OAR 603-048-0800: Enforcement and Civil Penalty for Industrial Hemp Law Violation

(1) A licensee is responsible for: (a) All activities that occur at the grow site, research facility, vendor site or handling site and for ensuring that all activities at the site comply with ORS 571.260 to 571.348 and these rules. If a licensee no longer is operating at a grow site, research facility, vendor site or handling site, the licensee must notify the Department as described in OAR 603-048-0400(2)(b). (b) Any act or omission of a licensee representative in violation of these rules or any provision of ORS 571.260 to 571.348. (2) In addition to any other liability or penalty provided by law, the Department may impose a civil penalty not to exceed $2,500 on any person who violates any provision of ORS 571.260 to 571.348, a rule adopted pursuant thereto, or order issued by the Department under ORS 571.260 to 571.348 or a rule adopted pursuant thereto, including a detainment order. (3) The Department shall issue a written notice to the person being assessed the penalty consistent with ORS Ch. 183. Any contested case to contest the civil penalty will be conducted pursuant to ORS Ch. 183. Each violation may be considered a separate and distinct offense. (4) Subject to the provisions of ORS Ch. 183, (a) the Department may revoke a license issued under these rules if the licensee violates: (A) A provision of ORS 571.260 to 571.348; (B) A rule adopted under a provision of ORS 571.260 to 571.348; (C) An order issued by the Department for violation of a provision of ORS 571.260 to 571.348 or any rule adopted thereunder including a detainment order; (D) Any statutory law or Department rule related to agricultural activities other than industrial hemp operations. (b) the Department may deny, revoke or suspend a license if: (A) An applicant, licensee or an individual listed on the application violates state or federal laws related to the unlawful manufacture, possession, delivery, export or import of marijuana or (B) applicant’s proposed or licensee’s grow site or handling site is a location where unlawful manufacture, possession, delivery, export or import of marijuana occurred. (C) Any cannabis at the proposed or licensed grow site or vendor site exceeds 0.3 percent total THC, or handling site that exceeds 5 percent total THC, and is not otherwise permitted by ORS 475C.305 or under a license issued under ORS 475C. (D) Any finished hemp items at the proposed or licensed grow site or handling site exceed the permissible concentrations in OAR 845-026-0400. (E) Any industrial hemp commodities at the proposed or licensed grow site or handling site exceed five percent total THC and is not otherwise permitted by ORS 475C.305 or under a license issued under ORS 475C. (5) Subject to the provisions of ORS Ch. 183, the Department may revoke a license for any reason that the Department may deny an initial or renewal application. (6) Subject to the provisions of ORS Ch. 183, the Department must revoke a license if: (a) A grower licensee or a key participant is convicted of a felony relating to a controlled substance within the last ten years unless 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 if the conviction also occurred before December 20, 2018; (b) A licensed research grow site or research facility is co-located with a medical marijuana grow site registered under ORS 475C.792 or marijuana producer licensed under ORS 475C.065. (7) Corrective Action Plans. (a) If the Department identifies violations by a licensee, the Department in writing may require a licensee to enter a corrective action plan as an alternative or in addition to disciplinary action. (b) The licensee must submit a corrective action plan to the Department within 10 days of receiving the Department’s written directive to submit a corrective action plan. (c) The licensee must correct all identified violations by the deadline established by the Department. Licensee may request a longer time period to correct violations in the corrective action plan. (d) The Department shall review and determine if the proposed corrective action plan is acceptable. The corrective action plan must include all elements required by the Department in writing. (A) If the corrective action plan is not acceptable, the Department shall notify the licensee in writing which provisions in the Department finds unacceptable. (B) Licensee shall submit a revised corrective action plan to the Department within 10 days of receiving the Department’s notification. The Department shall review the revised plan in accordance with this rule. If the plan is still unacceptable, the Department may take the actions described in subsection (e) of this rule. (e) If the licensee fails to submit a corrective action plan, fails to comply with any deadline in subsection (7) of this rule or other deadline established by the Department for the corrective action plan process, or fails to timely correct all identified violations, the Department may take action to revoke or deny licensee’s license or impose civil penalties.