Kentucky Department of Agriculture. Industrial Hemp Research Pilot Program Orientation for Processors/Handlers 2018

Transcription

1 Kentucky Department of Agriculture Industrial Hemp Research Pilot Program Orientation for Processors/Handlers 2018

2 KDA Industrial Hemp Program Staff Brent Burchett, Director of Plant Division Doris Hamilton, Hemp Program Manager Sarah Gravitt, Program Specialist Michelle Shane, Program Specialist Inspector Team

3 Overview Housekeeping Legal Update Program Overview Program Highlights Licensing Agreement BREAK Reporting Requirements Website Overview Transfer Requirements New Regulations Final Questions Signing of the Licensing Agreements

4 Facility Orientation Restroom Location Cell phones

5 Hemp Pictures All hemp pictures in this slide show are from the Kentucky Industrial Hemp Research Pilot Program

6 Information Overload We are going to provide A LOT of information today You can reach out to us at any time through or via phone to ask questions We d rather you ask KDA directly than get a second-hand answer that may be misguided You do NOT have to sign this Agreement Walking away today does NOT affect future applications After signing the Agreement today, your fees are nonrefundable

7 Legal Update Joe Bilby General Counsel

8 Commissioner Quarles s Strategic Aims Our strategy is to use KDA s research pilot program to encourage the industrial hemp industry to expand and prosper in Kentucky. Although it is not clear when Congress might act to remove industrial hemp from the list of controlled substances, my strategic objective is to position the Commonwealth s growers and processors to ultimately prevail as national leaders in industrial hemp production.

9 Commissioner Quarles Three Core Directives Empower Kentucky s expanding community of industrial hemp growers and processors Ensure close cooperation with law enforcement Eliminate redundant steps and requirements for program participants and KDA Hemp Staff

10 Frankfort Legislative Reforms (SB 218 & HB 333) Revised the 2013 legal framework to improve alignment with the 2014 Farm Bill Authorizes KDA to promulgate administrative regulations to run the program Transitions to a license-based program Created law enforcement safeguards Requires applicants to submit GPS coordinates, consent to entry by KDA, KSP and other law enforcement agencies Requires annual criminal background checks 10-year program ban for any person convicted of any felony or drug-related misdemeanor Increased transparency Charges UK s Regulatory Services laboratory with responsibility for THC testing Allowing disappointed applicants to appeal to a three-person panel Creates a process for suspension and revocation of licenses, with rights of appeal

11 Hemp Marijuana (KRS 218A.010)

12 Frankfort Regulatory Reforms (302 KAR 50) Increased transparency through written program rules and policies A single regulation for: Growers 302 KAR 50:020 Processors 302 KAR 50:030 Universities 302 KAR 50:040 Incorporates THC testing procedures developed by UK Regulatory Services Fees to meet the needs of an expanding program

13 Washington, DC What s coming from Congress? HR 3530 (Reps. Comer, Massie, Polis & Blumenthal) Removes hemp from list of Schedule I controlled substances Two-tier THC limits: Retains 0.3% THC limit for hemp used for commercial purposes Allows a 0.6% THC limit for research hemp Federal agents authorized to conduct administrative inspections anywhere there is "production, storage, distribution, or use" of hemp FDA s authority left unchanged

14 Washington, DC Statement of Principles Tries to redefine industrial hemp in a way different than Congress s definition Expands THC to include all isomers, acids, salts and isomers of THC Suggests that there are only two legitimate applications (grain and fiber) for research Tries to limit the movement of hemp seeds and plants across state lines Ignores Congressional action expressly prohibiting using funds to prevent interstate movements (Consolidated Appropriations Act of 2016)

15 Sept. 2016: Quarles Pushes Back

16 Oct. 2016: The Federal Delegation Weighs In

17 Fifteen Months Later... And Still No Response

18 At Last - the DEA Speaks! (.to the press) Melvin Patterson, DEA Spokesman: All hemp products that can be consumed are illegal, he said. So why are these products for sale at so many stores? We re in the middle of an opioid crisis, so our focus isn t on coming in and seizing chocolate hemp, Patterson said. But it's illegal. Courier-Journal, 11/30/2017, Are you breaking the law when you buy hemp products?

19 Same Products, Different Rules? DEA said that hemp food grown in Canada is legal, but hemp food grown under U.S. Pilot Programs is illegal?

20 Standing Up for Kentucky s Hemp Industry

21 Program Overview Doris Hamilton

22 Industrial Hemp Research Pilot Processor/Handler License NO Live Plants Process Harvested Crop into Products Possess, Handle, Store, Market Hemp Brokers, Labs, Seed Cleaners Program Grower License Live Plants Fields Greenhouses Storage Dry, Chop, Grind Market Crop

23 Orientation Folder Contents Milestone Schedule & Fee Schedule Field Planting Report form Greenhouse/Indoor Planting Report form Harvest/Destruction Report form Production Report form Site Modification Request form Tri-fold Program Brochure 2018 Transfer Requirements Summary of Varieties THC Sampling and Testing Protocol Agronomic Recommendations for Industrial Hemp Production in Kentucky, by UK s D. Williams & R. Mundell * Grower Reports Not Included for Processors

24 Additional Documents Licensing Agreement Processor/Handler Regulations, 302 KAR 50:030 Available for pick-up Farm Bill Language Statement of Principles AND the letters from Commissioner Quarles 2016 Grower Production Report Summary Seed/Propagule Request Forms Other articles

25 Electronic Communications - Primary Method of Communication If you don t check , please request to remove your address from database Hemp Staff will not send you something unless it applies and is important for your project. IF WE SEND IT, READ IT! Participant Communication Make sure to add the following s to your safe list, as you will be receiving s from all of these individuals, and we don t want you to miss any important communications from KDA: Doris.Hamilton@ky.gov Michelle.Shane@ky.gov Brent.Burchett@ky.gov Sarah.Gravitt@ky.gov

26 Processor List KDA maintains a public list of Processors available on our website Voluntary Listing Designed to help your marketing efforts Will be updating in March watch for that !

27 A Note About Organic Hemp Organic is strictly regulated by the United States Department of Agriculture (USDA). You cannot market your hemp as organic unless you have been Certified Organic. Organic hemp products must be grown by a certified organic farm AND processed by a certified organic processor. KDA is a certifying agent. Certification can sometimes be a multi-year process. If you are interested in growing or processing organic hemp, and have not yet been certified, please KDA s Organic Program Staff at organic@ky.gov.

28 Program Highlights Michelle Shane

29 Kentucky Program Highlights 2014 First year of program 33 acres Approved participants including: 99 grower, 24 processors, and 8 universities 1,742 total acres approved 922 total acres planted ~500 harvested

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32 Kentucky Program Highlights applications received 181 approved MOU participants 4,600+ acres approved Plus 17 university projects

33 Kentucky Program Highlights 2016 More than 2,300 acres confirmed planted Nearly 2,000 acres harvested (87% harvest compared to 52% harvest in 2015) 44 Greenhouses (160,000 sq. ft.) 60% of acreage = CBD 34% of acreage = Grain, Seeds 6% of acreage = Fiber More than 50 different varieties Imported 60,000+ lbs. seed from nine countries

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35 Kentucky Program Highlights applicants 213 Approved Growers 13 New Processors (+29 existing multi-year) = Total Participants 12,800 acres approved 131 Greenhouses/Indoor Growing, 600,000+ sq. ft. 3,200 acres planted

36 Kentucky Program Highlights 2017 Processor Production Reports $7.5 Million Paid to Kentucky Growers $25.6 Million Capital Investments made 81 Full-time Jobs Created $16.7 Million Gross Product Sales

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38 Kentucky Program Highlights New applications (239 approved) 227 Approved Growers 12 New Processors (+ 43 returning multi-year)= Total expected License Holders 12,000 acres approved, + Site Modifications 158 Greenhouses/Indoor Growing, 764,000 sq. ft.

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40 Questions?

41 Processor/Handler Licensing Agreement Doris Hamilton & Michelle Shane

42 Processor/Handler Licensing Agreement Allows you to legally process, handle, and broker industrial hemp as an extension of KDA Not a valid agreement until signed by you and KDA; Do not date the front page (It becomes effective when KDA signs it.) You sign at conclusion of orientation AND return to KDA staff today for KDA signature Do not leave this room with the agreement today We will mail you a copy with your license

43 Processor/Handler Licensing Agreement Every provision in the Agreement is binding License number found in upper right of Agreement on each page Keep copies of Agreement with you, near harvested and in-program materials Make as many copies as needed

44 Processor/Handler Licensing Agreement Section 1. Promises and responsibilities of License Holder. In exchange for the commitments agreed to by KDA in Section 2 of this Agreement, the License Holder: A. Promises to comply with the requirements set forth in KRS to ; and in 302 KAR 50:030 ( Policies and Procedures for Processors and Handlers ), which are incorporated by reference into this Agreement;

45 Processor/Handler Licensing Agreement B. Affirms that hemp shall not be processed, stored, or handled, at any location other than the locations listed in this table; 1) Address City County Location ID Purpose Acre / SqFt Latitude Longitude NOTE: If you have a Location ID on your Licensing Agreement that includes *pending construction in the description, you MUST notify KDA once the building construction is complete and provide pictures to verify the building location.

46 A Note on GPS Coordinates Three common formats DDD MM' SS.SS" Degrees, Minutes, Seconds NO DDD.DDDDD Decimal Degrees NO DDD MM.MMM' Degrees Decimal Minutes YES Format on Licensing Agreement N, W

47 Google Earth You can download Google Earth Pro for free by visiting earth/download/g ep/agree.html. If asked for a registration key, enter GEPFREE.

48 Step 1 Google Earth Setup the correct coordinate format Step 2 Step 3 Step 4

49 Step 1: Enter Address in search bar and click Search button. Google Earth Step 2: Google Earth zooms into the address. (red pin) Step 3: Use scroll wheel & mouse, or controls in upper right corner of window to move around map and zoom in and out.

50 Step 4: Drop a pin by clicking on the thumb tack button. Google Earth Step 5: The pin default color is yellow. Step 6: A window also appears that will contain the Lat/Long of the pin point in the correct format.

51 Processor/Handler Licensing Agreement C. Agrees to apply for registration of all processing, handling, and storage locations, including GPS coordinates, and receive KDA approval for those locations prior to having hemp on those premises;

52 Processor/Handler Licensing Agreement D. Acknowledges that License Holder shall submit a Site Modification Request Form, the appropriate fees based on the requested changes, and obtain prior written approval from a representative of the KDA before implementing any change to the licensed sites stated in this Agreement, and that processing/handling site changes are subject to a site modification surcharge in the amount specified in 302 KAR 50:060 for a new set of GPS coordinates;

53 Processor/Handler Licensing Agreement E. Acknowledges that License Holder, its representatives, agents and employees are acting as agents of the KDA and must comply with instructions from representatives of the KDA and law enforcement agencies;

54 Processor/Handler Licensing Agreement F. Agrees to pay the participation fee and other applicable fees set forth in 302 KAR 50:060; NOTE: Extensive review of program policy and development of long-term regulations led to restructure of Processor/Handler participation fees. Fees now more closely aligns with actual costs to administer and regulate different types.

55 Fee Schedule

56 Processor/Handler Licensing Agreement G. Consents to the entry onto, and inspection of, all premises where hemp or other cannabis plants or materials are located, or licensed to be located, by representatives of KDA and law enforcement agencies, with or without cause, with or without advance notice; AUTHORIZED ACCESS

57 Processor/Handler Licensing Agreement H. Consents to forfeiture and destruction, without compensation, of: 1) Plants or material found to have a measured delta-9-thc content in excess of 0.3 percent on a dry weight basis; 2) Plants or materials bearing off-label pesticide residues (or believed by KDA to have had pesticides applied off-label), regardless of the source or cause of contamination; 3) Plants or material located in an area that is not licensed by KDA; and 4) Plants or material not properly accounted for in required reporting to KDA

58 Processor/Handler Licensing Agreement I. Acknowledges that the License Holder shall comply with restrictions established by KDA limiting the movement of hemp plants and plant parts as set forth in 302 KAR 50:030, Section 16; Summarized in the Transfer Requirements which we ll cover later in the presentation.

59 Processor/Handler Licensing Agreement J. Acknowledges that the risk of financial or other loss is borne solely by the License Holder;

60 Processor/Handler Licensing Agreement K. Agrees that any time hemp is in transit, a copy of this Agreement shall be available for inspection upon the request of a representative of KDA or a law enforcement agency;

61 Processor/Handler Licensing Agreement L. Agrees that, upon request from a representative of KDA or a law enforcement agency, the License Holder shall immediately produce a copy of this Agreement for inspection;

62 Processor/Handler Licensing Agreement M. Agrees to submit reports required by KDA, on or before the deadlines set by KDA; Proven to be one of the BIGGEST Program challenges!

63 Processor/Handler Licensing Agreement N. Agrees to notify KDA of any interaction with a representative of a law enforcement agency immediately by phone ( ) and follow-up in writing (hemp@ky.gov) within three (3) calendar days of the occurrence;

64 Processor/Handler Licensing Agreement O.Agrees to notify KDA of any theft of hemp or other cannabis materials;

65 Processor/Handler Licensing Agreement P. Agrees to not allow another person to process or handle hemp in lieu of requesting a separate Processor/Handler Licensing Agreement, where the purpose or effect of such an arrangement would be to evade a law or administrative regulation that would otherwise bar that person s participation in the Program;

66 Processor/Handler Licensing Agreement Q. Agrees to not possess, save, breed, reproduce, clone, or otherwise preserve for replication any variety of plants for which the License Holder does not have documented permission;

67 Processor/Handler Licensing Agreement R. Agrees to provide to KDA, upon request, a copy of: 1) Any intellectual property agreement License Holder has signed or executed related to hemp or other cannabis; and 2) Any contract or other agreement related to the planting, replication, harvest, storage, transfer, transport, processing, and/or sales of hemp;

68 Processor/Handler Licensing Agreement S. Agrees to comply with the federal Food Drug and Cosmetic Act and all other applicable local, state, and federal laws and regulations relating to product development, product manufacturing, consumer safety, and public health;

69 Processor/Handler Licensing Agreement Kentucky Cabinet for Health and Family Services arterguide.pdf All CBD extractors must at least have a Food Safety permit it will, at some point, be used for human consumption, or as an ingredient in topicals, etc. FDA registration may be required Grain processors for food must have Food Safety permit License Holder s responsibility to determine the requirements and meet those KDA does not regulate food safety, dietary supplements, labeling, etc.

70 Processor/Handler Licensing Agreement T. Agrees to comply with all land use restrictions set forth in 302 KAR , Section 5;

71 302 KAR , Section 5 Land Use Restrictions Section 5. Land Use Restrictions for Licensed Processors/Handlers. (1) A licensed processor/handler shall not process or store leaf or floral material from hemp or other cannabis in or adjacent to any structure that is used for residential purposes. (2) A licensed processor/handler shall not process hemp or other cannabis in a site that is located within 1,000 feet of a school or a public recreational area.

72 302 KAR , Section 5 Land Use Restrictions Section 5. Land Use Restrictions for Licensed Processors/Handlers. (continued) (3) A licensed processor/handler shall not apply to process, handle, or store hemp on any property which is not owned or completely controlled by the applicant or licensed processor. (4) A licensed processor/handler shall not process, handle, or store hemp on property owned by, leased from, or previously submitted in an application by any person who is ineligible or was terminated, or denied admission to the program for one or both of the following reasons: (a) Failure to obtain an acceptable criminal background check, or (b) Failure to comply with an order from a representative of the department.

73 Processor/Handler Licensing Agreement U. Agrees to not grow, cultivate, or possess live hemp or cannabis plants without obtaining a Grower Licensing Agreement; and NO LIVE PLANTS!

74 Processor/Handler Licensing Agreement V. Agrees that the industrial hemp research is limited to the research plan as outlined in the License Holder s approved application. Any changes to the research plan must be approved in writing by KDA, and any applicable fees paid to KDA;

75 Processor/Handler Licensing Agreement Section 2. Responsibilities of KDA. In exchange for the commitments agreed to by License Holder in Section 1 of this Agreement, KDA agrees to perform the responsibilities below: A. Conduct the Program in accordance with the requirements set forth in KRS to ; and in 302 KAR 50:020 to 50:080; B. Certify and register sites as required by 7 U.S.C. 5940(b)(1)(B)(ii); C. Make prompt efforts to obtain necessary Permits to Import from the federal Department of Justice s Drug Enforcement Administration for the importation of industrial hemp seed for planting; and

76 Processor/Handler Licensing Agreement D. Conduct a sampling and testing program to confirm harvest compliance with the legal definition of industrial hemp, stated in 7 U.S.C and KRS (5), as the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol [THC] concentration of not more than 0.3 percent on a dry weight basis.

77 Processor/Handler Licensing Agreement Section 3. Miscellaneous. A. The Parties agree that the terms of this Agreement supersede any previous agreement concerning the License Holder s participation in the Program as a Processor/Handler, but shall not supersede or alter the terms of any agreement concerning the License Holder s participation in the Program as a Grower. B. The Parties expressly agree to comply with the provisions of 302 KRS to , and 302 KAR 50:020 to 50:080, all of which are incorporated herein by reference.

78 Processor/Handler Licensing Agreement C. The License Holder acknowledges the inherent risk associated with participation in a research program focusing on a new crop. License Holder acknowledges that License Holder bears sole responsibility for financial or other losses that may result from License Holder s choice to participate. License Holder agrees that KDA is not responsible for reimbursing or compensating License Holder for any loss resulting from License Holder s involvement with KDA s Program, and waives any right to seek compensation for the value of such losses.

79 Processor/Handler Licensing Agreement D. This Licensing Agreement shall expire March 31, 2021 (or 2019 for single-year processors). Future participation in the Program will require License Holder to reapply and be approved by KDA = Application OR Renewal info with Production Report.

80 Processor/Handler Licensing Agreement E. Each provision of the Agreement is separate. If any provision is determined to be invalid, the rest of this Agreement shall continue in full force and effect. It is the intent of the Parties that if any provision of this Agreement is determined to be unenforceable as written, then that provision shall be enforced to the extent permitted by law, and the remainder of this Agreement shall be unaffected and remain enforceable.

81 Processor/Handler Licensing Agreement F. Failure to comply with terms of this Agreement shall constitute grounds for appropriate disciplinary action, up to and including termination of this Agreement and expulsion from the department s program. A person who has been expelled from the Program shall not be eligible to reapply to the program for a period of five (5) years from the date of expulsion.

82 Processor/Handler Licensing Agreement G. This Agreement may be terminated by either party upon thirty (30) days prior written notice. H. The Parties agree that any dispute arising from this Agreement (or from any provisions of KRS to , or 302 KAR 50:020 to 50:080, all of which are incorporated herein by reference) shall be decided by the application of the laws of the Commonwealth of Kentucky; that the Franklin Circuit Court shall be the sole forum for the adjudication of such disputes, other than the administrative review procedures set forth in 302 KAR 50:030.

83 Processor/Handler Licensing Agreement I. KDA does not discriminate on the basis of race, color, religion, sex, national origin, sexual orientation or gender identity, ancestry, age (40 and over), disability, veteran status or genetic information in employment or the provision of services and provides, upon request, reasonable accommodation including auxiliary aids and services necessary to afford individuals with disabilities an equal opportunity to participate in all programs and activities.

84 Questions?

85 Break 15 mins You may step outside the room We will begin again promptly in 15 mins

86 Reporting Requirements Doris Hamilton & Michelle Shane

87 Reporting Requirements A Note on Reporting Processors have it easy. Only required report is the December 1 Production Report and License Renewal form. Renewal REQUIRES your KSP background check. Request it early and attach it to the report and renewal form. KDA does NOT recommend that any reporting be completed by another party on your behalf OR that your complete reports for associated growers. Other needed documents: Site Modification Request, Seed Request Forms, etc.

88 Reporting Requirements

89 Reporting Requirements Be aware of due dates (Milestone Schedule) Electronic Submission is preferred to Do NOT submit the same form by both and regular mail Typing your name in the signature line is acceptable as long as report is submitted by your on record

90 Forms on the Website Bookmark or save to favorites:

91 KDA Website is All New! Bookmark it! Hemp Home Page Important Stuff (way down here)

92 Hemp Website Processor List Industrial Hemp Research Pilot Program Overview Page Forms and Documents Processor/Handler List

93 Hemp Website - Forms License Holders - Forms and Milestones page Actual Forms (way, way down here)

94 Hemp Website Transfer Requirements Transfer Requirements page Transfer Requirements

95 Hemp Website - Law Hemp and The Law page Statutes, Laws, and other pertinent documents

96 Seed/Propagule Requests Domestic International

97 Seed/Propagule Requests In-state purchases by Licensed Growers does not require pre-approval from KDA

98 International Seed Sourcing Participants buying imported seeds must submit the International Seed Request Form by February 28, 2018 to ensure timely import permits from the DEA. All hemp seed from international sources must be imported by KDA. All documentation on shipment must name only the KY Department of Agriculture Participants are responsible for arranging shipping, securing an import broker, payment of all costs and fees.

99 International Seed Request

100 International Seed Request

101 International Seed Request

102 International Seed Sourcing Ports of Entry Good Ports: JFK Los Angeles Pembina, North Dakota via freight from Canada Troubled Ports: Chicago Norfolk, Virginia Methods of Shipment Good Methods: Air Freight from Canada Troubled Methods: Cargo Ship

103 Domestic Seed Request

104 Domestic Seed Request

105 Domestic Sourcing Requests to obtain Domestic hemp seed/planting material will be considered by KDA Participants planning to buy seeds/plants from a U.S. source outside of Kentucky must submit the Domestic Seed Request Form 3 weeks in advance.

106 Summary of Varieties List Document found in your folder More than 80 different hemp varieties, named strains have been grown and tested in the Kentucky Industrial Hemp Research Pilot Program Six (6) Varieties have been Prohibited 29 Varieties are designated as Varieties of Concern Varieties of Concern should be utilized with caution as they are at a higher risk of exceeding the THC limit and potentially resulting in the ordered destruction of the crop. 51 Other varieties testing without cause for concern

107 Summary of Varieties List

108 Summary of Varieties List

109 Summary of Varieties List

110

111 Site Modification Request Different tables for fields, greenhouse/indoor, storage, processing (Processors only). Use only needed tables, submit all pages AND new maps.

112 Production Report and License Renewal

113 Production Report and License Renewal

114 Production Report and License Renewal

115 Production Report and License Renewal

116 Production Report and License Renewal

117 Signing Authority for Business Entities

118 Questions?

119 Transfer Requirements These requirements were designed to keep you legal. Failure to comply with the Transfer Requirements may result in expulsion or other disciplinary measures. Hemp Staff is available to help answer your questions.

120 Transfer Requirements

121 Transfer Requirements In-Program Materials To or from only licensed participants VERIFY LICENSES May transfer to other HEMP pilot programs AT YOUR OWN RISK KDA has no authority and offers no protection for hemp materials outside of KY Must have Licensing Agreement with shipment

122 Transfer Requirements Out-of-Program Materials Eligible for transfer to anyone License Holder s responsibility to ensure compliance with other state laws All products must meet regulations of other authorities (Food Safety, FDA, etc.)

123 Transfer Requirements Out-of-Program Materials continued... All floral extracts or their derivatives MUST be tested and ensured to be no more than 0.3% THC Testing must be kept on file for inspection by KDA Under NO circumstances does extract above 0.3% THC move period!

124 Transfer Requirements

125 Processor/Handler Inspections KDA will be conducting Processor/Handler Inspections Verifying proper permits and licenses Inspection of all facilities and materials Sample collection for THC testing

126 Processor/Handler Inspections 302 KAR 50:030 Section 15. Collection and Retention of Cannabis Samples. (1) The department shall have the authority to collect and retain samples of hemp or other cannabis, and products derived from all hemp or cannabis in the possession of a licensed processor/handler. (2) All samples collected by the department become the property of the department and are nonreturnable. No compensation shall be owed by the department. (3) The material to be collected for sampling will be determined by the department inspector.

127 Prohibited Products, 302 KAR 50:070 Section 1. Products Not to be Sold to Members of the Public. (1) The following hemp-derived products shall not be manufactured: (a) Hemp cigarettes; (b) Hemp cigars; (c) Chew, dip, or other smokeless material consisting of hemp leaf material or hemp floral material; and (d) Hemp leaf material or floral material teas.

128 Prohibited Products, 302 KAR 50:070 (2) The following hemp-derived products shall not be marketed, sold, or distributed to any person in Kentucky who does not hold a license from the Department, or any person outside the Commonwealth (but within the United States) who is not authorized by an institution of higher education, or state department of agriculture under the authority of 7 U.S.C and the laws of that state: (a) Whole hemp buds; (b) Ground hemp floral material; (c) Ground hemp leaf material; and (d) Any hemp product with a delta-9-thc concentration in excess of three-tenths (0.3) percent.

129 Prohibited Products, 302 KAR 50:070 (3) If the department finds that it is more likely than not that a person has manufactured, marketed, sold, or distributed a hemp-derived product in violation of this administrative regulation, the department shall assess a civil monetary penalty against that person of not less than $100 and not more than $1,000 per violation, in addition to possible termination of the Grower Licensing Agreement or Processor/Handler Licensing Agreement.

130 READ the Statutes & Regulations! KRS to KRS KAR 50:030. Policies and procedures for processors and handlers.

131 READ the Regulations! 302 KAR 50:030. Policies and procedures for processors and handlers. Section 20. Immediate License Suspension Section 21. Temporary License Suspension Procedures Section 22. License Revocation Hearing and Consequences of Revocation Section 23. Monetary Civil Penalties (not to exceed $2,500 per violation)

132 Questions?

133 Kentucky Processors Make it Work! 2017 Processor Production Reports $7.5 Million Paid to Kentucky Growers $ 25.6 Million Capital Investments made 81 Full-time Jobs Created $16.7 Million Gross Product Sales

134 Signing Instructions Sign and date the last page of your Licensing Agreement Return the document where you checked in Document will be reviewed for completeness Document will be signed next week by KDA Chief of Staff Keith Rogers Signed copy of the Agreement and your Hemp Processor/Handler License will be returned to you ASAP (bare with us!) DO NOT take the Licensing Agreement with you. Don t date front page.

135 Contact KDA Industrial Hemp Program Staff Kentucky Department of Agriculture Industrial Hemp Research Pilot Program 111 Corporate Drive, Frankfort, KY Mainline: (502) Doris Hamilton, Hemp Program Manager Brent Burchett, Plant Marketing Director Michelle Shane, Hemp Program Staff Sarah Gravitt, Hemp Program Staff