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

Monitoring Systems for Outdoor Hemp Cultivation

With the increasing popularity of hemp cultivation outdoors and in greenhouses, new monitoring systems are entering the market to meet the needs of hemp farmers.

Hemp farming is fast becoming a popular industry due to its wide range of therapeutic and manufacturing uses. Many systems already exist for monitoring indoor hemp cultivation facilities, such as Urban-Gro and Braingrid, bringing novel, Internet of Things solutions into the hemp space.

Now that hemp is a fully legal agricultural commodity, more farmers are choosing to grow hemp outdoors. Within the CBD oil extraction industry, hemp is often found growing in a greenhouse. Both options are rising in popularity for hemp, meaning that monitoring systems for use in these environments are necessary.

Learn the requirements for effective monitoring systems, and take a look at some of the key players within the hemp cultivation industry.

FEATURES TO LOOK FOR IN A MONITORING SYSTEM

A remote monitoring system is designed to safeguard against prolonged environmental conditions that could damage or destroy an entire crop. A remote monitoring system must be able to:

  • Track near real-time changes in ecological conditions.
  • Communicate alerts to the user independent of the Internet or an Ethernet cable (e.g., enabled via a secondary cellular network for redundancy)
  • Continue to operate in the event of a power outage (must have a battery backup system)

Depending upon the size of the operation, a monitoring system able to analyze different zones within the crop may be desired. If hemp is being grown in a greenhouse, choose a monitoring system that can also be connected to any HVAC or lighting equipment to monitor performance, and check for failures.

BENEFITS OF AUTOMATING HEMP CULTIVATION

Monitoring systems are a core component of any automation system, as data must first be collected before an equipment or environmental decision can be made. Moving toward automation of the growing environment can accomplish the following:

Reduce the cost of labor

Automating essential tasks allows for less personnel, or grants staff to devote more of their time to other areas of interest, such as R&D or marketing efforts.

Increases yield and product quality

Measuring environmental conditions within a grow operation allows the farmer to improve their methods based on analyzed data and trends. This optimization often results in improved outcomes as related to quantity. Recipes for specific types of hemp can be created, ensuring repeatability in product quality.

Eliminate guesswork

Through analyzing cultivation data, the grower can make informed operational decisions. Changes in farming practices will only be based on evidence, rather than speculation. Sugarmade AI Cultivation Monitoring System

In May of this year, Sugarmade announced a new initiative to develop a simple, AI-based technology to monitor the cultivation of outdoor hemp. Sensors will be placed at appropriate locations throughout a hemp field and will gather data such as temperature, relative humidity, and soil moisture.

This monitoring system will be based on narrowband IoT technology, which is a type of cellular communications network. Advantages of this technology include a wider coverage area than other mobile networks and long battery life.

Sugarmade has not yet made public a timeline for the development of this technology.

SENSAPHONE REMOTE MONITORING SOLUTIONS

Another cellular-based system, the Sensaphone remote monitoring devices are specifically designed for use in a greenhouse environment. Sensors are placed throughout the greenhouse, and temperature, ventilation, CO2, and relative humidity data is collected. The user can set threshold limits for each parameter and is notified via a call or text if any variable falls outside the threshold limits.

Alerts are also received in the event of a power outage or equipment failure. Data is backed up on the cloud for redundancy, and the device is equipped with an internal rechargeable battery for redundancy in the case of a power outage.

LINK4 CLOUD-BASED GREENHOUSE CONTROLS

In addition to offering an automatic dosing system to ensure consistent fertigation, Link4 has also created a class of crop monitoring systems designed for greenhouse growing. These systems control as well as monitor, and can manage up to 24 HVAC and lighting devices.

AUTOGROW PROTECTED CROPPING

A form of outdoor growing, protected cropping allows plants to grow in a fully outdoor environment but with the added benefit of minimal structures offering protection from the elements. Examples of such enclosures would be hoop houses, tunnel houses, and canopy protection.

Autogrow’s system allows the hemp farmer to monitor and control variables such as irrigation, fertigation, run-off, and root zone. The user receives an alert in the event of a problem and can manage the system remotely from their smart device.

This articles was originally written and published by Amanda Luketa of Cannabis Tech https://www.cannabistech.com/articles/monitoring-systems-for-outdoor-hemp-cultivation/

After Centuries, Hemp Makes A Comeback At George Washington’s Home

For the first time in what historians say could be centuries, hemp has been grown and harvested at Mount Vernon, George Washington’s historic estate.

In the 1760s, Washington predicted that hemp could be a more profitable crop than tobacco and grew it across his farm. At the time, hemp was abundant in Virginia and elsewhere in the U.S.

This summer, horticulturalists at Mount Vernon partnered with the University of Virginia and planted hemp once again. “To bring this crop back it just really helps complete our agricultural story,” says Dean Norton, the director of horticulture at the estate.

The push to bring back hemp came from a Charlottesville, Va., farmer, Brian Walden, who considers himself a “hemp patriot.”

Dean Norton, the director of horticulture at Mount Vernon, stands in front of the plot of hemp grown this year.

Claire Harbage/NPR

 

He hoped planting the crop at Washington’s home again could give hemp a public image makeover.

“And [get] the message across that this is an innocuous plant that has real benefits and our Founding Fathers knew that and they planted it.”

But convincing the deciders at Mount Vernon wasn’t easy. “It’s been two generations that we last grew hemp. That means it’s lost from the general population’s knowledge or memory,” Walden says. It took months for him to make the case.

Hemp is still considered a controlled substance by the federal government, but Mount Vernon is able to grow industrial hemp because of a provision included in the federal Farm Bill passed in 2014. It allows states to harvest the crop in limited supply for research purposes only. According to the National Conference of State Legislatures, 38 states considered industrial hemp legislation in 2018.

To be clear, the hemp harvested at Mount Vernon is not the type of cannabis you smoke like its cousin — marijuana. Rather, it’s used to make rope, cloth and a host of other products.

Deborah Colburn, a historic trade interpreter at Mount Vernon, demonstrates the process of turning dried hemp into a pliable fiber for making cloth.
Claire Harbage/NPR

Hemp historians say the plant was not just a widely grown crop in Colonial America, but that farmers were mandated to grow it by the British crown because of its versatility and the exceptionally strong fibers could be used for making sails, repairing fishing nets and clothing slaves.

A crackdown on the plant began in the 1930s, when the federal government took steps to tighten control on cannabis, through a Marihuana Tax Act. In 1970 all cannabis plants were lumped together, regardless of THC levels. And ever since, hemp has been a Schedule I drug, just like heroin, LSD and ecstasy.

Hemp historians say that the exceptionally strong fibers could be used for making sails, repairing fishing nets and clothing slaves.
Claire Harbage/NPR

Hemp and marijuana do have similar aromas, but the level of tetrahydrocannabinol – or THC – the chemical that induces the intoxicating high, is minuscule in hemp.

That does not keep Dean Norton, the horticulturalist, from lighting up with excitement when talking about the plant. He gets a kick out of the tourists who stop and take pictures next the seven-foot-tall stalks.

“This is totally for interpretive value,” Norton says. “We could light a bonfire, sit around and nothing is going to happen to you.”

Congress could soon legalize hemp

The Farm Bill is up for renewal this year, and there is chance industrial hemp could become a legal crop. This could be a boon to farmers, like Brian Walden, who predict American hemp production could be a billion-dollar industry.

Brian Walden hoped by having hemp planted at Washington’s historic home, the crop could get a very public image makeover.
Claire Harbage/NPR

According to a June report by the Congressional Research Service, “the global market for hemp consists of more than 25,000 products in nine submarkets.” Hemp fibers can be made into yarns, paper, construction materials even parts for automobiles. Hemp oil can be used in lotions and cosmetics.

Walden says that because industrial hemp is not something a lot of American farmers grow, it is also not a commodity caught in escalating trade war, like soybeans and beef.

Mount Vernon is able to grow industrial hemp because of provision included in the federal Farm Bill passed in 2014. It allows states to harvest the crop in limited supply for research purposes only.
Claire Harbage/NPR

“It is something can boost their farming in a time when tariffs are inhibiting that,” says Walden who is also a member of the Virginia Industrial Hemp Coalition.

John Hudak is a senior fellow at the Washington D.C.-based Brookings Institution and author of Marijuana: A Short History. He says there is a real opportunity to legalize industrial hemp because politicians are changing attitudes towards the plant.

“I think where we’re at right now, is a situation in which, finally a lot of members of Congress … have finally stopped buying drug war-era rhetoric, stopped thinking about the cannabis plant in a very uniform way,” Hudak says.

That includes Senate Majority Leader Mitch McConnell, R-Ky., who has been pushing for industrial hemp’s legalization since April.

“I don’t think it’s a slam dunk, but I do think there’s a real opportunity for passage,” says Hudak.

The Farm Bill is up for renewal this year, and there is chance industrial hemp could become a legal crop.
Claire Harbage/NPR

 

This article was originally published August 23, 2018 by Brakkton Booker of National Public Radio (NPR) 

 

Solar Water Pumping Solutions in Agriculture

I’ve been getting asked more and more lately about solar power and pumping water. If you are looking for better, more sustainable cost efficient ways to irrigate your fields this may be your hot ticket. Solar powered water pumps for hemp or cannabis grows.

You can check these guys out, Grundfos who offer products that can help you pump water if you’re far off the grid or in a remote power location.

http://www.grundfos.com

Grundfos keeps lifecycle costs low for solar water supply. We were one of the first to offer an off-grid water pumping system. Today, we are a global player that leads the way developing sustainable solar water solutions.

  • Low operating costs and no energy costs – costs are known in advance
  • Favourable investment climate – solid return on investment
  • A robust system – long product life, low maintenance and manageable   service requirements
  • Advice and support to ensure delivery of the right optimised solar  water solution

Grundfos Solar Water Solutions deliver unmatched flexibility for reliable water  supply with no ongoing energy costs. From low-flow to large-scale solar-powered water supply, Grundfos has a highly optimised solar water solution that matches any application on the farm or ranch, in or around the home, and for communities in developing countries-