SB1337 Summary

• Establishes a licensing system for industrial hemp growers and processors in Arizona, defining industrial hemp as cannabis sativa L. with no more than 0.3% delta-9 tetrahydrocannabinol on a dry weight basis.

• Requires the Arizona Department of Agriculture to adopt rules for licensing, testing, and supervising industrial hemp production, with license fees deposited into a new Industrial Hemp Trust Fund.

• Mandates that growers and processors obtain fingerprint background checks and maintain records subject to department inspection; allows department to destroy crops exceeding THC limits and issue cease-and-desist orders.

• Provides an affirmative defense to marijuana possession charges for licensed industrial hemp growers and processors in compliance with the new article, and exempts such licensees from general marijuana prohibition laws.

• Appropriates $250,000 with 3 FTE positions to the Department of Agriculture Plant Services Division and $422,000 to the State Agricultural Laboratory for implementation in fiscal year 2017-2018.