CHAPTER 32-6
HEMP PRODUCTION LICENSE: ELIGIBILITY, APPLICATION, AND PROCESS

32-6-1 Requirement.

Any person, entity, or THPE producing or handling or intending to produce or handle hemp must have a valid hemp production license prior to producing or handling hemp within the Nation’s territory. A valid hemp production license means the hemp production license is unexpired, unsuspended, and unrevoked.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-2 Eligibility.

(A)    Individual Person. When the applicant is an individual person, to be eligible to receive a hemp production license the applicant must:

(1)    Be at least eighteen (18) years of age;

(2)    Have the legal right to produce or handle hemp in the registered land area and the legal right to grant access for inspection and sampling;

(3)    Not have materially falsified any information contained in a hemp production license application or otherwise provided materially important false statements or information to the Nation or the Tax Commission or refused to respond to questions related to receipt of a hemp production license from the Tax Commission;

(4)    Not have a currently suspended hemp production license or a hemp production license that was revoked within the past five (5) years;

(5)    Not be applying for a hemp production license as a stand-in for someone whose hemp production license has been suspended, revoked, or is otherwise ineligible to participate;

(6)    Not have deliberately or substantially failed to comply with the terms of any agreement with the Nation related to hemp production or this title and related laws;

(7)    Not have negligently violated this title three (3) times in a five (5) year period within the past five (5) years beginning on the date of the third violation; and

(8)    Not have been convicted of a felony related to a controlled substance under tribal, state, or federal law within the past ten (10) years from the date of the conviction, unless:

(a)    The person was lawfully growing hemp under the 2014 Farm Bill before December 20, 2018, and the conviction also occurred before that date; or

(b)    The person was growing hemp lawfully with a license, registration, or authorization under a pilot program authorized by section 7606 of the Agricultural Act of 2014 (7 U.S.C. §5940) before October 31, 2019.

(B)    Entity. When the applicant is an entity or THPE, to be eligible to receive a hemp production license the applicant must:

(1)    Have an officer or agent with written authorization to commit the entity to a binding agreement who is at least eighteen (18) years of age submit the application;

(2)    Have the legal right to produce or handle hemp in the registered land area and the legal right to grant access for inspection and sampling;

(3)    Not have negligently violated this title three (3) times in a five (5) year period within the past five (5) years beginning on the date of the third violation;

(4)    Not have a currently suspended hemp production license or a hemp production license that was revoked within the past five (5) years;

(5)    Not be applying for a hemp production license as a stand-in for someone whose hemp production license has been suspended, revoked, or is otherwise ineligible to participate;

(6)    All key participants must not:

(a)    Have materially falsified any information contained in a hemp production license application or otherwise provided materially important false statements or information to the Tribe or the Tax Commission or refused to respond to questions related to receipt of a hemp production license from the Tax Commission;

(b)    Have deliberately or substantially failed to comply with the terms of any agreement with the Nation related to hemp production or this title and related laws;

(c)    Have been convicted of a felony related to a controlled substance under tribal, state, or federal law within the past ten (10) years from the date of the conviction, unless:

(i)    The key participant was lawfully growing hemp under the 2014 Farm Bill before December 20, 2018, and the conviction also occurred before that date; or

(ii)    The key participant was growing hemp lawfully with a license, registration, or authorization under a pilot program authorized by section 7606 of the Agricultural Act of 2014 (7 U.S.C. §5940) before October 31, 2019.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-3 Application.

(A)    A separate hemp production application packet is required for each noncontiguous location in which the applicant intends to grow or handle hemp.

(B)    No hemp production application packet shall be for a registered land area that exceeds eighty (80) acres.

(C)    Individual Person. When the applicant is an individual person, the applicant shall submit a hemp production application packet, which includes the application with the application fee to the Tax Commission on such form that the Tax Commission may require, but which must include the following information:

(1)    The applicant’s full name (and other names ever used), title, business address, email address, telephone number, birth date and place of birth, citizenship, gender, driver’s license number, and social security number;

(2)    The applicant must submit to a current criminal history report and payment of associated costs for obtaining the report, if any, from the PBPN Tribal Police Department;

(3)    A description of any previous experience with other hemp production with tribes and with the hemp industry generally, including specifically the name and address of any licensing or regulatory agency with which such person has had a relationship relating to hemp production;

(4)    A legal description of the registered land area, including the street address, the geospatial location, a map, and information sufficient for locating each field, greenhouse, or structure where hemp will be produced or handled;

(5)    Evidence the person has the legal authority to produce or handle hemp in the registered land area and the legal authority to grant access for inspection and sampling;

(6)    A planting date that is at least thirty (30) days after the date the application was submitted to the Tax Commission;

(7)    Any other information or disclosure required to be submitted by this title or any policies, procedures, rules, or regulations issued to implement this title;

(8)    A written and signed statement that the information contained in the application is true and correct to the best of applicant’s knowledge;

(9)    A written agreement to comply with the hemp production license, this title, and any policies, procedures, rules, or regulations issued to implement this title; and

(10)    Acknowledgment that failure to comply with the terms of the hemp production license, this title, or any policies, procedures, rules, or regulations issued to implement this title may result in a corrective action plan and loss of the hemp production license.

(D)    Entity. When the applicant is an entity, the applicant shall submit a hemp production application packet, which includes the application with the application fee to the Tax Commission on such form that the Tax Commission may require, but which must include the following information:

(1)    The full name of the entity, principal business location address, email address (if available), and employer identification number (EIN) of the entity (if available);

(2)    All key participants’ full name (and other names ever used), title, business address, email address, telephone number, birth date and place of birth, citizenship, gender, driver’s license number, social security number, and evidence of tribal membership (if any);

(3)    All key participants must submit to a current criminal history report and payment of associated costs for obtaining the report, if any, from the PBPN Tribal Police Department;

(4)    A description of all key participants’ previous experience with other hemp production with tribes and with the hemp industry generally, including specifically the name and address of any licensing or regulatory agency with which such key participant has had a relationship relating to hemp production;

(5)    A legal description of the registered land area, including the street address, the geospatial location, a map, and information sufficient for locating each field, greenhouse, or structure where hemp will be produced or handled;

(6)    Evidence the entity has the legal right to produce or handle hemp in the registered land area and the legal right to grant access for inspection and sampling;

(7)    A planting date that is at least thirty (30) days after the date the application was submitted to the Tax Commission;

(8)    Any other information or disclosure required to be submitted by this title and any policies, procedures, rules, or regulations issued to implement this title;

(9)    A written and signed statement by the officer or agent submitting the application that the information contained in the application is true and correct to the best of applicant’s knowledge;

(10)    A written agreement by the officer or agent submitting the application to comply with the hemp production license, this title, and any policies, procedures, rules, or regulations issued to implement this title; and

(11)    Acknowledgment by the officer or agent submitting the application that failure to comply with the terms of the hemp production license, this title, or any policies, procedures, rules, or regulations issued to implement this title, may result in a corrective action plan and loss of the hemp production license.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-4 License.

(A)    The Tax Commission shall not issue a hemp production license unless:

(1)    The application is complete and accurate; and

(2)    The applicant meets all eligibility criteria.

(B)    If the Tax Commission approves the application, the Tax Commission shall issue a hemp production license as well as a corresponding hemp production license identifier in a format prescribed by the USDA.

(C)    Individuals and entities must have a Tax Commission-issued hemp production license prior to producing or handling hemp.

(D)    Hemp production licenses may not be sold, assigned, transferred, pledged, or otherwise alienated or encumbered.

(E)    All licensees shall comply with tribal law.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-5 Application Fees.

(A)    The Tax Commission shall collect hemp production license application fees and application renewal fees that are reasonable and necessary to cover the costs of administering and enforcing this title. The Tax Commission shall establish a fee schedule, subject to Tribal Council approval.

(B)    Applicant shall be responsible for all costs of obtaining or collecting information necessary to complete the hemp production application packet and license renewals, including, but not limited to, the legal land description, geospatial location information, and criminal history report.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-6 Term.

(A)    All hemp production licenses shall be effective for a period of five (5) years from the date of issuance.

(B)    Renewal. Within at least ninety (90) days prior to the expiration of the producer’s current hemp production license, the producer shall apply to the Tax Commission to renew his license.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-7 Modification.

A hemp production license modification is required if there is any change to the information submitted in the application including, but not limited to, the production or handling of hemp in a new registered land area or a change in the key participants producing or handling hemp under the hemp production license.

(A)    Licensees must report any changes of their contact information to the Tax Commission in writing within fourteen (14) calendar days of the change.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-8 License Suspension or Revocation of License.

(A)    The Tax Commission may suspend or revoke a hemp production license if the producer:

(1)    No longer meets the eligibility criteria for the hemp production license; or

(2)    Otherwise violates the terms of the hemp production license, this title, or any policies, procedures, rules, or regulations issued to implement this title.

(B)    The Tax Commission shall revoke a hemp production license if the producer:

(1)    Negligently violates this title three (3) times in five (5) years, pursuant to Chapter 32-11;

(2)    Is found to be growing cannabis exceeding the acceptable hemp THC level with a culpable mental state greater than negligence;

(3)    Is convicted of or has a key participant who is convicted of any felony related to a controlled substance; or

(4)    Is found to or has a key participant who is found to have made any materially false statement with regard to this title to the Tax Commission or its representatives with a culpable mental state greater than negligence.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)

32-6-9 Appeals: License Denial, Suspension or Revocation.

(A)    If the Tax Commission denies an applicant a hemp production license or suspends or revokes a producer’s hemp production license, the applicant or producer can file a request for reconsideration to the Tax Commission within ten (10) days of the Commission’s decision to deny, revoke, or suspend the hemp production license.

(B)    If, after reconsideration, the Tax Commission upholds its decision to deny, revoke, or suspend the hemp production license, the Tax Commission shall issue an order to the applicant or producer by certified mail, return receipt requested, within fourteen (14) days after its decision. The order shall set forth the reasons for the Tax Commission’s decision and shall state that the applicant or producer has thirty (30) days from receipt of the order to file a notice of appeal with the Prairie Band Potawatomi Nation Tribal District Court.

(Enacted by PBP TC No. 2020-141, May 6, 2020; amended by PBP TC No. 2021-291, July 28, 2021)