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Bill S.3.23 would move hemp product oversight to cannabis regulator and change grower fees

Senate Agriculture Committee · March 20, 2026

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Summary

A Senate agriculture committee heard an overview of S.3.23, which would consolidate hemp and cannabis oversight under the Cannabis Control Board, tighten THC‑variant limits to 0.3, and overhaul grower/processor fee schedules; members pressed for more testing and jurisdiction details.

A state Senate agriculture committee was briefed on S.3.23, a Senate agriculture bill that would shift oversight of hemp producers, processors and hemp‑derived products to the Cannabis Control Board and change registration fees for growers and products.

The bill’s presenter told the committee that federal law opened the door to widespread hemp products in 2018 and that a federal change in 2025 tightened the definition of lawful hemp by tying the 0.3 threshold to any THC variant rather than only to delta‑9. "What the Cannabis Control Board, in consultation with the Agency of Agriculture ... would like to do is to kind of unify oversight of cannabis and hemp into one regulatory agency so that they can better control, test, score, and ensure that hemp and hemp derived products don't have more than 0.3 milligrams of THC," the presenter said.

Why it matters: Committee members said the federal changes have led to new processing techniques and products—gummies, teas, distilled concentrates and infused drinks—that can have intoxicating or numbing effects depending on which THC variant is present. Members flagged uncertainty about lab testing for delta‑8 and other variants and the effect of reclassifying oversight on growers and municipal zoning.

Key provisions and details: The presenter summarized the bill’s structure and fee changes. The draft would categorize participants as producers (growers), processors and products. Processors and products exceeding the THC threshold would require registration with the Cannabis Control Board and face sales limits (for example, restrictions on interstate commerce and sales to people under 21). The presenter said the bill would replace existing acreage/poundage fees (which under current law included tiers up to a $3,000 fee for operations above 50 acres or 50,000 pounds) with a simpler schedule: $50 for growers, $500 for producers and $75 per product registration.

Committee questions focused on testing and jurisdiction. One member asked whether the state lab tests for non‑delta‑9 THC variants; the presenter said he was not certain and recommended that the Cannabis Control Board or the state lab provide technical details. Members also queried whether hemp would remain classified as an agricultural product; the presenter said the bill explicitly treats hemp as agricultural and subject to the state's agricultural 'wraps' (water‑quality implementation), but acknowledged practical questions about enforcement and whether other committee or floor amendments could significantly alter the measure.

Anecdote underscoring concerns: A committee member described inspecting a lab distillate that caused "my mouth instantly went completely numb," an example members used to illustrate how concentrated hemp derivatives can produce strong effects and complicate simple plant‑level distinctions.

Next steps: The presenter said the bill is in the Senate (S.3.23, sections 26–29 were cited) and that the Cannabis Control Board and the Agency of Agriculture are expected to testify in more detail. Committee members scheduled further testimony from Agriculture, Food Resiliency, & Forestry (listed on the agenda as Agriculture, Food and Markets) and suggested the committee will revisit the measure when technical and enforcement questions—particularly about lab testing and municipal zoning—are addressed.

The committee did not vote on S.3.23 during this briefing; members requested follow‑up testimony and technical detail from the Cannabis Control Board and the state lab.