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Hemp Processing FAQs
Industrial Hemp Processor-Handler Application
I want to sell industrial hemp. What do I do?
If you grow hemp and want to sell harvested hemp to a licensed hemp or marijuana processor, you may do so under your grower registration.
If you are intending to sell an already processed or finished industrial hemp product, you are required to obtain a processor-handler license. That license is described in the Industrial Hemp Research and Development Act, Public Act 547 of 2014, as amended, and requires any person who is processing, handling, brokering, or marketing industrial hemp to be licensed as a processor-handler.
Please note, depending on the industrial hemp product you intend to sell, there may be additional requirements for you to follow. Visit MDARD's hemp resources page to learn about requirements concerning human food and beverage, labeling, weights, and measures, and more.
Is this license required for retailers who do not have a physical location in Michigan?Yes. While Public Act 547 of 2014, as amended, requires licensing for only in-state processing, handling, and brokering sites, businesses performing marketing activities must be licensed whether in-state or out-of-state. This applies to both physical and online sales activities.
My Processor-Handler license expired November 30, 2021, and I have not been able to submit a renewal application yet. Am I in violation?
To renew your expired processor-handler license, you are required to submit your completed renewal application, along with the license renewal fee, and all required documentation. Once all information is received and confirmed to be correct, your license will be issued.
It is always best if renewal paperwork is received by the department as one complete packet. Doing so will result in the most efficient and timely processing of your paperwork. If required elements do come in separately, they will still be processed, but in the order received. Remember, your processor-handler license will not be issued until all required elements are submitted and processed. Submitting a partial renewal application will not expedite license issuance.
Since your processor-handler license is now expired, processing, handling, brokering, or marketing industrial hemp without this license is a violation of the state's Industrial Hemp Research and Development Act.
Can I use one check to pay for my hemp Grower Registration and hemp Processor-Handler license?No, you’ll need to pay with separate checks as these application types are not processed by the same agency.
Do companies need liability insurance to obtain a Processor-Handler License?No.
If a wholesaler, distributor, or retailer wishes to sell topical lotions or tinctures with CBD (and less than 0.3% THC with no health claims, nutritional/caloric values), do they have to possess a processor-handler license? Do such products need to be registered?Michigan's Industrial Hemp Research and Development Act, PA 547 of 2014, as amended, requires any person who is marketing industrial hemp in Michigan to be licensed as a processor-handler. This is an annual license running from December 1 through November 30, and the fee is $1,350. Hemp-derived topical lotions and tinctures with a THC concentration of 0.3% or less may lawfully be marketed and sold in Michigan with this license. Michigan does not require hemp products be registered.
I run a "hemp derived extraction" company, and we produce different grades of oils and powders that we sell as ingredients to product manufacturers. What do we need to do to sell our ingredients to product manufacturers that sell to Michigan dispensaries?Michigan's Industrial Hemp Research and Development Act, PA 547 of 2014, as amended, requires any person who is marketing industrial hemp in Michigan to be licensed as a processor-handler. This is an annual license running from December 1 through November 30, and the fee is $1,350. If you or your product manufacturers are selling or marketing industrial hemp, including already processed forms of hemp oils and powders, to Michigan dispensaries, a processor-handler license is required for all that are doing so. Apply for the processor-handler license, found at Michigan.gov/HempProcessing under the "Forms" tab.
My business "cleans" hemp seed for a registered industrial hemp grower. Do I need a processor-handler license?
A seed cleaner is involved in part of the process of converting raw hemp to a marketable form and would therefore need the processor-handler license.
Also note, the business receiving the cleaned seeds is also involved in the processing aspect and would require a processor-handler license.
My business is developing an in-field THC testing kit, and we will collect hemp samples to test the efficacy of the kit. Do we need a processor-handler licenser?
You will not need the license for sampling and testing alone. However, if your business is involved in any of the following activities defined in PA 547 of 2014, as amended, a license would be required:
• Processing - Converting raw industrial hemp into a marketable form.
• Handling - Possessing, storing, or transporting industrial hemp on premises owned, operated, or controlled by a registered grower or a licensed processor-handler.
• Broker - Engaging or participating in the marketing of industrial hemp by acting as an intermediary or negotiator between prospective buyers and sellers.
• Marketing - Promoting or selling industrial hemp or an industrial hemp commodity or product, including but not limited to, efforts to advertise and gather information about the needs or preferences of potential consumers and suppliers.
I am a licensed hemp processor and assume I need to record weight of incoming hemp shipments and the weight of products that we produce from hemp. What are the recordkeeping requirements?Requirements for processing hemp in Michigan can be found in the Industrial Hemp Research and Development Act, PA 547 of 2014, as amended. The responsibilities for hemp processors are primarily found in Section 7 and 11 of this law. Aside from the licensing application documents required in Section 7, there currently are no recordkeeping requirements for hemp processor-handlers. This will likely change in when this Act is updated.
Am I able to use another hemp processor's product (for example, CBD isolate) to create my own hemp product to sell?
You will need a processor-handler license to manufacture and/or sell a hemp product. In addition, processor law does not include any requirements about utilizing another manufacturer's product in creating your own. However, you should take some common-sense steps and consider speaking with an attorney to advise you. Some questions to consider:
• Do you need a manufacturing contract with the manufacturer of the CBD oil you intend to use? You're taking their product and benefitting from it - again, a question for an attorney as this is out of CRA's regulatory authority.
• Is the lab conducting the testing have any accreditations?
• If the product is from out of state, has the lab and the product met that state's requirements for licensure, lab accreditation, and testing?
• Take a close look at the Certificate of Analysis (COA) to verify it is in fact for the product you intend to buy, and not some other stage of the process (for example, a COA from the hemp crop pre-harvest).
Check CRA's website periodically as PA 547 of 2014, as amended, may be updated, and there may be additional requirements such as labeling for hemp products.
I have questions about my Grower’s License who do I contact?
Contact the Michigan Department of Agriculture and Rural Development (MDARD):
• Phone Number: 800-292-3939
• Email: MDARD-IndustrialHemp@Michigan.gov
• Website links:
o Michigan.gov/IndustrialHemp (main page)
o Michigan.gov/HempLaws (for laws and compliance assistance documents)