Colorado Hemp Production Act of 1995

The bill was written by Thomas J. Ballanco, a law school graduate at CU-Boulder. All comments about the language of the bill should go to Tom Ballanco at: ballanco@welcomehome.org

An Act to reclassify the non-psychoactive varieties of the Cannabis plant as "Hemp," and to legalize possession, production and commerce in the same.

XX-XX-101. Short Title.

This article shall be known and may be cited as the "Hemp Reclassification Act."

XX-XX-102. Declaration of Policy.

The general assembly hereby finds, determines, and declares that the development and use of hemp is in the best interest of the state economy and that the production of hemp and hemp products can be regulated so as not to interfere with the strict control of controlled substances in the state. It is the purpose of this law to promote the public health, safety, and welfare by permitting the development of a hemp industry, while maintaining the strict control of marihuana.

XX-XX-103. Definitions.

As used in this part 1, unless the context otherwise requires:

1. "Commissioner" means the commissioner of agriculture.
2. "Grower" means any person, partnership, association, or corporation that produces hemp.
3. "Handler" means any person, partnership, association, or corporation that receives hemp for processing into hemp products.
4. "Hemp" means all parts and varieties of the plant cannabis sativaL. and the plant cannabis indica, whether growing or not, which contain less than one and four tenths percent (1.4%) concentration of tetrahydrocannabinol ("THC") and contain cannabidol ("CBD") in sufficient concentration to exceed the THC content. "Hemp" is separate and distinct from "marihuana" or "marijuana."

5. "Hemp Products" means all products made from hemp, including, but not limited to cloth, cordage, fiber, food, fuel, paint, paper, particle board, plastics or seed for cultivation.

6. "Marihuana" or "marijuana" means all parts of the plant cannabis sativa L. or the plant cannabis indica, 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 resins which contains more than one and four tenths percent (1.4%) concentration of tetrahydrocannabinol. This meaning supercedes and amends the definition set forth in section 12-22-303(17), C.R.S.

7. "Marihuana concentrate" means hashish, tetrahydrocannabinols, or any alkaloid, salt, derivative, preparation, compound, or mixture, whether natural or synthesized, containing more than one and four tenths percent (1.4%) concentration of tetrahydrocannabinols. This meaning supercedes and amends the definition set forth in section 12-22-303(18), C.R.S.

8. "Tetrahydrocannabinols" shall have the same meaning as set forth in section 12-22-303(32), C.R.S.

Production, possession, and commerce in hemp shall be permitted in the state of Colorado. Hemp shall be classified as an agricultural product and shall be subject to regulation by the commissioner under Title 35, C.R.S.

XX-XX-105. Licenses - application - fees - inspection.

1. Every person growing, buying, selling, or receiving hemp within this state shall obtain, on or before April 1 of each year, from the department of agriculture, a grower's or handler's license, applicable for each place where such business is conducted. A license shall not be transferable and shall expire on March 31 of each year, and no reduction of license fee shall be made for a fractional part of the year. The commissioner shall designate and identify sources where new licensees may obtain industrial hemp seeds. With the approval of the commissioner, licensed growers may retain seeds from each crop to ensure a sufficient supply for the following year.

2. Applications, Inspections and Fees
   1. After a grower's license is granted, the commissioner shall conduct at least two inspections of the crop, during its growth phase. The commissioner shall take samples of up to 1% of the total crop for tetrahydrocannabinol analysis. The average THC content in the crop should be less than five tenths of one percent (0.5%) and individual samples should not exceed one percent (1%) concentration of THC. In all instances, the CBD content must exceed the THC content. Growers found to be growing any plants where the THC content exceeds one and four tenths percent (1.4%) shall be prosecuted for manufacture of marijuana in accordance with section 18-18-106, C.R.S.

   2. After a handler's license is granted, the commissioner shall conduct periodic inspections of the handling establishment. The commissioner shall take samples of up to 1% of the annual volume of the establishment for tetrahydrocannabinol analysis.

   3. Any plants found to contain more than one percent (1%) concentration of tetrahydrocannabinols shall be confiscated and destroyed. Two concentration violations in one year is grounds for license revocation.

3. An application for any license shall state the name of the applicant; and, if a firm, the names of its members; and, if a corporation, the names of its officers; the location of the business; and the telephone number, if any.

4. Fees
   1. The annual license fee for growers shall be based on the total acreage to be cultivated. Classes and fees shall be as follows:

      Class I. Grower - Cultivation up to and including 40 acres, fee $10.00.

      Class II. Grower - Cultivation over 40 acres to and including 160 acres, fee $20.00.

      Class III. Grower - Cultivation over 160 acres, fee $35.00.

   2. The annual license fee for handlers shall be based on the average tonnage of raw hemp processed during the previous year; except that for a handler who has not been engaged in business during the previous calendar year, the fee shall be ten dollars. The applicant for a handler's license shall keep such records as may be necessary to indicate accurately the quantity of hemp processed and shall allow the commissioner to examine these records in determining the quantity of hemp processed during the previous year. Such records of quantity processed shall be retained by the handler for a period of two years. The handler classes and fees shall be as follows:

      Class I. Handler - Up to and including 100 tons per year, fee $10.00.

      Class II. Handler - Over 100 tons to and including 1,000 tons per year, fee $35.00.

      Class III. Handler - Over 1,000 tons per year, fee $75.00.

5. All fees from licenses shall be deposited with the state treasurer and credited to the general fund.

1. Any person who violates any of the provisions of this article is guilty of a misdemeanor. It is the duty of the commissioner to notify the district attorney of the judicial district in which a violation occurs, and the district attorney of said district shall conduct such proceedings as may be necessary with the cooperation of the commissioner. Upon conviction in any court of competent jurisdiction, any person in violation of any of the provisions of this article shall be punished by a fine of not more than five hundred dollars. Fines and penalties imposed under this article shall be collected and remitted as provided by law.

2. The commissioner may, after proper hearing as provided in article 4 of title 24, C.R.S., suspend or revoke any license issued to any grower or handler who violates any of the provisions of this article or any rules and regulations issued by the commissioner pursuant thereto. Such revocation or suspension of a license may be in addition to, or in lieu of, any penalties or fines imposed in subsection (1) of this section.

Except as the definitions of "marihuana" and "marihuana concentrate" are modified by section XX-XX-103, all laws concerning the strict control of marihuana, marijuana, and marihuana concentrate shall remain in effect. This Act shall not be read to interfere with the enforcement of section 18-18-106, C.R.S.