Sec. 38. (a) Except as provided in subsection (b), "smokable hemp" means a product containing not more than three-tenths percent (0.3%) delta-9-tetrahydrocannabinol (THC), including precursors and derivatives of THC, in a form that allows THC to be introduced into the human body by inhalation of smoke. The term includes:
(1) hemp bud; and
(2) hemp flower.
(b) The term does not include:
(1) a hemp plant that is; or
(2) parts of a hemp plant that are;
grown or handled by a licensee for processing or manufacturing into a legal hemp product.