[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 980 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 980

 To amend the Agricultural Marketing Act of 1946 to exempt industrial 
 hemp from certain requirements under the hemp production program, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2023

 Mr. Tester (for himself and Mr. Braun) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the Agricultural Marketing Act of 1946 to exempt industrial 
 hemp from certain requirements under the hemp production program, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Industrial Hemp Act of 2023''.

SEC. 2. EXEMPTIONS OF INDUSTRIAL HEMP UNDER HEMP PRODUCTION PROGRAM.

    (a) Definitions.--Section 297A of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1639o) is amended--
            (1) in paragraph (1)--
                    (A) by striking the period at the end and inserting 
                ``; and'';
                    (B) by striking ``means the plant'' and inserting 
                the following: ``means--
                    ``(A) the plant''; and
                    (C) by adding at the end the following:
                    ``(B) industrial hemp.'';
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Industrial hemp.--The term `industrial hemp' means 
        the plant Cannabis sativa L. if the harvested material is 
        only--
                    ``(A)(i) the stalks of that plant;
                    ``(ii) fiber produced from those stalks; or
                    ``(iii) any other manufacture, derivative, mixture, 
                or preparation of those stalks (except cannabinoid 
                resin extracted from those stalks);
                    ``(B) whole grain, oil, cake, nut, hull, or any 
                other compound, manufacture, derivative, mixture, or 
                preparation of the seeds of that plant (except 
                cannabinoid resin extracted from the seeds of that 
                plant); or
                    ``(C) viable seeds of that plant produced solely 
                for production or manufacture of any material described 
                in subparagraph (A) or (B).''.
    (b) State and Tribal Plans.--Section 297B of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1639p) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(A)--
                            (i) by redesignating clauses (ii) through 
                        (vii) as clauses (iii) through (viii), 
                        respectively;
                            (ii) by inserting after clause (i) the 
                        following:
                            ``(ii) a procedure by which a hemp producer 
                        shall designate the type of production of the 
                        hemp producer as--
                                    ``(I) industrial hemp; or
                                    ``(II) hemp for any purpose;'';
                            (iii) in clause (iii) (as so redesignated), 
                        by inserting ``, excluding industrial hemp,'' 
                        after ``hemp''; and
                            (iv) in clause (viii) (as so redesignated), 
                        by striking ``(vi)'' and inserting ``(vii)'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by striking ``Nothing'' 
                        and inserting ``Except as provided in 
                        subparagraph (C), nothing''; and
                            (ii) by adding at the end the following:
                    ``(C) Preemption.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), no State or Indian tribe may 
                        establish or continue in effect any law that--
                                    ``(I) regulates the production of 
                                industrial hemp in compliance with this 
                                subtitle; and
                                    ``(II) is more stringent than this 
                                subtitle.
                            ``(ii) Violations with higher 
                        culpability.--Clause (i) shall not apply to any 
                        law relating to any violation of or described 
                        in subsection (e)(3).''; and
                    (C) by adding at the end the following:
            ``(4) Inspections of industrial hemp producers.--With 
        respect to annual inspections of industrial hemp producers 
        under paragraph (2)(A)(vi)--
                    ``(A) the inspection shall be a visual inspection;
                    ``(B) if a producer fails a visual inspection under 
                subparagraph (A), the State or Indian tribe may require 
                the producer to provide to the State or Indian tribe 
                documentation that demonstrates a clear intent and in-
                field practices consistent with the designation of the 
                type of production as industrial hemp under paragraph 
                (2)(A)(ii)(I), including seed tags, sales contracts, a 
                Farm Service Agency report, harvest techniques, or a 
                harvest inspection; and
                    ``(C) if a producer fails to provide documentation 
                demonstrating a clear intent and in-field practices 
                described in subparagraph (B), the State or Indian 
                tribe may require chemical testing on harvested 
                material of the producer that failed the visual 
                inspection under subparagraph (A).'';
            (2) in subsection (e)--
                    (A) in paragraph (2)(A)(iii), by striking 
                ``basis.'' and inserting ``basis, unless the hemp 
                producer designated the type of production as 
                industrial hemp under subsection (a)(2)(A)(ii)(I).''; 
                and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by striking 
                        ``negligence--'' and inserting ``negligence, or 
                        knowingly produced a crop that is inconsistent 
                        with the designation of the type of production 
                        of the hemp producer as industrial hemp under 
                        subsection (a)(2)(A)(ii)(I)--'';
                            (ii) in subparagraph (B)(ii)--
                                    (I) in the clause heading, by 
                                striking ``Exception'' and inserting 
                                ``Exceptions'';
                                    (II) by striking ``person growing'' 
                                and inserting the following: ``person--
                                    ``(I) growing'';
                                    (III) in subclause (I) (as so 
                                designated), by striking the period at 
                                the end and inserting ``; or''; and
                                    (IV) by adding at the end the 
                                following:
                                    ``(II) that designates the type of 
                                production of the person as industrial 
                                hemp under subsection 
                                (a)(2)(A)(ii)(I).''; and
                            (iii) by adding at the end the following:
                    ``(D) Production inconsistent with industrial hemp 
                designation.--Any person who knowingly produces a crop 
                that is inconsistent with the designation of the type 
                of production of the person as industrial hemp under 
                subsection (a)(2)(A)(ii)(I) shall be ineligible to 
                participate in the program established under this 
                section for a period of 5 years beginning on the date 
                of the violation.''; and
            (3) in subsection (f)(2), by inserting ``, excluding 
        industrial hemp,'' after ``hemp''.
    (c) Department of Agriculture.--Section 297C of the Agricultural 
Marketing Act of 1946 (7 U.S.C. 1639q) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) by redesignating subparagraphs (B) 
                        through (F) as subparagraphs (C) through (G), 
                        respectively;
                            (ii) by inserting after subparagraph (A) 
                        the following:
                    ``(B) a procedure by which a hemp producer shall 
                designate the type of production of the hemp producer 
                as--
                            ``(i) industrial hemp; or
                            ``(ii) hemp for any purpose;''; and
                            (iii) in subparagraph (C) (as so 
                        redesignated), by inserting ``, excluding 
                        industrial hemp,'' after ``hemp''; and
                    (B) by adding at the end the following:
            ``(3) Inspections of industrial hemp producers.--With 
        respect to annual inspections of industrial hemp producers 
        under paragraph (2)(F)--
                    ``(A) the inspection shall be a visual inspection;
                    ``(B) if a producer fails a visual inspection under 
                subparagraph (A), the Secretary may require the 
                producer to provide to the Secretary documentation that 
                demonstrates a clear intent and in-field practices 
                consistent with the designation of the type of 
                production as industrial hemp under paragraph 
                (2)(B)(i), including seed tags, sales contracts, a Farm 
                Service Agency report, harvest techniques, or a harvest 
                inspection; and
                    ``(C) if a producer fails to provide documentation 
                demonstrating a clear intent and in-field practices 
                described in subparagraph (B), the Secretary may 
                require chemical testing on harvested material of the 
                producer that failed the visual inspection under 
                subparagraph (A).'';
            (2) in subsection (c)(3)--
                    (A) by striking ``report the production'' and 
                inserting the following: ``report to the Attorney 
                General--
                    ``(A) the production''; and
                    (B) in subparagraph (A) (as so designated), by 
                striking ``subsection (b) to the Attorney General.'' 
                and inserting the following: ``subsection (b); and
                    ``(B) the production of a crop inconsistent with 
                the designation of the type of production of the 
                producer of the crop as industrial hemp under 
                subsection (a)(2)(B)(i).''; and
            (3) in subsection (d)(2)--
                    (A) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively; and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) for each hemp producer described in 
                subparagraph (A), the designation of the type of 
                production of the hemp producer under subsection 
                (a)(2)(B);''.

SEC. 3. REGULATIONS AND GUIDELINES.

    The Secretary of Agriculture shall promulgate regulations and 
guidelines to implement the amendments made by this Act as 
expeditiously as practicable.
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