1. (a) A registered processor is authorized to do the following, in compliance with this chapter:

   1. (1) purchase and store raw industrial hemp for processing at the locations identified in the processor registration;
   2. (2) process industrial hemp;
   3. (3) receive compensation for raw industrial hemp as permitted for registered growers under 11 AAC 40.205(a)(4);
   4. (4) provide samples of processed industrial hemp or industrial hemp products to the division for sampling and testing;
   5. (5) conduct in-house testing for the processor's own use;
   6. (6) store processed hemp or hemp products at the locations identified in the processor registration;
   7. (7) transport industrial hemp or industrial hemp products in compliance with 11 AAC 40.710; and
   8. (8) receive compensation for processed industrial hemp or industrial hemp products from a processor or retailer registered under 11 AAC 40.300 - 11 AAC 40.335 or 11 AAC 40.500 - 11 AAC 40.525.

2. (b) A registered processor must

   1. (1) comply with all applicable occupational health and safety standards;
   2. (2) use registered scales in compliance with AS 45. 75.080 and 17 AAC 90.920 - 17 AAC 90.935;
   3. (3) permit inspection by the division or division's representatives in compliance with AS 03.05.040 or 03.05.076(e);
   4. (4) permit inspection by local safety officials, including local fire departments, building inspectors, or regulatory code enforcement officers as required by other law; and
   5. (5) upon request of the division and not later than three business days after notice of the request, provide a copy of the registration and inspection reports of the registered scales to the division.

3. (c) A registered processor may not

   1. (1) receive compensation for processed industrial hemp or industrial hemp
   2. (2) process or store industrial hemp in a structure that is primarily used for residential purposes;

   3. (3) purchase for processing any industrial hemp or industrial hemp product from a person who is not

      1. (A) registered with the division;
      2. (B) registered or licensed by other states or qualifying entities that have implemented an industrial hemp pilot program in accordance with 7 U.S.C. 5940 (sec. 7606 of the Agricultural Improvement Act of 2014), or a United States Department of Agriculture approved industrial hemp program, authorized under 7 U.S.C. 1639p (sec. 10113 of the Agricultural Improvement Act of 2018); or
      3. (C) a lawful international source authorized in writing by the division.

(Eff. 4/4/2020, Register 234; am 11/3/2023, Register 248)

Authority: AS 03.05.010, AS 03.05.040, AS 03.05.050, AS 03.05.076