGRAM.
7
(a) DEFINITIONS.—Section 297A of the Agricultural
8
Marketing Act of 1946 (7 U.S.C. 1639o) is amended—
9
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•S 980 IS
(1) in paragraph (1)—
1
(A) by striking the period at the end and
2
inserting ‘‘; and’’;
3
(B) by striking ‘‘means the plant’’ and in-
4
serting the following: ‘‘means—
5
‘‘(A) the plant’’; and
6
(C) by adding at the end the following:
7
‘‘(B) industrial hemp.’’;
8
(2) by redesignating paragraphs (3) through
9
(6) as paragraphs (4) through (7), respectively; and
10
(3) by inserting after paragraph (2) the fol-
11
lowing:
12
‘‘(3) INDUSTRIAL HEMP.—The term ‘industrial
13
hemp’ means the plant Cannabis sativa L. if the
14
harvested material is only—
15
‘‘(A)(i) the stalks of that plant;
16
‘‘(ii) fiber produced from those stalks; or
17
‘‘(iii) any other manufacture, derivative,
18
mixture, or preparation of those stalks (except
19
cannabinoid resin extracted from those stalks);
20
‘‘(B) whole grain, oil, cake, nut, hull, or
21
any other compound, manufacture, derivative,
22
mixture, or preparation of the seeds of that
23
plant (except cannabinoid resin extracted from
24
the seeds of that plant); or
25
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•S 980 IS
‘‘(C) viable seeds of that plant produced
1
solely for production or manufacture of any ma-
2
terial described in subparagraph (A) or (B).’’.
3
(b) STATE AND TRIBAL PLANS.—Section 297B of
4
the Agricultural Marketing Act of 1946 (7 U.S.C. 1639p)
5
is amended—
6
(1) in subsection (a)—
7
(A) in paragraph (2)(A)—
8
(i)
by
redesignating
clauses
(ii)
9
through (vii) as clauses (iii) through (viii),
10
respectively;
11
(ii) by inserting after clause (i) the
12
following:
13
‘‘(ii) a procedure by which a hemp
14
producer shall designate the type of pro-
15
duction of the hemp producer as—
16
‘‘(I) industrial hemp; or
17
‘‘(II) hemp for any purpose;’’;
18
(iii) in clause (iii) (as so redesig-
19
nated), by inserting ‘‘, excluding industrial
20
hemp,’’ after ‘‘hemp’’; and
21
(iv) in clause (viii) (as so redesig-
22
nated), by striking ‘‘(vi)’’ and inserting
23
‘‘(vii)’’;
24
(B) in paragraph (3)—
25
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•S 980 IS
(i) in subparagraph (A), in the matter
1
preceding clause (i), by striking ‘‘Nothing’’
2
and inserting ‘‘Except as provided in sub-
3
paragraph (C), nothing’’; and
4
(ii) by adding at the end the fol-
5
lowing:
6
‘‘(C) PREEMPTION.—
7
‘‘(i) IN
GENERAL.—Except as pro-
8
vided in clause (ii), no State or Indian
9
tribe may establish or continue in effect
10
any law that—
11
‘‘(I) regulates the production of
12
industrial hemp in compliance with
13
this subtitle; and
14
‘‘(II) is more stringent than this
15
subtitle.
16
‘‘(ii) VIOLATIONS WITH HIGHER CUL-
17
PABILITY.—Clause (i) shall not apply to
18
any law relating to any violation of or de-
19
scribed in subsection (e)(3).’’; and
20
(C) by adding at the end the following:
21
‘‘(4) INSPECTIONS OF INDUSTRIAL HEMP PRO-
22
DUCERS.—With respect to annual inspections of in-
23
dustrial
hemp
producers
under
paragraph
24
(2)(A)(vi)—
25
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•S 980 IS
‘‘(A) the inspection shall be a visual in-
1
spection;
2
‘‘(B) if a producer fails a visual inspection
3
under subparagraph (A), the State or Indian
4
tribe may require the producer to provide to the
5
State or Indian tribe documentation that dem-
6
onstrates a clear intent and in-field practices
7
consistent with the designation of the type of
8
production as industrial hemp under paragraph
9
(2)(A)(ii)(I), including seed tags, sales con-
10
tracts, a Farm Service Agency report, harvest
11
techniques, or a harvest inspection; and
12
‘‘(C) if a producer fails to provide docu-
13
mentation demonstrating a clear intent and in-
14
field practices described in subparagraph (B),
15
the State or Indian tribe may require chemical
16
testing on harvested material of the producer
17
that failed the visual inspection under subpara-
18
graph (A).’’;
19
(2) in subsection (e)—
20
(A) in paragraph (2)(A)(iii), by striking
21
‘‘basis.’’ and inserting ‘‘basis, unless the hemp
22
producer designated the type of production as
23
industrial
hemp
under
subsection
24
(a)(2)(A)(ii)(I).’’; and
25
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•S 980 IS
(B) in paragraph (3)—
1
(i) in subparagraph (A), in the matter
2
preceding clause (i), by striking ‘‘neg-
3
ligence—’’ and inserting ‘‘negligence, or
4
knowingly produced a crop that is incon-
5
sistent with the designation of the type of
6
production of the hemp producer as indus-
7
trial
hemp
under
subsection
8
(a)(2)(A)(ii)(I)—’’;
9
(ii) in subparagraph (B)(ii)—
10
(I) in the clause heading, by
11
striking ‘‘EXCEPTION’’ and inserting
12
‘‘EXCEPTIONS’’;
13
(II) by striking ‘‘person growing’’
14
and inserting the following: ‘‘person—
15
‘‘(I) growing’’;
16
(III) in subclause (I) (as so des-
17
ignated), by striking the period at the
18
end and inserting ‘‘; or’’; and
19
(IV) by adding at the end the fol-
20
lowing:
21
‘‘(II) that designates the type of
22
production of the person as industrial
23
hemp
under
subsection
24
(a)(2)(A)(ii)(I).’’; and
25
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•S 980 IS
(iii) by adding at the end the fol-
1
lowing:
2
‘‘(D) PRODUCTION
INCONSISTENT
WITH
3
INDUSTRIAL HEMP DESIGNATION.—Any person
4
who knowingly produces a crop that is incon-
5
sistent with the designation of the type of pro-
6
duction of the person as industrial hemp under
7
subsection (a)(2)(A)(ii)(I) shall be ineligible to
8
participate in the program established under
9
this section for a period of 5 years beginning on
10
the date of the violation.’’; and
11
(3) in subsection (f)(2), by inserting ‘‘, exclud-
12
ing industrial hemp,’’ after ‘‘hemp’’.
13
(c) DEPARTMENT OF AGRICULTURE.—Section 297C
14
of the Agricultural Marketing Act of 1946 (7 U.S.C.
15
1639q) is amended—
16
(1) in subsection (a)—
17
(A) in paragraph (2)—
18
(i) by redesignating subparagraphs
19
(B) through (F) as subparagraphs (C)
20
through (G), respectively;
21
(ii) by inserting after subparagraph
22
(A) the following:
23
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•S 980 IS
‘‘(B) a procedure by which a hemp pro-
1
ducer shall designate the type of production of
2
the hemp producer as—
3
‘‘(i) industrial hemp; or
4
‘‘(ii) hemp for any purpose;’’; and
5
(iii) in subparagraph (C) (as so redes-
6
ignated), by inserting ‘‘, excluding indus-
7
trial hemp,’’ after ‘‘hemp’’; and
8
(B) by adding at the end the following:
9
‘‘(3) INSPECTIONS OF INDUSTRIAL HEMP PRO-
10
DUCERS.—With respect to annual inspections of in-
11
dustrial hemp producers under paragraph (2)(F)—
12
‘‘(A) the inspection shall be a visual in-
13
spection;
14
‘‘(B) if a producer fails a visual inspection
15
under subparagraph (A), the Secretary may re-
16
quire the producer to provide to the Secretary
17
documentation that demonstrates a clear intent
18
and in-field practices consistent with the des-
19
ignation of the type of production as industrial
20
hemp under paragraph (2)(B)(i), including seed
21
tags, sales contracts, a Farm Service Agency
22
report, harvest techniques, or a harvest inspec-
23
tion; and
24
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•S 980 IS
‘‘(C) if a producer fails to provide docu-
1
mentation demonstrating a clear intent and in-
2
field practices described in subparagraph (B),
3
the Secretary may require chemical testing on
4
harvested material of the producer that failed
5
the visual inspection under subparagraph (A).’’;
6
(2) in subsection (c)(3)—
7
(A) by striking ‘‘report the production’’
8
and inserting the following: ‘‘report to the At-
9
torney General—
10
‘‘(A) the production’’; and
11
(B) in subparagraph (A) (as so des-
12
ignated), by striking ‘‘subsection (b) to the At-
13
torney General.’’ and inserting the following:
14
‘‘subsection (b); and
15
‘‘(B) the production of a crop inconsistent
16
with the designation of the type of production
17
of the producer of the crop as industrial hemp
18
under subsection (a)(2)(B)(i).’’; and
19
(3) in subsection (d)(2)—
20
(A) by redesignating subparagraphs (B)
21
and (C) as subparagraphs (C) and (D), respec-
22
tively; and
23
(B) by inserting after subparagraph (A)
24
the following:
25
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•S 980 IS
‘‘(B) for each hemp producer described in
1
subparagraph (A), the designation of the type
2
of production of the hemp producer under sub-
3
section (a)(2)(B);’’.
4
SEC. 3. REGULATIONS AND GUIDELINES.
5
The Secretary of Agriculture shall promulgate regula-
6
tions and guidelines to implement the amendments made
7
by this Act as expeditiously as practicable.
8
Æ
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