Amends TCA Title 39, Chapter 17, Part 15; Title 43, Chapter 27 and Title 67.

This bill: (1) Makes the sale and distribution of products containing a hemp-derived cannabinoid subject to applicable provisions of the Prevention of Youth Access to Tobacco, Smoking Hemp, and Vapor Products Act, including the provisions restricting the ability to sell, purchase, or possess products containing intoxicating cannabinoids derived from hemp to persons who are 21 years of age or older; (2) Requires wholesalers of products containing a hemp-derived cannabinoid to pay a wholesale tax 6.6 percent of the wholesale sales price per product sold for the privilege of distributing such products in this state. Revenue received by the department from the wholesale tax on products containing a hemp-derived cannabinoid will be deposited into a special account in the state general fund and allocated to the department of agriculture to be used exclusively for the regulation and promotion of the hemp industry in this state; and (3) Requires licensure in order for a person to engage in the business of selling or distributing products containing a hemp-derived cannabinoid in this state, unless that person is licensed to cultivate hemp under present law. A person must be licensed prior to the commencement of business or by June 1, 2023, whichever is later. This bill provides the following in regard to this provision: (A) A person licensed to cultivate hemp may sell to a licensed wholesaler and is not required to collect or remit any tax for such sales under this bill's licensure provisions; and may sell to a licensed retailer if the person is also licensed as a wholesaler under this bill's licensure provisions and must collect and remit any tax for such sales; (B) Applications for licenses must be accompanied by the following fees: retailer, $200 for each retail location; and wholesaler, $200 for each separate sale warehouse or wholesale location; (C) Applications for renewal of a license may be denied for failure of the licensee to pay the tax or taxes imposed by this bill or for the violation of this bill or any rule promulgated by the commissioner under the authority vested in the commissioner of agriculture; (D) A person who engages in any business or activity for which a license is required under this bill without obtaining a license to do so, or who fails to file an application for renewal of a license before expiration of the current license, is subject to a specific penalty in the amount of the license fee for each month or part of a month during which the activity or failure continues. In addition to that penalty, the commissioner may impose a penalty of no more than $250 per day for each day during which the activity or failure occurs or continues. This discretionary penalty may also be imposed upon a person to whom a license has been issued, if the person continues to engage in the business or activity after receiving notice the license is revoked or suspended by the commissioner; (E) Persons duly and properly licensed to sell products containing a hemp-derived cannabinoid in this state are prohibited from knowingly selling, lending, or exchanging such products to, with, or from any person required to be licensed who is not so licensed, or who is improperly licensed; (F) The commissioner may revoke a license issued under this bill upon the failure of the licensee to pay the tax or taxes imposed by this bill, or for the violation of this bill or any rule promulgated by the commissioner. This bill sets out the procedure for such a revocation. Pending final determination of the notice or hearing, the licensee may continue to buy, sell, and distribute products containing a hemp-derived cannabinoid. The commissioner may require bond with good and solvent surety in such amount as may be deemed necessary to protect the state's interest; (G) If the commissioner finds that the licensee is guilty of the delinquency charged, but further finds that the violation by the licensee was unintentional or inadvertent, the commissioner, or the commissioner's duly authorized agent, representative, or employee, may suspend the license of the licensee for a period not to exceed 30 days or, if the licensee has not previously been found guilty of any delinquency or the dereliction charged has been remedied by the licensee at or prior to the time of the hearing, dismiss the proceeding and charges against the licensee upon the payment by the licensee of all costs and fees incurred in holding the hearing; and (4) Adds raw, unadulterated hemp to the list of farm equipment and machinery, the sale of which is exempt from sales and use tax, when sold to a qualified farmer.