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HB 213/AP

House Bill 213 (AS PASSED HOUSE AND SENATE)
By: Representatives Corbett of the 174th, McCall of the 33rd, Pruett of the 149th, Gilliard of
the 162nd, Dickey of the 140th, and others

A BILL TO BE ENTITLED
AN ACT

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To amend Title 2 of the Official Code of Georgia Annotated, relating to agriculture, so as to

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enact the "Georgia Hemp Farming Act"; to provide for legislative intent; to provide for

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definitions; to provide for unlawfulness of certain acts; to authorize certain academic

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research of hemp; to provide for licensing and permit requirements and fees for hemp

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growers and hemp processors, respectively; to provide for affidavits for such licenses and

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permits; to provide for agreements between hemp growers and hemp processors; to provide

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for transportation of hemp; to provide for destruction of crops; to provide for testing of hemp

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crops; to provide for the Department of Agriculture to enter into agreements regarding such

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testing and other matters; to provide for violations and enforcement; to provide for a state

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hemp plan; to provide for the promulgation of rules and regulations; to amend Part 1 of

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Article 2 of Chapter 13 of Title 16 of the Official Code of Georgia Annotated, relating to

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schedules, offenses, and penalties regarding regulation of controlled substances, so as to

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revise the definition of the term "marijuana"; to provide an exception to the scheduling of

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tetrahydrocannabinol and tetrahydrocannabinolic acid as controlled substances; to provide

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for related matters; to provide for an effective date; to repeal conflicting laws; and for other

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purposes.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

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SECTION 1.

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Title 2 of the Official Code of Georgia Annotated, relating to agriculture, is amended by

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enacting a new chapter to read as follows:
"CHAPTER 23

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2-23-1.

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This chapter shall be known and may be cited as the 'Georgia Hemp Farming Act.'

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2-23-2.

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The intent of this chapter is to:

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(1) Promote exploration of the cultivation and processing of hemp and the potential to

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open up new commercial markets for farmers and businesses through the sale of hemp

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products;

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(2) Explore expansion of the state's hemp industry and allow farmers and businesses to

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begin to cultivate, handle, and process hemp and sell hemp products for commercial

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purposes;

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(3) Encourage and empower research into growing hemp and creating hemp products at

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universities and in the private sector;

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(4) Ultimately move the state and its citizens to the forefront of the hemp industry;

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(5) Balance the desire to explore the cultivation and processing of hemp with public

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health, safety, and welfare regarding the potential for unwanted and unlawful uses of

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chemical elements of hemp; and

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(6) Enable the department, licensees, and universities to promote the cultivation and

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processing of hemp and the commercial sale of hemp products.

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2-23-3.

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As used in this chapter, the term:

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(1) 'Commercial sale' means the sale of products in the stream of commerce at retail, at

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wholesale, and online.

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(2) 'Cultivate' means to plant, water, grow, and harvest a plant or crop.

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(3) 'Federally defined THC level for hemp' means a delta-9-THC concentration of not

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more than 0.3 percent on a dry weight basis, or the THC concentration for hemp defined

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in 7 U.S.C. Section 5940, whichever is greater.

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(4) 'Handle' means to possess or store hemp plants for any period of time on premises

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owned, operated, or controlled by a person licensed to cultivate or process hemp, or to

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possess or store hemp plants in a vehicle for any period of time other than during the

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actual transport of such plants from the premises of a person licensed to cultivate or

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process hemp to the premises of another licensed person; provided, however, that such

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term shall not include possessing or storing finished hemp products.

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(5) 'Hemp' means the Cannabis sativa L. plant and any part of such plant, including the

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seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts

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of isomers, whether growing or not, with the federally defined THC level for hemp or a

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lower level.

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(6) 'Hemp products' means all products with the federally defined THC level for hemp

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derived from, or made by, processing hemp plants or plant parts that are prepared in a
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form available for legal commercial sale, but not including food products infused with

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THC unless approved by the United States Food and Drug Administration.

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(7) 'Licensee' means an individual or business entity possessing a hemp grower license

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issued by the department under the authority of this chapter to handle and cultivate hemp

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in the State of Georgia.

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(8) 'Permittee' means an individual or business entity possessing a hemp processor permit

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issued by the department under the authority of this chapter to handle and process hemp

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in the State of Georgia.

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(9) 'Process' or 'processing' means converting an agricultural commodity into a legally

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marketable form.

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(10) 'Research' or 'researching' means experimental field, greenhouse, or laboratory

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activity for the ultimate purpose of developing new hemp varieties and products,

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improving existing hemp products, developing new uses for existing hemp products, or

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developing or improving methods for producing hemp products.

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(11) 'THC' means tetrahydrocannabinol, tetrahydrocannabinolic acid, or a combination

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of tetrahydrocannabinol and tetrahydrocannabinolic acid.

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2-23-4.

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(a) Except as otherwise provided in subsection (b) of this Code section, it shall be unlawful

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for:

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(1) Any person to cultivate, handle, or process hemp in this state unless such person

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holds a hemp grower license or a hemp processor permit issued by the department

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pursuant to this chapter or is employed by a licensee or permittee;

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(2) A permittee to accept hemp for processing from any person other than a licensee,

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except as otherwise provided in paragraph (4) of this subsection;

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(3) A licensee to provide or sell hemp to any person other than a permittee;

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(4) A permittee to accept for processing any hemp grown outside of the State of Georgia,

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unless such hemp is grown in a state with a plan to regulate hemp production that is

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approved by the Secretary of Agriculture of the United States or otherwise in accordance

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with regulations promulgated by the United States Department of Agriculture;

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(5) A permittee to process hemp pursuant to a hemp processor permit outside of the State

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of Georgia, unless such processing occurs in a state with a plan to regulate hemp

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production that is approved by the Secretary of Agriculture of the United States or

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otherwise in accordance with regulations promulgated by the United States Department

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of Agriculture;

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(6) Any licensee or permittee to otherwise fail to comply with the requirements of this

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chapter; or
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(7) Offer for sale at retail the unprocessed flower or leaves of the hemp plant.

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(b) Colleges and universities of the University System of Georgia are hereby authorized

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pursuant to 7 U.S.C. Section 5940 immediately upon this chapter becoming effective to

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conduct research under an agricultural pilot program or other agricultural or academic

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research, including research on the cultivation and uses of hemp grown within the State of

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Georgia, breeding and developing new hemp varieties, seed development, consumer uses,

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and marketing.

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(c) It shall be lawful for a permittee to process products other than hemp products at a

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facility when such products are lawfully processed in the state and stored separately from

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hemp products.

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2-23-5.

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(a)(1) Except as otherwise provided in this chapter, application for, consideration and

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issuance of, and revocation of hemp grower licenses issued by the department pursuant

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to this Code section shall be accomplished in accordance with Chapter 5 of this title, and

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such licenses shall otherwise be governed by such chapter. No such license shall be valid

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unless the licensee has and maintains in effect an agreement with a permittee pursuant to

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Code Section 2-23-7.

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(2) Hemp grower licenses shall be issued for one calendar year at an annual license fee

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of $50.00 per acre cultivated up to a maximum license fee of $5,000.00.

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(b) Any person applying for a hemp grower license shall be a qualified agricultural

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producer, as defined in Code Section 48-8-3.3, and shall provide with such application to

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the department:

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(1) A legal description and global positioning coordinates sufficient for locating fields

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and greenhouses to be used to cultivate and harvest hemp;

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(2) Unless the licensee is also a permittee, the name of the permittee with whom the

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applicant has entered into or intends to enter into an agreement pursuant to Code Section

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2-23-7 and the affidavit required by Code Section 2-23-6;

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(3) Written consent, allowing representatives of the department, the Georgia Bureau of

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Investigation, and other affected state and local law enforcement agencies to enter all

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premises where hemp is being cultivated, harvested, or handled for the purpose of

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conducting physical inspections and ensuring compliance with the requirements of this

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chapter; and

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(4) A criminal background check conducted by local law enforcement. No license shall

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be issued to any applicant who has been convicted of a misdemeanor involving sale of

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or trafficking in a controlled substance or a felony or materially falsifies any information

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contained in a license application.
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(c)(1) No person shall be issued more than one hemp grower license, nor shall any

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person be permitted to have a beneficial interest in more than one hemp grower license

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issued under this chapter, regardless of the degree of such interest.

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(2) Nothing contained in this subsection shall prohibit the reissuance of a valid hemp

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grower license if the license has been held by marriage prior to the creation of any of the

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relationships defined in paragraph (3) of this subsection.

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(3) For purposes of this subsection:

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(A) The term 'person' shall include all members of a licensee's family and all

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corporations, limited partnerships, limited liability companies, and other business

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entities in which a licensee holds more than a 50 percent ownership interest; the term

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'family' shall include any person related to the holder of the hemp grower license within

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the first degree of consanguinity and affinity as computed according to the canon law

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and who is claimed as a dependent by the licensee for income tax purposes; and

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(B) The beneficiaries of a trust shall be considered to have a beneficial interest in any

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business forming a part of the trust estate.

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2-23-6.

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(a) Except as otherwise provided in this chapter, consideration, issuance, and revocation

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of hemp processor permits issued by the department pursuant to this Code section shall be

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accomplished in accordance with Chapter 5 of this title, and such permits shall otherwise

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be governed by such chapter. No such permit shall be valid unless the permittee has and

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maintains in effect an agreement with a licensee pursuant to Code Section 2-23-7.

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(b) Any person applying for a hemp processor permit pursuant to this Code section shall

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provide to the department:

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(1) A legal description and global positioning coordinates sufficient for locating facilities

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for processing hemp;

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(2) Affidavits of such applicant and every licensee with whom such applicant has entered

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into a written agreement pursuant to Code Section 2-23-7 in which both parties swear that

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they have entered into or intend to enter into such an agreement. Such affidavits shall be

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in a form to be provided by the department;

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(3) Written consent allowing representatives of the department, the Georgia Bureau of

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Investigation, and other affected state and local law enforcement agencies to enter all

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premises where hemp is being processed or handled for the purpose of conducting

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physical inspections and ensuring compliance with the requirements of this chapter;

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(4) A surety bond in the amount of $100,000.00 issued by a surety company authorized

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by law to do business in this state pursuant to a current certificate of authority to transact

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surety business by the Commissioner of Insurance. If any party is aggrieved or adversely
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affected by the permittee's failure to comply with the requirements of this chapter, the

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Commissioner may commence and maintain an action against the principal and surety on

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the bond; and

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(5) A criminal background check conducted by local law enforcement. No permit shall

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be issued to any applicant who has been convicted of a misdemeanor involving sale of

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or trafficking in a controlled substance or a felony or who materially falsifies any

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information contained in a permit application.

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(c) The department shall annually accept applications for hemp processor permits to be

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issued by the department.

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(d) Hemp processor permits shall be issued for one calendar year at an annual permit fee

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of $25,000.00, provided that after the first calendar year, a permittee shall be entitled to

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automatic permit renewals annually for a permit fee of $10,000.00 per year, so long as no

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administrative action has been taken by the department regarding such permittee under this

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chapter.

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(e) Issuance of any hemp processor permit shall be conditioned upon the permittee's

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compliance with Code Section 2-23-7 prior to initiating hemp processing activities.

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(f) A permittee may also apply for and be issued no more than one hemp grower license.

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(g)(1) No person shall be issued more than one hemp processor permit, nor shall any

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person be permitted to have a beneficial interest in more than one hemp processor permit

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issued under this chapter, regardless of the degree of such interest.

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(2) Nothing contained in this subsection shall prohibit the reissuance of a valid hemp

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processor permit if the permit has been held by marriage prior to the creation of any of

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the relationships defined in paragraph (3) of this subsection.

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(3) For purposes of this subsection:

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(A) The term 'person' shall include all members of a licensee's family and all

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corporations, limited partnerships, limited liability companies, and other business

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entities in which a licensee holds more than a 50 percent ownership interest; the term

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'family' shall include any person related to the holder of the hemp processor permit

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within the first degree of consanguinity and affinity as computed according to the canon

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law and who is claimed as a dependent by the licensee for income tax purposes; and

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(B) The beneficiaries of a trust shall be considered to have a beneficial interest in any

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business forming a part of the trust estate.

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2-23-7.

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(a) Every permittee shall at all times have in place written agreements with each licensee

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governing their business relationship. Each permittee shall provide a copy of each such

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agreement, and any amendments thereto, to the department within ten days of execution

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of each such agreement or amendment thereto.

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(b) Transportation of hemp from each licensee's facilities to the permittee's facilities shall

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be conducted in conformance with minimum standards to be promulgated by the

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department.

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(c) Until December 31, 2022, when a licensee destroys a crop pursuant to Code Section

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2-23-8, the permittee with whom the licensee has entered into an agreement pursuant to this

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Code section shall reimburse the licensee for half of the amount of the combined value of

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the seed, fertilizer, labor costs, and any other reasonable and customary input expenses

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incurred with such destroyed crop.

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2-23-8.

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(a)(1) The department shall have the right, either through its own personnel or through

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an independent contractor as provided for in Code Section 2-23-9, to randomly test hemp

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at the fields and greenhouses of all licensees. Such testing, and the harvesting of the

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hemp tested, shall be conducted in compliance with regulations promulgated by the

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department.

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(2) In the event that a test sample reveals a delta-9-THC concentration of more than

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0.330 percent on a dry weight basis, the licensee's entire crop with the same global

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positioning coordinates shall be destroyed in compliance with regulations promulgated

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by the department.

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(3) In the event that a test sample reveals a delta-9-THC concentration of more than 0.3

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percent but not more than 0.330 percent on a dry weight basis, the licensee's crop shall

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be retested and if upon such retesting, the delta-9-THC concentration exceeds 0.3 percent,

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the entire crop with the same global positioning coordinates shall be destroyed in

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compliance with regulations promulgated by the department.

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(b)(1) The department shall have the right, either through its own personnel or through

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an independent contractor as provided for in Code Section 2-23-9, to randomly test hemp

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products at the facilities of all permittees. Such testing shall be conducted in compliance

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with regulations promulgated by the department.

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(2) In the event that a test sample reveals a delta-9-THC concentration of more than

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0.3 percent, all related hemp products shall be destroyed by the permittee under the

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supervision of local law enforcement.

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2-23-9.

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The department shall be authorized to enter into a contract or contracts with one or more

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entities to conduct the testing provided for in Code Section 2-23-8 as well as to include the
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certification, regulatory, and grading functions pursuant to this chapter and regulations

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promulgated by the department.

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2-23-10.

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(a) A violation of this chapter or the rules and regulations promulgated by the department

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pursuant to this chapter shall be subject to enforcement solely in accordance with this Code

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section.

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(b)(1) A licensee or permittee under this chapter shall be required to conduct a corrective

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action plan if the commissioner determines that the licensee or permittee has negligently

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violated this chapter or has violated rules and regulations promulgated by the department

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pursuant to this chapter by:

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(A) Failing to provide a legal description and global positioning coordinates sufficient

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for locating fields and greenhouses the licensee uses to cultivate and harvest hemp or

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facilities at which the permittee processes hemp;

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(B) Failing to properly obtain a license or permit from the department;

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(C) Producing Cannabis sativa L. with more than the federally defined THC level for

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hemp; or

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(D) Otherwise negligently violating this chapter.

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(2) A corrective action plan required by this Code section shall include:

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(A) A reasonable date by which the licensee or permittee shall correct the negligent

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violation; and

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(B) A requirement that the licensee or permittee shall periodically report to the

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commissioner on the compliance status of the licensee or permittee with the corrective

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action plan for a period of not less than two calendar years after the violation.

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(c) Except as provided in subsection (d) of this Code section, a licensee or permittee that

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negligently violates this chapter or rules and regulations promulgated by the department

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pursuant to this chapter shall not as a result be subject to any criminal or civil enforcement

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action by any government agency other than the enforcement action authorized under

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subsection (b) of this Code section.

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(d) A licensee or permittee that negligently violates the corrective action plan under

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subsection (b) of this Code section three times in a five-year period shall have its license

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or permit issued pursuant to this chapter immediately revoked and shall be ineligible to

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reapply for a license or permit for a period of five years after the date of the third violation.

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(e) If the commissioner determines that a licensee or permittee has violated state law with

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a culpable mental state greater than negligence, the commissioner shall immediately report

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the licensee or permittee to the United States Attorney General and the state Attorney

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General, and subsection (a) of this Code section shall not apply to the violation.
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(f) Laws enacting criminal offenses, including laws provided for in Title 16, not in conflict

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with this chapter shall continue to be enforceable and of full force and effect.

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2-23-11.

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(a) Within 60 days of the effective date of this chapter, the commissioner, in consultation

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with the Governor and Attorney General, shall submit to the secretary of agriculture of the

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United States a plan under which the department intends to regulate hemp production and

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which shall include:

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(1) A practice to maintain relevant information regarding land on which hemp is

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produced in this state, including a legal description of the land, for a period of not less

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than three calendar years;

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(2) A procedure to test delta-9-THC concentration levels, by using post-decarboxylation

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or other similarly reliable methods, for hemp produced in this state;

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(3) A procedure to effectively dispose of products that are produced in violation of this

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chapter; and

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(4)

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Section 2-23-10.

A procedure to comply with the enforcement procedures outlined in Code

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(b)

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commissioner, in consultation with the Governor and Attorney General, shall submit to the

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secretary of agriculture of the United States an amended plan.

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2-23-12.

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The department, in consultation with the Georgia Bureau of Investigation, shall promulgate

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rules and regulations as necessary to implement the provisions of this chapter. Such rules

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and regulations shall include the plan provided for in Code Section 2-23-11 upon the

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approval of such plan by the secretary of agriculture of the United States."

If the secretary of agriculture of the United States disapproves the plan, the

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SECTION 2.

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Part 1 of Article 2 of Chapter 13 of Title 16 the Official Code of Georgia Annotated, relating

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to schedules, offenses, and penalties regarding regulation of controlled substances, is

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amended by revising paragraph (16) of Code Section 16-13-21, relating to definitions, as

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follows:

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"(16) 'Marijuana' means all parts of the plant of the genus Cannabis, whether growing or

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not, the seeds thereof, the resin extracted from any part of such plant, and every

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compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds,

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or resin;, but shall not include samples as described in subparagraph (P) of paragraph (3)

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of Code Section 16-13-25; and shall not include the completely defoliated mature stalks
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of such plant, fiber produced from such stalks, oil, or cake, or the completely sterilized

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samples of seeds of the plant which are incapable of germination; and shall not include

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hemp or hemp products as such terms are defined in Code Section 2-23-3."

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SECTION 3.

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Said part is further amended in Code Section 16-13-25, relating to schedule I controlled

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substances, by revising subparagraph (P) of paragraph (3) to read as follows:

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"(P)

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tetrahydrocannabinol and tetrahydrocannabinolic acid which does not contain plant

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material exhibiting the external morphological features of the plant of the genus

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Cannabis, but not including such substance when found in hemp or hemp products as

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such terms are defined in Code Section 2-23-3;"

Tetrahydrocannabinol, tetrahydrocannabinolic acid, or a combination of

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SECTION 4.

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This Act shall become effective upon its approval by the Governor or upon its becoming law

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without such approval.

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SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.

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