(a) No person shall manufacture in the state without a license to manufacture issued by the Commissioner of Consumer Protection.
(b) Each applicant for a manufacturer license shall submit an application on a form and in a manner prescribed by the Commissioner of Consumer Protection.
(c) The following fees shall apply for a license to manufacture:
(1) A nonrefundable license application fee of fifty dollars; and
(2) A nonrefundable licensing fee of two hundred fifty dollars for a license to manufacture hemp.
(d) A license to manufacture hemp or hemp products issued by the Commissioner of Consumer Protection pursuant to this section shall expire biennially on June thirtieth. Such licenses shall not be transferable.
(e) In accordance with a hearing held pursuant to chapter 54, the Commissioner of Consumer Protection may deny, suspend or revoke a manufacturer license, issue fines of not more than two thousand five hundred dollars per violation and place conditions upon a manufacturer licensee who violates the provisions of this section and any regulation adopted pursuant to this section.
(f) (1) Any individual who manufactures in this state without obtaining a license pursuant to this section or who manufactures in this state after such entity's license is suspended or revoked shall be fined two hundred fifty dollars in accordance with the provisions of section 51-164n.
(2) Any business entity who manufactures in this state without obtaining a license pursuant to this section, or who manufactures in this state after having a license suspended, shall be fined not more than two thousand five hundred dollars per violation after a hearing conducted in accordance with the provisions of chapter 54.
(g) Nothing in this section shall be construed to apply to any licensee of palliative marijuana authorized pursuant to chapter 420f.
(h) The Commissioner of Consumer Protection may inspect and shall have access to the buildings, equipment, supplies, vehicles, records, real property and other information of any manufacturer applicant or licensee that the commissioner deems necessary to carry out the commissioner's duties pursuant to this section.
(i) (1) Each manufacturer shall follow the protocol in this subsection for disposing of hemp or hemp products in the event that any hemp or hemp product is deemed to contain a THC concentration of more than 0.3 per cent on a dry weight basis, as determined by the Commissioner of Consumer Protection, or a manufacturer licensee in possession of hemp or hemp products who desires to dispose of obsolete, misbranded, excess or otherwise undesired product. Each manufacturer licensee shall be responsible for all costs of disposal of hemp samples and any hemp produced by such licensee that violates the provisions of this section or any regulation adopted pursuant to this section. Any hemp or hemp product containing a THC concentration of more than 0.3 per cent on a dry weight basis shall be immediately embargoed by such manufacturer and clearly labeled as adulterated by such licensee and such licensee shall immediately notify both the Department of Consumer Protection and the Department of Agriculture, in writing, of such adulterated product. Such adulterated product shall be destroyed and disposed of by the following method, as determined by the Commissioner of Consumer Protection:
(A) Surrender, without compensation, of such hemp or hemp product to the Commissioner of Consumer Protection who shall be responsible for the destruction and disposal of such adulterated product; or
(B) By disposal in the presence of an authorized representative of the Commissioner of Consumer Protection in such a manner as to render the hemp or hemp product nonrecoverable.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, upon written request of a manufacturer, the Commissioner of Consumer Protection may permit such manufacturer to combine different batches to achieve a THC concentration of 0.3 per cent on a dry weight basis, in lieu of embargo or destruction.
(j) The person disposing of the hemp or hemp products shall maintain and make available to the Commissioner of Consumer Protection a record of each such disposal or destruction of product indicating:
(1) The date, time and location of disposal or destruction;
(2) The manner of disposal or destruction;
(3) The batch or lot information and quantity of hemp or hemp product disposed of or destroyed; and
(4) The signatures of the persons disposing of the hemp or hemp products, the authorized representative of the Commissioner of Consumer Protection and any other persons present during the disposal.
(k) Any hemp intended to be manufactured as a consumable shall be tested by an independent testing laboratory or any other such laboratory that is accredited as a testing laboratory to International Organization for Standardization (ISO) 17025 by a third-party accrediting body. A manufacturer licensee shall make available samples, in an amount and type determined by the Commissioner of Consumer Protection, of hemp or hemp product for an independent testing laboratory employee to select random samples. The independent testing laboratory or other such laboratory shall test each sample for microbiological contaminants, mycotoxins, heavy metals and pesticide chemical residue, and for purposes of conducting an active ingredient analysis, if applicable, as determined by the Commissioner of Consumer Protection.
(l) Once a batch of hemp or hemp product, intended to be sold as a consumable, has been homogenized for sample testing and eventual packaging and sale, until the independent testing laboratory or other such laboratory provides the results from its tests and analysis, the manufacturer licensee shall segregate and withhold from use the entire batch of hemp that is intended for consumable use, except the samples that have been removed by the independent testing laboratory for testing. During this period of segregation, the manufacturer licensee shall maintain the hemp or hemp product batch in a secure, cool and dry location, as prescribed by the Commissioner of Consumer Protection, so as to prevent the hemp or hemp product from becoming adulterated. Such manufacturer shall not manufacture or sell a consumable prior to the time that the independent testing laboratory or other such laboratory completes testing and analysis and provides such results, in writing, to the manufacturer licensee who initiated such testing.
(m) An independent testing laboratory or other such laboratory shall immediately return or dispose of any hemp or hemp product upon the completion of any testing, use or research. If an independent testing laboratory or other such laboratory disposes of hemp, the laboratory shall dispose of such hemp in the following manner, as determined by the Commissioner of Consumer Protection:
(1) By surrender, without compensation, of such hemp or hemp product to the Commissioner of Consumer Protection who shall be responsible for the destruction and disposal of such hemp or hemp product; or
(2) By disposal in the presence of an authorized representative of the Commissioner of Consumer Protection in such a manner as to render the hemp or hemp product nonrecoverable.
(n) If a sample does not pass the microbiological, mycotoxin, heavy metal or pesticide chemical residue test, based on the standards prescribed by the Commissioner of Consumer Protection and published on the Internet web site of the Department of Consumer Protection, the manufacturer licensee who sent such batch for testing shall dispose of the entire batch from which the sample was taken in accordance with procedures established by the Commissioner of Consumer Protection pursuant to subdivision (1) of subsection (i) of this section.
(o) If a sample passes the microbiological, mycotoxin, heavy metal and pesticide chemical residue test, the independent testing laboratory or other such laboratory shall release the entire batch for manufacturing, processing or sale.
(p) The independent testing laboratory or other such laboratory shall file with the Department of Consumer Protection an electronic copy of each laboratory test result for any batch that does not pass the microbiological, mycotoxin, heavy metal or pesticide chemical residue test, at the same time that it transmits such results to the manufacturer licensee who requested such testing. Each independent testing laboratory or other such laboratory shall maintain the test results of each tested batch for a period of three years and shall make such results available to the Department of Consumer Protection upon request.
(q) Manufacturer licensees shall maintain records required by the federal act, this section and any regulation adopted pursuant to this section. Each manufacturer licensee shall make such records available to the Department of Consumer Protection immediately upon request and in electronic format, if available.
(r) The Commissioner of Consumer Protection may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section including, but not limited to, establishing sampling and testing procedures to ensure compliance with the federal act, to prescribe disposal procedures for plants grown in violation of the federal act and to establish advertising and labeling requirements for consumables.
(s) Any claim of health impacts, medical effects or physical or mental benefits shall be prohibited on any advertising for, labeling of or marketing of consumables. Any violation of this subsection shall be deemed an unfair or deceptive trade practice under chapter 735a.
(t) Not later than February 1, 2020, the Commissioners of Agriculture and Consumer Protection shall submit a report, in accordance with section 11-4a, to the joint standing committee of the general assembly having cognizance of matters relating to the environment on the status of the pilot program, the development of the state plan and any regulations for such pilot program or state plan. Additionally such report shall include any legislative recommendations, including, but not limited to, any recommendations for requiring the registration of any consumable offered for sale in this state.
(P.A. 19-3, S. 2; 19-117, S. 154.)
History: P.A. 19-3 effective May 9, 2019; P.A. 19-117 amended Subsec. (n) to delete references to adoption of regulations pursuant to Ch. 54 and add reference to Subsec. (i)(1), effective June 26, 2019.