OAR 603-048-0225: Handler 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. (2) Renewal Application. A person with a current valid license may apply for a renewal license by submitting a complete renewal application and renewal fee to the Department by no later than December 1 of the current license year. All application requirements for an initial license apply to an application for renewing a license. (3) 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 licensee of licensure. (4) To apply for a handler license, an applicant must submit to the Department: (a) A complete application to the Department on forms provided by the Department; and (b) All applicable fees as described in OAR 603-048-0700. (5) A person seeking to produce or process agricultural hemp seed must separately apply for and obtain an agricultural hemp seed producer licensure as described in OAR 603-048-0300. (6) An application for a handler licensure must: (a) Include all the following information: (A) The name, legal type of applicant (individual, corporation, etc.), Oregon Secretary of State business registry number for if legal entity required to be registered, and contact information of the applicant; (B) The name and address of applicant’s handling site; (C) 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. (D) Other information for purposes of studying the growth, cultivation, and marketing of industrial hemp as specified by the Department in the application. (b) Include a completed copy of the Department land use compatibility statement (LUCS) for each hemp operation location signed by the local county or government. (c) An informed consent form prescribed by the Department if the applicant is not the owner of the premises where the handling site will be located. The consent form: (A) Is valid for only the applicant(s) named on the consent form. (B) Must be signed by the owner of the premises or the property owner’s legal representative for the handler site and must not have been terminated. (d) Include any other information or forms required by the Department. (7) In addition to the requirements in sections (4) to (6), all applicants for licensure must acknowledge and agree 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 facility used for processing and may take samples of industrial hemp, agricultural hemp seed, or industrial hemp products or commodities as necessary for the administration of the Department’s laws. (c) All fees lawfully due to the Department will be timely paid. (d) Licensure and compliance with these industrial hemp rules may not protect a person from possible criminal prosecution under federal law or other sanctions by federal entities, or from possible criminal prosecution under the laws of other states. (8) The Department, in its discretion, may require an inspection of the handling site prior to issuing a license. (9) Incomplete Applications. (a) If an applicant does not provide all of the information or documentation required in rule or otherwise required by the Department of this 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 of the information required, the Department may notify the applicant of the missing information and allow the applicant 15 days to submit the missing information. (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 and these rules. If an applicant fails to timely submit information, documentation, 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 at any time. If the individual reapplies within the year, the application fee may be applied to a new application. (10) Denial. (a) The Department must deny an initial or renewal application if: (A) The LUCS submitted states that the proposed land use is prohibited in the applicable zone or the LUCS fails to demonstrate that the proposed license activity is permitted; or (B) The applicant fails to satisfy any of the requirements for initial licensure. (b) The Department may deny an initial or renewal application if: (A) The applicant 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. (v) State or federal laws related to the unlawful manufacture, delivery, export or import of marijuana. (B) The application, or documents submitted with 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 applicant or individual member of applicant has a history of noncompliance with OLCC statutes or rules regarding the prohibition on the unregulated commerce of marijuana including but not limited to any violation or disciplinary action under ORS 475C.185 or OAR 845-025-8590(2)(e). (E) There is cannabis plant material at the proposed handling site that: (i) Exceeds 5 percent total THC a dry weight basis calculated in accordance with OAR 333-064-0100(4) that is not otherwise permitted by ORS 475A.305 or under a license issued by OLCC under ORS 475C. (ii) Exceeds permissible possession limits under ORS 475A.305 and is not otherwise authorized under a license issued by OLCC under ORS 475C. (11) Licensure by Reciprocity. A marijuana processor licensed under ORS 475C.085 with a hemp endorsement as described in OAR 845-025-3210 from the OLCC may apply for a handler license by submitting to the Department: (a) A complete reciprocity handler licensure application on forms provided by the Department; (b) A copy of the marijuana processor’s current license and hemp endorsement; (c) All applicable fees as described in OAR 603-048-0700; and (d) Any other forms or documents required by the Department. (12) Ineligibility based on past noncompliance. (a) A handler is ineligible for a handler license for a period of two year from the date a final order is entered revoking the handler’s license. (b) A handler whose application is denied under section (10)(b)(A), (B), or (D) of this rule is ineligible for a period of two year from the date a final order is entered denying the handler’s license. (c) A handler ineligible under this rule may not apply or reapply for a handler license during the period of ineligibility. (d) The Department must deny any handler application submitted by a person ineligible under this rule and shall revoke the license of a person who is ineligible under this rule. (13) The Department may place an application on hold if the applicant, licensee, or proposed site is currently under investigation for violation of ORS 571.260 to 571.348 or these rules, pending a disciplinary action with the Department, or under investigation for violating a state or federal law related to the unlawful manufacture, delivery, export or import of marijuana. (14) If the Department receives written notification from the jurisdiction where a proposed handling site or licensed handling site is located that the LUCS is invalid or is no longer valid, the Department may require the applicant or licensee to obtain a new LUCS. If a new LUCS is not submitted, the Department may deny or revoke the license. If the LUCS submitted states that the proposed land use is prohibited in the applicable zone or otherwise fails to demonstrate that the proposed licensed activity is permitted, the Department shall revoke or deny the license. (15) The Department may not issue a license to an applicant that is a legal entity that is required to be registered with the Oregon Secretary of State but does not have an active registration. (16) The applicant or licensee has outstanding civil penalties and is not making payments consistent with a repayment plan agreed upon by the Department.