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HB 5977

Agriculture: industrial hemp; administration of industrial hemp program; modify. Amends sec. 107 of 2020 PA 220 (MCL 333.29107) & repeals secs. 101, 103, 105, 201, 211, 213, 215, 217, 301, 303, 305, 307, 309, 311, 313, 401, 403, 405, 407, 409, 501, 503, 505, 507, 509, 511, 513, 515, 601, 603, 605, 607, 609 & 801 of 2020 PA 220 (MCL 333.29101 et seq.).

2023-2024 Regular Session Introduced by Julie Brixie and 15 co-sponsors

HB 5977 would repeal most of the Industrial Hemp Growers Act, abolish the dedicated hemp fund, and redirect remaining funds to a general agricultural licensing/inspection fee fund.

bill electronically reproduced 09/26/2024
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Bill Summary · HB 5977

Summary — HB 5977 (House Bill No. 5977)

Status: Introduced Sept. 26, 2024; committee referrals and actions through May 2025 (see timeline below). Effective date specified in bill: February 1, 2025.

Main purpose

HB 5977 substantially dismantles the statutory framework created by the Industrial Hemp Growers Act (2020 PA 220). It amends section 107 of that act (the industrial hemp fund) and repeals a large set of other sections of 2020 PA 220, effectively removing most of the Act’s licensing, fee, testing, enforcement, and other program provisions. The bill also abolishes the dedicated industrial hemp fund and directs any unencumbered balance to be transferred to a broader agricultural licensing and inspection fees fund.

Key provisions

  • Amends section 107 (MCL 333.29107):

    • Keeps the industrial hemp fund in statute, authorizes the state treasurer to receive fees and other deposits and credit interest/earnings to the fund.
    • Designates the (statutory) department as the fund administrator for audit purposes.
    • Directs the department to expend fund money to establish, operate, and enforce the program.
    • Abolishes the industrial hemp fund on February 1, 2025, and requires transfer of any unencumbered balance on that date to the "agriculture licensing and inspection fees fund" created under section 9 of the Insect Pest and Plant Disease Act (1931 PA 189, MCL 286.209).

  • Repeals 33 specific sections of 2020 PA 220 (MCL 333.29101 et seq.), including core provisions addressing:

    • Definitions and findings
    • Registration, licensing and application procedures
    • Sampling, testing, and lot disposition
    • Laboratory and inspection requirements
    • Fees (including the fee section cited in the amendment)
    • Enforcement, penalties, recordkeeping, and related administrative provisions
    • Severability/other final provisions

Who is affected

  • Industrial hemp growers, processors, handlers, and laboratories that relied on the 2020 Act’s licensing, testing, and fee structure.
  • The state department designated in the Act (statutory “department”) that administered and enforced the hemp program and managed the fund.
  • State treasury and accounting functions due to abolition and transfer of the dedicated fund.
  • Potentially other state programs and stakeholders if hemp activities revert to other regulatory frameworks or require new legislation/rules.

Potential impacts and considerations

  • Removes (unless replaced elsewhere) the statutory licensing and regulatory structure for industrial hemp created in 2020, which could create regulatory uncertainty for growers, processors, testing labs, and agricultural businesses.
  • Transfers program funds into a broader agricultural licensing and inspection fees fund, potentially changing how hemp-related revenues are budgeted and spent.
  • Because the bill also repeals the statutory fee section(s), there may be gaps in authority to collect program fees after the repeal unless other law or administrative rules fill them.
  • Practical effects will depend on whether the Legislature or executive branch adopts replacement statutes or administrative rules, or transitions program authority into another statutory framework.

Timeline and legislative actions (selected)

  • Introduced and read first time: Sept. 26, 2024 (Rep. Donavan McKinney; referred to Committee on Agriculture).
  • Committee drafting and hearings: late 2024 — early 2025 (public/subject-matter hearings recorded Feb. 2025).
  • Referred to Joint Committee on Finance, Revenue and Bonding and Office of Legislative Counsel/Fiscal Analysis in 2025.
  • Reported out of LCO and given favorable report; tabled for House calendar (May 8, 2025).
  • Effective date in bill: February 1, 2025 (for the amendatory act and fund abolition).

If enacted as written, HB 5977 would largely repeal the Industrial Hemp Growers Act and terminate the separate industrial hemp fund while moving remaining balances into a general agricultural licensing/inspection fee fund — leaving a need for new statutory or regulatory authorities to govern industrial hemp activities going forward.

Compiled from official sources — confirm details with the bill’s official record.

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