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Administrative Rules

ARTICLE 12:82

INDUSTRIAL HEMP

Chapter

12:82:01        Definitions.

12:82:02        Application and licensure.

12:82:03        Records.

12:82:04        Enforcement.

12:82:05        Handling requirements.

12:82:06        Inspections.

12:82:07        Samples and testing.

12:82:08        Remediation and disposal.

12:82:09        Transportation, Repealed.




CHAPTER 12:82:01

 

DEFINITIONS

 

 

Section

12:82:01:01        Definitions.

 

 




    12:82:01:01.  Definitions. Terms defined in SDCL 38-35-1 shall have the same meaning in this article. In addition, terms used in this article mean:

    (1)  “Acceptable hemp THC level,” when the application of the measurement of uncertainty to the reported total delta-9 tetrahydrocannibinol content concentration level on a dry weight basis produces a distribution or range that includes 0.3% or less;

    (2)  “Certificate of analysis,” a report that is prepared by a certified laboratory and contains the laboratory’s analytical testing and the testing results;

    (3)  “Residential dwelling,” any building or structure, including single family or multi-family homes, used and occupied for human habitation; and

    (4)  “THC byproduct,” processed industrial hemp with a total delta-9-tetrahydrocannabinol greater than the acceptable hemp THC level that has not entered the stream of commerce.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11.

    Law Implemented: SDCL 38-35-1, 38-35-11.




CHAPTER 12:82:02

APPLICATION AND LICENSURE

Section

12:82:02:01        Applications.

12:82:02:02        Grower application requirements.

12:82:02:03        Grower application submission period, Repealed.

12:82:02:04        Grower license application fee.

12:82:02:05        Grower license approval -- Grower license fee -- License number -- License non-transferable.

12:82:02:06        Grower license fee, Repealed.

12:82:02:07        Grower license amendment.

12:82:02:08        Grower license -- Renewal.

12:82:02:09        Processor application requirements.

12:82:02:10        Processor license application fee.

12:82:02:11        Processor license approval -- Processor license fee -- License number -- License non-transferable.

12:82:02:12        Processor license fee, Repealed.

12:82:02:13        Processor license amendment, Repealed.

12:82:02:14        Processor license -- Renewal.

12:82:02:15        Research application requirements.

12:82:02:16        Research license application fee.

12:82:02:17        Research license approval -- Research license fee -- License number -- License nontransferable.

12:82:02:18        Research license amendment.

12:82:02:19        Research license -- Renewal.




    12:82:02:01.  Applications. Except as provided in this section, any person or legal business entity in South Dakota shall obtain an industrial hemp license from the department to purchase, receive, or obtain industrial hemp for planting, storing, propagating, producing, or processing. An industrial hemp license is not required:

    (1)  For the possession or distribution of hemp seed;

    (2)  To obtain industrial hemp product;

    (3)  For employees of this state when performing official duties; or

    (4)  For laboratories testing industrial hemp seed to determine label information, in accordance with SDCL 38-12A-9.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-2, 38-12A-9.

    Example: The term "industrial hemp" includes seedlings and clones.




    12:82:02:02.  Grower application requirements. A grower license application must contain:

    (1)  The applicant's name, mailing address, physical address, telephone number, and email address if available;

    (2)  A legal description and latitude and longitude coordinates of each area where industrial hemp will be grown, stored, or handled;

    (3)  If the applicant is a business entity, the full name of the business and physical address of the principal business location, the full names and titles of the business entity's key participants who have authority to act on behalf of the business entity, the email address of the business entity if available, and the business entity's taxpayer identification number;

    (4)  An authorization allowing the department to access state and federal background checks conducted by the Division of Criminal Investigation and the Federal Bureau of Investigation on the applicant, key participants, and landowner; and

    (5)  An attestation that no growing, handling, or storing location is within a "Territory of the Indian Tribe," as defined by 7 C.F.R. § 990 (March 22, 2021).

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-3.




    12:82:02:03.  Grower application submission period. Repealed.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.




Rule 12:82:02:04 Grower license application fee.

          12:82:02:04.  Grower license application fee. An applicant shall submit at the time of application a nonrefundable grower license application fee in the amount of fifty dollars.

 

          Source: 47 SDR 75, effective December 28, 2020.

          General Authority: SDCL 38-35-11(1)(5).

          Law Implemented: SDCL 38-35-3.

 




    12:82:02:05.  Grower license approval -- Grower license fee -- License number -- License non-transferable. The department shall notify a grower license applicant when the application has been approved or denied. Upon notification of approval, the applicant must remit to the department a license fee in the amount of five hundred dollars. Upon approval and receipt of the grower license fee, the department shall assign the licensee a grower license number and the license will be sent to the licensee.

    The grower license number may not be duplicated or reassigned to any other licensee by the department. Licensee will retain the same grower number for all subsequent licenses. Licenses are non-transferable.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1)(5).

    Law Implemented: SDCL 38-35-7.




    12:82:02:06.  Grower license fee. Repealed.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.




Rule 12:82:02:07 Grower license amendment.

          12:82:02:07.  Grower license amendment. Any change to the required information on an approved grower license requires a licensee to submit a license amendment on a form prescribed by the secretary, within ten business days of the change.

 

          Source: 47 SDR 75, effective December 28, 2020.

          General Authority: SDCL 38-35-11(1).

          Law Implemented: SDCL 38-35-3, 38-35-7.

 




    12:82:02:08.  Grower license -- Renewal. A grower licensee who seeks to renew a license shall submit an application for a license renewal at least thirty days prior to the expiration of the current license.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-3, 38-35-7.




    12:82:02:09.  Processor application requirements. An applicant for a processor license shall apply to the secretary on a form prescribed by the secretary. An industrial hemp processor application must contain:

    (1)  The applicant's name, physical address, telephone number, and email address if available;

    (2)  The physical address of each processing location or the headquarters of mobile processing;

    (3)  The legal description and latitude and longitude coordinates for each location at which hemp will be processed or stored;

    (4)  If the applicant is a business entity, the full name of the business, the physical and mailing address of the principal business location, the full names and titles of the business entity's key participants who have authority to act on behalf of the business entity;

    (5)  The email address if available, and the taxpayer identification number of the business entity;

    (6)  An authorization allowing the department to access state and federal background checks conducted by the Division of Criminal Investigation and the Federal Bureau of Investigation on the applicant and key participants;

    (7)  If the applicant is a business entity, a certificate of good standing provided by the secretary of state; and

    (8)  An attestation that no processing location is within a “Territory of the Indian Tribe,” as defined by 7 C.F.R. § 990 (March 22, 2021).

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-4.




Rule 12:82:02:10 Processor license application fee.

          12:82:02:10.  Processor license application fee. An applicant for a processor license shall submit at the time of application a nonrefundable processor application fee in the amount of fifty dollars.

 

          Source: 47 SDR 75, effective December 28, 2020.

          General Authority: SDCL 38-35-11(1)(5).

          Law Implemented: SDCL 38-35-4.

 




    12:82:02:11.  Processor license approval -- Processor license fee -- License number -- License non-transferable. The department shall notify a processor license applicant when the application has been approved or denied. Upon notification of approval, the applicant shall remit to the department a license fee in the amount of two thousand dollars. Upon approval and receipt of the processor license fee, the department shall assign the licensee a processor license number and the processor license will be sent to the licensee.

    The processor license number may not be duplicated or reassigned to any other licensee by the department. A licensee shall retain the same processor number for all subsequent licenses. Licenses are non-transferable.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-7.




    12:82:02:12.  Processor license fee. Repealed.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.




    12:82:02:13.  Processor license amendment. Repealed.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.




    12:82:02:14.  Processor license expiration -- Renewal. A processor licensee who seeks to renew the license shall submit an application for a license renewal at least thirty days prior to the expiration of the current license.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-4, 38-35-7.




    12:82:02:15.  Research application requirements. An industrial hemp research application must contain:

    (1)  The applicant’s name, physical address, telephone number, and email address if available;

    (2)  The physical address of each research location;

    (3)  The legal description and latitude and longitude coordinates for each location at which hemp will be grown, processed, stored, or handled;

    (4)  If the applicant is a business entity, the full name of the business, the physical and mailing address of the principal business location, and the full names and titles of the business entity’s key participants who have authority to act on behalf of the business entity;

    (5)  The email address if available of each key participant and the taxpayer identification number of the business entity;

    (6)  An authorization allowing the department to access state and federal background checks conducted by the Division of Criminal Investigation and the Federal Bureau of Investigation on the applicant and key participants;

    (7)  If the applicant is a business entity, a certificate of good standing provided by the secretary of state; and

    (8)  An attestation that no research location is within a “Territory of the Indian Tribe,” as defined by 7 C.F.R. § 990 (March 22, 2021).

    Source: 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-25-3.1.




    12:82:02:16.  Research license application fee. An applicant for an industrial hemp research license shall submit, at the time of application, a nonrefundable research application fee in the amount of fifty dollars.

    Source: 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1)(5).

    Law Implemented: SDCL 38-35-3.1.




    12:82:02:17.  Research license approval -- Research license fee -- License number -- License non-transferable. The department shall notify a research license applicant when the application has been approved or denied. Upon notification of approval, the applicant shall remit to the department a license fee in the amount of one hundred dollars. Upon approval and receipt of the research license fee, the department shall assign the licensee a research license number, and the research license will be issued to the licensee.

    The research license number may not be duplicated or reassigned to any other licensee by the department. A licensee will retain the same research number for all subsequent licenses. Licenses are non-transferable.

    Source: 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1)(5).

    Law Implemented: SDCL 38-35-7.




    12:82:02:18.  Research license amendment. Any change to the required information on an approved research application requires a licensee to submit a license amendment on a form prescribed by the secretary, within ten calendar days of the change.

    Source: 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-3.1, 38-35-7.




    12:82:02:19.  Research license -- Renewal. A research licensee who seeks to renew a license shall submit an application for a research license renewal at least thirty days prior to the expiration of the current license.

    Source: 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-3.1, 38-35-7.




CHAPTER 12:82:03

RECORDS

Section

12:82:03:01        Grower records.

12:82:03:02        Submission of planting and harvest data to United States Department of Agriculture Farm Service Agency.

12:82:03:03        Processor records.

12:82:03:04        Research records.




    12:82:03:01.  Grower records. Grower records must be maintained on site and available for examination by the department and the Department of Public Safety during normal business hours. Grower licensees shall maintain the following records for three years:

    (1)  The license number and the United States Department of Agriculture Farm Service Agency authorization number;

    (2)  Physical address of the licensee or the licensee's principal business location;

    (3)  Latitude and longitude coordinates of each lot where industrial hemp will be produced or stored;

    (4)  Licensed industrial hemp crop acreage, and square footage if grown indoors;

    (5)  Total acreage, or square footage if grown indoors, of industrial hemp planted, harvested, remediated, and disposed;

    (6)  All processors sold to and quantities sold to each processor;

    (7)  Variety for each lot;

    (8)  Notifications of total delta-9 tetrahydrocannabinol (THC) test results for each lot;

    (9)  Documents regarding the disposal of non-compliant industrial hemp produced in violation of the United States Department of Agriculture guidelines;

    (10)  Documents regarding the disposal of industrial hemp for any reason other than produced in violation of the United States Department of Agriculture guidelines;

    (11)  Documents submitted to the department, the Department of Public Safety, law enforcement officers, and to the United States Department of Agriculture Farm Service Agency related to industrial hemp; and

    (12)  Verification of any information submitted to the department, the Department of Public Safety, law enforcement officers, and the United States Department of Agriculture Farm Service Agency, related to industrial hemp.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(6).

    Law Implemented: SDCL 38-35-9.




    12:82:03:02.  Submission of planting and harvest data to United States Department of Agriculture Farm Service Agency. Grower and research licensees shall provide their industrial hemp license number and certify industrial hemp acreage, or square footage if grown indoors, planted for all growing locations to their local office of the United States Department of Agriculture Farm Service Agency.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(6).

    Law Implemented: SDCL 38-35-18.




    12:82:03:03.  Processor records. All processor records must be maintained on site and available for examination by the department and the Department of Public Safety, during normal business hours. A processor licensee shall maintain the following records for three years:

    (1)  Industrial hemp crop acquisitions, including a certificate of analysis, grower name, grower address, copy of grower license number, quantity purchased, and transaction date;

    (2)  Records of all unprocessed or processed industrial hemp purchased from another processor, including a certificate of analysis, processor name, processor address, processor registration or license number, quantity purchased, and transaction date;

    (3)  Records of all unprocessed or processed industrial hemp sold to another processor, including a certificate of analysis, processor name, processor address, processor registration or license number, quantity sold, and transaction date;

    (4)  THC byproduct secure storage and disposal records;

    (5)  Certificate of Analysis of product in process prior to transport; and

    (6)  Processor license information, including physical address and latitude and longitude coordinates of where industrial hemp will be processed.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(1).

    Law Implemented: SDCL 38-35-9.




    12:82:03:04.  Research records. Research records must be maintained onsite and available for examination by the department and the Department of Public Safety during normal business hours. A research licensee shall maintain the following for three years:

    (1)  All license information and the United States Department of Agriculture Farm Service Agency authorization number, if applicable;

    (2)  Physical address of the licensee or the licensee’s principal business location;

    (3)  Latitude and longitude coordinates of each lot where industrial hemp will be produced, stored, handled, and processed;

    (4)  Total acreage, or square footage if grown indoors, of industrial hemp planted and disposed;

    (5)  Variety for each lot;

    (6)  Total delta-9 tetrahydrocannabinol test results for each lot;

    (7)  Documents regarding the disposal of industrial hemp produced;

    (8)  Industrial hemp crop acquisitions, including certificate of analysis, grower name, grower address, grower license number, quantity purchased, and transaction date;

    (9)  Records of all unprocessed or processed industrial hemp purchased from another processor, including certificate of analysis, processor name, processor address, processor registration or license, quantity purchased, and transaction date;

    (10) All reports submitted to the department, the Department of Public Safety, law enforcement officers, and to the United States Department of Agriculture Farm Service Agency, related to industrial hemp; and

    (11)  Verification of any information submitted to the department, the Department of Public Safety, law enforcement officers, and the United States Department of Agriculture Farm Service Agency related to industrial hemp.

    Source: 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(6).

    Law Implemented: SDCL 38-35-3.1, 38-35-9.




CHAPTER 12:82:04

 

ENFORCEMENT

 

 

Section

12:82:04:01        Negligent violation.

12:82:04:02        Corrective actions.

12:82:04:03        Non-negligent violations.

 

 




    12:82:04:01.  Negligent violation. Upon the department's determination that a negligent violation related to the growing or processing of industrial hemp has occurred, the department will institute a corrective action plan. Negligent violations include:

    (1)  A failure to provide an accurate legal description of land on which industrial hemp is produced;

    (2)  A failure to obtain a license for inadvertent or unknown growth of industrial hemp;

    (3)  The production of cannabis with total THC exceeding 1% on a dry weight basis; and

    (4)  The growing of industrial hemp outside of a licensed planting site.

    A licensee may not be subject to any criminal enforcement action as a result of a negligent violation. Three negligent violations in a five-year period shall result in a grower being ineligible to produce industrial hemp for a period of five years from the date of the last violation. The department may not charge the grower or research licensee with more than one negligent violation in a calendar year.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(3)(7).

    Law Implemented: SDCL 38-35-2, 38-35-9, 38-35-11.




    12:82:04:02.  Corrective actions. A corrective action plan established by the department to correct negligent violations may include:

    (1)  A reasonable date to correct the negligent violation; and

    (2)  A requirement to periodically report to the department regarding compliance with the corrective action plan for a period of not less than two consecutive calendar years.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(7).

    Law Implemented: SDCL 38-35-9, 38-35-11.




    12:82:04:03.  Non-negligent violations. The department shall immediately report violations with a culpable mental state greater than negligence as determined by the department, including knowingly growing industrial hemp containing a total delta-9-THC concentration that exceeds one percent on a dry weight basis or a tolerance range, to the United States Attorney General and the South Dakota Attorney General.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(3)(7).

    Law Implemented: SDCL 38-35-7, 38-35-9, 38-35-11.




CHAPTER 12:82:05

 

HANDLING REQUIREMENTS

 

 

Section

12:82:05:01        Transportation.

12:82:05:02        Equipment.

 

 




    12:82:05:01.  Transportation. All industrial hemp seed must be covered during transport, to avoid the inadvertent dissemination of industrial hemp.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(2).

    Law Implemented: SDCL 38-35-11.




    12:82:05:02.  Equipment. All equipment used to sow or harvest industrial hemp must be thoroughly cleaned before it leaves a licensed area, to avoid the inadvertent dissemination of industrial hemp.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(2).

    Law Implemented: SDCL 38-35-11.




CHAPTER 12:82:06

INSPECTIONS

Section

12:82:06:01        Inspection requirements.

12:82:06:02        Planting verification inspection -- Non-conforming lots.

12:82:06:03        Grower pre-harvest inspection.

12:82:06:04        Disposal inspection.

12:82:06:05        Grower pre-harvest inspection procedures.

12:82:06:06        Grower inspection fee.

12:82:06:07        Processor inspection procedures.

12:82:06:08        Processor inspection fee.




    12:82:06:01.  Inspection requirements. The department and the Department of Public Safety shall have complete and unrestricted access during business hours and may enter on any land or other property where industrial hemp is planted, stored, propagated, produced, or processed, for the purpose of inspections, sample collections, testing, or investigation. The Department of Public Safety shall report all inspection data to the department.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(9).

    Law Implemented: SDCL 38-35-9.




    12:82:06:02.  Planting verification inspection -- Non-conforming lots. Within thirty days of planting, each grower licensee shall file with the department documentation to identify the type and variety of each industrial hemp seed, seedling, or clone planted with its corresponding lot. Upon receipt of this documentation, a planting verification inspection may be scheduled by the department. This inspection will verify the latitude and longitude coordinates of the lots and legal description, address, United States Department of Agriculture Farm Service Agency farm, tract, and field numbers, and acreage or square footage planted. The grower licensee or a key participant shall be present at the inspection. Any growing sites that do not conform to the license must be destroyed, or the license must be amended.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(9).

    Law Implemented: SDCL 38-35-8, 38-35-9.




    12:82:06:03.  Grower pre-harvest inspection. The department or the Department of Public Safety may conduct inspections and collect samples of each lot, not more than thirty days before the hemp is harvested. The industrial hemp may only be harvested after the sample is collected, unless the department provides written permission. No grower may commingle a harvested lot of industrial hemp with another harvested lot of industrial hemp or other material, except with documented, prior written permission from the department. No industrial hemp may leave the dominion of control of the grower licensee until the licensee receives a laboratory result from the department confirming that the sample representative of the lot meets the acceptable THC level. The grower licensee or a key participant shall be present at the inspection.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(9).

    Law Implemented: SDCL 38-35-10.




    12:82:06:04.  Disposal inspection. The department or the Department of Public Safety may conduct disposal verification inspections to verify that the lot is disposed of in a manner that renders the lot non-retrievable, non-ingestible, and unfit to enter the stream of commerce. The grower licensee or a key participant must be present at the inspection. A disposal inspection is not required for the disposal of industrial hemp lots damaged or destroyed due to pests, insects, weeds, disease, or poor stand, or destroyed by a natural disaster or the weather.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(9).

    Law Implemented: SDCL 38-35-9.

    Example: Weather events that do not require a disposal inspection include, but are not limited to, flood, wind, and hail.




    12:82:06:05.  Grower pre-harvest inspection procedures. A grower licensee shall contact the department at least ten days prior to harvest in order to schedule an inspection. If the grower licensee or a key participant is not present at the scheduled inspection, a second request for inspection must be made to the department. Failure to harvest the crop within thirty days after the lot was sampled requires a resampling for total THC concentration or the issuance of an order of destruction by the department.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(4)(9).

    Law Implemented: SDCL 38-35-10.




    12:82:06:06.  Grower inspection fee. The licensee shall pay to the department a grower inspection fee in the amount of two hundred and fifty dollars per lot for the purpose of a grower pre-harvest inspection and sample collection.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(9).

    Law Implemented: SDCL 38-35-9.




    12:82:06:07.  Processor inspection. The department shall inspect every processor location annually. The processor licensee or a key participant shall be present at the scheduled inspection.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(9).

    Law Implemented: SDCL 38-35-9, 38-35-10.




    12:82:06:08.  Processor inspection fee. The licensee shall pay to the department a processor inspection fee in the amount of five hundred dollars per location.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(9).

    Law Implemented: SDCL 38-35-9.




CHAPTER 12:82:07

SAMPLES AND TESTING

Section

12:82:07:01        Samples.

12:82:07:02        Sample Protocols.

12:82:07:03        Testing.

12:82:07:04        Laboratory results.

12:82:07:05        Retesting.




    12:82:07:01.  Samples. Samples must represent a homogenous composition of the lot, to ensure at a confidence level of ninety-five percent that no more than one percent of the plants in the lot exceed the acceptable hemp THC level.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(10).

    Law Implemented: SDCL 38-35-9, 38-35-10, 38-35-14, 38-35-16, 38-35-22.




    12:82:07:02.  Sample protocols. Each sample must be sealed in a collection bag and identified by: inspector, grower licensee name, grower license number, date, and farm, tract, and field numbers as provided by the United States Department of Agriculture Farm Service Agency.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(10).

    Law Implemented: SDCL 38-35-9, 38-35-10, 38-35-14, 38-35-16, 38-35-22.




    12:82:07:03.  Testing. The laboratory shall determine the Delta-9-Tetrahydrocannabinol (Δ9 -THC) and Delta-9- Tetrahydrocannabinolic Acid (Δ9 -THCA) concentration in industrial hemp sample by using liquid chromatography-electrospray mass spectrometry. The laboratory must report the total Delta-9-Tetrahydrocannabinol content concentration level on a dry weight basis and the measurement of uncertainty.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(10), 38-35-12(2).

    Law Implemented: SDCL 38-35-14.




    12:82:07:04.  Laboratory results. Laboratory results must be provided to the department and electronically provided to the United States Department of Agriculture. The department shall provide individual test results to licensees. Industrial hemp may not be processed or enter the stream of commerce until the grower licensee is notified that the industrial hemp lot sampled and tested is compliant with an acceptable hemp THC level.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(10).

    Law Implemented: SDCL 38-35-9, 38-35-14.




    12:82:07:05.  Retesting. The grower licensee may request a retest within two business days after the licensee receives the initial test results if the sample test result is above the acceptable hemp THC level. If the grower licensee chooses to remediate a noncompliant lot, the licensee must request a retest of the remediated lot to determine compliance with the acceptable hemp THC level, at the expense of the licensee.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(10).

    Law Implemented: SDCL 38-35-14.




CHAPTER 12:82:08

REMEDIATION AND DISPOSAL

Section

12:82:08:01        Disposal or remediation of non-compliant hemp.

12:82:08:02        Destruction or remediation plan.




    12:82:08:01.  Disposal or remediation of non-compliant hemp. Disposal or remediation is required for any non-compliant industrial hemp lot. The acceptable THC level for the purpose of compliance is when the application of the measurement of uncertainty to the reported THC content concentration level on a dry weight basis produces a distribution or range of 0.3% or less. If a grower licensee chooses to remediate a non-compliant lot, the licensee must schedule an additional sampling inspection with the department to retest the remediated lot. If a remediated lot does not meet the acceptable hemp THC level, it is non-compliant and must be destroyed using the disposal methods described in 7 C.F.R. § 990 (March 22, 2021). If a grower licensee determines that all or a portion of the licensee's industrial hemp crop is unfit for commerce due to pests, insects, weeds, disease, or poor stand, or industrial hemp lots destroyed by a natural disaster or weather event, the damaged industrial hemp must be disposed of using methods described by 7 C.F.R. § 990 (March 22, 2021).

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(7).

    Law Implemented: SDCL 38-35-9, 38-35-14.

    Example: Weather events include, but are not limited to, flood, wind, and hail.




    12:82:08:02.  Destruction or remediation plan. A licensee shall submit a destruction or remediation plan to the department for approval within five business days of the receipt of a notice of non-compliance. The disposal method must chemically or mechanically render industrial hemp non-retrievable, non-ingestible, and unfit to enter the stream of commerce. The department or the Department of Public Safety shall verify that remediation or destruction and disposal of the non-compliant hemp has occurred, in accordance with the approved plan. The licensee shall pay to the department a remediation fee in the amount of one hundred dollars per hour for the verification of the remediation.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

    General Authority: SDCL 38-35-11(7)(9).

    Law Implemented: SDCL 38-35-9, 38-35-14.




CHAPTER 12:82:09

TRANSPORTATION

(Repealed)

Section

12:82:09:01        Industrial hemp grower transportation permit -- Fee, Repealed.

12:82:09:02        Industrial hemp general transportation permit -- Fee, Repealed.




    12:82:09:01.  Industrial hemp grower transportation permit -- Fee. Repealed.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.




    12:82:09:02.  Industrial hemp general transportation permit -- Fee. Repealed.

    Source: 47 SDR 75, effective December 28, 2020; 49 SDR 47, effective November 22, 2022.

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