BillCam

HOUSE BILL No. 6330

September 6, 2018, Introduced by Reps. Lauwers, Johnson, Barrett, Cole and Miller and referred to the Committee on Agriculture.

A bill to amend 2014 PA 547, entitled

"Industrial hemp research act,"

by amending the title and sections 1, 2, 3, and 4 (MCL 286.841,

286.842, 286.843, and 286.844) and by adding sections 5, 6, 7, 8,

9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act to authorize the growing and cultivating of industrial

hemp for research and development purposes; to require and provide

for the licensing of certain persons engaged in the growing,

processing, and handling of industrial hemp; to provide for the

collection of fees; to authorize the receipt and expenditure of

funding for research and development related to industrial hemp;

and to prescribe the powers and duties of certain state agencies

and officials and colleges and universities in this state; and to

provide for certain fines and sanctions.

Sec. 1. This act shall be known and may be cited as the

"industrial hemp research and development act".

Sec. 2. As used in this act:

(a) "Board" means the industrial hemp advisory board created

in section 6.

(b) "Broker" means to engage or participate in the marketing

of hemp by acting as an intermediary or negotiator between

prospective buyers and sellers.

of that plant, whether growing or not.

(d) (a) "Department" means the department of agriculture and

rural development.

(b) "Fund" means the industrial hemp research fund created in

section 4.

(e) "Director" means the director of the department, or his or

her designee.

(f) "GPS coordinates" means latitude and longitude coordinates

derived from a global positioning system.

(g) "Grow" means to plant, propagate, grow, cultivate, or

harvest live plants or viable seeds.

(h) "Grower" means a person that possesses a grower license

issued by the department under this act.

(i) "Handle" means to possess or store industrial hemp on

premises owned, operated, or controlled by a grower or processor-

handler or to transport hemp.

(j) "Hemp" means industrial hemp.

(k) (c) "Industrial hemp" means the plant Cannabis sativa

Cannabis sativaL. and any part of the that plant, including the

viable seeds of that plant 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% on a dry weight basis. Industrial hemp

includes industrial hemp commodities and products and topical or

ingestible animal and consumer products derived from the plant

Cannabis sativa L. with a delta-9 tetrahydrocannabinol

concentration of not more than 0.3% on a dry weight basis.

(l) "Licensee" means a grower or a processor-handler.

(m) "Licensing fund" means the industrial hemp licensing fund

created in section 5.

(n) "Location ID" means the unique identifier established by

the applicant for each unique set of GPS coordinates where hemp

will be grown, handled, stored, processed, or brokered.

(o) "Market" means to promote or sell hemp or a hemp product.

Market includes, but is not limited to, efforts to advertise and

gather information about the needs or preferences of potential

consumers or suppliers.

(p) "Nonviable seed" means seed that has been crushed,

dehulled, heat treated, or otherwise rendered to have a 0.0%

germination rate.

(q) "Person" means an individual or business entity.

(r) "Plot" means a contiguous area in a field, greenhouse, or

indoor growing structure containing the same variety of hemp

throughout the area.

(s) "Postharvest sample" means a hemp sample taken from the

harvested hemp of a single hemp plot.

(t) "Preharvest sample" means a composite and representative

hemp sample taken from plants in a single hemp plot that has not

been harvested.

(u) "Process" means to convert raw hemp into a marketable

form.

(v) "Processor-handler" means a person that possesses a

processor-handler license issued by the department under this act.

(w) "Program" means the industrial hemp licensing program

established by this act.

(x) "Propagule" means a plant or plant part that is utilized

to grow a new plant.

(y) "Research fund" means the industrial hemp research and

development fund created in section 4.

(z) "Secondary preharvest sample" means a preharvest sample

that is taken from a single hemp plot on a date after the date on

which an initial preharvest sample was taken.

(aa) "THC" means tetrahydrocannabinol.

(bb) "Variety" means a subdivision of a species that has the

following characteristics:

(i) The subdivision is uniform, in the sense that variations

between the subdivision and other subdivisions in essential and

distinctive characteristics are describable.

(ii) The subdivision is distinct, in the sense that the

subdivision can be differentiated by 1 or more identifiable

morphological, physiological, or other characteristics from all

other known subdivisions.

(iii) The subdivision is stable, in the sense that the

subdivision will remain uniform and distinct if reproduced.

(cc) "Viable seed" means seed that has a germination rate of

greater than 0.0%.

(dd) "Volunteer cannabis plant" means a cannabis plant that is

not intentionally planted and grows of its own accord from seeds or

roots in the years following an intentionally planted cannabis

crop.

Sec. 3. (1) The department or a college or university in this

state may grow or cultivate, or both, industrial hemp for purposes

of research conducted under an agricultural pilot program or other

agricultural or academic research project.

(2) The department or a college or university that transports

industrial hemp as part of a research project authorized under this

act shall include along with a shipment of industrial hemp a letter

on the department's or the college's or university's letterhead

that provides notice that the shipment includes industrial hemp

authorized under the industrial hemp research this act.

(3) A college or university in this state may receive direct

grants from the federal government or any other source for the

purpose of conducting research authorized under this act.

Sec. 4. (1) The industrial hemp research and development fund

is created within the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the research fund, including federal

research grants. The state treasurer shall direct the investment of

the research fund. The state treasurer shall credit to the research

fund interest and earnings from research fund investments.

(3) Money in the research fund at the close of the fiscal year

shall remain in the research fund and shall not lapse to the

general fund.

(4) The department shall be the administrator of the research

fund for auditing purposes.

(5) The department shall expend money from the research fund,

upon appropriation, only for 1 or more of the following purposes:

(a) Research into growing or cultivating, or both, industrial

hemp.

(b) Providing grants to colleges or universities in this state

to conduct research into growing or cultivating, or both,

industrial hemp.

Sec. 5. (1) The department shall establish an industrial hemp

licensing program operated and administered by the department.

(2) The department shall establish rules for the

implementation of this act in accordance with the administrative

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(3) The industrial hemp licensing fund is created within the

state treasury.

(4) The state treasurer may receive license fees and

administrative fines under this act for deposit into the licensing

fund. The state treasurer may also receive money or other assets

from any other source for deposit into the licensing fund. The

state treasurer shall credit to the licensing fund interest and

earnings from licensing fund investments.

(5) The department shall expend money from the licensing fund

to administer and carry out the duties required by this act.

(6) Money in the licensing fund at the close of the fiscal

year shall remain in the licensing fund and shall not lapse to the

general fund.

(7) The department shall be the administrator of the licensing

fund for auditing purposes.

Sec. 6. (1) The industrial hemp advisory board is created

within the department to advise the department with respect to

policies and procedures applicable to the administration of this

act.

(2) The board shall consist of the following members:

(a) The director or his or her designee.

(b) The director of the department of licensing and regulatory

affairs or his or her designee.

or a successor entity, or his or her designee.

(d) The director of the department of state police or his or

her designee.

(e) The president of the Michigan Sheriffs' Association, or a

successor entity, or his or her designee.

(f) The president of the Michigan Association of Chiefs of

Police, or a successor entity, or his or her designee.

(g) Eight at-large members appointed by the director in

accordance with the following:

(i) One or more members who represent hemp grain, fiber, or

seed growers.

(ii) One or more members who represent hemp grain or fiber

processor-handlers.

(iii) One or more members who represent hemp phytocannabinoid

growers.

(iv) One or more members who represent hemp phytocannabinoid

processor-handlers.

(3) The director or his or her designee shall serve as chair

of the board.

(4) The board shall meet at least 1 time annually at the call

of the chair.

(5) In making the initial appointments to the board for at-

large members, the director shall stagger the terms of the at-large

members. After the initial term, at-large members shall be

appointed to a term of 4 years.

(6) An at-large member shall serve until his or her term

expires or until a successor is appointed in the event of a

vacancy. If a vacancy occurs, the director shall appoint a new

member meeting the qualifications of the member vacating the

position to serve the remainder of the unexpired term of the

vacating member.

(7) The director shall have the authority to remove an at-

large member from the board.

(8) A board member shall not receive compensation but shall be

reimbursed, payable from the licensing fund, for actual travel

expenses incurred while attending a meeting of the board.

Sec. 7. (1) Except for a college or university in this state,

a person shall not grow industrial hemp in this state unless the

person is licensed under this act. A person other than a college or

university in this state that wishes to grow industrial hemp in

this state shall apply to the department for a grower license.

(2) An application for a grower license shall include, but is

not limited to, the following:

(a) A completed application form that includes, but is not

limited to, the following information:

(i) The applicant's full name, birth date, mailing address,

telephone number, and valid and monitored electronic mail address.

(ii) If the applicant represents a business entity, the full

name of the business entity, the business entity's mailing address,

and the full name of the applicant who will have signing authority

on behalf of the business entity, including his or her birth date,

title, and valid and monitored electronic mail address.

(iii) The proposed acreage and greenhouse or other indoor

square footage to be planted.

(iv) The street address, location ID, and GPS coordinates for

each field, greenhouse, building, or other site where hemp will be

grown, handled, or stored.

(b) Maps depicting each field, greenhouse, building, or other

site where hemp will be grown, handled, or stored, with appropriate

indications for entrances, field boundaries, and specific locations

corresponding to the GPS coordinates provided under subdivision

(a).

(d) The results of a criminal background check conducted in

accordance with section 9.

(e) A grower license application fee as provided in section

19.

(3) An initial grower license application may be submitted at

any time. An initial grower license issued by the department

expires at midnight on November 30 in the year in which it is

issued.

(4) Other than an initial grower license, a grower license is

valid for 1 year beginning on December 1 and expires at midnight on

November 30 each year.

(5) The department shall not issue a grower license

application to renew an existing grower license earlier than

October 1.

(6) If a license application to renew an existing grower

license is postmarked later than November 30, the application shall

be subject to a late fee of $250.00.

(7) A completed application and supporting documents submitted

to the department under this section are exempt from disclosure

under the freedom of information act, 1976 PA 442, MCL 15.231 to

15.246.

Sec. 8. (1) Except for a college or university in this state,

a person shall not process, broker, or market hemp in this state

unless they are licensed under this act. A person other than a

college or university in this state that wishes to process, broker,

or market hemp in this state shall apply to the department for a

processor-handler license.

(2) An application for a processor-handler license shall

include, but is not limited to, the following:

(a) A completed application form that includes, but is not

limited to, the following information:

(i) The applicant's full name, date of birth, mailing address,

telephone number, and valid and monitored electronic mail address.

(ii) If the applicant represents a business entity, the full

name of the business entity, the business entity's mailing address,

and the full name of the applicant who will have signing authority

on behalf of the business entity, including his or her birth date,

title, and valid and monitored electronic mail address.

(iii) The street address, location ID, and GPS coordinates for

each building or site where hemp will be processed, handled,

stored, or brokered.

(b) Maps depicting each building, or other site where hemp

will be processed, handled, stored, or brokered with appropriate

indications for entrances and specific locations corresponding to

the GPS coordinates provided under subdivision (a).

hemp.

(d) The results of a criminal background check conducted in

accordance with section 9.

(e) A processor-handler license application fee as provided in

section 19.

(3) An initial processor-handler license application may be

submitted at any time. An initial processor-handler license issued

by the department expires at midnight on November 30 in the year in

which it is issued.

(4) Other than an initial processor-handler license, a

processor-handler license is valid for 1 year beginning on December

(5) The department shall not issue a processor-handler license

application to renew an existing processor-handler license earlier

than October 1.

(6) If a license application to renew an existing processor-

handler license is postmarked later than November 30, the

application shall be subject to a late fee of $250.00.

(7) A completed application and supporting documents submitted

to the department under this section are exempt from disclosure

under the freedom of information act, 1976 PA 442, MCL 15.231 to

15.246.

Sec. 9. (1) A license applicant shall undergo and pay for a

criminal background check conducted by a state or federal law

enforcement agency selected by the department and ensure delivery

of the report to the department.

(2) The department shall not accept a report from a criminal

background check that was conducted more than 3 months before the

receipt of a license application.

(3) The substitution of an individual with signing authority

requires approval from the department and the submission of a

current criminal background check for the substitute individual.

Sec. 10. (1) The department shall issue a license or deny an

application submitted under this act in a timely manner. The

department shall deny a license application if the application is

incomplete or if any of the following apply:

(a) The applicant is under the age of 18.

(b) The applicant's growing, handling, storage, processing, or

brokering sites are not located in this state.

either of the following within the 10 years preceding the issue

date of the background check:

(i) A felony conviction.

(ii) A drug-related misdemeanor conviction or violation.

(d) The applicant has not demonstrated, as determined by the

director, a willingness to comply with the department's rules,

instructions from the department, or instructions from a law

enforcement agency.

(e) The applicant is delinquent in making a required report or

payment to the department in connection with the applicant's

involvement with the program or any other program within the

department.

(f) The applicant has unpaid fees, fines, or civil penalties

owed to the department under this act.

(g) The applicant has made false statements or

representations, as determined by the director, to the department

or a law enforcement agency.

(h) The applicant has had a grower license or processor-

handler license revoked in the 5 years preceding the date of

application.

(2) If the application is denied because it is incomplete, the

department shall notify the applicant in writing within a timely

manner after the department receives the application describing the

deficiency and requesting additional information.

(3) The department may approve an acreage or square footage

that is equal to, greater than, or less than the acreage or square

footage stated in the application for a grower license.

Sec. 11. (1) If the department denies a license application

under this act, the department shall notify the applicant of the

denial in writing by letter or electronic mail.

(2) An applicant may appeal a denial of his or her license

application by submitting to the department a written request for a

hearing. The applicant shall submit the request to the department

not more than 15 days after the date of the denial.

(3) The department shall conduct a hearing requested under

this section in accordance with the administrative procedures act

of 1969, 1969 PA 306, MCL 24.201 to 24.328.

Sec. 12. (1) A grower consents to all of the following:

(a) Entry onto, and inspection of, all premises by the

department or law enforcement agencies, with or without cause, and

with or without advance notice, where hemp or hemp cultivation

equipment or materials are located, or to be located.

(b) Collection by the department of samples of cannabis

material in possession of the grower at any time.

without compensation:

(i) Cannabis found to have a measured delta-9-THC content

greater than 0.3% on a dry weight basis.

(ii) Hemp present at a location that is not licensed by the

department.

(iii) Hemp that is not accounted for in required reporting to

the department.

(iv) Hemp that is grown, handled, or stored in a manner that

violates this act.

(d) The risk of financial or other loss under this act is

borne solely by the grower.

(2) A grower shall not do any of the following:

(a) Grow, handle, or store hemp for purposes other than

research into the growing of hemp.

(b) Handle or store hemp not grown under the authority of his

or her grower license unless licensed as a processor-handler.

location listed in his or her grower license.

(d) Grow, handle, or store hemp on land or within a structure

that is not owned or completely controlled by the grower.

(e) Interplant hemp with any other crop without express

written permission from the department. As used in this

subdivision, "interplant" means to plant a crop of hemp together

with a crop that is not hemp on a single plot of land.

(f) Sell or transport, or permit the sale or transport of,

living hemp plants, viable hemp seeds, hemp leaf material, or hemp

floral material to a location not listed in his or her license or

to a person in this state who is not a grower or processor-handler.

(g) Allow public access to or activities on a hemp growing

site, including, but not limited to, the operation of a hemp maze.

(h) Grow, handle, or store hemp in an outdoor field or site

that is located within 1,000 feet of a school or a public

recreational area.

(3) A grower shall do all of the following:

(a) Post signage in at least 1 conspicuous location at each

growing location. The signage shall include the following:

(i) The statement, "Industrial Hemp Licensed by the Michigan

Department of Agriculture and Rural Development".

(ii) The license holder's name.

(iii) The license holder's license number.

(b) Scout and monitor previously licensed growing sites for

volunteer cannabis plants and destroy those plants. The grower must

continue this activity for 3 years from the date a planting on the

site was last reported to the department.

enforcement concerning the requirements of this act within 72 hours

by telephone and in writing within 7 calendar days of the

interaction.

(d) Notify the department of a theft of hemp, whether growing

or not within 24 hours of discovering the theft.

(e) Submit all reports in a timely manner as required under

this act.

(f) Before implementing a change to the licensed sites

included in the grower license, submit a site modification request

form and the required fees, as described in section 19, based on

the requested changes and obtain prior written approval from the

department.

(g) Upon request from the department or a law enforcement

agency, immediately produce a copy of his or her license for

inspection.

(4) A grower may transfer up to 1 pound of hemp per transfer

to a testing laboratory for the purpose of measuring THC,

cannabidiol, or other phytocannabinoid levels.

(5) A grower may sell harvested hemp to a processing facility

licensed under the medical marihuana facilities licensing act, 2016

PA 281, MCL 333.27101 to 333.27801. If a grower intends to sell

harvested hemp to a facility described in this subsection, the

grower must apply for that designation on his or her grower license

application. Before selling harvested hemp to a facility described

in this subsection, the grower shall enter the sale into the seed-

to-sale tracking system established under section 3 of the

marihuana tracking act, 2016 PA 282, MCL 333.27903.

Sec. 13. (1) A processor-handler consents to all of the

following:

(a) Entry onto, and inspection of, all premises by the

department or law enforcement agencies, with or without cause, and

with or without advance notice, where hemp or hemp processing

equipment or materials are located or to be located.

(b) Collection by the department of samples of cannabis

material in possession of the processor-handler at any time.

without compensation:

(i) Cannabis found to have a measured delta-9-THC content

greater than 0.3% on a dry weight basis.

(ii) Hemp present at a location that is not licensed by the

department.

(iii) Hemp that is not accounted for in required reporting to

the department.

(iv) Hemp that is processed, handled, stored, or brokered in a

manner that violates this act.

(v) Live hemp plants unless the licensee is also licensed as a

grower.

(d) The risk of financial or other loss under this act is

borne solely by the processor-handler.

(2) A processor-handler shall not do any of the following:

(a) Process, handle, store, or broker hemp for purposes other

than research into the marketing of hemp.

(b) Process, handle, store, or broker hemp in a location other

than the location listed in his or her processor-handler license.

structure or vehicle that is not owned or completely controlled by

the processor-handler.

(d) Sell or transport, or permit the sale or transport of,

viable hemp seeds, hemp leaf material, or hemp floral material to a

location not listed in his or her current license or to a person in

this state who does not possess a grower license or processor-

handler license.

(3) A processor-handler shall do all of the following:

(a) Notify the department of any interaction with law

enforcement concerning the requirements of this act within 72 hours

by telephone and in writing within 7 calendar days of the

interaction.

(b) Notify the department of a theft of hemp material within

24 hours of discovering the theft.

this act.

(d) Before implementing a change to the licensed sites

included in the processor-handler license, submit a site

modification request form and the required fees, as described in

section 19, based on the requested changes and obtain prior written

approval from the department.

(e) Upon request from the department or a law enforcement

agency, immediately produce a copy of his or her license for

inspection.

(4) A processor-handler may transfer up to 1 pound of hemp per

transfer to a testing laboratory for the purpose of measuring THC,

cannabidiol, or other phytocannabinoid levels.

Sec. 14. (1) If any of the following allegations are made

concerning a licensee, the department shall suspend his or her

license for not more than 60 days:

(a) The licensee pled guilty to, or was convicted of, a felony

or drug-related misdemeanor or violation.

(b) The licensee intentionally grew or was in possession of

cannabis with a delta-9-THC content greater than 0.3% on a dry

weight basis.

(d) The licensee made a false statement, as determined by the

department, to the department or a law enforcement agency.

(e) The licensee failed to comply with an instruction or order

from the department or a law enforcement agency.

(2) If the department suspends a license, the department shall

notify the licensee in writing that his or her license has been

suspended.

(3) A person whose grower license has been suspended under

this section shall not harvest or remove hemp from the premises

where hemp was located at the time the department issued its notice

of suspension, except as authorized in writing by the department.

(4) A person whose processor-handler license has been

suspended under this section shall not process or remove hemp from

the premises where hemp was located at the time the department

issued its notice of suspension, except as authorized in writing by

the department.

(5) After issuing a notification of license suspension, the

department shall inspect the licensee's premises and perform an

inventory of all hemp that is in the licensee's possession.

Sec. 15. (1) The department shall not permanently revoke a

license suspended under section 14 unless the department has

notified the licensee of the allegation against him or her and

given the licensee an opportunity for a hearing to appeal the

revocation.

(2) The department shall schedule a license revocation hearing

for a date as soon as practicable that is not more than 60 days

after the date of notification of a license suspension.

(3) The department shall conduct the hearing required under

this section in accordance with the administrative procedures act

of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(4) If the director finds that it is more likely than not that

an allegation under section 14(1) concerning the person subject to

the license revocation hearing is true, the director shall revoke

the license effective immediately and the department or a law

enforcement agency shall order destroyed, or confiscate, all

cannabis that is in the person's possession.

(5) The department or a law enforcement agency shall not owe

compensation or indemnity for the value of the cannabis that is

destroyed or confiscated under this section.

(6) A person whose license has been revoked is barred from

participation in the program in any capacity for a minimum of 5

years from the date on which the license was revoked.

(7) If the director does not find that it is more likely than

not that an allegation under section 14(1) concerning the person

subject to a license revocation hearing is true, the department

shall lift the suspension imposed under section 14 within 24 hours.

Sec. 16. (1) A grower that intends to harvest or destroy a

hemp crop shall submit to the department a complete and current

harvest or destruction report. The grower shall submit the harvest

or destruction report not less than 15 days before the intended

harvest or destruction date. The report shall be submitted on a

form provided by the director.

(2) Upon the department's receipt of a harvest or destruction

report from a grower, the department shall schedule a preharvest

sample collection to be performed by the department on a date

determined by the department and communicated to the grower. A

grower who harvests or destroys a crop before a preharvest sample

is collected by the department is subject to suspension and

revocation of his or her license.

(3) During the department's scheduled preharvest sample

collection, all of the following apply:

(a) The grower or an authorized representative shall be

present at the growing site.

(b) The grower shall provide the department with complete and

unrestricted access to all cannabis, whether growing or harvested,

all land, buildings, and other structures used for growing,

handling, and storage of cannabis, and all locations listed in the

grower license.

be determined solely by the department.

(d) The department shall collect and retain samples from each

plot a grower intends to harvest or destroy.

(4) Unless otherwise and specifically authorized in writing by

the department, a grower shall harvest or destroy a crop from which

a preharvest sample was collected not more than 15 days after the

date of the sample collection.

(5) If a grower fails to complete the reported harvest or

destruction within 15 days after the department collects a

preharvest sample, the grower shall submit a new harvest or

destruction report and the department may order a secondary

preharvest sample of the plot. If the department orders a secondary

preharvest sample, the following apply:

(a) Before the department collects the sample, the department

shall assess against the grower a secondary preharvest sample fee

per plot as provided under section 19.

(b) A grower shall not harvest any remaining crop until the

department collects a secondary preharvest sample.

(6) The department shall measure the THC concentration of each

preharvest sample collected under this section. If the department

is not able to perform the THC test internally, the department may

identify and contract with a third-party laboratory to provide THC

testing services. If the result of an initial THC test on a

preharvest sample indicates a delta-9-THC concentration in the

preharvest sample that is greater than 0.3% on a dry weight basis,

the following shall apply:

(a) The department shall order a postharvest THC test of the

plot and the grower shall pay a postharvest testing fee as provided

under section 19.

(b) If within 15 days of notification of the preharvest THC

test a grower fails to pay the postharvest testing fee imposed by

the department under subdivision (a), the preharvest test results

stand, and the department or a law enforcement agency shall order

destroyed, or confiscate, all cannabis that is in the licensee's

possession.

(7) All samples collected by the department shall become the

property of the department and shall not be returnable. The

department shall not owe compensation for the collected samples.

(8) The department shall establish rules for collecting,

receiving, retaining, preparing, testing, and releasing samples

collected under this act in accordance with the administrative

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

Sec. 17. (1) A grower shall submit the following reports to

the department:

(a) A complete and current field planting report in accordance

with the following:

(i) The grower must submit the report not more than 15 days

after a planting, including a replanting, of seeds or propagules in

an outdoor location.

(ii) The report must identify the field location ID as listed

on the grower license, the primary intended use of the harvest for

each planting, and any other information requested by the

department.

(iii) A grower who does not plant hemp in an approved outdoor

site listed in the grower license must submit a field planting

report on or before July 31 stating that hemp has not and will not

be planted at that site.

(b) A complete and current greenhouse or indoor planting

report in accordance with the following:

(i) The grower shall submit the report not more than 15 days

after establishing plants at an indoor location.

(ii) In addition to the initial greenhouse or indoor planting

report, a grower with an approved greenhouse or indoor growing site

shall submit quarterly reports to the department for each location.

Quarterly greenhouse or indoor planting reports shall be due on

March 31, June 30, September 30, and December 31.

current license year.

(d) A completed research report by December 31 of the current

license year.

(2) A processor-handler shall submit the following reports to

the department:

(a) A completed production report by December 31 of the

current license year.

(b) A completed research report by December 31 of the current

license year.

(3) A licensee shall submit the report described in this

section on a form provided by the department.

(4) A licensee who fails to submit an accurate and complete

report as required under this act may be subject to suspension and

revocation of his or her license.

Sec. 18. (1) Before planting, handling, or storing hemp at a

site other than a site specified by the GPS coordinates listed in

his or her grower license, a grower shall submit to the department

a site modification request form and obtain written approval for

the proposed location from the department.

(2) The department shall assess a site modification fee as

provided under section 19 for each newly proposed growing location

where hemp will be planted, regardless of whether it is an

individual field or a greenhouse or other indoor structure. The

department shall not assess a site modification fee for changes to

storage-only or handling-only locations.

Sec. 19. (1) Except as otherwise provided under subsection

(4), an applicant for a license, or a licensee, under this act is

subject to the following fees, as applicable:

(a) A license application fee of $1,350.00 for each growing,

processing, handling, storage, or brokering address listed on the

application.

(b) A secondary preharvest sample fee as follows:

(i) The secondary preharvest sample fee is $600.00.

(ii) If 3 or more harvests are taken from the same plot, the

grower may be required to pay an additional secondary preharvest

sample fee.

(iii) If a grower fails to pay a secondary preharvest sample

fee within 15 days of invoice, the department may suspend his or

her license.

(i) The postharvest testing fee is $600.00 for each sample.

(ii) The department shall not collect a postharvest sample

unless the grower has paid the postharvest testing fee in full.

(d) A site modification fee as follows:

(i) The site modification fee is $1,000.00 for each GPS

coordinate location change per growing site after a grower license

has been issued.

(ii) The department shall not approve a site modification

request for a newly proposed growing site unless the grower has

paid the site modification fee in full.

(2) All fees under this act shall be paid with a check or

money order payable to the department within 15 days of invoice.

(3) A fee required under this section is nonrefundable.

(4) The department may annually adjust the schedule of fees

described in this section to ensure that the fees assessed under

each category are sufficient to cover the cost of the activities

associated with that category and that the aggregate of fees

collected is sufficient to pay for the administration and operation

of the program as provided in this act. The director may raise the

fees listed in this section by an amount determined by the state

treasurer to reflect the cumulative annual percentage change in the

Detroit-Ann Arbor-Flint Consumer Price Index over the preceding 1-

year period. If the cumulative annual percentage change over the

preceding 1-year period is less than zero, a cumulative annual

percentage change of zero shall be used for the adjustment. The

adjustment shall be rounded to the nearest dollar. The commission

of agriculture and rural development shall approve all adjustments

to the fees before they are adopted.

Sec. 20. (1) A person who individually, or by the action of

his or her agent or employee, or as the agent or employee of

another, violates this act or a rule promulgated under this act is

subject to an administrative fine. Upon the request of a person to

whom an administrative fine is issued, the director shall conduct a

hearing in accordance with the administrative procedures act of

1969, 1969 PA 306, MCL 24.201 to 24.328. The department shall

impose a fine authorized by this section as follows:

(a) For a first violation, not less than $100.00 or more than

$500.00, plus actual costs of the investigation and double the

amount of any economic benefit associated with the violation.

(b) For a second violation within 5 years after the first

violation, not less than $500.00 or more than $1,000.00, plus

actual costs of the investigation and double the amount of any

economic benefit associated with the violation.

the date of the first violation, not less than $1,000.00 or more

than $2,000.00, plus actual costs of the investigation and double

the amount of any economic benefit associated with the violation.

(2) A decision of the director under this section is subject

to judicial review as provided by law.

(3) The director shall advise the attorney general of the

failure of any person to pay an administrative fine imposed under

this section. The attorney general shall bring an action in a court

of competent jurisdiction to recover the fine.

(4) Any administrative fine, investigation costs, or recovery

of economic benefit associated with a violation that is collected

under this section shall be paid to the state treasury and

deposited into the licensing fund.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.