house bill NO. 396

INTRODUCED BY J. Kassmier

By Request of the ****

A BILL FOR AN ACT ENTITLED: "AN ACT CLARIFYING THE DEFINITION OF COMMERCIAL FEED TO INCLUDE THE USE OF HEMP PRODUCTS; AMENDING SECTIONS 80-9-101, 80-9-201, AND 80-9-202, MCA; and PROVIDING EFFECTIVE dates."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 80-9-101, MCA, is amended to read:

"80-9-101. Definitions. Unless the context requires otherwise, in this chapter the following definitions apply:

(1) "AOAC international" means the association of official analytical chemists.

(2) "Brand name" means any word, name, symbol, or device or any combination of them identifying the commercial feed of a licensee or registrant and distinguishing it from that of others.

(3) (a) "Commercial feed" means all materials or combinations of materials that are distributed or intended for distribution for use as feed or for mixing in feed, unless the materials are specifically excluded by law.

(b) The term includes the addition of hemp or a substance derived from hemp for use as feed or for mixing in feed for:

(i) a pet, specialty pet, or horse; or

(ii) for other livestock.

(b)(c) The term does not include unmixed whole seeds and physically altered entire unmixed seeds when those seeds are not chemically changed or adulterated within the meaning of 80-9-204. The department may by rule exclude from this definition or from specific provisions of this chapter commodities such as hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or substances when those commodities, compounds, or substances are not intermixed with other materials and are not adulterated within the meaning of 80-9-204.

(4) "Contract feeder" means a person who, as an independent contractor, feeds commercial feed to animals pursuant to a contract under which the commercial feed is supplied, furnished, or otherwise provided to that person and under which that person's remuneration is determined completely or in part by feed consumption, mortality, profits, or amount or quality of product.

(5) "Customer formula feed" means commercial feed that consists of a mixture of commercial feeds or feed ingredients, each batch of which is manufactured according to the specific instructions of the final purchaser.

(6) "Distribute" means to offer for sale, sell, exchange, or barter commercial feed or to supply, furnish, or otherwise provide commercial feed to a contract feeder.

(7) "Drug" means any article intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in animals, other than humans, and articles other than feed intended to affect the structure or function of the animal body.

(8) "Facility" means something that is built, installed, or established to serve a particular purpose.

(9) "Feed ingredient" means each of the constituent materials making up a commercial feed or a noncommercial feed.

(10) "Guarantor" means a person whose name and principal mailing address appear on the label and who guarantees the information contained on the label as required by 80-9-202. The person may or may not also be the manufacturer.

(11) "Hemp" means all parts and varieties of the plant Cannabis sativa L. containing no greater than 0.3% tetrahydrocannabinol.

(11)(12) "Label" means a display of written, printed, or graphic matter upon or affixed to the container in which a commercial feed is distributed or on the invoice or delivery slip with which a commercial feed is distributed.

(12)(13) "Labeling" means all labels and other written, printed, or graphic matter upon a commercial feed, any of its containers, or its wrapper or accompanying the commercial feed.

(13)(14) "Manufacture" means to grind, mix, blend, or further process a commercial feed.

(14)(15) "Mineral feed" means a commercial feed intended to supply primarily mineral elements or inorganic nutrients.

(15)(16) (a) "Noncommercial feed" means all materials or combinations of materials that are used as feed or for mixing in feed and that are not intended for distribution, unless the materials are specifically excluded by law.

(b) The term does not include unmixed whole seeds and physically altered entire unmixed seeds when those seeds are not chemically changed or adulterated within the meaning of 80-9-204. The department may by rule exclude from this definition or from specific provisions of this chapter commodities such as hay, straw, stover, silage, cobs, husks, hulls, and individual chemical compounds or substances when those commodities, compounds, or substances are not intermixed with other materials and are not adulterated within the meaning of 80-9-204.

(16)(17) "Official sample" means a sample of feed taken by the department in accordance with the provisions of 80-9-301.

(17)(18) "Percent" or "percentage" means percentage by weights.

(18)(19) "Person" means an individual, partnership, corporation, or association.

(19)(20) "Pet" means any domesticated animal normally maintained in or near the household of its owner.

(20)(21) "Pet food" means any commercial feed prepared and distributed for consumption by pets.

(21)(22) (a) "Pet treat" means any commercial feed intended for pets and specialty pets that is not intended to provide complete and balanced nutrition and is fed intermittently for training, reward, enjoyment, or other purposes. Pet treats are classified as a type of pet food and specialty pet food by the department.

(b) A pet treat intended for a cat or a dog that is manufactured in this state and does not contain any medication or drug or meat, poultry, fish, or their byproduct as an ingredient qualifies for certain licensing exemptions and limited labeling and registration requirements under this chapter.

(22)(23) "Product name" means the name of the commercial feed that identifies it as to kind, class, or specific use.

(23)(24) "Quantity statement" means the net weight or mass; net volume, either liquid or dry; or count.

(24)(25) "Specialty pet" means any domesticated animal pet normally maintained in a cage or tank, including but not limited to gerbils, hamsters, canaries, psittacine birds, mynahs, finches, tropical fish, goldfish, snakes, and turtles.

(25)(26) "Specialty pet food" means any commercial feed prepared and distributed for consumption by specialty pets.

(26)(27) "Supplier" means a person who distributes commercial feed into Montana.

(27)(28) "Ton" means a net weight of 2,000 pounds avoirdupois."

Section 2. Section 80-9-201, MCA, is amended to read:

"80-9-201. Licenses and registration. (1) Except as provided in subsection (4)(b), a license is required of a facility or person:

(a) who manufactures commercial feed in this state;

(b) who distributes commercial feed in or into this state; or

(2) (a) A separate license is required for each facility that manufactures commercial feed within this state or for each facility that distributes commercial feed in or into this state. A facility or person that manufactures, distributes, or is a guarantor for commercial feed must be licensed once annually pursuant to this section.

(b) (i) Except as otherwise provided in this subsection (2)(b)(i), all new applicants shall pay a nonrefundable fee of $100 each calendar year for a license for each facility. The department may by rule adjust the license fee to maintain adequate funding for the administration of this part. The fee may not be less than $100 a year or more than $110 a year.

(ii) Except as otherwise provided in this subsection (2)(b)(ii), license renewals received by the department prior to January 1 of each year must be accompanied by a nonrefundable renewal fee of $75 for each license. The department may by rule adjust the license fee to maintain adequate funding for the administration of this part. The fee may not be less than $75 a year or more than $85 a year.

(3) Applicants for licensure shall file with the department information on forms provided by the department, including the following:

(a) the applicant's name and place of business;

(b) the mailing address and physical location of the facility to be licensed;

(d) an indication of whether or not the person applying for licensure is a guarantor.

(4) (a) A license granted under this section remains in force until the end of the calendar year for which it is issued or until canceled by the licensee or by the department for cause. The department may collect a $25 late penalty fee for a license renewal application received after January 1 of any year. A license is nontransferable, and license fees are nonrefundable.

(b) A license is not required for a person who:

(i) distributes only pet food or specialty pet food; or

(ii) manufactures pet treats as defined in ~~80-9-101~~(21)(b) 80-9-101(22)(b) whose total annual sales do not exceed $25,000.

(5) A person who manufactures for distribution or who distributes commercial feed in this state shall, upon written request by the department, submit the following information regarding products distributed in this state:

(a) a list of feed products;

(b) all labeling, promotional material, and claims for any feed product;

(c) analytical methods for ingredients claimed or listed on a label, if the methods are not available from AOAC international; and

(d) replicated data performed by a reputable investigator whose work is recognized as acceptable by the department, verifying any claims for effectiveness of a feed product.

(6) (a) A person may not manufacture for distribution or distribute in this state a pet food, specialty pet food, or pet treat that has not been registered under this section by the manufacturer or the guarantor. Except as otherwise provided in subsection (6)(b), the application for registration must be accompanied by a nonrefundable fee of:

(i) $50 for each pet food or specialty pet food; or

(ii) $25 for each set of up to 20 individual pet treat products that meet the definition provided in ~~80-9-101~~(21)(b). 80-9-101(22)(b).

(b) The department may by rule adjust the registration fee to maintain adequate funding for the administration of this part. The fee may not be less than $50 a year or more than $60 a year for a pet food or specialty pet food and not less than $25 a year or more than an additional $10 a year added to the original assessed amount calculated in subsection (6)(a)(ii) for pet treats as defined in ~~80-9-101~~(21)(b). 80-9-101(22)(b).

(c) The registration of pet food, specialty pet food, and pet treats is for a period of 1 year starting January 1 and ending December 31 of each year.

(7) An applicant for registration of pet food, specialty pet food, or pet treats shall file with the department the following information:

(a) the applicant's name and address; and

(b) a complete standard list of all products being registered.

(8) The department may refuse registration of pet food, specialty pet food, or pet treats that is not in compliance with this chapter and may cancel any registration subsequently found to not be in compliance with this chapter. A registration may not be refused or canceled unless the registrant has been given an opportunity to be heard before the department and to amend the application in order to comply with this chapter."

Section 3. Section 80-9-202, MCA, is amended to read:

"80-9-202. Labeling. (1) A commercial feed, except a customer formula feed, must be accompanied by a label containing:

(a) the quantity statement;

(b) the product name and any brand name under which the commercial feed is distributed;

(c) the guaranteed analysis stated in terms the department by rule determines are required to advise the user of the composition of the feed or to support claims made in the labeling. The substances or elements guaranteed must be determinable by laboratory methods such as the methods published by AOAC international. Pet treats as defined in ~~80-9-101~~(21)(b) 80-9-101(22)(b) are exempt from the guaranteed analysis requirement of this subsection (1)(c).

(d) the common or usual name of each ingredient used in the manufacture of the commercial feed. The department by rule may permit the use of a collective term for a group of ingredients that perform a similar function, or it may exempt commercial feeds or any group of them from this requirement of an ingredient statement if it finds that the statement is not required in the interest of consumers.

(e) the name and principal mailing address of the manufacturer, the person responsible for distributing the commercial feed, or the guarantor;

(f) adequate directions for use for all commercial feeds containing drugs. The department may by rule require directions for the use of other commercial feeds when necessary for their safe and effective use.

(g) precautionary statements that the department by rule determines are necessary for safe and effective use of the commercial feed.

(2) A customer formula feed must be accompanied by a label, invoice, delivery slip, or other shipping document containing:

(a) the name and address of the manufacturer or guarantor;

(b) the name and address of the purchaser;

(d) the specific agreed to composition of the feed or a list of the ingredients, but not necessarily the percentage of each ingredient;

(e) adequate directions for use for all customer formula feed containing drugs. The department may by rule require directions for the use of other customer formula feeds when necessary for their safe and effective use.

(f) precautionary statements that the department by rule determines are necessary for safe and effective use of the feeds;

(g) in cases when a drug-containing product is used in a customer formula feed:

(i) the purpose of the drug in the form of a claim statement; and

(ii) the established name of each active drug ingredient and the level of each drug used in the final mixture, expressed in accordance with the association of American feed control officials model feed regulations, as published in that organization's official publication and adopted by department rule."

Section 4. Effective dates -- contingency. (1) Except as provided in subsection (2), [this act] is effective on passage and approval.

(2) [Section 1(3)(b)(ii)] is effective on the date that the director of the Montana department of agriculture certifies to the code commissioner that the food and drug administration has approved hemp or any substance derived from hemp as an approved additive or defined ingredient in animal food or medicated feed for livestock.