[Congressional Record Volume 164, Number 59 (Thursday, April 12, 2018)]
[Senate]
[Pages S2124-S2125]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCONNELL (for himself, Mr. Wyden, Mr. Merkley, and Mr. 
        Paul):
  S. 2667. A bill to amend the Agricultural Marketing Act of 1946 to 
provide for State and Tribal regulation of hemp production, and for 
other purposes; read the first time.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2667

       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 ``Hemp Farming Act of 2018''.

     SEC. 2. HEMP PRODUCTION.

       The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
     seq.) is amended by adding at the end the following:

                     ``Subtitle G--Hemp Production

     ``SEC. 297A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Hemp.--The term `hemp' means the plant Cannabis 
     sativa L. and any part of that plant, including the seeds 
     thereof and all derivatives, extracts, cannabinoids, isomers, 
     acids, salts, and salts of isomers, whether growing or not, 
     with a delta-9 tetrahydrocannabinol concentration of not more 
     than 0.3 percent on a dry weight basis.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 5304).
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(4) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia;
       ``(C) the Commonwealth of Puerto Rico; and
       ``(D) any other territory or possession of the United 
     States.
       ``(5) State department of agriculture.--The term `State 
     department of agriculture' means the agency, commission, or 
     department of a State government responsible for agriculture 
     in the State.
       ``(6) Tribal government.--The term `Tribal government' 
     means the governing body of an Indian tribe.

     ``SEC. 297B. STATE AND TRIBAL PLANS.

       ``(a) Submission.--
       ``(1) In general.--A State or Indian tribe desiring to have 
     primary regulatory authority over the production of hemp in 
     the State or territory of the Indian tribe shall submit to 
     the Secretary, through the State department of agriculture 
     (in consultation with the Governor and chief law enforcement 
     officer of the State) or the Tribal government, as 
     applicable, a plan under which the State or Indian tribe 
     monitors and regulates that production as described in 
     paragraph (2).
       ``(2) Contents.--A State or Tribal plan referred to in 
     paragraph (1)--
       ``(A) shall only be required to include--
       ``(i) a practice to maintain relevant information regarding 
     land on which hemp is produced in the State or territory of 
     the Indian tribe, including a legal description of the land, 
     for a period of not less than 3 calendar years;
       ``(ii) a procedure for testing, using post-decarboxylation 
     or other similarly reliable methods, delta-9 
     tetrahydrocannabinol concentration levels of hemp produced in 
     the State or territory of the Indian tribe;
       ``(iii) a procedure for the effective disposal of products 
     that are produced in violation of this subtitle; and
       ``(iv) a procedure to comply with the enforcement 
     procedures under subsection (d); and
       ``(B) may include any other practice or procedure 
     established by a State or Indian tribe, as applicable, to the 
     extent that the practice or procedure is consistent with this 
     subtitle.
       ``(3) Relation to state and tribal law.--
       ``(A) No preemption.--Nothing in this subsection preempts 
     or limits any law of a State or Indian tribe regulating the 
     production of hemp, to the extent that law is consistent with 
     this subtitle.
       ``(B) References in plans.--A State or Tribal plan referred 
     to in paragraph (1) may include a reference to a law of the 
     State or Indian tribe regulating the production of hemp, to 
     the extent that law is consistent with this subtitle.
       ``(b) Approval.--
       ``(1) In general.--Not later than 60 days after receipt of 
     a State or Tribal plan under subsection (a), the Secretary 
     shall--
       ``(A) approve the State or Tribal plan if the State or 
     Tribal plan complies with subsection (a); or
       ``(B) disapprove the State or Tribal plan only if the State 
     or Tribal plan does not comply with subsection (a).
       ``(2) Amended plans.--If the Secretary disapproves a State 
     or Tribal plan under paragraph (1)(B), the State, through the 
     State department of agriculture (in consultation with the 
     Governor and chief law enforcement officer of the State) or 
     the Tribal government, as applicable, may submit to the 
     Secretary an amended State or Tribal plan that complies with 
     subsection (a).
       ``(c) Technical Assistance.--The Secretary may provide 
     technical assistance to a State or Indian tribe in the 
     development of a State or Tribal plan under subsection (a).
       ``(d) Violations.--
       ``(1) In general.--A violation of a State or Tribal plan 
     approved under subsection (b) shall be subject to enforcement 
     solely in accordance with this subsection.
       ``(2) Negligent violations.--
       ``(A) In general.--A hemp producer in a State or the 
     territory of an Indian tribe for which a State or Tribal plan 
     is approved under subsection (b) shall be subject to 
     subparagraph (B) of this paragraph if the State department of 
     agriculture or Tribal government, as applicable, determines 
     that the hemp producer has negligently violated the State or 
     Tribal plan, including by negligently--
       ``(i) failing to provide a legal description of land on 
     which the producer produces hemp;
       ``(ii) failing to obtain a license or other required 
     authorization from the State department of agriculture or 
     Tribal government, as applicable; or
       ``(iii) producing Cannabis sativa L. with a delta-9 
     tetrahydrocannabinol concentration

[[Page S2125]]

     of more than 0.3 percent on a dry weight basis.
       ``(B) Corrective action plan.--A hemp producer described in 
     subparagraph (A) shall comply with a plan established by the 
     State department of agriculture or Tribal government, as 
     applicable, to correct the negligent violation, including--
       ``(i) a reasonable date by which the hemp producer shall 
     correct the negligent violation; and
       ``(ii) a requirement that the hemp producer shall 
     periodically report to the State department of agriculture or 
     Tribal government, as applicable, on the compliance of the 
     hemp producer with the State or Tribal plan for a period of 
     not less than the next 2 calendar years.
       ``(C) Result of negligent violation.--Except as provided in 
     subparagraph (D), a hemp producer that negligently violates a 
     State or Tribal plan under subparagraph (A) shall not be 
     subject to any criminal or civil enforcement action by the 
     Federal Government or any State government, Tribal 
     government, or local government other than the enforcement 
     action authorized under subparagraph (B).
       ``(D) Repeat violations.--A hemp producer that negligently 
     violates a State or Tribal plan under subparagraph (A) 3 
     times in a 5-year period shall be ineligible to produce hemp 
     for a period of 5 years beginning on the date of the third 
     violation.
       ``(3) Other violations.--If the State department of 
     agriculture or Tribal government in a State or the territory 
     of an Indian tribe for which a State or Tribal plan is 
     approved under subsection (b), as applicable, determines that 
     a hemp producer in the State or territory has violated the 
     State or Tribal plan with a culpable mental state greater 
     than negligence--
       ``(A) the State department of agriculture or Tribal 
     government, as applicable, shall immediately report the hemp 
     producer to--
       ``(i) the Attorney General; and
       ``(ii) in the case of a State department of agriculture, 
     the chief law enforcement officer of the State; and
       ``(B) paragraph (1) of this subsection shall not apply to 
     the violation.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.
       ``(f) Effect.--Nothing in this section prohibits the 
     production of hemp in a State or the territory of an Indian 
     tribe for which a State or Tribal plan is not approved under 
     this section in accordance with other Federal laws (including 
     regulations).

     ``SEC. 297C. AUTHORITY TO ISSUE REGULATIONS AND GUIDELINES.

       ``The Secretary shall have sole authority to issue Federal 
     regulations and guidelines that relate to the production of 
     hemp, including Federal regulations and guidelines that 
     relate to the implementation of section 297B.''.

     SEC. 3. FUNDING FOR HEMP RESEARCH.

       (a) Supplemental and Alternative Crops.--Section 
     1473D(c)(3)(E) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3319d(c)(3)(E)) is amended by inserting ``(including hemp (as 
     defined in section 297A of the Agricultural Marketing Act of 
     1946))'' after ``material''.
       (b) Critical Agricultural Materials.--Section 5(b)(9) of 
     the Critical Agricultural Materials Act (7 U.S.C. 178c(b)(9)) 
     is amended by inserting ``, and including hemp (as defined in 
     section 297A of the Agricultural Marketing Act of 1946)'' 
     after ``hydrocarbon-containing plants''.

     SEC. 4. LEGITIMACY OF INDUSTRIAL HEMP RESEARCH.

       (a) In General.--Section 7606 of the Agricultural Act of 
     2014 (7 U.S.C. 5940) is amended--
       (1) by redesignating subsections (a) and (b) as subsections 
     (b) and (a), respectively, and moving the subsections so as 
     to appear in alphabetical order;
       (2) in subsection (b) (as so redesignated), in the 
     subsection heading, by striking ``In General'' and inserting 
     ``Industrial Hemp Research''; and
       (3) by adding at the end the following:
       ``(c) Study and Report.--
       ``(1) In general.--The Secretary shall conduct a study of 
     agricultural pilot programs--
       ``(A) to determine the economic viability of the domestic 
     production and sale of industrial hemp; and
       ``(B) that shall include a review of--
       ``(i) each agricultural pilot program; and
       ``(ii) any other agricultural or academic research relating 
     to industrial hemp.
       ``(2) Report.--Not later than 120 days after the date of 
     enactment of this subsection, the Secretary shall submit to 
     Congress a report describing the results of the study 
     conducted under paragraph (1).''.
       (b) Repeal.--Effective on the date that is 1 year after the 
     date of enactment of this Act, section 7606 of the 
     Agricultural Act of 2014 (7 U.S.C. 5940) is repealed.

     SEC. 5. FEDERAL CROP INSURANCE.

       (a) Definition of Hemp.--Section 502(b) of the Federal Crop 
     Insurance Act (7 U.S.C. 1502(b)) is amended--
       (1) by redesignating paragraphs (8) through (11) as 
     paragraphs (9) through (12), respectively; and
       (2) by inserting after paragraph (7) the following:
       ``(8) Hemp.--The term `hemp' has the meaning given the term 
     in section 297A of the Agricultural Marketing Act of 1946.''.
       (b) Insurance Period.--Section 508(a)(2) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(a)(2)) is amended by 
     striking ``and sweet potatoes'' and inserting ``sweet 
     potatoes, and hemp''.
       (c) Submission of Policies and Materials to Board.--Section 
     508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) 
     is amended--
       (1) in paragraph (1)(B)--
       (A) by redesignating clauses (i) through (iii) as 
     subclauses (I) through (III), respectively, and indenting 
     appropriately;
       (B) in the matter preceding subclause (I) (as so 
     redesignated), by striking ``The Corporation shall'' and 
     inserting the following:
       ``(i) In general.--The Corporation shall'';
       (C) in clause (i)(I) (as so redesignated), by inserting 
     ``subject to clause (ii),'' before ``will likely''; and
       (D) by adding at the end the following:
       ``(ii) Waiver for hemp.--The Corporation may waive the 
     viability and marketability requirement under clause (i)(I) 
     in the case of a policy or pilot program relating to the 
     production of hemp.''; and
       (2) in paragraph (3)(C)--
       (A) in clause (ii), by striking ``and'' at the end;
       (B) in clause (iii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iv) in the case of reviewing policies and other 
     materials relating to the production of hemp, may waive the 
     viability and marketability requirement under subparagraph 
     (A)(ii)(I).''.
       (d) Agricultural Commodity.--Section 518 of the Federal 
     Crop Insurance Act (7 U.S.C. 1518) is amended by inserting 
     ``hemp,'' before ``aquacultural species''.
       (e) Research and Development Authority.--Section 522(b) of 
     the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is 
     amended--
       (1) in paragraph (2), by adding at the end the following:
       ``(K) Waiver for hemp.--The Board may waive the viability 
     and marketability requirements under this paragraph in the 
     case of research and development relating to a policy to 
     insure the production of hemp.''; and
       (2) in paragraph (3)--
       (A) by striking ``The Corporation'' and inserting the 
     following:
       ``(A) In general.--Subject to subparagraph (B), the 
     Corporation''; and
       (B) by adding at the end the following:
       ``(B) Waiver for hemp.--The Corporation may waive the 
     marketability requirement under subparagraph (A) in the case 
     of research and development relating to a policy to insure 
     the production of hemp.''.

     SEC. 6. CONFORMING CHANGES TO CONTROLLED SUBSTANCES ACT.

       (a) In General.--Section 102(16) of the Controlled 
     Substances Act (21 U.S.C. 802(16)) is amended--
       (1) by striking ``(16) The'' and inserting ``(16)(A) 
     Subject to subparagraph (B), the''; and
       (2) by striking ``Such term does not include the'' and 
     inserting the following:
       ``(B) The term `marihuana' does not include--
       ``(i) hemp, as defined in section 297A of the Agricultural 
     Marketing Act of 1946; or
       ``(ii) the''.
       (b) Tetrahydrocannabinol.--Schedule I, as set forth in 
     section 202(c) of the Controlled Substances Act (21 U.S.C. 
     812(c)), is amended in subsection (c)(17) by inserting after 
     ``Tetrahydrocannabinols'' the following: ``, except for 
     tetrahydrocannabinols in hemp (as defined under section 297A 
     of the Agricultural Marketing Act of 1946)''.

     SEC. 7. RULE OF CONSTRUCTION.

       Nothing in this Act authorizes interference with the 
     interstate commerce of hemp (as defined in section 297A of 
     the Agricultural Marketing Act of 1946, as added by section 
     2).

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