(1) "Clone" means an organism developed asexually from another and genetically identical to it, such as a group of genetically identical plants produced by vegetative propagation, including but not limited to cutting, grafting, or division.

(2) "Hemp" means the plant species Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

(3) "Hemp plant extract" means a processed product from hemp plant or floral material including but not limited to oil, powder, cake, pellet, etc.

(4) "Hemp root extract" means a processed product that includes exclusively hemp root material including but not limited to oil, powder, cake, pellet, etc.

(5) "Hemp seed oil" means oil extracted exclusively from hemp seeds.

(6) "Location" means a single location as determined by the Director.

(7) "Manufacturing" means further processing hemp plants that have already been processed from a raw, unaltered state.

(8) "Montana State Hemp Program" means a program to grow hemp under the regulation of the Montana Department of Agriculture for the purposes of complying with federal law.

(9) "Processing" means heating, mixing, grinding, separating, extracting, cutting, freezing, or otherwise physically or chemically altering hemp plants or plant parts from a raw, unaltered state or changing the physical characteristics of hemp plants or plant parts from a raw, unaltered state.

(10) "Research" means growing hemp in a manner which the resulting hemp may not conform to the USDA guidelines in some manner. This includes but is not limited to the use of a pesticide not approved for hemp, efforts to lower a cultivar's THC level through hybridization, or development of new cultivars which are not from certified seed. Research must be conducted with the intent of improving or expanding upon the genetics and/or cultivation practices of hemp. 

(11) "State hemp license" means a license to grow hemp that shows the holder is in compliance with Montana state hemp laws. The holder is also responsible for obeying all applicable federal and tribal regulations.

(12) "Testing" means a testing for the amount of THC, pesticides, or other tests for legal compliance of departmental or federal regulations.

(1) An applicant must:

(a) provide the information required by state law for a hemp license on the form provided by the department;

(b) apply to the department for participation in the program by May 30 for outdoor grows; application for greenhouse and indoor grows is open all year;

(c) pay all fees as established by rule; and

(d) consent to entrance of their property by the department to inspect their hemp fields.

(2) If the applicant is not a single individual, then all proper filings with the Secretary of State must be current and in good order.

(3) Licenses will expire on the last day of December of the year the license is issued, beginning in 2021.

(4) The licensee must also provide all material required under 80-18-106, MCA. 

(1) An applicant to the Montana State Hemp Program must:

(a) not be forbidden from participating by a federal agency and agree to a criminal background check;

(b) meet any additional requirements that the USDA or FDA places on the department for the continuation of the program;

(c) not grow Category D varieties listed in ARM 4.19.108;

(d) apply to the department for participation in the program; and

(e) keep all records related to the planting, growing, harvesting, storage, destruction, distribution, sale and/or processing of hemp, and make those records available for inspection for a minimum of three years. 

(2) Live hemp plants or propagatable hemp plant parts may only be sold to persons licensed to grow hemp. Viable hemp seed intended for propagation may only be sold to persons licensed to grow hemp or persons licensed to process, condition, or sell seed for propagation. Hemp grain intended for use as an approved food ingredient or oil, may only be sold to persons licensed to purchase, handle, or process hemp grain or another commodity.

(1) The fee for a Montana State Hemp License is $1,100.

(2) The department may assess a processing fee of $100 for any late (postmarked or sent electronically) or incomplete documentation associated with the licensing process.

(3) The department may assess a change fee of $50 for a request for each new cultivar or location associated with a previously processed license application.

(4) The fee to license a research program under an existing license is $500 annually.

(5) The director may waive all or part of any of these fees, if there is sufficient money to perform the regulations of the hemp act without them. This waiver may be individual, institutional, or by category of hemp seed. The waiver must have a time limit in it when granted.

(1) The department will charge any licensee or law enforcement agency $250 per test for THC levels of a plant.

(2) Any lab approved by DPHHS for THC testing for medical marijuana may be used by hemp growers for THC testing.

(3) The department may approve third party testing providers.

(1) After notice to the licensee, the department may suspend a license and start an administrative hearing under MAPA for permanent revocation.

(2) The department may suspend or terminate the hemp license for any violation of county, state, or federal law. This will be done in a manner consistent with Section 297 of The Agricultural Marketing Act of 1946 as amended (2018).

(3) The department may reinstate the license if good cause is shown and a reinstatement fee is paid. The reinstatement fee is $450 for the Montana State Hemp Program license. 

(1) Applicants must inform the department of varieties planted and the location of each variety by sending the information to the department.

(2) The department will send the full Montana State Hemp License for the year after receiving the required information from the applicant.

(3) The department recognizes a four-category system, found in ARM 4.19.108, to illustrate the relative risk of hemp cultivars concerning THC levels.

(4) Persons distributing hemp seeds for planting must comply with the Montana Agricultural Seed and Patented Plant Material Act.

(a) A person whose name and address appear on the label of hemp seed sold in Montana, as required by 80-5-123, MCA, shall obtain a seed labeler's license from the department before doing business in Montana;

(b) all facilities located in the state that condition hemp seed shall obtain a license from the department for each facility; and

(c) a person who sells hemp seed in Montana, whether from in-state or out-of-state shall obtain a seed dealer's license from the department for each place where seed is located or sold. 

(5) Clones of industrial hemp plants may be approved for commercial production of industrial hemp. Clones are in the same category as their parent plant. Clones must comply with the Montana Disease, Pest and Weed Control Act, and additional documentation may be required for interstate shipments.

(1) Categories will be as follows: Category A are certified varieties formally approved by the department, Category B are certified varieties approved by other states or countries at a level equivalent to the department, Category C are all other hemp cultivars that an applicant reasonably believes will not produce a plant with over 0.3 percent total THC at any time prior to harvest and are not in Category D, and Category D includes all cultivars forbidden by any federal law or regulation or added by rule by the department because of its inability to consistently produce hemp.

(2) A list of approved Category A and Category B varieties can be found on the department's website at https://agr.mt.gov/Industrial-Hemp. The list will be updated annually.

(1) A licensed hemp grower in Montana may not grow both hemp and medical marijuana at the same location unless one is grown indoors and the other is grown outdoors or both are grown in separate buildings at the same location. 

(1) The department is authorized to inspect and sample all lots of hemp to determine compliance with this Act.

(2) Properly licensed growers may self-sample to determine THC levels and to indicate trends in THC levels, but these samples will not be considered official samples.

(1) A grower must apply for and receive a hemp research license, in addition to the standard hemp grower license, before being allowed to conduct research and cultivate hemp plants (excluding research already exempted in 80-18-103(3), MCA) not intended for commercial use. 

(2) The department may recognize certain lots or plants of hemp as research by a licensed grower provided the plants and plant parts:

(a) do not enter commerce;

(b) are not used for personal use or gain;

(c) are only grown indoors unless granted an exception from the department;

(d) are grown with the goal of establishing improved hemp genetics or other legitimate purposes approved by the department;

(e) are tracked and reported to the department beginning with the license application and throughout the licensing year; and

(f) shall be destroyed, other than seed for propagation used for further research and potential future genetics.

(3) All research findings must be reported to the department.

(4) The THC testing of research plants is the responsibility of the license holder.

(5) Proven and established varieties must be approved by the department before entering a non-research phase and entering commerce.

(6) Official Montana research facilities are exempt from (2)(c) and (d) of this rule.

(1) A grower must take reasonable steps to prevent or destroy volunteer hemp plants that arise and may be responsible for the costs to control plants that spread into nearby properties.

(1) An additional laboratory testing fee of $250 will be charged for each additional sample tested. 

(2) An additional inspection fee of $250 will be charged for each inspection conducted after the initial inspection. 

This rule has been repealed.

(1) A person or entity with a Hemp Processing License for calendar year 2019 to 2020 may contract with licensed Montana hemp producers without a Commodity Dealer License under the following conditions:

(a) the hemp producer acknowledges the hemp processor is not a licensed commodity dealer in Montana, meaning the processor does not have a commodity dealer bond, by signing a written statement;

(b) the total amount of contracted hemp does not exceed $10 million; or

(c) they are purchasing or processing hemp stalks for fiber.

(2) Hemp processors are subject to all remedies of the department included in 80-4-612, MCA, and powers of inspection included in 80-4-601, MCA.

(a) In the event a hemp processor does not pay a licensed hemp producer possessing a contract that would otherwise be subject to Agricultural Commodity Dealer laws, the department may pursue remedies.

(1) A licensed grower vertically integrated as a hemp processor must abide by all state, tribal, USDA, FDA, and DEA requirements related to the processing, handling, and distribution of hemp and hemp derivatives, including the transportation of interim products that contain greater than 0.3% Total THC.