Stricken language would be deleted from and underlined language would be added to present law.
Act 629 of the Regular Session
1 State of Arkansas As Engrossed: S3/13/23 H4/3/23 H4/5/23
2 94th General Assembly A Bill
3 Regular Session, 2023 SENATE BILL 358
4
5 By: Senators Dees, J. Boyd, J. Dismang, J. Petty, D. Sullivan, B. Davis, Caldwell, Flippo, Gilmore, M.
6 McKee, C. Penzo, Stone, G. Stubblefield
7 By: Representatives Gazaway, Haak, Lundstrum, Unger, Breaux
8
9 For An Act To Be Entitled
10 AN ACT TO AMEND THE LAW CONCERNING CERTAIN DELTA
11 TETRAHYDROCANNABINOL SUBSTANCES; TO PROHIBIT THE
12 GROWTH, PROCESSING, SALE, TRANSFER, OR POSSESSION OF
13 INDUSTRIAL HEMP THAT CONTAINS CERTAIN DELTA
14 TETRAHYDROCANNABINOL SUBSTANCES; TO INCLUDE DELTA-8,
15 DELTA-9, AND DELTA-10 TETRAHYDROCANNABINOL IN THE
16 LIST OF SCHEDULE VI CONTROLLED SUBSTANCES; TO DECLARE
17 AN EMERGENCY; AND FOR OTHER PURPOSES.
18
19
20 Subtitle
21 TO PROHIBIT INDUSTRIAL HEMP THAT CONTAIN
22 CERTAIN DELTA TETRAHYDROCANNABINOL
23 SUBSTANCES; TO INCLUDE CERTAIN
24 TETRAHYDROCANNABINOL IN THE LIST OF
25 SCHEDULE VI CONTROLLED SUBSTANCES; AND TO
26 DECLARE AN EMERGENCY.
27
28
29 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
30
31 SECTION 1. DO NOT CODIFY. Legislative intent.
32 (a) It is the intent of the General Assembly to prohibit the
33 production and sale of intoxicating substances derived from industrial hemp.
34 (b) The General Assembly recognizes that the cultivation of hemp for
35 industrial use, such as home and building construction, should remain
36 authorized under the "Arkansas Industrial Hemp Production Act."
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1
2 SECTION 2. Arkansas Code § 2-15-503(5), concerning definitions that
3 apply under the Arkansas Industrial Hemp Production Act, is amended to read
4 as follows:
5 (5) “Industrial hemp” means the plant Cannabis sativa and any
6 part of the plant, including the seeds of the plant and all derivatives,
7 extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether
8 growing or not, that contains a with a total delta-9 tetrahydrocannabinol
9 concentration of no more than three-tenths of one percent (0.3%) of the hemp-
10 derived cannabadiol on a dry weight basis, unless specifically controlled
11 under the Uniform Controlled Substances Act, § 5-64-101 et seq. that adopted
12 by federal law under the Agricultural Marketing Act, 7 U.S.C. § 1639o, as it
13 existed on January 1, 2021;
14
15 SECTION 3. Arkansas Code § 2-15-515(a), concerning violations of the
16 Arkansas Industrial Hemp Production Act, is amended to read as follows:
17 (a) A grower has committed a negligent violation of this subchapter if
18 the grower negligently:
19 (1) Fails to provide a legal description of land on which the
20 grower produces industrial hemp;
21 (2) Fails to obtain a license from the State Plant Board; or
22 (3) Produces Cannabis sativa with a tetrahydrocannabinol
23 concentration exceeding the tetrahydrocannabinol level threshold of a
24 negligent violation as defined by federal rule and in this subchapter.
25
26 SECTION 4. Arkansas Code § 5-64-101(16)(B)(vi), concerning the
27 exclusion from the definition of "marijuana" within the Uniform Controlled
28 Substances Act, is amended to read as follows:
29 (vi) Hemp-derived cannabidiol that:
30 (a) Contains not more than three-tenths of one
31 percent (0.3%) of delta-9 tetrahydrocannabinol (THC) on a dry weight basis as
32 verified by a nationally accredited laboratory for quality, purity, and
33 accuracy standards; and
34 (b) Is not approved by the United States Food
35 and Drug Administration for marketing as a medication;
36
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1 SECTION 5. Arkansas Code § 5-64-215(a)(2)(B), concerning the
2 substances in Schedule VI of the Uniform Controlled Substances Act, is
3 amended to read as follows:
4 (B) Not more than three-tenths of one percent (0.3%) of
5 delta-9 tetrahydrocannabinol in the hemp-derived cannabidiol on a dry weight
6 basis as verified by a nationally accredited laboratory for quality, purity,
7 and accuracy standards; and
8
9 SECTION 6. Arkansas Code 5-64-215(a)(5)(A)(i), concerning controlled
10 substances that are listed in Schedule VI, is amended to read as follows:
11 (5) Synthetic substances, derivatives, or their isomers in the
12 chemical structural classes described below in subdivisions (a)(5)(A)-(J) of
13 this section and also specific unclassified substances in subdivision
14 (a)(5)(K) of this section. Compounds of the structures described in this
15 subdivision (a)(5), regardless of numerical designation of atomic positions,
16 are included in this subdivision (a)(5). The synthetic substances,
17 derivatives, or their isomers included in this subdivision (a)(5) are:
18 (A)(i) Tetrahydrocannabinols, including without limitation
19 the following:
20 (a) Delta-1 cis or trans tetrahydrocannabinol,
21 otherwise known as a delta-9 cis or trans tetrahydrocannabinol, and its
22 optical isomers;
23 (b) Delta-6 cis or trans tetrahydrocannabinol,
24 otherwise known as a delta-8 cis or trans tetrahydrocannabinol, and its
25 optical isomers; and
26 (c) Delta-3.4 Delta-3,4 cis or trans
27 tetrahydrocannabinol, otherwise known as a delta-6a,10a cis or trans
28 tetrahydrocannabinol, and its optical isomers.;
29 (d) Delta-10 cis or trans
30 tetrahydrocannabinol, and its optical isomers;
31 (e) Delta-8 tetrahydrocannabinol acetate
32 ester;
33 (f) Delta-9 tetrahydrocannabinol acetate
34 ester;
35 (g) Delta-6a,10a tetrahydrocannabinol acetate
36 ester;
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1 (h) Delta-10 tetrahydrocannabinol acetate
2 ester;
3 (i) A product derived from industrial hemp
4 that was produced as a result of a synthetic chemical process that converted
5 the industrial hemp or a substance contained in the industrial hemp into
6 Delta-8, Delta-9, Delta-6a, 10a, or Delta-10 tetrahydrocannabinol including
7 their respective acetate esters; and
8 (j) Any other psychoactive substance derived
9 therein.
10
11 SECTION 7. Arkansas Code § 5-64-215, concerning the substances in
12 Schedule VI of the Uniform Controlled Substances Act, is amended to add an
13 additional subsection to read as follows:
14 (d) This section does not prohibit the continuous transportation
15 through Arkansas of the plant Cannabis sativa L., and any part of that plant,
16 including the seeds thereof and all derivatives, extracts, cannabinoids,
17 isomers, acids, salts, and salts of isomers, whether growing or not, with a
18 delta-9 tetrahydrocannabinol concentration of not more than three-tenths
19 percent (0.3%) on a dry weight basis, produced in accordance with 7 U.S.C. §
20 1639o et seq.
21
22 SECTION 8. Arkansas Code § 19-6-831(b)(1), concerning the Arkansas
23 Tobacco Control Revenue Fund, is amended to read as follows:
24 (b)(1) All permit and license fees received by Arkansas Tobacco
25 Control under the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et
26 seq., and § 20-56-401 et seq., shall be deposited into the State Treasury as
27 special revenues to the credit of the fund.
28
29 SECTION 9. Arkansas Code § 19-6-831(c)(1), concerning the Arkansas
30 Tobacco Control Revenue Fund, is amended to read as follows:
31 (c)(1) The fund shall be used for expenses incurred by Arkansas
32 Tobacco Control in the organization, maintenance, operation, and merchant
33 education and training with regard to enforcement of § 5-27-227, the Arkansas
34 Tobacco Products Tax Act of 1977, § 26-57-201 et seq., § 20-56-401 et seq.,
35 and the Unfair Cigarette Sales Act, § 4-75-701 et seq.
36
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1 SECTION 10. Arkansas Code Title 20, Chapter 56, is amended to add an
2 additional subchapter to read as follows:
3 Subchapter 4 - Hemp-Derived Products
4
5 20-56-401. Purpose.
6 It is the intent of this subchapter to provide regulation of certain
7 hemp-derived products to:
8 (1) Prevent the sale and use of illicit hemp-based products
9 within Arkansas; and
10 (2) Protect and promote the public health and welfare of the
11 residents of this state.
12
13 20-56-402. Definitions.
14 As used in this subchapter:
15 (1) “Annual” or “annually” means the fiscal year from July 1
16 through the next June 30;
17 (2) “Approved Laboratory” means a laboratory that is accredited
18 by the National Institute on Drug Abuse, the National Environmental
19 Laboratory Accreditation Conference, the International Organization for
20 Standardization or similar accrediting entity as determined by Arkansas
21 Tobacco Control and that has been approved by the Director of Arkansas
22 Tobacco Control specifically for the testing of hemp-derived product;
23 (3) “Consumer” means a member of the public at large;
24 (4) “Days” means calendar days unless otherwise specified;
25 (5) "Finished product" means a product intended for consumer use
26 to be sold at retail;
27 (6) "Hemp" means the plant Cannabis sativa and any part of the
28 plant, including the seeds of the plant, that contains a delta-9
29 tetrahydrocannabinol concentration of three-tenths percent (0.3%) or less on
30 a dry-weight basis, and all derivatives, extracts, cannabinoids, isomers,
31 acids, salts, and salts of isomers, whether growing or not;
32 (7) “Hemp-derived e-liquid product” means a liquid hemp-derived
33 product that contains hemp that is inhaled when using a vapor product, and
34 that may or may not include without limitation propylene glycol, vegetable
35 glycerin, and flavorings;
36 (8)(A) "Hemp-derived product" means a product intended for any
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1 form of human consumption, including consumption by vapor inhalation, or a
2 component of a product, that is derived from hemp, including all derivatives,
3 extracts, cannabinoids, isomers, acids, salts, and salts of isomers, and any
4 product made from such derivatives, and that contains greater than three
5 tenths percent (0.3%) tetrahydrocannabinol.
6 (B) "Hemp-derived product" includes a hemp-derived e-
7 liquid product and a vapor product.
8 (C) "Hemp-derived product" does not include:
9 (i) A product intended for animal consumption or
10 use;
11 (ii) A cosmetic as defined by § 20-56-202(6);
12 (iii) Any marijuana, medical marijuana, or other
13 cannabis product containing delta-9 tetrahydrocannabinol greater than three
14 tenths percent (0.3%) on a dry weight basis as administered, licensed, and
15 otherwise regulated by the Alcoholic Beverage Control Division, the Medical
16 Marijuana Commission, and the Department of Health under Arkansas
17 Constitution, Amendment 98;
18 (iv) A raw hemp product, including any intact plant,
19 flower, buds, leaves, or stems;
20 (v) A drug in the form for which an application
21 filed in accordance with 21 U.S.C. § 355 is approved by the United States
22 Food and Drug Administration;
23 (vi) A dietary supplements as defined by the Federal
24 Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq.; or
25 (vii) A fabric, textile, cordage, fiber, fuel,
26 paper, construction material, plastic, seed, seed meal, and seed oil;
27 (9)(A) “Manufacturer” means a person that manufactures,
28 fabricates, assembles, or processes a hemp-derived product, including without
29 limitation federally licensed importers and federally licensed distributors
30 that deal in hemp-derived products.
31 (B) “Manufacturer” includes:
32 (i) A sales entity affiliate of the manufacturer or
33 any other entity representing the manufacturer with regard to the sale of
34 hemp-derived products produced by the manufacturer to wholesalers or
35 permitted retailers; and
36 (ii) A person that mixes, compounds, extracts,
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1 infuses, blends, processes, repackages, or resizes hemp-derived products
2 including the extraction of cannabinoids from hemp biomass.
3 (C) “Manufacturer” does not include a person who engages
4 in the agricultural production of hemp, such as growing, planting, and
5 harvesting of raw hemp biomass regulated by the State Plant Board;
6 (10) “Minor” means a person who is under twenty-one (21) years
7 of age;
8 (11) "Person” means an individual, retailer, wholesaler,
9 manufacturer, firm, association, company, partnership, limited liability
10 company, corporation, joint-stock company, club, agency, syndicate, the State
11 of Arkansas, county, municipal corporation or other political subdivision of
12 the state, receiver, trustee, fiduciary, or trade association;
13 (12) “Place of business” means the physical location:
14 (A) Where orders for hemp-derived products are taken or
15 received or where hemp-derived products are sold; and
16 (B) That is on file with Arkansas Tobacco Control;
17 (13) “Retailer” means a person that purchases hemp-derived
18 products from permitted wholesalers for the purpose of selling the hemp-
19 derived products in person and over the counter at retail to consumers;
20 (14)(A) “Sale” or “sell” means a transfer, exchange, or barter
21 in any manner or by any means for any consideration, including distributing
22 or shipping hemp-derived product in connection with a sale.
23 (B) A sale “in” or “into” a state refers to the state in
24 which the destination point of the hemp-derived product is located in the
25 sale without regard to where title was transferred.
26 (C) A sale “from” a state refers to the sale of a hemp-
27 derived product that is located in that state to the destination in question
28 without regard to where title was transferred;
29 (15) “Self-service display” means a display:
30 (A) That contains a hemp-derived product, or any component
31 of a hemp-derived product;
32 (B) That is located in an area where customers are
33 permitted; and
34 (C) In which the hemp-derived product, or any component of
35 a hemp-derived product is readily accessible to a customer without the
36 assistance of a salesperson;
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1 (16) “Tetrahydrocannabinol” means a compound that is the
2 natural, primary active cannabinoid substance or its equivalent contained in
3 the plant of the genus cannabis or in the resinous extracts of the plant,
4 including derivatives or isomers derived from such cannabinoids;
5 (17) “Vapor product” means hemp-derived product that is an
6 electronic oral device of any size or shape that contains a vapor of hemp or
7 hemp-derived e-liquid product that when used or inhaled simulates smoking,
8 regardless of whether a visible vapor is produced, including without
9 limitation a device that:
10 (A) Is composed of a heating element, battery, electronic
11 circuit, chem