There are some costs of compliance associated with program participation such as sampling, testing, and recordkeeping. However, because hemp is regulated at the federal level, these costs are unavoidable in order to allow Wisconsinites the opportunity to participate in hemp activities. By continuing to operate the Hemp Program pursuant to the 2014 Farm Bill, instead of transitioning to the 2018 Farm Bill, this rule allows participation while reducing required costs of compliance to the greatest extent possible.
Reporting, Bookkeeping and other Procedures
This rule will impact persons who wish to grow and process hemp as part of the Hemp Program. Participation in the program is voluntary, although anyone wishing to grow or process hemp must participate, unless the person is operating under a USDA-approved tribal hemp plan. This rule will impose fees, recordkeeping, and reporting requirements. Participants must pay an initial license fee and an annual registration fee each year the licensee plans to operate. However, licensed processors do not pay an annual registration fee in the annual registration year in which they first obtain a processor license. This rule will require participants to prepare a research plan and submit a research agreement. All hemp must meet defined analytical standards before the Department will issue a fit for commerce certificate and the hemp can be transported from the growing location. This rule provides criteria for participants to obtain and maintain a license. The rule explains the criteria for suspending, revoking, or denying licensure.
A hemp grower who successfully plants, grows, and plans to harvest hemp must have the hemp sampled by the Department before the hemp can be harvested. A fit for commerce certificate must accompany hemp that is transporated from the growing location. The fit for commerce certificate is the documentation required by law that verifies that the hemp it accompanies is legally hemp. Sampling and testing must be completed before a fit for commerce certificate can be issued. A fit for commerce certificate will be issued for each lot that tests at or below 0.3 percent THC. A lot is a contiguous area of one variety or strain of hemp growing indoors or outdoors. A grower may have more than one lot and each lot must be sampled separately. The fee for sampling and testing of one lot is $250 per sample.
Professional Skills Required
The proposed rule does not impose regulations that will require professional skills for small businesses.
Accommodation for Small Business
Many of the license applicants may be small businesses. This rule does not make special exceptions for small businesses.
Conclusion
This rule will have no adverse effect on businesses, including small businesses. Therefore, this emergency rule is not subject to the delayed small business effective date provided in s. 227.22 (2) (e), Stats. Dated this 16th day of October, 2020.
STATE OF WISCONSIN
DEPARTMENT OF AGRICULTURE,
TRADE AND CONSUMER PROTECTION
By __________________________________
Sara Walling, Administrator
Division of Agricultural Resource Management
