Agriculture - Hemp Manufacturing License - Establishment

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1631*

HOUSE BILL 1631
M4 6lr3630
CF SB 994
By: Delegate Ghrist
Introduced and read first time: February 25, 2026
Assigned to: Rules and Executive Nominations

A BILL ENTITLED

AN ACT concerning 1

Agriculture – Hemp Manufacturing License – Establishment 2

FOR the purpose of requiring the State Department of Agriculture to establish a hemp 3
manufacturing license and licensing procedure that authorizes a licensee to engage 4
in certain activities subject to certain penalties ; authorizing a person who holds a 5
hemp manufacturing license to manufacture, possess, store, and transport 6
in–process hemp extract subject to certain criteria; requiring chain of custody 7
documentation from receipt to sale or final destruction; authorizing the Department 8
to require certain testing to verify chain of custody; requiring finished hemp products 9
to be tested and receive a certificate of analysis; providing that lawful possession of 10
hemp or in –process hemp extract is an affirmative defense against certain 11
allegations; requiring the Department to establish a field verification protocol for 12
certain purposes; and generally relating to hemp manufacturing. 13

BY repealing and reenacting, without amendments, 14
Article – Agriculture 15
Section 14–101(a) and (d) and 14–308 16
Annotated Code of Maryland 17
(2016 Replacement Volume and 2025 Supplement) 18

BY repealing and reenacting, with amendments, 19
Article – Agriculture 20
Section 14–101(c) and (e), 14–301, 14–306, and 14–307 21
Annotated Code of Maryland 22
(2016 Replacement Volume and 2025 Supplement) 23

BY adding to 24
Article – Agriculture 25
Section 14–308.1 through 14–308.5 26
Annotated Code of Maryland 27
(2016 Replacement Volume and 2025 Supplement) 28
2 HOUSE BILL 1631

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Agriculture 3

14–101. 4

(a) In this title the following words have the meanings indicated. 5

(c) (1) “Hemp” means the plant Cannabis sativa L. and any part of that plant, 6
including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, 7
whether growing or not, with a delta–9–tetrahydrocannabinol concentration that does not 8
exceed 0.3% on a dry weight basis. 9

(2) “Hemp” does not include any plant or part of a plant intended for a use 10
that is regulated under [Title 13, Subtitle 33 of the Health – General Article] DIVISION 11
III OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE. 12

(d) “Hemp product” means a product derived from hemp produced in accordance 13
with Subtitle 3 of this title. 14

(e) “Independent testing laboratory” has the meaning stated in [§ 13–3301 of the 15
Health – General Article] § 36–101 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 16
ARTICLE. 17

14–301. 18

(A) In this s ubtitle[,] THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20

(B) “CERTIFICATE OF ANALYS IS” MEANS A DOCUMENT ISS UED BY A N 21
INDEPENDENT TESTING LABORATORY THAT CONF IRMS A PRODUCT MEETS ITS 22
SPECIFIC REGULATORY, SAFETY, AND QUALITY STANDARDS. 23

(C) “FULL–SPECTRUM HEMP OIL ” MEANS A HEMP –DERIVED EXTRACT 24
INTENDED FOR USE BY A HUMAN OR ANIMAL THAT: 25

(1) IS PRODUCED FROM HEMP, INCLUDING HEMP FLOWER; AND 26

(2) CONTAINS ONLY NATURALLY OCCURRING CANNABINOIDS AND 27
TERPENES. 28

(D) “IN–PROCESS HEMP EXTRACT” MEANS ANY INTERMEDIATE MATERIAL, 29
DISTILLATE, CRUDE OIL, RESIN, CONCENTRATE, OR OTHER SUBSTANCE THAT IS: 30
HOUSE BILL 1631 3

(1) DERIVED SOLELY FROM HEMP; AND 1

(2) GENERATED DURING THE LAWFUL EXTRACTIO N, REFINEMENT, 2
FORMULATION, OR MANUFACTURING OF HEMP. 3

(E) “Program” means the Hemp Farming Program. 4

(F) “TOTAL THC” MEANS TETRAHYDROCANNABINOLIC ACID (THCA), 5
MULTIPLIED BY 0.877, PLUS DELTA–9 TETRAHYDROCANNABINOL (THC). 6

14–306. 7

(a) The Department shall establish a procedure for licensing [the]: 8

(1) THE production of hemp in accordance with the plan established under 9
§ 14–305 of this subtitle; AND 10

(2) THE MANUFACTURING OF HEMP UNDER THIS SUBTITLE. 11

(b) The Department may set reasonable fees for the issuance and renewal of 12
licenses and other services the Department provides under this subtitle. 13

(c) The Department shall pay all funds collected under this section into the Fund. 14

14–307. 15

The Department shall [adopt]: 16

(1) ADOPT regulations to carry out this subtitle, INCLUDING: 17

(I) A FIELD VERIFICATION PROTOCOL UNDER § 14–308.5 OF 18
THIS SUBTITLE; 19

(II) REGULATIONS PROHIBITING THE COMMINGLING OF HEMP 20
MANUFACTURING AND CA NNABIS MANUFACTURING , EXCEPT AS EXPRESSLY 21
AUTHORIZED BY LAW; 22

(III) THC–CONTENT METRICS FOR FINISHED PRODUCTS THAT: 23

1. SHALL INCLUDE: 24

A. A TOTAL–THC METRIC; AND 25

4 HOUSE BILL 1631

B. UNIT–BASED LIMITS , EXPRESSED AS PER SERVING 1
AND PER PACKAGE , AS NECESSARY TO CLEA RLY DISTINGUISH HEMP RETAIL 2
PRODUCTS FROM CANNAB IS PRODUCTS DISTRIBU TED THROUGH LICENSED 3
DISPENSARIES; AND 4

2. MAY INCLUDE A METRIC FOR: 5

A. DELTA–9 THC; 6

B. OTHER INTOXICATING TETRAHYDROCANNABINOLS; 7
AND 8

C. ISOMERS; AND 9

(IV) A CHAIN OF CUSTODY PROTOCOL UNDER § 14–308.3 OF 10
THIS SUBTITLE; AND 11

(2) AS NEEDED , UPDATE REGULATIONS TO ENSUR E COMPLIANCE 12
WITH FEDERAL LAW. 13

14–308. 14

(a) This section does not apply to an institution of higher education or a person 15
that produces hemp under the Hemp Research Pilot Program in accordance with Subtitle 16
2 of this title. 17

(b) A person may not produce hemp in the State unless the person is licensed by: 18

(1) The Department; or 19

(2) The Secretary of the U.S. Department of Agriculture. 20

14–308.1. 21

(A) THE DEPARTMENT SHALL ESTABLISH A HEMP MANUFACTURING 22
LICENSE. 23

(B) A PERSON MAY NOT ENGAGE IN HEMP MANUFACTURING IN THE STATE 24
UNLESS THE PERSON IS LICENSED BY THE DEPARTMENT. 25

(C) SUBJECT TO THE PROVISIONS OF THIS SUBTITLE , A HEMP 26
MANUFACTURING LICENSE AUTHORIZES A LICENSEE TO: 27

HOUSE BILL 1631 5

(1) RECEIVE HEMP , INCLUDING HEMP FLOWE R, FROM A LICENSED 1
HEMP GROWER OR OTHER LAWFUL SOURCE; 2

(2) EXTRACT AND PROCESS HEMP INTO IN–PROCESS HEMP EXTRACT 3
AND FINISHED HEMP–DERIVED PRODUCTS; 4

(3) POSSESS, STORE, AND TRANSPORT HEMP, IN–PROCESS HEMP 5
EXTRACT, AND HEMP PRODUCTS; AND 6

(4) SELL OR DISTRIBUTE FINISHED HEMP–DERIVED PRODUCTS. 7

14–308.2. 8

(A) A PERSON WHO HOLDS A HEMP MANUFACTURING LICENSE: 9

(1) MAY MANUFACTURE, POSSESS, STORE, AND TRANSPORT 10
IN–PROCESS HEMP EXTRACT IF THE IN–PROCESS HEMP EXTRACT: 11

(I) WAS DERIVED EXCLUSIVELY FROM HEMP THAT , AT THE 12
TIME OF HARVEST OR FIRST LAWFUL TRANSFER INTO MANUFACTURING, MET THE 13
SPECIFICATIONS OF § 14–101 OF THIS TITLE; 14

(II) IS BEING HELD BY OR T RANSPORTED BETWEEN L ICENSED 15
HEMP MANUFACTURERS , REGISTERED LABORATOR IES, OR OTHER ENTITIES 16
AUTHORIZED BY REGULATION; 17

(III) IS CLEARLY LABELED AS “IN PROCESS – NOT FOR RETAIL”; 18
AND 19

(IV) REMAINS WITHIN A LICE NSED CHAIN OF CUSTODY AND IN 20
COMPLIANCE WITH ALL APPLICABLE TRACKING REQUIREMENTS; AND 21

(2) MAY NOT SELL OR DISTR IBUTE FOR RETAIL SALE IN–PROCESS 22
HEMP EXTRACT. 23

(B) A PERSON WHO KNOWINGLY DIVERTS IN–PROCESS HEMP EXTRACT INTO 24
UNLAWFUL COMMERCE IS SUBJECT TO PENALTIES, INCLUDING LICENSE 25
REVOCATION, PRODUCT SEIZURE , AND CIVIL PENALTIES ESTABLISHED BY 26
REGULATION. 27

(C) (1) A HEMP PRODUCT, INCLUDING FULL–SPECTRUM HEMP OIL, MAY 28
BE OFFERED FOR SALE IN THE STATE ONLY IF THE FINAL PACKAGED PRODUCT: 29

6 HOUSE BILL 1631

(I) SATISFIES ALL REQUISITE TESTING REQUIREMENTS; 1

(II) MEETS COMPLIANCE THRE SHOLDS ESTABLISHED BY THE 2
DEPARTMENT; AND 3

(III) COMPLIES WITH ALL LAB ELING, PACKAGING, AND 4
MARKETING REQUIREMENTS UNDER THIS SUBTITLE. 5

(2) A HEMP PRODUCT THAT EX CEEDS THE TOTAL THC CONTENT 6
ESTABLISHED FOR RETAIL SALE UNDER THIS SUBTITLE MAY BE DISTRIBUTED ONLY 7
IN ACCORDANCE WITH DIVISION III OF THE ALCOHOLIC BEVERAGES AND 8
CANNABIS ARTICLE. 9

14–308.3. 10

(A) (1) A HEMP MANUFACTURING LICENSE HOLDER SHALL MAINTAIN 11
CHAIN OF CUSTODY RECORDS THAT ARE SUFFICIENT TO TR ACE HEMP AND 12
HEMP–DERIVED PRODUCTS FRO M RECEIPT THROUGH FI NAL SALE OR 13
DESTRUCTION. 14

(2) CHAIN OF CUSTODY RECORDS MUST INCLUDE THE CERTIFICATE 15
OF ANALYSIS. 16

(B) (1) THE DEPARTMENT MAY REQUIRE LIMITED TESTING OF 17
IN–PROCESS HEMP EXTRACT FOR CHAIN OF CUSTODY VERIFICATION. 18

(2) AN IN –PROCESS HEMP EXTRACT IN COMPLIANCE WITH T HIS 19
SUBTITLE IS NOT REQUIRED TO MEET FINAL RETAIL THC THRESHOLDS. 20

(C) THE DEPARTMENT SHALL ADOP T REGULATIONS FOR CH AIN OF 21
CUSTODY DOCUMENTATIO N, INCLUDING STANDARDS FOR ELECTRONIC 22
SEED–TO–SALE TRACKING. 23

14–308.4. 24

(A) FINISHED HEMP PRODUCT S SHALL BE TESTED BY AN INDEPENDENT 25
TESTING LABORATORY. 26

(B) EACH BATCH OR LOT MUST RECEIVE A CERTIFICATE OF ANALYSIS. 27

14–308.5. 28

HOUSE BILL 1631 7

(A) IN ANY CIVIL OR CRIMI NAL ACTION ALLEGING THE UNLAW FUL 1
POSSESSION, MANUFACTURING, OR TRANSPORT OF CANN ABIS, IT IS AN 2
AFFIRMATIVE DEFENSE THAT: 3

(1) THE SUBSTANCE BEING POSSESSED OR TRANSPO RTED IS HEMP 4
OR IN–PROCESS HEMP EXTRACT; AND 5

(2) THE SUBSTANCE AND POS SESSION, MANUFACTURING, OR 6
TRANSPORT OF THE SUB STANCE ARE LICENSED UNDER AND C OMPLIES WITH THE 7
REQUIREMENTS OF THIS SUBTITLE. 8

(B) A LICENSEE SHALL SUPPO RT AN ASSERTION OF THE AFFIRMATIVE 9
DEFENSE UNDER SUBSECTION (A) OF THIS SECTION BY PRESENTING: 10

(1) CHAIN OF CUSTODY DOCUMENTATION; 11

(2) A CERTIFICATE OF ANALYSIS OR WORK ORDER DOCUMENTATION, 12
AS SPECIFIED BY REGULATION; AND 13

(3) PROOF OF LICENSURE. 14

(C) (1) THE DEPARTMENT SHALL ADOP T A PROTOCOL FOR FIE LD 15
VERIFICATION OF LICENSURE AND CHAIN OF CUSTODY WITHOUT SEIZING THE HEMP 16
OR IN–PROCESS HEMP EXTRACT. 17

(2) HEMP OR IN –PROCESS HEMP EXTRACT MAY BE SEIZED ONLY I N 18
EXIGENT CIRCUMSTANCES. 19

SECTION 2. AND BE IT FURTHER ENACTED, That, on or before October 1, 2026, 20
the State Department of Agriculture shall adopt regulations to implement Section 1 of this 21
Act, including: 22

(1) licensing categories; 23

(2) security requirements; 24

(3) record–keeping requirements; 25

(4) seed–to–sale tracking policies and procedures; 26

(5) sampling and testing standards; 27

(6) packaging and labeling requirements; 28

(7) transportation manifest requirements; 29
8 HOUSE BILL 1631

(8) sanitation requirements; and 1

(9) enforcement policies and procedures. 2

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2026. 4