HF4688

Purpose

• Expand and clarify what certain cannabis and hemp license holders can do, including transporting products to testing facilities, and broaden the activities allowed for multiple license types (microbusiness, mezzobusiness, cultivator, and manufacturer). The bill also adds permission for on-site consumption and increases the range of products and transactions tied to these licenses, such as low-potency hemp edibles and hemp-derived products.

Main provisions

• For cannabis microbusiness licensees:

  • Allowed actions include growing and harvesting cannabis, producing cannabis concentrates, hemp concentrates (including those with Delta-9 THC over 0.3% by weight), manufacturing artificially derived cannabinoids, and producing adult-use cannabis products and low-potency hemp edibles.
  • May manufacture hemp-derived consumer products for public consumption and purchase materials (immature plants/seedlings, cannabis flower/products, and hemp items) from other licensees (e.g., cannabis mezzobusinesses, cultivators, manufacturers, wholesalers, lower-potency hemp businesses) and industrial hemp sources.
  • Authorized to package and label products, sell to customers or other licensees, and operate on-site consumption establishments.
  • May transport cannabis products and hemp-derived products to a cannabis testing facility for testing, plus other office-approved actions.

• For cannabis mezzobusiness licensees:

  • Similar broad set of authorized actions as microbusinesses, including growing/harvesting, making concentrates, hemp concentrates, artificially derived cannabinoids, adult-use products, and processing medical cannabinoid products where applicable.
  • Authorized to purchase materials from a wide range of licensees (including microbusinesses, cultivators, manufacturers, wholesalers, and hemp entities), package/label products, sell to other businesses or customers, transport to testing facilities, and other office-approved actions.

• For cannabis cultivator licensees:

  • May grow cannabis within approved space, harvest cannabis flower, and package/label immature plants, seedlings, and cannabis flower for sale to other cannabis businesses.
  • May transport cannabis flower to a manufacturer on the same premises and transport products to a testing facility for testing, plus other actions approved by the office.

• For cannabis manufacturer licensees:

  • May purchase cannabis flower, cannabis products, hemp plant parts, hemp concentrate, and artificially derived cannabinoids from other licensees or certain hemp sources.
  • May accept cannabis flower from unlicensed persons who are 21 or older, up to two ounces per person per occasion.
  • May make cannabis concentrates, hemp concentrates (including Delta-9 THC > 0.3%), and artificially derived cannabinoids.
  • May manufacture adult-use cannabis products, lower-potency hemp edibles, and hemp-derived consumer products for sale to other businesses or customers.
  • May transport products to testing facilities and perform other office-approved actions.

• Testing and on-site consumption:

  • The bill explicitly authorizes transport to testing facilities across multiple license types and includes the possibility of on-site consumption establishments for edible products and lower-potency hemp edibles.

Significant changes to existing law

• Expanded scope of actions for four license types:
  • cannabis microbusiness, cannabis mezzobusiness, cannabis cultivator, and cannabis manufacturer—adding broad authority to grow, process, package, label, sell, transfer materials between licensees, and transport to testing facilities.
• Allowance for unlicensed individuals (21+) to deliver cannabis flower to licensed manufacturers for processing, with a per-occasion cap of two ounces.
• Inclusion of hemp-focused activities within the same licensing framework, such as hemp concentrates, lower-potency hemp edibles, and hemp-derived consumer products, and their sale to other licensees or customers.
• Explicit authorization to handle Delta-9-THC concentrates above 0.3% by weight and artificially derived cannabinoids.
• Permit on-site consumption facilities and cross-category purchasing from industrial hemp and related hemp licenses (chapter 18K).

How this might affect practice

• More flexible supply chain among licensees (microbusiness, mezzobusiness, cultivator, manufacturer) and between licensed and unlicensed participants for certain activities, with testing and regulatory oversight maintained via the office.
• Potentially increased product variety, including adult-use and medical-oriented cannabinoids, hemp-derived products, and on-site consumption options.
• Regulatory emphasis on testing, labeling, and transfer of materials to testing facilities, along with limited acceptance of unlicensed inputs to licensed manufacturers.

Relevant Terms - cannabis microbusiness - cannabis mezzobusiness - cannabis cultivator - cannabis manufacturer - adult-use cannabis products - medical cannabis - lower-potency hemp edibles - hemp-derived consumer products - hemp concentrate - delta-9 tetrahydrocannabinol (Delta-9-THC) - artificially derived cannabinoids - hemp plant parts and propagules - industrial hemp grower (chapter 18K) - industrial hemp processor (chapter 18K) - licensed vs. unlicensed persons - cannabis testing facility - on-site consumption - license endorsements - packaging and labeling - purchase from/transfer to other licensees - U.S. Food and Drug Administration-style terms not used here but related: “testing,” “certification,” “compliance” - two-ounce per occasion limit for unlicensed inputs - within the limits established by this section