72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1178
House Bill 2769
Sponsored by Representative PROZANSKI; Representative ACKERMAN
(at the request of Living Tree Paper Co., University Lip Balm
Co.)
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 production and possession of industrial hemp and trade
in industrial hemp commodities and products. Authorizes State
Department of Agriculture to administer licensing, permitting and
inspection program for growers and handlers of industrial hemp.
Allows department to impose civil penalty not exceeding $2,500
for violation of license or permit requirements.
A BILL FOR AN ACT
Relating to industrial hemp; creating new provisions; amending
ORS 475.005, 475.992, 475.999 and 561.144; and appropriating
money.
Whereas the Cannabis sativa plant used for the production of
industrial hemp is separate and distinct from forms of Cannabis
used to produce marijuana; and
Whereas industrial hemp is used for products such as building
materials, cloth, cordage, fiber, food, floor coverings, fuel,
industrial chemicals, paint, paper, particle board, plastics,
seed meal, seed oil and yarn; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 3 of this 2003 Act:
(1) 'Agricultural hemp 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) 'Grower' means a person, as defined in ORS 174.100, joint
venture or cooperative that produces industrial hemp.
(4) '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 hemp seed.
(5) 'Industrial hemp' means all parts and varieties of the
Cannabis sativa plant, whether growing or not, that contain a
cropwide average tetrahydrocannabinol concentration that does not
exceed one percent on a dry weight basis. 'Industrial hemp '
includes seed that is part of a growing crop, seed retained by a
grower for future planting and agricultural hemp seed. '
Industrial hemp' does not include industrial hemp commodities or
products. + }
SECTION 2. { + (1) Industrial hemp production and possession,
and commerce in industrial hemp commodities and products, are
authorized in this state. Industrial hemp is an agricultural
product that is subject to regulation by the State Department of
Agriculture.
(2) All growers and handlers must have an industrial hemp
license issued by the department.
(3) Every grower or handler must keep records as required by
department rule. Upon not less than three days' notice, the
department may subject the required records to inspection or
audit during normal business hours. The department may make an
inspection or audit for the purpose of ensuring compliance with:
(a) A provision of this section;
(b) Department rules;
(c) Industrial hemp license or agricultural hemp seed
production permit requirements, terms or conditions; or
(d) A final department order directed to the grower's or
handler's industrial hemp operations or activities.
(4) In addition to any inspection conducted pursuant to ORS
561.275, the department may inspect any industrial hemp crop
during the crop's growth phase and take a representative
composite sample for field analysis. If a crop contains an
average tetrahydrocannabinol concentration exceeding one percent
on a dry weight basis, the department may detain, seize or
embargo the crop as provided under ORS 561.605 to 561.620.
(5) Subject to department guidelines, a grower 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 hemp seed
production permit described under subsection (6) of this section.
Seed retained by a grower may not be sold or transferred and does
not need to meet the department's agricultural hemp seed
standards.
(6) The department may issue agricultural hemp seed production
permits to allow growers and handlers to produce agricultural
hemp seed. A seller of agricultural hemp seed shall ensure that
the 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 hemp seed.
(7) The department may charge growers and handlers reasonable
fees as determined by the department. Fees charged under this
subsection are continuously appropriated to the department for
purposes of carrying out the duties of the department under this
section and section 3 of this 2003 Act. + }
SECTION 3. { + (1) In addition to any other liability or
penalty provided by law, the State Department of Agriculture may
revoke or refuse to issue or renew an industrial hemp license or
an agricultural hemp seed production permit and may impose a
civil penalty for violation of:
(a) A license or permit requirement;
(b) License or permit terms or conditions;
(c) Department rules relating to growing or handling industrial
hemp; or
(d) A final order of the department that is specifically
directed to the grower's or handler's industrial hemp operations
or activities.
(2) The department may revoke or refuse to issue or renew an
industrial hemp license or an agricultural hemp seed production
permit for violation of any rule of the department that pertains
to agricultural operations or activities other than industrial
hemp growing or handling.
(3) The department may not impose a civil penalty under this
section that exceeds $2,500. The department shall impose civil
penalties under this section in the manner provided by ORS
183.090.
(4) A revocation of, or refusal to issue or renew, an
industrial hemp license or an agricultural hemp seed production
permit is subject to ORS 183.310 to 183.550. + }
SECTION 4. ORS 475.005 is amended to read:
475.005. As used in ORS 475.005 to 475.285 and 475.940 to
475.999, 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 to 475.999. { + '
Controlled substance ' does not include industrial hemp, as
defined in section 1 of this 2003 Act, or industrial hemp
commodities or products. + }
(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) 'Electronically transmitted' or 'electronic transmission'
means a communication sent or received through technological
apparatuses, including computer terminals or other equipment or
mechanisms linked by telephone or microwave relays, or any
similar apparatus having electrical, digital, magnetic, wireless,
optical, electromagnetic or similar capabilities.
(15) '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.
(16) '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 2003 Act, or industrial hemp
commodities or products. '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.
(17) 'Person' includes a government subdivision or agency,
business trust, estate, trust or any other legal entity.
(18) '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.
(19) 'Prescription' means a written, oral or electronically
transmitted 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,
oral or electronically transmitted direction. Any label affixed
to a drug prepared under written, oral or electronically
transmitted direction shall prominently display a warning that
the removal thereof is prohibited by law.
(20) 'Production' includes the manufacture, planting,
cultivation, growing or harvesting of a controlled substance.
(21) '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.
(22) '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 5. ORS 475.992 is amended to read:
475.992. (1) Except as authorized by ORS 475.005 to 475.285 and
475.940 to 475.999, it is unlawful for any person to manufacture
or deliver a controlled substance. Any person who violates this
subsection with respect to:
(a) A controlled substance in Schedule I, is guilty of a Class
A felony.
(b) A controlled substance in Schedule II, is guilty of a Class
B felony.
(c) A controlled substance in Schedule III, is guilty of a
Class C felony.
(d) A controlled substance in Schedule IV, is guilty of a Class
B misdemeanor.
(e) A controlled substance in Schedule V, is guilty of a Class
C misdemeanor.
(2) Notwithstanding the placement of marijuana in a schedule of
controlled substances under ORS 475.005 to 475.285 and 475.940 to
475.999:
(a) Any person who delivers marijuana for consideration is
guilty of a Class B felony.
(b) Any person who delivers, for no consideration, less than
one avoirdupois ounce of the dried leaves, stems and flowers of
the plant Cannabis family Moraceae is guilty of a Class A
misdemeanor, except that any person who delivers, for no
consideration, less than five grams of the dried leaves, stems
and flowers of the plant Cannabis family Moraceae is guilty of a
violation, punishable by a fine of not less than $500 and not
more than $1,000. Fines collected under this paragraph shall be
forwarded to the Department of Revenue for deposit in the
Criminal Fine and Assessment Account established in ORS 137.300.
(3) Except as authorized in ORS 475.005 to 475.285 and 475.940
to 475.999, it is unlawful for any person to create or deliver a
counterfeit substance. Any person who violates this subsection
with respect to:
(a) A counterfeit substance in Schedule I, is guilty of a Class
A felony.
(b) A counterfeit substance in Schedule II, is guilty of a
Class B felony.
(c) A counterfeit substance in Schedule III, is guilty of a
Class C felony.
(d) A counterfeit substance in Schedule IV, is guilty of a
Class B misdemeanor.
(e) A counterfeit substance in Schedule V, is guilty of a Class
C misdemeanor.
(4) It is unlawful for any person knowingly or intentionally to
possess a controlled substance unless the substance was obtained
directly from, or pursuant to, a valid prescription or order of a
practitioner while acting in the course of professional practice,
or except as otherwise authorized by ORS 475.005 to 475.285 and
475.940 to 475.999. Any person who violates this subsection with
respect to:
(a) A controlled substance in Schedule I, is guilty of a Class
B felony.
(b) A controlled substance in Schedule II, is guilty of a Class
C felony.
(c) A controlled substance in Schedule III, is guilty of a
Class A misdemeanor.
(d) A controlled substance in Schedule IV, is guilty of a Class
C misdemeanor.
(e) A controlled substance in Schedule V, is guilty of a
violation.
(f) Notwithstanding the placement of marijuana in a schedule of
controlled substances under ORS 475.005 to 475.285 and 475.940 to
475.999, any person who knowingly or intentionally is in unlawful
possession of less than one avoirdupois ounce of the dried
leaves, stems and flowers of the plant Cannabis family Moraceae
is guilty of a violation, punishable by a fine of not less than
$500 and not more than $1,000. Fines collected under this
paragraph shall be forwarded to the Department of Revenue for
deposit in the Criminal Fine and Assessment Account established
under ORS 137.300.
(5) In any prosecution under this section for manufacture,
possession or delivery of that plant of the genus Lophophora
commonly known as peyote, it is an affirmative defense that the
peyote is being used or is intended for use:
(a) In connection with the good faith practice of a religious
belief;
(b) As directly associated with a religious practice; and
(c) In a manner that is not dangerous to the health of the user
or others who are in the proximity of the user.
(6) The affirmative defense created in subsection (5) of this
section is not available to any person who has possessed or
delivered the peyote while incarcerated in a correctional
facility in this state.
{ + (7) Subsections (2)(b) and (4)(f) of this section do not
prohibit the sale or possession of:
(a) Industrial hemp as defined in section 1 of this 2003 Act;
or
(b) Industrial hemp commodities or products. + }
SECTION 6. ORS 475.999 is amended to read:
475.999. Except as authorized by ORS 475.005 to 475.285 and
475.940 to 475.999 { + and section 2 of this 2003 Act + }, it is
unlawful for any person to:
(1) Manufacture or deliver a schedule I, II or III controlled
substance within 1,000 feet of the real property comprising a
public or private elementary, secondary or career school attended
primarily by minors.
(a) Unlawful manufacture or delivery of a controlled substance
within 1,000 feet of a school is a Class A felony.
(b) Notwithstanding the provisions of paragraph (a) of this
subsection, delivery for no consideration of less than five grams
of the dried leaves, stems and flowers of the plant Cannabis
family Moraceae in a public place, as defined in ORS 161.015,
that is within 1,000 feet of the real property comprising a
public or private elementary, secondary or career school attended
primarily by minors to a person who is 18 years of age or older
is a Class C misdemeanor.
(2)(a) Possess less than one avoirdupois ounce of the dried
leaves, stems and flowers of the plant Cannabis family Moraceae
in a public place, as defined in ORS 161.015, that is within
1,000 feet of the real property comprising a public or private
elementary, secondary or career school attended primarily by
minors.
(b) Possession of less than one avoirdupois ounce of the dried
leaves, stems and flowers of the plant Cannabis family Moraceae
in a public place that is within 1,000 feet of a school is a
Class C misdemeanor.
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, 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, 633.318, 633.362, 633.461, 633.471, 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 2 of this 2003 Act + }.
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