(a) No person shall manufacture in the state without a license to manufacture issued by the Commissioner of Consumer Protection.

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(b) Each applicant for a manufacturer license shall submit an application on a form and in a manner prescribed by the Commissioner of Consumer Protection.

(c) The following fees shall apply for a license to manufacture:

(1) A nonrefundable license application fee of seventy-five dollars; and

(2) A nonrefundable licensing fee of three hundred seventy-five dollars for a license to manufacture hemp.

(d) A license to manufacture issued by the Commissioner of Consumer Protection pursuant to this section shall expire triennially on June thirtieth. Such licenses shall not be transferable.

(e) In accordance with a hearing held pursuant to chapter 54, the Commissioner of Consumer Protection may deny, suspend or revoke a manufacturer license, issue fines of not more than two thousand five hundred dollars per violation and place conditions upon a manufacturer licensee who violates the provisions of this section and any regulation adopted pursuant to this section.

(f) (1) Any individual who manufactures in this state without obtaining a license pursuant to this section or who manufactures in this state after such entity’s license is suspended or revoked shall be fined two hundred fifty dollars in accordance with the provisions of section 51-164n.

(2) Any entity who manufactures in this state without obtaining a license pursuant to this section, or who manufactures in this state after having a license suspended, shall be fined not more than two thousand five hundred dollars per violation after a hearing conducted in accordance with the provisions of chapter 54.

(g) Nothing in this chapter or any regulations adopted pursuant to this chapter shall be construed to apply to persons licensed pursuant to section 21a-408i nor to require persons licensed pursuant to said section to obtain a license pursuant to this chapter.

(h) The Commissioner of Consumer Protection may inspect and shall have access to the buildings, equipment, supplies, vehicles, records, real property and other information of any manufacturer applicant or licensee that the commissioner deems necessary to carry out the commissioner’s duties pursuant to this section.

(i) (1) Each manufacturer shall follow the protocol in this subsection for disposing of cannabis in the event that any hemp or hemp product is deemed to exceed the prescribed THC concentration, as determined by the Commissioner of Consumer Protection, or a manufacturer licensee in possession of hemp or hemp products who desires to dispose of obsolete, misbranded, excess or otherwise undesired product. Each manufacturer licensee shall be responsible for all costs of disposal of hemp samples and any hemp produced by such licensee that violates the provisions of this section or any regulation adopted pursuant to this section. Any cannabis that exceeds the prescribed THC concentration allowable in hemp or hemp products shall be immediately embargoed by such manufacturer and clearly labeled as adulterated by such licensee and such licensee shall immediately notify both the Department of Consumer Protection and the Department of Agriculture, in writing, of such adulterated product. Such adulterated product shall be destroyed and disposed of by the following method, as determined by the Commissioner of Consumer Protection:

(A) Surrender, without compensation, of such hemp or hemp product to the Commissioner of Consumer Protection who shall be responsible for the destruction and disposal of such adulterated product; or

(B) By disposal in a manner prescribed by the Commissioner of Consumer Protection.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, upon written request of a manufacturer, the Commissioner of Consumer Protection may permit such manufacturer to combine different batches of raw hemp plant material to achieve a THC concentration of 0.3 per cent on a dry weight basis, in lieu of embargo or destruction.

(j) The manufacturer or manufacturer’s authorized designee disposing of the hemp or hemp products shall maintain and make available to the Commissioner of Consumer Protection a record of each such disposal or destruction of product indicating:

(1) The date, time and location of disposal or destruction;

(2) The manner of disposal or destruction;

(3) The batch or lot information and quantity of hemp or hemp product disposed of or destroyed; and

(4) The signatures of the persons disposing of the hemp or hemp products, the authorized representative of the Commissioner of Consumer Protection and any other persons present during the disposal.

(k) Any hemp intended to be manufactured into a manufacturer hemp product shall be tested by an independent testing laboratory located in this state. A manufacturer licensee shall make available samples, in an amount and type determined by the Commissioner of Consumer Protection, of hemp for an independent testing laboratory employee to select random samples. The independent testing laboratory shall test each sample for microbiological contaminants, mycotoxins, heavy metals and pesticide chemical residue, and for purposes of conducting an active ingredient analysis, if applicable, as determined by the Commissioner of Consumer Protection.

(l) Once a batch of hemp, intended to be sold as a manufacturer hemp product, has been homogenized for sample testing and eventual packaging and sale, until the independent testing laboratory provides the results from its tests and analysis, the manufacturer licensee shall segregate and withhold from use the entire batch of hemp that is intended for use as a manufacturer hemp product, except the samples that have been removed by the independent testing laboratory for testing. During this period of segregation, the manufacturer licensee shall maintain the hemp batch in a secure, cool and dry location, as prescribed by the Commissioner of Consumer Protection, so as to prevent the hemp from becoming adulterated. Such manufacturer shall not manufacture or sell a manufacturer hemp product prior to the time that the independent testing laboratory completes testing and analysis and provides such results, in writing, to the manufacturer licensee who initiated such testing.

(m) An independent testing laboratory shall immediately return or dispose of any hemp or manufacturer hemp product upon the completion of any testing, use or research. If an independent testing laboratory disposes of hemp or manufacturer hemp products, the laboratory shall dispose of such hemp in the following manner, as determined by the Commissioner of Consumer Protection:

(1) By surrender, without compensation, of such hemp or manufacturer hemp product to the Commissioner of Consumer Protection who shall be responsible for the destruction and disposal of such hemp or hemp product; or

(2) By disposal in a manner prescribed by the Commissioner of Consumer Protection.

(n) If a sample does not pass the microbiological, mycotoxin, heavy metal or pesticide chemical residue test, based on the standards prescribed by the Commissioner of Consumer Protection and published on the Internet web site of the Department of Consumer Protection, the manufacturer licensee who sent such batch for testing shall dispose of the entire batch from which the sample was taken in accordance with procedures established by the Commissioner of Consumer Protection pursuant to subdivision (1) of subsection (i) of this section.

(o) If a sample passes the microbiological, mycotoxin, heavy metal and pesticide chemical residue test, the independent testing laboratory shall release the entire batch for manufacturing, processing or sale.

(p) The independent testing laboratory shall file with the Department of Consumer Protection an electronic copy of each laboratory test result for any batch that does not pass the microbiological, mycotoxin, heavy metal or pesticide chemical residue test, at the same time that it transmits such results to the manufacturer licensee who requested such testing. Each independent testing laboratory shall maintain the test results of each tested batch for a period of three years and shall make such results available to the Department of Consumer Protection upon request.

(q) Manufacturer licensees shall maintain records required by the federal act, this section and any regulation adopted pursuant to this section. Each manufacturer licensee shall make such records available to the Department of Consumer Protection immediately upon request and in electronic format, if available.

(r) The Commissioner of Consumer Protection may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section including, but not limited to, establishing sampling and testing procedures to ensure compliance with this section, prescribing storage and disposal procedures for hemp, marijuana and manufacturer hemp products that fail to pass Department of Consumer Protection prescribed independent testing laboratory testing standards and establishing advertising and labeling requirements for manufacturer hemp products.

(s) Any claim of health impacts, medical effects or physical or mental benefits shall be prohibited on any advertising for, labeling of or marketing of manufacturer hemp products. Any violation of this subsection shall be deemed an unfair or deceptive trade practice under chapter 735a.

(t) Not later than February 1, 2020, the Commissioners of Agriculture and Consumer Protection shall submit a report, in accordance with section 11-4a, to the joint standing committee of the general assembly having cognizance of matters relating to the environment on the status of the pilot program, the development of the state plan and any regulations for such pilot program or state plan. Additionally such report shall include any legislative recommendations, including, but not limited to, any recommendations for requiring the registration of any manufacturer hemp product offered for sale in this state.

(u) Any person who sells manufacturer hemp products shall not be required to be licensed, provided such person only engages in: (1) The retail or wholesale sale of manufacturer hemp products in which no further manufacturing of hemp occurs, provided such manufacturer hemp products are acquired from a person authorized to manufacture the manufacturer hemp products under the laws of this state or another state, territory or possession of the United States or another sovereign entity; (2) the acquisition of manufacturer hemp products for the sole purpose of product distribution for resale; or (3) the retail sale of manufacturer hemp products that is otherwise authorized under federal or state law.

(v) Notwithstanding any provision of the general statutes: (1) Marijuana does not include manufacturer hemp products; (2) CBD that is found in manufacturer hemp products shall not be considered a controlled substance, as defined in section 21a-240, or legend drug, as defined in section 20-571; and (3) cannabinoids derived from hemp and contained in manufacturer hemp products shall not be considered controlled substances or adulterants.