Senate Engrossed

State of Arizona Senate Fifty-fourth Legislature Second Regular Session 2020

SENATE BILL 1019

 

AN ACT

 

amending section 3-314, Arizona Revised Statutes; amending title 9, chapter 4, article 8, arizona revised statutes, by adding section 9‑500.48; amending title 11, chapter 2, article 4, arizona revised statutes, by adding section 11-269.27; relating to industrial hemp.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 3-314, Arizona Revised Statutes, is amended to read:

START_STATUTE3-314.  Industrial hemp licenses; applications; fees; fingerprinting requirements; renewal; revocation; registries

A.  A grower, harvester, transporter or processor shall obtain an industrial hemp license from the department.

B.  A grower, harvester, transporter or processor shall apply for a license pursuant to rules and orders adopted by the director.

C.  An application for an original or renewal industrial hemp license shall comply with all of the following:

1.  Be on a form that is provided by the department.

2.  Include complete and accurate information.

3.  Be accompanied by the license fee prescribed by the director. The director shall deposit, pursuant to sections 35‑146 and 35‑147, fees collected under this paragraph in the industrial hemp trust fund established by section 3‑315.

D.  An applicant shall provide proof to the department of having a valid fingerprint clearance card issued pursuant to section 41‑1758.07 for the purpose of validating applicant eligibility.

E.  A license issued pursuant to this section is valid for one year, unless revoked, and may be renewed as provided by the department.  Rather than renewing a licensee's license every year, a licensee may renew the licensee's license every two years by paying a license fee that is twice the amount designated by the fee schedule in rule that is adopted by the director and other applicable fees.  Licensees that renew every two years shall comply with any annual reporting requirements.

F.  The department may revoke or refuse to issue or renew a license for a violation of any law of this state, any federal law or any rule or order adopted by the director.

G.  A member of an Indian tribe may apply for a license pursuant to this section.  If a member of an Indian tribe is issued a license pursuant to this section, the member is subject to the requirements prescribed in this article.

h.  the department shall establish and maintain, at the department and on the department's website, a public registry of all industrial hemp licenses issued pursuant to this section.  the registry shall include the license number, business name, business address and license status of each licensee.  the registry shall also include the license's status as a grower, harvester, TRANSPORTER or processor.

i.  the department shall establish and maintain a voluntary registry for the cultivation sites of nonprofit medical marijuana dispensaries as defined in section 36-2801. END_STATUTE

Sec. 2.  Title 9, chapter 4, article 8, Arizona Revised Statutes, is amended by adding section 9-500.48, to read:

START_STATUTE9-500.48.  Prohibition on regulation of industrial hemp sites; state preemption

A.  Notwithstanding any other law, a city or town may not impose any restriction on an industrial hemp site as defined in section 3-311 unless the industrial hemp site violates any applicable zoning law or building and fire code.  a city or town may enforce a lawful zoning ordinance if the ordinance is applied in the same manner as other property of the same zoning classification.

b.  the legislature finds that the regulation of industrial hemp sites is a matter of statewide concern.  the regulation of INDUSTRIAL hemp sites is not subject to further regulation by a city or town EXCEPT AS AUTHORIZED IN SUBSECTION A OF THIS SECTION. END_STATUTE

Sec. 3.  Title 11, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 11-269.27, to read:

START_STATUTE11-269.27.  Prohibition on regulation of industrial hemp sites; state preemption

A.  Notwithstanding any other law, a county may not impose any restriction on an industrial hemp site as defined in section 3-311 unless the industrial hemp site violates any applicable zoning law or building and fire code.  a county may enforce a lawful zoning ordinance if the ordinance is applied in the same manner as other property of the same zoning classification.

b.  the legislature finds that the regulation of industrial hemp sites is a matter of statewide concern.  the regulation of INDUSTRIAL hemp sites is not subject to further regulation by a cOUNTY EXCEPT AS AUTHORIZED IN SUBSECTION A OF THIS SECTION. END_STATUTE

Sec. 4.  Advisory committee on industrial hemp and medical marijuana cross-pollination; membership; report; delayed repeal

A.  Pursuant to section 3-106, Arizona Revised Statutes, the director of the Arizona department of agriculture shall appoint an advisory committee to consider, assist and make recommendations to the director regarding cross-pollination between industrial hemp sites and cultivation sites of nonprofit medical marijuana dispensaries.

B.  The director or the director's designee shall serve as the chairperson of the committee.  The director shall appoint an equal number of members with experience and expertise in the cultivation of industrial hemp and the cultivation of medical marijuana.

C.  On or before December 31, 2021, the advisory committee shall submit a report of recommendations regarding cross-pollination between industrial hemp sites and cultivation sites of nonprofit medical marijuana dispensaries to the president of the senate and the speaker of the house of representatives and shall provide a copy to the secretary of state.

D.  The director may adopt rules based on the recommendations of the advisory committee.

E.  This section is repealed from and after September 30, 2022.