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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
AMENDED
prohibition; regulation; industrial hemp sites
(NOW: hemp; prohibition; regulation; advisory committee)
Purpose
Prohibits a city, town or county from imposing any regulation or restriction on an industrial hemp site, with certain exceptions. Requires the Arizona Department of Agriculture (AZDA) to establish a registry of industrial hemp licenses and a voluntary registry of cultivation sites for nonprofit medical marijuana dispensaries (dispensaries). Requires the Director of AZDA (Director) to establish an advisory committee relating to cross-pollination between industrial hemp sites and dispensary cultivation sites.
Background
Statute regulates the growth, harvest, transportation and use of industrial hemp in Arizona. A grower, harvester, transporter or processor of industrial hemp is required to obtain an industrial hemp license from AZDA (A.R.S. § 3-314). The Director must adopt rules to oversee the licensing, production and management of industrial hemp and hemp seed (A.R.S. § 3-313).
The Director or a designee may physically inspect an industrial hemp site to ensure compliance with statutory requirements and AZDA Rules (A.R.S. § 3-316). An industrial hemp site is the location in which a grower, harvester, transporter or processor possesses a crop, harvested crop or hemp seed (A.R.S. § 3-311).
AZDA Rules hold an industrial hemp licensee responsible for maintaining compliance with all applicable city and county land use restrictions, zoning laws, building and fire codes and ordinances (A.A.C. R3-4-1003). Additionally, a licensed grower or processor cannot grow, process or store industrial hemp in any residential dwelling and must conspicuously post signage at the perimeter of the industrial hemp site that includes specified information (A.A.C. R3-4-1007).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a city, town or county from imposing a restriction on an industrial hemp site, unless the industrial hemp site violates applicable zoning laws or building and fire codes.
3. Asserts that the regulation of industrial hemp sites is a matter of statewide concern and not subject to further regulation by a city, town or county.
4. Requires AZDA to establish and maintain:
a) a public registry of all industrial hemp licenses on the AZDA website; and
b) a voluntary registry for the cultivation sites of dispensaries.
5. Requires the industrial hemp license registry to include the license number, business name, business address and license status of all industrial hemp licenses and include the license's status as a grower, harvester, transporter or processor.
6. Requires the Director to appoint an advisory committee to consider, assist and make recommendations regarding cross-pollination between industrial hemp sites and cultivation sites of dispensaries.
7. Requires the Director or the Director's designee to serve as chairperson of the advisory committee.
8. Requires the Director to appoint an equal number of members to the advisory committee with experience and expertise in the cultivation of industrial hemp and cultivation of medical marijuana.
9. Requires the advisory committee, by January 1, 2022, to submit a report of recommendations regarding cross-pollination between industrial hemp sites and cultivation sites of dispensaries to the President of the Senate and Speaker of the House of Representatives and provide a copy to the Secretary of State.
10. Allows the Director to adopt rules based on the recommendations of the advisory committee.
11. Terminates the advisory committee on October 1, 2022.
12. Makes technical and conforming changes.
13. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Allows a city, town or county to enforce lawful zoning ordinances on industrial hemp sites, if applied in the same manner as other property of the same zoning classification.
2. Establishes a state preemption on the regulation of industrial hemp sites.
3. Requires AZDA to establish and maintain an industrial hemp license registry and dispensary cultivation site voluntary registry and outlines information that must be included in the industrial hemp license registry.
4. Requires the Director to appoint an advisory committee to consider, assist and make recommendations regarding cross-pollination between industrial hemp sites and cultivation sites of dispensaries.
5. Outlines requirements for the membership of the advisory committee.
6. Requires the advisory committee, by January 1, 2022, to submit a report of recommendations to the Legislature and provide a copy to the Secretary of State.
7. Allows the Director to adopt rules based on the recommendations of the advisory committee.
8. Terminates the advisory committee on October 1, 2022.
9. Makes technical and conforming changes.
Senate Action
GOV 2/3/20 DP 6-1-0
Prepared by Senate Research
March 9, 2020
MH/kja