HB 1243

Under present law, a person or entity that is in the business of manufacturing or selling hemp-derived cannabinoid products ("HDCP"") in this state, including as a supplier or retailer, must obtain a license from the department of agriculture. In order to obtain and maintain a supplier or retailer license, a person must: ( 1 ) Submit to the department of agriculture information prescribed by rules; ( 2 ) Pay a fee of $500 for supplier or $250 per retailer per location; ( 3 ) Consent to reasonable inspection and sampling by the department of agriculture, or the department of revenue as applicable, of the person's inventory of products containing a hemp-derived cannabinoid; and ( 4 ) Submit to a criminal history background check that includes fingerprint checks against state and federal criminal records. This bill makes the licensure and regulatory requirements for HDCPs applicable to smoking hemp. This bill defines ""smoking hemp"" to mean hemp that is offered for sale to the public with the intention that it is consumed by smoking and that does not meet the definition of a hemp-derived cannabinoid or a vapor product . The regulatory requirements that will apply to smoking hemp include seizure of product that is offered for sale by an unlicensed person, inspections, packaging and labeling requirements, pro per storage of unused portions of product, For purposes of this bill, a person is deemed a manufacturer of smoking hemp if the person package s, repackage s, label s, or relabel s smoking hemp . Under present law, a retail location that is within 1, 000 feet of a private school, public school, or charter school that serves any grades from kindergarten through 12 is prohibited from sell ing HDCP, unless the applicant provides the department with documentation that establishes that HDCPs were being offered for sale at retail at such location on December 31, 2023. This bill makes the setback also apply to retail locations that sell smoking hemp and changes the setback distance to 500 feet, unless an a pplicant for licensure provides the department with documentation that establishes that HDCP were being offered for sale at retail at such location on July 1, 2025 . This bill extends the six percent privilege tax on engaging in the business of selling HDCP to the privilege of selling smoking hemp."