AN ACT Relating to authorizing the growing of industrial hemp; adding a new chapter to Title 15 RCW; creating a new section; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

(1) "Department" means the Washington state department of agriculture.

(2) "Grower" means any person licensed to grow industrial hemp under this chapter.

(3) "Industrial hemp" means all parts and varieties of the genera Cannabis, cultivated or possessed by a grower, whether growing or not, that contain a tetrahydrocannabinol concentration of 0.3 percent or less by dry weight. Industrial hemp does not include plants of the genera Cannabis that meet the definition of "marijuana" as defined in RCW 69.50.101. Industrial hemp does not include any food, extract, oil, cake, concentrate, resin, or other preparation made from Cannabis stalks, leaves, flowers, or fiber, for topical use, oral consumption, or inhalation.

(4) "Industrial hemp research program" means an agricultural pilot program to study the growth, cultivation, or marketing of industrial hemp supervised by the department.

(5) "Person" means any natural person, firm, partnership, association, private or public corporation, government entity, or other business entity.

(6) "THC concentration" means the percent of total THC, which is the combined percent of delta-9 tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the genera Cannabis.

(a) Fee amounts for license application and renewal;

(b) Testing criteria and protocols for testing compliance with THC levels; and

(c) Grower qualifications. Grower qualifications include, at a minimum, that a person with a prior felony drug conviction within ten years of applying for a license not be eligible for the license. The department shall adopt by rule the persons in associations, corporations, and other business entities to be qualified under this felony drug conviction limitation.

(2) The department may adopt rules for administration of an industrial hemp research program, including the goals of the program.

(3) The department may adopt rules for administration of an industrial hemp seed certification program pursuant to chapter 15.49 RCW.

(2) The department shall establish a licensure program to allow persons to grow industrial hemp in the state as part of the industrial hemp research program.

(3) The department shall establish an industrial hemp seed certification program in support of the industrial hemp research program. The department's authority to implement this program incorporates the department's authority related to seed certification, inspection, fee setting, and enforcement under chapter 15.49 RCW.

(4) The programs under this chapter are subject to a grant of necessary permissions, waivers, or other form of valid legal status by the United States drug enforcement agency or other appropriate federal agency pursuant to applicable federal laws relating to industrial hemp.

(a) The name and mailing address of the applicant, including the business address of any corporate applicant and the applicant's registered agent and the agent's address;

(b) The legal description and global positioning coordinates sufficient to locate the proposed industrial hemp production fields;

(c) A signed declaration indicating whether the applicant has ever been convicted of a felony or misdemeanor;

(d) Written consent allowing the department, if a license is ultimately issued to the applicant, to enter onto the industrial hemp production fields to conduct physical inspections of industrial hemp planted and grown by the applicant, and to ensure compliance with the requirements of this chapter;

(e) Any other information required by the department; and

(f) The payment of a nonrefundable application fee, in an amount set by the department.

(2) A person seeking to grow industrial hemp is subject to a background check through the Washington state patrol criminal identification system and the federal bureau of investigation.

(3) The department may approve licenses only for those selected growers whose demonstration plots will advance the goals of the department's industrial hemp research program. The location, and the total number and acreage, of all demonstration plots to be grown by license holders must be determined at the discretion of the department.

(4) The department may use failure to comply with the law and with the conditions of the license issued by the department as grounds for revocation, suspension, or denial of future applications.

(5) Each license is valid for a period of one year from the date of issuance and may be renewed in successive years. Each annual renewal requires the payment of a license renewal fee.

(6) All moneys collected under this chapter must be deposited in an account within the agricultural local fund and used solely for carrying out this chapter. No appropriation is required for disbursement of moneys from the account by the director.

(7) A record of each license issued by the department under this section must be immediately forwarded to the sheriff of each county where the industrial hemp is licensed to be planted, grown, and/or harvested.

(8) All records, data, and information filed in support of a license application are exempt from disclosure under chapter 42.56 RCW, the public records act.

(a) The market economic conditions affecting the development of an industrial hemp industry in the state;

(b) The estimated value-added benefit that Washington's economy would reap from having a developed industrial hemp industry in the state;

(c) Whether Washington soils and growing conditions are appropriate for use of industrial hemp in the rotation of other crops and whether soils and growing conditions are appropriate for farming industrial hemp at economically viable levels;

(d) Whether growing industrial hemp will introduce or serve as a vector for plant disease affecting related species, such as hops;

(e) The agronomy research being conducted worldwide relating to industrial hemp varieties, production, and use; and

(f) Other legislative acts, experiences, and outcomes around the world regarding industrial hemp production.

(2)(a) Washington State University shall report its findings to the legislature by January 14, 2017.

(b) The report must include recommendations for any legislative actions necessary to encourage and support the development of an industrial hemp industry in the state of Washington.

(3) This section expires August 1, 2017.

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