HOUSE BILL NO. 2765 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE JUSTUS.
5945H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 312, RSMo, by adding thereto ten new sections relating to hemp businesses, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 312, RSMo, is amended by adding thereto ten new sections, to be 2 known as sections 312.1000, 312.1005, 312.1010, 312.1015, 312.1020, 312.1025, 312.1030, 3 312.1035, 312.1037, and 312.1040, to read as follows: 312.1000. As used in sections 312.1000 to 312.1040, the following terms mean: 2 (1) "Artificially derived cannabinoid", a cannabinoid extracted from a hemp 3 plant, or hemp plant parts with a chemical makeup that is changed after extraction to 4 create a different cannabinoid or other chemical compound by applying a catalyst other 5 than heat or light. Artificially derived cannabinoid includes, but is not limited to, any 6 tetrahydrocannabinol created from cannabidiol; 7 (2) "Delivery service", a third party that delivers items from a retail dealer to 8 consumers for personal consumption and not for resale using employees or independent 9 contractors to facilitate the delivery. A "delivery service" also may facilitate delivery 10 through technology services that connect customers with retail dealers through the use 11 of the internet, mobile applications, and other similar technology; 12 (3) "Department", the department of health and senior services; 13 (4) "Division", the division of alcohol and tobacco control; 14 (5) "Hemp beverage" or "hemp beverage product", a beverage intended for 15 human consumption, which does not include cannabis flower or cannabis concentrate; 16 and:
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2765 2
17 (a) Contains or consists of hemp plant parts; or 18 (b) Contains hemp concentrate or artificially derived cannabinoids in 19 combination with other ingredients; 20 (6) "Hemp business", one of the following licensed under sections 312.1000 to 21 312.1040: 22 (a) Hemp beverage manufacturer; 23 (b) Hemp beverage wholesaler; or 24 (c) Hemp beverage retailer. 25 26 "Hemp business" does not include a person or entity licensed to grow industrial hemp 27 for commercial or research purposes or to process industrial hemp for commercial 28 purposes; 29 (7) "Hemp concentrate": 30 (a) The extracts and resins of a hemp plant or hemp plant parts; 31 (b) The extracts or resins of a hemp plant or hemp plant parts that are refined to 32 increase the presence of targeted cannabinoids; or 33 (c) A product that is produced by refining extracts or resins of a hemp plant or 34 hemp plant parts and is intended to be consumed by combustion or vaporization of the 35 product and inhalation of smoke, aerosol, or vapor from the product. 36 37 "Hemp concentrate" does not include artificially derived cannabinoids, hemp 38 beverages, hemp-derived consumer products, or hemp-derived topical products; 39 (8) "Hemp plant", all parts of the plant of the genus Cannabis that is growing or 40 has not been harvested and has a delta-9 tetrahydrocannabinol concentration of no 41 more than three-tenths of one percent on a dry weight basis; 42 (9) "Hemp plant parts", any part of the harvested hemp plant, including the 43 flower, bud, leaves, stems, and stalk, but does not include derivatives, extracts, 44 cannabinoids, isomers, acids, salts, and salts of isomers that are separated from the 45 plant. "Hemp plant parts" do not include hemp fiber products, hemp grain, or hemp 46 seed; 47 (10) "Hemp seed", the viable seed of the plant of the genus Cannabis that is 48 intended to be planted and is reasonably expected to grow into a hemp plant. "Hemp 49 seed" does not include cannabis seed or hemp grain; 50 (11) "Industrial hemp", the plant Cannabis sativa L. and any part of the plant, 51 whether growing or not, including the plant's seeds, and all the plant's derivatives, 52 extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or 53 not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of HB 2765 3
54 one percent on a dry weight basis. Industrial hemp is not marijuana, as defined under 55 article XIV of the Constitution of Missouri; 56 (12) "Unfinished hemp extract", an oil, extract, concentrate, or other substance 57 that has a total tetrahydrocannabinol concentration above three-tenths of one percent 58 on a dry weight basis, is not for consumer use or retail distribution, and is intended to 59 undergo further refinement or processing into a hemp product. 312.1005. 1. The division shall issue the following types of hemp business 2 licenses: 3 (1) Hemp beverage manufacturer; 4 (2) Hemp beverage wholesaler; and 5 (3) Hemp beverage retailer. 6 2. Notwithstanding any provisions of sections 312.1000 to 312.1040 or chapter 7 311 to the contrary, there shall be no interpretations that prohibit liquor licensees from 8 manufacturing, distributing, or selling hemp beverage products that comply with the 9 provisions of sections 312.1000 to 312.1040 and any other rules adopted by the division. 10 3. A person, cooperative, or business may hold both a hemp beverage 11 manufacturer and hemp beverage retailer license, but may only operate hemp beverage 12 retail operations on site at the premises in which the hemp beverage product is 13 manufactured. 14 4. Except as otherwise provided in this section, no person, cooperative, or 15 business holding any one of the three types of hemp beverage licenses shall hold either of 16 the other two types of hemp beverage licenses and shall not have a financial interest, 17 either direct or indirect, in a person, cooperative, or business holding any of the other 18 two types of hemp beverage licenses. 19 5. Except as otherwise provided in this section, no hemp beverage manufacturer 20 shall sell or otherwise convey hemp beverage products to retailers. Hemp beverage 21 manufacturers are authorized to solicit and sell hemp beverage products to hemp 22 beverage wholesalers. Hemp beverage wholesalers are authorized to solicit and sell 23 hemp beverage products to hemp beverage retailers. 24 6. A person, cooperative, or business holding a hemp beverage manufacturer 25 license, a hemp beverage wholesaler license, or a hemp beverage retailer license, or any 26 combination of the three, shall not hold a marijuana facility license or a medical facility 27 license, as such terms are defined in article XIV of the Constitution of Missouri. 28 7. No license shall be issued to a hemp beverage retailer unless the hemp 29 beverage retailer also has an active license issued by the division allowing it to sell 30 alcoholic beverages. This restriction shall not apply to hemp beverage manufacturers or 31 hemp beverage wholesalers, unless they are seeking a hemp beverage retailer license. HB 2765 4
32 8. No hemp beverage wholesaler or hemp beverage retailer shall distribute or 33 sell any hemp beverage products that the wholesaler or retailer knows or reasonably 34 should know were manufactured outside of the United States. 35 9. Unfinished hemp extract may only be imported by a hemp beverage 36 manufacturer if: 37 (1) The unfinished hemp extract is derived from industrial hemp biomass that 38 has been cultivated under a state-sponsored industrial hemp program or the U.S. 39 Department of Agriculture; and 40 (2) The hemp beverage manufacturer has records to substantiate the source of 41 the hemp biomass. 42 10. Unfinished hemp extract may only be exported by a hemp beverage 43 manufacturer if: 44 (1) The hemp beverage manufacturer does not export unfinished hemp extract 45 to a state where unfinished hemp extract is prohibited by state law; and 46 (2) The hemp beverage manufacturer does not sell or export unfinished hemp 47 extract to any person or entity that does not hold a valid hemp beverage manufacturer 48 license. 312.1010. 1. The division, by rule, shall establish forms and procedures for the 2 processing of hemp licenses issued under sections 312.1000 to 312.1040. At a minimum, 3 any application to obtain or renew a hemp business license shall include the following 4 information, if applicable: 5 (1) The name, address, and date of birth of the applicant; 6 (2) The address and legal property description of the business; 7 (3) Proof of business name registration; 8 (4) Certification that the applicant shall comply with the requirements of 9 sections 312.1000 to 312.1040 relating to the ownership and operation of a hemp 10 business; 11 (5) Identification of one or more controlling persons or managerial employees as 12 agents who shall be responsible for dealing with the division on all matters; and 13 (6) A statement that the applicant agrees to respond to the division's 14 supplemental requests for information. 15 2. An application on behalf of a corporation, limited liability company, 16 partnership, or association shall be signed by at least two officers or managing agents of 17 that entity. 18 3. The division may issue a hemp business license to an applicant who: 19 (1) Is, or is owned and managed by persons, at least twenty-one years of age who 20 has or have not been convicted of a felony related to controlled substances within the HB 2765 5
21 previous ten years in any state or federal jurisdiction and who is or are current in filing 22 all applicable tax returns to the department of revenue and in payment of all taxes, 23 interest, and penalties assessed by the department of revenue; 24 (2) Has completed an application for licensure or application for renewal and 25 has fully and truthfully complied with all information requests relating to license 26 application and renewal; 27 (3) Has paid the applicable application and license fees. For hemp beverage 28 manufacturers, the license fee shall be one thousand dollars. For hemp beverage 29 wholesalers, the license fee shall be five hundred dollars. For hemp beverage retailers, 30 the license fee shall be two hundred fifty dollars per location, and shall not exceed five 31 thousand dollars for an entity with multiple locations; 32 (4) Is not employed by the division, department, or any other state agency with 33 regulatory authority over sections 312.1000 to 312.1040; and 34 (5) Does not hold any marijuana facility or medical facility license, as such terms 35 are defined in article XIV of the Constitution of Missouri. 36 4. Licenses shall be renewed annually. 37 5. Licenses shall not be transferred. 38 6. The division shall promulgate such regulations related to hemp business 39 licensees for the administration of sections 312.1000 to 312.1040 and shall design all 40 necessary forms. Any rule or portion of a rule, as that term is defined in section 41 536.010, that is created under the authority delegated in this section shall become 42 effective only if it complies with and is subject to all of the provisions of chapter 536 and, 43 if applicable, section 536.028. This section and chapter 536 are nonseverable and if any 44 of the powers vested with the general assembly pursuant to chapter 536 to review, to 45 delay the effective date, or to disapprove and annul a rule are subsequently held 46 unconstitutional, then the grant of rulemaking authority and any rule proposed or 47 adopted after August 28, 2026, shall be invalid and void. 48 7. Whenever it shall be determined that a hemp business licensee has violated 49 any of the provisions of sections 312.1000 to 312.1040, the supervisor of the division may 50 warn, place on probation on such terms and conditions as the supervisor deems 51 appropriate for a period not to exceed twelve months, fine in an amount not to exceed 52 five thousand dollars per violation, suspend for a period not to exceed twelve months, or 53 revoke the license of the licensee. The licensee shall have thirty days' notice of the 54 imposition of discipline and may seek a determination thereon by the administrative 55 hearing commission pursuant to the provisions of section 621.045. 56 8. (1) There is hereby created in the state treasury the "Hemp-Derived Products 57 Fund", which shall consist of all fees authorized to be charged by the division under this HB 2765 6
58 section. The state treasurer shall be custodian of the fund. In accordance with sections 59 30.170 and 30.180, the state treasurer may approve disbursements. The fund shall be a 60 dedicated fund and money in the fund shall be used solely by the division for the 61 purposes of administration of sections 312.1000 to 312.1040. 62 (2) Notwithstanding the provisions of section 33.080 to the contrary, any moneys 63 remaining in the fund at the end of the biennium shall not revert to the credit of the 64 general revenue fund. 65 (3) The state treasurer shall invest moneys in the fund in the same manner as 66 other funds are invested. Any interest and moneys earned on such investments shall be 67 credited to the fund. 312.1015. 1. A hemp beverage manufacturer license entitles the license holder 2 to: 3 (1) Purchase hemp plant parts, hemp concentrate, and artificially derived 4 cannabinoids from industrial hemp processors and hemp beverage manufacturers; 5 (2) Purchase hemp plant parts and propagules from industrial hemp growers; 6 (3) Purchase hemp concentrate; 7 (4) Manufacture hemp beverages for public consumption; 8 (5) Package and label hemp beverages for sale to customers; 9 (6) Sell hemp concentrate to other hemp businesses; 10 (7) Sell hemp beverage products to hemp beverage wholesalers; and 11 (8) Perform any other actions approved by the department and division. 12 2. All hemp beverage manufacturing shall take place in a Current Good 13 Manufacturing Practices-certified facility or in a facility licensed as a brewery, distiller, 14 or winery. 15 3. A hemp beverage manufacturer shall comply with all applicable packaging, 16 labeling, and testing requirements established by the department. Labels and 17 packaging for the hemp beverage products shall not consist of images or designs that 18 are intended to be attractive to individuals under twenty-one years of age. A product 19 shall be considered attractive under this subsection if it uses labeling, packaging, 20 advertising, and marketing that is especially appealing to children, including, but not 21 limited to, the use of: 22 (1) Cartoons, meaning any drawing or other depiction of an object, person, 23 animal, creature, or any similar caricature that satisfies any of the following criteria: 24 (a) The use of comically exaggerated features; 25 (b) The attribution of human characteristics to animals, plants, or other objects; 26 or 27 (c) The attribution of unnatural or extra-human abilities; and HB 2765 7
28 (2) Similarities to products that are commonly used by or marketed to 29 individuals under twenty-one, including but not limited to, candy, soda, drinks, cookies, 30 or cereal, except when used to describe the contents, taste, or ingredients of the product 31 sold. 32 4. All hemp beverage products shall be registered by the manufacturer with the 33 department prior to sale. 34 5. Upon the sale of any hemp beverage, a hemp beverage manufacturer shall 35 provide a statement to the buyer that discloses the product's ingredients, including, but 36 not limited to, any chemicals or compounds and any major food allergens declared by 37 name. 38 6. A hemp beverage manufacturer shall not add any artificially derived 39 cannabinoid, hemp plant part, or hemp concentrate to a product if the manufacturer of 40 the product holds a trademark to the product's name, except that a hemp beverage 41 manufacturer may use a trademarked food product if the manufacturer uses the 42 product as a component or as part of a recipe and if the hemp beverage manufacturer 43 does not state or advertise to the customer that the final retail hemp beverage product 44 contains a trademarked food product. 45 7. A hemp beverage manufacturer shall not add any cannabis flower, cannabis 46 concentrate, or cannabinoid derived from cannabis flower or cannabis concentrate to a 47 product. 48 8. The hemp beverage manufacturer shall have a hemp beverage product tested 49 prior to distribution to confirm compliance with all statutory and regulatory 50 requirements. The testing shall be performed by a laboratory holding an ISO 17025 51 accreditation or that is registered with the Drug Enforcement Administration in 52 accordance with 21 CFR 1301.13, and which does not have a direct or indirect interest 53 in the entity whose product is being tested. 54 9. No hemp beverage manufacturer who designates a specific geographic area 55 for which a hemp beverage wholesaler shall be responsible, shall enter into any 56 agreement with any other person for the purpose of establishing an additional 57 wholesaler for the same brands of hemp beverage products in such designated area. 58 10. Any hemp beverage manufacturer or wholesaler who violates the provisions 59 of this section, or permits its employees, officers, or agents to do so, shall be guilty of a 60 misdemeanor, and upon conviction thereof shall be punished only as follows: 61 (1) For the first offense, by a fine of one thousand dollars; 62 (2) For the second offense, by a fine of five thousand dollars; and 63 (3) For the third or any subsequent offense, by a fine of twenty-five thousand 64 dollars. HB 2765 8
312.1020. 1. A hemp beverage wholesaler may transport hemp beverages on 2 public roadways provided the hemp beverages are in a safe and secured storage 3 compartment that is part of the motor vehicle. 4 2. A hemp beverage wholesaler may sell to retailers hemp beverage products 5 that: 6 (1) Are obtained from a licensed hemp beverage manufacturer; 7 (2) Meet all applicable packaging and labeling requirements established by the 8 department; and 9 (3) Comply with any other rules adopted by the department. 10