Montana Administrative Register Notice 4-20-270 No. 21   11/06/2020    
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In the matter of the adoption of New Rules I, II, III, and IV and the amendment of ARM 4.19.101, 4.19.102, 4.19.103, 4.19.104, 4.19.107, 4.19.108, and 4.19.110 pertaining to Hemp










TO: All Concerned Persons


            1. On December 1, 2020, at 1:00 p.m., the Department of Agriculture will hold a public hearing in Room 225 of the Scott Hart Building, at Helena, Montana, as well as virtually through the meeting platform Zoom to consider the proposed adoption and amendment of the above-stated rules. For the virtual meeting details, please contact Virginia Corbett by email at agr@mt.gov or by phone at (406) 444-3156.


2. The Department of Agriculture will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Agriculture no later than 5:00 p.m. on November 24, 2020, to advise us of the nature of the accommodation that you need. Please contact Cort Jensen, Department of Agriculture, 302 N. Roberts, Helena, Montana, 59601; telephone (406) 444-5402; fax (406) 444-5409; or e-mail agr@mt.gov.


3. The rules proposed to be adopted provide as follows:


            NEW RULE I RESEARCH PROGRAM   (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.


AUTH: 80-1-102, 80-18-107, MCA

IMP: 80-18-103, MCA


REASON: Establishes a "research" licensing component that allows the department to register and track hemp not intended for commercial purposes. 


            NEW RULE II  VOLUNTEER HEMP  (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.


AUTH: 80-1-102, 80-18-107, MCA

IMP: 80-18-103, MCA


REASON: To assign responsibility to uncontrolled hemp plants.


            NEW RULE III INSPECTION AND LABORATORY FEES (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. 


AUTH: 80-1-102, 80-18-107, MCA

IMP: 80-18-110, MCA


REASON: To implement costs for services beyond initial testing or inspection. Based on 2020 statistics, an estimated 12 growers will need additional testing and 25 will need additional inspections, resulting in an increase of $250 each.


NEW RULE IV PROCESSING WITH A GROWER'S LICENSE (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.


AUTH: 80-1-102, 80-18-107, MCA

IMP: 80-18-102, 80-18-103, 80-18-111, MCA


REASON: To establish and clarify growers' responsibility to maintain legally compliant hemp.


4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:


4.19.101 DEFINITIONS (1) remains the same.

            (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. the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-nine tetrahydrocannabinol (THC) concentration of no more than 0.3 percent on a dry weight basis.

            (3) through (11) remain the same.


AUTH: 80-18-107, MCA

IMP: 80-18-101, 80-18-102, 80-18-103, 80-18-106, 80-18-107, 80-18-110, 80-18-111, MCA


            4.19.102 APPLICATION FOR MONTANA STATE HEMP PROGRAM LICENSE  (1)  An applicant must:

            (a) remains the same.

            (b)  apply to the department for participation in the program by May 1 30 for outdoor grows; application for greenhouse and indoor grows is open all year unless the department extends the application deadline;

            (c) through (2) remain the same.

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

            (4) remains the same. 


AUTH: 80-18-107, MCA

IMP: 80-18-102, 80-18-103, 80-18-106, MCA


REASON: To extend and clarify application deadlines. 


            4.19.103 MONTANA STATE HEMP PROGRAM  (1) through (1)(b) remain the same.

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

            (d)  apply to the department for participation in the program by May 1 unless the department extends the application deadline. ; 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)  The department may create a hemp seed repository as part of the pilot program. Only pilot program participants can buy from the repository. The varieties in the repository will be determined by the department. Availability of a particular variety or any seed is not guaranteed by the department.

            (3)  All post-harvest commercial use of the hemp must be approved by the department so as to not jeopardize the continued existence of the federal approval of the pilot program.

            (a)  Pre-approved and disapproved uses will be listed on the department web site.

            (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 sale seed for propagation. Hemp grain, sold as a commodity intended for use as an approved food ingredient or oil, may only be sold to persons licensed to purchase, handle, or process hemp grain.


AUTH: 80-18-107, MCA

IMP: 80-18-102, 80-18-103, 80-18-106, MCA


REASON: The changes in ARM 4.19.103 and 4.19.110 ensure that Montana meets federal guidelines.


            4.19.104 PROGRAM FEES (1)  The fee for a Montana State Hemp License is $1,100 450.

            (2)  The planting fee is $400 per Montana State Hemp License plus:

            (a)  an additional $250 for Category C seed varieties.

            (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.


AUTH: 80-1-102, 80-18-107, MCA

IMP: 80-18-102, 80-18-103, 80-18-106, 80-18-110, MCA


REASON: To collect one uniform fee for all growers.  The consolidation of the license fee has no fiscal impact for growers who planted only Category C cultivars. For growers who only planted Category A or B cultivars in 2020, there will be an additional $250 cost to pay for testing of their cultivar. Based on 2020 statistics, approximately 32 growers will see an increase of $250 each.  The department estimates approximately 100 change requests at $50 each and 35 late fees at $100 each.  The department anticipates five research licenses at $500 each.


            4.19.107 HEMP VARIETY (1)  Applicants must inform the department of what varieties planted they are planting 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 variety information from the applicant.

            (3)  The department recognizes will utilize a four-category system, found in ARM 4.19.108, to illustrate the relative risk of hemp cultivars concerning THC levels. determine the amount of testing required and frequency of random sampling.

            (4)  Persons distributing hemp seeds for planting must comply with the Montana Agricultural Seed and Patented Plant Material Act., excluding exemptions listed in 80-5-130 (4), MCA.

            (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) remains the same

            (6)  The department will publish an annual list of approved varieties for planting in the current license season by March 1 each year.


AUTH: 80-18-107, MCA

IMP: 80-18-102, 80-18-103, 80-18-106, 80-5-123, 80-5-125, MCA


            4.19.108 HEMP VARIETY CATEGORIES  (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 varieties 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 varieties 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.

            (a)  Category A CFX-1, CFX-2, CRS-1, Canda, Carmagnola, Carmagnola

Select, Fedora 17, Grandi, Joey, Katani, Picolo.

            (b)  Category B: Altair, Alyssa, Angie, Anka, Armanca, Asso, B 11, Beniko, Bialobrzeskie, C S, CanMa, Cannakomp, Carma, Carmen, Carmaleonte, Chameleon, Codimono, CHA, CHY, Crag, Dacia Secuieni, Debbie, Delores, Delta 405, Deltallosa, Denise, Diana, Dioca 88, Deni, ESTA-1, Eco Aglegra, Eco Nebliss, Eletta Campana, Epsilon 68, Elite, Fasamo, Fedrina 74, Felina 32, Felina 34, Ferimon, Fibrol, Fibranova, Fibrante, Fibriko, Fibrimon 24, Fibrimon 56, Finola, Futura 75, Georgina, GranMa, Glecia, Gliana, Helena, Henola, Hiration, IDA-0103, Ivory, Judy, Jutta, KC Bonusz, KC Dora, KC Virtus, KC Zuzana, Kompolti, Kompolti Hibrid TC, Kompolti Sargaszaru, Laura Secord, Lipko, Lovrin 110, Marcell, Marina, Markant, Martha, Medicine Mother, Monoica, Nadine, Novosadska, Petera, Quida, Rajan, Ratza, Santhica 23, Santhica 27, Santhica 70, Secuieni Jubileu, Silesia, Silistrenski, Silvana, Succesiv, Szarvasi, Tiborszállási, Tisza, Tygra, UC-RGM, USO 14, USO 31, Uniko B, VC Star, Victoria, Villanova, Wojko, X-59 (Hemp Nut), Yvonne, Zenit, Zolotonosha 11, Zolotonosha 15.

(c) Category C: All other hemp varieties that an applicant reasonably believes will not produce a plant with over 0.3 percent THC at any time prior to harvest and is not listed in Category D.

            (d)  Category D: Any varieties forbidden by any federal law or regulation.


AUTH: 80-18-107, MCA

IMP: 80-18-102, 80-18-103, 80-18-106, MCA


REASON: The changes in ARM 4.19.107 and 4.19.108 clarify the department's use of variety categories and seed licensing or labeling regulations.


            4.19.110 HEMP SAMPLING  (1)  The department is authorized to inspect and sample all lots of hemp to determine compliance with this Act. may allow a grower to self-sample if the department believes the grower can successfully follow the protocol and it is in the best interest of the department to have the grower do so.

            (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.


AUTH: 80-18-107, MCA

IMP: 80-18-102, 80-18-103, 80-18-106, MCA


REASON: To clarify the department's exclusive authority to collect and test official hemp samples.


            5. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Cort Jensen, Department of Agriculture, 302 N. Roberts, Helena, Montana, 59601; telephone (406) 444-5402; fax (406) 444-5409; or e-mail agr@mt.gov, and must be received no later than 5:00 p.m., December 4, 2020.


6. Zach Coccoli, Department of Agriculture, has been designated to preside over and conduct this hearing.


7. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in paragraph 5 or may be made by completing a request form at any rules hearing held by the department.


8. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted by email on October 26, 2020.


9. With regard to the requirements of 2-4-111, MCA, the department has determined that the adoption and amendment of the above-referenced rules will not significantly and directly impact small businesses.



/s/ Cort Jensen                                           /s/ Ben Thomas                              

Cort Jensen                                                Ben Thomas

Rule Reviewer                                            Director

                                                                    Department of Agriculture


Certified to the Secretary of State October 27, 2020.

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