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Guidelines for Industrial Hemp

Licence ApplicantsIntroduction

This guideline is provided to assist persons applying for a licence under the South Australian Industrial Hemp Act 2017. While every attempt has been made to explain the scope of the information that needs to be provided with the application, it remains the applicant’s responsibility to ensure they understand the requirements of the Act, and that the information provided is not false, misleading or incomplete.

Background The following legislation controls the possession, cultivation, processing and supply of industrial hemp in South Australia:

Controlled Substances Act 1984 Controlled Substances (Controlled Drugs, Precursors and Plants) Regulations 2014 Industrial Hemp Act 2017 Industrial Hemp Regulations 2017

Under the Controlled Substances Act 1984 and the Controlled Substances (Controlled Drugs, Precursors and Plants) Regulations 2014 it is an offence to possess, cultivate, process or supply industrial hemp without a licence issued under the Industrial Hemp Act 2017.

Licence types

There are three industrial hemp licence types that can be issued in South Australia:

1. An industrial hemp cultivation licence provides authorisation to:

Possess viable industrial hemp seed

Cultivate industrial hemp from certified seed

Harvest industrial hemp seed and other plant material

Dry harvested industrial hemp seed and other plant material

Dehull industrial hemp seed grown on the premises

Press or crush industrial hemp seed grown on the premises to produce hemp seed oil and other products

Store harvested industrial hemp seed or other plant material

Supply industrial hemp seed and other plant material (to a licence holder if within SA)

* Note the requirement for the area of cultivation to be greater than one hectare.

Version 1.0

12 November 2017

Industrial Hemp Licensing Unit Phone: 1300 799 684 - Email: [email protected]

mailto:[email protected]

2. An industrial hemp processing licence provides authorisation to:

Possess viable industrial hemp seed for processing purposes

Clean and/or treat viable industrial hemp seed to make it non-viable

Clean and/or dehull viable industrial hemp seed for food production

Clean and/or press viable industrial hemp seed for food production

3. An industrial hemp possession licence provides authorisation to:

Possess industrial hemp plant material for research purposes

Possess and store viable industrial hemp seed for supply purposes.

If more than one licence is required, multiple licence application fees may apply.

An industrial hemp licence is not required to possess, process and supply:

Non-viable industrial hemp seeds

Products derived from processed industrial hemp seeds (eg industrial hemp seed oil)

Harvested industrial hemp stalks that have been stripped of their leaves, flowers and seeds

Products derived from industrial hemp stalks (eg textiles, building materials).

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Assessment of Licence Applications

Suitability of Applicant - fit and proper person:

Under the Industrial Hemp Act 2017, the Chief Executive is required to investigate licence applications to determine whether the applicant and each associate of the applicant are fit and proper persons to be concerned in or associated with the cultivation of industrial hemp:

A licence will not be issued if the applicant or an associate of the applicant has been found guilty of a drug related offence in South Australia or another jurisdiction.

Drug related offence means:(a) an indictable or summary offence involving possession, or cultivation of, or trafficking in, a drug of

dependence; or(b) an indictable under the Controlled Substances Act 1984(c) a summary offence under Part 5 Division 4 of the Controlled Substances Act 1984(d) an indictable or summary offence under the law of another jurisdiction involving possession, or

cultivation of, or trafficking in, a drug of dependence.

Other prescribed requirements include that:

o The applicant’s property or premises is suitable for the possession, cultivation or processing of industrial hemp in relation to location, facilities and proposed security arrangements

o The applicant has a lawful and genuine purpose for the possession, supply cultivation or processing of industrial hemp.

o That the applicant is of or above the age of 18 years

Other considerations regarding the suitability of an applicant may include:

o The character, honesty and integrity of the applicant and their associates and relatives

o The criminal history of the applicant and their associates and relatives

o Whether the applicant or any associate of the applicant has a history of non-compliance with the Act

o The financial resources of the applicant to comply with obligations under the Industrial Hemp Act 2017.

o The ownership and corporate structure of a company.

South Australia Police Probity Checks

Under the Industrial Hemp Act 2017, the Chief Executive is required to forward all licence applications to the Commissioner of Police to conduct probity checks on the applicant and associates of the applicant. This includes investigations into the criminal history of applicants and their associates, as well as prior allegations of criminal conduct and potential association with organised crime.

The Act provides 60 days for the Commissioner of Police to notify PIRSA in writing of their decision to support or oppose the issuing of a licence. If the Commissioner of Police opposes an application for an industrial hemp licence, a licence will not be issued.

Definitions

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Associate: a person who is of or above the age of 18 years is an associate of an applicant for a licence or licence holder if the person –

(a) holds any relevant financial interest, or is entitled to exercise any relevant power (whether in right of the person or on behalf of any other person) in the business of the applicant or the licence holder (being the business to which the application or licence relates), and by virtue of that interest or power, is able to exercise a significant influence over or with respect to the management or operation of the business; or

(b) holds any relevant position (whether in right of the person or on behalf of any other person) in the business of the applicant or the licence holder (being the business to which the application or licence relates); or

relevant financial interest in relation to a business means—

(a) any share in the capital of the business; or (b) any entitlement to receive any income derived from the business;

relevant position in relation to the business of an applicant or a licence holder means—

(a) the position of director, partner, trustee, manager, secretary or other executive position, however designated

relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others—

(a) to participate in any directorial, managerial or executive decision; or

(b) to elect or appoint any person to any relevant position.

Certified hemp seed must be certified in accordance with a procedure determined by the Chief Executive.

Drug related offence means:(a) an indictable or summary offence involving possession, or cultivation of, or trafficking in, a drug of

dependence; or(b) an indictable under the Controlled Substances Act 1984(c) a summary offence under Part 5 Division 4 of the Controlled Substances Act 1984(d) an indictable or summary offence under the law of another jurisdiction involving possession, or

cultivation of, or trafficking in, a drug of dependence.

Hemp means a plant, or any part (including the seed) of a plant, of the genus Cannabis.

Industrial hemp means hemp that has been grown from certified hemp seed and has a concentration of tetrahydrocannabinol (THC) in the leaves and flowering heads of not more than 1%.

relative means a person who is:

(a) a spouse or domestic partner; or (b) a parent; or (c) a step-parent; or (d) a sibling or step-sibling; or (e) a child, step-child or adopted child;

spouse—a person is the spouse of another if they are legally married.

domestic partner means a person who is a domestic partner within the meaning of the Family Relationships Act 1975, whether declared as such under that Act or not;

THC means tetrahydrocannabinol, the psychoactive (mind altering) chemical compound found in cannabis plants.

PART A Supporting Documents

1. The map of the proposed licensed premises should include the following details:

The GPS coordinates taken at the approximate centre of the premises.

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The property boundaries and dimensions of the premises.

Entrances to the premises and proposed storage facilities.

Surrounding land use, nearby townships, residences and any other area or place that may be relevant within 1km of the premises such as public land or schools.

Note: Google Earth Pro can be used to generate your map www.google.com/earth/desktop/

Zoom into the premises area and Select from the toolbar. Move the “untitled placemark” to the centre of the premises. Name the placemark “Licensed premises” and record the latitude and longitude for the application form. Select File/Print and give the map a name. Other details required for the map can be drawn on the printed map using a marker pen.

2. A record of registration of a business name is available from:http://asic.gov.au/online-services/search-asics-registers/business-names/

3. A company letter is required to provide authorisation to apply on the behalf of a company

4. An ASIC company extract is available from:https://connectonline.asic.gov.au/RegistrySearch/faces/landing/InformationBrokers.jspx?_adf.ctrl-state=125tcfjcy1_108

5. A template consent form is provided in attachment 1 for use if the applicant is not the property owner

6. Evidence of appropriate methodology and educational qualifications to cultivate and supply industrial hemp for scientific research, instruction, analysis or study:

A comprehensive plan or description of the proposed scientific research, instruction, analysis or study proposed under the application. This should include:o The objectives of the research, instruction, analysis or study o A description of the trial design, experimental method or analysis plano An estimate of the quantity of industrial hemp to be producedo The proposed use, disposal and destruction of industrial hemp that is cultivated under the

licence. The educational qualifications and experience of the applicant and associates who will be

concerned in or associated with the cultivation of industrial hemp under the licence. The applicant is responsible for the conduct of the research activity and should have professional qualifications and scientific experience that are relevant to the proposed work.

7. The application fee for a new licence for 2017/2018 is $1080

8. The fee charged by South Australia Police for probity checks under the Industrial Hemp Act 2017 is $200 for each check required for the applicant and each associate of the applicant.

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https://connectonline.asic.gov.au/RegistrySearch/faces/landing/InformationBrokers.jspx?_adf.ctrl-state=125tcfjcy1_108

https://connectonline.asic.gov.au/RegistrySearch/faces/landing/InformationBrokers.jspx?_adf.ctrl-state=125tcfjcy1_108

http://asic.gov.au/online-services/search-asics-registers/business-names/

http://www.google.com/earth/desktop/

PART B Applicant Details:

An industrial hemp licence may be applied for and held by a natural person (sole trader or one partner in a partnership) or a company:

Complete Part B.1 if applying as a sole trader

Complete Part B.2 if applying on behalf of a partnership – the licence will be held in the legal name of the partner applying for the licence

Complete Part B.3 if applying as a company

Under the Industrial Hemp Act 2017, the Chief Executive is required to forward all licence applications to the Commissioner of Police to conduct probity checks on the applicant and associates of the applicant. This includes investigations into the criminal history of applicants and their associates, as well as prior allegations of criminal conduct and potential association with organised crime.

Part B collects the personal details along with information on the financial and offence history of the licence applicant, along with all partners in a partnership and all directors of a company to assist the South Australia Police with their investigations.

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Part C – Associates

Under the Industrial Hemp Act 2017, the Chief Executive is required to forward all licence applications to the Commissioner of Police to conduct probity checks on associates of the applicant. This includes investigations into the criminal history of associates, as well as prior allegations of criminal conduct and potential association with organised crime.

Part C collects the personal details along with information on the financial and offence history of associates of the applicant to assist the South Australia Police with their investigations. Complete information must be completed for each associate. If there are more than 3 associates, photocopy Part C and attach the additional pages to the application form.

Applicants should familiarise themselves with the definition of ‘Associates’ below. The following guidelines are provided to assist in determining who should be included in the application as an associate:

A sole trader is legally responsible for all aspects of a business and therefore, unless there is a person who is able to exercise significant influence over the management or operation of the business, sole traders may not have any associates for the purpose of the Act.

Shareholders of a propriety limited company are considered associates if they are able to exercise a significant influence over, or with respect to, the management or operation of the business.

Beneficiaries of a trust are considered associates if they are able to exercise a significant influence over, or with respect to, the management or operation of the business.

Where the licensed premises is not owned by the applicant and the owner of the property lives and/or works on the property, the owner may be considered an associate if they are able to exercise a significant influence over, or with respect to, the management or operation of the business.

Associates are defined in section 4 of the Act as follows:

(1) For the purposes of this Act, a person who is of or above the age of 18 years is an associate of an applicant for a licence or licence holder if the person –

(a) holds any relevant financial interest, or is entitled to exercise any relevant power (whether in right of the person or on behalf of any other person) in the business of the applicant or the licence holder (being the business to which the application or licence relates), and by virtue of that interest or power, is able to exercise a significant influence over or with respect to the management or operation of the business; or

(b) holds any relevant position (whether in right of the person or on behalf of any other person) in the business of the applicant or the licence holder (being the business to which the application or licence relates)

(2) In subsection (1)relevant financial interest in relation to a business means—

(a) any share in the capital of the business; or (b) any entitlement to receive any income derived from the business;

relevant position in relation to the business of an applicant or a licence holder means— (a) the position of director, partner, trustee, manager, secretary or other executive position-,

however designated

relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others—

(a) to participate in any directorial, managerial or executive decision; or

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(b) to elect or appoint any person to any relevant position

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Part D.1 – Application for a Cultivation Licence

Complete this section if you require authorisation to: Possess viable industrial hemp seed for the purpose of cultivation

Cultivate industrial hemp from certified seed

Harvest industrial hemp seed and other plant material

Dry harvested industrial hemp seed and other plant material

Dehull industrial hemp seed grown on the premises

Press or crush industrial hemp seed grown on the premises to produce hemp seed oil and other products

Store harvested industrial hemp seed or other plant material

Supply industrial hemp seed and other plant material (to a licence holder if within SA).

Details of the property to be licensed must be provided in this section. Note: It is a prescribed condition under the Industrial Hemp Regulations 2017 that industrial hemp cultivation areas must not be less than one hectare in area (see Licence Conditions under the Industrial Hemp Act 2017). This condition does not apply to licences authorising cultivation for scientific research, instruction, analysis or study purposes.

If you are not the owner of the property you will need to provide evidence that the owner consents to the use of this property for the cultivation of industrial hemp. A template consent form is attached to these guidelines.

D.1.1 – Monitoring and deterring unauthorised access to an industrial hemp crop:

Although industrial hemp crops contain less than 1% THC, the unauthorised interference with, or theft of, industrial hemp presents a business risk for the licence holder to manage. The licence applicant should give careful consideration to the proposed location of the crop and the security measures that can be used to monitor and deter unauthorised access to a crop.

Considerations include:

Locating industrial hemp crops away from public roads or using a setback distance to reduce public awareness of the crop location.

Locating industrial hemp crops near a residence on the property so unauthorised access is less likely to go undetected.

The use of fencing or low industrial hemp (low THC) signage to reduce the likelihood of crop theft.

Advising your neighbors of the location and nature of the industrial hemp crop and asking them to contact you if any suspicious activity is observed.

Monitoring the industrial hemp crop for signs of interference or theft.

Secure storage of harvested industrial hemp seed.

Note: It is a prescribed condition under the Industrial Hemp Regulations 2017 that the Chief Executive is notified immediately of any unauthorised interference with, or theft of, industrial hemp cultivated or possessed under the licence (see Licence Conditions under the Industrial Hemp Act 2017).

D.1.2 – Intended use of industrial hemp cultivated under the licence:

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At the time of application, the applicant should have a clear idea of the purpose of the cultivation. While it may change, this information is required in the application form as it provides evidence of a lawful and genuine purpose for the cultivation of industrial hemp. Potential uses include:

Certified seed stock for sowing on-farm

Certified (viable) seed to supply for cultivation purposes

Certified (viable) seed to supply for processing purposes

Non-viable seed for supply to a third party for retail sale

Plant material for supply for use in a manufacturing process

Hemp seed products (eg hemp seed oil) for retail sale

Scientific research, instruction, analysis or study

D.1.3 – Supplier of certified seed

PIRSA is not a retailer of certified industrial hemp seed and is unable to assist with the acquisition of seed for cultivation purposes. Industrial hemp seed varieties are developed for different climatic areas and growing conditions so buyers should take this into account when sourcing seed. Industrial hemp seed may be available from one of the interstate hemp seed retailers located in NSW or Queensland and may also be available from WA and Victorian sources. Import conditions may apply.

Seed can also be imported but additional costs may be incurred due to import requirements such as licensing and quarantine clearance through the Commonwealth Department of Agriculture and Water Resources and the Office of Drug Control.

Regardless of source of industrial hemp seed you are required to provide a certificate that the plants producing the purchased seed had a THC level less than 0.5%, with the details of the laboratory providing the test result so this may be verified by licensing officers.

Note: It is a licence condition that the Chief Executive must be notified of the source of the seed to be used at least 28 days before sowing commences.

D.1.4 – Person being supplied industrial hemp cultivated under the licence

At the time of application, information regarding the intended destination of the industrial hemp seed or plant material may not be known. If this information is known, it should be supplied with the application as it provides evidence of a lawful and genuine purpose for the cultivation of industrial hemp.

Note: It is a licence condition that the name and address of the person supplied with industrial hemp is reported to the Chief Executive within 28 days of the supply.

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Part D.2 – Application for a Processing Licence

Complete this section if you require authorisation to: Possess viable industrial hemp seed

Clean and/or treat viable industrial hemp seed to make it non-viable

Clean and/or dehull viable industrial hemp seed for food production

Clean and/or press viable industrial hemp seed for food production

Details of the premises to be authorised for industrial hemp processing must be provided in this section.

If you are not the owner of the property you will need to provide evidence that the owner consents to the use of this property for the processing of industrial hemp. A template consent form is attached to these guidelines.

D.2.1 – Monitoring and deterring unauthorised access to processing and storage areas:

Although industrial hemp contains less than 1% THC, the unauthorised interference with, or theft of, industrial hemp seed or plant material presents a business risk for the licence holder to manage. The licence applicant should give careful consideration to the security measures that can be used to monitor and deter unauthorised access to processing and storage areas.


The use of fencing, locked gates or industrial hemp (low THC) signage to reduce the likelihood of theft.

Asking your neighbours to contact you if any suspicious activity is observed.

Monitoring the processing and storage areas for signs of interference or theft.

Note: It is a prescribed condition under the Industrial Hemp Regulations 2017 that the Chief Executive is notified immediately of any unauthorised interference with, or theft of, industrial hemp possessed under the licence.


PIRSA is not a retailer of crop seed and is unable to assist with the acquisition of seed for processing purposes. Industrial hemp seed may be available from one of the interstate hemp seed retailers located in NSW or Queensland and may also be available from WA and Victorian sources.

Seed can also be imported but additional costs may be incurred due to import requirements such as quarantine clearance. Industrial hemp seed varieties are developed for different climatic areas and growing conditions so buyers should take this into account when sourcing seed.


D.2.3 – Person being supplied industrial hemp processed under the licence

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At the time of application, information regarding the intended destination of the processed industrial hemp seed or plant material may not be known. If this information is known, it should be supplied with the application as it provides evidence of a lawful and genuine purpose for the processing of industrial hemp.

Note: It is a licence condition that the name and address of the person supplied with industrial hemp is reported to the Chief Executive within 28 days of the supply.

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Part D.3 – Application for a Possession Licence

Complete this section if you require authorisation to: Possess industrial hemp plant material for research purposes

Possess and store viable industrial hemp seed for supply purposes.

Details of the premises to be authorised for possession and storage of viable industrial hemp seed must be provided in this section.

If you are not the owner of the property you will need to provide evidence that the owner consents to the use of this property for the possession and storage of viable industrial hemp seed. A template consent form is attached to these guidelines.

D.3.1 – Monitoring and deterring unauthorised access to storage areas:

Although industrial hemp seeds only contain trace amounts of THC, the unauthorised interference with, or theft of, industrial hemp seed or plant material presents a business risk for the licence holder to manage. The licence applicant should give careful consideration to the security measures that can be used to monitor and deter unauthorised access to storage areas.


The use of fencing, locked gates or industrial hemp (low THC) signage to reduce the likelihood of theft.

Asking your neighbours to contact you if any suspicious activity is observed.

Monitoring the storage areas for signs of interference or theft.

Note: It is a prescribed condition under the Industrial Hemp Regulations 2017 that the Chief Executive is notified immediately of any unauthorised interference with, or theft of, industrial hemp possessed under the licence (see Licence Conditions under the Industrial Hemp Act 2017).


PIRSA is not a retailer of crop seed and is unable to assist with the acquisition of seed. Industrial hemp seed may be available from one of the interstate hemp seed retailers located in NSW or Queensland and may also be available from WA and Victorian sources. Import conditions may apply.

Seed can also be imported but additional costs may be incurred due to import requirements such as licensing and quarantine clearance through the Commonwealth Department of Agriculture and Water Resources and the Office of Drug Control.


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D.3.3 – Person being supplied industrial hemp under the licence

At the time of application, information regarding the intended destination of the industrial hemp seed or plant material may not be known. If this information is known, it should be supplied with the application as it provides evidence of a lawful and genuine purpose for the possession of industrial hemp.

Note: It is a licence condition that within 28 days of the end of each financial year, the licence holder must report to the Chief Executive the names and addresses of each person supplied with certified hemp seed (see Licence Conditions under the Industrial Hemp Act 2017).

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Part E – Relatives of Sole Trader & Partner Applicants

This section collects the full name, date of birth, residential address and position for relatives of the applicant. South Australia Police has discretion to include these persons in their probity checks at no additional fee.

Section 10 of the Act defines a relative as follows:

relative means a person who is:

(a) a spouse or domestic partner; or (b) a parent; or (c) a step-parent; or (d) a sibling or step-sibling; or (e) a child, step-child or adopted child;

spouse—a person is the spouse of another if they are legally married.

domestic partner means a person who is a domestic partner within the meaning of the Family Relationships Act 1975, whether declared as such under that Act or not;

Part F – Employee Details

This section collects the full name, date of birth, residential address and position for all persons who are employed or engaged to carry out activities authorised by the licence.

It is a prescribed condition under the Industrial Hemp Regulations 2017 that a licence holder only employs or engages persons who are suitable to carry out activities authorised under the licence (see Licence Conditions under the Industrial Hemp Act 2017).

Unlike the fit and proper person assessment of the applicant and associates of the applicant, which is conducted by South Australia Police, it is the licence holder’s responsibility to assess whether an employee is suitable.

Unsuitable employees may present a risk to the business operations under the licence, for example by using non-certified seed to sow the crop, or growing cannabis plants for recreational use within an industrial hemp crop.

As these activities constitute non-compliance with licence conditions, the licence holder will face a maximum penalty of $15 000 or imprisonment for 12 months or both.

The licence holder should consider these risks when determining what arrangements will be used to ensure that employees are suitable to carry out activities under the licence. Such arrangements may include criminal history record checks on employees, proof of identification, and statements on behalf of employees about their history of recreational drug use or addiction, drug convictions or other criminal history 5 years.

A person’s criminal history or prior use of recreational drugs does not necessarily preclude employment but should be used to determine what risk management is required (e.g. only permitting the employee to access the industrial hemp cultivation area during sowing when the licence holder is present).

Part G – Declaration

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Under section 21 of the Industrial Hemp Act 2017, it is an offence when giving information under the Act to make a statement knowing it is false or misleading or omitting any matter from a statement knowing that without the matter the statement is false or misleading.

The declaration must be signed by the applicant or authorised applicant to confirm that the information provided in the application is true, accurate and complete. The declaration is also used to confirm awareness of the South Australia Police probity checking process.

Under section 16 of the Industrial Hemp Act 2017, the Chief Executive may suspend or cancel a licence if satisfied that the licence holder has contravened or failed to comply with the provisions of the Act or a term or condition of a licence – this may include making false or misleading statements in an application form or omitting any matter knowing that will make the statement false or misleading.

In addition to the suspension or cancellation of a licence, non-compliance with licence conditions has a maximum penalty of $15 000 or imprisonment for 12 months or both.

Part H – Payment of Application Fee

Application fees are payable by credit card at the time of application. If the application fee is not received, the application will not be processed until the fee is provided.

The licence application fee for 2017/2018 is $1080 (with approved licences valid for 5 years).

In addition to the application fee, the applicant must pay for South Australia Police to conduct probity checks on the applicant and each associate of the applicant. South Australia Police currently charge $200 for each probity check conducted under the Industrial Hemp Act 2017.

For example, an applicant has identified two associates (business partners) who will be associated with the cultivation or processing of industrial hemp under the licence. The applicant will need to pay the following fees:

Application fee: $1080

South Australia Police probity checks: $600 (applicant plus 2 associates)

Fee Total: $1680

Please note that each industrial hemp crop must be inspected by a PIRSA authorised inspector and samples collected to independently confirm that the THC level of the crop is <1%.

Crop inspection and sampling attracts a fee of $145 per hour plus $145 per hour of travel. The licence holder is also required to pay the cost of the laboratory testing. The laboratory fees are subject to change but the approximate cost is $250 for each of the required samples. Laboratories often require upfront payment for their services.

Further Information

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For more information, please contact the PIRSA Industrial Hemp Licensing Unit on 1300 799 684 or [email protected]

Application for an Industrial Hemp Licence

Industrial Hemp – Frequently Asked Questions

Licence Conditions under the Industrial Hemp Act 2017

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mailto:[email protected]

Attachment 1 – Template property owner consent form

Consent to use of property for industrial hemp cultivation, processing or storage

I, [full name] …………………………………………………………………………………………………

being the legal owner of the property (full address of property)

...................…………………………………………………………………………………………………

...................…………………………………………………………………………………………………

Give consent for the use of this property for the cultivation of industrial hemp for the purpose of commercial production / manufacturing / food production / research purposes (delete uses that are not applicable) pursuant to a licence issued under the Industrial Hemp Act 2017.

................................................................................................

[Signature of property owner]

Date:

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Flow Chart – Industrial Hemp Licensing in South Australia

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