Arizona Hemp Cultivation Legalized Under S.B. 1098

Earlier this year, Arizona legalized the growing of Hemp as an agricultural product. That’s a huge benefit to the Arizona economy for future revenue generation and with sustainable farming methods may become a cash crop.  While it’s exciting news it will be a challenging row to hoe. Having the proper genetics will be important for growing a successful crop here in this climate. Climate in Arizona is varied so multiple plants and derivative products will be realized depending on where you are growing.

 

Below is the SB1098 and it’s framework.

 

 

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

 

AMENDED

FACT SHEET FOR S.B. 1098

 

industrial hemp; licensing

 

Purpose

 

Authorizes industrial hemp production, processing, manufacturing, distribution and commerce conducted by licensed growers, harvesters, transporters and processors.

 

Background

 

Established in 1990, the Arizona Department of Agriculture (AZDA) promotes: 1) farming, ranching and agribusiness; 2) commerce, consumers and natural resources; and 3) the well-being of people, plants, animals and the environment. According to the AZDA, Arizona’s agriculture industry supports 77,000 jobs and generates $17 billion in economic activity (AZDA FY 2016 Annual Report). The Director of the AZDA (Director) ensures agency coordination and cooperation to achieve a unified policy of administering and executing all responsibilities (A.R.S. § 3-107).

 

The Agricultural Act of 2014, or the 2014 Farm Bill, allows universities and state departments of agriculture to begin cultivating industrial hemp for limited purposes. The law allows universities and state departments of agriculture to grow or cultivate industrial hemp if:

1)      the industrial hemp is grown or cultivated for purposes of research conducted under an agricultural pilot program or other agricultural or academic research; and

2)      the growing or cultivating of industrial hemp is allowed under the laws of the state in which

such institution of higher education or state department of agriculture is located and such research

occurs.

 

The U.S. Department of Agriculture, in consultation with the U.S. Drug Enforcement Agency and the U.S. Food and Drug Administration, released a Statement of Principles on Industrial Hemp in the Federal Register on August 12, 2016, to inform the public on the applicable activities related to hemp in the 2014 Farm Bill. According to the National Conference of State Legislatures, at least 34 states have passed legislation related to industrial hemp. Generally, states have taken three approaches: 1) establishing industrial hemp research and/or pilot programs; 2) authorizing studies of the industrial hemp industry; or 3) establishing commercial industrial hemp programs. Twenty-one states have passed laws allowing research and pilot programs, 16 states have legalized industrial hemp production for commercial purposes and 10 states have approved the creation of both pilot/research and commercial programs.

 

 

 

 

There is a fiscal impact to the state General Fund of $750,000 in FY 2020. The amount of $250,000 and 3 FTE positions is appropriated to the AZDA Plant Services Division, and $500,000 is appropriated to the AZDA. This bill may also generate additional revenues for the state General Fund from Transaction Privilege Taxes levied on industrial hemp transactions.

 

 

Provisions

 

Industrial Hemp Legalization

 

  1. Authorizes the propagation, processing, manufacturing, distribution and market research of industrial hemp in this state under a preapproved agricultural pilot program (program).

 

  1. Authorizes commercial industrial hemp production, processing, manufacturing, distribution and commerce outside of the program if authorized under federal law.

 

  1. Designates industrial hemp as an agricultural product that is subject to regulation by the AZDA.

 

  1. Requires hemp seed to be certified through the AZDA in order to be authorized for use in the program.

 

  1. States that unauthorized hemp seed may not be planted.

 

  1. States that hemp seed derived from previously authorized hemp seed is considered authorized.

 

  1. Requires the Director to adopt rules for the licensing, production and management of industrial hemp and hemp seed and set fees to recover the cost of licensing, testing, inspecting and supervising industrial hemp production.

 

  1. Requires the Director to authorize qualified applicants to propagate, harvest, transport or process industrial hemp according to rules adopted by the Director.

 

  1. Declares the Legislature’s finding that the development and use of industrial hemp can   improve the economy and agricultural vitality of the state and that the production of industrial hemp can be regulated so as not to interfere with strict regulation of marijuana.

 

Licensing

 

  1. Requires a grower, harvester, transporter, or processor to apply for and obtain an industrial hemp license (license) from the AZDA.

 

  1. Specifies that a license is valid for one year, and may be renewed as provided by the AZDA.

 

  1. Provides for the renewal of a license every two years if a licensee pays twice the amount of the fee schedule as established by rule and complies with any annual reporting requirements.

 

  1. Allows the AZDA to revoke or refuse to issue or renew a license for a violation of any state or federal law, or any rule adopted by the Director.

 

  1. Requires applicants to provide proof of a valid fingerprint clearance card to the AZDA for the purpose of validating applicant eligibility.

 

  1. Requires the Department of Public Safety to conduct fingerprint background checks on license applicants.

 

  1. Specifies that a member of an Indian tribe may apply for a license, and a member that is issued a license is subject to the same prescribed requirements.

 

  1. Stipulates that license application and renewal forms will be on a form prescribed by the AZDA and accompanied by a fee set by the Director.

 

  1. Requires the Director to deposit license fees into the Industrial Hemp Trust Fund (Fund).

 

Regulation

 

  1. Allows the Director to impose a civil penalty of up to $5,000 for a violation of a licensing requirement, term, condition or rule adopted by the Director.

 

  1. Classifies a violation of a licensing requirement, term, condition or rule adopted by the Director as a class 1 misdemeanor.

 

  1. Provides an affirmative defense to a licensee, or a designee or agent of a licensee, from any prosecution for the cultivation of marijuana, unless the charge is for possession, sale, transportation or distribution of marijuana that does not meet the definition of industrial hemp.

 

  1. Exempts a licensee who possesses, uses, sells, produces, manufactures or transports industrial hemp from statute criminalizing the possession, sale, production and transport of marijuana.

 

  1. Exempts a person who engages in commercial production, processing, manufacturing, distribution or commerce of industrial hemp outside the program from statute criminalizing the possession, sale, production and transport of marijuana if the person’s actions are authorized by federal law.

 

  1. Requires licensees to maintain records that are open to inspection or audit by the Director or the Director’s designee.

 

  1. Allows the Director or the Director’s designee to physically inspect an industrial hemp site to ensure compliance and collect samples for analysis by the State Agricultural Laboratory or another certified laboratory.

 

  1. Allows the AZDA to take corrective action if a sample contains an average tetrahydrocannabinol concentration of more than 0.3% on a dry weight basis or violates any other pesticide law.
  2. Allows the Director or the Director’s designee to possess and transport samples of Cannabis Sativa L. for the purpose of testing eligibility as industrial hemp.

 

  1. Prohibits transportation of industrial hemp from a site by a person that is not a licensed grower, processor, harvester or transporter or the Director or the Director’s designee.

 

  1. Requires a person transporting industrial hemp to carry licensing documents proving the industrial hemp was grown by a licensed grower.

 

  1. Requires a licensed grower to notify the AZDA of all of the following:
  2. a) the sale and distribution of any industrial hemp grown under the grower’s license;
  3. b) the name and address of the person or entity receiving the industrial hemp; and
  4. c) the amount of the industrial hemp sold or distributed.

 

  1. Requires the Director to adopt rules and orders to address, correct and remediate violations.

 

  1. Allows the Director to take the following corrective actions:
  2. a) issue a cease and desist order prohibiting the further sale, processing or transportation of industrial hemp;
  3. b) issue a stop sale order;
  4. c) seize and destroy any noncompliant crop, harvested crop or hemp seed; and
  5. d) take any other action to enforce regulations prescribed by statute and adopted rules and orders.

 

  1. Allows a person found in violation of prescribed regulations or any adopted to rule or order to request a hearing before an administrative law judge.

 

  1. Specifies that decision made by an administrative law judge in subject to review by the Director.

 

  1. Specifies that a request for a hearing does not stay a cease and desist order issued by the Director.

 

Industrial Hemp Trust Fund

 

  1. Establishes the Fund, consisting of legislative appropriations, licensing fees and other sources, for the exclusive purpose of implementing, continuing and supporting industrial hemp licensing.

 

  1. Designates the Director as trustee of the Fund and prohibits commingling of monies other than for investment purposes by the state Treasurer.

 

  1. Allows the Director to accept and spend federal monies and private grants, gifts, contributions and devises to assist in carrying out licensing activity.

 

  1. Establishes the Industrial Hemp Program as the beneficiary of the Fund, which includes salaries and fees, and office, administrative, bonding and travel expenses that incurred as a result of the program.

 

  1. Requires unexpended monies in the Fund at the end of the fiscal year to carry over to the next year rather than divert to the state General Fund.

 

Definitions

 

  1. Defines agricultural pilot program as the industrial hemp program that is designed to research the growth, cultivation and marketing of industrial hemp, hemp seeds and hemp products.

 

  1. Defines crop as any industrial hemp that is grown under a single industrial hemp license issued by the AZDA.

 

  1. Defines grower as an individual, partnership, company or corporation that propagates industrial hemp.

 

  1. Defines harvester as an individual, partnership, company or corporation that is licensed by the AZDA to harvest industrial hemp for a licensed grower.

 

  1. Defines processor as an individual, partnership, company or corporation that is licensed by the AZDA to receive industrial hemp for processing into hemp products or hemp seed.

 

  1. Defines transporter as individual, partnership, company or corporation that is licensed by the AZDA to transport industrial hemp for a licensed grower or processor.

 

  1. Defines hemp products as all products made from industrial hemp, including cloth, cordage, fiber, fuel, grain, paint, paper, construction materials, plastics and by-products derived from sterile hemp seed or hemp seed oil, but excludes any product made to be ingested except food made from sterile hemp seed or hemp seed oil.

 

  1. Defines hemp seed as any viable Cannabis Sativa L. seed that produces an industrial hemp plant that is subject to the rules and orders adopted by the Director.

 

  1. Defines industrial hemp as the plant Cannabis Sativa L. and any part of such plant, whether growing or not with a Delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent of a dry weight basis.

 

  1. Defines industrial hemp site as the location in which a grower, harvester, transporter or processor possesses a crop, a harvested crop or hemp seed.

 

  1. Defines license as the authorization that is granted by the AZDA to propagate, harvest, transport or process industrial hemp in Arizona.

 

  1. Defines licensee as a grower, harvester, transporter or processor with a valid license.

 

Miscellaneous

 

  1. Appropriates in FY 2020 the amount of $250,000 and three full-time equivalent positions to the AZDA’s plant services division, as well as $500,000 to the AZDA.

 

  1. Requires the Director to establish an Industrial Hemp Advisory Council (Council) to assist with the following:
  2. a) advise the Director regarding expenditures from the Fund; and
  3. b) provide additional assistance as the Director deems necessary.

 

  1. Requires the Director to appoint five members, including one public member, to the Council.

 

  1. Exempts the AZDA from rulemaking requirements for one year after the general effective date of the Fifty-third Legislature, Second Regular Session.

 

  1. Makes conforming changes.

 

  1. Becomes effective one year after the general effective date of the Fifty-third Legislature, Second Regular Session.

 

Amendments Adopted by Committee

 

  1. Modifies the powers of the Director relating to the oversight of noncompliant industrial hemp.

 

  1. Specifies that the $500,000 appropriation is allocated to the AZDA, rather than the AZDA laboratory.

 

  1. Establishes the Industrial Hemp Advisory Council.

 

Amendments Adopted by Committee of the Whole

 

  • Adds an exclusion to the definition of hemp products.

 

Senate Action

 

GOV               1/17/18     DPA     5-2-0

APPROP         2/6/18       DPA     8-1-1

3rd Read          2/15/18                  29-0-1

 

Prepared by Senate Research

February 15, 2018

JO/ZD/lat

Lucid Signs $1bn+ Investment Agreement with Public Investment Fund of Saudi Arabia

Here it is, a major investment into electric transportation by a government that wants a big piece of the new economy’s electric transportation sector. Telsa, who is the undisputed leader in electric automotive transportation may now have some competition. It looks like there will be a two year buffer to get all the production kinks worked out before there is any hint of a car to even roll off the production line for Lucid. Let’s see..this is going to be exciting!!

Lucid Motors announced today that it has executed a $1bn+ (USD) investment agreement with the Public Investment Fund of Saudi Arabia, through a special-purpose vehicle wholly owned by PIF.

Under the terms of the agreement, the parties made binding undertakings to carry out the transaction subject to regulatory approvals and customary closing conditions.

The transaction represents a major milestone for Lucid and will provide the company with the necessary funding to commercially launch its first electric vehicle, the Lucid Air, in 2020. Lucid plans to use the funding to complete engineering development and testing of the Lucid Air, construct its factory in Casa Grande, Arizona, begin the global rollout of its retail strategy starting in North America, and enter production for the Lucid Air.

Lucid’s mission is to inspire the adoption of sustainable energy by creating the most captivating luxury electric vehicles, centered around the human experience. “The convergence of new technologies is reshaping the automobile, but the benefits have yet to be truly realized. This is inhibiting the pace at which sustainable mobility and energy are adopted. At Lucid, we will demonstrate the full potential of the electric connected vehicle in order to push the industry forward,” said Peter Rawlinson, Chief Technology Officer of Lucid.

lucid-air-city-skyline-1920x1448

Lucid and PIF are strongly aligned around the vision to create a global luxury electric car company based in the heart of Silicon Valley with world-class engineering talent. Lucid will work closely with PIF to ensure a strategic focus on quickly bringing its products to market at a time of rapid change in the automotive industry.

A spokesperson for PIF said, “By investing in the rapidly expanding electric vehicle market, PIF is gaining exposure to long-term growth opportunities, supporting innovation and technological development, and driving revenue and sectoral diversification for the Kingdom of Saudi Arabia.”

The spokesperson added, “PIF’s international investment strategy aims to strengthen PIF’s performance as an active contributor in the international economy, an investor in the industries of the future and the partner of choice for international investment opportunities. Our investment in Lucid is a strong example of these objectives.”

This press release was originally published on SEP 17 2018 on www.lucidmotors.com

Arizona medical cannabis sales are projected to hit $1.2 billion over the next four years.

The United States’ legal cannabis industry is gearing up for immense growth. A total of 30 U.S. states have now legalized the plant for medicinal use and many more expected to follow suit. Let’s not forget about the nine states that have permitted the plant for adult-use, too.

Home to some 325 million people, the United States of America boasts a strong economy and perhaps the world’s most addressable cannabis market. With more U.S. states embracing cannabis reform and scientists unearthing the plant’s medicinal benefits, it’s not really surprising that the U.S. cannabis sales are fast-approaching an all-time high.

America is Dominating the Global Cannabis Market

By 2025, the global cannabis market is expected to pull in $150 billion, with the U.S. contributing to a significant portion of that figure. Based on statistics gathered by Pew Research Center, 61 percent of Americans say the use of cannabis should be legalized. This is in indication of a rapid shift in opinion on the five-fingered green plant. Back in 2000, a mere 31 percent of the population supported cannabis legalization.

According to the 2017-2018 edition of the Cannabis Benchmarks’ Annual Review and Outlookon the U.S. cannabis market, the market’s wholesale value in 2017 peaked at $5.7 billion; a figure that is four times larger than the value of the U.S. tobacco market and almost as big as the wheat market!

Cannabis Stocks are Skyrocketing in These U.S. States

If you’re an investor with your eye on the prize, make sure you seek out the most profitable cannabis markets that Uncle Sam has to offer. The following weed-friendly places on the map are contributing to the bulging U.S. cannabis market:

  1. California –Of course, The Golden State is featured on this list. California’s cannabis market is worth billions of dollars and just last year, $3 billion was spent on cannabis in the state. Fast-forward to the year 2022, and expenditure is forecast to hit $7.7 billion.

  2. Colorado –In 2017, Coloradoans spent $1.5 billion on both recreational and medicinal cannabis products. By 2022, an additional $1 billion will be spend on the green stuff. While the market may not be growing as quickly as California’s, it is a lot more mature, having legalized the plant for recreational use six years ago.

  3. Arizona – The medical cannabis market in Arizona is well-established. Last year, consumers forked out $461 million on cannabis-based products. Recreational cannabis has not yet been legalized in the State of Arizona, but ArcView Market Research and BDS Analytics predicts that it may happen in 2021. Until then, the state will benefit from medical cannabis sales, which are projected to hit $1.2 billion over the next four years.

  4. Florida– The cannabis industry in Florida is expanding at a rapid rate. So much so, that it could be worth $3 billion by 2020. Many cultivators are in the process of expanding their growing facilities. After all, Florida’s MMJ market will account for 50 percent of U.S. nations by 2020. What’s more, Orlando-based attorney John Morgan has pushed to get recreational cannabis on Florida’s 2020 ballot.

  5. Washington – If we gaze into the future, Washington’s cannabis industry could be raking in the cash. Cannabis spending could top $1.5 billion within the next few years, with output expected to be just below $3 billion. The cannabis market in Washington is projected to grow with a compound annual growth rate (CAGR) of 23 percent from 2016-2020.

  6. Michigan – Did you know that Michigan boasts one of the biggest medical cannabis markets in the U.S.? It’s true. A total of $812 million was spent on medical cannabis in 2017 and, if residents choose to legalize weed for adult-use in November, state cannabis spending could pull in $1.4 billion by 2022.

  7. Massachusetts –In July 2018, cannabis was legalized for recreational use in The Bay State. Now, the market is in full force and is forecast to pull in over $1.2 billion by 2022. Total output will be almost $2.3 billion, so watch this space.

Investing in the U.S. Cannabis Market

The growth rate for cannabis is in a league of its own. It is one of the fastest-growing industries on the planet. One of the major appeals for investors is the diversity in cannabis stocks that are currently trading on over-the-counter (OTC) exchanges. Should you be interested in investing in cannabis stocks, remember that many businesses in the cannabis sector lack access to financial institutions. Nonetheless, it is possible to get a sizeable return on investment (ROI) if you keep a close eye on cannabis stocks. Moreover, the industry comprises more than just cannabis cultivators. Suppliers and ancillary cannabis businesses make up a major segment of the market, so you have plenty of investment options at your disposal.

This article was originally published by Beth Jenkins on Aug 3, 2018 @  http://www.cannabisfn.com