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FAQS: Hemp
Q: Does OLCC regulate hemp in Oregon?
A: The primary agency that regulates hemp in Oregon is the Oregon Department of Agriculture (ODA). Persons who want to grow or process hemp in Oregon must register with ODA. OLCC is only involved when the hemp interacts with the licensed recreational marijuana market. We issue certificates to ODA registered hemp growers and hemp handlers that give them Metrc accounts so they can transfer hemp to OLCC licensees. We also have requirements that any hemp entering an OLCC licensed premises or being sold by an OLCC marijuana retailer must meet, rules about what each license type is allowed to do with hemp, and rules about when a marijuana producer can be on the same tax lot as a hemp grow.
 
Q: I have a marijuana producer license. Can I also grow hemp?
A: It depends. If the hemp grow will not be on the same tax lot as a marijuana producer license and will not be within the licensed premises of any OLCC marijuana license, then there are no OLCC rules that would prohibit you from growing hemp. If you want hemp to be grown on the same tax lot where a marijuana producer license is located, the producer must submit a control plan to OLCC and receive approval before the hemp grower registers the site with ODA. You cannot grow hemp in the area that you have licensed for marijuana production. If you want to grow hemp in an area that is currently part of your producer license, you would need to request and receive approval to remove that area from your licensed premises and submit and receive approval of a hemp control plan before registering the site with ODA.
 
Q: I have a marijuana producer license and an approved hemp control plan. Can I transfer hemp to other OLCC licensees?
A: No, a hemp control plan does not allow you to transfer hemp to OLCC licensees. If you want to transfer hemp to OLCC licensees, you will need to get an OLCC Industrial Hemp Certificate for your hemp business.
 
Q: I’m an industrial hemp grower. How can I get my hemp into the OLCC market?
A: ODA registered hemp growers can transfer raw industrial hemp to OLCC licensed processors that have a hemp endorsement and to OLCC-licensed wholesalers. You must apply and be approved for an OLCC hemp certificate to be able to make those transfers. See the Division 25 rules for complete details.
 
Q: I’m a registered ODA Hemp Handler how can I get my hemp into the OLCC market?
A: ODA registered hemp handlers can transfer raw industrial hemp or products made from hemp to OLCC licensed processors that have a hemp endorsement as well as to OLCC licensed wholesalers and retailers. You must apply and be approved for an OLCC hemp certificate to be able to transfer those items. See the Division 25 rules for complete details.
 
Q: I’m an ODA registered hemp grower. Can I give hemp items directly to OLCC retailers?
A: No. As a grower, the only type of hemp that you can transfer to OLCC licensees is harvested industrial hemp that has not been processed or only minimally processed. This does not include harvested material that has been dried, cured, and trimmed into usable hemp. You can only transfer your harvested industrial hemp to OLCC licensed processors and wholesalers, at which point a processor could process the hemp into a consumer-ready product.
 
Q: I’m an ODA registered hemp handler. Can I give hemp items directly to OLCC retailers?
A: Yes, as a handler you can transfer hemp items to OLCC licensed retailers and wholesalers, and , including consumer-ready hemp items. Any item that is packaged for ultimate sale to consumers must be packaged and labeled in accordance with OLCC packaging and labeling rules.
 
Q: I’m an OLCC licensee. How do I know that the items I’m receiving are actually hemp?
A: Prior to receiving the hemp or hemp item from an ODA registered hemp grower or handler, you must receive a copy of the results of any test that has been conducted on the hemp or hemp item. For raw hemp, this includes a copy of the pre-harvest THC testing. Additionally, before receiving any hemp or hemp item, you must verify that the item has the appropriate testing recorded in Metrc and that the item is within the THC limits specified in OAR 845-025-2760.
 
Q: I’m an OLCC processor. Can I mix industrial hemp and marijuana together prior to making a concentrate or extract?
A: Yes. As long as the marijuana and hemp both have been tested as required under the testing rules, a processor with a hemp endorsement can combine hemp and marijuana when processing a cannabinoid concentrate, cannabinoid extract, or cannabinoid product. Any item that contains both hemp and marijuana is considered a marijuana item.
 
Q: I’m an OLCC retailer. Can I have any hemp products in my inventory that aren’t in Metrc?
A: No. Prior to December 28, 2017, retailers could receive hemp items from non-OLCC licensees, but this old inventory could only be sold until April 1, 2018. At this point, any hemp or hemp items entering a licensed premises must come via a Metrc manifest.
 
Q: What type of hemp products can an ODA registered grower transfer into the OLCC licensing system?
A: An ODA-registered industrial hemp grower with an Industrial Hemp Certificate issued by the OLCC can only transfer “harvested industrial hemp.” This is industrial hemp that has not been processed, or has been only minimally processed for purposes of transfer or storage. It does not include “usable hemp” that has been manicured for sale to consumers. Harvested industrial hemp can be transferred to an OLCC-licensed processor who holds an industrial hemp endorsement, or to an OLCC-licensed wholesaler.
 
Q: What type of hemp products can an ODA registered handler transfer into the OLCC licensing system?
A: An ODA-registered industrial hemp handler with an Industrial Hemp Certificate issued by the OLCC can transfer any “hemp item.” Hemp items include usable hemp, hemp concentrates, hemp extracts, and hemp cannabinoid products. Hemp items can be transferred to OLCC licensed wholesalers and retailers as well as to OLCC licensed processors with a hemp endorsement. Hemp handlers can also transfer “harvested industrial hemp” (raw hemp) to OLCC licensed processors with a hemp endorsement and to OLCC licensed wholesalers.
 
Q: I’m an OLCC processor. How do I apply for a hemp processing endorsement?
A: Change of processor endorsement application forms are available on the OLCC website. If you are planning to receive raw hemp material to process into concentrates or extracts, the ODA may require you to obtain a hemp handler registration as well. You can find the ODA hemp handler’s application forms on their website.
 
Q: I’m an OLCC wholesaler. Who can I receive hemp from?
A: You can receive hemp items from an OLCC licensed processor with a hemp endorsement, from another OLCC licensed wholesaler, or from an ODA-registered hemp handler with an OLCC industrial hemp certificate. You can receive “harvested industrial hemp” (raw hemp) from an ODA-registered hemp grower or handler with an OLCC industrial hemp certificate.
 
Q: I’m an OLCC retailer. Who can I receive hemp from?
A: You can receive hemp items from an OLCC licensed processor with a hemp endorsement, from another OLCC licensed wholesaler, or from an ODA-registered hemp handler with an OLCC industrial hemp certificate.
 
Q: Since hemp items will be in CTS, are they taxed?
A: No. Hemp items are not taxed, unless they are mixed with marijuana. For example, a chocolate bar made with half hemp extract and half marijuana extract would be taxed as a marijuana item.
 
Q: I’m an OLCC processor, can I process hemp for an ODA registered grower or handler and transfer the extract or concentrate back to them?
A: No. Once the hemp is in the OLCC system it is required to stay in the system until sale to a consumer at the retail level. An OLCC processor may transfer to another OLCC licensed processor, wholesaler, or retailer.
 
Q: What testing is required for hemp products?
A: After being entered into Metrc, any hemp or hemp item intended for transfer to an OLCC licensee must be tested for potency as well as for any other test that would be required for the equivalent marijuana item. The Oregon Department of Agriculture has additional testing rules that you should be familiar with as a registered hemp grower or handler.
 
Q: Can I transfer in any hemp product as long as it contains less than 0.3% THC?
A: Not necessarily. Our rules set limits on the total amount of THC that can be present in a “container” – basically a packaged unit of sale ready to be sold to a consumer. Except for usable hemp (flower and pre-rolls), hemp items packaged for sale to consumers can have no more than 10 mg total THC per container. If the product has servings, it can also have no more than 1 mg total THC per serving. Products that exceed these limits cannot be transferred to OLCC licensees and cannot be sold to consumers by OLCC retailers. See OAR 845-025-2760 for details. These limits only apply to hemp in the OLCC-regulated marijuana market. They do not apply to hemp in the general market.
 
Q: Who is responsible for making sure a hemp product has been tested and is within the THC limits specified by OLCC?
A: Both parties are responsible. As a certificate holder, you are prohibited from transferring any item that exceeds the THC limits in OAR 845-025-2760 to an OLCC licensee. OLCC licensees are prohibited from receiving hemp or hemp items that exceed these limits. The certificate holder is responsible for confirming that the item is within the THC limits before manifesting it out, and the licensee is responsible for confirming the THC limits before accepting the transfer. It is important to note that exceeding the THC limits will not show as a failed test in Metrc.
 
Q: Do hemp products have any special labeling requirements?
A: Any hemp items packaged for ultimate sale to a consumer need to be packaged and labeled in accordance with OLCC packaging and labeling rules. Any label other than a generic label must receive pre-approval from OLCC. To submit labels and packaging for approval, you will need to visit our Recreational Marijuana Licensing portal and select “Register for a BUSINESS account.” Additional information about the packaging and labeling pre-approval process can be found on our Packaging and Labeling Pre-Approval page.
 
Q: How do I return products back to the hemp handler I received them from?
A: Once an item has been accepted into an OLCC licensee’s facility, it cannot be returned to the hemp certificate holder. The OLCC-regulated marijuana market is a closed system, so hemp entering into the licensed system is essentially a one-way street.