(1)(a) To grow or handle industrial hemp, a person must be licensed by the State Department of Agriculture as a grower or handler.

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(b) The department may identify by rule activities related to growing or handling hemp in addition to those described in ORS § 571.269 and may require licensure to engage in those activities. The department may issue, renew, suspend, revoke or refuse to issue or renew a license required pursuant to this subsection.

(2)(a) Only a grower or handler licensed under this section may produce agricultural hemp seed. For a grower or handler to produce agricultural hemp seed, the grower or handler must be licensed by the department as an agricultural hemp seed producer.

(b) Notwithstanding paragraph (a) of this subsection:

(A) A grower licensed under this section that retains agricultural hemp seed for the purpose of personally propagating industrial hemp in a subsequent year is not required to be licensed by the department as an agricultural hemp seed producer; and

(B) A grower or handler licensed under this section that produces Cannabis seeds that are incapable of germination, or a handler licensed under this section that processes Cannabis seeds that are incapable of germination into commodities or products, is not required to be licensed by the department as an agricultural hemp seed producer.

(3) An applicant for a license under this section must submit to the department, in a form and manner prescribed by the department, the following information:

(a) The name and address of the applicant;

(b) The name and address of the industrial hemp operation of the applicant; and

(c) Any other information required by the department by rule.

(4) The department shall adopt rules specifying the period of time for which a license issued under this section is valid. A licensee may renew a license under this section in a form and manner prescribed by the department.

(5) A license under this section is a personal privilege and is not transferable.

(6) A grower or handler licensed under this section must keep records as required by the department by rule. Upon not less than three days’ notice, the department may subject the records to inspection or audit during normal business hours. The department may make an inspection or audit for the purpose of ensuring compliance with:

(a) A provision of ORS § 571.260 to 571.348;

(b) A rule adopted under a provision of ORS § 571.260 to 571.348; or

(c) An order issued by the department pursuant to a provision of ORS § 571.260 to 571.348 or a rule adopted under a provision of ORS § 571.260 to 571.348.

(7) In addition to any inspection conducted pursuant to ORS § 561.275, the department may inspect any crop during the crop’s growth phase and take a representative composite sample for field analysis. If a crop contains an average tetrahydrocannabinol concentration exceeding the concentration specified by the department by rule, the department may detain, seize or embargo the crop as provided under ORS § 561.605 to 561.620, subject to any process established under ORS § 571.345.

(8)(a) The department may charge licensees the following fees in amounts reasonably calculated by the department to pay the cost of administering ORS § 571.260 to 571.348:

(A) Application fees;

(B) License and license renewal fees;

(C) Administrative change fees; and

(D) Fees for other services.

(b) Moneys from fees charged under this subsection shall be deposited in the Industrial Hemp Fund established under ORS § 571.278.

(9) The department may adopt rules establishing public health and safety standards and industry best practices for growers and handlers licensed under this section. [Formerly 571.305; 2021 c.542 § 23]

See note under 571.260.