SAN CARLOS APACHE TRIBE OF ARIZONA 

HEMP PLAN 

Enacted May 18, 2020 

By Resolution No. MY-20-071 

Section 14.1. Short Title. 

This document may be cited as the “Hemp Plan” or the “Plan.” 

Section 14.2. Authority 

This Hemp Plan of the San Carlos Apache Tribe of Arizona is authorized under the inherent civil, 

legislative and regulatory authority, and enacted by the San Carlos Council, pursuant to its 

authority under the Amended Constitution and Bylaws of the San Carlos Apache Tribe of Arizona 

(1954) and the inherent sovereignty possessed by the San Carlos Apache Tribe. 

Section 14.3. Findings and Purpose. 

The San Carlos Apache Tribe hereby finds and declares that: 

(a) The United States recognizes Indian tribes as unique nations with sovereignty 

over their members and territories. 

(b) The Tribe’s Amended Constitution and Bylaws authorizes the San Carlos 

Council, the governing body of the Tribe, to engage in business activities which promote the 

economic well-being of the Tribe and its members. 

(c) Hemp is a strain of Cannabis that has grown naturally in North America. It 

predates the foundation of the United States of America and continues to grow in thewild. 

(d) Hemp was historically utilized for a variety of products and functions including 

paper, cloth, and rope, but its uses have greatly expanded, in more recent times. 

(e) The cultivation of Hemp was a staple of American agriculture until it was 

outlawed through state law, the Marijuana Tax Act in the 1930’s, and the ControlledSubstances 

Act of 1970, 21 U.S.C. § 801 et seq. (“Controlled Substances Act”), because Hemp is derived 

from the same plant as Marijuana. 

(f) Prior to the 2018 amendments to the Controlled Substances Act, contained in the 

Agriculture Improvement Act of 2018 (the “2018 Farm Bill”), the Controlled Substances Act 

classified Hemp as a Schedule 1 drug and prohibited any possession or use of Hemp except in 

the course of federally approved research projects. The Controlled Substances Act also made it 

unlawful for any person to cultivate, manufacture, distribute, dispense, or possess (with intentto 

1 
 

 

 

 

 

 

 

 

manufacture) Hemp. 

(g) The Agriculture Improvement Act of 2018, also amended the Agricultural 

Marketing Act of 1946 (7 U.S.C. § 1621 et seq.) by adding Subtitle G entitled “Hemp 

Production,” which now allows the Tribe’s controlled cultivation of Hemp in accordance with 

that Act, and a Tribe’s Plan approved by the Secretary ofAgriculture. 

(h) The Tribe has decided to open specific lands within its Reservation to the 

cultivation, Processing, and distribution of Hemp by ratifying this Plan and submitting it to the 

United States Department of Agriculture for approval. 

Section 14.4. Scope of the Tribal Plan. 

(a) This Plan shall govern the cultivation, processing, and distribution of Hemp on 

lands within the exterior boundaries of the Tribe’s Reservation, as required in Subsection G of 

the 2018 Farm Bill and will allow the Tribe to exercise its inherent sovereignty over its Tribal 

territory, exercise its inherent right to stimulate its economy, create jobs, develop and operate 

Tribal businesses, create an additional source of revenue for the Tribe’s programs and 

operations and provide funding for its members and the community. 

(b) The Tribe’s regulation of the possession, cultivation, processing and distribution 

of Hemp on lands within the exterior boundaries of the San Carlos Apache Indian Reservation 

is necessary to protect the health, security, and general welfare of the Tribe’s community. In 

order to further these goals, the Tribe has adopted this Plan which shall be liberally construed 

to fulfill the purposes for which it has beenadopted. 

(c) Nothing in this Plan shall be deemed to be in positive conflict with theControlled 

Substances Act. 

(d) The regulations and penalties imposed by this Plan extend to any person within 

the exterior boundaries of the Tribe’s Reservation, whether Licensed or not. 

Section 14.5. Sovereign Immunity. 

Nothing in this Plan shall be construed to limit the authority of the Tribe, the San Carlos Apache 

Tribal Court, or the San Carlos Apache Police, and nothing herein shall limit or constitute a 

waiver of the sovereign immunity of the Tribe or its officers, instrumentalities, employees, 

elected officials, and agents, or authorize any form a prospective waiver of such sovereign 

immunity. 

Section 14.6. Exemption from Prosecution for Certain Acts. 

No employee or Key Participant of a Hemp Business or Licensed Producer or Processor shall be 

subject to prosecution or civil penalty in the Tribal Court for the cultivation, production, or 

distribution of Hemp when acting in accordance with this Plan and with applicable Tribal and 

federal law. 

Section 14.7. Effective Date. 

2 
 

 

 

 

 

 

 

 

 

This Plan shall be effective upon the ratification by the San Carlos Council and approval by the 

Secretary of the United States Department of Agriculture or his designee. 

Section 14.8. Savings Clause. 

In the event that any phrase, provision, part, paragraph, subsection, or section of this Plan is 

found by a court of competent jurisdiction to violate the Constitution or laws of the Tribe or any 

federal law, such phrase, provision, part, paragraph, subsection or section shall be considered to 

stand alone and be deleted from this Plan. The entirety of the balance of this Plan shall remain in 

full and binding force and effect. 

Section 14.9. Definitions. 

Within this Plan, the following definitions apply: 

(a) “Acceptable Hemp THC Level” means when a laboratory tests a sample, it must 

report the delta-9 tetrahydrocannabinol content concentration level on a dry weight basis and the 

measurement of uncertainty. The acceptable hemp THC level for the purpose of compliance with 

the requirements of this Hemp Plan is when the application of the measurement of uncertainty to 

the reported delta-9 tetrahydrocannabinol content concentration level on a dry weight basis 

produces a distribution or range that includes 0.3% or less. For example, if the reported delta-9 

tetrahydrocannabinol content concentration level on a dry weight basis is 0.35% and the 

measurement of uncertainty is +/-0.06%, the measured delta-9 tetrahydrocannabinol content 

concentration level on a dry weight basis for this sample ranges from 0.29% to 0.41%. Because 

0.3% is within the distribution or range, the sample is within the acceptable hemp THC level for 

the purpose of plan compliance. This definition of “Acceptable Hemp THC Level” affects 

neither the statutory definition of hemp, 7 U.S.C. 1639o(1), in the 2018 Farm Bill nor the 

definition of “marihuana,” 21 U.S.C. 802(16), in the CSA. 

(b) “Act” means the Agricultural Marketing Act of 1946 as amended. 

(c) “Agricultural Marketing Service” or “AMS” refers to the Agricultural Marketing 

Service of the U.S. Department of Agriculture and is the agency the Secretary of Agriculture has 

charged with the responsibility to oversee the administration of this newProgram. 

(d) “Cannabis” means a genus of flowering plants in the family Cannabaceae of 

which Cannabis sativa is a species, and Cannabis indica and Cannabis ruderalis are 

subspecies thereof. Cannabis refers to any form of the plant in which the Delta-9 

Tetrahydrocannabinol concentration on a Dry Weight Basis has not been determined. 

(e) “CBD” means cannabidiol. 

(f) “Conviction” means any plea of guilty or nolo contendere, or any finding of 

guilt, except when the finding of guilt is subsequently overturned on appeal, pardoned, or 

expunged. For purposes of this Plan a Conviction is expunged when the Conviction is 

removed from the individual’s criminal history report and there are no legal disabilities or 

restrictions associated with the expunged Conviction, other than the fact that the Conviction 

may be used for sentencing purposes for subsequent Convictions. When an individual is 

3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

allowed to withdraw an original plea of guilty or nolo contender and enter a plea of not guilty 

and the case is subsequently dismissed, the individual is no longer considered to have a 

Conviction for purposes of this Plan. 

(g) “Council” means the duly elected San Carlos Council, which is the 

governing body of the Tribe. 

(h) “Criminal History Report” means the individual’s Federal Bureau of 

Investigation’s Identity HistorySummary. 

(i) “Culpable Mental State Greater Than Negligence” means to act 

intentionally, knowingly, willfully, recklessly, or with criminal negligence. 

(j) “DEA” means the United States Drug Enforcement Administration. 

(k) “Decarboxylated” means the completion of the chemical reaction that converts 

THC-acid into delta-9 Tetrahydrocannabinol. The decarboxylated value is also calculated using 

a conversion formula that sums delta-9 Tetrahydrocannabinol and eighty-seven and seven 

tenths (87.7) percent of THC-acid. 

(l) “Delta-9 Tetrahydrocannabinol” or “THC” means delta-9-

tetrahydrocannabinol concentration (the primary intoxicating component of Cannabis). For 

purposes of this Plan, Delta-9 Tetrahydrocannabinol and THC are interchangeable. 

(m) “Dry Weight Basis” means the ratio of the amount of moisture in a sample to 

the amount of dry solid in a sample. In the case of Cannabis, a percentage of THC on a Dry 

Weight Basis means the percentage of THC, by weight in a Cannabis item (plant, extract or 

other derivative) after excluding moisture from the item. 

(n) “FSA” means the Farm Service Agency of the U.S. Department ofAgriculture. 

(o) “Gas Chromatography” or “GC” means a type of chromatography in analytical 

chemistry used to separate, identify, and quantify each component in a mixture. GC relies on 

heat for separating and analyzing compounds that can be vaporized without decomposition. 

(p) “Geospatial Location” means a location designated through a global system 

of navigational satellites used to determine the precise ground position of a place or object. 

(q) “Financial Interest” means a person or entity that has more than a five (5) 

percent interest, share, or ownership in an operation(s). 

(r) "GPS" means Global Positioning System. 

(s) “Handle” means to harvest, transport, or store Hemp plants or Hemp plant parts 

prior to the delivery of such plants or plant parts for further processing. Handle also includes 

the harvesting of Cannabis plants that are not Hemp for purposes of chemical analysis and 

disposal of such plants. 

(t) “Handler” means a person or entity that handles Hemp. 

4 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(u) “HCO” means the Tribe’s Hemp Control Officer as established by this Plan. 

The term may include employees, agents, and designees of the HCO. 

(v) “Hemp” means the plant Cannabis sativa L. and any part of that plant, including 

the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of 

isomers, whether growing or not, with a Delta-9 Tetrahydrocannabinol concentration of not 

more than 0.3 percent on a Dry Weight Basis. 

(w) “Hemp Business” means a growing facility, cultivating facility, 

transportation company, Processing facility, distribution facility, or any combination 

thereof. 

(x) “Hemp Products” means products derived from, or made by processing 

Hemp plants or plant parts. 

(y) “High-Performance Liquid Chromatography” or “HPLC”. A type of 

chromatography technique in analytical chemistry used to separate, identify, and quantify 

each component in a mixture. HPLC relies on pumps to pass a pressurized liquid solvent 

containing the sample mixture through a column filled with a solid adsorbent material to 

separate and analyze compounds. 

(z) “Indian Country” means those lands which meet the definition contained in 18 

U.S.C. § 1151. 

(aa) “Information Sharing System” means the database mandated under the Act 

which allows USDA to share information collected under State, Tribal and USDA plans with 

Federal, State, Tribal, and local lawenforcement. 

(bb) “Key Participants” means a person or entity that has a director indirect 

financial interest in the handling. Key Participant does not include non-executive managers 

such as farm, field, and shift managers. 

(cc) “Law Enforcement Agency” means the San Carlos Apache PoliceDepartment, 

DEA, or other federal Law Enforcement Agency or drug suppression unit but does not 

include any state law enforcement agency. 

(dd) “License” means a valid License issued by the Tribe to handle or 

market Hemp. 

(ee) “License Agreement” means an agreement between the Tribe and the 

person or entity licensed to handle or market Hemp. 

(ff) “Lot” means a contiguous area in a field, greenhouse, or indoor 

growing structure containing the same Variety or strain of Hemp throughout the 

area. 

(gg) “Marijuana” means all Cannabis that tests as having a concentration levelof 

THC on a Dry Weight Basis of higher than 0.3 percent. 

(hh) “Measurement of Uncertainty” means the parameter, associated with theresults 

of a measurement that characterizes the dispersion of the values that could reasonably be 

5 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

attributed to the particular quantity subject to the measurement. 

(ii) “Negligence” means a failure to exercise the level of care that a reasonably 

prudent person would exercise in complying with this Plan. 

(jj) “Nonviable Seed” means a seed that has been crushed, dehulled, or 

otherwise rendered to have a zero percent germination rate. 

(kk) “Ordinance” means the Council’s enactment to authorize, implement 

or enforce this Plan. 

(ll) “Phytocannabinoid.” Cannabinoid chemical compounds found in the 

cannabis plant, two of which are Delta-9 tetrahydrocannabinol (delta-9 THC) and cannabidiol 

(CBD). 

(mm) “Pesticide” means any substance or mixture of substances intended to: 

(1) Prevent, destroy, control, repel, attract, or mitigate any pest. 

(2) Be used as a plant regulator, defoliant, or desiccant. 

(3) Be used as a spray adjuvant, once they have been mixed with a 

U.S. Environmental Protection Agency registered product. 

(4) Any substance or mixture classified as a pesticide by the Tribe or 

any agent of the Federal Government. 

(nn) “Permit” means a certificate issued by the Tribe that authorizes a 

Licensed Producer to plant, grow, or store Hemp, any part of Hemp, or Hemp related 

products in a specifically described location. 

(oo) “Prohibited Variety” means a Variety or strain of Cannabis excluded bythis 

Plan or regulations promulgated pursuant thereto. 

(pp) “Propagule” means a plant or plant part that can be utilized to grow a newHemp 

plant. 

(qq) “Site” means a location designated through a global system of navigational 

satellites used to determine the precise ground position of a place or object. 

(rr) “Tribal Court” means the courts of the San Carlos Apache Tribe as established 

pursuant to the Tribe Constitution and the Tribe’s Law and Order Code. 

(ss) “Tribe” means the federally recognized San Carlos Apache Tribe recognized as 

possessing powers of self-governance. 

(tt) “Tribe’s jurisdiction” means the Tribe’s authority over all lands within the 

exterior boundaries of the San Carlos Apache Indian Reservation that are within the civil and 

criminal jurisdiction of the Tribe as that jurisdiction is defined in the Tribe’s Constitution and 

laws and applicable federal law. 

6 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(uu) “Tribe’s Police” or “Tribe’s Law Enforcement” means the San Carlos 

Apache Tribe’s Police Department. 

(vv) “USDA” means the United States Department of Agriculture. 

(ww) “Variety” or “Strain” means a subdivision of a species that is: 

(1) Uniform, in the sense that the variations in essential anddistinctive 

characteristics are describable; 

(2) Stable, in the sense that the variety will remain unchanged in itsessential 

and distinctive characteristics and its uniformity if reproduced or 

reconstituted as required by the different categories of varieties;and 

(3) Distinct, in the sense that the variety can be differentiated by one (1) or 

more identifiable morphological, physiological, other characteristicsfrom 

all other publicly known varieties, or other characteristics from all other 

publicly known varieties. 

(xx) “Volunteer Cannabis Plant” means any Cannabis plant that grows of its own 

accord from seeds or roots in the years following an intentionally planted Cannabis crop and is 

not intentionally planted. 

Section 14.10. Exemption from Prosecution for Certain Acts. 

No employee of a Licensed Producer or Licensed Processor shall be subject to prosecution or 

civil penalty in the Tribal Court for the cultivation, production, transportation, Handling or 

distribution of Hemp in accordance with this Plan, applicable laws and Regulations of the Tribe, 

and applicable federal law. 

Section 14.11. Hemp Regulations. 

The Tribe’s policies and procedures related to the regulation of Hemp may further the purposes 

of this Plan. The Council or its designee, shall approve all policies, procedures, and forms, 

including: 

(a) Licensing of applicants 

(b) Permitting locations where Hemp is authorized 

(c) Reporting and recordkeeping 

(d) Agreements between growers and Processors 

(e) Procedures for sampling, THC testing, and post-testing actions 

(f) Pre-harvest and post-harvest retesting 

(g) Procedures for destruction of Hemp 

7 
 

 

(h) Pesticide use 

(i) Prohibited products or activities 

(j) Penalties 

(k) Remedies 

8 
 

 

 

 

 

 

 

 

 

 

 

 

 

HEMP CONTROL OFFICER 

Section 14.12. Position Establishment; Attributes. 

The Tribe hereby establishes the HCO as an instrumentality of the Tribe. The HCO shall 

function as an arm of the Tribe and shall have the power and responsibility to enforce the 

provisions of this Plan. The HCO shall be under the supervision and direction of the San 

Carlos Council and the daily supervision of the Tribe’s Chairman. 

Section 14.13. Duration. 

The HCO shall exist until replaced or abolished by the San Carlos Council. 

Section 14.14. Qualifications. 

(a) The HCO shall be one person appointed by the San Carlos Council followinga 

comprehensive background check and must: 

(1) not have any felony or drug related misdemeanor convictions in the last 

ten years in any Tribal, state, or federal jurisdictions, and 

(2) not have a financial interest in any Hemp operation. 

(b) The following persons are ineligible to serve as HCO: 

(1) employees of any Hemp operation, 

(2) Hemp contractors (including any principal of a management or other 

contracting company), or 

(3) persons directly related to or sharing a residence with any of theabove. 

(c) The Tribe may, in the future, authorize the HCO to hire support staff, which must 

meet the same qualifications detailed in (a) and (b) above. 

Section 14.15. Removal. 

The San Carlos Council may remove the HCO for the following reasons: Conviction of a felony 

or any drug offense, neglect of duty, malfeasance in office, misfeasance, misconduct in office, 

any conduct that threatens the honesty or integrity of the position or otherwise violates the letter 

or intent of this Plan or other applicable Tribal or federal law, or for other good cause shown. 

Section 14.16. Vacancies. 

The San Carlos Council shall appoint a new HCO when the position becomes vacant. 

Section 14.17. Training, Equipment, Staff. 

The Tribe will provide or arrange for the HCO to have adequate training, equipment, staff, and 

compensation to fully carry out its duties. 

9 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 14.18. Powers and Duties. 

The HCO shall have the power and responsibility to enforce the provisions of this Plan. The 

HCO shall: 

(a) Issue Licenses and rescind Licenses according to this Plan. 

(b) Propose amendments to this Plan when necessary. 

(c) Maintain a list of sites approved for Licenses permits within the exterior 

boundaries of Tribe’s Reservation. 

(d) Monitor Hemp imports, including seeds, plants, and plant parts, 

cultivation, Handling, and all otherHemp- related operations and activities. This 

includes performing Tribal testing and inspections, including random inspections. 

(e) Ensure annual inspections of a random sites to verify that Hemp is not being 

handled in violation of this Plan. 

(f) Maintain records related to Hemp activities within the exterior boundaries of the 

Tribe’s Reservation and submit all required reports to the San Carlos Council, law enforcement, 

and theUSDA. 

(g) Propose one or more contracts with testing labs, background check companies, 

and other third-party contractors to meet the requirements of this Plan. 

(h) Ensure compliance with this Plan in cooperation with USDA, the FSA, and 

federal and Tribal law enforcement. 

(i) Investigate any suspicion of wrongdoing associated with any Hemp activities 

and report any potential criminal violations to applicable law enforcement. 

(j) Supervise the destruction of all Hemp crops that are required to be destroyed 

pursuant to the provisions of this Plan. 

(k) Comply with all federal and Tribal reporting, record-keeping, and USDA audit 

requirements. 

(l) Provide written notice of adverse decisions to applicants and Licensees. 

(m) Collect necessary relevant fees and/or penalties 

(n) Supervise HCO staff to ensure compliance with this Plan, 

Section 14.19. Limitation of HCO Powers. 

(a) The HCO shall not regulate the Tribe or any of the Tribe’s entities, except with 

respect to their activities involving the handling or marketing of Hemp. 

(b) The HCO shall not regulate the use of any the surplus funds generated fromthe 

10 
 

 

 

 

 

 

 

Tribe’s handling of Hemp once the net revenues have been distributed to the Tribe or to an 

entity of the Tribe utilizing thosefunds. 

(c) The HCO shall not require members of the San Carlos Council to obtain an 

employee License. 

Section 14.20. Compensation of the HCO. 

The HCO shall be paid in the amount and manner determined by the San Carlos Council. 

Section 14.21. Sovereign Immunity of HCO. 

When acting under the color of his or her authority, the HCO shall enjoy all of the privileges 

and immunities of the Tribe, except as specifically limited by this Plan, including immunity 

from suit. 

(a) The HCO shall have no authority to waive the sovereign immunity of theTribe, 

or any other entity of the Tribe. 

(b) Nothing in this Plan shall be deemed or construed to be a waiver of theHCO’s 

sovereign immunity from suit. 

(c) Notwithstanding any other provision herein, as an entity of the Tribe, the HCO’s 

immunity from suit shall at all times be deemed waived for actions against the HCO initiated by 

the San Carlos Council. 

11 
 

 

 

 

 

 

 

 

LICENSING APPLICATIONS 

Section 14.22. License Required to Handle Hemp. 

Any person who wishes to handle Hemp and any Key Participant in that activity within the 

exterior boundaries of the Tribe’s Reservation must possess a valid Tribal License to do so. 

Section 14.23. Licenses to be Issued and Regulated by the Tribe. 

The San Carlos Council shall determine the appropriate number of Hemp Licenses that will be 

issued each year. The Tribe or its designee shall adopt uniform licensing applications and a 

uniform process for approval or denial of Licenses. The HCO retains the discretion to issue or 

deny Licenses to any person or applicant in accordance with this Plan. Any person convicted of 

a felony related to a controlled substance under State or Federal or Tribal law before, on, or after 

the enactment of the 2018 Farm Billshall not be eligible for any type of tribal hemp license and 

is prohibited from producing hemp for 10 years following the date of conviction. An exception 

applies to a person who was lawfully growing hemp under the 2014 Farm Bill before December 

20, 2018, and whose conviction also occurred before that date. 

Section 14.24. Waiting Period. 

A person who has had a License terminated shall not be eligible to reapply to the HCO for a 

period of five (5) years from the date of termination. 

Section 14.25. Background checks. 

Applicants for a License and all of the Key Participants in their proposed activities must undergo 

a Criminal History Report as part of an application for licensing. The HCO or the San Carlos 

Council may require such other background checks as it deems necessary or appropriate. 

When a person or entity applies for a License, Key Participants must each submit to those 

relevant background checks. 

Section 14.26. Fees. 

The San Carlos Council shall set, and the HCO shall collect License application fees. Failure 

to pay the fees will result in the denial of an application. 

Section 14.27. Application Contents. 

Applications shall include at a minimum: 

(1) The applicant’s full name, residential address, telephone number, and 

email address, if an email address isavailable. 

(2) If the applicant represents a business entity, the full name of the business, 

the principal business location address, EIN number, the full name, title, 

and email address (if available) of each individual who will be a Key 

Participant in the venture for whom the entity is required to submit a 

12 
 

 

 

 

 

 

 

 

 

 

 

 

 

Criminal History Report. 

(3) Documentation showing either a valid tenancy or other legal interest in 

the proposed property including whether the property is being leased by 

the Bureau of Indian Affairs and who its beneficial owners are. 

(4) Street address, Location ID, legal description, if and when available, and, 

to the extent practicable, the Geospatial Location coordinates for each site 

where Hemp will be handled. 

(5) Information regarding any other Hemp growing location or Processing 

facility that is licensed in any other jurisdiction and a copy of the license(s). 

(6) A listing of all persons who have a direct or indirect involvement in the 

Hemp or Hemp related activities or who otherwise fall into the category of 

a Key Participant in the proposed activity. 

(7) Proof of Insurance that includes worker’s compensation insurance for any 

employees, and general liability insurance. 

(8) A business plan and operations plan that includes at a minimum the 

following, as applicable to the type of activity sought to belicensed: 

(i) The proposed acreage or indoor square footage to be used for the 

handling of Hemp. 

(ii) The type of activity proposed, and the information required shall 

be of the same type the Tribe requires for licensing any type of 

business within the exterior boundaries of the Tribe’s 

Reservation. 

13 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iii) A description of the type of facility proposed and the anticipated or 

actual number of employees. The name of the proposed Manager 

of the Facility. 

(iv) A security plan which shall include a general description of the 

security systems(s), fencing, and lighting plan showing the outside 

lighting, and current centrally alarmed and monitored security 

system service agreements. 

(v) A list of Pesticides, and other chemicals proposed for use. 

(vi) A description and plan of all equipment and methods that will be 

employed to stop any impact to adjacent uses, includingassurances 

that no odor will be detected from outside the Location. 

(vii) A plan for the disposal of Hemp, chemicals and related byproducts. 

(viii) A statement of previous farming experience. 

(ix) Planned source of seeds or Propagules. 

Section 14.28. Application Processing. 

(a) The HCO shall review the application for completeness and compliance with this 

Plan and applicable law of the Tribe. In so doing, the HCO shall pay special attention to the 

background check materials presented, the applicant’s relationship with the land, and whether the 

applicant has shown a willingness in the past to abide by the Tribe’s and Federallaw. 

(b) The HCO will then issue a conditional approval of the License application 

subject to the applicant meeting the additional requirements of this Plan and the Tribe’s law. 

(c) Any License Application that is missing required information shall be subjectto 

denial. 

(d) Any person who materially falsifies any information contained in anapplication 

shall be ineligible to participate in Hemp production under this Plan. 

(e) The HCO shall notify applicants by letter or email whether the application has 

been denied or conditionally approved. Upon conditional approval, the HCO shall assign 

each Licensee with a License or authorization identifier in a format prescribed byUSDA. 

14 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

LICENSE AGREEMENTS 

Section 14.29. License Agreement Required. 

An applicant shall not be Licensed until the applicant is finally approved and the applicant and 

the HCO have executed a Production or Processor/Handler License Agreement. 

Section 14.30. Agreement Contents. 

Any License Agreement shall contain at a minimum: 

(a) The Licensee’s full name, residential address, telephone number, andemail 

address, if an email address is available. 

(b) If the Licensee represents a business entity, the full name of the business, the 

principal business location address, the full name, title, and email address (if available) ofeach 

individual which will be a Key Participant in the venture for whom the entity is required to 

submit a Criminal History Report and agreement to advise the HCO when a Key Participant 

leaves of joins the licensee. 

(c) The agreement shall contain the Licensee’s consent to entry onto the Licensed site 

and to the inspection and sampling pursuant to this Plan of all premises where Hemp or other 

Cannabis plants or materials are located, or Licensed to be located, by the HCO, representatives 

of the HCO, law enforcement agencies, and USDA inspectors with or without cause, with or 

without advance notice. 

(d) The Licensee consents to forfeiture and destruction, without compensation, of: 

(1) Material found to have a measured THC content in excess of zero and 

three-tenths (0.3) percent on a Dry Weight Basis. 

(2) Hemp whether growing or not growing located in an area that isnot 

permitted by the Tribe. 

(3) Hemp whether growing or not growing not accounted for inrequired 

reporting to the HCO. 

(e) The Licensee agrees to apply for a separate Permit for each growing, Processing, 

Handling, Production and storage location, which shall include a legal description of the location, 

Geospatial Location (to the extent practicable), the Hemp seeds or Propagules to be used, or the 

activities to be conducted at the location and receive approval for each of those Permits prior to 

having Hemp on those premises. 

(f) The Licensee acknowledges that all Licensed Producers orProcessors/Handlers 

shall submit a Site Modification Request Form and obtain prior written approval from a 

representative of the HCO before implementing any change to the Licensed sites or Hemp 

Varieties or Strains stated in the LicenseAgreement. 

(g) Acknowledgement by the Licensee that Hemp shall not be grown, Processed, 

Handled, or stored in any location other than the location listed in the License Agreement or 

15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permit. 

(h) Agreement by the Licensee not to interplant Hemp with any other cropwithout 

express written permission from the HCO. 

(i) Acknowledgement by the Licensee that anyone applying Pesticides to Hempshall 

hold any required Pesticide License and apply Pesticides in accordance with Tribal or federal 

regulations. 

(j) Acknowledgement by the Licensee that the Licensee shall comply with 

restrictions established by the HCO limiting the movement, Handling, transportation 

or Processing of Hemp plants and plant parts. 

(k) Acknowledge that the risk of financial or other loss shall be borne solely bythe 

Licensed Producer and/or Processor. 

(l) Agreement that any time Hemp is in transit, a copy of the Producer and/or 

Processor Licensing Agreement shall be available for inspection upon the request of a 

representative of the HCO or a Law Enforcement Agency. Post cultivation the Hemp 

transported shall be accompanied by a copy of the report of the laboratory test results on the 

Hemp being transported. 

(m) Agreement that, upon request from a representative of the HCO or a Law 

Enforcement Agency, a Licensed Producer and/or Processor shall immediately produce a copy of 

his or her License Agreement for inspection. 

(n) Agreement to submit Planting Reports, Harvest/Destruction Reports, and 

Production Reports, and any other reports required by the HCO, the FSA or the USDA, to 

which the Producer and/or Processor has agreed, on or before the deadlines established in this 

Plan. 

(o) Agreement to scout and monitor adjacent unregistered fields for Volunteer 

Cannabis Plants and to destroy those Volunteer Cannabis Plants for three (3) years past the 

last date of planting reported to the HCO. 

(p) Agreement not to employ or to rent land to cultivate Hemp from any person 

who had a Tribal Hemp License revoked or denied for one (1) or both of the following 

reasons: 

(1) Failure to obtain an acceptable Criminal History Report; or 

(2) Failure to comply with an order from a representative of theHCO. 

(q) Agreement to notify the HCO of any Hemp-related interaction with law 

enforcement immediately by phone and to follow-up in writing within three (3) calendar 

daysof the occurrence. Agreement to notify the HCO of any theft of Cannabis materials, 

whether growing or not. 

(r) Agreement to pay all fees imposed by the Tribe. 

16 
 

 

 

 

 

(s) Failure to agree or comply with terms and conditions established in Producer 

licensing and/or Processor agreement shall constitute grounds for the withdraw ofconditional 

approval, suspension or termination of the License, an HCO report to law enforcement or the 

USDA, or other appropriate HCO or Council action. 

(t) Failure to agree and sign the Producer licensing and/or Processor agreement 

shall terminate conditional approval and a licensing agreement shall not beexecuted. 

(u) The signatures of the Tribe and Licensee(s). 

Section 14.31. Operating Fees. 

Licensees shall pay the Tribe and the HCO such fees and taxes as the Tribe may establish at the 

time and location as the San Carlos Council shall mandate. 

17 
 

 

 

 

 

 

 

PERMITS 

Section 14.32. Location Permits Required. 

A Permit is required for each location or site that Hemp is planted, grown, Handled, Processed, 

or stored. 

Section 14.33. Location Permits to be Issued and Regulated by the Tribe. 

The Tribe or its designee shall adopt a uniform location permitting application and approval or 

denial process of these Permits. These forms and processes shall be incorporated into the 

Tribe’s Hemp Regulations. The HCO retains the discretion to issue or deny Permits in 

accordance with this Plan and any of the Tribe’s laws or regulations. 

Section 14.34. Tribal License Required. 

Permits may only be issued to individuals and entities with a San Carlos Apache Tribe Hemp 

License. 

Section 14.35. Prohibited Locations. 

Permits may not be issued for the following sites or locations: 

(a) Any place that is not listed in the Licensee’s licensing agreement. 

(b) On property that is not leased or completely controlled by the Licensee for the 

Permit unless the HCO determines that the activity has been properly approved in compliance 

with Tribe and applicable federal law by the landholder(s). 

(c) On property leased from, or previously submitted in aLicense 

application by any person who is ineligible or was terminated or denied aLicense. 

Section 14.36. Co-Locating Permitted. 

Permits may be issued to Licensed Producers and Licensed Processors to co-locate at the same 

location. 

Section 14.37. Site Modifications. 

A Licensed Producer who elects to grow or process Hemp in a new location or store or Handle 

hemp at a site other than the sites specified by the legal description and geospatial location listed 

in the Producer and/or Processor Licensing Agreement and Permit shall submit a Site 

Modification Request Form, and obtain written approval from a representative of the HCO, prior 

to planting, Processing or storing at the proposed location. 

Section 14.38. Site Access. 

No person shall have an expectation of privacy with respect to any location or site that is 

permitted under this Plan. Licensees, whether present or not, shall allow representatives of 

18 
 

the HCO and Tribal and/or federal law enforcement agencies to enter the premises with or 

without cause and with or without advanced notice. 

Section 14.39. Fees. 

The Tribe may collect fees approved by the San Carlos Council that are reasonable to the 

processing of permit applications and site modifications. Non-payment of fees shall result in an 

application for a permit to be denied. 

19 
 

 

 

 

 

 

 

 

 

 

 

REPORTING AND RECORDKEEPING 

Section 14.40. Reporting Requirements of HCO. 

At a minimum, the HCO must collect and maintain records and report on the following: 

(a) Information about Handling and the location of storage site(s) shall be 

reported to the Tribe, the DEA, and other law enforcement agenciesthatrequest this 

information. 

(b) All applications for licenses, grants or denials of licenses, receipts offees, 

distribution of fees and revenues must be reported to the Tribe. 

(c) A quarterly report to the San Carlos Council summarizing the HCO’s official 

actions, activities, investigative reports, license suspensions or revocations, findings of 

Negligence or potentially criminal activities, and reports received from any HempBusiness. 

(d) Any and all report requested by USDA. 

Section 14.41. HCO to Submit Growing locations and License Information to United

States Secretary of Agriculture. 

By the first of each month, and not more than thirty (30) days after receiving the following 

information, the HCO shall provide it to the United States Secretary of Agriculture or the 

Secretary’s designee in a format that is compatible with USDA’s Information Sharing System 

whenever possible. Note—if the first of the month falls on a weekend or holiday, the report is 

due by the first business day following the due date: 

(a) For each new Licensee, under this Plan, the report shall include the full name of 

the individual; License identifier; business address; telephone number; email address (if 

available); the description of the site on which the Licensee will handle Hemp including, to the 

extent practicable, its geospatial location; and the scope of activity authorized; 

(b) For each Licensee that was included in a previous report and whose reported 

information has changed, the report shall include the previously reported information and the 

new information; 

(c) The status and number of each License; 

(d) The period covered by the report; 

(e) An indication that there were no changes during the current reporting cycle, if 

applicable. 

Section 14.42. HCO to Submit Hemp Disposal Report to the United States Department of 

Agriculture. 

(a) Monthly Reports: By the first of each month, and not more than thirty (30) days 

after receipt, the HCO shall provide to the United States Secretary of Agriculture or the 

20 
 

 

 

 

 

 

 

 

 

 

 

 

Secretary’s designee in a format that is compatible with USDA’s Information Sharing System 

whenever possible a report notifying USDA of any occurrence of non-conforming plants or plant 

parts and providing a disposal record of those plants and materials. This report shall include 

information regarding name and contact information for each Producer subject to a disposal 

during the Producer’s reporting period, and date disposal was completed. Note—If the first of 

the month falls on a weekend or holiday, the report is due by the first business day following the 

due date. 

(b) Immediate Reports: In addition to the monthly report, the HCO shall promptly 

notify the United State Secretary of Agriculture or the Secretary’s designee by certified mail or 

electronically of any occurrence of Cannabis plants or plant materials that do not meet the 

definition of Hemp in this Plan and attach the test results and records demonstrating the 

appropriate disposal of all of those plants and materials in the site from which the representative 

samples weretaken. 

Section 14.43. Planting Reports for Outdoor Plantings. 

A Licensed Producer shall submit to the HCO a complete and current Field Planting Report, 

within fifteen (15) days after every planting, including replanting, of seeds or Propagules in an 

outdoor location. Each Field Planting Report shall identify the: 

(a) Correct Variety of Hemp planted. 

(b) Field Location ID as listed in the License Agreement. 

(c) Primary intended use of the harvest for each planting. 

A Licensed Producer who does not plant Hemp in an approved outdoor site listed in the 

Producer License Agreement shall submit a Field Planting Report, on or before July 31 of that 

season, stating that Hemp has not and shall not be planted at that site. 

Section 14.44. Planting Reports for Indoor Plantings. 

(a) A Licensed Producer shall submit to the HCO a complete and current 

Greenhouse/Indoor Planting Report within fifteen (15) days after establishing plants at an indoor 

location. Each Greenhouse/Indoor Planting Report shall identify the: 

(1) Correct Variety of Hemp planted. 

(2) Greenhouse or indoor growing Location ID as listed in theLicense 

Agreement. 

(3) Primary intended use for the harvest of each planting. 

(4) In addition to the initial greenhouse/Indoor Planting Report, a Licensed 

Producer with an approved greenhouse or indoor growing site shall 

submit quarterly growing reports for each Location ID to the HCO, such 

Reports shall be due no later than March 31, June 30, September 30, and 

21 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31. 

Section 14.45. Establishing records with USDA Farm Service Agency 

(a) All Producers Licensed to Produce Hemp under this Plan shall report theirHemp 

crop acreage to the FSA and shall provide, at a minimum, the following information: 

(1) The street address and Location ID, if available, and, to the extent 

practicable, the Geospatial Location for each Lot where Hemp is 

permitted to be grown under this under this Plan and under the License 

and location Permits issued by the HCO. If more than one location is 

permitted for an individual License holder, such information shall be 

provided for all production sites; 

(2) Acreage dedicated to the production of Hemp, or indoor square 

footage dedicated to the production of Hemp; and 

(3) License and Permit identifier. 

Section 14.46. Annual Report. 

(a) The HCO shall submit an annual report to USDA. The report form shall be 

submitted by December 15 of each year and contain the information described in thissection: 

(1) Total planted acreage. 

(2) Total harvested acreage. 

(3) Total acreage disposed. 

(4) Such other information as the USDA may request. 

Section 14.47. Test Results Report. 

The HCO must ensure that the DEA-registered laboratory that conducts the test of the sample(s) 

from Licensees reports the test results for all samples tested to USDA. The test results report 

shall contain the information described in this Section for each sample tested: 

(a) Licensee’s License and Permit number(s). 

(b) Name of Licensee. 

(c) Business address of Licensee. 

(d) Lot identification number for the sample. 

(e) Name and DEA registration number of the laboratory. 

(f) Date of test and report. 

22 
 

 

(g) Identification of a retest. 

(h) Test result. 

Section 14.48. Failure to Submit. 

The Executive Committee shall take action against an HCO which fails to submit accurate and 

complete reporting as required under this Plan before the deadline. 

23 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEED OR PROPAGULE ACQUISITION 

Section 14.49. Seed or Propagule Acquisition Within the United States. 

(a) A person shall not acquire seeds or Propagules from a source within the United 

States without first submitting a complete Domestic Seed/Propagule Request form andobtaining 

written approval of the Domestic Seed/Propagule Request from a representative of theHCO. 

(b) The HCO shall not approve a Domestic Seed/Propagule Requestunless: 

(1) The Licensed Producer affirms in writing that the requested seed or 

Propagule acquisition plan shall not infringe on the intellectual property 

rights of any person, and 

(2) The seed or Propagule has been certified by a state or seed or Propagule 

certification body to produce Cannabis defined as Hemp, which has a 

floral material THC content of not more than 0.3 percent on a DryWeight 

Basis, or 

(3) The seed has been shown to the satisfaction of the HCO to have Produced 

Cannabis which has a floral material THC content of not more than 0.3 

percent on a Dry Weight Basis at another location in not less than two 

other grows. 

Section 14.50. Seed or Propagule Acquisition from a Source Outside of the United States. 

(a) A person seeking to obtain seeds from an international source shall submit a 

complete International Seed Request form to the HCO. 

(b) A person shall not acquire Propagules from outside the United States. 

(c) All Licensed Producers intending to plant the requested seed shall be listed on the 

request form. 

(d) The HCO shall not approve an International Seed Request form unless the 

Producer affirms in writing that the Producer’s planned activities shall not infringe on the 

intellectual property rights of any person. 

(e) A person submitting an International Seed Request form shall submit to theHCO 

documentation showing that mature plants grown from that seed Variety have a floral material 

THC content of not more than 0.3 percent on a Dry Weight Basis. Additionally: 

(1) If the seed is imported from Canada the Producer must document that: 

(i) The seed importation meets all USDA seed importation 

regulations and all other applicable federal law,and 

(ii) The Seed is accompanied by either: a phytosanitary certification 

from Canada’s national plant protection organization to verify the 

origin of the seed and confirm that no plant pests are detected; or 

24 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

a Federal Seed Analysis Certificate (SAC, PPQ Form 925) for 

Hemp seeds grown inCanada. 

(2) If the Hemp seed is imported from a country other than Canada it must 

be accompanied by 

(i) A phytosanitary certificate from the exporting country’s national 

plant protection organization to verify the origin of the seed and 

confirm that no plant pests are detected, and 

(ii) proof that the importation complies with all applicable USDA 

Animal and Plant Health Inspection Service (APHIS) regulations. 

(f) A person acquiring seeds from a source outside the United States shall arrangefor 

the seeds to arrive at the HCO’s designated facility, for inventory and distribution. 

(g) Upon request from a representative of the HCO, a Licensed Producer shall 

provide a distribution list showing locations where and to whom the imported Hemp seedswere 

distributed following inventory at the HCO’s designatedfacility. 

Section 14.51. Seeds of Wild, Landrace, or Unknown Origin. 

(a) A person shall not acquire or grow Hemp or Cannabis seeds or Propagules of 

wild, landrace, or unknown origin without first obtaining written approval from a representative 

of the HCO. 

(b) The HCO shall not permit Hemp or Cannabis seeds or Propagules of wild, 

landrace, or unknown origin to be planted, cultivated, or replicated by any person without the 

HCO first arranging for replication and THC testing of mature plants grown from the seeds or 

Propagules by the HCO or its designee. 

(c) Any Licensed Producer or Licensed Processor found to have saved seed, 

Propagules, or cuttings, or cultivated seeds, Propagules, or cuttings from a Cannabis plant of 

wild, landrace, or unknown origin, without advance written permission from the HCO shall be 

subject to suspension or revocation of his or her License and forfeiture without compensation of 

his or her Hemp as well as the wild seed and Propagules including any cultivated Cannabis or 

Hemp from that variety. 

25 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HARVESTING 

Section 14.52. Producer Responsibilities. 

Producers shall: 

(a) Allow the HCO to collect random samples of any Cannabis material orinvestigate 

other grow related matters at any time prior to harvest. The Producer is obligated to cooperate 

fully with such sampling or investigation. The Producer or an authorized representative shall be 

present at the growing site for any the sample collection. All samples become the property of the 

Tribe and are non-returnable. 

(b) Allow representatives of the HCO complete and unrestricted access to all Hemp 

and other Cannabis plants and seeds, whether growing or harvested, and all land, buildings, and 

other structures used for the cultivation, Handling, and storage of all Hemp and other Cannabis 

plants and seeds, and all locations listed in the License Agreement. 

(c) Register and report his cultivation activities to the FSA and any other Tribal or 

federal agency that requires such registration and reporting. 

(d) Comply fully with the pre-harvest sampling required in Section14.55. 

(e) Harvested materials from varieties of concern shall not be commingled with other 

varieties without prior written permission from the HCO. 

(f) Floral materials harvested for Phytocannabinoid extraction shall not be moved 

outside the Tribe’s exterior boundaries of the Reservation or beyond a Processor’s permitted 

location, norcommingled, nor extracted, until the HCO releases the material in writing. 

Section 14.53. Pre-Harvest Sampling Required 

(a) A Producer shall not harvest any Cannabis crop, including Hemp, prior to preharvest samples being taken in the manner described herein. 

(b) At least 30 days prior to the anticipated harvest of Tribally Licensed Hemp, a 

Tribally Licensed Producer shall contact the HCO to arrange for a Federal or Tribal Law 

Enforcement Agency or other Federal or Tribal person designated by the Tribe and properly 

trained, to collect samples from the flower material from such Cannabis plants for Delta-9 

Tetrahydrocannabinol concentration level testing as described in this Plan. This sampling cuts 

shall then be collected within 15 days of harvesting of the crop. 

(c) The method used for sampling from the flower material of the Cannabis plant must 

be sufficient to determine, at a confidence level of 95 percent, that no more than one percent (1%) 

of the plants in the Licensed Lot would exceed the Acceptable Hemp THC Level under this Plan. 

The method used for sampling must ensure that a representative sample is collected and that it 

represents a homogeneous composition of the Lot. 

(d) During a scheduled sample collection, the Producer or an authorized 

representative must be present at the collection site. 

26 
 

 

 

 

 

 

 

 

 

 

(e) All Licensed Growers and Producers must provide the representative(s) of the 

sampling agency with complete and unrestricted access during business hours to all Hemp and 

other Cannabis plants, whether growing or harvested, and to all land, buildings, and other 

structures used for the cultivation, handling, and storage of all Hemp and other Cannabis plants 

and seeds, as well as to all locations listed in the Producer’s License and Permit(s). 

(f) A Tribally Licensed Producer shall not harvest their Cannabis crop prior to these 

samples being taken and receipt of approval to harvest from the HCO. Violation of this 

requirement shall be grounds for License revocation. 

Section 14.54. Pre-Harvesting Sampling Procedures. 

Samples are taken to obtain specimens for the measurement of tetrahydrocannabinol (THC) 

content, which determine whether the specimens are Hemp or Marijuana. The measurements are 

intended to be representative of the THC content in a Lot of Hemp crop acreage as identified by 

the Producer’s Tribal License. Hemp Producers may not harvest Hemp prior to the Hemp being 

sampled and receipt of permission to harvest from the HCO. Testing procedures are provided in 

Section 14.57 of this Plan. Sampling shall be completed in accordance with USDA Guidelines. 

Section 14.55. Testing 

(a) The HCO, acting on behalf of the Tribe, shall contract with one or more DEAregistered testing laboratories which has the ability to utilize a reliable methodology for testing 

the THC level of Hemp using post-decarboxylation or other similar methods where the THC 

concentration level reported accounts for the conversion of Delta-9 Tetrahydrocannabinolic acid 

(THC-A) into THC. 

(b) The lab’s Hemp testing method must consider the potential conversion of delta9 

tetrahydrocannabinolic acid (THC-A) into THC and must measure the total available THC 

derived from the sum of the THC and THC-A. 

(c) The labs results must also be accompanied by a scientifically accurate, consistent 

and reliable Measurement of Uncertainty and the potential range of THC concentration which 

results from the application of those uncertainty factors 

(d) Any lab selected by the Tribe shall meet the following additionalstandards: 

(1) Its quality assurance standards must ensure the validity and reliabilityof 

its test results. 

(2) Its selection of its testing methods and its validation and verification must 

ensure that the testing methods used are appropriate (fit for the purpose) 

and that its laboratory can successfully perform the testing. 

(3) Its demonstration of testing validity must ensure consistent,accurate 

analytical performance. 

(4) Its method performance specifications must ensure analytical tests are 

27 
 

 

 

 

 

 

 

 

 

 

 

sufficiently sensitive for the purposes of the detectability requirementsof 

this Plan. 

(5) It must use only appropriate, validated methods and procedures for all 

testing activities and measures of uncertainty. 

(6) Samples of Hemp material from one Lot shall not be comingled with 

Hemp material from other lots during the sampling or testingprocess. 

(e) A test of a representative sample resulting in a higher than the Acceptable 

Hemp THC Level shall be conclusive evidence that the Lot represented by the sample is not 

in compliance with this Plan. 

(f) The results of all sampling tests shall be provided to the Producer, theHCO and the 

testing agent. 

(g) A Licensed Producer, who believes that the original lab results were in error, may 

request a retesting of the original sample. Such retesting shall be arranged by the HCO as soon 

as possible and conducted in compliance with the same methods and standards this Plan made 

applicable to the original sampling and test. Retesting shall be at the expense of the Licensed 

Producer and shall be performed in the same way and to the same standards as the original 

sampling and testing. However, at the request of the Producer, a different DEA-certified 

laboratory may be used. The results of the retesting shall be sent to the Producer, the HCO, and 

the testing agent. 

(h) The HCO shall notify the Producer of the test results and authorize the harvest or 

order the destruction of the Lot in compliance with the terms of this Plan. The HCO shall also 

notify law enforcement and notify the USDA by certified mail or electronically of any test 

results that do not meet the requirements of this Plan or applicable federallaw. 

(i) Lots with samples failing this test may not be Handled or entered into thestream 

of commerce. 

(j) The Tribe reserves the right to seek USDA and DEA approval for its owntesting 

procedures in the future. 

Section 14.56. Post-Testing Removal. 

After the Lot has been sampled for testing and the HCO approves harvest, the Producer may 

harvest the Hemp for storage at a Licensed Location. The Producer shall not remove the Hemp 

from a Licensed Location until the HCO receives the test results showing an Acceptable Hemp 

THC Level and releases the Hemp. Under no circumstance may the Hemp enter into the chain 

of commerce until tested and released by the HCO. 

Section 14.57. Handling of Post-Harvest Samples. 

All samples become the property of the Tribe and are non-returnable. 

Section 14.58. Fees. 

28 
The Tribe may collect fees that are reasonably related to the costs of regulating Hemp harvests, 

including the cost of pre- and post-harvest sampling. Non-payment of fees after 30 days shall 

be considered a violation of the License Agreement. 

29 
 

 

 

 

 

 

 

 

 

 

 

 

CROP DESTRUCTION 

Section 14.59. Licensees Required to Submit Crops Destruction Request and Crop 

Destruction Report. 

(a) Mandatory disposal- A Producer whose Hemp is tested and found to exceed the 

Acceptable Hemp THC Level shall cooperate fully in the disposal of that Hemp or Hemp 

material by a person authorized under the Controlled Substance Act to Handle Marijuana, such 

as a DEA-agent or a duly authorized Federal or Tribal or law enforcement officer. The 

manner of disposal shall be in accordance with the Controlled Substance Act and DEA 

regulations found at 21 CFR 1317.15. 

(b) Producer Requested Destruction- A Producer who unilaterally determines that his 

Hemp crop or Hemp material must be destroyed under this Plan shall submit to the HCO a Crops 

Destruction Request at least 30 days prior to the proposed crop destruction. Upon receipt of this 

request, the HCO shall visit the site, determine the status of the grow, and either authorize the 

Producer’s destruction of the crop in the presence of the HCO if the destruction will be more 

than 60 days from harvest, or arrange for the crop or other Hemp material to be collected for 

destruction by a person authorized under the Controlled Substance Act to Handle Marijuana, 

such as a DEA-agent or a duly authorized Federal or Tribal law enforcement officer, if it is less 

than 60 days from harvest. 

(c) A Licensee whose crop is destroyed by a person authorized under the Controlled 

Substance Act to Handle Marijuana, such as a DEA-agent or a duly authorized Federal or Tribal 

law enforcement officer and in accordance Controlled Substance Act and DEA regulationsfound 

at 21 CFR 1317.15, shall submit a Crop Destruction Report to the HCO. In the event that a 

Licensee fails to complete a destruction report, the HCO shall prepare it. This report shall 

contain at a minimum the following: 

(1) Name and address of the Licensee. 

(2) The License number of the Licensee. 

(3) Location information, such as Lot number, location type, andGeospatial 

Location or other location descriptor for the production area subject to 

disposal. 

(4) Information on the agent handling the disposal. 

(5) Total acreage. 

(6) The date of the proposed destruction. 

(7) Photos of the Hemp Lot. 

(8) Signature of the Licensee. 

30 
Section 14.60. Expense of Crop Destruction. 

The Licensee shall be responsible for the cost of crop destruction. 

Section 14.61. Penalty for Failing to Submit Crops Destruction Report. 

Any Licensee that destroys hemp without the prior approval of the HCO or that fails to submit a 

destruction report shall have his/her License revoked, shall be banned from holding a Hemp 

License in the future, and shall be subject to a Tribal civil penalty of up to $2,500 as well as 

possible federal enforcement. 

31 
 

 

 

 

 

 

PROHIBITED ACTIVITIES 

Section 14.62. Growing or Processing Prohibited Varieties of Hemp Prohibited. 

No person may grow, cultivate, Handle, transport, Process, broker, store, or market Hemp or 

other Cannabis that does not fall within the definition of a Publicly Marketable Hemp Product at 

any location within exterior boundaries of the Tribe’s Reservation. 

Section 14.63. Restrictions on Sale or Transfer. 

Licensees shall not cultivate, Handle, transport, Process, broker, store, or market any Cannabis 

that is not Hemp. 

Section 14.64. Operating Without a License Prohibited. 

A person without a License from the Tribe shall not: cultivate, Handle, transport or Process; or 

broker, store, or market Hemp or other Cannabis. 

Section 14.65. Intermingling Hemp With Other Crops. 

Hemp shall be physically segregated from other crops unless prior approval is obtained in 

writing from the HCO. 

Section 14.66. Operating Minimum. 

A Licensed Producer shall not plant Hemp in an outdoor growing location of less than onequarter acre and 1,000 plants unless prior approval is received in writing from the HCO. 

Section 14.67. Restrictions on Sale or Transfer. 

The following restrictions apply: 

(a) No Licensee may handle or permit the sale, transport, transfer, or storage of 

living plants, viable seeds, leaf material, or floral material toany person without prior approval 

by the HCO. 

(b) No Licensee may transport live Hemp plants, viable seeds, leaf materials, or 

floral materials to unapproved locations including trade shows, county fairs, educational or other 

events, or any other address not listed on the Licensee’s current License Agreement without the 

prior written approval of the HCO, which shall be granted only in compliance or furtherance of 

this Plan. 

(c) No Licensee may ship or transport, or allow to be shipped or transported, live 

Hemp plants, cuttings for planting, or viable seeds from a Variety that is currently designated by 

the HCO as a Prohibited Variety. 

Section 14.68. Public Access to Hemp Restricted. 

The public may not access Hemp Lots for activities such as a maze or for any other reason. 

Licensees shall not allow the unsupervised public on permitted sites. 

32 
 

 

 

 

 

 

 

 

 

 

 

PENALTIES 

Section 14.69. Applicability. 

Anyone who violates this Plan or any Tribal Hemp Ordinance or regulation, whether 

intentionally or negligently, is subject to the penalties set forth within. 

Section 14.70. Immediate License Suspension. 

The HCO shall immediately suspend a License, without an opportunity for a hearing, if: 

(a) The Licensed person pleads guilty to, or is convicted of, any felony or 

drug- related misdemeanor. 

(b) The Licensed person or his or her agent admits to or has been found to have 

made any false statement to the HCO or its representative or failed to comply with any 

instruction or order from the HCO, a representative of the HCO, or any law enforcement 

officer on a hemp- related matter. 

Section 14.71. License Suspension and Revocation. 

The HCO shall notify a Licensee in writing that the Producer and/or Processor’s Licensing 

Agreement has been temporarily suspended or revoked if a representative of the HCO receives 

information supporting an allegation that a Licensee has: 

(a) Violated the Regulations. 

(b) Made a false statement to the HCO or a Law Enforcement Agency. 

(c) Been found to be growing or in possession of Cannabis sativa L. or any part of 

that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, 

acids, salts, and salts of isomers, whether growing or not, with a Delta-9 

Tetrahydrocannabinol concentration of more than 0.3 percent on a Dry Weight Basis. 

(d) Failed to comply with an order from a representative of the HCO or a 

Law Enforcement Agency. 

(e) The HCO shall notify the Chairman of the Tribe of any temporary 

suspension of any Producer or Processor’s Licensing Agreement. 

Section 14.72. Consequences of License Suspension. 

(a) A person whose License Agreement has been temporarily suspended shall not 

harvest, Process, or remove Cannabis from the premises where Hemp or other Cannabis was 

located at the time when the HCO issued its notice of temporary suspension, except as 

authorized in writing the HCO. 

(b) As soon as possible after the notification of temporary suspension, the HCO 

shall inspect the Licensed premises and perform an inventory of all Cannabis, Hemp, and 

33 
 

 

 

 

 

 

 

 

 

 

 

 

Hemp products that are in the Licensee’s possession. 

Section 14.73. Corrective Action Plans for Negligent Violations. 

(a) As used in this Plan, negligent violations shall include, but not be limited to: 

(1) Negligently failing to provide an accurate legal description of land 

on which the Producer Produces Hemp; 

(2) Negligently failing to obtain a License, license renewal, or other 

required authorization from the HCO; or 

(3) The unintentional production or possession of Cannabis sativa L. and 

any part of that plant, including the seeds thereof and all derivatives, 

extracts, cannabinoids, isomers, acids, salts, and salts of isomers, 

whether growing or not, with a Delta-9 Tetrahydrocannabinol 

concentration of morethan 

0.3 percent on a Dry Weight Basis. 

(b) Hemp Producers do not commit a negligent violation if they Produce plants 

that exceed the acceptable Hemp THC level of 0.3 percent if they have used reasonable 

efforts to grow or possess Hemp as defined in this Plan, and the plant does not have a THC 

concentration of more than 0.5 percent on a Dry Weight Basis. 

(c) A Producer who negligently cultivated or possessed Hemp in violation of 

this Plan three times in a five-year period shall be ineligible to cultivate Hemp for a period 

of five years from the date of the third violation. 

(d) A person who is found by the HCO to have negligently Produced or possessed 

Cannabis sativa L. or any part of that plant, including the seeds thereof and all derivatives, 

extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, 

witha Delta-9 Tetrahydrocannabinol concentration of more than 0.3 percent on a Dry Weight 

Basis or who violated any statute or administrative regulation under this Plan shall be subject 

to a corrective action plan imposed by the HCO after a consultation with theLicensee. 

(e) Corrective action plans issued by the HCO shall include, at a minimum, 

the following information: 

(1) A reasonable date by which the Producer shall correct the 

negligent violation. 

(2) A requirement for periodic reports from the Licensee to the HCO 

about the person’s compliance with the corrective action plan, statutes, 

and administrative regulations for a period of not less than two (2) 

yearsfrom the date of the negligent violation. 

(3) A Producer that negligently violates this Plan or their License 

Agreement shall not as a result of that violation be subject to any 

criminal enforcement action by the Federal, State, Tribal or local 

34 
 

 

 

 

 

 

 

 

 

 

government. 

(4) The HCO shall conduct such inspections as it deems necessary to 

determine if the corrective action plan has been implemented. Any 

Licensee who fails to cooperate in this follow up inspections or who 

knowingly or intentionally violates a corrective action plan shall have 

their License suspended. 

Section 14.74. Culpable Violations. 

(a) Mandatory Reporting. If the HCO determines that a Producer or Processor 

has violated the Plan or any Tribe or federal statute or administrative regulation governing 

that person’s participation in the Plan with a Culpable Mental State Greater Than 

Negligence, the HCO shall immediately report them to: 

(1) The U.S. Attorney General; and 

(2) The chief law enforcement officer of the Tribe. 

(b) Section 14.83 shall not apply to culpable violations. 

Section 14.75. Felonies. 

(a) A person with a State or Federal felony conviction related to a controlled 

substance is subject to a 10-year ineligibility restriction on participating in processing and 

producing Hemp under this Plan from the date of the conviction. An exception applies to a 

person who was lawfully growing Hemp under the 2014 Farm Bill before December 20, 

2018, and whose Conviction also occurred before that date. 

(b) For Producers and Processors that are entities, Key Participants of all 

Licensees shall be considered to be participating in Hemp production under this Plan and 

subject to the felony conviction restriction for purposes of paragraph (a) of this section. 

Section 14.76. Termination of Licensing Agreement. 

A License is a privilege and not a right. The Tribe may unilaterally revoke licensing 

agreements upon the HCO’s finding that a Licensed Producer and/or Processor has committed 

a violation of this Plan, any Tribe Hemp-related Ordinance or Regulations, or violated any 

provision of an applicable licensing agreement. 

35 
 

 

 

 

Section 14.77. Termination of Employment. 

Tribal employees, including employees of the HCO, may be terminated for violating provisions 

of this Plan or any Tribe Hemp related Ordinance or Regulations. 

Section 14.78. Civil Penalties. 

If the HCO receives information supporting a finding that it is more likely than not that a person 

has engaged in conduct violating a provision this Plan, any Tribe Hemp-related Ordinance, or 

the Regulations, or their licensing agreement, then the HCO may assess a monetary civil penalty 

not to exceed $2,500 per violation. 

Section 14.79. Forfeiture. 

Any Hemp that is within the exterior boundaries of the Tribe’s Reservation is subject to 

forfeiture and destruction, without compensation, if it is possessed without a License or 

at an unpermitted location. 

Section 14.80. Stacking of Penalties Allowed. 

If the HCO determines that an offense or offenses have been committed under this Plan, the 

HCO is permitted to stack various penalties. 

Section 14.81. Advisement of Rights. 

Any time the HCO issues a penalty under this Plan or a Tribe Hemp licensing agreement, the 

Licensee shall be provided with a written notice of their rights, including the right to a hearing. 

36 
 

REMEDIES 

Section 14.82. Burden of Proof. 

Prior to issuing a penalty or an adverse decision, the HCO must base decisions on a 

preponderance of the evidence. In the case of the cultivation or possession of Cannabis, which 

does not fall within the definition of Hemp, the laboratory test showing that violation shall 

constitute a preponderance of evidence. 

Section 14.83. Right to Review of Adverse Decisions. 

Any person who has been issued an adverse decision under this Plan or the Tribal Hemp 

Regulations may seek the San Carlos Council’s review of such decision. 

Section 14.84. Requesting a Review Hearing. 

A hearing will not be conducted unless a written petition for review is provided to the 

Chairman of the Tribe within thirty (30) calendar days of service of the written notice of the 

HCO’s adverse decision. The petition must state the bases that support the person’s position. 

If no request is provided within the time allotted, the HCO’s decision shall be deemed final. 

Section 14.85. Review Hearing. 

At the review hearing, the person and the HCO may provide evidence and testimony. Upon 

consideration of these, the San Carlos Council may overturn the decision of the HCO, subject to 

such conditions as it deems reasonable under the circumstances to protect the public health, 

safety, and welfare of the Tribe and its members, or the San Carlos Council may affirm the 

decision of the HCO. The decision of the San Carlos Council shall be provided in writing. It 

shall be final and is not subject to judicial review. Hearings shall be open to the public. 

Section 14.86. Legal Standard. 

The legal standard for review shall be clear and convincing. 

Section 14.87. Amendment to this Act 

The Plan may be amended by the San Carlos Council at any regularly called meeting at which a 

quorum is present. Any amendments to the Plan must be submitted to the Secretary for approval. 

37 
 

 

 

 

 

 

 

________________________________________ 

CERTIFICATION 

I, the undersigned, Secretary of the San Carlos Tribal Council, hereby certify that the Tribal 

Council is composed of eleven (11) members, of whom__, constituting a quorum, were at a 

Regular Council Meeting hereto held on the day of , and that the foregoing Resolution 

No. XXX-20-XXX was duly adopted by a vote of FOR: 0; OPPOSED: 0; ABSTAINED: 0; 

of the Tribal Council pursuant to Article V, Section 1 (a) of the Amended Constitution and 

Bylaws of the San Carlos Apache Tribe, effective, February 24, 1954. 

Santana Dillon 

Council Secretary 

SAN CARLOS APACHE TRIBE 

38