Oregon Administrative Rules Chapter 648 - DEPARTMENT OF AGRICULTURE, OREGON HEMP COMMISSION

Oregon Administrative Rules Chapter 648

Department of Agriculture, Oregon Hemp Commission

Overview

The Oregon Hemp Commission (OHC) operates under the Oregon Department of Agriculture (ODA) and is responsible for regulating the production, processing, and sale of hemp in Oregon. OAR Chapter 648 lays out the detailed administrative rules implementing the Oregon Industrial Hemp Program, ensuring that hemp cultivation complies with state and federal laws.

The OHC’s primary goals include:

Supporting a sustainable hemp industry.

Ensuring compliance with the Agricultural Hemp Program Act (ORS Chapter 571).

Protecting public health and safety.

Preventing illegal cannabis production under the guise of hemp.

Key Provisions of OAR Chapter 648

The rules in Chapter 648 cover all aspects of hemp regulation, including licensing, testing, compliance, and enforcement.

1. Licensing and Registration

Defines who must be licensed to grow, process, or sell hemp.

Sets application requirements, fees, and renewal procedures.

Requires applicants to provide detailed information about their operations.

2. Cultivation Standards

Specifies acceptable planting practices, including seed certification.

Outlines recordkeeping and reporting obligations for growers.

Sets standards for field inspections and sampling protocols.

3. Testing and THC Limits

Establishes the acceptable level of tetrahydrocannabinol (THC), the psychoactive component.

Requires regular testing of hemp crops to ensure THC does not exceed 0.3% on a dry weight basis, in line with federal standards.

Provides procedures for retesting and destruction of non-compliant crops.

4. Processing and Handling

Regulates the processing of hemp into extracts, oils, and other products.

Requires licenses for processors and handlers.

Addresses labeling, packaging, and quality control to ensure consumer safety.

5. Enforcement and Penalties

Sets procedures for investigation of violations.

Outlines penalties including fines, license suspension, and crop destruction.

Provides for hearings and appeals related to enforcement actions.

6. Reporting and Transparency

Requires the Hemp Commission to publish reports on the industry’s status.

Mandates communication and coordination with federal agencies such as the USDA and DEA.

Legal Framework

The OHC operates under the Oregon Industrial Hemp Program Act (ORS Chapter 571), which aligns with the federal Agricultural Improvement Act of 2018 (Farm Bill). Oregon’s rules must comply with federal hemp regulations, especially regarding THC limits.

Relevant Case Law and Legal Principles

Since hemp regulation is relatively new and rapidly evolving, there is limited specific Oregon case law on OAR Chapter 648. However, several legal principles from related administrative and agricultural law cases apply:

1. Agency Authority and Rulemaking

In Rubenstein v. State Board of Accountancy, 319 Or 508 (1994), the Oregon Supreme Court recognized that agencies have broad authority to implement statutes through rulemaking, but those rules must be consistent with legislative intent.

Application:
The Hemp Commission’s rules in OAR 648 must follow ORS 571 and federal law, regulating hemp without overstepping its statutory bounds.

2. Due Process in Enforcement

Palmer v. State Board of Parole, 310 Or 41 (1990), held that administrative agencies must provide fair notice and an opportunity to be heard before imposing penalties.

Relevance:
Growers or processors subject to penalties or crop destruction under OAR 648 are entitled to procedural fairness, including hearings and appeals.

3. Preemption by Federal Law

Federal law often preempts state law in areas like controlled substances. However, with the 2018 Farm Bill legalizing hemp (THC ≤ 0.3%), states like Oregon have regulatory authority under federal guidelines.

Cases such as Gonzales v. Raich, 545 U.S. 1 (2005) (though federal) highlight that federal law can override state law on controlled substances.

Implication:
Oregon’s hemp rules must balance state interests with federal compliance, particularly in THC thresholds and enforcement.

4. Agricultural Inspection and Enforcement

In State ex rel. Department of Agriculture v. Capital Packing Co., 219 Or 347 (1959), the court upheld the state’s authority to regulate agricultural products to protect consumers and producers.

Application:
The Hemp Commission’s inspection, testing, and enforcement powers under OAR 648 are supported by the state’s interest in safeguarding agriculture and public health.

Summary

OAR Chapter 648 sets detailed rules for Oregon’s hemp industry through the Oregon Hemp Commission.

It covers licensing, cultivation standards, THC testing, processing, enforcement, and reporting.

Rules implement state and federal laws ensuring legal hemp production and consumer safety.

Oregon courts defer to agency rulemaking authority but require consistency with statutes and fair enforcement procedures.

State rules must align with evolving federal hemp regulations and balance state oversight with federal preemption.

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