SB 679 — Regulating certain plant-based derivatives, hemp-derived cannabinoid products, and Kratom

The purpose of the act is to allow limited, regulated access to select plant-based derivatives which are naturally occurring and as authorized by the provisions of this article for adults 21 years of age and older:

Businesses located within this state engaged in manufacturing, processing, distributing, or sale of hemp-derived cannabinoid products and businesses located outside of this state that are engaged in the remote distribution or remote retail sale of hemp-derivedhemp- derived cannabinoid products across state lines for delivery into this state, are subject to the permitting, labeling, and other control and administration provisions of this article.

In the interest of protecting the safety, welfare, and well-being of West Virginia citizens and residents, West Virginia nexus and jurisdiction attaches for purposes of business registration, permitting, Enr CS for CS for SB 679 regulation, and taxation with relation to the activity of distribution or sale of hemp-derived cannabinoid products across state lines into this state.

 (c)(c) As used in this section:(1)section: "Alcohol Beverage Control Administration Commissioner" means the West Virginia Alcohol Beverage Control Administration Commissioner or his or her designees.(2) "Commissioner" means the Commissioner of Agriculture or his or her designees.(3) "Contaminated" means made impure and or unsafe by biological, chemical, or physical additives.(4) "Department" or "Department of Agriculture" means the West Virginia Department of Agriculture.(5) "Final product" means a product approved by the Department in accordance with the provisions of this article, and any other applicable rules and requirements set forth by the Department, as specified for the product.(6) "Grower" means a person or entity which grows industrial hemp.(6) (7)  "Hemp-derived cannabinoid" means a naturally occurring non-synthetic substance as  follows:(A) Delta-9 tetrahydrocannabinol with a concentration level consistent with 7 U.S.C.

§5940(1) with"Alcohol aBeverage totalControl concentrationAdministration ofCommissioner" notmeans morethe thanWest 0.3Virginia percentAlcohol onBeverage aControl dryAdministration weightCommissioner basis;or his or her designees.

or(2) (B)"Commissioner" Delta-8means tetrahydrocannabinol;(C)the Delta-10Commissioner tetrahydrocannabinol;(D)of HexahydrocannabinolAgriculture (HHC-);(E)or Tetrahydrocannabiphorolhis (THCp);or her designees.

and(F)(3) Tetrahydrocannabivarin"Contaminated" (THCv).(8) "Non-naturally occurring derivative" means amade productimpure thator isunsafe contaminated as defined by thisbiological, article,chemical, or aphysical productadditives. that, upon result of Department laboratory testing, is found to be in violation of this article or rules promulgated therewith, or otherwise violates applicable federal regulations.(9) "Processor" or "manufacturer" means a person or entity that processes compounds or converts hemp-derived cannabinoids into a hemp-derived cannabinoid product and distributes, sells, or offers for sale, hemp-derived cannabinoid products in this state on a wholesale basis to a retailer.(11) (10) "Retail sales" means the sale of hemp-derived products in a commercial setting as determined and set forth in rules promulgated by the commissioner.

of(4) Agriculture.(10)"Department" (11)or "Seller""Department orof "distributor"Agriculture" means athe personWest orVirginia entityDepartment thatof distributes,Agriculture. offers for sale, or sells hemp-derived products to persons for personal consumption.(d) Permitting and registration.

(5) "Final product" means a product approved by the Department in accordance with the provisions of this article, and any other applicable rules and requirements set forth by the Department, as specified for the product.

(6) "Grower" means a person or entity which grows industrial hemp.

(7) "Hemp-derived cannabinoid" means a naturally occurring non-synthetic substance as follows:

(A) Delta-9 tetrahydrocannabinol with a total concentration of not more than 0.3 percent on a dry weight basis;

or (B) Delta-8 tetrahydrocannabinol;

(C) Delta-10 tetrahydrocannabinol;

(D) Hexahydrocannabinol (HHC-);

(E) Tetrahydrocannabiphorol (THCp);

and Enr CS for CS for SB 679 (F) Tetrahydrocannabivarin (THCv).

(8) "Non-naturally occurring derivative" means a product that is contaminated as defined by this article, or a product that, upon result of Department laboratory testing, is found to be in violation of this article or rules promulgated therewith, or otherwise violates applicable federal regulations.

(9) "Processor" or "manufacturer" means a person or entity that processes compounds or converts hemp-derived cannabinoids into a hemp-derived cannabinoid product and distributes, sells, or offers for sale, hemp-derived cannabinoid products in this state on a wholesale basis to a retailer.

(10) "Retail sales" means the sale of hemp-derived products in a commercial setting as determined and set forth in rules promulgated by the commissioner.

(11) "Seller" or "distributor" means a person or entity that distributes, offers for sale, or sells hemp-derived products to persons for personal consumption.

(d) Permitting and registration.

 AnyAny person manufacturing, processing, distributing, offering for sale, or selling any hemp-derived cannabinoid products in this state shall have a permit issued by the commissioner and be otherwise authorized to do business in this State.

The(2) commissioner may issue manufacturer, processor, distributor, and retailer permits.(2) The business activity subject to permitting under this section shall be treated as separate and distinct from manufacturing, processing, distribution, or sale of kratom and kratom products addressed and administered under §19-12F-1 et seq.

of this code.(3)code. Persons engaged in manufacturing, processing, distribution, or sale of hemp-derived cannabinoid products in this state shall obtain a West Virginia business registration certificate as specified in §11-12-1 et seq.

(3) Persons engaged in manufacturing, processing, distribution, or sale of hemp-derived cannabinoid products in this state shall obtain a West Virginia business registration certificate as Enr CS for CS for SB 679 specified in §11-12-1 et seq.

  (5) The commissioner shall keep a list of all persons and entities that have been issued permits pursuant to this section.

Such list shall be public information and shall be published initially on or before June 30, 2024, by the commissioner on its website from time to time so as to reflect a current listing.(6)listing. The commissioner shall keep a list of any persons or entities that have been subject to a permit revocation, withdrawal, suspension, non-renewal, or other process whereby the person or entity has ceased to be a permit holder in good standing with the commissioner.(7) The commissioner shall keep a list of all hemp-derived cannabinoid products that have been approved for sale or distribution in this state.

Such(6) listThe commissioner shall bekeep publica informationlist andof shallany bepersons publishedor initiallyentities onthat orhave beforebeen Junesubject 30,to 2024,a bypermit therevocation, commissionerwithdrawal, onsuspension, itsnon-renewal, websiteor fromother timeprocess towhereby timethe soperson asor entity has ceased to reflectbe a currentpermit listing.(e)holder Rules.in good standing with the commissioner.

(7) The commissioner shall keep a list of Agricultureall shallhemp-derived proposecannabinoid legislativeproducts rulesthat forhave promulgationbeen inapproved accordancefor withsale §29A-3-1or etdistribution seq.in this state.

ofSuch thislist codeshall thatbe include,public butinformation areand notshall limitedbe to:(1)published Issuanceinitially ofon permits to persons who wish to manufacture, handle, process, distribute, offer for sale, or sellbefore hemp-derivedJune cannabinoid30, products;(2)2024, Regularby samplingthe andcommissioner testingon ofits hemp-derivedwebsite cannabinoidfrom productstime to determinetime purityso levels;(3) Supervision of the hemp-derived cannabinoid products during their cultivation, processing, and sale;(4) Assessment of fees as commensurateto withreflect thea needcurrent oflisting. the commissioner’s activities in issuing permits, laboratory testing, and in overseeing the regulation of hemp-derived products.

(e) Rules.

The commissioner shall propose legislative rules for promulgation in accordance with §29A-3-1 et seq.

of this code that include, but are not limited to:

(1) Issuance of permits to persons who wish to manufacture, handle, process, distribute, offer for sale, or sell hemp-derived cannabinoid products;

(2) Regular sampling and testing of hemp-derived cannabinoid products to determine purity levels;

(3) Supervision of the hemp-derived cannabinoid products during their cultivation, processing, and sale;

Enr CS for CS for SB 679 (4) Assessment of fees as commensurate with the need of the commissioner’s activities in issuing permits, laboratory testing, and in overseeing the regulation of hemp-derived products.

(5) Approving the manufacture, production, sale, processing, distributing, and transport of hemp-derived cannabinoid products;(6) Developing guidelines for the labeling of hemp-derived cannabinoid products,products; including, but not limited to, a statement which says "KEEP OUT OF REACH OF CHILDREN.

CONSULT(6) YOUR PHYSICIAN BEFORE USE IF YOU ARE PREGNANT OR TAKING ANY MEDICATION" and "USE OF THIS PRODUCT MAY IMPACT DRUG TESTING RESULTS”;(7) Developing guidelines orfor standards related to the displaylabeling or staging of hemp-derivedcannabinoidhemp-derived productscannabinoid toproducts, increaseincluding, thebut safetynot oflimited underageto, patronsa instatement retailwhich environments;(8)says Developing"KEEP guidelinesOUT orOF standardsREACH toOF restrictCHILDREN. the advertising or marketing of unapproved or unlawful products;(9) Developing prohibitions on child-targeted packaging and shapes and forms of products;(10) Developing administrative rules, procedures, and sanctions for violations of this section;

and(11)CONSULT AnyYOUR otherPHYSICIAN rulesBEFORE andUSE proceduresIF necessaryYOU toARE carryPREGNANT outOR theTAKING purposesANY ofMEDICATION" thisand article.(f)"USE EmergencyOF rules;THIS PRODUCT MAY IMPACT DRUG TESTING RESULTS”;

mandatory(7) labeling.(1)Developing Emergencyguidelines Rules.or standards related to the display or staging of hemp-derived cannabinoid products to increase the safety of underage patrons in retail environments;

The(8) commissionerDeveloping andguidelines theor Alcoholstandards Beverage Control Administration Commissioner may, pursuant to §29A-3-15restrict ofthe thisadvertising code, promulgate such separate or jointmarketing emergency rules as are necessary to effectuate the purposes of thisunapproved article.(2)or Labeling.unlawful products;

(A)(9) TheDeveloping commissionerprohibitions shall review labels to be used on hemp-derivedchild-targeted cannabinoidpackaging products to be sold in this state.(B) In addition to the labeling required by the provisions of subdivision (6) of subsection (e) of this section the commissioner may require and prescribeshapes such labeling as he or she may determine to be necessary and appropriateforms forof hemp-derivedproducts; cannabinoid products to be sold to the final consumer in this state.(C) Hemp-derived cannabinoid products may not be sold to the final consumer in this State without an approved label.(g) Any website owned, managed, or operated by a person who manufactures, processes, distributes, offers for sale, or sells hemp-derived cannabinoid products to persons in this state shall employ a neutral age-screening mechanism to verify legal age.

The(10) mechanismDeveloping mayadministrative includerules, anprocedures, age-gate,and age-screen,sanctions orfor anyviolations otherof age-verification mechanism approved by the commissioner.(h) Any person or entity distributing, offering to distribute, or selling hemp-derived cannabinoid products to persons in this statesection; by other means other than a direct in-person transaction may shall employ an age verification mechanism approved by the commissioner.

ofand Agriculture.(i)(11) InAny addition to all other applicablerules taxes,and thereprocedures isnecessary hereby levied an additional tax equal to 11carry percentout of the retailpurposes sales price on each retail sale of hemp-derived cannabinoids for the privilege of engaging in the business of selling hemp-derived cannabinoid products For the privilege of engaging or continuing within this statearticle. in the business of the retail sale of hemp-derived cannabinoid products, as defined in subdivision (6), subsection (a) of this section, there is hereby levied upon and collected from every person exercising the privilege a privilege tax equal to 11 percent of the retail sales price on each retail sale of hemp-derived cannabinoids.

Such(f) taxEmergency isrules; imposed in addition to all other applicable taxes.(2) (1) The rate of tax imposed by this subsection is 11 percent of the retail sales price of hemp-derived cannabinoid products sold during the reporting period, depending upon the person’s method of accounting for federal income tax purposes The tax imposed by this subsection shall not be added by the retailer as a separate charge or line item on any sales slip, invoice, receipt, other statement, or memorandum of the price paid by a customer.

(3)mandatory Thelabeling. tax shall be due and payable on a quarterly basis as follows:

(1) Emergency Rules.

The commissioner andthe Alcohol Beverage Control Administration Commissioner may, pursuant to §29A-3-15 of this code, promulgate such separate or joint emergency rules necessary to effectuate the purposes of this article.

(2) Labeling.

(A) The commissioner shall review labels to be used on hemp-derived cannabinoid products to be sold in this state.

Enr CS for CS for SB 679 (B) In addition to the labeling required by the provisions of subdivision (6) of subsection (e) of this section the commissioner may require and prescribe such labeling as he or she may determine to be necessary and appropriate for hemp-derived cannabinoid products to be sold to the final consumer in this state.

(C) Hemp-derived cannabinoid products may not be sold to the final consumer in this State without an approved label.

(g) Any website owned, managed, or operated by a person who manufactures, processes, distributes, offers for sale, or sells hemp-derived cannabinoid products to persons in this state shall employ a neutral age-screening mechanism to verify legal age.

The mechanism may include an age-gate, age-screen, or any other age-verification mechanism approved by the commissioner.

(h) Any person or entity distributing, offering to distribute, or selling hemp-derived cannabinoid products to persons in this state by means other than a direct in-person transaction shall employ an age verification mechanism approved by the commissioner.

(i) For the privilege of engaging or continuing within this state in the business of the retail sale of hemp-derived cannabinoid products, as defined in this section, there is hereby levied upon and collected from every person exercising the privilege a privilege tax equal to 11 percent of the retail sales price on each retail sale of hemp-derived cannabinoids.

Such tax is imposed in addition to all other applicable taxes.

(1) The tax imposed by this subsection shall not be added by the retailer as a separate charge or line item on any sales slip, invoice, receipt, other statement, or memorandum of the price paid by a customer.

The tax shall be due and payable on a quarterly basis as follows:

The Tax Commissioner may require such forms, Enr CS for CS for SB 679 schedules, and returns and impose such filing and remittance requirements that are necessary or convenient for the efficient administration of taxes imposed by this subsection.(2)subsection. The taxes imposed by this subsection shall be paid by the person or entity permitted by the commissioner to the Tax Commissioner by electronic funds transfer unless electronic payment is prohibited by state or federal law.

Tax(2) returnsThe requiredtaxes imposed by this subsection shall be filedpaid electronicallyby with the Taxperson Commissioner.(4)or (3)entity Thepermitted Westby Virginiathe usecommissioner taxto shallthe beTax collectedCommissioner fromby sellerselectronic andfunds marketplacetransfer facilitatorsunless aselectronic definedpayment inis §11-15A-1prohibited ofby thisstate code, and referrers engaged in making sales, facilitating sales, marketing, or referringfederal sellerslaw. or purchasers for the purpose of making or furthering retail sales of hemp-derived cannabinoid products into this state.

 SuchTax sellers,returns marketplacerequired facilitators,by andthis referrerssubsection areshall subjectbe tofiled theelectronically taxationwith andthe otherTax requirementsCommissioner. of §11-15A-1 et seq.

(3) The West Virginia use tax shall be collected from sellers and marketplace facilitators as defined in §11-15A-1 of this code, and referrers engaged in making sales, facilitating sales, marketing, or referring sellers or purchasers for the purpose of making or furthering retail sales of hemp-derived cannabinoid products into this state.

Such sellers, marketplace facilitators, and referrers are subject to the taxation and other requirements of §11-15A-1 et seq.

Application of §11-15A-6a and §11-15A-6b of this code shall not be limited to the thresholds specified in subsection §11-15A-6b(e) of this code but in the interest of protecting the safety, welfare, and well-being of West Virginia citizens and residents, West Virginia nexus and jurisdiction shall attach with relation to any such activity for the purpose of making or furthering retail sales of hemp-derived cannabinoid products, into this state.(5)state. (4) If any retailer does not renew its permit, relinquishes its permit, has said its permit to operate suspended or revoked, or otherwise ceases selling hemp-derived cannabinoid products, then any tax, additions to tax, penalties, and interest imposed by this section and by §11-10-1 et seq.

(4) If any retailer does not renew its permit, relinquishes its permit, has its permit to operate suspended or revoked, or otherwise ceases selling hemp-derived cannabinoid products, then any tax, additions to tax, penalties, and interest imposed by this section and by §11-10-1 et seq.

The unpaid amount of any tax is to be considered a lien.(6)lien. (5) All money received from the privilege tax imposed under this subsection section, including any interest and additions to tax paid under §11-10-1 et seq.

of(5) thisAll code,money lessreceived thefrom amount of any refunds, and less the feeprivilege retained by the Tax Commissioner pursuant to §11-10-27 of this code, shall be deposited into the Agricultural Fees Fund created by §19-1-4c of this code.(7) (6) Persons or entities subject to the tax imposed byunder this subsectionsection, sectionincluding shall provide to the Tax Commissioner any informationinterest requiredand byadditions the Tax Commissioner to administer, collect, and enforce the tax imposedpaid byunder this subsection section.(8) (7) Notwithstanding any provision of §11-10-1 et seq.

of this codecode, orless of this section article to the contrary,amount the Tax Commissioner, the Alcohol Beverage Control Administration Commissioner, and the commissioner shall may enter into written agreements pursuant to which the Tax Commissioner shall may disclose to designated employees of theany departmentEnr AlcoholCS Beveragefor ControlCS Administration Commissioner or the commissioner, or both, whether a particular retailer or permittee, or applicant for aSB permit,679 isrefunds, inand goodless standing with the Taxfee Commissioner,retained andby the commissioner of Agriculture shall may disclose to designated employees of the Tax Commissioner or the Alcohol Beverage Control Administration Commissioner, or both, information a retailer or permittee, or applicant for a permit, provides to the commissioner pursuant to this§11-10-27 code and the Alcohol Beverage Control Administration Commissioner may disclose to designated employees of thethis Taxcode, Commissioner,shall orbe thedeposited commissioner,into or both, information a retailer or permittee, or applicant for a permit, provides to the AlcoholAgricultural BeverageFees ControlFund Administrationcreated Commissionerby pursuant§19-1-4c toof this code.

(6) Persons or entities subject to the tax imposed by this section shall provide to the Tax Commissioner any information required by the Tax Commissioner to administer, collect, and enforce the tax imposed by this section.

(7) Notwithstanding any provision of §11-10-1 et seq.

of this code or of this article to the contrary, the Tax Commissioner, the Alcohol Beverage Control Administration Commissioner, and the commissioner may enter into written agreements pursuant to which the Tax Commissioner may disclose to designated employees of the Alcohol Beverage Control Administration Commissioner or the commissioner, or both, whether a particular retailer or permittee, or applicant for a permit, is in good standing with the Tax Commissioner, and the commissioner may disclose to designated employees of the Tax Commissioner or the Alcohol Beverage Control Administration Commissioner, or both, information a retailer or permittee, or applicant for a permit, provides to the commissioner pursuant to this code and the Alcohol Beverage Control Administration Commissioner may disclose to designated employees of the Tax Commissioner, or the commissioner, or both, information a retailer or permittee, or applicant for a permit, provides to the Alcohol Beverage Control Administration Commissioner pursuant to this code.

To the extent feasible, this information should be shared or exchanged electronically to ensure safe destruction, or as necessary, proper file retention practices.(9)practices. (8) The Tax Commissioner may promulgate, in accordance with the provisions of §29A-3-1 et seq.

of(8) thisThe code, any necessary legislative rules, including emergency rules, as the Tax Commissioner considersmay necessarypromulgate, for the efficient administration of taxes imposed by this subsection.(A) Funds from the tax imposed by the provisions of subdivision (1) of this subsection, less the fee retained by the Tax Commissioner pursuant to §11-10-27 of this code, and deposited in theaccordance Agriculturalwith Fees Fund, shall be divided and deposited as follows:(i) Sixty-five percent shall remain in the Agriculture Fees Fund for the use of the commissioner for administering and enforcing the provisions of this§29A-3- article;(ii)1 Fiveet percentseq. shall be transferred to the Fight Substance Abuse Fund created by §60A-9-8 of this code;

and(iii)of Thirtythis percentcode, shallany benecessary depositedlegislative inrules, theincluding Alcoholemergency Beveragerules, Controlas Enforcement Fund established by the provisionsTax ofCommissioner §60-7-13considers ofnecessary thisfor code.(B)the Notwithstandingefficient anyadministration provisionof intaxes §11-9-1imposed etby seq.this subsection.

ofEnr thisCS codefor toCS thefor contrary,SB and679 as(A) relevantFunds tofrom the tax imposed by §16A-9-1the provisions of thissubdivision code(1) of this section,subsection, less the Westfee Virginiaretained by the Tax CrimesCommissioner andpursuant Penaltiesto Act§11-10-27 setof forththis code, and deposited in §11-9-1the etAgricultural seq.Fees Fund, shall be divided and deposited as follows:

of(i) thisSixty-five codepercent shall applyremain within like effect as if the saidAgriculture WestFees VirginiaFund Taxfor Crimesthe anduse Penaltiesof Actthe werecommissioner applicablefor onlyadministering toand enforcing the taxprovisions imposedof bythis §16A-9-1article; et seq.

of(ii) thisFive codepercent thisshall sectionbe andtransferred wereto setthe forthFight inSubstance extensoAbuse inFund §16A-9-1created etby seq.§60A- 9-8 of this code;

ofand this(iii) codeThirty thispercent section.(C)shall Notwithstandingbe anydeposited provisionin the Alcohol Beverage Control Enforcement Fund established by the provisions of §11-10-1§60-7-13 etof seq.this code.

(B) Notwithstanding any provision in §11-9-1 et seq.

of this code to the contrary, and as relevant to the tax imposed by this section, the West Virginia Tax Crimes and Penalties Act set forth in §11-9-1 et seq.

of this code shall apply with like effect as if the said West Virginia Tax Crimes and Penalties Act were applicable only to the tax imposed by this section and were set forth in extenso in this section.

(C) Notwithstanding any provision of §11-10-1 et seq.

of this code applies to the tax imposed by §16A-9-1this etsection seq.with like effect as if the said West Virginia Tax Procedure and Administration Act were applicable only to the tax imposed by this section and were set forth in extenso in this section.

this(j) sectionThe withprovisions likeof effectthis assection ifrelated theto saidretail Westsales Virginiashall Taxbe Procedureenforced andby Administrationthe Actcommissioner werewith applicablethe onlyassistance toof the taxAlcohol imposedBeverage byControl §16A-9-1Administration etCommissioner. seq.

of(1) thisThe codecommissioner, thisthe sectionTax Commissioner, and werethe setAlcohol forthBeverage inControl extensoAdministration inCommissioner §16A-9-1may etenter seq.into a memorandum or memoranda of understanding to facilitate the enforcement of this section.

ofIn thisaddition code this section.(j) All fees collected pursuant to theany provisionsother ofmemoranda, this subsection shall be deposited with the Stateaforementioned Treasurercommissioners tomay theenter creditinto, ofthey the Agricultural Fees Fund established by the provisions of §19-1-4c of this code for the use of the Commissioner of Agriculture for administering and enforcing the provisions of this article(k)(1) The provisions of this section related to retail sales shall beagree enforced by the commissioner of Agriculture with the assistance of the Alcohol Beverage Control Administration Commissioner.(2) (1) The commissioner of Agriculture, the Tax Commissioner, and the Alcohol Beverage Control Administration Commissioner shall may enter into a memorandum or memoranda of understanding to facilitate the enforcementfollowing: of this section.

In(A) addition to any other memoranda, the aforementioned commissioners may enter into, they shall agree by memorandum to the following:(A) To assist each other in enforcement of this section;(B)section; To assist each other in training and cooperating with State and local law enforcement to develop a state-wide plan for implementing the provisions of this section;(C) To confer among themselves and law enforcement about enforcement of this section on a monthly basis;

and(D)Enr ToCS jointlyfor compileCS afor reportSB to679 be(B) submittedTo toassist theeach Jointother Committeein ontraining Government and Financecooperating onwith orState beforeand Januarylocal 1,law 2025,enforcement as to actionsdevelop undertakena tostate-wide enforceplan thisfor sectionimplementing and the resultsprovisions thereof. (2)of Procedurethis forsection; contested cases.

Any(C) personTo orconfer entityamong seekingthemselves toand contestlaw anenforcement administrativeabout actionenforcement of the commissioner under this articlesection shallon asserta suchmonthly contestationbasis; in writing within 14 days under the provisions of the Administrative Procedures Act set forth in §29A-5-1 et seq.

and (D) To jointly compile a report to be submitted to the Joint Committee on Government and Finance on or before January 1, 2025, as to actions undertaken to enforce this section and the results thereof.

(2) Procedure for contested cases.

Any person or entity seeking to contest an administrative action of the commissioner under this article shall assert such contestation in writing within 14 days under the provisions of the Administrative Procedures Act set forth in §29A- 5-1 et seq.

 (l)(1)(l)(1) Any hemp-derived product found in this state in violation of this article is hereby declared contraband and any property interest in the hemp-derived product is vested in the State of West Virginia and is subject to seizure, forfeiture, and destruction.(2)destruction. Any certified law-enforcement officer in this state is authorized to may enforce the criminal provisions of this section, and enforcement agents of the Alcohol Beverage Control Administration Commissioner are authorized to may enforce the administrative retailer provisions of this section as relating to retail sales.(3) The commissioner shall provide the requisite training necessary to enforce the criminal and administrative provisions of this section.(4) The provisions of amendments to this subsection enacted during the 2024 Regular Legislative Session are effective from passage.(m) Any person who manufactures, processes, distributes, sells, or offers for sale any hemp-derived cannabinoid product in this state without a permit to do so is guilty of a crime.(1) A first violation of this subsection is a misdemeanor, and, upon conviction thereof, a person shall be fined not more than $1,000, confined in jail for not more than one year, or both fined and confined.(2) A second or subsequent violation of this subsection is a felony and, upon conviction thereof, a person shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.(n) Any person who processes, distributes, manufactures, sells, or offers to sell any hemp-derived product knowing or having reason to know that the product has been contaminated with a toxic or illegal substance is guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned in a state correctional facility for not less than two nor more than 10 years, or both fined and imprisoned.(o)(1) Any person who knowingly manufactures, processes, distributes, sells, or offers for sale any hemp-derived cannabinoid product which has not been approved by the commissioner is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $1,000 nor more than $5,000, or confined in jail for not more than one year, or both fined and confined.(2) Notwithstanding the provisions of subdivision (1) of this subsection, a second or subsequent violation of subdivision (1) of this subsection constitutes a felony and any person convicted thereof shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.(p) Any person who knowingly distributes, offers for sale, or sells a contaminated hemp-derived cannabinoid product is guilty of a felony and, upon conviction thereof, shall be fined not less than $10,000 nor more than $25,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.(q) Any person who knowingly distributes or sells hemp-derived cannabinoid product to a person under the age of 21 is guilty of a felony and, upon conviction thereof, shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.

(r)(1)(2) Any personcertified underlaw-enforcement theofficer age of 21 who possesses hemp-derived cannabinoid product is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000, or confined in jail for not more than one year, or both fined and confined.(2) Notwithstanding the provisions of subdivision (1) of this subsection, second and subsequent violations of subdivision (1) of this subsection, constitute a felony, and any person convicted thereof, shall be fined not more than $5,000, and imprisoned in a state correctionalmay facilityenforce for not less than one nor more than three years, or both fined and imprisoned.(s) Administrative sanctions.(1) In the case of any person or entity holding a permit issued by the commissioner under this article charged with any criminal violationprovisions enumeratedof in this section, theand commissioner,enforcement inagents addition to such criminal penalties imposed, may impose administrative sanctions including, but not limited to, permanent revocation of any one or more permits held by the violator,Alcohol revocationBeverage ofControl oneAdministration orCommissioner moremay permitsenforce held by the violatoradministrative forretailer aprovisions period of timethis tosection beas determinedrelating by the commissioner, suspension of any one or more permits held by the violator for a period of time to beretail determinedsales. by the commissioner, a fine or fines to any one or more permits held by the violator not to exceed $1,000 per each violation as determined by the commissioner, or non-issuance of a permit upon application of a violator.

(3) The commissioner shall provide the requisite training necessary to enforce the criminal and administrative provisions of this section.

(4) The amendments to this subsection enacted during the 2024 Regular Legislative Session are effective from passage.

(m) Any person who manufactures, processes, distributes, sells, or offers for sale any hemp-derived cannabinoid product in this state without a permit to do so is guilty of a crime.

Enr CS for CS for SB 679 (1) A first violation of this subsection is a misdemeanor and, upon conviction thereof, a person shall be fined not more than $1,000, confined in jail for not more than one year, or both fined and confined.

(2) A second or subsequent violation of this subsection is a felony and, upon conviction thereof, a person shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.

(n) Any person who processes, distributes, manufactures, sells, or offers to sell any hemp- derived product knowing or having reason to know that the product has been contaminated with a toxic or illegal substance is guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned in a state correctional facility for not less than two nor more than 10 years, or both fined and imprisoned.

(o)(1) Any person who knowingly manufactures, processes, distributes, sells, or offers for sale any hemp-derived cannabinoid product which has not been approved by the commissioner is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $1,000 nor more than $5,000, or confined in jail for not more than one year, or both fined and confined.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, a second or subsequent violation of subdivision (1) of this subsection constitutes a felony and any person convicted thereof shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.

(p) Any person who knowingly distributes, offers for sale, or sells a contaminated hemp- derived cannabinoid product is guilty of a felony and, upon conviction thereof, shall be fined not less than $10,000 nor more than $25,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.

(q) Any person who knowingly distributes or sells hemp-derived cannabinoid product to a person under the age of 21 is guilty of a felony and, upon conviction thereof, shall be fined not Enr CS for CS for SB 679 more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.

(r)(1) Any person under the age of 21 who possesses hemp-derived cannabinoid product is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000, or confined in jail for not more than one year, or both fined and confined.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, second and subsequent violations of subdivision (1) of this subsection constitute a felony, and any person convicted thereof shall be fined not more than $5,000, and imprisoned in a state correctional facility for not less than one nor more than three years, or both fined and imprisoned.

(s) Administrative sanctions.

(1) In the case of any person or entity holding a permit issued by the commissioner under this article charged with any criminal violation enumerated in this section, the commissioner, in addition to such criminal penalties imposed, may impose administrative sanctions including, but not limited to, permanent revocation of any one or more permits held by the violator, revocation of one or more permits held by the violator for a period of time to be determined by the commissioner, suspension of any one or more permits held by the violator for a period of time to be determined by the commissioner, a fine or fines to any one or more permits held by the violator not to exceed $1,000 per each violation as determined by the commissioner, or non-issuance of a permit upon application of a violator.

(2) The commissioner may impose the administrative sanctions in subdivision (1) of this subsection upon any person or entity under indictment for any of the criminal violations during, and during the pendency, of a criminal trial therefor.(t)therefor. Nothing in this article shall prohibit an authorized enforcement agent of the Alcohol Beverage Control Administration Commissioner or a person who is at least 18 years of age from purchasing or possessing hemp-derived cannabinoid products when he or she is acting upon the request of, or under the direction and control of, any member of a state, federal, or local law-enforcement agency or the Alcohol Beverage Control Administration Commissioner while the agency is conducting an investigation or other activity relating to the criminal or administrative enforcement of this section.

Enr CS for CS for SB 679 (t) Nothing in this article shall prohibit an authorized enforcement agent of the Alcohol Beverage Control Administration Commissioner or a person who is at least 18 years of age from purchasing or possessing hemp-derived cannabinoid products when he or she is acting upon the request of, or under the direction and control of, any member of a state, federal, or local law- enforcement agency or the Alcohol Beverage Control Administration Commissioner while the agency is conducting an investigation or other activity relating to the criminal or administrative enforcement of this section.

SELECT PLANT-BASED PRODUCT DERIVATIVES REGULATION ACT:

(a)This article shall be known as the Select Plant-Based Product Derivatives Regulation Act:

 (1)(1) "Alcohol Beverage Control Administration Commissioner" means the West Virginia Alcohol Beverage Control Administration Commissioner or his or her designee.(2)designee. "The "Commissioner" means the Commissioner of Agriculture or his or her designee.(3) "Contaminated" means made impure and unsafe by biological, chemical, or physical additives.(4) "Department" or "Department of Agriculture" means the West Virginia Department of Agriculture.(5) "Kratom" means a psychoactive preparation that is composed of the crushed or powdered dried leaves of the mitragyna speciosa, a yellow-flowered tropical tree which contains the alkaloids mitragynine and 7-hydroxymitragynine.(6) "Kratom product" means a food product, food ingredient, dietary agreement ingredient, dietary supplement, or beverage intended or marketed for human consumption containing any part of the leaf of the plant mitragyna speciosa.(7) "Manufacture" "Grower" means a person or entity which grows kratom for commercial purposes.(8) "Processor" or "manufacturer" means a person or entity that processes, distributes, sells, or offers for sale, kratom or kratom products in this State on a wholesale basis to a retailer compounds, or converts plant material from mitragyna speciosa into a kratom product.

This(2) also"Commissioner" includesmeans furtherthe processing,Commissioner compounding, converting, or repackaging of existingAgriculture kratom products.(9) "Retailer" or "seller"his means a person or entityher thatdesignee. distributes, offers for sale, or sells kratom or kratom products to persons for personal consumption.

Enr CS for CS for SB 679 (3) "Contaminated" means made impure and unsafe by biological, chemical, or physical additives.

(4) "Department" or "Department of Agriculture" means the West Virginia Department of Agriculture.

(5) "Kratom" means a psychoactive preparation that is composed of the crushed or powdered dried leaves of the mitragyna speciosa, a lowered tropical tree which contains the alkaloids mitragynine and 7-hydroxymitragynine.

(6) "Kratom product" means a food product, food ingredient, dietary ingredient, dietary supplement, or beverage intended or marketed for human consumption containing any part of the leaf of the plant mitragyna speciosa.

(7) "Grower" means a person or entity which grows kratom for commercial purposes.

(8) "Processor" or "manufacturer" means a person or entity that processes, compounds, or converts plant material from mitragyna speciosa into a kratom product.

This also includes further processing, compounding, converting, or repackaging of existing kratom products.

(9) "Retailer" or "seller" means a person or entity that distributes, offers for sale, or sells kratom or kratom products to persons for personal consumption.

 (a)(a) Any person manufacturing, processing, distributing, offering for sale, or selling any kratom or kratom products in this state shall have a permit issued by the commissioner and be otherwise authorized to do business in this state.

The commissioner may issue permitsmanufacturer, forprocessor, manufacturers,distributor, processors, and retailers.retailer permits.

manufacturer, processor, distributor, and retailer permits.

of this code.(b)code. Persons engaged in manufacturing, processing, distribution, or sale of kratom or kratom products in this State must obtain a West Virginia business registration certificate as specified in §11-12-1 et seq.

Enr CS for CS for SB 679 (b) Persons engaged in manufacturing, processing, distribution, or sale of kratom or kratom products in this State must obtain a West Virginia business registration certificate as specified in §11-12-1 et seq.

 (d)(d) The Tax Commissioner may place a notation on the business registration certificate showing the status of the certificate holder as a person or entity holding a permit from the commissioner pursuant to this article.(e) The commissioner shall keep a list of all persons and entities that have been issued permits pursuant to this article.

Such(e) list shall be public information and shall be published initially on or before June 30, 2024, by the commissioner on its website from time to time so as to reflect a current listing.(f) The commissioner shall keep a list of anyall persons orand entities that have been subjectissued topermits apursuant permit, revocation, withdrawal, suspension, non-renewal, or other process whereby the person or entity has ceased to be a permit holder in good standing with the commissioner.(g) The commissioner shall keep a list of all kratom and kratom products that have been approved for sale or distribution in this State.article.

§19-12F-7.(f) The commissioner shall keep a list of any persons or entities that have been subject to a permit, revocation, withdrawal, suspension, non-renewal, or other process whereby the person or entity has ceased to be a permit holder in good standing with the commissioner.

(g) The commissioner shall keep a list of all kratom and kratom products that have been approved for sale or distribution in this State.

Such list shall be public information and shall be published initially on or before June 30, 2024, by the commissioner on its website from time to time so as to reflect a current listing.

Enr CS for CS for SB 679 §19-12F-7.

 (a)(a) For the privilege of engaging or continuing within this state in the business of the retail sale of kratom or kratom products, there is hereby levied upon and collected from every person exercising the privilege a privilege tax equal to (b) The rate of tax imposed by this subsection is 11 percent 11 percent of the retail sales price of kratom or kratom products sold during the reporting period.

Such tax is imposed in addition to all other applicable taxes.(b)taxes. The tax imposed by this article shall not be added by the retailer as a separate charge or line item on any sales slip, invoice, receipt, other statement, or memorandum of the price paid by a customer.

(c)(b) The tax imposed by this article shall not be isadded dueby andthe payableretailer onas a quarterlyseparate basischarge asor follows:line item on any sales slip, invoice, receipt, other statement, or memorandum of the price paid by a customer.

on(c) theThe 20thtax dayis ofdue January, April, July, and Octoberpayable foron thea precedingquarterly calendarbasis quarter.as follows:

On the 20th day of January, April, July, and October for the preceding calendar quarter.

The Tax Commissioner may require such forms, schedules, and returns and impose such filing and remittance requirements that are necessary or convenient for the efficient administration of taxes imposed by this subsection.(d)(1)subsection. The taxes imposed by this subsection shall be paid to the Tax Commissioner by electronic funds transfer unless electronic payment is prohibited by state or federal law.

(d)(1) The taxes imposed by this subsection shall be paid to the Tax Commissioner by electronic funds transfer unless electronic payment is prohibited by state or federal law.

 TheThe sellers, marketplace facilitators, and referrers are subject to the taxation and other requirements of §11-15A-1 et seq.

Application of §11-15A-6a and §11-15A-6b of this code shall not be limited to the thresholds specified in subsection §11-15A-6ba(e) of this code, but in the interest of protecting the safety, welfare, and well-being of West Virginia citizens and residents, West Virginia nexus and Enr CS for CS for SB 679 jurisdiction shall attach with relation to any such activity for the purpose of making or furthering retail sales of kratom and kratom products into this state.(e)state. If any retailer does not renew its permit, relinquishes its permit, has said its permit suspended or revoked, or otherwise ceases selling kratom and kratom products, then any tax, additions to tax, penalties, and interest imposed by this section and by §11-10-1 et seq.

(e) If any retailer does not renew its permit, relinquishes its permit, has its permit suspended or revoked, or otherwise ceases selling kratom and kratom products, then any tax, additions to tax, penalties, and interest imposed by this section and by §11-10-1 et seq.

The unpaid amount of any tax is to be considered a lien.(f)lien. All money received from the privilege tax imposed under this subsection section, including any interest and additions to tax paid under §11-10-1 et seq.

of(f) thisAll code,money lessreceived thefrom amount of any refunds, and less the feeprivilege retained by the Tax Commissioner pursuant to §11-10-27 of this code, shall be deposited into the Agricultural Fees Fund created by §19-1-4c of this code.(g) Persons or entities subject to the tax imposed byunder this subsectionsection, shallincluding provide to the Tax Commissioner any informationinterest requiredand byadditions the Tax Commissioner to administer, collect, and enforce the tax imposedpaid byunder this subsection.(h) Notwithstanding any provision of §11-10-1 et seq.

of this codecode, orless of this section article to the contrary,amount theof Taxany Commissioner,refunds, the Alcohol Beverage Control Administration Commissioner, and theless commissioner of Agriculture shall may enter into written agreements pursuant to which the Taxfee Commissionerretained shallby may disclose to designated employees of the department Alcohol Beverage Control Administration Commissioner or commissioner, or both, whether a particular retailer or permittee, or applicant for a permit, is in good standing with the Tax Commissioner, and the commissioner of Agriculture shall may disclose to designated employees of the Tax Commissioner orpursuant the Alcohol Beverage Control Administration Commissioner, or both, information a retailer or permittee, or applicant for a permit, provides to the§11-10-27 commissioner of Agriculture pursuant to this codecode, andshall thebe Alcoholdeposited Beverageinto Control Administration Commissioner may disclose to designated employees of the TaxAgricultural Commissioner,Fees orFund thecreated commissioner,by or§19-1-4c both,of information a retailer or permittee, or applicant for a permit, provides to the Alcohol Beverage Control Administration Commissioner pursuant to this code.

(g) Persons or entities subject to the tax imposed by this subsection shall provide to the Tax Commissioner any information required by the Tax Commissioner to administer, collect, and enforce the tax imposed by this subsection.

(h) Notwithstanding any provision of §11-10-1 et seq.

of this code or of this article to the contrary, the Tax Commissioner, the Alcohol Beverage Control Administration Commissioner, and the commissioner may enter into written agreements pursuant to which the Tax Commissioner may disclose to designated employees of the Alcohol Beverage Control Administration Commissioner or commissioner, or both, whether a particular retailer or permittee, or applicant for a permit, is in good standing with the Tax Commissioner, and the commissioner may disclose to designated employees of the Tax Commissioner or the Alcohol Beverage Control Administration Commissioner, or both, information a retailer or permittee, or applicant for a permit, provides to the commissioner pursuant to this code and the Alcohol Beverage Control Administration Commissioner may disclose to designated employees of the Tax Commissioner, Enr CS for CS for SB 679 or the commissioner, or both, information a retailer or permittee, or applicant for a permit, provides to the Alcohol Beverage Control Administration Commissioner pursuant to this code.

To the extent feasible, this information should be shared or exchanged electronically to ensure safe destruction, or as necessary, proper file retention practices.(i)practices. The Tax Commissioner may promulgate, in accordance with the provisions of §29A-3-1 et seq.

of(i) thisThe code, any necessary legislative rules as the Tax Commissioner determinesmay necessarypromulgate, to the efficient administration of taxes imposed by this subsection.(1) Funds from the tax imposed by the provisions of this subsection article, less the fee retained by the Tax Commissioner pursuant to §11-10-27 of this code, and deposited into the Agricultural Fees Fund shall be divided and deposited as follows:(2) Sixty-five percent shall remain in theaccordance Agriculturewith Fees Fund for the use of the commissioner in administering and enforcing the provisions of this§29A-3- article;(3)1 Fiveet percentseq. shall be transferred to the Fight Substance Abuse Fund created by §60A-9-8 of this code;

and(4)of Thirtythis percentcode, shallany benecessary depositedlegislative inrules the AlcoholTax BeverageCommissioner Controldetermines Enforcementnecessary Fundto established by the provisionsefficient ofadministration §60-7-13 of thistaxes code.(j)imposed Notwithstandingby anythis provisionsubsection. in §11-9-1 et seq.

of(1) thisFunds codefrom tothe tax imposed by the contrary,provisions andof asthis relevantarticle, toless the taxfee imposedretained by §16A-9-1the thisTax article,Commissioner thepursuant Westto Virginia§11-10-27 Taxof Crimesthis code, and Penaltiesdeposited Actinto setthe forthAgricultural inFees §11-9-1Fund etshall seq.be divided and deposited as follows:

of(2) thisSixty-five codepercent shall applyremain within likethe effectAgriculture asFees ifFund for the saiduse of the Westcommissioner Virginiain Taxadministering Crimes and Penaltiesenforcing Act were applicable only to the taxprovisions imposedof bythis §16A-9-1article; et seq.

of(3) thisFive codepercent thisshall articlebe andtransferred wereto setthe forthFight inSubstance extensoAbuse inFund §16A-9-1created etby seq.§60A- 9-8 of this code;

ofand this(4) codeThirty thispercent article.(k)shall Notwithstandingbe anydeposited provisionin the Alcohol Beverage Control Enforcement Fund established by the provisions of §11-10-1§60-7-13 etof seq.this code.

(j) Notwithstanding any provision in §11-9-1 et seq.

of this code to the contrary, and as relevant to the tax imposed by this article, the West Virginia Tax Crimes and Penalties Act set forth in §11-9-1 et seq.

of this code shall apply with like effect as if the said West Virginia Tax Crimes and Penalties Act were applicable only to the tax imposed by this article and were set forth in extenso in this article.

(k) Notwithstanding any provision of §11-10-1 et seq.

of this code, applies to the tax imposed by §16A-9-1this etarticle seq.with like effect as if the Enr CS for CS for SB 679 said West Virginia Tax Procedure and Administration Act were applicable only to the tax imposed by this article and were set forth in extenso in this article.

this§19-12F-8. article with like effect as if the said West Virginia Tax Procedure and Administration Act were applicable only to the tax imposed by §16A-9-1 et seq.

ofApplication this code this article and wereregistration setfees. forth in extenso in §16A-9-1 et seq.

of(a) thisApplicants codefor thiskratom article.(l)and Allkratom feesmanufacturer, collectedprocessor, pursuantdistributor, toor theretailer provisionspermits shall pay a non-refundable application fee of subsection$1,500 which shall be deposited with the State Treasurer to the credit of the Agricultural Fees Fund established by the provisions of §19-1-4c§19- 1-4c of this code for the use of the Commissionercommissioner infor administering and enforcing the provisions of this article.

§19-12F-8(b) ApplicationProcessors, manufacturers, distributors, and registrationretailer fees.permit holders shall pay an annual fee of $300 which shall be deposited with the State Treasurer to the credit of the Agricultural Fees Fund established by the provisions of §19-1-4c of this code for the use of the commissioner in administering and enforcing the provisions of this article.

 (a)(c) Applicants for kratom and kratom manufacturer, processor, distributor, or retailer permits shall pay a non-refundable application fee of $1,500 which shall be deposited with the State Treasurer to the credit of the Agricultural Fees Fund established by the provisions of §19-1-4c of this code for the use of the commissioner for administering and enforcing the provisions of this article.(b) Processors, manufacturers, distributors, and retailer permit holders shall pay an annual fee of $300 which shall be deposited with the State Treasurer to the credit of the Agricultural Fees Fund established by the provisions of §19-1-4c of this code for the use of the commissioner in administering and enforcing the provisions of this article.(c) The business activity subject to application, registration, and permitting under this article shall be treated as separate and distinct from manufacturing, processing, distribution, or sale of hemp-derived cannabinoid products, or of hemp addressed and administered under §19-12E-1§19- 12E-1 et seq.

of this code.(d)code. Persons engaged in the manufacturing, processing, distribution, or sale of kratom and kratom products in this state must obtain a West Virginia business registration certificate as specified in §11-12-1 et seq.

(d) Persons engaged in the manufacturing, processing, distribution, or sale of kratom and kratom products in this state must obtain a West Virginia business registration certificate as specified in §11-12-1 et seq.

Persons located outside of this state that are engaged in distribution or sale of kratom and kratom products across state lines into this state Enr CS for CS for SB 679 must obtain a West Virginia business registration certificate as specified in §11-12-1 et seq.

 (f)(f) The Tax Commissioner may place a notation on the business registration certificate showing the status of the certificate holder as a person or entity holding a permit from the commissioner pursuant to this article.

  (g)(g) The commissioner shall keep a list of all persons and entities that have been issued permits pursuant to this article.

Such list shall be public information and shall be published initially on or before June 30, 2024, by the commissioner on its website from time to time so as to reflect a current listing.(h) The commissioner shall keep a list of any persons or entities that have been subject to a permit revocation, withdrawal, suspension, non-renewal, or other process whereby the person or entity has ceased to be a permit holder in good standing with the commissioner.(i) The commissioner shall keep a list of all kratom and kratom products that have been approved for sale or distribution in this state.

(h) The commissioner shall keep a list of any persons or entities that have been subject to a permit revocation, withdrawal, suspension, non-renewal, or other process whereby the person or entity has ceased to be a permit holder in good standing with the commissioner.

(i) The commissioner shall keep a list of all kratom and kratom products that have been approved for sale or distribution in this state.

Such list shall be public information and shall be published initially on or before June 30, 2024, by the commissioner on its website from time to time so as to reflect a current listing.

 (a)(a) The provisions of article related to retail sales shall be enforced by the commissioner with the assistance of the Alcohol Beverage Control Administration Commissioner.(b)Commissioner. Pursuant to the labeling requirements under section 9a of this article, the commissioner and the Alcohol Beverage Control Administration Commissioner shall enter into a memorandum or memoranda of understanding to facilitate enforcement of this article.(c) Procedure for contested cases.

Any(b) personPursuant orto entitythe seekinglabeling torequirements contestunder ansection administrative9a action of this article, the commissioner underand thisthe articleAlcohol shallBeverage bringControl suchAdministration contestationCommissioner inshall writingenter withininto 14a daysmemorandum underor thememoranda provisions of theunderstanding Administrativeto Proceduresfacilitate Actenforcement setof forththis inarticle. §29A-5-1 et seq.

(c) Procedure for contested cases.

Any person or entity seeking to contest an administrative action of the commissioner under this article shall bring such contestation in writing within 14 days under the provisions of the Administrative Procedures Act set forth in §29A-5-1 et Enr CS for CS for SB 679 seq.

(d) In addition to any other memoranda, the commissioner, Commissioner of the  AlcoholAlcohol Beverage Control Administration, and the Tax Commissioner may enter into, they shall agree by memorandum to the following:(1)following: To assist each other in enforcement of this article;(2) To assist each other in training and cooperating with State and local law enforcement to develop a state-wide plan for implementing the provisions of this  article;(3) To confer among themselves and law enforcement about enforcement of this article on a monthly basis;

and(4)(1) To jointlyassist compileeach aother reportin toenforcement beof submitted to the Joint Committee on Government and Finance on or before January 1, 2025, as to actions undertaken to enforce this articlearticle; and the results thereof.

(2) To assist each other in training and cooperating with State and local law enforcement to develop a state-wide plan for implementing the provisions of this article;

(3) To confer among themselves and law enforcement about enforcement of this article on a monthly basis;

and (4) To jointly compile a report to be submitted to the Joint Committee on Government and Finance on or before January 1, 2025, as to actions undertaken to enforce this article and the results thereof.

(a) The commissioner shall review labels to be used on kratom and kratom products to be sold in this state.(b)state. The commissioner may require and prescribe such labeling as the commissioner may determine to be necessary and appropriate for kratom and kratom products to be sold to the final consumer in this state.(c) Kratom and kratom products may not be sold to the final consumer in this state without an approved label.

(b) The commissioner may require and prescribe such labeling as the commissioner may determine to be necessary and appropriate for kratom and kratom products to be sold to the final consumer in this state.

(c) Kratom and kratom products may not be sold to the final consumer in this state without an approved label.

(a) Any person who manufactures, processes, distributes, sells, or offers for sale any kratom or kratom product in this state without a permit is guilty of a crime.(1)crime. A first violation of this subsection is a misdemeanor and, upon conviction thereof, a person shall be fined not more than $1,000, confined in jail for not more than one year, or both fined and confined.(2) A second or subsequent violation of this subsection is a felony and, upon conviction thereof, a person shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.(b) Any person who manufactures, processes, distributes, sells, or offers to sell any kratom or kratom product knowing or having reason to know that the product has been contaminated with a toxic or illegal substance is guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned in a state correctional facility for not less than two nor more than 10 years, or both fined and imprisoned.(c)(1) Any person who knowingly manufactures, processes, distributes, sells, or offers for sale any kratom or kratom product which has not been approved by the commissioner is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $1,000 nor more than $5,000, or confined in jail for not more than one year, or both fined and confined.(2) Notwithstanding the provisions of subdivision (1) of this subsection, a second or subsequent violation of subdivision (1) of this subsection constitutes a felony and any person convicted thereof shall be fined not more than $5,000 or imprisoned for not less than one nor more than five years, or both fined and imprisoned.(d) Any person who knowingly manufactures, distributes, offers for sale, or sells contaminated kratom or kratom product is guilty of a felony and, upon conviction thereof, shall be fined not less than $10,000 nor more than $25,000, or imprisoned for not less than one nor more than five years, or both fined and imprisoned.(e) Any person who knowingly distributes or sells a kratom or a kratom product to a person under the age of 21 is guilty of a felony and, upon conviction thereof, shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.(f) (1) Any person under the age of 21 who possesses kratom or a kratom product is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000, or confined in jail for not more than one year, or both fined and confined.(2) Notwithstanding the provisions of subdivision (1) of this subsection, second and subsequent violations of subdivision (1) of this subsection constitute a felony and any person convicted thereof, shall be fined not more than $5,000, and imprisoned in a state correctional facility for not less than one nor more than three years, or both fined and imprisoned.(g) Administrative sanctions.(1) In the case of any person or entity holding a permit issued by the commissioner under this article charged with any criminal violation enumerated in this section, in addition to such criminal penalties imposed, the commissioner may impose administrative sanctions including, but not limited to, permanent revocation of any one or more permits held by the violator, revocation of one or more permits held by the violator for a period of time to be determined by the commissioner, suspension of any one or more permits held by the violator for a period of time to be determined by the commissioner, fine or fines to any one or more permits held by the violator not to exceed $1,000 per each violation as determined by the commissioner, or non-issuance of a permit upon application of a violator.

Enr CS for CS for SB 679 (1) A first violation of this subsection is a misdemeanor and, upon conviction thereof, a person shall be fined not more than $1,000, confined in jail for not more than one year, or both fined and confined.

(2) A second or subsequent violation of this subsection is a felony and, upon conviction thereof, a person shall be fined not more than $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.

(b) Any person who manufactures, processes, distributes, sells, or offers tosell any kratom or kratom product knowing or having reason to know that the product has been contaminated with a toxic or illegal substance is guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned in a state correctional facility for not less than two nor more than 10 years, or both fined and imprisoned.

(c)(1) Any person who knowingly manufactures, processes, distributes, sells, or offers for sale any kratom or kratom product which has not been approved by the commissioner is guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $1,000 nor more than $5,000, or confined in jail for not more than one year, or both fined and confined.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, a second or subsequent violation of subdivision (1) of this subsection constitutes a felony and any person convicted thereof shall be fined not more than $5,000 or imprisoned for not less than one nor more than five years, or both fined and imprisoned.

(d) Any person who knowingly manufactures, distributes, offers for sale, or sells contaminated kratom or kratom product is guilty of a felony and, upon conviction thereof, shall be fined not less than $10,000 nor more than $25,000, or imprisoned for not less than one nor more than five years, or both fined and imprisoned.

(e) Any person who knowingly distributes or sells kratom or a kratom product to a person under the age of 21 is guilty of a felony and, upon conviction thereof, shall be fined not more than Enr CS for CS for SB 679 $5,000, or imprisoned in a state correctional facility for not less than one nor more than five years, or both fined and imprisoned.

(f) (1) Any person under the age of 21 who possesses kratom or a kratom product is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000, or confined in jail for not more than one year, or both fined and confined.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, second and subsequent violations of subdivision (1) of this subsection constitute a felony and any person convicted thereof shall be fined not more than $5,000, imprisoned in a state correctional facility for not less than one nor more than three years, or both fined and imprisoned.

(g) Administrative sanctions.

(1) In the case of any person or entity holding a permit issued by the commissioner under this article charged with any criminal violation enumerated in this section, in addition to such criminal penalties imposed, the commissioner may impose administrative sanctions including, but not limited to, permanent revocation of any one or more permits held by the violator, revocation of one or more permits held by the violator for a period of time to be determined by the commissioner, suspension of any one or more permits held by the violator for a period of time to be determined by the commissioner, fine or fines to any one or more permits held by the violator not to exceed $1,000 per each violation as determined by the commissioner, or non-issuance of a permit upon application of a violator.

(2) The commissioner may impose the administrative sanctions in subdivision (1) of this subsection upon any person or entity under indictment for any of the criminal violations during, and during the pendency of, a criminal trial therefor.(h)therefor. Nothing in this article prohibits an authorized enforcement agent of the Alcohol Beverage Control Administration Commissioner or a person who is at least 18 years of age from purchasing or possessing kratom products when he or she is acting upon the request of, or under the direction and control of any member of a state, federal, or local law-enforcement agency or the Alcohol Beverage Control Administration Commissioner while the agency is conducting an investigation or other activity relating to the criminal or administrative enforcement of this article.

(h) Nothing in this article prohibits an authorized enforcement agent of the Alcohol Beverage Control Administration Commissioner or a person who is at least 18 years of age from Enr CS for CS for SB 679 purchasing or possessing kratom products when he or she is acting upon the request of, or under the direction and control of any member of a state, federal, or local law-enforcement agency or the Alcohol Beverage Control Administration Commissioner while the agency is conducting an investigation or other activity relating to the criminal or administrative enforcement of this article.

StateSTATE controlCONTROL ofOF alcoholicALCOHOLIC liquorsLIQUORS. ARTICLE 7.

ARTICLE 7.

 (a)(a) Upon a determination by the commissioner that a licensee has:

or (iii) violated any rule or order promulgated by the commissioner, the commissioner may impose any one or a combination of the following sanctions:(1)sanctions: Revoke the licensee's license;

(2)(1) SuspendRevoke the licensee's license;(3)license; Place the licensee on probationary status for a period not to exceed 12 months;

and(4)(2) ImposeSuspend a monetary penalty not to exceed $1,000 for each violation where revocation is not imposed.(b) Any monetary penalty assessed and collected by the commissionerlicensee's shalllicense; be transmitted to the State Treasurer for deposit into the State Treasury to the credit of a special revenue fund designated the Alcohol Beverage Control Enforcement Fund, which is hereby continued.

(3) Place the licensee on probationary status for a period not to exceed 12 months;

and (4) Impose a monetary penalty not to exceed $1,000 for each violation where revocation is not imposed.

(b) Any monetary penalty assessed and collected by the commissioner shall be transmitted to the State Treasurer for deposit into the State Treasury to the credit of a special revenue fund designated the Alcohol Beverage Control Enforcement Fund, which is hereby continued.

of this code, hemp-derived cannabinoids as set forth in §19-12E-12§19- Enr CS for CS for SB 679 12E-12 of this code, and kratom as set forth in §19-12F-1 et seq.

and The Alcohol Beverage Control Enforcement Fund shall not be treated by the State Treasurer or State Auditor as any part of the general revenue of the state state.

At the end of each fiscal year all funds in the Alcohol Beverage Control Enforcement Fund in excess of $20,000 $200,000 shall be transferred to the General Revenue Fund.(c)Fund. In addition to the grounds for revocation, suspension, or other sanction of a license set forth in §60-7-13(a) of this code, conviction of the licensee of any offense constituting a violation of the laws of this state or of the United States relating to alcoholic liquor, nonintoxicating beer, or gambling shall be mandatory grounds for such sanctioning of a license.

Conviction(c) ofIn theaddition licenseeto of any violation of the lawsgrounds offor thisrevocation, statesuspension, or ofother thesanction Unitedof Statesa relatinglicense toset prostitution,forth orin the§60-7-13(a) sale,of possession,this orcode, distributionconviction of narcoticsthe orlicensee controlledof substances,any shalloffense beconstituting isa mandatoryviolation grounds for revocation of the licensee'slaws licenseof forthis astate periodor of atthe leastUnited oneStates year.(d)relating Ato licenseealcoholic shallliquor, notify,nonintoxicating inbeer, a timely manner, emergency medical services or lawgambling enforcementshall ifbe amandatory licenseegrounds knows,for orsuch hassanctioning reason to know, of a life-threateninglicense. medical emergency occurring on the licensed premises.

InConviction additionof to the groundslicensee forof revocation,any suspension,violation orof otherthe sanctionlaws of a license set forth in this section,state the commissioner may in his or herof discretion,the revoke,United suspend,States orrelating otherwise sanction a licensee for failing to complyprostitution, withor the provisionssale, ofpossession, thisor subsectiondistribution section.(e) If a life-threatening medical emergency occurs on a licensee's private premises requiring notification of emergencynarcotics medical services or lawcontrolled enforcementsubstances, underis §60-7-13(d)mandatory ofgrounds thisfor code,revocation theof licensee shall notify the Alcohollicensee's Beveragelicense Controlfor Administrationa withinperiod 48 hours of theat emergency’sleast occurrence.one year.

The(d) commissionerA may in his or her discretion, revoke, suspend, or otherwise sanction a licensee forshall failingnotify, to comply with the 48-hour notification requirement.(f) As used in this section, a life-threateningtimely medicalmanner, emergency includes,medical butservices is not limited to, respiratory distress or cessationlaw ofenforcement breathing,if severea chestlicensee pains,knows, shock, uncontrolled bleeding, poisoning, prolonged unconsciousness, overdose, any complaint or observationhas whichreason indicatesto significantknow, headof ora spinal injury, and life-threatening physicalmedical injuryemergency causedoccurring byon a crime of violence against the person occupying or emanating from the licensed premises.   AdoptedRejectedpremises.

In addition to the grounds for revocation, suspension, or other sanction of a license set forth in this section, the commissioner may revoke, suspend, or otherwise sanction a licensee for failing to comply with the provisions of this section.

(e) If a life-threatening medical emergency occurs on a licensee's private premises requiring notification of emergency medical services or law enforcement under §60-7-13(d) of this code, the licensee shall notify the Alcohol Beverage Control Administration within 48 hours of the emergency’s occurrence.

The commissioner may revoke, suspend, or otherwise sanction a licensee for failing to comply with the 48-hour notification requirement.

(f) As used in this section, a life-threatening medical emergency includes, but is not limited to, respiratory distress or cessation of breathing, severe chest pains, shock, uncontrolled bleeding, poisoning, prolonged unconsciousness, overdose, any complaint or observation which Enr CS for CS for SB 679 indicates significant head or spinal injury, and life-threatening physical injury caused by a crime of violence against the person occupying or emanating from the licensed premises.

Enr CS for CS for SB 679 The Clerk of the Senate and the Clerk of the House of Delegates hereby certify that the foregoing bill is correctly enrolled.

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Clerk of the Senate ...............................................................

Clerk of the House of Delegates Originated in the Senate.

In effect from passage.

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President of the Senate ...............................................................

Speaker of the House of Delegates __________ The within is ................................................

this the...........................................

Day of ..........................................................................................................., 2024.

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Governor 29