Date: 04/29/2013

Final
BILL SUMMARY for SB13-241

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Votes: View--> Action Taken:
Refer Senate Bill 13-241 to the Committee on ApproPASS



01:33 PM -- Senate Bill 13-241

Representative Coram, sponsor, presented Senate Bill 13-241. This bill repeals House Bill 12-1099, the Industrial Hemp Remediation Pilot Program in the Department of Public Health and Environment, and establishes a registration program in the Department of Agriculture for people cultivating industrial hemp either commercially or for research and development purposes. The bill renames the Industrial Hemp Pilot Program Committee as the Industrial Hemp Committee and specifies the qualifications for the 8 members who will be appointed by the committee chairs of the House and Senate agriculture committees. Members serve without compensation but are entitled to reimbursement for expenses. The Commissioner of Agriculture will adopt rules by March 1, 2014, to implement the registration program.

The Department of Agriculture and Industrial Hemp Committee will determine the qualifications and other criteria a person must satisfy for registration purposes. A person wanting to cultivate industrial hemp commercially, or on not more than 10 acres for research and development purposes, must register annually by May 1 of the year in which the applicant plans to grow industrial hemp. The Department of Agriculture will charge a registration fee based on the size of land area on which the applicant will conduct operations sufficient to cover the direct and indirect costs of regulation. The Commissioner of Agriculture and Industrial Hemp Committee will establish a system for registrants to test their products to verify compliance with the Delta-9 Tetrahydrocannabinol (THC) concentration limit of no more than 0.3 percent on a dry weight basis. Registrants growing for commercial purposes must enter into a purchase agreement with an in-state industrial hemp processor and provide that information to the department. The Commissioner of Agriculture has the authority to deny, revoke, or suspend a registration and may impose a civil penalty not to exceed $2,500 per violation of this bill or any rule adopted pursuant to the bill. If the federal government authorizes the U.S. Department of Agriculture to regulate the cultivation and research and development of industrial hemp and the Commissioner of Agriculture subsequently determines that state regulation is no longer necessary, state regulation will be repealed.

01:39 PM -- Ron Carleton, Department of Agriculture, spoke in support of the bill. Mr. Carleton discussed recommendations made by the Amendment 64 Task Force related to industrial hemp cultivation and the regulatory structure which would be managed by the department. Mr. Carleton answered questions from the committee regarding acreage restrictions per the provisions of the bill.

01:43 PM -- Kent Peppler, Rocky Mountain Farmers Union, spoke in support of the bill. Staff distributed a statement to the committee from the Rocky Mountain Farmers Union (Attachment A). Mr. Peppler talked about the numerous uses for hemp and outlined concerns regarding federal laws that do not allow industrial hemp cultivation. He also discussed the interest his organization has seen in industrial hemp cultivation.

130429 AttachA.pdf130429 AttachA.pdf

01:47 PM -- Ryan LoFlin, Rocky Mountain Hemp, spoke in support of the bill. Mr. LoFlin discussed his intentions to grow industrial hemp and answered questions regarding the differences between industrial hemp and marijuana. Representative Coram answered questions from the committee regarding acreage limitations in the bill.

01:52 PM -- Lydia Parker, speaking on behalf of Chad Pfitzer of Redtail Cartography, testified in support of the bill. Ms. Parker distributed a statement from Mr. Pfitzer to the committee (Attachment B) and read the statement to the committee. Ms. Parker answered questions from the committee regarding what is being done to alleviate law enforcement concerns that industrial hemp is the same as marijuana.

130429 AttachB.pdf130429 AttachB.pdf

02:01 PM -- Josh Rabe and John Patterson, Colorado Industrial Hemp Supply, spoke in support of the bill. Mr. Patterson discussed the hemp products that his company creates and the fireproof nature of these products. Mr. Rabe discussed his company's mission and negative carbon footprint, and the employees that his company supports as well as the ability for industrial hemp to revolutionize the construction industry. He answered questions from the committee regarding how much his company's construction hemp products cost compared to other construction products on the market, uses for waste products from hemp cultivation, hemp's natural resistance to decay, and expected demand for hemp construction products.

02:12 PM -- Erik Hunter, Hemp Cleans, offered an update to the Industrial Hemp Phytoremediation Pilot Program that he has been involved with pursuant to House Bill 12-1099. Dr. Hunter discussed the amount of water that is needed to grow hemp, seed stock, the potential for hemp to be grown in dryer climates like those found on Colorado's eastern plains, high-altitude varieties of industrial hemp, the similar growing requirements for both hemp and corn, and his educational background.

02:21 PM -- Jennifer Cappa, representing herself, discussed her educational studies, her involvement with Hemp Cleans, her research interests, the ability for hemp to uptake various metals and carcinogens, and hemp's ability to help clean toxic soil. Ms. Cappa answered questions from the committee regarding the parts of the hemp plant that uptake metals from soil.

02:25 PM -- Samantha Walsh, Colorado Hemp Association, spoke in support of the bill. Ms. Walsh discussed her involvement in the drafting of the bill.

02:26 PM -- Adam Dunn, Hemp Hoodlamb, discussed his involvement in the hemp industry in the Netherlands and the multiple uses for hemp. Mr. Dunn answered questions from the committee regarding the bullet proof nature of a hemp jacket that he brought to show the committee, if his company's products might be able to replace Kevlar products, his background, where his company's products are manufactured, and the potential for exporting hemp out of Colorado. Mr. Dunn continued to answer questions from the committee regarding the financial impact of imported hemp products, how quickly the industrial hemp industry might grow if the bill passes, and the fire-resistant nature of hemp clothing.

02:37 PM -- Jason Lauve, Hemp Cleans, spoke in support of the bill. Mr. Lauve discussed his professional background, the relationship between federal hemp laws and state hemp laws, hemp's ability to clean soil and water, and multiple other uses for hemp. Mr. Lauve answered questions from the committee regarding if hemp could be used to make windmills, if hemp could be used to clean SuperFund sites, and the ability for hemp to be grown on dry land versus irrigated farms.

02:53 PM -- Tracy Shogren, The Hemp Store, spoke in support of the bill. Ms. Shogren discussed the hemp products she sells in her store and her desire to see these products manufactured in Colorado. Representative Coram answered questions regarding regulatory structures that control hemp products.

03:00 PM -- James McVaney, Industrial Hemp in Colorado, said he supports the bill but that it needs modifications. Staff distributed a stakeholder report from Industrial Hemp in Colorado's farmers talks (Attachment C). Mr. McVaney discussed concerns of farmers regarding if federal hemp laws may supersede state hemp laws. He also talked about the need for more education of law enforcement regarding hemp and the growing conditions that hemp requires to thrive. Representative Coram answered questions from the committee regarding the language of the bill and the legality of growing industrial hemp.

130429 AttachC.pdf130429 AttachC.pdf

03:07 PM

Representative Coram and Representative Fischer, co-sponsors, closed their remarks on the bill.

BILL:SB13-241
TIME: 03:11:02 PM
MOVED:Coram
MOTION:Refer Senate Bill 13-241 to the Committee on Appropriations. The motion passed on a vote of 11-0 with two excused.
SECONDED:Fischer
VOTE
Buck
Yes
Coram
Yes
Garcia
Yes
Lebsock
Yes
McLachlan
Yes
McNulty
Excused
Mitsch Bush
Yes
Rankin
Yes
Rosenthal
Yes
Saine
Yes
Sonnenberg
Excused
Vigil
Yes
Fischer
Yes
Final YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS




03:15 PM

The committee adjourned.