71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2594
 
                         Senate Bill 531
 
Sponsored by Senator L BEYER (at the request of Mapleton High
  School students)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Permits growing of industrial hemp. Authorizes State Department
of Agriculture to administer licensing and inspection program.
Authorizes civil penalty not exceeding $2,500.
 
                        A BILL FOR AN ACT
Relating to industrial hemp; creating new provisions; and
  amending ORS 475.005 and 561.144.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 4 of this 2001 Act:
  (1) 'Agricultural seed' means industrial hemp seed that meets
any labeling, quality and other standards set by the Director of
Agriculture and that is intended for sale or is sold to, or
purchased by, licensed growers for planting.
  (2) 'Crop' means any contiguous field of industrial hemp grown
under a single license.
  (3) 'Department' means the State Department of Agriculture.
  (4) 'Grower' means a person, as defined in ORS 174.100, joint
venture or cooperative that produces industrial hemp.
  (5) 'Handler' means a person, as defined in ORS 174.100, joint
venture or cooperative that receives industrial hemp for
processing into commodities, products or agricultural seed.
  (6) 'Industrial hemp' means all parts and varieties of the
plant Cannabis sativa, whether growing or not, that contain a
tetrahydrocannabinol concentration, the average of which may not
exceed one percent on a dry weight basis and that are cultivated
or possessed by a grower or handler in compliance with the
provisions of sections 1 to 4 of this 2001 Act. 'Industrial hemp'
is separate and distinct from marijuana. 'Industrial hemp' does
not include products made from industrial hemp, such as building
materials, cloth, cordage, fiber, food, fuel, industrial
chemicals, paint, paper, particle board, floor coverings,
plastics, seed meal, seed oil for consumption or yarn and does
not include seed other than seed that is part of a growing crop
or seed that is retained by a grower for future planting and
agricultural seed. + }
  SECTION 2.  { + Industrial hemp production and possession and
commerce in industrial hemp are authorized in this state.
Industrial hemp is an agricultural product and subject to
regulation by the State Department of Agriculture. + }
 
  SECTION 3. { +  (1) All growers or handlers of industrial hemp
must have an industrial hemp license as prescribed by the rules
of the State Department of Agriculture.
  (2) Every grower or handler of industrial hemp shall keep
records as prescribed by the department.
  (3) The department may inspect the industrial hemp crop of any
person granted a grower's license pursuant to this section during
the crop's growth phase. For inspection purposes, the department
shall take a representative composite sample of the total crop
for field analysis. The dispute settlement system of the
department shall be used when necessary. The average
tetrahydrocannabinol concentration in the crop may not exceed one
percent on a dry weight basis.
  (4) Subject to department guidelines, growers may retain seeds
from each crop to ensure a sufficient supply of seeds for that
grower for the following year. A grower retaining seeds for
future planting does not need an agricultural seed production
permit described under subsection (5) of this section. Seed
retained by a grower may not be resold and does not need to meet
agricultural seed standards.
  (5) The department may issue agricultural seed production
permits to allow growers and handlers of industrial hemp to
produce agricultural seed. The department may inspect records,
growing crops, warehouses and processing and other facilities
used in the production of agricultural seed. A person offering
industrial hemp seed for sale to growers shall ensure that the
industrial hemp seed complies with any standards set by the
Director of Agriculture under ORS 633.511 to 633.750. The
department shall make available to growers information that
identifies sellers of agricultural seed.
  (6) The department may charge reasonable fees in amounts
determined by the department as necessary for purposes of
carrying out the duties of the department under this section. + }
  SECTION 4.  { + In addition to any other liability or penalty
provided by law, the State Department of Agriculture may revoke
or refuse to issue an industrial hemp license or an agricultural
seed production permit and may impose a civil penalty on a grower
or handler for any of the following:
  (1) Violation of a license or permit requirement created by
rule of the department under section 3 of this 2001 Act.
  (2) Violation of any of the terms or conditions of an
industrial hemp license or an agricultural seed production permit
issued under section 3 of this 2001 Act.
  (3) Violation of any rule or general order of the department
that pertains to agriculture or industrial hemp.
  (4) Violation of any final order of the department that
pertains specifically to the operations or activities of the
grower or handler. + }
  SECTION 5.  { + (1) A civil penalty imposed under section 4 of
this 2001 Act may not exceed $2,500.
  (2) The revocation of or refusal to issue an industrial hemp
license or an agricultural seed production permit, or the
imposition of a civil penalty under section 4 of this 2001 Act,
shall be subject to ORS 183.310 to 183.550. + }
  SECTION 6. ORS 475.005 is amended to read:
  475.005. As used in ORS 475.005 to 475.285 and 475.940 to
475.995, unless the context requires otherwise:
  (1) 'Abuse' means the repetitive excessive use of a drug short
of dependence, without legal or medical supervision, which may
have a detrimental effect on the individual or society.
  (2) 'Administer' means the direct application of a controlled
substance, whether by injection, inhalation, ingestion or any
other means, to the body of a patient or research subject by:
  (a) A practitioner or an authorized agent thereof; or
  (b) The patient or research subject at the direction of the
practitioner.
  (3) 'Administration' means the Drug Enforcement Administration
of the United States Department of Justice, or its successor
agency.
  (4) 'Agent' means an authorized person who acts on behalf of or
at the direction of a manufacturer, distributor or dispenser. It
does not include a common or contract carrier, public
warehouseman or employee of the carrier or warehouseman.
  (5) 'Board' means the State Board of Pharmacy.
  (6) 'Controlled substance' means a drug or its immediate
precursor classified in Schedules I through V under the federal
Controlled Substances Act, 21 U.S.C. 811 to 812, as modified
under ORS 475.035. The use of the term 'precursor' in this
subsection does not control and is not controlled by the use of
the term ' precursor' in ORS 475.940, 475.950 and 475.955.  { +
' Controlled substance' does not include industrial hemp, as
defined in section 1 of this 2001 Act, or products made from
industrial hemp. + }
  (7) 'Counterfeit substance' means a controlled substance or its
container or labeling, which, without authorization, bears the
trademark, trade name, or other identifying mark, imprint, number
or device, or any likeness thereof, of a manufacturer,
distributor or dispenser other than the person who in fact
manufactured, delivered or dispensed the substance.
  (8) 'Deliver' or 'delivery' means the actual, constructive or
attempted transfer, other than by administering or dispensing,
from one person to another of a controlled substance, whether or
not there is an agency relationship.
  (9) 'Device' means instruments, apparatus or contrivances,
including their components, parts or accessories, intended:
  (a) For use in the diagnosis, cure, mitigation, treatment or
prevention of disease in humans or animals; or
  (b) To affect the structure of any function of the body of
humans or animals.
  (10) 'Dispense' means to deliver a controlled substance to an
ultimate user or research subject by or pursuant to the lawful
order of a practitioner, and includes the prescribing,
administering, packaging, labeling or compounding necessary to
prepare the substance for that delivery.
  (11) 'Dispenser' means a practitioner who dispenses.
  (12) 'Distributor' means a person who delivers.
  (13) 'Drug' means:
  (a) Substances recognized as drugs in the official United
States Pharmacopoeia, official Homeopathic Pharmacopoeia of the
United States or official National Formulary, or any supplement
to any of them;
  (b) Substances intended for use in the diagnosis, cure,
mitigation, treatment or prevention of disease in humans or
animals;
  (c) Substances (other than food) intended to affect the
structure or any function of the body of humans or animals; and
  (d) Substances intended for use as a component of any article
specified in paragraph (a), (b) or (c) of this subsection;
however, the term does not include devices or their components,
parts or accessories.
  (14) 'Manufacture' means the production, preparation,
propagation, compounding, conversion or processing of a
controlled substance, either directly or indirectly by extraction
from substances of natural origin, or independently by means of
chemical synthesis, or by a combination of extraction and
chemical synthesis, and includes any packaging or repackaging of
the substance or labeling or relabeling of its container, except
that this term does not include the preparation or compounding of
a controlled substance:
  (a) By a practitioner as an incident to administering or
dispensing of a controlled substance in the course of
professional practice; or
  (b) By a practitioner, or by an authorized agent under the
practitioner's supervision, for the purpose of, or as an incident
to, research, teaching or chemical analysis and not for sale.
  (15) 'Marijuana' means all parts of the plant Cannabis family
Moraceae, whether growing or not; the resin extracted from any
part of the plant; and every compound, manufacture, salt,
derivative, mixture  { - , - }  or preparation of the plant or
its resin  { - .  It - }   { + except industrial hemp, as defined
in section 1 of this 2001 Act, or products made from industrial
hemp. 'Marijuana' + } does not include the mature stalks of the
plant, fiber produced from the stalks, oil or cake made from the
seeds of the plant, any other compound, manufacture, salt,
derivative, mixture, or preparation of the mature stalks (except
the resin extracted therefrom), fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination.
 { +  ' Marijuana' also does not include industrial hemp seeds
that are part of a growing licensed crop, that are retained by a
licensed grower for future planting or that are held by a
licensed grower or handler as agricultural seed under the
provisions of section 3 of this 2001 Act. + }
  (16) 'Person' includes a government subdivision or agency,
business trust, estate, trust or any other legal entity.
  (17) 'Practitioner' means physician, dentist, veterinarian,
scientific investigator, certified nurse practitioner, physician
assistant or other person licensed, registered or otherwise
permitted by law to dispense, conduct research with respect to or
to administer a controlled substance in the course of
professional practice or research in this state but does not
include a pharmacist or a pharmacy.
  (18) 'Prescription' means a written or oral direction, given by
a practitioner for the preparation and use of a drug.  When the
context requires, 'prescription' also means the drug prepared
under such written or oral direction. Any label affixed to a drug
prepared under written or oral direction shall prominently
display a warning that the removal thereof is prohibited by law.
  (19) 'Production' includes the manufacture, planting,
cultivation, growing or harvesting of a controlled substance.
  (20) 'Research' means an activity conducted by the person
registered with the federal Drug Enforcement Administration
pursuant to a protocol approved by the United States Food and
Drug Administration.
  (21) 'Ultimate user' means a person who lawfully possesses a
controlled substance for the use of the person or for the use of
a member of the household of the person or for administering to
an animal owned by the person or by a member of the household of
the person.
  SECTION 7. ORS 561.144 is amended to read:
  561.144. (1) The State Treasurer shall establish a Department
of Agriculture Service Fund which shall be a trust fund separate
from the General Fund and included under ORS 293.115 (6), and
which shall not be subject to ORS 293.105 and 293.110. The State
Department of Agriculture shall deposit all license and service
fees paid to it under the provisions of the statutes identified
in subsection (3) of this section in the Department of
Agriculture Service Fund. The State Treasurer is the custodian of
this trust fund which shall be deposited by the treasurer in such
depositories as are authorized to receive deposits of the General
Fund, and which may be invested by the treasurer in the same
manner as authorized by ORS 293.701 to 293.820.
  (2) Notwithstanding ORS 293.140, interest received on deposits
credited to the Department of Agriculture Service Fund shall
accrue to and become a part of the Department of Agriculture
Service Fund.
  (3) The license and service fees subject to this section are
those described in ORS 561.400, 570.710, 571.057, 571.063,
571.145, 583.004, 583.046, 583.445, 583.510, 583.610, 585.050,
586.270, 586.580, 586.650, 596.030, 596.311, 599.235, 599.269,
599.406, 599.610, 600.030, 601.040, 602.090, 603.025, 603.075,
616.706, 618.115, 618.136, 619.031, 621.072, 621.166, 621.266,
621.297, 621.335, 621.730, 622.080, 625.180, 628.240, 632.211,
632.425, 632.600, 632.720, 632.730, 632.741, 632.940, 632.945,
633.015, 633.029, 633.361, 633.460, 633.680, 633.700, 633.720,
634.016, 634.116, 634.122, 634.126, 634.132, 634.136, 634.212 and
635.030  { + and section 3 of this 2001 Act + }.
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