Read the full stored bill text
5195S.02C
1
SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 993
AN ACT
To repeal section 311.630, RSMo, and to enact in lieu
thereof eleven new sections relating to hemp
businesses, with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 311.630, RSMo, is repealed and eleven
new sections enacted in lieu thereof, to be known as sections
311.630, 312.1000, 312.1005, 312.1010, 312.1015, 312.1020,
312.1025, 312.1030, 312.1035, 312.1037, and 312.1040, to read
as follows:
311.630. 1. The supervisor of alcohol and tobacco
control and employees to be selected and designated as peace
officers by the supervisor of alcohol and tobacco control
are hereby declared to be peace officers of the state of
Missouri, with full power and authority to make arrests and
searches and seizures only for violations of the provisions
of this chapter relating to intoxicating liquors, sections
312.1000 to 312.1040, and sections 407.924 to 407.934
relating to tobacco products, and to serve any process
connected with the enforcement of such laws. The peace
officers so designated shall have been previously appointed
and qualified under the provisions of section 311.620 and
shall be required to hold a valid peace officer license
pursuant to chapter 590.
2. The supervisor of alcohol and tobacco control shall
furnish such peace officers with credentials showing their
authority and a special badge, which they shall carry on
their person at all times while on duty. The names of the
peace officers so designated shall be made a matter of
2
public record in the office of the supervisor of alcohol and
tobacco control.
3. All fees for the arrest and transportation of
persons arrested and for the service of writs and process
shall be the same as provided by law in criminal proceedings
and shall be taxed as costs.
312.1000. As used in sections 312.1000 to 312.1040,
the following terms mean:
(1) "Artificially derived cannabinoid", a cannabinoid
extracted from a hemp plant, or hemp plant parts with a
chemical makeup that is changed after extraction to create a
different cannabinoid or other chemical compound by applying
a catalyst other than heat or light. Artificially derived
cannabinoid includes, but is not limited to, any
tetrahydrocannabinol created from cannabidiol;
(2) "Delivery service", a third party that delivers
items from a retail dealer to consumers for personal
consumption and not for resale using employees or
independent contractors to facilitate the delivery. A
"delivery service" also may facilitate delivery through
technology services that connect customers with retail
dealers through the use of the internet, mobile
applications, and other similar technology;
(3) "Department", the department of health and senior
services;
(4) "Division", the division of alcohol and tobacco
control;
(5) "Hemp beverage" or "hemp beverage product", a
beverage intended for human consumption, which does not
include cannabis flower or cannabis concentrate; and:
(a) Contains or consists of hemp plant parts; or
3
(b) Contains hemp concentrate, unfinished hemp
extract, or artificially derived cannabinoids in combination
with other ingredients;
(6) "Hemp business", one of the following licensed
under sections 312.1000 to 312.1040:
(a) Hemp beverage manufacturer;
(b) Hemp beverage wholesaler; or
(c) Hemp beverage retailer.
"Hemp business" does not include a person or entity licensed
to grow industrial hemp for commercial or research purposes
or to process industrial hemp for commercial purposes;
(7) "Hemp concentrate":
(a) The extracts and resins of a hemp plant or hemp
plant parts;
(b) The extracts or resins of a hemp plant or hemp
plant parts that are refined to increase the presence of
targeted cannabinoids; or
(c) A product that is produced by refining extracts or
resins of a hemp plant or hemp plant parts and is intended
to be consumed by combustion or vaporization of the product
and inhalation of smoke, aerosol, or vapor from the product.
"Hemp concentrate" does not include artificially derived
cannabinoids, hemp beverages, hemp-derived consumer
products, or hemp-derived topical products;
(8) "Hemp plant", all parts of the plant of the genus
Cannabis that is growing or has not been harvested and has a
delta-9 tetrahydrocannabinol concentration of no more than
three-tenths of one percent on a dry weight basis;
(9) "Hemp plant parts", any part of the harvested hemp
plant, including the flower, bud, leaves, stems, and stalk,
but does not include derivatives, extracts, cannabinoids,
isomers, acids, salts, and salts of isomers that are
4
separated from the plant. "Hemp plant parts" do not include
hemp fiber products, hemp grain, or hemp seed;
(10) "Hemp seed", the viable seed of the plant of the
genus Cannabis that is intended to be planted and is
reasonably expected to grow into a hemp plant. "Hemp seed"
does not include cannabis seed or hemp grain;
(11) "Industrial hemp", the plant Cannabis sativa L.
and any part of the plant, whether growing or not, including
the plant's seeds, and all the plant's derivatives,
extracts, cannabinoids, isomers, acids, salts, and salts of
isomers, whether growing or not, with a delta-9
tetrahydrocannabinol concentration of not more than three-
tenths of one percent on a dry weight basis. Industrial
hemp is not marijuana, as defined under Article XIV of the
Constitution of Missouri;
(12) "Unfinished hemp extract", an oil, extract,
concentrate, or other substance that has a total
tetrahydrocannabinol concentration above three-tenths of one
percent on a dry weight basis, is not for consumer use or
retail distribution, and is intended to undergo further
refinement or processing into a hemp product.
312.1005. 1. The division shall issue the following
types of hemp business licenses:
(1) Hemp beverage manufacturer;
(2) Hemp beverage wholesaler; and
(3) Hemp beverage retailer.
2. Notwithstanding any provisions of sections 312.1000
to 312.1040 or chapter 311 to the contrary, there shall be
no interpretations that prohibit liquor licensees from
manufacturing, distributing, or selling hemp beverage
products that comply with the provisions of sections
312.1000 to 312.1040 and any other rules adopted by the
division.
5
3. A person, cooperative, or business may hold both a
hemp beverage manufacturer and hemp beverage retailer
license, but may only operate hemp beverage retail
operations on site at the premises in which the hemp
beverage product is manufactured.
4. Except as otherwise provided in this section, no
person, cooperative, or business holding any one of the
three types of hemp beverage licenses shall hold either of
the other two types of hemp beverage licenses and shall not
have a financial interest, either direct or indirect, in a
person, cooperative, or business holding any of the other
two types of hemp beverage licenses.
5. Except as otherwise provided in this section, no
hemp beverage manufacturer shall sell or otherwise convey
hemp beverage products to retailers. Hemp beverage
manufacturers are authorized to solicit and sell hemp
beverage products to hemp beverage wholesalers. Hemp
beverage wholesalers are authorized to solicit and sell hemp
beverage products to hemp beverage retailers.
6. A person, cooperative, or business holding a hemp
beverage manufacturer license, a hemp beverage wholesaler
license, or a hemp beverage retailer license, or any
allowable combination thereof, shall not hold a marijuana
facility license or a medical facility license, as such
terms are defined in Article XIV of the Constitution of
Missouri.
7. No license shall be issued to a hemp beverage
retailer unless the hemp beverage retailer also has an
active license issued by the division allowing it to sell
alcoholic beverages. This restriction shall not apply to
hemp beverage manufacturers, unless they are seeking a hemp
beverage retailer license.
6
8. No hemp beverage wholesaler or hemp beverage
retailer shall distribute or sell any hemp beverage products
that the wholesaler or retailer knows or reasonably should
know were manufactured outside of the United States.
9. Unfinished hemp extract may only be imported by a
hemp beverage manufacturer if:
(1) The unfinished hemp extract is derived from
industrial hemp biomass that has been cultivated under a
state-sponsored industrial hemp program or the U.S.
Department of Agriculture; and
(2) The hemp beverage manufacturer has records to
substantiate the source of the hemp biomass.
10. Unfinished hemp extract may only be exported by a
hemp beverage manufacturer if:
(1) The hemp beverage manufacturer does not export
unfinished hemp extract to a state where unfinished hemp
extract is prohibited by state law; and
(2) The hemp beverage manufacturer does not sell or
export unfinished hemp extract to any person or entity that
does not hold a valid hemp beverage manufacturer license.
312.1010. 1. The division, by rule, shall establish
forms and procedures for the processing of hemp licenses
issued under sections 312.1000 to 312.1040. At a minimum,
any application to obtain or renew a hemp business license
shall include the following information, if applicable:
(1) The name, address, and date of birth of the
applicant;
(2) The address and legal property description of the
business;
(3) Proof of business name registration;
(4) Certification that the applicant shall comply with
the requirements of sections 312.1000 to 312.1040 relating
to the ownership and operation of a hemp business;
7
(5) Identification of one or more controlling persons
or managerial employees as agents who shall be responsible
for dealing with the division on all matters; and
(6) A statement that the applicant agrees to respond
to the division's supplemental requests for information.
2. An application on behalf of a corporation, limited
liability company, partnership, or association shall be
signed by at least two officers or managing agents of that
entity.
3. The division may issue a hemp business license to
an applicant who:
(1) Is, or is owned and managed by persons, at least
twenty-one years of age who has not or have not been
convicted of a felony related to controlled substances
within the previous ten years in any state or federal
jurisdiction and who is or are current in filing all
applicable tax returns to the department of revenue and in
payment of all taxes, interest, and penalties assessed by
the department of revenue;
(2) Has completed an application for licensure or
application for renewal and has fully and truthfully
complied with all information requests relating to license
application and renewal;
(3) Has paid the applicable application and license
fees. For hemp beverage manufacturers, the license fee
shall be one thousand dollars per location. For hemp
beverage wholesalers, the license fee shall be five hundred
dollars per location. For hemp beverage retailers, the
license fee shall be two hundred fifty dollars per location;
(4) Is not employed by the division, department, or
any other state agency with regulatory authority over
sections 312.1000 to 312.1040; and
8
(5) Does not hold any marijuana facility or medical
facility license, as such terms are defined in Article XIV
of the Constitution of Missouri.
4. Licenses shall be renewed in a manner and for a
term consistent with the provisions of section 311.240,
including, but not limited to, prorated fees for initial
licensure, late charges for failure to submit completed
applications, dates for license validity, and dates by which
to submit a renewal application.
5. Licenses shall not be transferred.
6. The division shall promulgate such regulations
related to hemp business licensees for the administration of
sections 312.1000 to 312.1040 and shall design all necessary
forms. The department shall promulgate any necessary
regulations to enact the authority granted to it under
sections 312.1000 to 312.1040. Any rule or portion of a
rule, as that term is defined in section 536.010, that is
created under the authority delegated in this section shall
become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable,
section 536.028. This section and chapter 536 are
nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536 to review, to delay
the effective date, or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
August 28, 2026, shall be invalid and void.
7. (1) Whenever it shall be determined that a hemp
business licensee has violated any of the provisions of
sections 312.1000 to 312.1040, the supervisor of the
division may warn, place on probation on such terms and
conditions as the supervisor deems appropriate for a period
not to exceed twelve months, fine in an amount not to exceed
9
five thousand dollars per violation, suspend for a period
not to exceed twelve months, or revoke the license of the
licensee. The licensee shall have thirty days' notice of
the imposition of discipline and may seek a determination
thereon by the administrative hearing commission under the
provisions of section 621.045.
(2) In order to encourage the early resolution of
disputes between the supervisor of the division and
licensees, the supervisor, prior to issuing any disciplinary
order, shall provide the licensee with the opportunity to
meet or to confer with the supervisor, or his or her
designee, concerning the alleged violations. At least ten
days prior to such meeting or conference, the supervisor
shall provide the licensee with notice of the time and place
of such meeting or conference, and the supervisor shall also
provide the licensee with a written description of the
specific conduct for which discipline is sought, a citation
of the law or rules allegedly violated, and, upon request,
copies of any violation report or any other documents that
are the basis for such action. Any order of warning,
probation, revocation, suspension, or fine shall be
effective no sooner than thirty days from the date of such
order.
8. (1) There is hereby created in the state treasury
the "Hemp-Derived Products Fund", which shall consist of all
fees authorized to be charged by the division under this
section. The state treasurer shall be custodian of the
fund. In accordance with sections 30.170 and 30.180, the
state treasurer may approve disbursements. The fund shall
be a dedicated fund and money in the fund shall be used
solely by the division and the department for the purposes
of administration of sections 312.1000 to 312.1040.
10
(2) Notwithstanding the provisions of section 33.080
to the contrary, any moneys remaining in the fund at the end
of the biennium shall not revert to the credit of the
general revenue fund.
(3) The state treasurer shall invest moneys in the
fund in the same manner as other funds are invested. Any
interest and moneys earned on such investments shall be
credited to the fund.
312.1015. 1. A hemp beverage manufacturer license
entitles the license holder to:
(1) Purchase hemp plant parts, unfinished hemp
extract, and artificially derived cannabinoids from
industrial hemp processors and hemp beverage manufacturers;
(2) Purchase hemp plant parts and propagules from
industrial hemp growers;
(3) Purchase unfinished hemp extract;
(4) Manufacture hemp beverages for public consumption;
(5) Package and label hemp beverages for sale to
customers;
(6) Sell unfinished hemp extract to other hemp
beverage manufacturers;
(7) Sell hemp beverage products to hemp beverage
wholesalers; and
(8) Perform any other actions approved by the
department and division.
2. All hemp beverage manufacturing shall take place in
a Current Good Manufacturing Practices-certified facility or
in a facility licensed as a brewery, distillery, or winery.
The facility and equipment used in manufacturing shall meet
all applicable health and safety requirements established by
the department, including, but not limited to, cleaning and
testing machinery between production of different products.
11
3. A hemp beverage manufacturer shall comply with all
applicable packaging, labeling, and testing requirements
established by the department and the division. Labels and
packaging for the hemp beverage products shall not consist
of images or designs that are intended to be attractive to
individuals under twenty-one years of age. A product shall
be considered attractive under this subsection if it uses
labeling, packaging, advertising, and marketing that is
especially appealing to children, including, but not limited
to, the use of:
(1) Cartoons, meaning any drawing or other depiction
of an object, person, animal, creature, or any similar
caricature that satisfies any of the following criteria:
(a) The use of comically exaggerated features;
(b) The attribution of human characteristics to
animals, plants, or other objects; or
(c) The attribution of unnatural or extra-human
abilities; and
(2) Similarities to products that are commonly used
by or marketed to individuals under twenty-one, including,
but not limited to, candy, soda, drinks, cookies, or cereal,
except when used to describe the contents, taste, or
ingredients of the product sold.
4. All hemp beverage products shall be registered by
the manufacturer with the department prior to sale. The
department may establish reasonable fees for the
registration of each hemp beverage product.
5. Upon the sale of any hemp beverage, a hemp beverage
manufacturer shall provide a statement to the buyer that
discloses the product's ingredients, including, but not
limited to, any chemicals or compounds and any major food
allergens declared by name.
12
6. A hemp beverage manufacturer shall not add any
artificially derived cannabinoid, hemp plant part,
unfinished hemp extract, or hemp concentrate to a product if
the manufacturer of the product holds a trademark to the
product's name, except that a hemp beverage manufacturer may
use a trademarked food product if the manufacturer uses the
product as a component or as part of a recipe and if the
hemp beverage manufacturer does not state or advertise to
the customer that the final retail hemp beverage product
contains a trademarked food product.
7. A hemp beverage manufacturer shall not add any
cannabis flower, cannabis concentrate, or cannabinoid
derived from cannabis flower or cannabis concentrate to a
product.
8. The hemp beverage manufacturer shall have a hemp
beverage product tested prior to distribution to confirm
compliance with all statutory and regulatory requirements.
The testing shall be performed by a laboratory holding an
ISO 17025 accreditation or that is registered with the Drug
Enforcement Administration in accordance with 21 CFR
1301.13, and which does not have a direct or indirect
interest in the entity whose product is being tested.
9. No hemp beverage manufacturer who designates a
specific geographic area for which a hemp beverage
wholesaler shall be responsible, shall enter into any
agreement with any other person for the purpose of
establishing an additional wholesaler for the same brands of
hemp beverage products in such designated area.
10. Any hemp beverage manufacturer or wholesaler who
violates the provisions of this section, or permits its
employees, officers, or agents to do so, shall be guilty of
a misdemeanor, and upon conviction thereof shall be punished
only as follows:
13
(1) For the first offense, by a fine of one thousand
dollars;
(2) For the second offense, by a fine of five thousand
dollars; and
(3) For the third or any subsequent offense, by a fine
of twenty-five thousand dollars.
11. All unfinished hemp extract shall be labeled "NOT
FOR SALE TO CONSUMERS".
312.1020. 1. A hemp beverage wholesaler may transport
hemp beverages on public roadways provided the hemp
beverages are in a safe and secured storage compartment that
is part of the motor vehicle.
2. A hemp beverage wholesaler may sell to retailers
hemp beverage products that:
(1) Are obtained from a licensed hemp beverage
manufacturer;
(2) Meet all applicable packaging and labeling
requirements established by the department; and
(3) Comply with any other rules adopted by the
department.
3. Any vehicle assigned for the purposes of hemp
beverage delivery is subject to inspection by the division
at any time.
4. Any hemp beverage products stored by a hemp
beverage wholesaler shall be stored in a secure climate-
controlled location that is locked and inaccessible to the
general public.
5. All hemp beverage wholesalers shall be resident
businesses. A "resident business" shall be a business
created under the laws of Missouri, in which at least sixty
percent of all of the financial interest in the business is
owned by bona fide Missouri residents who have continuously
resided in Missouri for a period of at least three years
14
immediately prior to the date of filing of the application
for a license, and in which at least sixty percent of all
directors, officers, or managers of the business are bona
fide Missouri residents who have continuously resided in
Missouri for a period of at least three years immediately
prior to the date of filing of the application for a license.
312.1025. 1. A hemp beverage retailer shall only sell
hemp beverages to individuals who are at least twenty-one
years of age. No person under twenty-one years of age shall
sell or assist in the sale or dispensing of the hemp
beverages.
2. A hemp beverage retailer shall not sell any product
the retailer knows, or has reason to know, contains more
than three-tenths of one percent of tetrahydrocannabinol
content.
3. A hemp beverage retailer may sell hemp beverage
products that:
(1) Are obtained from a licensed Missouri hemp
beverage wholesaler or is manufactured by the hemp beverage
retailer as a licensed hemp beverage manufacturer on the
premises it is sold; and
(2) Meet all applicable packaging and labeling
requirements established by the department.
4. (1) A hemp beverage retailer shall not ship or
deliver hemp beverages to consumers, and all sales of hemp
beverage products shall be made on the licensed premises of
the hemp beverage retailer.
(2) Notwithstanding the provisions of subdivision (1)
of this subsection to the contrary, a hemp beverage retailer
may deliver or utilize a delivery service to deliver hemp
beverages to consumers only if such retailer and delivery
service complies with rules promulgated by the division.
The division shall establish a license for such delivery
15
service and shall establish a license application and
renewal fee in an amount necessary to cover the reasonable
costs of administering the provisions of this subdivision.
5. A hemp beverage retailer may sell other products or
items for which the hemp beverage retailer has a license or
authorization or that do not require a license or
authorization.
6. It shall constitute a class B misdemeanor for a
hemp beverage retailer or any other person to sell or
provide hemp beverage products to a person under twenty-one
years of age. It shall constitute a class B misdemeanor for
a person under twenty-one years of age to knowingly acquire,
possess, or consume a hemp beverage product.
Notwithstanding the other provisions of this section to the
contrary, law enforcement agency efforts utilizing a person
under twenty-one years of age but at least eighteen years of
age, wherein the person does not consume the hemp beverage
product, are not precluded. The division may enforce
compliance with this section by conducting random,
unannounced inspections at locations where such products are
sold or distributed to ensure compliance with sections
312.1000 to 312.1040. The division shall submit an annual
publicly accessible report to the general assembly
describing in detail the division's enforcement efforts.
7. A hemp beverage retailer shall ensure that all hemp
beverages offered for sale comply with the limits on the
amount and types of cannabinoids that a hemp beverage
product can contain, including, but not limited to, the
requirement that hemp beverages are either multi-serving or
a single serving hemp beverage and:
(1) A multi-serving hemp beverage shall be bottled or
placed in a container of no less than three hundred seventy-
five milliliters and no more than one and three-quarters
16
liters; be bottled or placed in a child-proof resealable
container that uses a screw top or cork-style cap; with
container servings measured in no less than one and a half
ounces; and no more than ten milligrams of
tetrahydrocannabinol per serving;
(2) A single serving hemp-derived cannabinoid shall be
bottled, canned, or placed in a container of no less than
fifty milliliters and no more than nineteen and two-tenths
ounces; be canned or placed in a container that utilizes a
traditional pull tab; have no more than ten milligrams of
tetrahydrocannabinol per container and contain no more than
one serving per container; and
(3) Consist of servings that contain no more than ten
milligrams of delta-9 tetrahydrocannabinol.
8. A hemp beverage retailer shall not:
(1) Sell a hemp beverage to a person who is visibly
intoxicated;
(2) Sell cannabis flower or cannabis products; or
(3) Allow for the dispensing of hemp beverage products
in vending machines.
9. A hemp beverage retailer may permit onsite
consumption of hemp beverage products that contain no more
than five milligrams of tetrahydrocannabinol per serving
that are consumed by consumers onsite.
10. A hemp beverage retailer shall ensure that hemp
beverage products sold for onsite consumption comply with
sections 312.1000 to 312.1040 and rules adopted under
sections 312.1000 to 312.1040 regarding testing.
11. Food and beverages not otherwise prohibited by
this section may be prepared and sold onsite provided that
the hemp beverage retailer complies with all relevant state
and local laws, ordinances, licensing requirements, and
zoning requirements.
17
12. A hemp beverage retailer selling products onsite
shall not:
(1) Sell hemp beverage products to a customer who the
hemp beverage retailer knows or reasonably should know is
intoxicated, either from consumption of alcohol, other hemp
beverages, or any other drug;
(2) Sell hemp beverage products that are designed or
reasonably expected to be mixed with an alcoholic beverage,
or to knowingly permit any customer to mix or to consume
hemp beverage products with any alcoholic beverage; or
(3) Permit hemp beverage products that have been
removed from the products' packaging or any open containers
of hemp beverage products to be removed from the premises of
the hemp beverage retailer.
13. A hemp beverage retailer shall maintain compliance
with state and local building, fire, and zoning codes,
requirements, or regulations.
14. A hemp beverage retailer shall ensure that the
licensed premises is maintained in a clean and sanitary
condition, free from infestation by insects, rodents, or
other pests.
15. No hemp beverage manufacturer or wholesaler, or
any employee, officer, or agent of such, may, directly or
indirectly, loan, give away, or furnish equipment, money,
credit, or property of any kind, or any other consideration,
except ordinary commercial credit for hemp beverage products
or hemp concentrate from a hemp beverage manufacturer, to a
hemp beverage retailer, nor shall any hemp beverage retailer
accept any loan, equipment, payment, credit, property, or
any other consideration, except ordinary commercial credit
for hemp beverage products or hemp concentrate from a hemp
beverage manufacturer. Further, no hemp beverage
manufacturer or wholesaler may pay to a hemp beverage
18
retailer any fee rental or other consideration for the use
of any part of the licensed retail premises for advertising
any brand name for the purpose of advertising the same.
16. A hemp beverage retailer is subject to inspection
by the division at any time.
17. The division shall not issue a hemp beverage
license to any retail establishment located within one
hundred feet of any educational institution providing
education to children at any preschool, elementary or
secondary school, institution of higher education, or any
other educational institution attended by any person under
twenty-one years of age, nor to any retail establishment
located within one hundred feet of any church or place of
worship. The prohibition in this subsection shall not apply
to businesses selling hemp-derived cannabinoids prior to
December 31, 2026.
312.1030. 1. As used in this section, "franchise"
means a written or oral arrangement for a definite or
indefinite period in which a person grants to another person
a license to use a trade name, trademark, service mark, or
related characteristic, and in which there is a community of
interest in the marketing of goods or services at wholesale,
retail, by lease, agreement, or otherwise, including, but
not limited to, a commercial relationship of definite
duration or continuing indefinite duration, between a hemp
beverage wholesaler, to hemp beverage retailers, duly
licensed in this state, and a hemp beverage manufacturer,
and wherein a hemp beverage wholesaler is granted the right
to offer, sell, and distribute within this state or any
designated area thereof some or all of the hemp beverage
manufacturer's hemp beverage products to hemp beverage
retailers.
19
2. If more than one franchise for the same brand or
brands of hemp beverage products is granted to different
hemp beverage wholesalers in Missouri, it is a violation for
any hemp beverage manufacturers to discriminate between the
wholesalers with respect to any of the terms, provisions,
and conditions of these franchises.
3. Notwithstanding the terms, provisions, and
conditions of any franchise, no hemp beverage manufacturer
shall unilaterally terminate or refuse to continue or change
substantially the condition of any franchise with the hemp
beverage wholesaler unless the manufacturer has first
established good cause for such termination, noncontinuance,
or change.
4. Any hemp beverage wholesaler may bring an action in
a court of competent jurisdiction against a hemp beverage
manufacturer for violation of any of the provisions of this
section and may recover damages sustained by such wholesaler
together with the costs of the action and reasonable
attorney's fees.
5. In any action brought by a hemp beverage wholesaler
against a hemp beverage manufacturer for termination,
noncontinuance, or substantial change in violation of the
provisions of this section, it is a complete defense for the
hemp beverage manufacturer to prove that the termination,
noncontinuance, or change was done in good faith and for
good cause.
6. As used in this section, "good faith" is the duty
of each party to any franchise and all officers, employees,
or agents thereof to act in a fair and equitable manner
towards each other, and "good cause" means the following:
(1) Failure by the hemp beverage wholesaler to comply
substantially with the provisions of an agreement or
20
understanding with the hemp beverage manufacturer, which
provisions are both essential and reasonable;
(2) Use of bad faith or failure to observe reasonable
commercial standards of fair dealing in the trade; or
(3) Revocation or suspension for more than thirty days
of the hemp beverage wholesaler's state or local license
required for normal operations of its business.
312.1035. 1. A hemp beverage product that is sold in
this state shall be labeled with consumer protection
warnings in the form of statements that cover all of the
following:
(1) A list of ingredients and possible allergens and a
nutritional fact panel or have a code that can be scanned
that directs consumers to a website containing the list of
ingredients and possible allergens and a nutritional fact
panel;
(2) A statement that use while pregnant or
breastfeeding may be harmful;
(3) A statement that consumption of certain
cannabinoids may impair your ability to drive and operate
heavy machinery;
(4) A statement that the product is not approved by
the U.S. Food and Drug Administration;
(5) A statement to keep out of reach of children;
(6) A statement to consult your physician before use;
(7) The amount of hemp-derived cannabinoid in each
serving of the product, measured in milligrams;
(8) The total amount of hemp-derived cannabinoid in
the entire package, measured in milligrams;
(9) The net weight of the product; and
(10) An expiration date in accordance with applicable
federal or state law.
21
2. A manufacturer, wholesaler, or retailer of a hemp
beverage product shall not advertise, market, or offer for
sale the product by using, in the labeling or design of the
product or product packaging or in advertising or marketing
materials for the product trade dress, trademarks, branding,
or other related materials, any imagery or scenery that
depicts or signifies characters or symbols known to appeal
primarily to persons under twenty-one years of age,
including, but not limited to, superheroes, comic book
characters, video game characters, television show
characters, movie characters, and mythical creatures.
312.1037. The division shall allow retailers and
wholesalers one hundred and twenty days after August 28,
2026, to sell any adult hemp beverage products that were in
the retailers' or wholesalers' inventory as of August 28,
2026. All sales shall be in compliance with the provisions
of sections 312.1000 to 312.1040, including the prohibition
on sales to persons under twenty-one years of age. On and
after one hundred and twenty days after August 28, 2026, all
hemp beverage products that have not been removed from the
inventory of a retailer or wholesaler shall be subject to
forfeiture and destruction and shall not be purchased or
sold in this state. The cost of seizure, forfeiture, and
destruction or disposal under this section shall be paid by
the person or entity from whom the adult hemp beverage
products are confiscated.
312.1040. 1. An excise tax at the rate of seven
percent is imposed on the retail sale of a hemp beverage
product. The tax is in addition to any tax imposed under
any other provision of federal, state, or local law.
2. The tax imposed by this section is intended to be
passed on to and borne by the purchaser of the hemp-derived
consumable product. The tax is a debt from the purchaser to
22
the retailer until paid. A retailer is considered to act as
a trustee on behalf of the state when it collects tax from
the purchaser on a taxable transaction. The tax shall be
stated and charged separately on any documentation provided
to the purchaser by the retailer at the time of the
transaction.