1. (a) Who must apply.

   1. (1) Growers and processors/handlers.

      1. (A)
2. (i) A license to grow shall allow the license holder to:
3. (a) (a) Obtain seed pursuant to this part for planting;
4. (b) (b) Possess seed for planting;
5. (c) (c) Cultivate the crop;
6. (d) (d) Harvest plant parts;
7. (e) (e) Possess and store harvested plant parts; and

8. (f) (f) Transport plant parts to a market for sale.

   1. (ii) The license holder must abide by the terms set forth in the Grower Licensing Agreement with the Department of Agriculture.

      1. (B)

         1. (i) A license to engage in the processing or handling of industrial hemp that does not fall within the definition of a “publicly marketable hemp product” shall allow the license holder to process, handle, and store industrial hemp at one (1) or more specified locations in the state.
         2. (ii) The license holder must abide by the terms set forth in the Processor/Handler Licensing Agreement with the department.
      2. (C) No person who does not hold a hemp grower or processor/handler license from the department shall grow, cultivate, handle, store, or process industrial hemp at any location within Arkansas.
      3. (C) No person under the age of eighteen (18) years of age shall apply for or hold a grower or processor/handler license.

   2. (2)

      1. (A) Two (2) types of licenses can be issued by the department for cultivation or processing of industrial hemp in Arkansas:

         1. (i) Research only; and
         2. (ii) Research with intent to market.
      2. (B) These types of licenses may include seed research projects through a university, private entity working with a university, or private entity working with a licensed plant breeder to develop industrial hemp seed varieties that would meet the requirements listed in 2 CAR § 31-105, approved seed for planting.

   3. (3)

      1. (A) Applications for cultivation or processing of industrial hemp in Arkansas may be made at any time during the year, but the effective date of the license will be July 1 through June 30 annually.
      2. (B) Renewal applications will be due June 15.

   4. (4)

      1. (A) Applications shall be handled and processed by the department and reviewed for approval or denial.
      2. (B) The department review process may require sixty (60) days to complete.
      3. (C) Acceptance of applications may be suspended for a period of time to allow the department staff adequate time to process applications and/or handle additional hemp-related duties.
      4. (D) Any delays or additional requirements for submitting applications may be set as policy and published on the department’s industrial hemp webpage.
      5. (E) After review and acceptance, the applicant will be notified to send the required application fees and, upon receipt, the license certificate will be issued.

   5. (5)

      1. (A) A person interested in holding a grower license or processor/handler license shall:

         1. (i) Complete the department’s Industrial Hemp Application Form annually; or
         2. (ii) Follow an established protocol or renewal process as notified.
      2. (B) A person interested in both a grower license and a processor/handler license must complete both license applications.
   6. (6) Failure to comply with any of this part or the provisions of the Arkansas Industrial Hemp Act, Arkansas Code § 2-15-401 et seq. [repealed], shall result in an automatic revocation of the license for the full remaining period of the license.
   7. (7) An analytical testing of THC levels greater than three-tenths of one percent (0.3%) shall not result in revocation of a license so long as the crop is destroyed in accordance with this part.

   8. (8)

      1. (A) Applicants shall disclose the date and location of any conviction of any criminal offense, other than misdemeanor traffic offenses, committed in any jurisdiction.
      2. (B) Failure to comply with this requirement in a complete and truthful manner shall be grounds for denial, suspension, or revocation of a permit, as may be determined by the Industrial Hemp Committee and approved by the full State Plant Board.
   9. (9) The following applicants shall not be granted a permit: any applicants with any felony conviction in the prior ten (10) years.

   10. (10) Industrial hemp business licenses. Licensees must:

       1. (A) Maintain all proper state, county, and local business licenses and permits; and
       2. (B) Comply with all applicable zoning rules.

9. (b) Application for licenses.

   1. (1) Growers license.

      1. (A) Growers in Arkansas who wish to cultivate industrial hemp shall submit to the department an application for a license to do so.

      2. (B) The application shall include the following information for consideration:

         1. (i) Type of license, as set forth in subdivision (a)(2) of this section;
         2. (ii) Full name, Arkansas residential address, telephone number, and email address;
         3. (iii)
10. (a) (a) Street address, location ID, and GPS coordinates for each field, greenhouse, building, or site where industrial hemp will be grown, handled, or stored, updated annually or as needed.

11. (b) (b) If the applicant represents a business entity, the:

    1. (1) (1) Full name of the business;
    2. (2) (2) Principal Arkansas business location address;
    3. (3) (3) Full name of the applicant who will have signing authority on behalf of the entity; and

    4. (4) (4) Title and email address of the person;

       1. (iv) Maps depicting each site where hemp will be grown, handled, or stored, with appropriate designations for entrances, field boundaries, and specific locations corresponding to the GPS coordinates;

          1. (v) Research plan, including the proposed acreage or greenhouse/indoor square footage to be planted;
          2. (vi)
12. (a) (a) Intended variety name, origin, and seed or plant certifying agency for each planting.

13. (b) (b) This information must conform to 2 CAR § 31-103;

    1. (vii)
14. (a) (a) Intended marketable portion of the plant (seed, fiber, hurd, cannabinoids, not including THC, or certified planting seed or propagule as set forth in the Arkansas Industrial Hemp Act, Arkansas Code § 2-15-401 et seq. [repealed]).

15. (b) (b) The department may limit the scope and acreage of research projects.

    1. (c) (c) Initial acreage may be limited to one (1) acre or less;

       1. (viii) Intended market and intended purchaser's name and address if the license is of the type "research with intent to market";

          1. (ix)
16. (a) (a) Written statement of the research objective and data or observations to be collected and reported to the department.

17. (b) (b) The research objective must conform to the authorized research purposes set forth in the Arkansas Industrial Hemp Act, Arkansas Code § 2-15-401 et seq. [repealed].

    1. (c) (c) The written statement in this section constitutes a written agreement between the license holder and the department;

       1. (x)
18. (a) (a) Evidence of income from a farming operation and/or agricultural or research experience.

19. (b) (b) Examples may include:

    1. (1) (1) Tax returns (IRS 1040 schedule F);
    2. (2) (2) Farm serial number; or

    3. (3) (3) Education in agriculture, research, or related field.

       1. (c) (c) These will be listed on the license application form and instructions published annually when the current year application forms become available;

          1. (xi) Intended storage location, expressed in GPS coordinates, for harvested plant parts;
          2. (xii) Agreement to provide access to the department and law enforcement agencies at any time for sampling or inspection in the field or storage;
          3. (xiii)
20. (a) (a) Agreement to ensure the monitoring and destruction of volunteers for three (3) years following cultivation regardless of land lease or ownership status during that period.

21. (b) (b) It shall be the responsibility of the license holder to monitor and destroy volunteers.

    1. (c) (c) The responsibilities of the license holder in this provision may be transferred to another entity by mutual agreement in writing with both parties' signatures;

       1. (xiv)
22. (a) (a) Agreement to maintain all records, including but not limited to those for agronomics, contracts, sampling, storage, expenses, transportation, and delivery, as stated in 2 CAR § 31-117.

23. (b) (b) All records shall be kept within the State of Arkansas and made available for inspection on request.

    1. (c) (c) An in-state agent shall be maintained for receipt of records or receipt of services;

       1. (xv) Agreement to notify the department within one (1) month if there are any changes or deviations; and

          1. (xvi) Agreement to notify the department if there are any changes to the license holder’s address within one (1) month of a change for the duration of the license.

       2. (C)

          1. (i) Policies may be established and reviewed annually for necessary updates to address unforeseen needs.
          2. (ii) These will be published annually when the current year application forms become available.

       3. (D)

          1. (i) An applicant shall not be a participant in the Industrial Hemp Research Program until the conditionally approved applicant and the department have executed a Grower Licensing Agreement, which shall be signed within the industrial hemp grower application.
          2. (ii) The Grower Licensing Agreement shall set forth the terms and conditions governing participation in the program.
          3. (iii) The terms and conditions set forth in the agreement:
24. (a) (a) Shall include, at a minimum, the requirements listed in the Arkansas Industrial Hemp Act, Arkansas Code § 2-15-401 et seq. [repealed], and in this part for licensed growers; and

25. (b) (b) May include other requirements set as policy and published annually.

    1. (2) Processor/handler license.

       1. (A) The processor/handler license application form shall require applicants to submit, at a minimum, the following information and documents:

          1. (i) Full name, Arkansas residential address, telephone number, and email address, if an email address is available;
          2. (ii) If the applicant represents a business entity, the full name of the business, the principal Arkansas business street address, the full name of the applicant who will have signing authority on behalf of the entity, title, and email address if an email address is available of the person;
          3. (iii) Research plan;
          4. (iv) Planned source of industrial hemp;
          5. (v) Maps and street address, location ID, and GPS coordinates for each building or site where hemp will be processed, handled, or stored; and
          6. (vi)
26. (a) (a) Agreement to maintain all records, including but not limited to those for agronomics, contracts, sampling, storage, expenses, transportation, and delivery, as stated in 2 CAR § 31-117.

27. (b) (b) All records shall be kept within the State of Arkansas and made available for inspection on request.

    1. (c) (c) An in-state agent shall be maintained for receipt of records or receipt of services.

       1. (B)

          1. (i) Policies may be established and reviewed annually for necessary updates to address unforeseen needs.
          2. (ii) These will be published annually when the current year application forms become available.

       2. (C)

          1. (i) An applicant shall not be a participant in the program until the conditionally approved applicant and the department have executed a Processor/Handler Licensing Agreement, which shall be signed within the industrial hemp processor application.
          2. (ii)
28. (a) (a) The Processor/Handler Licensing Agreement shall set forth the terms and conditions governing participation in the program.

29. (b) (b) The terms and conditions set forth in the Processor/Handler Licensing Agreement:

    1. (1) (1) Shall include, at a minimum, the requirements listed in the Arkansas Industrial Hemp Act, Arkansas Code § 2-15-401 et seq. [repealed], and in this part for licensed processors/handlers; and

    2. (2) (2) May include other requirements set as policy and published annually.

       1. (c) Criminal history background check.
    3. (1) Each licensed grower, processor/handler, or applicant shall undergo and pay for an annual criminal background check.

    4. (2)

       1. (A) Each person who is required to undergo an annual criminal background check shall:

          1. (i) Submit a criminal background check request to the Division of Arkansas State Police or other law enforcement agency designated by the department;
          2. (ii) Submit payment for the background check fee directly to the division or other law enforcement agency designated by the department; and
          3. (iii) Following completion of the background check, ensure delivery of the report to the department not more than fourteen (14) days following the date the application was received by the department, directly from the division or other law enforcement agency designated by the department.
          4. (d) The department shall not accept a report from a criminal background check that occurred more than sixty (60) days prior to submission of the application.
30. (e) Failure to submit the background check by the deadline stated in subdivision (c)(2)(A)(iii) of this section shall be cause for denial of application.
31. (f) Substitution of a signing authority shall require approval from the department and the submission of a current criminal background check (for the substitute).

Codification Notes: The Arkansas Industrial Hemp Act, Arkansas Code § 2-15-401 et seq., was repealed by Acts 2021, No. 565, § 1. "THC" means tetrahydrocannabinol.