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09-03-20 9395 9/3/2020 12/2/2020 Department of state Division of Publications 312 Rosa L. Parks Ave., 8th Floor, Snodgrass/TN Tower Nashville, TN 37243 Phone: 615-741-2650 Email: [email protected] For Department of State Use Only Sequence Number: ______ _ Rule ID(s): _____ _ File Date: ------- Effective Date: ------- Rulemaking Hearing Rule(s) Filing Form Rulemaking Hearing Rules are rules nted after and as a result of a rulemaking heanng (Tenn. Code Ann. § 4-5-205). Pursuant to Tenn. CiXle Ann. § 4-5-229, any new fee or fee increase promulgated by state agency rule shall take effect on July 1, following the expiration of the ninety (90) day period as provided in§ 4- 5-207. This section shall not apply to rules that implement new fees or fee Increases that are promulgated as emergency rules pursuant to§ 4-5-208(a) and to subsequent rules that make permanent such emergency rules, as amended dunng the rulemaklng process. In addition, this section shall not apply to state agencies that did not, during the preceding two (2) fiscal years, co/feet fees in an amount sufficient to pay the cost of operating the board, commission or entity in accordance with§ 4- 29-121(b). Agency/Board/Commission: Department of Agriculture Division: Consumer and Industry Services Contact Person: David Waddell Address: 440 Hogan Road, Nashville, TN Zip: 37220 Phone: 615-837-5331 Email: David. [email protected] Revision Type {check all that apply): X Amendment New __ Repeal Rule(s) (ALL chapters and rules contained in filing must be listed here. If needed, copy and paste additional tables to accommodate multiple chapters. Please make sure that ALL new rule and repealed rule numbers are listed in the chart below. Please enter only ONE Rule Number/Rule Title per row) Chapter Number r 0080-06-28 I Rule Number 0080-06-28-.01 0080-06-28-.02 0080-06-28-.03 0080·06-28-.04 0080-06-28-.05 0080-06-28-.06 0080-06-28-.07 0080-06-28-. 08 0080-06-28-. 09 Chapter Title Hem Rule Title Seo e Definitions License Application and Fees USDA Reports Crop Distribution Movement Permits Sam ling_and Ins ections N l.!!gent Violations Violations 55-7039 (October 2018) --1 1 RDA 1693 Withdrawal of rules filed October 21, 2020. See page 27.

Rulemaking Hearing Rule(s) Filing FormSep 03, 2020  · (c) More than 20 acres: Tier 8 fee. (5) The annual fee for a hemp broker license is assessed under T.C.A. § 43-1-703(f) and

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Page 1: Rulemaking Hearing Rule(s) Filing FormSep 03, 2020  · (c) More than 20 acres: Tier 8 fee. (5) The annual fee for a hemp broker license is assessed under T.C.A. § 43-1-703(f) and

09-03-2093959/3/202012/2/2020

Department of state Division of Publications 312 Rosa L. Parks Ave., 8th Floor, Snodgrass/TN Tower Nashville, TN 37243 Phone: 615-741-2650 Email: [email protected]

For Department of State Use Only

Sequence Number: ______ _

Rule ID(s): _____ _

File Date: -------Effective Date: -------

Rulemaking Hearing Rule(s) Filing Form Rulemaking Hearing Rules are rules nted after and as a result of a rulemaking heanng (Tenn. Code Ann. § 4-5-205).

Pursuant to Tenn. CiXle Ann. § 4-5-229, any new fee or fee increase promulgated by state agency rule shall take effect on July 1, following the expiration of the ninety (90) day period as provided in§ 4-5-207. This section shall not apply to rules that implement new fees or fee Increases that are promulgated as emergency rules pursuant to§ 4-5-208(a) and to subsequent rules that make permanent such emergency rules, as amended dunng the rulemaklng process. In addition, this section shall not apply to state agencies that did not, during the preceding two (2) fiscal years, co/feet fees in an amount sufficient to pay the cost of operating the board, commission or entity in accordance with§ 4-29-121(b).

Agency/Board/Commission: Department of Agriculture Division: Consumer and Industry Services

Contact Person: David Waddell Address: 440 Hogan Road, Nashville, TN

Zip: 37220 Phone: 615-837-5331 Email: David. [email protected]

Revision Type {check all that apply): X Amendment

New __ Repeal

Rule(s) (ALL chapters and rules contained in filing must be listed here. If needed, copy and paste additional tables to accommodate multiple chapters. Please make sure that ALL new rule and repealed rule numbers are listed in the chart below. Please enter only ONE Rule Number/Rule Title per row)

Chapter Number

r 0080-06-28 I Rule Number

0080-06-28-.01 0080-06-28-.02 0080-06-28-.03 0080·06-28-.04 0080-06-28-.05 0080-06-28-.06 0080-06-28-.07 0080-06-28-. 08 0080-06-28-. 09

Chapter Title

Hem Rule Title Seo e Definitions License Application and Fees USDA Reports Crop Distribution Movement Permits Sam ling_and Ins ections N l.!!gent Violations Violations

55-7039 (October 2018)

--1

1 RDA 1693

Withdrawal of rules filed October 21, 2020. See page 27.

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Amendments

Chapter 0080-06-28 Hemp

Chapter 0080-06-28 Industrial Hemp is amended by re-titling the chapter "Hemp".

Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.01 Scope is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.01 Scope.

(1) This chapter applies to any person who grows or possesses rooted hemp.

(2) Persons licensed under this chapter shall be responsible for operations conducted under their license until either the applicable license expires, or the department receives written notification from the licensee desiring to terminate the license. The department shall not refund fees for early termination of any license issued under this chapter.

(3) Licenses issued under this chapter are not transferable from person to person or location to location.

Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.02 Definitions is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.02 Definitions.

(1) Terms in this chapter share those meanings of terms set forth in T.C.A. § 43-27-101 et seq.

(2) When used in this chapter, unless the context requires otherwise:

(a) Act means T.C.A. § 43-27-101 et seq.;

(b) Acceptable hemp THC level means that when a laboratory tests a sample, it must report the delta-9 tetrahydrocannabinol content concentration level on a dry weight basis and the measurement of uncertainty. The acceptable hemp THC level is when the application of the measurement of uncertainty to the reported delta-9 tetrahydrocannabinol content level on a dry weight basis produces a distribution or range that includes 0.3% or less;

(c) Cannabis plant means any plant or any part of a plant of the genera Cannabis and includes hemp;

(d) Grow means to cultivate plants with attached roots;

(e) Growing area means any contiguous land area licensed for the growth of hemp. Bifurcation of a growing area by roads, fencing, or the like shall not render the area non-contiguous under this definition;

(f) Hemp producer means a person that produces hemp for harvest;

(g) Hemp broker means a person that purchases and sells hemp plants grown by others;

(h) Hemp propagator means a person that produces clones or seedlings for retail sale;

(i) Key participants mean a sole proprietor, a partner in a partnership, or a person with executive managerial control in a corporation. A person with executive managerial control includes persons

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such as a chief executive officer, chief operating officer, and chief financial officer. The definition does not include non-executive managers such as farm, field, or shift managers;

(j) Move, distribute, transport, or similar words mean to relocate in any manner an item from one real property to another;

(k} Person means an individual, partnership, corporation, or any other form of legal entity;

(I} Sample means to take material, or the material taken from a location licensed by the department;

(m) Stop movement order means a written directive issued by the department to prohibit or limit the movement of plants or plant parts;

(n) THC means delta-9 tetrahydrocannabinol; and

(o) USDA means United States Department of Agriculture.

Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.03 License Application and Fees is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.03 License Application and Fees.

(1) A hemp license is required to possess rooted hemp and is issued to each person for each physical address where the person grows or possesses rooted hemp.

(2) Application for a license shall be made on forms provided by the department, which shall be completed in full and shall include:

(a) Name of applicant;

(b) Date of birth of any applicant who is an individual or a partner in a general partnership;

(c) Proof of one of the following for any applicant that is not an individual or a partner in a general partnership:

1 . Applicant's registration in its state of incorporation; or

2. Applicant's business license issued by a local governmental authority;

(d) Contact information for applicant, to include name of the key participant, telephone number, email address, and address of the principal place of business;

(e) Address of the location to be licensed for growth of hemp and description of all growing areas at the location, including total number of growing acres and Global Positioning System (GPS) coordinates from the areas' central most points; and

(f) Other information as required by the department.

(3) Licensees shall notify the department of any changes to contact information of an application within 30 days after the change takes place.

(4) The annual fee for a hemp producer license is assessed under T.C.A. § 43-1-703(f) and is determined according to the total size of growing area(s) at the licensed address:

(a) Less than 5 acres: Tier 6 fee;

(b) 5 acres to 20 acres: Tier 7 fee;

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(c) More than 20 acres: Tier 8 fee.

(5) The annual fee for a hemp broker license is assessed under T.C.A. § 43-1-703(f) and is a Tier 7 fee.

(6) The annual fee for a hemp propagator license is assessed under T.C.A. § 43-1-703(f) and is a Tier 7 fee.

(7) The annual fee for any combination of a hemp producer, broker, or propagator license is a single fee equal to the highest amount of the license for which the applicant requests.

(8) License applicants shall submit an application and license fee to the department on or before October 1 of each year. The annual license fee shall be waived for any institute of higher education that offers programs of study in agricultural sciences seeking licensure for a growing area on university property. Licenses expire on September 30 following their issuance. If an applicant for renewal fails to submit payment of the license fee on or before the foll owing October 16, the applicant shall also be required to pay a late charge assessed under T.C.A. § 43-1-703 prior to renewal of the license.

(9) The department may deny any application for licensure that is not completed in accordance with this rule.

(10) Any person who materially falsifies any information in their application shall be ineligible to participate in the program.

Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.04 Acquisition of Seed and Propagules is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.04 USDA Reports.

(1) The department shall collect, maintain, and report to USDA on a timely basis:

(a) The contact information for each licensed producer;

(b) A description of the land on which the producer will produce hemp; and

(c) The status and the license number.

(2) The department shall notify USDA of any change to the license information within 30 days of the department becoming aware of the change.

(3) All producers shall report hemp crop acreage to the USDA Farm Service Agency within 30 days of obtaining a license and shall provide the following information:

(a) Street address and the GPS location of the lot, greenhouse, building, or site hemp will be grown.

(b) Acreage dedicated to the production of hemp, or greenhouse or indoor square footage dedicated to the production of hemp.

(c) The hemp license number.

Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.05 Crop Distribution, Destruction, and Return is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

. 0080-06-28-.05 Crop Distribution.

Distribution. Licensees shall not distribute rooted hemp to an unlicensed person. Any person may possess, distribute, or store non-rooted hemp.

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Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.06 Movement Permits is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.06 Movement Permits.

(1) Licensees shall not move rooted hemp plants without a valid movement permit issued by the department. Licensees shall not move any hemp to anyone who treats or transforms harvested hemp for distribution in commerce without a valid movement permit issued by the department.

(2) Hemp movement permits are required per vehicle per day. To receive a movement permit, the licensee shall submit a movement permit request on forms provided by the department, which may require:

(a) The hemp license number for which movement is requested;

(b) Origin and destination of movement;

(c) Date of intended movement;

(d) Weight, volume, or number of units of material to be moved.

(3) The department may deny any application for a movement permit that is not completed In accordance with this rule.

(4) Each cannabis plant or plant product moved not in conformity with this rule shall constitute a separate violation of this chapter.

Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.07 Sampling and Inspections is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.07 Sampling and Inspections.

(1) The department or a designated representative may enter during normal business hours any location, licensed by the department, for purposes of inspecting any cannabis plant, record, or other material as necessary for the efficient enforcement of the Act and this chapter.

(2) Sampling.

(a) The department or a designated representative, trained and approved by the department, may conduct sampling of any cannabis plant or other material at a location licensed by the department.

(b) A sample collected according to uniform protocols approved by the commissioner shall be deemed representative of the location, growing area, or lot from which the sample was obtained.

(c) Within 15 days prior to the anticipated harvest the department shall collect samples from the flower material for THC level testing.

(d) During a scheduled sample collection, the producer or an authorized representative shall be present at the growing site.

(e) A producer shall not harvest the hemp crop prior to samples being taken.

(f) Samples from different lots shall not be comingled.

(3) Testing protocols. The procedure employed by the Tennessee Department of Agriculture defines the preparation and analysis of hemp samples for the quantitative determination of cannabinoids, including

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delta-9-THC, on a dry weight basis and is conducted in a manner similarly reliable to post-decarboxylation and considers the potential conversion of delta-9 tetrahydrocannabinolic acid (THC-A) In hemp into THC and the test result measures total available THC derived from the sum of THC and THC-A content.

After excluding extraneous material, samples are comminuted to facilitate representative subsampling. Test portions are taken for moisture determination, and cannabinoids are extracted from separate test portions by adding a suitable solvent and subsequent mechanical shaking. The resulting extract is centrifuged and diluted as needed. During instrumental analysis, these prepared sample extracts are separated into their individual components using liquid chromatography prior to detection. Quantitation is accomplished by comparing instrument responses for unknown samples with those for standards of known concentration using a linear regression and measurement of uncertainty that characterizes the dispersion of the values that could reasonably be attributed to the particular quantity subject to measurement. Quality control samples are analyzed alongside unknown samples to demonstrate statistical control of the procedure.

(4) The department and growers may utilize private DEA registered laboratories when appropriate for testing official samples, if the laboratory meets the standards set by USDA for such work including a measurement of uncertainty and the sample is sent directly to the laboratory by the sampler. The department's laboratory shall serve as the reference laboratory for all samples.

(5) Test results exceeding the acceptable hemp THC level. Any sample test result higher than 0.3% THC concentration on a dry weight basis shall be conclusive evidence that one or more cannabis plants or plant products from the area sampled contain a THC concentration In excess of that allowed under the Act and cannot be further handled, processed, or enter commerce and the licensee shall ensure the lot is disposed of in accordance with a directive from the department, which my include destruction by burning, plowing under, disking, mulching, bush mower, or deep burial.

(6) Appeals. Any licensee aggrieved by an order issued under this chapter may petition the department in writing for review of the order under the Uniform Administrative Procedures Act. If no petition is filed with the department within ten days of the department's order, the order shall become final and will not be subject to review.

(7) The department shall notify USDA of non-compliant plants and disposal of those plants along with sample results.

(8) Laboratory analysis costs. Licensees shall pay a Tier 4 laboratory analysis fee under T.C.A. §43-1-703(f) for each sample tested by the department.

Authority: T.C.A. §§ 4-3-203 and 43-27-104.

Rule 0080-06-28-.08 Agronomic Reports is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.08 Negligent Violations.

(1) Negligent violations shall include, but not limited to:

(a) Failure to provide a legal description of land on which the producer produces hemp;

(b) Failure to obtain a license; and

(c) Production of cannabis at a THC concentration exceeding the acceptable limits.

(2) Hemp producers do not commit a negligent violation under this paragraph if they make reasonable efforts to grow hemp and the cannabis does not have a THC concentration of more than .5% on a dry weight basis.

(3) A producer that negligently violates this chapter three times in a 5-year period shall be ineligible to produce hemp for a period of 5 years beginning on the date of the third violation.

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(4) All negligent violations shall be corrected using a corrective action plan and shall, at a minimum, include the following items:

(a) A reasonable date by which the producer shall correct the negligent act;

(b) That the producer will periodically report to the department progress in correcting the violation; and

(c) The department shall conduct an inspection to determine if the action plan has been implemented.

T.C.A. §§ 4-3-203 and 43-27-104

Rule 0080-06-28-.09 Violations is amended by deleting the rule in its entirety and substituting instead the following language so that, as amended, the rule shall read:

0080-06-28-.09 Violations.

(1) In addition to other requirements of this chapter, licensees shall not:

(a) Possess or grow rooted hemp outside a licensed growing area or unless under immediate transport to a licensed growing area; and,

(b) Refuse to provide full and accurate information regarding the person's acquisition, cultivation, and distribution of hemp.

(c) Be convicted of any drug-related felony offense in any state or federal jurisdiction within the previous ten years. Violation of this provision is grounds for immediate denial or revocation of any license issued under this chapter;

(d) Cultivate, move, or distribute cannabis plants other than hemp;

(e) Interfere with an authorized representative of the department in the performance of his duties;

(f) Market or represent hemp or hemp products to be marijuana or any illicit substance in any form; or,

(g) Violate any state or federal quarantine or order issued by the department.

(2) A person is responsible for violations of the Act or this chapter when committed by either the person or his agent.

(3) Each violation of the Act or this chapter is grounds for issuance of stop movement or destruction orders against any cannabis plant held by the violator or his agent; denial or revocation of any license issued under this chapter; actions for injunction; imposition of civil penalties; or referral for criminal investigation pursuant to the Act.

Authority: T .C.A. §§ 4-3-203 and 43-27-104.

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• If a roll -call vote was necessary, the vote by the Agency on these rulemaking hearing rules was as follows:

Board Member Aye No Abstain Absent Signature (if required)

I certify that this is an accurate and complete copy of rulemaking hearing rules, lawfully promulgated and adopted by the department of agriculture on 09/24/2019 and is in compliance with the provisions of T.C.A. § 4-5-222.

I further certify the following:

Notice of Rulemaking Hearing filed w ith the Department of State on: 07/30/2019 ---------------------Rulemaking Hearing(s) Conducted on: (add more dates). 09/24/2019 --'--'------------------

Date: 07/09/2020

Signature: -------- - ------- -------Name of Officer: Charlie Hatcher D.V.M.

Title of Officer: Commissioner -----------------------

Subscribed and sworn to before me on :

Notary Public Signature:

My commission expires on: -------------------

Agency/Board/Commission: Tennessee Department of Agriculture

Rule Chapter Number(s): 0080-06-28 ---------------------- -----------All rulemaking hearing rules provided for herein have been examined by the Attorney General and Reporter of the State of Tennessee and are approved as to legality pursuant to the provisions of the Administrative Procedures Act, Tennessee Code Annotated, Title 4, Chapter S.

Attorney General and Reporter

t::t/2-/J.oz,,o ( ! Date

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SS-7039 (October 2018) RDA 1693 9

Department of State Use Only

Filed with the Department of State on:

Effective on:

_________________________________ Tre Hargett

Secretary of State

Public Hearing Comments

David Waddell served as the hearing officer at the rulemaking hearing. There were no comments written or oral.

9/3/2020

12/2/2020

IE21AMH
RG Date Stamp
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Regulatory Flexibility Addendum

Pursuant to T.C.A. §§ 4-5-401 through 4-5-404, prior to initiating the rule making process, all agencies shall conduct a review of whether a proposed rule or rule affects small business.

(1) Type or types of small business subject to the proposed rule that would bear the cost of, and/or directly benefit from the proposed rule:

Hemp growers, processors, manufacturers, and retailers are affected by these rules.

(2) Identification and estimate of the number of small businesses subject to the proposed rule:

Approximately 4,000 hemp growers and small hemp businesses are expected to be subject to this rule.

(3) Projected reporting, recordkeeping and other administrative costs required for compliance with the proposed rule, including the type of professional skills necessary for preparation of the report or record:

The hemp growers will have additional record keeping requirements as prescribed by the federal program. There is no advanced skill required.

(4) Statement of the probable effect on impacted small businesses and consumers:

Growers are subject to stricter standards for THC content in their hemp crop. Advanced reporting requirements to both state and federal will impact growers.

(5) Description of any less burdensome, less intrusive or less costly alternative methods of achieving the purpose and/or objectives of the proposed rule that may exist, and to what extent, such alternative means might be less burdensome to smal l business:

No less burdensome rules are possible and sti ll be compliant with the federal rules.

(6) Comparison of the proposed rule with any federal or state counterparts:

These rules are consistent with the USDA standards for state hemp programs to qualify for approval.

(7) Analysis of the effect of the possible exemption of small businesses from all or any part of the requirements contained in the proposed ru le.

Any amount of hemp grown in the state is subject to these rules by both state and federal statutes.

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Impact on Local Governments

Pursuant to T.C.A. §§ 4-5-220 and 4-5-228 "any rule proposed to be promulgated shall state in a simple declarative sentence, without additional comments on the merits of the policy of the rules or regulation, whether the rule or regu la ti on may have a projected impact on local governments." (See Public Chapter Number 1070 (http.ljpublications. tnsosfiles.com/acts/106/pub/pc 1070. pdf) of the 2010 Session of the General Assembly)

There is no impact on local government.

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Additional Information Required by Joint Government Operations Committee

All agencies, upon filing a rule, must also submit the following pursuant to T.C.A. § 4-5-226{i)(1).

(A) A brief summary of the rule and a description of all relevant changes in previous regulations effectuated by such rule;

These rules amend the current ru les to make them compliant with federal law that legalized hemp. The changes required are in the areas of inspection, sampling, testing, and violations.

(B) A citation to and brief description of any federal law or regulation or any state law or regulation mandating promulgation of such rule or establishing guidelines relevant thereto;

7 CFR Part 990 Establishment of a Domestic Hemp Production Program. This part establishes the parameters of state hemp programs.

(C) Identification of persons, organizations, corporations or governmental entities most directly affected by this ru le, and whether those persons, organizations, corporations or governmental entities urge adoption or rejection of this rule;

Hemp growers are primarily affected . Hemp processors, manufacturers, and retailer are tangentially affected . All these groups urge adoption of the rule.

(D) Identification of any opin ions of the attorney general and reporter or any judicial rul ing that directly relates to the rule or the necessity to promulgate the rule;

Tenn. Op. Atty. Gen. No. 18-46 opines on theoretical passage and constitutional provisions of cannabis and hemp legislation.

(El An estimate of the probable increase or decrease in state and local government revenues and expenditures, if any, resulting from the promulgation of th is rule, and assumptions and reasoning upon which the estimate is based. An agency shall not state that the fiscal impact is minimal if the fiscal impact is more t han two percent (2%) of the agency's annual budget or five hundred thousand dollars ($500,000), whichever is less;

I These rules have minimal fiscal impact.

(F) Identification of the appropriate agency representative or representatives, possessing substantial knowledge and understanding of the rule;

David Waddell

(G) Identification of the appropriate agency representative or representatives who will explain the rule at a scheduled meeting of the committees;

David Waddell

(H) Office address, telephone number, and email address of the agency representative or representatives who will explain the ru le at a scheduled meeting of the committees; and

I 442 Hogan Road, Nashville, TN 37220; 615-837-5331; David [email protected]

(I) Any additional information relevant to the rule proposed for continuation that the committee requests.

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INDUSTRIAL HEMP CHAPTER 0080-06-28

(Rule 0080-06-28-.09, continued)

RULES OF

THE TENNESSEE DEPARTMENT OF AGRICULTURE DIVISION OF COMSUMER AND INDUSTRY SERVICES

CHAPTER 0080-06-28 INDUSTRIAL HEMP

0080-06-28-.01 Scope 0080-06-28-.02 Definitions 0080-06-28-.03 License Application and Fees 0080-06-28-.04 Acquisition of Seed and Propagules USDA Reports 0080-06-28-.05 Crop Distribution, Destruction, and

Return 0080-06-28-.06 Movement Permits 0080-06-28-.07 Sampling and Inspections 0080-06-28-.08 Agronomic Reports Negligent Violations 0080-06-28-.09 Violations

0080-06-28-.01 SCOPE.

(1) This chapter applies to any person who cultivates, processes, or distributes industrial hemp.

(2) All distribution of industrial hemp and industrial hemp products in commerce is permissible to the extent of the department’s authority under the Act and is conducted for the purpose of researching the marketability of industrial hemp through the department’s industrial hemp pilot program. This research initiative includes the distribution of any industrial hemp cultivated or processed by a person licensed under this chapter and the distribution in this state of any industrial hemp or hemp product lawfully cultivated or processed under the jurisdiction of a foreign state.

(3) Neither the Act nor this chapter exempt any person from enforcement of other regulations

applicable to particular uses of industrial hemp, including but not limited to food safety regulations for food products and feed regulations for commercial feed products.

(4) Persons licensed under this chapter shall be responsible for operations conducted under their

license until either the applicable license expires or the department receives written notification from the licensee desiring to terminate the license. The department shall not refund fees for early termination of any license issued under this chapter.

(5) Licenses issued under this chapter are not transferable from person to person.

(6) Licenses issued under this chapter are not transferable from location to location without prior

written authorization from the department. Once a license is issued for a particular growing area, the department shall not authorize changes to increase or relocate the growing area absent extraordinary circumstances.

(1) This chapter applies to any person who grows or possesses rooted hemp.

(2) Persons licensed under this chapter shall be responsible for operations conducted under their license until either the applicable license expires, or the department receives written notification from the licensee desiring to terminate the license. The department shall not refund fees for early termination of any license issued under this chapter.

(3) Licenses issued under this chapter are not transferable from person to person or location to location.

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Authority: T.C.A. §§ 4-3-203 and 43-267-103. .

0080-06-28-.02 DEFINITIONS.

(1) Terms in this chapter share those meanings of terms set forth in the Tennessee Right to

Farm Act, T.C.A. §§ 43-26-101, et seq.

(2) When used in this chapter, unless the context requires otherwise:

(a) Act means the Tennessee Right to Farm Act, compiled at T.C.A. §§ 43-26-101, et seq.;(b) Cannabis plant means any plant or any part of a plant of the genera Cannabis and includes industrial hemp;

(c) Certified seed, grown from certified seed, or words of similar import mean:

1. Grown from industrial hemp seed certified by a certifying agency as defined in

T.C.A. § 43-10-103; or,

2. Grown from a lineage of mother plants that originated by growth from seed certified by a certifying agency as defined in T.C.A. § 43-10-103;

(d) Commerce or words of similar import mean involving payment for an item or payment

for services incident to production of the item;

(e) Growing area means any contiguous land area for the growth of industrial hemp. Bifurcation of a growing area by roads, thoroughfares, fencing or the like shall not render the area non-contiguous under this definition;

(f) Landrace varieties, seed or propagules derived from landrace varieties, or words of

similar import mean any plant material grown from an industrial hemp variety found within the continental United States that is not traceable to growth from certified seed;

(g) License or words of similar import mean a valid license or registration issued under this

chapter;

(h) Mother plant means an industrial hemp plant from which propagules are cultivated;

(i) Move, distribute, transport, or words of similar import mean to relocate in any manner an item from one real property to another;

(j) Nonviable means unable to regenerate, reproduce, or survive;

(k) Person means an individual, partnership, corporation, or any other form of legal entity;

(l) Process industrial hemp means to treat or transform harvested industrial hemp from its natural state for distribution in commerce;

(m) Propagule means any viable plant material cultivated from a mother plant;

(n) Sample or sampling means any cannabis plant or other material taken by the

department from a location licensed for the cultivation or processing of industrial hemp;

(o) Stop movement order means a written directive issued by the department to prohibit or limit the movement of plants or plant parts;

(p) THC means delta-9 tetrahydrocannabinol; and,

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(q) University means an institution of higher education as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C.A. § 1001), located within the state that offers one or more baccalaureate or post-graduate level programs of study in agricultural sciences.

(1) Terms in this chapter share those meanings of terms set forth in T.C.A. § 43-27-101 et seq. (2) When used in this chapter, unless the context requires otherwise:

(a) Act means T.C.A. § 43-27-101 et seq.; (b) Acceptable hemp THC level means that when a laboratory tests a sample, it must report the

delta-9 tetrahydrocannabinol content concentration level on a dry weight basis and the measurement of uncertainty. The acceptable hemp THC level is when the application of the measurement of uncertainty to the reported delta-9 tetrahydrocannabinol content level on a dry weight basis produces a distribution or range that includes 0.3% or less.

(c) Cannabis plant means any plant or any part of a plant of the genera Cannabis and includes

hemp; (d) Grow means to cultivate plants with attached roots; (e) Growing area means any contiguous land area licensed for the growth of hemp. Bifurcation

of a growing area by roads, fencing, or the like shall not render the area non-contiguous under this definition;

(f) Hemp producer means a person that produces hemp for harvest; (g) Hemp broker means a person that purchases and sells hemp plants grown by others; (h) Hemp propagator means a person that produces clones or seedlings for retail sale; (i) Key participants mean a sole proprietor, a partner in a partnership, or a person with

executive managerial control in a corporation. A person with executive managerial control includes persons such as a chief executive officer, chief operating officer, and chief financial officer. The definition does not include non-executive managers such as farm, field, or shift managers.

(j) Move, distribute, transport, or similar words mean to relocate in any manner an item from

one real property to another; (k) Person means an individual, partnership, corporation, or any other form of legal entity; (l) Sample means to take material, or the material taken from a location licensed by the

department; (m) Stop movement order means a written directive issued by the department to prohibit or limit

the movement of plants or plant parts; (n) THC means delta-9 tetrahydrocannabinol; and, (o) USDA means United States Department of Agriculture.

Authority: T.C.A. §§ 4-3-203 and 43-267-103.

0080-06-28-.03 LICENSE APPLICATION AND FEES.

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(1) All persons to whom these rules apply shall obtain a license in accordance with this chapter prior to conducting any activity for which a license is required.

(2) To be eligible for a license, an applicant must either be selected by the department for

participation in the department’s industrial hemp pilot program or be a university conducting agricultural or academic research.

(a) Non-university applicants may obtain licensure for participation in the department’s

industrial hemp pilot program. The department may select or limit in its discretion all participants in the program for the improvement or design of agricultural research related to industrial hemp and its growth, cultivation, or marketability. The department shall not select for participation in this program any person who has been convicted of a felony drug-related offense within the previous ten years. Non-university applicants in the industrial hemp pilot program shall sign a memorandum of understanding with the department regarding the parameters and manner of research conducted within the program.

(b) A university applicant shall submit with its application a statement of research goals

and parameters related to its cultivation or processing of industrial hemp and proof of its status as an institution of higher education as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C.A. § 1001). University applicants are not required to sign a memorandum of understanding with the department.

(3) Application for any license under this chapter shall be made on forms provided by the

department, which shall be completed in full and may include:

(a) Name of the applicant;

(b) Date of birth of any applicant who is an individual or a partner in a general partnership;

(c) Proof of one of the following for any applicant that is not an individual or a partner in a general partnership:

1. Applicant’s registration in its state of incorporation; or,

2. Applicant’s business license issued by a local governmental authority;

(d) Contact information for applicant, to include name of person legally responsible for

applicant’s operations, telephone number, email address, and address of the principal place of business;

(e) Address of any location to be licensed for growth of industrial hemp and description of

all growing areas at the location, including total number of growing acres and Global Positioning System (GPS) coordinates from the areas’ central most points;

(f) Address of any location to be registered for fixed processing of industrial hemp;

(g) Vehicle identification number of any facility to be registered for mobile processing of

industrial hemp; (h) Address of any location where the applicant intends to store industrial hemp or hemp

products;

(i) Intended disposition of any industrial hemp cultivated or processed under the license;

(j) A statement signed by an owner of the real property or facility submitted for licensure, indicating the owner’s consent for its use to cultivate or process industrial hemp;

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(k) A statement signed by an owner of the real property or facility submitted for licensure, indicating the owner’s consent for the department to enter those premises as necessary for departmental inspection, sampling, and enforcement of the Act and this chapter;

(l) Quantity, form, and location of any viable industrial hemp carried over as inventory

from a prior licensure year; and,

(m) Other information as required by the department.

(4) An applicant may identify up to one authorized reporting agent for each license. Authorized reporting agents and licensees shall be the only persons authorized to report information or data to the department regarding a license, to request sampling or sampling results, to receive movement permits, and to otherwise communicate with the department regarding the license or licensed activity. A licensee shall be responsible for all activity conducted by an authorized reporting agent with respect to the license. To authorize a reporting agent, the applicant must include the reporting agent’s name, telephone number, and email address in application records.

(5) Licensees shall notify the department of any changes to the information or contents of an

application within 30 days after the change takes place.

(6) Applicants for licensure shall include with their application payment of an annual license fee as appropriate for the following categories of licenses.

(a) Industrial Hemp Grower License. An industrial hemp grower license is required per

person for each physical address where the person cultivates industrial hemp. There is no limit to the number of growing areas a licensee may cultivate at a licensed address. No grower license shall be issued for a growing area within ten miles of a certified seed license growing area without the certified seed licensee’s consent. The annual fee for an industrial hemp grower license is assessed under T.C.A. § 43-1-703(f) and is determined according to the total size of growing area(s) at the licensed address as follows:

1. Less than 5 acres: Tier 6 fee;

2. 5 acres to 20 acres: Tier 7 fee;

3. More than 20 acres: Tier 8 fee.

(b) Industrial Hemp Certified Seed License. An industrial hemp certified seed license is

required for any person who cultivates industrial hemp for certified seed. There is no limit to the number of locations or growing areas a licensee may cultivate for certified seed, provided that the growing areas are identified at the time of application for the license including address, size, and GPS coordinates from the areas’ central most points. No certified seed license shall be issued for a growing area within ten miles of another certified seed license growing area without the consent of both certified seed licensees. An applicant for a certified seed license must submit evidence ofmembership with the Tennessee Crop Improvement Association. The fee for an industrial hemp certified seed license is a Tier 8 annual fee under T.C.A. § 43-1-703(f).

(c) Industrial Hemp Processor Registration. Any person who processes industrial hemp for

distribution in commerce shall annually register with the department each processing facility where the person processes industrial hemp. There is no fee for a processor registration; however, exemption from fee requirements shall not exempt any person from other regulations applicable to the cultivation, processing, possession, or distribution of industrial hemp, including but not limited to requirements regarding

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record keeping and availability for inspection.

(d) University License. A university license may be issued to qualified university applicants in lieu of any license or registration otherwise required under this chapter. There is no annual fee for a university license.

(7) Applicants for licensure shall submit an application and the appropriate annual license fee to

the department between November 15 and February 15 of each year. All licenses issued under this chapter shall be valid from the following March 1 through February 28 (February 29 in leap years). Licenses issued under this chapter shall not renew automatically, and therefore are not subject to late renewal charges. If payment of the appropriate annual license fee is not received by the department by February 15, the application for a license shall be deemed incomplete and denied.

(8) The department may deny any application for licensure that is not completed in accordance

with this rule. (1) A hemp license is required to possess rooted hemp and is issued to each person for each physical

address where the person grows or possesses rooted hemp. (2) Application for a license shall be made on forms provided by the department, which shall be

completed in full and shall include:

(a) Name of applicant; (b) Date of birth of any applicant who is an individual or a partner in a general partnership; (c) Proof of one of the following for any applicant that is not an individual or a partner in a

general partnership:

1. Applicant’s registration in its state of incorporation; or, 2. Applicant’s business license issued by a local governmental authority;

(d) Contact information for applicant, to include name of the key participant, telephone number, email address, and address of the principal place of business;

(e) Address of the location to be licensed for growth of hemp and description of all growing

areas at the location, including total number of growing acres and Global Positioning System (GPS) coordinates from the areas’ central most points; and

(f) Other information as required by the department.

(3) Licensees shall notify the department of any changes to contact information of an application within 30 days after the change takes place.

(4) The annual fee for a hemp producer license is assessed under T.C.A. §43-1-703(f) and is

determined according to the total size of growing area(s) at the licensed address:

(a) Less than 5 acres: Tier 6 fee; (b) 5 acres to 20 acres: Tier 7 fee; (c) More than 20 acres: Tier 8 fee.

(5) The annual fee for a hemp broker license is assessed under T.C.A. §43-1-703(f) and is a Tier 7 fee. (6) The annual fee for a hemp propagator license is assessed under T.C.A. §43-1-703(f) and is a Tier 7

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fee. (7) The annual fee for any combination of a hemp producer, broker, or propagator license is a single fee

equal to the highest amount of the license for which the applicant requests. (8) License applicants shall submit an application and license fee to the department on or before

October 1 of each year. The annual license fee shall be waived for any institute of higher education that offers programs of study in agricultural sciences seeking licensure for a growing area on university property. Licenses expire on September 30 following their issuance. If an applicant for renewal fails to submit payment of the license fee on or before the following October 16, the applicant shall also be required to pay a late charge assessed under T.C.A. §43-1-703 prior to renewal of the license.

(9) The department may deny any application for licensure that is not completed in accordance with this

rule. (10) Any person who materially falsifies any information in their application shall be ineligible to

participate in the program.

Authority: T.C.A. §§ 4-3-203 and 43-267-103. 0080-06-28-.04 ACQUISITION OF SEED AND PROPAGULES. USDA REPORTS

(1) Acquisition.

(a) Each licensee shall be responsible for acquisition and transport of seed or propagules

used for growth of industrial hemp. Prior to acquisition of propagating material, the licensee shall submit on forms provided by the department a seed acquisition request, which may require:

1. A copy of the industrial hemp license for which the propagating material is

requested;

2. The scientific or common name for the variety requested;

3. The name, address, telephone number, and email address of the person providing the requested material;

4. Evidence that the source of the variety is:

(i) A university;

(ii) A state department of agriculture authorized to conduct an industrial hemp pilot program. If the source is a pilot program participant in this or another state, a copy of that participant’s industrial hemp license is sufficient to fulfill this requirement; or,

(iii) A lawful vendor of industrial hemp in the jurisdiction where it is distributed;

5. The form of material to be acquired (e.g. seed, seedlings, cuttings, etc.);

6. The quantity in pounds of seed or number of propagules to be acquired;

7. Test results from an ISO-accredited or state department of agriculture approved,

third-party laboratory certifying that material from the variety has been shown to contain no more than 0.3% THC on a dry mass basis; and,

8. Evidence that the licensee is authorized to propagate industrial hemp from the

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material, if applicable.

(b) Completion of a seed acquisition request for a landrace variety shall fulfill its registration requirement under the Act.

(c) Prior to cultivation by any licensee, all propagating material acquired through the

department’s controlled substance registration or acquired for growth by non-university licensees shall first be inventoried by the department at: Tennessee Department of Agriculture, Industrial Hemp Pilot Program, 436 Hogan Road, Nashville, Tennessee 37220.

(d) Acquisition of all industrial hemp shall comply with movement requirements of this

chapter.

(2) Costs. Licensees shall pay all costs incurred for acquisition and delivery of any seed or propagules, including but not limited to costs for procurement, taxes, shipping, and customs brokerage. These costs may be incurred in the sole discretion of the department and are payable by licensees to the department or the department’s designee upon reasonable notice. Failure to pay these costs in accordance with a departmental directive shall be grounds for cancellation of any seed or propagule procurement order and revocation of any license issued under this chapter.

(3) Pilot program design. The department may select or limit any propagating material used in

the industrial hemp pilot program for compliance with this chapter or for the improvement or design of agricultural research related to industrial hemp and its growth, cultivation, or marketability.

(4) Use agreements. Licensees shall not use or possess seed or propagules unless expressly

authorized by and in conformity with any applicable use agreement with the mother plant’s seed breeder.

(5) Each cannabis plant cultivated from material acquired not in conformance with this rule shall

constitute a separate violation of this chapter. (1) The department shall collect, maintain, and report to USDA on a timely basis:

(a) The contact information for each licensed producer; (b) A description of the land on which the producer will produce hemp; and (c) The status and the license number;

(2) The department shall notify USDA of any change to the license information within 30 days of the department becoming aware of the change.

(3) All producers shall report hemp crop acreage to the USDA Farm Service Agency within 30 days of

obtaining a license and shall provide the following information: (a) Street address and the GPS location of the lot, greenhouse, building, or site hemp will be grown. (b) Acreage dedicated to the production of hemp, or greenhouse or indoor square footage

dedicated to the production of hemp. (c) The hemp license number.

Authority: T.C.A. §§ 4-3-203 and 43-267-103.

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0080-06-28-.05 CROP DISTRIBUTION, DESTRUCTION, AND RETURN.

(1) Distribution.

(a) Nonviable. Any person—with or without a license issued under this chapter—may distribute or store nonviable industrial hemp or hemp products if the industrial hemp was grown or processed by a person licensed under this chapter or the industrial hemp was acquired from a person in a foreign jurisdiction where distribution of the material or product was lawful.

(b) Viable. Only the department and licensees may distribute viable industrial hemp

material.

1. Unlicensed possession of viable industrial hemp material is prohibited and shall be considered possession of marijuana under the Act.

2. Licensees may distribute viable industrial hemp material only to persons licensed

under this chapter, out-of-state universities, or out-of-state departments of agriculture authorized to conduct industrial hemp pilot programs in their states.

3. Prior to shipment of viable industrial hemp material out-of-state, the material

must first be inventoried by the department at: Tennessee Department of Agriculture, Industrial Hemp Pilot Program, 436 Hogan Road, Nashville, Tennessee 37220.

(c) Distribution of all industrial hemp and hemp products shall comply with movement

requirements of this chapter.

(2) Destruction. Cannabis plants found to be in violation of the Act or this chapter shall be destroyed in accordance with a departmental directive or destruction order.

(3) Return. The department may return to its sender any industrial hemp in the department’s

possession that was requested for shipment or distribution to an ineligible person or that was not approved for use in the industrial hemp pilot program. The department may destroy any industrial hemp that is not retrieved by its intended recipient or return sender in a timely manner.

(4) Costs. Licensees shall pay all costs incurred for distribution, delivery, destruction or return of

any cannabis plant or plant product. These costs may be incurred in the sole discretion of the department and are payable by licensees to the department or the department’s designee upon reasonable notice. Failure to pay these costs in accordance with a departmental directive shall be grounds for revocation of any license issued under this chapter.

Distribution. Licensees shall not distribute rooted hemp to an unlicensed person. Any person may possess, distribute, or store non-rooted hemp.

Authority: T.C.A. §§ 4-3-203 and 43-267-103.

0080-06-28-.06 MOVEMENT PERMITS.

(1) All movement of industrial hemp must comply with acquisition and distribution requirements

of this chapter. Out-of-state movement of industrial hemp may occur only by lawful passage through states that have authorized the possession and distribution of industrial hemp.

(2) Any person may move nonviable industrial hemp or hemp products without a movement

permit.

(3) Only licensees may move viable industrial hemp or hemp products. Licensees shall not move viable industrial hemp without a valid movement permit issued by the department.

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(4) When required by this rule, industrial hemp movement permits are required per vehicle per

day the vehicle is used to move industrial hemp or hemp products. Movement permits authorize only the movement that occurs within the state. To receive a movement permit, the licensee shall submit a movement permit request on forms provided by the department, which may require:

(a) The industrial hemp license number for which movement is requested;

(b) Origin and destination of movement;

(c) Date and time of intended movement;

(d) Description of industrial hemp parts or hemp products to be moved;

(e) Weight, volume, or number of units of material to be moved;

(f) Names of individuals moving the material; and,

(g) Make, model, color, and license plate number of vehicle(s) to be used in moving the material.

(5) Requests for movement permits must be submitted to the department at least three business

days prior to movement.

(6) The department may deny any application for a movement permit that is not completed in accordance with this rule.

(7) Each cannabis plant or plant product moved not in conformity with this rule shall constitute a

separate violation of this chapter.

(1) Licensees shall not move rooted hemp plants without a valid movement permit issued by the department. Licensees shall not move any hemp to anyone who treats or transforms harvested hemp for distribution in commerce without a valid movement permit issued by the department.

(2) Hemp movement permits are required per vehicle per day. To receive a movement permit, the licensee shall submit a movement permit request on forms provided by the department, which may require:

(a) The hemp license number for which movement is requested;

(b) Origin and destination of movement;

(c) Date of intended movement;

(d) Weight, volume, or number of units of material to be moved.

(3) The department may deny any application for a movement permit that is not completed in accordance with this rule.

(4) Each cannabis plant or plant product moved not in conformity with this rule shall constitute a separate violation of this chapter.

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Authority: T.C.A. §§ 4-3-203 and 43-267-103.

0080-06-28-.07 SAMPLING AND INSPECTIONS.

(1) Scope of inspections. The department may enter during normal business hours any location licensed by the department, for purposes of inspecting any cannabis plant, record, or other material as necessary for the efficient enforcement of the Act and this chapter. Inspections of processors under this chapter are limited to sampling of cannabis plants or plant products and observation of record keeping requirements; the inspections do not evaluate or endorse in any manner the chemical or physical processes used by the processor or the safety of those processes in the workplace.

(2) Sampling. The department may conduct sampling of any cannabis plant or other material at a

location licensed by the department. A sample collected according to uniform protocols approved by the commissioner shall be deemed representative of the location, growing area, or lesser lot from which the sample was obtained. After the department obtains a sample, licensees shall not move any cannabis plant or plant product from the area represented by the sample until the department determines the sample tests no higher than 0.3% THC on a dry mass basis.

(3) Test r e s u l t s exceeding 0.3% THC. Any sample test result higher than 0.3% THC

concentration on a dry mass basis shall be conclusive evidence that one or more cannabis plants or plant products from the area represented by the sample contain a THC concentration in excess of that allowed under the Act and shall be grounds for issuance of stop movement and destruction orders for any plants or materials within the area represented by the sample.

(4) Destruction of any plants or plant products under this rule shall be performed in accordance

with a directive from the department, which may include destruction by any means necessary for reasonable assurance that all cannabis plants exceeding allowable limits of THC concentration are destroyed, e.g. by removal and incineration, field burning, deep burial, or other means authorized by the department. Any licensee aggrieved by an order issued under this chapter may petition the department for review of the order under the Uniform Administrative Procedures Act. Petitions for review of the order must be submitted to the department in writing within ten days of the order being issued. If no petition is filed with the department within the ten day period, the department’s order shall become final and will not be subject to review. For purposes of any hearing under this chapter, any cannabis plant grown or processed by a licensee under the department’s industrial hemp pilot program shall be considered property of the department for researching the growth, cultivation, and marketability of industrial hemp and not a legal right, duty, or privilege of the licensee.

(5) Laboratory analysis costs. Licensees shall pay a Tier 4 laboratory analysis fee under T.C.A. §

43-1-703(f) for each sample collected by the department.

(1) Licensees shall not move rooted hemp plants without a valid movement permit issued by the department. Licensees shall not move any hemp to anyone who treats or transforms harvested hemp for distribution in commerce without a valid movement permit issued by the department.

(2) Hemp movement permits are required per vehicle per day. To receive a movement permit, the licensee shall submit a movement permit request on forms provided by the department, which may require:

(a) The hemp license number for which movement is requested;

(b) Origin and destination of movement;

(c) Date of intended movement;

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(d) Weight, volume, or number of units of material to be moved.

(3) The department may deny any application for a movement permit that is not completed in accordance with this rule.

(4) Each cannabis plant or plant product moved not in conformity with this rule shall constitute a separate violation of this chapter.

Authority: T.C.A. §§ 4-3-203 and 43-267-103.

0080-06-28-.08 AGRONOMIC REPORTS. NEGLIGENT VIOLATIOS

(1) Prior to the end of each licensure year or upon reasonable notice from the department, each

non-university licensee shall submit a completed agronomic report on forms provided by the department. Reports may require information on various points of research interest and shall include description of any known commercial distributions of industrial hemp or hemp products.

(2) University licensees are not required to submit an agronomic report.

(1) Negligent violations shall include, but not limited to:

(a) Failure to provide a legal description of land on which the producer produces hemp; (b) Failure to obtain a license; and (c) Production of cannabis at a THC concentration exceeding the acceptable limits.

(2) Hemp producers do not commit a negligent violation under this paragraph if they make reasonable

efforts to grow hemp and the cannabis does not have a THC concentration of more than .5% on a dry weight basis.

(3) A producer that negligently violates this chapter three times in a 5-year period shall be ineligible to

produce hemp for a period of 5 years beginning on the date of the third violation. (4) All negligent violations shall be corrected using a corrective action plan and shall, at a minimum,

include the following items: (a) A reasonable date by which the producer shall correct the negligent act; (b) That the producer will periodically report to the department progress in correcting the

violation; and (c) The department shall conduct an inspection to determine if the action plan has been

implemented.

Authority: T.C.A. §§ 4-3-203 and 43-267-103. 0080-06-28-.09 VIOLATIONS.

(1) Industrial hemp shall be considered marijuana when distributed or possessed by any person

not authorized under the Act or this chapter.

(2) In addition to other requirements of this chapter, licensees shall:

(a) Upon request by the department, provide full and accurate information regarding the

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(Rule 0080-06-28-.09, continued)

person’s cultivation or processing of industrial hemp;

(b) Comply with any order issued by the department regarding cultivation, processing, distribution, research, or destruction of industrial hemp;

(c) Pay all fees associated with licensure, participation in the department’s industrial hemp

pilot program, and costs arising out of procurement, distribution, sampling, or destruction of cannabis plants or plant products;

(d) Pay all required fees within the time prescribed by the Act or this chapter. If time for

payment of costs and fees is not prescribed by the Act or this chapter, licensees shall pay such fees upon reasonable notice issued by the department; and,

(e) Participants in the department’s industrial hemp pilot program shall conduct themselves

in a professional manner befitting a representative of the department.

(3) In addition to other requirements of this chapter, licensees shall not:

(a) Knowingly provide any false, misleading, or incorrect information regard ing the person’s cultivation or processing of cannabis plants;

(b) Cultivate, process, move, or distribute cannabis plants other than industrial hemp;

(c) Interfere with an authorized representative of the department in the performance of his

duties;

(d) Market or represent industrial hemp or hemp products to be marijuana or any illicit substance in any form;

(e) Violate any quarantine, stop movement order, or destruction order issued by the

department;

(f) Violate any memorandum of understanding to which the licensee is a party;

(g) Violate any applicable seed or use agreement;

(h) Move industrial hemp in conflict with any movement permit issued by the department; or,

(i) Cultivate or process industrial hemp in an area not licensed by the department.

(4) A person is responsible for violations of the Act or this chapter when committed by either the

person or his agent.

(5) Each violation of the Act or this chapter is grounds for issuance of stop movement or destruction orders against any cannabis plant held by the violator or his agent; denial or revocation of any license issued under this chapter; actions for injunction; and imposition of civil penalties or criminal charges against the violator.

(1) In addition to other requirements of this chapter, licensees shall not:

(a) Possess or grow rooted hemp outside a licensed growing area or unless under immediate transport to a licensed growing area; and,

(b) Refuse to provide full and accurate information regarding the person’s acquisition,

cultivation, and distribution of hemp.

(c) Be convicted of any drug-related felony offense in any state or federal jurisdiction within the

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INDUSTRIAL HEMP CHAPTER 0080-06-28

(Rule 0080-06-28-.09, continued) previous ten years. Violation of this provision is grounds for immediate denial or revocation of any license issued under this chapter;

(d) Cultivate, move, or distribute cannabis plants other than hemp;

(e) Interfere with an authorized representative of the department in the performance of hisduties;

(f) Market or represent hemp or hemp products to be marijuana or any illicit substance in anyform; or,

(g) Violate any state or federal quarantine or order issued by the department.

(2) A person is responsible for violations of the Act or this chapter when committed by either the personor his agent.

(3) Each violation of the Act or this chapter is grounds for issuance of stop movement or destructionorders against any cannabis plant held by the violator or his agent; denial or revocation of any license issued under this chapter; actions for injunction; imposition of civil penalties; or referral for criminal investigation pursuant to the Act.

Authority: T.C.A. §§ 4-3-203 and 43-267-103.

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SS-7041 (March 2020) 1 RDA 1693

Department of State Division of Publications 312 Rosa L. Parks Ave., 8th Floor, Snodgrass/TN Tower Nashville, TN 37243 Phone: 615-741-2650 Email: [email protected]

For Department of State Use Only

Sequence Number: 10-13-20Rule ID(s): N/A File Date: 10/21/2020

Effective Date: 10/21/2020

Filing Form for Stay of Effective Date on Rules, Withdrawal of Stay, and Withdrawal of Rules

Agency/Board/Commission: Department of Agriculture Division: Consumer and Industry Services

Contact Person: David Waddell Address: 442 Hogan Road, Nashville, TN

Zip: 37220 Phone: 615-837-5331Email: [email protected]

Type of Action on Rule:

Stay of Effective Date of Rules Rule Filing Date: (mm/dd/yyyy)

Rule Original Effective Date: (mm/dd/yyyy) Length of Stay (not to exceed 75 days):

New Effective Date of Rule Filing: (mm/dd/yyyy)

Notice of Withdrawal of Stay Stay Filing Date: (mm/dd/yyyy)

Stay Effective Date: (mm/dd/yyyy) New Effective Date of Rule Filing: (mm/dd/yyyy)

X Notice of Withdrawal of RulesRule Filing Date: (09/03/2020)

Rule Effective Date: (12/02/2020)

Rule(s) (ALL chapters and rules contained in filing must be listed here. If needed, copy and paste additional tables to accommodate multiple chapters. Please enter only ONE Rule Number/Rule Title per row.)

Chapter Number Chapter Title 0080-06-28 Hemp Rule Number Rule Title 0080-06-28-.01 Scope 0080-06-28-.02 Definitions 0080-06-28-.03 License Application and Fees 0080-06-28-.04 USDA Reports 0080-06-28-.05 Crop Distribution

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0080-06-28-.06 0080-06-28-.07 0080-06-28-. 08 0080-06-28-.09

Movement Permits - . .

Sampling and lm;pectiqns Neglige_nt Violations Violations

SS-7041 (March 2020) 2 RDA 1693

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10/21/2020

Department of State Use Only

SS-7041 (March 2020)

Name of Officer: Charlie Hatcher, D.V.M.

Title of Officer: Commissioner

Filed with the Department of State on:

3

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Tre Hargett Secretary of State

RDA 1693

IE21AMH
RG Date Stamp