Minister of Agriculture, Zulfikar Mustapha yesterday introduced the Industrial Hemp Bill 2022 in the National Assembly, paving way for the decriminalisation of hemp and outlining a path towards industrialisation.
Hemp is a variety of the cannabis sativa plant species that is grown specifically for industrial use and over the years there have been increased calls for its decriminalisation.
According to the Bill’s explanatory memorandum, its purpose is to provide a definition for industrial hemp and remove its classification under the Narcotic Drugs and Psychotropic Substance (Control) Act, Cap. 10:10 as a prohibited plant if possessed, cultivated, manufactured or otherwise dealt with in accordance with the Act.
With 39 clauses, the Bill provides for the regulation of the cultivating and manufacturing of industrial hemp and hemp-related products; the conducting of research on industrial hemp; the establishment of the Guyana Industrial Hemp Regulatory Authority; the development of a viable hemp industry in Guyana; and other related matters.
The Bill stipulates industrial hemp or “hemp” to mean any plant of the genus cannabis and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3% on a dry weight basis. Additionally, “hemp-related product” is defined as a product derived, manufactured or produced from industrial hemp where that product contains a concentration of no more than 0.3% THC.
Part II of the Bill speaks about the establishment of the Guyana Industrial Hemp Regulatory Authority which shall be a body corporate with a Governing Board. The Board will include several nominees appointed by the Minister responsible for agriculture from amongst persons who are fit and proper to perform the functions of the Authority and who are representatives of key stakeholders both from the public and private sectors.
Clause 4(2) states “The Board shall consist of the following members appointed by the Minister – (a) a nominee of the Ministry of Agriculture, who shall be the Chairperson; (b) a nominee of the Ministry of Health; (c) a nominee of the Ministry of Home Affairs; (d) a nominee of the Guyana Forensic Science Laboratory; (e) a nominee of the Private Sector Commission; (f) the Chief Executive Officer of the Authority as an ex officio member; and (g) two other persons deemed by the Minister to be fit and proper to be appointed to the Board by reason of their integrity and having the requisite experience, professional capacity and qualification.”
The Bill also empowers the Minister of Agriculture to reject the nomination of any member of the Board. The Board would also have a life of 2 years and maybe reappointed by the minister if he deems the members to be eligible.
The Chief Executive Officer appointed by the Board under clause 7 of the Bill and who has responsibility for the day-to-day management of the Authority shall be an ex officio member of the Board. The CEO’s appointment will be valid for no more than three years.
Clause 6 of the Bill sets out the functions of the Authority which functions shall be exercised by the Board. The functions include the granting of licences under the Act; ensuring compliance with the Act and the terms and conditions of licences granted under the Act; entering into agreements for the development of a viable hemp industry in Guyana and prescribing appropriate and necessary practices and guidelines for the effective implementation of the provisions of the Act.
Part III of the Bill speaks to the licences offered and the processes involved. The Bill caters for three types of licences, namely – a cultivation licence which authorises all activities related to the cultivation of industrial hemp including the possession, planting, propagating, harvesting, transporting, distributing and selling of industrial hemp; a manufacturing licence which authorises all activities related to the manufacturing of industrial hemp including the processing of raw hemp materials into extracted or isolated products or the processing and manufacturing of industrial hemp-related products including foods, textiles, furniture, medicines and cosmetics and the possession, buying, selling, distributing, importing and exporting of industrial hemp, seed and hemp-related products; and a licence to research industrial hemp.
According to the Bill, a person may apply for more than one type of licence and shall pay the prescribed licence fee at the time of applying to the Authority. Clause 17 stipulates the period in which a licence shall be issued and its manner and form. Under this clause, a licence shall be issued by the Board within 30 days of the receipt of an application by the Authority and on the payment of the prescribed fee, unless that application is refused. Where an application is refused the applicant will be given 21 days to appeal that decision to the Minister.
The licences are expected to be valid for three years and shall authorise the possession of industrial hemp, seed and hemp-related products by the agent of, or any other person authorised by, the licensee to carry out the activities authorised by the licence. Additionally, the licence cannot be transferred to another person.
Clauses 21 and 22 of the Bill set out the conditions under which an application for a licence or renewal of a licence under the Act may be refused and under which a licence granted may be suspended or revoked. Both clauses allow for the licensee to be notified of the refusal, suspension or revocation and allows the applicant a period to appeal the decision or to remedy any breaches. Clause 23 of the Bill gives the Minister the power to designate geographical areas, by Order subject to the negative resolution of the National Assembly, to cultivate or manufacture industrial hemp and hemp-related products.
The Bill also caters for the establishment of an Industrial Hemp Register which will contain information relating to licensees.
Enforcement
Part V of the Bill provides for the enforcement of the Act once passed in the National Assembly.
Clause 27 of the Bill provides for the Act to be enforced by authorised officers appointed by the Board with the powers of entry, search and examination and seizure assigned to specified persons including a member of the Guyana Police Force.
Meanwhile, clause 28 expresses the extent of that power which must be exercised under a warrant issued by a Magistrate.
Clause 29 states “…(1) A person shall not delay, assault, threaten, obstruct, impersonate or give false or misleading information to an authorised officer in the performance of the authorised officer’s functions. (2) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of two hundred thousand dollars and to imprisonment for a term of one year.”
To ensure licensees are acting in conformity with the legislation, the Bill speaks to testing by designated persons. It identifies the Guyana Forensic Science Laboratory or any other facility designated by the Minister of Agriculture to be responsible for testing industrial hemp, seed and hemp-related products to be done before it is planted, propagated, harvested, processed, manufactured, distributed, imported or exported.
The Bill provides that it shall not be an offence for a person to possess industrial hemp, seed and hemp-related products if that possession is for personal use and is pursuant to a licence issued under this Act.
Clause 34 of the Bill provides for transparency, accountability and compliance with the Act by the licensee. The clause places the obligation on the licensee to submit status reports and annual returns to the Board, which shall transmit a copy to the Minister, of all activities carried on by the licensee every twelve months from the issue of the licence. It also requires the licensee to submit its annual return to the Board. Failing to submit an annual return or a status report is an offence under the Act punishable, on summary conviction, by a fine of $200,000.
Clause 36 states “A person who commits an offence under this Act for which no specific penalty is provided shall be liable on summary conviction to a fine of two hundred thousand dollars ($200,000) and imprisonment for a term of one year.”
Clause 37 also speaks to the commission of an offence by a body corporate.
The Bill also empowers the minister to regulate the labelling and the advertising of industrial hemp and hemp-related products including prohibiting the labelling and advertising of industrial hemp as a psychotropic substance.
