In this subtitle, “Program” means the Hemp Farming Program.

It is the intent of the General Assembly that: Hemp be established as an agricultural commodity; Hemp produced in accordance with this subtitle may be: Possessed in the State; and Sold, distributed, transported, marketed, manufactured, or processed in the State or outside the State; and Hemp produced outside the State in a state that authorizes the production of hemp may be sold, distributed, transported, marketed, manufactured, or processed in the State.

There is a Hemp Farming Program. The purpose of the Program is to: Promote the production of hemp in the State; Promote the commercial sale of hemp products in the State or outside the State; Facilitate the research of hemp and hemp products between institutions of higher education and the private sector; and Monitor and regulate the production of hemp in the State. The Department shall administer the Program.

There is a Hemp Farming Fund. The purpose of the Fund is to defray the costs of administering and enforcing the Program. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: Revenue distributed to the Fund under § 14–306 of this subtitle; Money appropriated in the State budget to the Fund; Interest earnings of the Fund; and Any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for the costs associated with administering and enforcing the Program. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund.

The Department, in consultation with the Governor and the Attorney General, shall establish a plan for monitoring and regulating the production of hemp in the State. The plan required under subsection (a) of this section shall include: A practice to maintain, for a period of not less than 3 calendar years, relevant information regarding the land on which hemp is produced, including a legal description of the land; A procedure for testing, using postdecarboxylation or another similarly reliable method, the delta–9–tetrahydrocannabinol concentration levels of hemp produced in the State; A procedure for the effective disposal of: Plants, whether growing or not, that are produced in violation of this subtitle; and Products derived from plants that are produced in violation of this subtitle; A procedure for the enforcement of this subtitle; A procedure for conducting annual inspections that include, at a minimum, a random sample of hemp producers to verify that hemp is being produced in accordance with this subtitle; A procedure for submitting to the Secretary of the U.S. Department of Agriculture within 30 days of receipt by the Department: The contact information for each person licensed to produce hemp; The legal description of the land on which hemp is produced; and The status of each license and any changes to the status of a license; and A certification that the State has the resources and personnel to carry out the practices and procedures required under the plan. The plan required under subsection (a) of this section may include any other practice or procedure that is consistent with federal law. The Department shall submit the plan required under subsection (a) of this section to the Secretary of the U.S. Department of Agriculture for approval. If the Secretary of the U.S. Department of Agriculture does not approve the plan submitted under paragraph (1) of this subsection, the Department shall: Amend the plan; and Submit the amended plan to the Secretary of the U.S. Department of Agriculture.

The Department shall establish a procedure for licensing the production of hemp in accordance with the plan established under § 14–305 of this subtitle. The Department may set reasonable fees for the issuance and renewal of licenses and other services the Department provides under this subtitle. The Department shall pay all funds collected under this section into the Fund.

The Department shall adopt regulations to carry out this subtitle.

This section does not apply to an institution of higher education or a person that produces hemp under the Hemp Research Pilot Program in accordance with Subtitle 2 of this title. A person may not produce hemp in the State unless the person is licensed by: The Department; or The Secretary of the U.S. Department of Agriculture.

A person may not knowingly: Fail to comply with the Department’s plan for monitoring and regulating the production of hemp established under § 14–305 of this subtitle; Misrepresent or fail to provide the legal description of land on which hemp is produced; Produce hemp without a valid license; or Produce plants, or any part of a plant, that exceeds a delta–9–tetrahydrocannabinol concentration of 0.3% on a dry weight basis. The Department shall report a person that knowingly violates this subtitle to the Attorney General and the U.S. Attorney. If the Department determines that a person negligently violated this subtitle, the Department shall require the person to correct the violation, including requiring that: The violation be corrected by a reasonable date; and The person report to the Department, at a frequency determined by the Department and for a period of not less than 2 calendar years, to verify compliance with this subtitle. If a person is found by the Department to have negligently violated this subtitle three times in a 4–year period, the person may not produce hemp in the State for a period of 5 years beginning on the date of the third violation.