HB-5439, As Passed House, May 22, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5439

     A bill to authorize the growing and cultivating of industrial

hemp for research purposes; to authorize the receipt and

expenditure of funding for research related to industrial hemp; and

to prescribe the powers and duties of certain state agencies and

officials and colleges and universities in this state.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"industrial hemp research act".

     Sec. 2. As used in this act:

     (a) "Department" means the department of agriculture and rural

development.

     (b) "Fund" means the industrial hemp research fund created in

section 4.

     (c) "Industrial hemp" means the plant Cannabis sativa L. and

any part of the plant, whether growing or not, with a delta-9-

tetrahydrocannabinol concentration of not more than 0.3% on a dry

weight basis.

     Sec. 3. (1) The department or a college or university in this

state may grow or cultivate, or both, industrial hemp for purposes

of research conducted under an agricultural pilot program or other

agricultural or academic research project.

     (2) The department or a college or university that transports

industrial hemp as part of a research project authorized under this

act shall include along with a shipment of industrial hemp a letter

on the department's or the college's or university's letterhead

that provides notice that the shipment includes industrial hemp

authorized under the industrial hemp research act.

     (3) A college or university in this state may receive direct

grants from the federal government or any other source for the

purpose of conducting research authorized under this act.

     Sec. 4. (1) The industrial hemp research fund is created

within the state treasury.

     (2) The state treasurer may receive money or other assets from

any source for deposit into the fund, including federal research

grants. The state treasurer shall direct the investment of the

fund. The state treasurer shall credit to the fund interest and

earnings from fund investments.

     (3) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

     (4) The department shall be the administrator of the fund for

auditing purposes.

     (5) The department shall expend money from the fund, upon

appropriation, only for 1 or more of the following purposes:

     (a) Research into growing or cultivating, or both, industrial

hemp.

     (b) Providing grants to colleges or universities in this state

to conduct research into growing or cultivating, or both,

industrial hemp.

     Enacting section 1. This act does not take effect unless House

Bill No. 5440 of the 97th Legislature is enacted into law.