§328G-2  Hemp processor permit application; permit revocation.  [See Note at beginning of chapter.]  (a)  No person shall process hemp biomass or prepare a manufactured hemp product without obtaining a permit by the department as a hemp processor pursuant to this part and any rules adopted pursuant to this chapter.

     (b)  A person who intends to operate as a hemp processor shall apply to the department for a permit on an application form created by the department.

     (c)  The applicant shall provide, at a minimum, the following information:

     (1)  The applicant's name, mailing address, and phone number in Hawaii;

     (2)  The legal description of the land on which the hemp processor is to operate;

     (3)  A description of the enclosed indoor facility where the hemp processor will operate;

     (4)  Documentation that:

          (A)  The hemp processor's indoor facility and planned hemp processing operation complies with all zoning ordinances, building codes, and fire codes; or

          (B)  The processing does not include heat or volatile compounds or gases under pressure, such as cold-water extraction, and is in an enclosed indoor facility that is:

              (i)  Exempt from building permit and building code requirements pursuant to section 46-88; or

             (ii)  In a food hub or agricultural park;

     (5)  Proof of no disqualifying felony convictions, which shall be established by an individual applicant or, if the applicant is a firm, corporation, partnership, association, or any form of business or legal entity, an individual acting on behalf of the entity by providing either:

          (A)  A valid United States Department of Agriculture hemp license that required fingerprinting and a federal background check; or

          (B)  Consent to a background check that includes but is not limited to fingerprinting and criminal history checks pursuant to section 846-2.7 and documentation of the authority of the individual to act on behalf of the applying entity; and

     (6)  Any other information required by the department.

     (d)  In addition to the application form, each applicant shall submit a non-refundable application fee established by the department.  If the fee does not accompany the application, the application for the permit shall be deemed incomplete.

     (e)  Any incomplete application shall be denied.

     (f)  Upon the department's receipt of a complete and accurate application, confirmation that the applicant does not have a disqualifying conviction for a state or federal felony related to a controlled substance during the ten years prior to the date the application is submitted, remittal of the application fee, and contingent upon compliance with this chapter and any rules adopted pursuant to this chapter, the department may issue a permit to the applicant to operate as a hemp processor.

     (g)  The permit shall be renewed annually by submission of a renewal application and payment of the annual renewal fee to be determined by the department.

     (h)  Hemp processors shall allow any member of the department, or any agent or third party authorized by the department, to enter at reasonable times upon any private property in order to inspect, sample, and test any hemp biomass, crude extract, or manufactured hemp product, equipment, facilities incident to the processing or storage of hemp biomass, crude extract, or manufactured hemp products, and review all pertinent records.

     (i)  The department may revoke any person's permit for failure to comply with any law or regulation under this chapter.  It is the responsibility of the hemp processor to make sure it has a valid permit and is legally allowed to process hemp biomass or prepare a manufactured hemp product and in compliance with any and all laws and regulations.  The revocation of a hemp processor's permit shall be in accordance with the procedures set forth in section 328G-6. [L 2020, c 14, pt of §2, §9; am L 2021, c 230, §7; am L 2022, c 137, §2; am L 2023, c 263, §6]