OAR 603-048-0200: Grower Licensure Applications and Review

(1) Licenses are valid for a one-year term beginning on January 1 of each calendar year. Licenses granted after January 1 are effective on the date issued. (a) An applicant must submit, and the Department must receive, a complete application and applicable fees by no later than May 31 of the calendar year for any grower license. (b) An applicant may submit a grower application late if received by the Department by no later than July 31 and submitted with the late fee for each grow site application identified in OAR 603-048-0700. (c) An applicant is not subject to the May 31 deadline if the applicant has purchased land with an active grower license. No new production areas or grow sites other than those included in the original license may be added or moved after May 31 unless submitted with the late fee identified in OAR 603-048-0700 for each new grow site before July 31. (2) The Department shall review and act on applications in the order they are received. An individual is not licensed with the Department until the Department has approved the license and notified the applicant of licensure. (3) To apply for a grower license, an applicant must submit to the Department: (a) A complete grower license application on a form provided by the Department; (b) A complete grow site application on a form provided by the Department for each proposed grow site; (c) All applicable fees as described in OAR 603-048-0700; and (d) Consent to a criminal records check by fingerprint identification for the applicant or if the applicant is a legal entity, submit a consent for every key participant in the applicant entity in accordance with ORS 181A.195, ORS 181A.200 and OAR chapter 125, division 7 and the Department’s directives. To complete the criminal records check, the Department may require additional information, documents, or action including, but not limited to, fingerprint identification, proof of identity, or additional criminal, judicial, or other background information at any time. Consent for a criminal records check is required only if the applicant or key participant has not passed a criminal records check with the Department in the previous two licensing years or if otherwise required by the Department. The Department may, in its discretion, require a criminal records check at any time. (e) An informed consent form prescribed by the Department if the applicant is not the owner of the premises where the grow site will be located. The consent form: (A) Is valid for only the grower or growers named on the consent form. (B) Must be signed by the owner of the premises or the property owner’s legal representative for the grow site and must not have been terminated. (f) Documentation of lawful participation in a pilot program prior to December 20, 2018, if the applicant or any key participant is disqualified due to a felony conviction relating to a controlled substance within the last ten years from the date of application but asserts the convicted individual was growing hemp lawfully under a pilot program authorized by Section 7606 of the Agricultural Act of 2014 before December 20, 2018. (g) Any other documents or information requested by the Department. (4) A person seeking to produce or process agricultural hemp seed must separately apply for and obtain an agricultural hemp seed producer license as described in OAR 603-048-0300. (5) A grower license application must include the following information: (a) The name, legal type of applicant (individual, corporation, etc.). (b) Contact information for the applicant. (c) For business entities, principal place of business for licensee, Oregon Secretary of State registry number, names of all key participants, employer identification number, and contact information, including phone number and e-mail of all key participants; (d) A primary contact person who the Department can contact to arrange for onsite inspections or for questions regarding the application or license and contact information (phone number, email) for the primary contact person. (e) The address of each grow site; (f) Other information specified by the Department in the application, including but not limited to: (A) The intended use of the industrial hemp (flower, seed, and/or fiber); and (B) The intended number of acres or square feet to be cultivated. (g) Any other information or forms required by the Department. (h) For each proposed grow site location, a completed grow site application form with the following information: (A) The address of the grow site; (B) A grow site map that identifies: (i) All points of ingress or egress to the property, including roads (ii) All structures or buildings; (iii) For any structures or buildings where hemp will be grown, any rooms, walls, doors, and windows in those structures (iv) All production areas using clear boundaries and any barriers or structures within or between production areas. (C) Information for each production area, as described in subsection (D) and (E) of this rule. (D) If in the production area is a field: (i) The global positioning system (GPS) coordinates provided in decimal of degrees and taken at the approximate center of the growing field; and (ii) The number of square feet or acres of each cultivated field. (E) If in the production areas is a greenhouse or other building: (i) The global positioning system (GPS) coordinates provided in decimal of degrees and taken at the approximate center of the greenhouse or other building; and (ii) The approximate dimension or square feet of the greenhouse or other building. (6)(a) To add a grow site or a production area to an existing grower license during the licensed calendar year, the licensed grower must: (A) For additions submitted by May 31 of the license year, submit a complete grow site application form or change form and change fee identified in OAR 603-048-0700 to the Department. (B) For additions submitted after May 31 but no later than July 31, submit a complete grow site application form or change form and a late fee identified in OAR 603-048-0700 for each grow site application. (b) A grower may request that the Department remove a grow site or productions area at any time without a fee. The Department may approve or deny the request. Grow sites and production areas may not be moved or relocated. (c) A grow site or production area may not be added after July 31. (7) Renewal Application. (a) A person with a current valid license may apply for a renewal license by applying as described in subsection (3) and (5) of this rule, submitting an application on a form provided by the Department. (b) The Department must receive the complete renewal application and all applicable fees by no later than December 1 of the current license year. (c) All application requirements for an initial license apply to a renewal application. (d) The Department shall deny an applicant for a renewal if the applicant fails to report the information required in OAR 603-048-0400(7). An application received after December 1 will be treated as an initial application. (8) In addition to the requirements in sections (3) to (7), all applicants must acknowledge and agree in the application that: (a) Any information provided to the Department may be publicly disclosed and may be provided to law enforcement agencies without notice to the applicant or licensee; (b) The Department, or its designee, may enter any field, facility or greenhouse used for the production or handling of industrial hemp or agricultural hemp seed and may take samples of industrial hemp or agricultural hemp seed as necessary for the administration of the Department’s laws. (c) All fees lawfully due to the Department will be timely paid. (d) The information provided is true and correct and that applicant’s signature is an attestation of that fact. (9) The Department, in its discretion, may require an inspection of the grow site prior to licensure. The inspection may include sampling for THC testing. The Department, in its discretion, may require an applicant to conduct pre-harvest testing on any cannabis present at the grow site prior to licensure and submit passing test results to the Department. (10) Incomplete Applications. (a) If an applicant does not provide all information or documentation required by rule or pay the applicable fee, the Department shall reject the application as incomplete. (b) If an application is illegible or is substantially incomplete, the Department may summarily reject the application as incomplete. If an applicant fails to provide all information or documentation required, the Department may notify the applicant of the missing information or documentation and allow the applicant 15 days to submit the missing information or documentation. If the applicant fails to timely submit all the missing information or documentation, the Department shall reject the application as incomplete. (c) The Department may verify the information submitted, verify any accompanying documentation submitted with an application, or request additional information, documentation, or attestation from the applicant to ensure compliance with ORS 571.260 to ORS 571.348. If an applicant fails to timely submit information, documentation, criminal history check, or attestation requested by the Department, the Department shall reject the application as incomplete. (d) An applicant whose application is rejected as incomplete may reapply until May 31 of the calendar year or July 31 with the late fee identified in OAR 603-048-0700. If the individual reapplies by May 31 of the calendar year or July 31 with the late fee identified in OAR 603-048-0700, the application fee may be applied to a new application. An applicant who reapplies after May 31 shall be denied unless they apply by July 31 and submit the late fee identified in OAR 603-048-0700. (11) Denial. (a) The Department must deny an initial or renewal grow site and grower application if: (A) The applicant fails to satisfy any of the requirements for initial licensure. (B) The applicant or any key participant has been convicted of a felony relating to a controlled substance within the last ten years from the date of application unless the conviction also occurred before December 20, 2018, the convicted individual was growing hemp lawfully under a pilot program authorized by Section 7606 of the Agricultural Act of 2014 before December 20, 2018, and documentation of the participation is submitted with the application. (C) The applicant or any key participant plants an industrial hemp crop or commits a violation of ORS 571.260 to ORS 571.348 prior to applying for a grower license unless: (i) the applicant disposes the industrial hemp crop in accordance with OAR 603-048-0640 within 14 days of the Department’s notification to the applicant, unless the Department grants an extension in writing; and (ii) the Department determines the violation is resolved. (D) Required to deny under OAR 603-048-0126. (E) The applicant or any key participant materially falsifies any information or documentation submitted in or with an application. (F) Any production areas identified in the application are within the boundaries of another licensed hemp grow site, a licensed recreational marijuana premises, or a plot at a medical marijuana grow site. (G) The applicant or licensee has outstanding civil penalties and is not making payments consistent with a repayment plan agreed upon by the Department. (b) The Department may deny an initial or renewal grow site or grower application if: (A) The applicant or any key participant violated or has a history of noncompliance with: (i) A provision of ORS 571.260 to ORS 571.348; (ii) A rule adopted under a provision of ORS 571.260 to ORS 571.348; (iii) An order issued by the Department pursuant to a provision of ORS 571.260 to ORS 571.348 or a rule adopted thereunder, including a detainment order; (iv) Any statutory law or Department rule related to agricultural activities other than industrial hemp operations. (B) The application, or material submitted with or to supplement the application, contains false, misleading, or incorrect information; (C) The applicant is a legal entity that is required to be registered with the Oregon Secretary of State but does not have an active registration; (D) The owner of the proposed grow site or the property owner’s legal representative notifies the Department in writing that they have withdrawn consent for applicant to produce hemp at the proposed grow site location; or (E) The applicant, or any key participant, has a history of noncompliance with OLCC statutes or rules regarding the prohibition on the unregulated commerce of marijuana items including but not limited to any violation or disciplinary action under ORS 475C.185 or OAR 845-025-8590(2)(e). (F) Issuing the license would be a violation of or inconsistent with the Agriculture Improvement Act of 2018 (P.L. 115-334) or 7 CFR Part 990. (G) The applicant fails to complete pre-harvest testing in accordance with OAR 603-048-0600 upon Department request, cannabis at the proposed grow site fails pre-harvest testing, or any cannabis at the proposed grow site exceeds 0.3 percent total THC and is not otherwise permitted by ORS 475C.305 or under a license issued under ORS 475C. (12) Ineligibility based on past noncompliance. (a) A grower, and all key participants, is ineligible for a grower license for a period of five years if the grower commits three of any of the violations below over a five-year-period: (A) the grower produces cannabis that exceeds 1.0 percent THC on a dry weight basis; (B) the grower fails to provide a legal description of land on which the grower produces hemp; (C) the grower fails to obtain a license under these rules prior to producing hemp. (b) Only for the purposes of determining ineligibility under subsection (a) of this rule: (A) A grower shall accrue a maximum of one violation per year. (B) The period of ineligibility begins on the date that the last violation is found in a final order by the Department. (c) A grower, and all key participants, is ineligible for a grower license for a period of two year from the date a final order is entered revoking the grower’s license, except for final orders issued pursuant to subsection (a) of this rule where the ineligibility period of five years. (d) A grower or key participant whose application is denied under OAR 603-048-0126(1)(a) or section (11)((b), (B), or (E) of this rule, is ineligible for a period of two year from the date a final order is entered denying the grower’s license, except for final orders issued pursuant to subsection (a) of this rule where the ineligibility period is five years. (e) A grower or key participant ineligible under this rule may not apply or reapply for a grower license during the period of ineligibility. (f) The Department must deny any grower application submitted by a person ineligible under this rule and shall revoke the license of a person who is ineligible under this rule. (g) Nothing in this rule prevents the Department from assessing multiple violations or from taking other action to revoke or deny a license or impose civil penalties. (13) The Department may place an application on hold if the applicant, licensee, any key participant, or the proposed grow site is currently under investigation for violation of ORS 571.260 to 571.348, these rules, other cannabis laws or statutes, or pending a disciplinary action with the Department, (14) The Department may not issue a license to an applicant that is a legal entity if it is required to be registered with the Oregon Secretary of State but does not have an active registration.