Guidelines for engaging in the commercial production of industrial hemp in Queensland

Smokin Moose

Fallen Cannabis Warrior & Ex Moderator
Guidelines for engaging in the commercial production of industrial hemp in Queensland

Some definitions

Note: the term 'industrial hemp' is used to include 'industrial cannabis' and 'research cannabis'.
Cannabis sativa

Cannabis sativa is the taxonomic classification for plants known as industrial hemp, industrial cannabis, Indian hemp, cannabis, or hemp. Marijuana plants are also classified taxonomically as Cannabis sativa.
THC

THC is an abbreviation for tetrahydrocannabinol (delta-9-tetrahydrocannabinol), a psycho-active drug which is found in the leaves and flowering heads of Cannabis sativa plants
Industrial cannabis plant

Means a cannabis plant with a THC concentration in its leaves and flowering heads of not more than 1%.
Certified cannabis seed

Means seed certified, in the way prescribed under the Drugs Misuse Regulation 1987, by any of the following as seed that will produce cannabis plants with a THC concentration in their leaves and flowering heads of not more than 0.5% - (a) a grower; or (b) a category 1 or category 2 researcher; or (c) a person authorised under the Regulation under section 48 of the Drugs Misuse Act 1986 to supply industrial cannabis seed.
Class A research cannabis plant

Means a cannabis plant that has a THC concentration in its leaves and flowering heads of 3% or more.
Class B research cannabis plant

Means a cannabis plant that has a THC concentration in its leaves and flowering heads of more than 1% but less than 3%.
Processed cannabis

Means (a) industrial cannabis plants that (i) have been harvested or chemically or mechanically treated or artificially treated in another way; and (ii) have no leaf, flowers or seed; or (b) seed from industrial cannabis plants grown by a holder of a grower licence under part 5B and denatured - (i) on the place stated in the licence; or (ii) by a person authorised under the Regulation under section 48 of the DM Act to denature the seed at another place.
Manufactured product

Means a product that - (a) is made from, or partly from, processed cannabis that - (i) is harvested from industrial cannabis plants; and (ii) has a concentration of THC in it of not more than 0.1%; and (b) is in a form that stops it from being smoked or administered or consumed.
Close associate

For the business of the applicant wishing to engage in the industrial cannabis industry in Queensland, a 'close associate' is anyone with the power to be able to influence significantly the conduct of that business, whether it be by financial interest, or by holding any relevant position.
Serious offence

(a) any of the following offences, whether or not prosecuted on indictment:

(i) an offence involving fraud or dishonesty punishable by 3 or more years imprisonment;

(ii) an offence against Section 5 (Trafficking in dangerous drugs), Section 6 (Supplying dangerous drugs), or Section 8 (Producing dangerous drugs) of the Drugs Misuse Act 1986;

(iii) an offence against section 8A (Publishing or possessing instructions for producing dangerous drugs) or 9 (Possessing dangerous drugs) punishable by 3 or more years imprisonment;

(iv) an offence involving the use or threatened use of violence punishable by 3 or more years imprisonment; or

(b) extortion; or

(c) an offence against a provision of the Criminal Code mentioned in the schedule; or

(d) an offence that, if committed in Queensland, would be a serious offence under paragraphs (a), (b), or (c) above.

Please refer to Part 1 section 4 and Part 5B section 46 of Drugs Misuse Act 1986 for further definitions relating to the commercial production of industrial cannabis.


Introductiontop of page arrow

These guidelines provide information about industrial hemp in Queensland. They explain the category of licence required to research or grow the crop, eligibility and suitability requirements for persons wishing to obtain a licence, the application process, other industry participants, the role of inspectors, and where to find more information. These guidelines should be read in conjunction with the Drugs Misuse Act 1986 (DM Act) and the Drugs Misuse Regulation 1987 (Regulation). Applicants should familiarise themselves with this legislation, and in particular, the licence conditions set out in section 64 of the DM Act and schedule 8 of the Regulation.


Industrial hemp

Industrial hemp (Cannabis sativa ) may also be referred to as industrial cannabis, Indian hemp or hemp. The plant has a long history, having been grown for the production of items such as textiles, paper, rope, fuel, oil and stockfeed. More recently, wider applications for industrial hemp have included composite building materials, oil and chemical absorption materials, animal bedding, kitty litter, motor vehicle insulation and linings - all produced from the fibre, as well as products derived from hemp oil which include cosmetics, paints, printing inks, solvents and animal feed.

The Cannabis sativa plant contains THC the psycho-active (mind-altering) ingredient produced in specialised glands found primarily in the flowers surrounding the seeds, and to a lesser extent, on the leaf surface of the plant. No THC is found in the seed. The difference between industrial hemp and marijuana used for illicit drug purposes is that the THC exists in significantly lower concentrations in industrial hemp.

It is generally accepted that only Cannabis sativa with a THC concentration of 3% and above is considered attractive as marijuana, and less than 3% is considered as industrial hemp. However it is important to know that commercial grown industrial cannabis plants grown for seed or fibre production must not exceed 1% THC.

It is important to note that hemp is not approved as a food in Australia.


Queensland law and industrial hemp

In Queensland, the DM Act classifies Cannabis sativa as a dangerous drug, and significant penalties apply to its unlawful cultivation, possession, and supply. Penalties also apply to the unlawful publication or possession of instructions to produce Cannabis sativa. Despite this the DM Act provides for industrial hemp (industrial cannabis) to be grown under controlled conditions for its fibre and seed.

To enable industrial cannabis to be grown for commercial use in Queensland, amendments were made to the Act in 1998 to allow for controlled field trials and plant breeding research. On 8 August 2002 the Drugs Misuse Amendment Bill was passed by the Queensland Parliament which allowed for the commercialisation of industrial cannabis fibre and grain. Proclamation of the amendments to both the DM Act and the Regulation occurred on 27 September 2002. Part 5B of the DM Act and Part 4 of the Regulation apply specifically to the commercial production of industrial cannabis.

The legislation makes it possible for people from researchers to retailers to participate in this industry, however they must do so in accordance with the prescribed conditions. Industry participants should make themselves familiar with Part 5B of the DM Act, together with the provisions of the Regulation. A copy of the DM Act, the Regulation, and the Explanatory Notes can be accessed at the website of the Office of Queensland Parliamentary Counsel or purchased from the Queensland Government Bookshop, Ground Floor, Mineral House, 41 George Street, Brisbane, Qld 4000 (telephone 07 3118 6900 within Brisbane or 1800 679 778, outside Brisbane) Home - Queensland Government Bookshop

The legislation allows for the research, production, processing, marketing, and trade of processed industrial cannabis fibre and seed products, with the exception of those products that could be smoked, administered or consumed.



Growers and researcherstop of page arrow

If you intend to participate as a grower or as a researcher (plant breeding or other research), you must have a licence. The class of licence is determined by the purposes for which you intend to use Cannabis sativa. These purposes are as follows:

Production of industrial cannabis fibre or seed

Industrial cannabis plants are used by licenced growers in the broadacre production of industrial cannabis fibre or seed/ grain. A grower licence authorises a grower to produce industrial cannabis plants from certified cannabis seed (seed certified to produce plants with a THC concentration in their leaves and flowering heads of not more than 0.5%). However the legislation states that industrial cannabis plants may have a THC concentration in their leaves and flowering heads of up to 1.0%. The difference recognises that the leaves and flowering heads of plants grown using certified cannabis seed may have more than 0.5% THC because of environmental conditions beyond a grower's control.

Research of class A research cannabis

For plant breeding programs to achieve best results, it is desirable to have access to all available characteristics. This process may require introducing new accessions into plant breeding programs possibly sourced from international seed banks or from the wild where the THC concentrations are unknown. For this purpose, licenced researchers use class A research plants which have been defined as a cannabis plant that may have a THC concentration in its leaves and flowering heads of 3% or more.

Research of class B research cannabis

A class B research cannabis plant, which is defined as having a THC concentration in its leaves and flowering heads of more than 1% but less than 3% can be used by licensed researchers who wish to draw from a relatively broad range of cultivars for the purposes of breeding and/ or crop agronomy for the selection of plants with desirable characteristics suitable for commercial production.

The final objective of all plant breeding will be to develop plant varieties with desirable characteristics and with a maximum THC concentration of 0.5% in their leaves and flowering heads from which seed will be multiplied to be sold as certified seed for top of page arrowcommercial production, or for use as a manufactured product.


Three categories of licences
Grower licence

In accordance with section 52 of the DM Act, a grower licence authorises the holder to grow and trade in industrial cannabis plants and seed. Certain conditions apply as set out in section 64 of the DM Act and section 29 and schedule 8 of the Regulation. Licensed growers may also work in conjunction with plant breeders who may wish to conduct trials on a grower's property.
Category 1 researcher licence

In accordance with section 50 of the DM Act, a category 1 researcher licence authorises licenced holders to use class A and class B research cannabis as defined above in their plant breeding programs. Conditions apply in accordance with section 64 of the DM Act and section 29 and schedule 8 of the Regulation.
Category 2 researcher licence

In accordance with section 51 of the DM Act, a category 2 researcher licence authorises licenced holders to use class B research cannabis as defined above in their plant breeding programs. Conditions apply in accordance with section 64 of the DM Act and section 29 and schedule 8 of the Regulation.


Applying for a licence

Applicants for a grower, category 1 researcher or category 2 researcher licence must apply in writing using the approved application form and submit the prescribed licence application fees and criminal history check fees detailed below in the 'Fees and charges' section of these Guidelines. Applicants must meet certain eligibility and suitability requirements, which are set out at sections 58, 59, 60, and 61 of the DM Act. In brief summary, these requirements include but are not restricted to the following:
Eligibility

Eligibility requirements for all three licences

Applicants are eligible if they have not been convicted of a serious offence (see Definition on page 3 of these Guidelines) within the past 10 years or if they have not been affected by bankruptcy action (section 58 DM Act). For corporations applying for a licence, these eligibility requirements apply to executive officers of the corporation (section 59 DM Act).
Additional eligibility requirements for a Category 1 or Category 2 Researcher Licences:

Applicants must also have the necessary educational or other qualifications and experience to engage in plant breeding or other research involving the use of industrial cannabis or class A or class B research cannabis. If the applicant is a corporation, at least one of the corporation's employees must have the necessary educational or other qualifications and experience to carry out plant breeding under the licence (section 57 DM Act). A corporation holding a researcher licence would be expected to maintain an employee with this experience or qualification throughout the currency of the licence.
Suitability

In considering an applicant's suitability for any of these licences, the Director-General of the Department of Primary Industries and Fisheries (DPI&F) will take into consideration the reputation of the applicant, and their close associates or executive officers, with regard to character, honesty and integrity (section 60 DM Act). To assess whether the applicant, the applicant's close associates*, or a corporation applicant's executive officers are of good repute, it is necessary for the DPI&F to conduct interviews with nominated referees listed on a Supplement to the Licence Application Form completed by each of these persons. Referees cannot be related to these persons by either birth or marriage or other partnership, must be at least 18 years of age and must have known the relevant person for at least 3 years. Each referee needs to complete their section of the Supplement to the Licence Application Form.

The Queensland Police Service will also conduct a criminal history check of each applicant and their close associates. If the applicant is a corporation, a criminal history check will be conducted for each executive officer.

Applicants, or, if the applicant is a corporation, its executive officers, must consent to having their fingerprints taken by a police officer in the event that fingerprints are required by the Commissioner of Police. Should this requirement be necessary, the cost of fingerprinting and searching the national fingerprint database must be incurred by the applicant.

Close associates or exective officers of applicants will need to be made aware and provide written approval in the relevant section of the application form that they approve of the Queensland Police Service conducting a search of any criminal history.


Licence application processtop of page arrow

Note: DPI&F requires at least one month to consider the application because of the detailed assessment required. If at all possible you should send your application to Biosecurity Queensland at least two months before intended planting start time to allow for sudden unexpected pest and animal disease incursions which can take key staff away from their regular work roles to assist with the emergency response. It is illegal to grow industrial cannabis without a licence.

See Application for a grower or researcher licence .

The completed application form, the supplement to the licence application forms completed by each relevant person and their referees, supporting documentation, passport photos, and payment should be mailed to:

Industrial Hemp Regulatory Officer
DPI&F , BiosecurityQueensland
GPO Box 46, Brisbane QLD 4001

For hand delivery:
Level 3, Primary Industries Building, 80 Ann Street,
Brisbane CBD, QLD

When DPI&F receives your application, your eligibility and suitability for a licence will be considered.

DPI&F will ask the Commissioner of Police to make enquiries about any criminal history of you or your close associates, or if you are a corporation, all of the executive officers and will forward to the Commissioner of Police any official criminal history document from another State that has been provided by you.

The Commissioner of Police will then report the results of the QPS enquiries to the DPI&F, including disclosure of convictions mentioned in the provisions of section 61 of the DM Act. Any criminal history which reveals a conviction within the last 10 years of a serious offence will automatically make you ineligible for a licence. As required under the DM Act, any criminal history record and, if required, any fingerprint specimen, will be destroyed as soon as practicable after the Commissioner of Police has reported to the DPI&F.

After receiving advice from the Queensland Police Service, the Director-General of DPI&F or his or her nominated delegate will consider the information provided by the QPS and the information provided in your application, and assess your suitability and eligibility to be granted a licence.

An officer of DPI&F will conduct interviews with referees nominated by the applicant and the applicant's close associates*, or, if the applicant is a corporation, its executive officers and close associates, to assess the good repute of all of these persons.

DPI&F will also carry out appropriate bankruptcy and liquidation checks on applicants to verify the applicant's claims on the application form that they are neither bankrupt nor their corporation in receivership or liquidation as the case may be.

The Director-General or his or her nominated delegate will make the final decision whether or not to grant a licence.

You will be advised in writing of the outcome of your application. Successful applicants will be sent their licence/s, which will be valid for a term of not more than 3 years from the date of issue. There may be conditions attached to the issuing of a licence. Any such conditions will be in addition to conditions contained in section 64 of the DM Act and the Regulation.

top of page arrow If your licence application is refused you will be sent an information notice outlining the decision and the reasons for the decision.


Licence application fees and charges ( as at Nov 2007)

Licence application fees and charges (inclusive of GST) are as follows:

* Licence application fee: $334.00 per licence (section 28 of the Regulation),
* National criminal history check fee: $23.10 per applicant, per close associate or if a corporation, per executive officer

Monies received for licence application fees and charges are non-refundable. If the Commissioner of Police requires applicants, or, if the applicant is a corporation, its executive officers, to have their fingerprints taken by a police officer for the purpose of searching the national fingerprint database, the cost for this service must be incurred by the applicant.


Compliance monitoring fees and charges

Participation in the industrial cannabis industry will be based on a user-pays principle. Licence holders must pay the reasonable costs of compliance monitoring activities performed under the licence, including any laboratory analysis necessary to determine the concentration of THC in the leaves and flowering heads of cannabis plants in the licence holder's possession. Licence-holders should expect to have their crops analysed for THC concentration. Where more than one variety of cannabis is grown, license-holders should expect to have each variety analysed for THC concentration. The cost of inspections will be based on the time taken to conduct the inspection, as well as the travelling time of the inspector. It would therefore be prudent for growers to make provision for an amount of $1,000 as a minimum in their annual commercial hemp production budgets to cover these inspection and analytical costs. Where repeat inspections are necessary due to non-compliant behaviour, the licensee will be required to pay the full cost of these additional checks.


Licence renewaltop of page arrow

A licensee may apply for renewal of their licence upon application to the Director-General of DPI&F prior to the expiry date for the licence. An application for renewal must be made on the approved form and be accompanied by the prescribed renewal fee of $133:60 (section 28 of the Regulation).


Information on growing

In accordance with section 8A of the DM Act, it is an offence to publish instructions, or possess a document containing instructions, about the way to produce a dangerous drug (which includes Cannabis sativa). Section 8A(2) however, provides a defence to such a charge in relation to the production of cannabis as a commercial fibre or seed crop, where a person can prove that the person published the instructions, or possessed the document containing the instructions, for the express purpose of commercial production of industrial cannabis. Information can be sourced from relevant industry or research groups (see attached list), the Internet, industry publications, journal articles and books.


Markets and processing

The growing of industrial hemp commercially opens windows of opportunity to produce a valuable fibre and grain source for a wide range of products including geo-textiles, building materials, stock food and animal bedding.

Despite the potential of the industrial hemp industry, grower licence applicants should thoughtfully weigh up the pros and cons of entering into production before applying for a licence, because the industry is very much in its infancy. Growing the crop may well be the easy part of the exercise. However, unless a market for the crop can be established, production could prove futile. Having established a market for your crop you should ensure that the necessary infrastructure is available to meet any processing requirements.


Seed supplies

Prior to making application for a grower licence, it is advisable that you ensure that seed supplies are available for the type of crop you wish to produce, and the climate in your growing region.

For example, although seed of temperate varieties can be sourced from Australian and foreign seed suppliers, agronomic trials in Queensland have shown that these varieties are not optimal for fibre production in Queensland's climatic conditions. Temperate varieties have a propensity to flower too early in summer to produce an economically viable yield of stems. Subtropical or tropical varieties of industrial hemp with a low concentration of THC are not yet widely available. For this reason, it is expected that a major focus on plant breeding over the next few years will be to develop suitable varieties for fibre production under Queensland conditions.

Nevertheless, temperate varieties may be suitable for grain production.

Contact details of possible Australian seed suppliers are presented on the last page of these guidelines.

Licensees wishing to acquire cannabis seed from overseas will need to comply with Commonwealth Government importation protocols. Information can be found on the Australian Quarantine Inspection Services (AQIS) website.


Inspectors

Inspectors appointed under the DM Act by DPI&F (division 11 of the DM Act) will monitor and inspect the activities of licence holders in accordance with certain powers (division 12 of the DM Act) to ensure compliance with the DM Act and Regulation. In undertaking these duties, inspectors may ask for documentation, check records, and take plant samples for THC analysis (section 101, DM Act). Inspectors also have the power to ask a licence holder for assistance, including, for example, to produce a document or to give information (section 102, DM Act). The conditions under which inspectors are authorised to operate are provided in the Regulation under division 5 and schedule 7(3).


Other industry participants

As well as licence holders, other participants in the industrial hemp industry are provided for in the DM Act and must abide by conditions set out in the Regulation. These participants include:
Carriers

In accordance with section 12 of the Regulation, carriers engaged or employed by a category 1 or category 2 researcher, a grower, a DPI&F researcher, an inspector, or a seed supplier are authorised to transport industrial cannabis plants or seed, class A or class B research cannabis or processed cannabis ('consigned cannabis').
DPI&F researchers (currently listed in the legislation as 'DPI researchers')

Employees of DPI&F conducting plant breeding research on Cannabis sativa must be authorised by the Director-General of DPI&F to do so. Conditions apply. (See sections 15, 16, 17, and schedules 7(2) and 9 of the Regulation).
Seed suppliers

To be recognised as an industrial cannabis seed supplier, application in writing must be made to the Director-General of DPI&F. To be recognised, the business must have a current recognised quality assurance program that conforms to an industry standard or code of practice, and must be a member of the Queensland Seed Industry Association or a similar organisation in another State. Conditions apply. (See sections 20, 21, 27, and schedules 7(4) and 9 of the Regulation).
Denaturers

In accordance with section 22 of the Regulation, the owner or operator of a facility which undertakes the processing of industrial cannabis seeds by cracking, de-hulling, heating, or treating in such a way that prevents seed germination is known as a "denaturer", and is permitted to possess industrial cannabis seed for this purpose. The 'denaturer' is then permitted to supply denatured seed to a person who is authorised to possess processed cannabis. Denatured seed would be used in manufacturing seed or oil products. The conditions which apply to denaturers are given in schedule 7(1) of the Regulation.
Manufacturers

In accordance with section 23 of the Regulation, the owner or operator of a facility which uses industrial cannabis for or in manufacturing a product for wholesale or retail sale is permitted to possess processed cannabis.
Analysts

To conduct analysis of cannabis to determine its THC concentration a person must hold an approval, granted under the Health (Drugs and Poisons) Regulation 1996. The analyst can only analyse cannabis plant material in a laboratory whose functions and operations are accredited by the National Association of Testing Authorities, Australia for technical competence to undertake drug analysis. (See section 24 and schedules 7(5) and 9 of the Regulation).
Family members of licensees

In accordance with section 25 of the Regulation, immediate family members of a person holding a grower licence are authorised to help the grower perform functions associated with the growing and harvesting of industrial hemp.
Employees of authorised persons

In accordance with section 26 of the Regulation, an employee, (which includes an agent) of a licence holder is authorised to perform activities associated with those of the licence holder. top of page arrow


Industrial hemp contacts
Agronomic and industry information

Ecofibre Industries Ltd
230 Nelson Street
TOOWOOMBA QLD 4350
Ph (07) 4630 2166; Phil Warner -mobile 0412 162 030
Email: info@ecofibre.com.au Website Ecofibre Industries Limited - Welcome to our web site


Agri-fibre Industries Pty Ltd
44 Jealous Street
BUNDABERG QLD 4670
CEO: Jim Hall -mobile 0427 577 280
Email: jhjhall@hotkey.net.au Website: AFI
Grower networks

Total Hemp Industries North Queensland (THINQ) - [Organic Hemp Growers Network]
PO Box 338
RAVENSHOE QLD 4888
Phone: (07) 4097 6191 (Susanna Wilkerson)
Email: savanah@ledanet.com.au
Seed supply informationtop of page arrow

Ecofibre Industries Ltd
230 Nelson Street
TOOWOOMBA QLD 4350
Ph (07) 4630 2166; Phil Warner -mobile 0412 162 030
Email: info@ecofibre.com.au Website Ecofibre Industries Limited - Welcome to our web site


Agri-fibre Industries Pty Ltd
44 Jealous Street
BUNDABERG QLD 4670
CEO: Jim Hall -mobile 0427 577 280
Email: jhjhall@hotkey.net.au Website: AFI
 
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