{"id":"nsw:sl-2016-0450","name":"Hemp Industry Regulation 2016","slug":"hemp-industry-regulation-2016","collection":"regulation","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"450 of 2016","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":177440,"registerId":"nsw-nsw:sl-2016-0450-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"# Part 1 Preliminary\n\nPart 1 Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name of Regulation","content":"#### 1 Name of Regulation\n\n1 Name of Regulation\n\n> This Regulation is the [Hemp Industry Regulation 2016](/view/html/inforce/current/sl-2016-0450).","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Regulation commences on 1 September 2016 and is required to be published on the NSW legislation website.\n> \n> Note.\n> \n> This Regulation replaces the [Hemp Industry Regulation 2008](/view/html/repealed/current/sl-2008-0475), which is repealed on 1 September 2016 by section 10 (2) of the [Subordinate Legislation Act 1989](/view/html/inforce/current/act-1989-146).","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> > (1) In this Regulation—\n> > \n> > hemp means any plant of the genus Cannabis.\n> > \n> > plant includes a seedling.\n> > \n> > seeds means any seeds that are capable of producing low-THC hemp.\n> > \n> > the Act means the [Hemp Industry Act 2008](/view/html/inforce/current/act-2008-058).\n> > \n> > Note.\n> > \n> > The Act and the [Interpretation Act 1987](/view/html/inforce/current/act-1987-015) contain definitions and other provisions that affect the interpretation and application of this Regulation.\n> \n> > (2) Notes included in this Regulation do not form part of this Regulation.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Licensing scheme","content":"# Part 2 Licensing scheme\n\nPart 2 Licensing scheme","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Information and particulars to be included in licence applications","content":"#### 4 Information and particulars to be included in licence applications\n\n4 Information and particulars to be included in licence applications\n\n> > (1) Purpose This clause prescribes information and particulars for the purposes of section 7 (2) (c) of the Act.\n> \n> > (2) Generally An application for a licence must include the following—\n> > \n> > > (a) the name, address, date of birth and contact details of the applicant,\n> > \n> > > (b) the name, address, date of birth and contact details of any close associate of the applicant who is likely to be concerned in, or associated with, the cultivation or supply of low-THC hemp under the licence,\n> > \n> > > (c) a description of the purpose for which the licence is required and the nature of the activities proposed to be carried out under the licence,\n> > \n> > > (d) a description of the intended use and relevant destination of the low-THC hemp that is to be cultivated or supplied under the proposed licence,\n> > \n> > > (e) details of any drug related offence for which the applicant, or any close associate of the applicant, has been convicted,\n> > \n> > > (f) details of any refusal to grant a corresponding authority to the applicant or any close associate of the applicant,\n> > \n> > > (g) details of any suspension or cancellation of a corresponding authority held by the applicant or any close associate of the applicant,\n> > \n> > > (h) two recent passport-sized photographs of the applicant’s face,\n> > \n> > > (i) two recent passport-sized photographs of the face of any close associate of the applicant who is likely to be concerned in, or associated with, the cultivation or supply of low-THC hemp under the proposed licence,\n> > \n> > > (j) the signature of the applicant and the date of the application.\n> \n> > (3) Licence to cultivate low-THC hemp for commercial production An application for a licence authorising a person to cultivate low-THC hemp for commercial production (whether or not for any other purpose) must also include the following—\n> > \n> > > (a) a description of the location of the property on which the low-THC hemp is to be cultivated (including Lot and DP numbers and the address of the property),\n> > \n> > > (b) a plan of the property that shows the areas where the low-THC hemp is to be cultivated or stored (including an estimate of the total area to be used to grow the hemp),\n> > \n> > > (c) (Repealed)\n> > \n> > > (d) if the applicant does not own the property—the name and address of the owner of the property and evidence of the owner’s consent to the use of the property to cultivate low-THC hemp for commercial production.\n> \n> > (4) Licence to supply low-THC hemp for commercial production An application for a licence authorising a person to supply low-THC hemp for commercial production (whether or not for any other purpose) must also include the following—\n> > \n> > > (a) if known—a description of the location of the property that is to be used for the proposed commercial production (including the address and contact details),\n> > \n> > > (b) the estimated quantity of low-THC hemp to be supplied annually.\n> \n> > (5) Licence to cultivate low-THC hemp for use in manufacturing process An application for a licence authorising a person to cultivate low-THC hemp for use in any manufacturing process (whether or not for any other purpose) must also include the following—\n> > \n> > > (a) a description of the location of the property on which the low-THC hemp is to be cultivated (including Lot and DP numbers and the address of the property),\n> > \n> > > (b) a plan of the property that shows the areas where the low-THC hemp is to be cultivated or stored (including an estimate of the total area to be used to grow the hemp),\n> > \n> > > (c) (Repealed)\n> > \n> > > (d) if the applicant does not own the property—the name and address of the owner of the property and evidence of the owner’s consent to the use of the property to cultivate low-THC hemp for use in a manufacturing process,\n> > \n> > > (e) if known—a description of the processes to which the low-THC hemp will be subject.\n> \n> > (6) Licence to supply low-THC hemp for use in manufacturing process An application for a licence authorising a person to supply low-THC hemp for use in any manufacturing process (whether or not for any other purpose) must also include the following—\n> > \n> > > (a) if known—a description of the location of the manufacturing facilities (including the address and contact details),\n> > \n> > > (b) if known—a description of the processes to which the low-THC hemp will be subject,\n> > \n> > > (c) the estimated quantity of low-THC hemp to be supplied annually.\n> \n> > (7) Licence to cultivate low-THC hemp for scientific purposes An application for a licence authorising a person to cultivate low-THC hemp for scientific research, instruction, analysis or study (whether or not for any other purpose) must also include the following—\n> > \n> > > (a) a description of the location of the property on which the low-THC hemp is to be cultivated (including Lot and DP numbers and the address of the property),\n> > \n> > > (b) a plan of the property that shows the areas where the low-THC hemp is to be cultivated or stored (including an estimate of the total area to be used to grow the hemp),\n> > \n> > > (c) (Repealed)\n> > \n> > > (d) if the applicant does not own the property—the name and address of the owner of the property and evidence of the owner’s consent to the use of the property to cultivate low-THC hemp for scientific research, instruction, analysis or study,\n> > \n> > > (e) details of the educational qualifications and other relevant qualifications and experience of—\n> > > \n> > > > (i) the applicant, and\n> > > \n> > > > (ii) any close associate of the applicant who will be concerned in, or associated with, the cultivation of low-THC hemp under the licence,\n> > \n> > > (f) details of the proposed research, instruction, analysis or study (including the objectives, trial design, the estimated quantity of low-THC hemp to be cultivated and the proposed use, disposal and destruction of that hemp).\n> \n> > (8) Licence to supply low-THC hemp for scientific purposes An application for a licence authorising a person to supply low-THC hemp for scientific research, instruction, analysis or study (whether or not for any other purpose) must also include the following—\n> > \n> > > (a) if known—a description of the location of the property that is to be used for the proposed research, instruction, analysis or study (including the address and contact details),\n> > \n> > > (b) if known—a description of the proposed research, instruction, analysis or study,\n> > \n> > > (c) the estimated quantity of low-THC hemp to be supplied annually.\n> \n> **cl 4:** Am 2016 (450), cl 18 (b).","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Application for renewal of licence","content":"#### 5 Application for renewal of licence\n\n5 Application for renewal of licence\n\n> > (1) If—\n> > \n> > > (a) the holder of a licence (the current licence) applies for the renewal of the licence before the end of its term, and\n> > \n> > > (b) the most recent information held by the Secretary in relation to the current licence (the current licence information) remains unchanged when the application for renewal is made,\n> > \n> > the application is not required to include the information and particulars referred to in clause 4 but is required to include the information and particulars referred to in subclause (2) of this clause.\n> > \n> > Note.\n> > \n> > Section 13 (3) of the Act provides that an application for the renewal of a licence is to be dealt with as if it were an initial application for a licence. This requirement is subject to the regulations.\n> \n> > (2) The required information and particulars are as follows—\n> > \n> > > (a) the name, address and contact details of the applicant,\n> > \n> > > (b) the number of the applicant’s current licence,\n> > \n> > > (c) a declaration by the applicant that the current licence information remains unchanged,\n> > \n> > > (d) the signature of the applicant and the date of the application.\n> \n> > (3) Despite subclause (1), the Secretary may refuse to grant the application if, in the opinion of the Secretary, the current licence information has changed and the information and particulars required by clause 4 have not been included in the application.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Additional grounds for refusing to grant licence","content":"#### 6 Additional grounds for refusing to grant licence\n\n6 Additional grounds for refusing to grant licence\n\n> For the purposes of section 9 (6) of the Act, the Secretary may refuse to grant a licence to an applicant for a licence if—\n> \n> > (a) the applicant is unable to demonstrate, to the satisfaction of the Secretary, a lawful and genuine purpose for the cultivation or supply of low-THC hemp, or\n> \n> > (b) the applicant, or a close associate of the applicant, has previously been refused a licence or a corresponding authority, or\n> \n> > (c) the applicant, or a close associate of the applicant, has previously held a licence or corresponding authority that was cancelled or suspended, or\n> \n> > (d) the applicant, or a close associate of the applicant who will be concerned in, or associated with, the cultivation or supply of low-THC hemp under the licence, has not attained the age of 18 years, or\n> \n> > (e) in the case of an application for a licence authorising a person to cultivate low-THC hemp for scientific research, instruction, analysis or study—the applicant is unable to demonstrate, to the satisfaction of the Secretary, that the applicant, or any close associate of the applicant who will be concerned in, or associated with, the cultivation or supply of low-THC hemp under the licence, has the educational qualifications and other relevant qualifications and experience required to carry out the proposed scientific research, instruction, analysis or study.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Application for transfer of licence","content":"#### 7 Application for transfer of licence\n\n7 Application for transfer of licence\n\n> > (1) An application for the transfer of a licence is not required to include the information and particulars referred to in clause 4, but is required to include the information and particulars referred to in subclause (2) of this clause, if the most recent information held by the Secretary in relation to the licence (the current licence information) remains unchanged when the application for the transfer is made.\n> > \n> > Note.\n> > \n> > Section 14 (2) of the Act provides that an application for the transfer of a licence is to be dealt with as if it were an initial application for a licence. This requirement is subject to the regulations.\n> \n> > (2) The required information and particulars are as follows—\n> > \n> > > (a) the name, address and contact details of the current licence holder,\n> > \n> > > (b) the number of the licence,\n> > \n> > > (c) the name, address, date of birth and contact details of the transferee,\n> > \n> > > (d) the name, address, date of birth and contact details of any close associate of the transferee who is likely to be concerned in, or associated with, the cultivation or supply of low-THC hemp under the licence,\n> > \n> > > (e) details of any drug related offence for which the transferee, or any close associate of the transferee, has been convicted,\n> > \n> > > (f) details of any refusal to grant a corresponding authority to the transferee or any close associate of the transferee,\n> > \n> > > (g) details of any suspension or cancellation of a corresponding authority held by the transferee or any close associate of the transferee,\n> > \n> > > (h) two recent passport-sized photographs of the transferee’s face,\n> > \n> > > (i) two recent passport-sized photographs of the face of any close associate of the transferee,\n> > \n> > > (j) a declaration by the current licence holder that the current licence information remains unchanged,\n> > \n> > > (k) the signature of the current licence holder and of the transferee and the date of the application.\n> \n> > (3) Despite subclause (1), the Secretary may refuse to grant the application if, in the opinion of the Secretary, the current licence information has changed and the information and particulars required by clause 4 have not been included in the application.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Additional grounds for cancellation of licence","content":"#### 8 Additional grounds for cancellation of licence\n\n8 Additional grounds for cancellation of licence\n\n> For the purposes of section 16 (1) (b) of the Act, a licence may be cancelled by the Secretary on the ground that it has been requested in writing by the licensee.\n> \n> **cl 8:** Am 2022 No 59, Sch 1.21\\[1\\] \\[2\\].","sortOrder":9},{"sectionNumber":"Part 3","sectionType":"part","heading":"Licence conditions","content":"# Part 3 Licence conditions\n\nPart 3 Licence conditions","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Purpose","content":"#### 9 Purpose\n\n9 Purpose\n\n> This Part prescribes conditions of a licence for the purposes of section 12 (1) (a) of the Act.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Licence conditions","content":"#### 10 Licence conditions\n\n10 Licence conditions\n\n> > (1) The following conditions are prescribed—\n> > \n> > > (a) a licensee must ensure that the activities authorised by the licence remain under the licensee’s control at all times,\n> > \n> > > (b) if a licence specifies an area in which an activity authorised by the licence is to be carried out, the licensee must ensure that such activities are carried out only in the specified area,\n> > \n> > > (c) a licensee may only use seed that is supplied on the basis that it will not produce hemp that has a concentration of THC (in its leaves and flowering heads) of more than 0.5%,\n> > \n> > > (d) a licensee must take all necessary steps to ensure that any hemp cultivated by the licensee has a concentration of THC (in its leaves and flowering heads) that does not exceed 1%,\n> > \n> > > (e) a licensee must provide the Secretary with the results of any test, carried out by or on behalf of the licensee, indicating that the concentration of THC (in the leaves and flowering heads of hemp cultivated by the licensee) exceeds 1% within 24 hours of receiving those results,\n> > \n> > > (f) if a licensee becomes aware of the unauthorised use or supply (or proposed unauthorised use or supply) of any low-THC hemp that has been, or is intended to be, cultivated or supplied under the licence, the licensee must immediately notify an inspector of the unauthorised use or supply (or proposed unauthorised use or supply),\n> > \n> > > (g) a licensee must take all necessary steps to ensure that any low-THC hemp that has been, or is intended to be, cultivated or supplied under the licence is not at risk of being used for an unlawful purpose,\n> > \n> > > (h) a licensee must ensure that all low-THC hemp cultivated under the licence is, before leaving the property on which it was cultivated, substantially stripped of its leaves,\n> > \n> > > (i) a licensee must advise the Secretary of any material change to the information provided in relation to the licence in accordance with this Regulation,\n> > \n> > > (j) a licensee must produce the licence for inspection by an inspector at the request of the inspector,\n> > \n> > > (k) a licensee must co-operate with an inspector at all times when the inspector is exercising his or her powers under the Act in relation to the licensee,\n> > \n> > > (l) a licensee must notify the Secretary immediately if the applicant, or any close associate of the applicant, is convicted of any drug related offence.\n> \n> > (2) A licensee is exempt from the requirement in subclause (1) (h)—\n> > \n> > > (a) in respect of any low-THC hemp taken from the property on which it was cultivated for scientific purposes or analysis, and\n> > \n> > > (b) in such other circumstances that the Secretary considers appropriate.","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Register","content":"#### 11 Register\n\n11 Register\n\n> > (1) It is a condition of a licence that the licensee keep, in accordance with this clause, a register containing the following information—\n> > \n> > > (a) the name and address of any person employed or otherwise involved in assisting the licensee in carrying out any activities in relation to the cultivation or supply of low-THC hemp and details of a proof of identity document for that person (for example, details of the person’s driver licence or passport),\n> > \n> > > (b) in relation to any seeds that are supplied or obtained under the licence—\n> > > \n> > > > (i) the date that the seeds are supplied or obtained, and\n> > > \n> > > > (ii) the weight of the seeds, and\n> > > \n> > > > (iii) the variety of the seeds, and\n> > > \n> > > > (iv) the name of the person to whom the seeds are supplied or from whom the seeds are obtained,\n> > \n> > > (c) in relation to any plants that are supplied or obtained under the licence—\n> > > \n> > > > (i) the date that the plants are supplied or obtained, and\n> > > \n> > > > (ii) the number of the plants, and\n> > > \n> > > > (iii) the variety of the plants, and\n> > > \n> > > > (iv) the name of the person to whom the plants are supplied or from whom the plants are obtained,\n> > \n> > > (d) in relation to the sowing of any seeds under the licence—\n> > > \n> > > > (i) the date that the seeds are sown, and\n> > > \n> > > > (ii) the weight and variety of the seeds sown, and\n> > > \n> > > > (iii) the location where the seeds are sown,\n> > \n> > > (e) in relation to the planting of any plants under the licence—\n> > > \n> > > > (i) the date that the plants are planted, and\n> > > \n> > > > (ii) the number of plants, and\n> > > \n> > > > (iii) the variety of the plants, and\n> > > \n> > > > (iv) the location where the plants are planted,\n> > \n> > > (f) in relation to the disposal or destruction of any seeds or plants under the licence—\n> > > \n> > > > (i) the date of the disposal or destruction of the seeds or plants, and\n> > > \n> > > > (ii) the weight of the seeds or number of plants, and\n> > > \n> > > > (iii) the variety of the seeds or plants, and\n> > > \n> > > > (iv) the location where the seeds or plants are disposed or destroyed, and\n> > > \n> > > > (v) the manner in which the seeds or plants are disposed or destroyed, and\n> > > \n> > > > (vi) the reason for the disposal or destruction of the seeds or plants,\n> > \n> > > (g) in relation to the harvesting of low-THC hemp under the licence—\n> > > \n> > > > (i) the date of the harvesting, and\n> > > \n> > > > (ii) the quantity of plants harvested, and\n> > > \n> > > > (iii) the variety of the plants harvested, and\n> > > \n> > > > (iv) the weight of any seeds obtained from harvested plants and the variety of those plants, and\n> > > \n> > > > (v) the location of the harvesting,\n> > \n> > > (h) in relation to the supply of harvested low-THC hemp under the licence—\n> > > \n> > > > (i) the date of the supply, and\n> > > \n> > > > (ii) the name of the person to whom the hemp was supplied, and\n> > > \n> > > > (iii) the condition of the hemp (including whether any plants are fresh or dried and whether any seeds are viable or have been treated to make the seeds non-viable).\n> \n> > (2) Information is to be recorded in the register within 48 hours of the relevant event to which the information relates.\n> \n> > (3) The register must identify the person who recorded the information and the date that the information was recorded in the register.\n> \n> > (4) The person responsible for keeping a register under a licence must, if the licence to which the register relates expires or is cancelled, retain the register for a period of 5 years after the expiry or cancellation.\n> \n> > (5) The register must be—\n> > \n> > > (a) in legible form in the English language, or\n> > \n> > > (b) in computerised or other form that is readily accessible and is convertible into a legible form in the English language.\n> \n> > (6) The register is to be kept in a secure manner so as to prevent any tampering with the register.\n> \n> > (7) If a licence is transferred, the licensee is to provide the transferee with a copy of the register.\n> \n> **cl 11:** Am 2022 No 59, Sch 1.21\\[1\\] \\[2\\].","sortOrder":13},{"sectionNumber":"12","sectionType":"section","heading":"Annual reports","content":"#### 12 Annual reports\n\n12 Annual reports\n\n> > (1) It is a condition of a licence that the licensee provide a report to the Secretary in relation to the activities carried out under the licence during each annual period.\n> \n> > (2) The report is to be provided to the Secretary within the time, and in the manner, specified by the Secretary by notice in writing to the licensee.\n> \n> > (3) Without limiting subclause (2), the Secretary may direct a licensee, or any class of licensees, to include specified information relating to licences or the cultivation or supply of low-THC hemp in a report. The licensee must comply with any such direction.\n> \n> > (4) In this clause, annual period, in relation to a licence, means each period of 12 months beginning on the date the licence was granted and on each anniversary of that date.","sortOrder":14},{"sectionNumber":"13","sectionType":"section","heading":"Annual licence fee","content":"#### 13 Annual licence fee\n\n13 Annual licence fee\n\n> > (1) It is a condition of a licence that the licensee pay an annual fee of $200 in accordance with this clause.\n> \n> > (2) The annual fee is payable to the Secretary annually in accordance with the written directions of the Secretary.\n> \n> > (3) The annual fee is payable even if the licence is suspended.","sortOrder":15},{"sectionNumber":"Part 4","sectionType":"part","heading":"Miscellaneous","content":"# Part 4 Miscellaneous\n\nPart 4 Miscellaneous","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":"Corresponding laws","content":"#### 14 Corresponding laws\n\n14 Corresponding laws\n\n> > (1) The following Acts, and any instruments made under those Acts, are declared to be corresponding laws for the purposes of the definition of corresponding authority in section 3 (1) of the Act—\n> > \n> > > (a) the Hemp Fibre Industry Facilitation Act 2004 of the Australian Capital Territory,\n> > \n> > > (b) the Drugs Misuse Act 1986 of Queensland,\n> > \n> > > (c) the Poisons Act 1971 of Tasmania,\n> > \n> > > (d) the Drugs, Poisons and Controlled Substances Act 1981 of Victoria,\n> > \n> > > (e) the Industrial Hemp Act 2004 of Western Australia.\n> \n> > (2) The following Acts, and any instruments made under those Acts, are declared to be corresponding laws for the purposes of the definition of drug related offence in section 3 (1) of the Act—\n> > \n> > > (a) the Criminal Code 2002 of the Australian Capital Territory,\n> > \n> > > (b) the [Criminal Code Act 1995](http://www.legislation.gov.au/) of the Commonwealth,\n> > \n> > > (c) the Misuse of Drugs Act of the Northern Territory,\n> > \n> > > (d) the Drugs Misuse Act 1986 of Queensland,\n> > \n> > > (e) the Controlled Substances Act 1984 of South Australia,\n> > \n> > > (f) the Misuse of Drugs Act 2001 of Tasmania,\n> > \n> > > (g) the Drugs, Poisons and Controlled Substances Act 1981 of Victoria,\n> > \n> > > (h) the Misuse of Drugs Act 1981 of Western Australia.","sortOrder":17},{"sectionNumber":"15","sectionType":"section","heading":"Agency for supply of information arrangements","content":"#### 15 Agency for supply of information arrangements\n\n15 Agency for supply of information arrangements\n\n> For the purposes of section 37 of the Act, the Ministry of Health is prescribed as a relevant agency.","sortOrder":18},{"sectionNumber":"16","sectionType":"section","heading":"Approved application fees","content":"#### 16 Approved application fees\n\n16 Approved application fees\n\n> Note.\n> \n> The fee to accompany a licence application (including licence renewals and transfers) is approved by the Secretary (see section 7 (2) (b) of the Act). This clause prescribes the maximum amount of any such approved fee.\n> \n> For the purposes of section 39 (1) of the Act—\n> \n> > (a) the amount of $1,000 is prescribed in relation to any fee approved by the Secretary for an application for a licence (other than an application for the renewal or transfer of a licence), and\n> \n> > (b) the amount of $500 is prescribed in relation to any fee approved by the Secretary for an application for the renewal or transfer of a licence.","sortOrder":19},{"sectionNumber":"17","sectionType":"section","heading":"Penalty notices","content":"#### 17 Penalty notices\n\n17 Penalty notices\n\n> For the purposes of section 45 (6) of the Act, the offence created by section 6 of the Act is prescribed as an offence for which a penalty notice may be issued and the prescribed penalty for that offence is $550.","sortOrder":20},{"sectionNumber":"18","sectionType":"section","heading":"Repeals consequent on commencement of Biosecurity Act 2015","content":"#### 18 Repeals consequent on commencement of Biosecurity Act 2015\n\n18 Repeals consequent on commencement of [Biosecurity Act 2015](/view/html/inforce/current/act-2015-024)\n\n> Clause 4 (3) (c), (5) (c) and (7) (c) is repealed—\n> \n> > (a) if Schedule 8.22 to the [Biosecurity Act 2015](/view/html/inforce/current/act-2015-024) commences on or before 1 September 2016—on 1 September 2016, or\n> \n> > (b) if Schedule 8.22 commences after 1 September 2016—on the day that Schedule commences.","sortOrder":21},{"sectionNumber":"19","sectionType":"section","heading":"Savings","content":"#### 19 Savings\n\n19 Savings\n\n> Any act, matter or thing that, immediately before the repeal of the [Hemp Industry Regulation 2008](/view/html/repealed/current/sl-2008-0475), had effect under that Regulation continues to have effect under this Regulation.","sortOrder":22}],"analysis":{"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"Based on the available information, the regulation appears to have remained focused on its original purpose of licensing and regulating the industrial hemp industry in NSW. The amendments made in 2017 and 2023 reflect standard updates rather than any significant expansion or contraction of scope."},"complexity_factors":["Operates within a sensitive legal area (hemp/cannabis regulation) requiring careful compliance with both drug laws and agricultural rules","Licensing and permit framework involves multiple conditions, obligations, and enforcement mechanisms","Sits beneath a parent Act, meaning readers must cross-reference the enabling legislation to fully understand the rules","Has been amended over time (three distinct versions since 2016), meaning compliance obligations have changed","Scheduled for automatic repeal in 2026, creating uncertainty about future regulatory requirements","Limited substantive content visible in the provided text — the full operative provisions are not shown, adding interpretive uncertainty"],"plain_english_summary":"## Hemp Industry Regulation 2016 (NSW)\n\n**What is this?**\nThis is a New South Wales (NSW) regulation — a set of legally binding rules made under a parent law — that governs the **industrial hemp industry** in NSW. Industrial hemp is a variety of the cannabis plant grown for commercial purposes (like fibre, seed, and oil) but with very low levels of THC (the chemical that makes people \"high\").\n\n**Who does it affect?**\n- Farmers and businesses wanting to **grow, process, or sell industrial hemp** in NSW\n- Anyone applying for a **licence or permit** to operate in the hemp industry\n- Inspectors and government officials who **regulate and enforce** the rules\n\n**What does it do?**\nThe regulation sets out the practical rules for how the hemp industry is controlled in NSW, including:\n- The **conditions** growers and processors must follow to hold a licence\n- **Record-keeping** requirements (what paperwork you must keep)\n- **Inspection and testing** procedures (how authorities check crops)\n- **Fees** associated with licences and applications\n- What happens if someone **breaks the rules**\n\n**Why does it matter?**\nWithout complying with this regulation, you **cannot legally operate** in the hemp industry in NSW. Getting it wrong can mean losing your licence or facing penalties. Hemp farming has real commercial potential, but it sits in a legally sensitive area because of its relationship to cannabis law — so strict rules apply.\n\n**Important note:** This regulation is scheduled to be **automatically repealed (cancelled) on 1 September 2026** under a standard NSW process for reviewing subordinate legislation. After that date, new rules may or may not replace it."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Regulation replaces the Hemp Industry Regulation 2008 (cl 2) and contains a savings provision preserving any acts or arrangements that had effect immediately before repeal of the earlier Regulation (cl 19). The text does not expressly broaden or narrow the classes of activity that fall within the licensing scheme; it mainly prescribes application particulars, licence conditions, recordkeeping, reporting, fees and corresponding laws. On the face of the instrument there is no textual indication of an intended expansion or contraction of regulatory scope beyond replacing the earlier Regulation and carrying forward existing effects (cl 2; cl 19)."},"complexity_factors":["Multiple licence purposes with different documentary requirements (cl 4(3)–(8))","Detailed and time‑sensitive recordkeeping and retention obligations (48‑hour entry rule; 5‑year retention) (cl 11(2), (4))","Two‑tier THC requirements tied to seed and cultivated plants and a speedy notification duty for test results >1% (cl 10(c)–(e))","Secretary discretion to refuse, direct reporting content, and grant exemptions creating administrative uncertainty (cl 5(3); cl 6; cl 7(3); cl 10(2); cl 12(3))","Different application fee maxima and an annual fee, plus a prescribed penalty notice — multiple monetary compliance points (cl 13; cl 16; cl 17)","Cross‑jurisdictional references to corresponding laws and prescribed agencies for information sharing (cl 14; cl 15)","Separate rules for renewal and transfer with potential requirement to re‑supply full particulars if information has changed (cl 5; cl 7)"],"plain_english_summary":"What this Regulation does, mechanically:\n\n- Establishes a regulatory scheme for low-THC hemp by prescribing the information required for licence applications, renewal and transfer; licence conditions; recordkeeping and reporting obligations; fees; offences and transitional arrangements (see cl 4–19).\n\n- Specifies the detailed content that must accompany applications for different licence purposes (cultivation, supply, manufacturing use, scientific purposes), including identity details, property descriptions or plans, evidence of owner consent where relevant, photographs, criminal-history disclosures and process descriptions where known (cl 4).  \n\n- Allows a licence holder renewing or transferring a licence to provide a reduced set of particulars if the Secretary’s existing information remains unchanged; but the Secretary may require full information or refuse the application if the Secretary considers the information has changed (cl 5, cl 7).\n\n- Prescribes additional grounds on which the Secretary may refuse a licence, including inability to show a lawful and genuine purpose, prior refusals/cancellations of corresponding authorities, under‑age persons involved, and (for scientific licences) lack of required qualifications or experience (cl 6).\n\n- Sets out specific, enforceable licence conditions: licensees must keep authorised activities under their control; confine activities to specified areas; use seed that will not produce hemp above a stated THC concentration; ensure hemp THC does not exceed a higher ceiling; report tests above the ceiling within 24 hours; notify inspectors of unauthorised uses; reduce leaf material before product leaves the property (subject to limited exemptions); produce the licence on request; cooperate with inspectors; and advise the Secretary of material information changes and convictions (cl 10(1); cl 10(2)).\n\n- Requires licensees to keep a detailed register of people involved, seeds/plants supplied or obtained, sowing/planting/harvesting, disposal or destruction and supplies of harvested hemp. Entries must be made within 48 hours of the relevant event, identify who recorded them, be kept secure and retained for 5 years after licence expiry or cancellation (cl 11(1)–(6)).\n\n- Imposes an annual reporting obligation to the Secretary for each 12‑month licence period; the Secretary may specify the timing, form and content of reports and may direct inclusion of specified information (cl 12).\n\n- Prescribes fees and penalties: an annual licence fee of $200 payable as directed by the Secretary (payable even if the licence is suspended) (cl 13); maximum approved application fees of $1,000 for new licences and $500 for renewals or transfers (cl 16); and a prescribed penalty notice amount of $550 for the offence created by s 6 of the Act (cl 17).\n\n- Identifies corresponding state and territory Acts for recognition of corresponding authorities and for defining drug‑related offences (cl 14), prescribes the Ministry of Health as a relevant agency for supply of information (cl 15), and carries forward acts and arrangements in force immediately before repeal of the earlier 2008 Regulation (cl 2, cl 19).\n\nStated purposes in the instrument and how they map to mechanics:\n\n- The instrument implements the application-information requirement in section 7(2)(c) of the Act by prescribing precise particulars to be provided with licence applications (cl 4(1)).\n\n- It prescribes licence conditions for the purposes of section 12(1)(a) of the Act (cl 9–10).  \n\n- It prescribes maximum approved application fees under section 39(1) of the Act (cl 16).\n\nCosts, incentives and trade-offs (mechanisms, with citations):\n\n- Who pays: applicants and licence holders bear upfront application costs, possible approved application fees (up to $1,000 for new licences, $500 for renewals/transfers) and an annual licence fee of $200 (cl 16; cl 13(1)–(3)).\n\n- Ongoing compliance costs for licence holders include preparing and retaining detailed registers, making entries within 48 hours, producing annual reports as directed, and retaining registers for 5 years after expiry or cancellation (cl 11(1)–(4); cl 12(1)–(3)).\n\n- Operational constraints affect production decisions: seed must be supplied on the basis it will not produce hemp >0.5% THC, and licensees must ensure cultivated hemp does not exceed 1% THC; licensees must notify tests above 1% within 24 hours (cl 10(c)–(e)). Those limits create quality control and testing incentives for licensees and seed suppliers.\n\n- Supply‑chain controls: licence conditions require that hemp be substantially stripped of leaves before leaving the property except for scientific/analysis exemptions or other Secretary‑approved circumstances (cl 10(1)(h)–(2)). This is a handling and processing requirement prior to sale or movement.\n\n- Administrative discretion and enforcement: the Secretary has express powers to refuse licences, insist on full application material for renewals/transfers when information has changed, direct annual reporting content, and consider exemptions to the leaf‑stripping rule (cl 5(3); cl 6; cl 7(3); cl 12(3); cl 10(2)). Inspectors have powers to request production of a licence and to be notified of unauthorised use (cl 10(1)(f), (j), (k)). These clauses allocate decision‑making authority to the Secretary and inspectors and create compliance monitoring paths.\n\n- Penalty and deterrence: the instrument prescribes a penalty notice amount for an offence under the Act (cl 17), creating a streamlined monetary sanction option.\n\nImplementation risk and compliance burden:\n\n- Recordkeeping and timely reporting create a measurable ongoing administrative burden on licensees (cl 11(2); cl 12(2)). Failure to maintain accurate registers or to notify test results quickly could expose licensees to enforcement action.\n\n- The Secretary’s discretionary powers to refuse or demand further particulars on renewals or transfers (cl 5(3); cl 7(3)) mean applicants face some regulatory uncertainty about what will be required at decision time.\n\n- The requirement to use seed that is certified to produce low‑THC hemp (cl 10(c)) and the two-tier THC limits (seed supply basis 0.5% and cultivation ceiling 1% (cl 10(c)–(d))) create compliance risks if seed genetics or growing conditions cause THC escalation.\n\nEffects on private enterprise, choice and transactions:\n\n- Entry control: cultivating or supplying low‑THC hemp on a licensed, lawful basis requires obtaining and maintaining a licence and meeting ongoing reporting/recordkeeping obligations; this affects who can enter and operate in the market (cl 4; cl 10; cl 11).  \n\n- Transactional frictions: transfer and renewal processes may be streamlined where information is unchanged but subject to the Secretary’s review; transfers require disclosure of transferee identity and close associates (cl 5; cl 7).\n\n- Suppliers of seed and processors are indirectly constrained because seed must meet a specified low‑THC production standard and harvested hemp must be substantially stripped of leaves before movement (cl 10(c), (h)).\n\nWho decides, who enforces and what behaviour changes:\n\n- The Secretary decides on licence grants, renewals and transfers, sets approved application fees (within prescribed maxima), may direct reporting content and may consider exemptions (cl 4(1); cl 5(3); cl 7(3); cl 12(3); cl 16).\n\n- Inspectors enforce licence production, cooperate requirements, and must be notified of unauthorised uses; the Secretary is notified of convictions and of test results >1% THC (cl 10(1)(e), (f), (j), (k), (l)).\n\n- Licensees must alter behaviour to meet statutory controls: maintain control of activities, confine activities to specified areas, use approved seeds, manage THC levels, strip leaves before movement (subject to exemptions), keep records and report annually (cl 10; cl 11; cl 12).\n\nConcentrated benefits and diffuse costs (mechanistic observation):\n\n- The text creates a legal pathway and specified regulatory privileges for licensed cultivators and suppliers (authority to cultivate/supply under licence). The costs of obtaining and maintaining that authority — application materials, fees, testing, recordkeeping — fall on those licence applicants and holders (cl 4; cl 13; cl 11).\n\nCross‑jurisdictional recognition and information sharing:\n\n- The instrument identifies corresponding laws in other jurisdictions for recognising corresponding authorities and defining drug‑related offences (cl 14) and prescribes the Ministry of Health as a relevant agency for supply of information under the Act (cl 15).\n\nTransitional arrangements:\n\n- The Regulation replaces the 2008 Regulation and preserves acts or things that had effect under the earlier Regulation (cl 2; cl 19).\n\nPractical summary: To lawfully cultivate or supply low‑THC hemp under this Regulation an applicant must submit specified identity, property and purpose information; once licensed, they must follow strict THC limits, keep detailed records with tight timeframes, submit annual reports, pay set fees, cooperate with inspectors and comply with directions from the Secretary. These rules allocate compliance costs to applicants and licensees, allocate decision and enforcement authority to the Secretary and inspectors, and create operational constraints on seed selection, growing, handling and movement of hemp (see cl 4–13)."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The Regulation appears consistent with its original purpose of operationalising the Hemp Industry Act 2008. The 2016 version replaced the 2008 Regulation without significant expansion of scope. The amendments noted (2016 and 2022) appear to be minor technical or machinery changes rather than substantive expansions."},"complexity_factors":["Multiple parallel application pathways (clauses 4(3)-(8)) with overlapping but distinct requirements for commercial production, manufacturing, and scientific purposes","Extensive record-keeping obligations in clause 11 with 8 categories of tracked information and specific timeframes (48-hour recording requirement)","Cross-referencing to the parent Act (Hemp Industry Act 2008) for definitions and core powers, requiring dual reading","Conditional logic in clauses 5 and 7 regarding when full applications vs. abbreviated applications are permitted for renewals and transfers","Nested exemptions in clause 10(2) regarding the leaf-stripping requirement","Repealed provisions (clauses 4(3)(c), (5)(c), (7)(c)) with complex commencement machinery in clause 18 tied to the Biosecurity Act 2015","Recognition of corresponding laws from 5 jurisdictions for licensing purposes and 8 jurisdictions for drug offences (clause 14)"],"plain_english_summary":"This Regulation sets out the detailed rules for growing and supplying industrial hemp (cannabis with very low THC) in New South Wales. It works together with the Hemp Industry Act 2008.\n\n**What it does:**\n- **Creates a licensing system** for anyone who wants to cultivate (grow) or supply low-THC hemp for commercial production, manufacturing, or scientific research.\n- **Sets application requirements** — applicants must provide personal details, photos, property information, criminal history related to drugs, and specific plans depending on what they want to do (commercial, manufacturing, or scientific).\n- **Adds extra reasons the government can refuse a licence** — including if the applicant can't show a genuine lawful purpose, has had previous licences cancelled, is under 18, or (for scientific licences) lacks proper qualifications.\n- **Imposes strict conditions on licence holders**, including:\n  - Using only seeds that won't produce hemp with more than 0.5% THC\n  - Keeping THC levels in plants below 1%\n  - Reporting any test results showing THC over 1% within 24 hours\n  - Keeping detailed records (a \"register\") of all seeds, plants, harvesting, and supply\n  - Stripping leaves from hemp before it leaves the property (with exceptions for scientific use)\n  - Paying a $200 annual fee\n  - Submitting annual reports\n- **Sets fees** — up to $1,000 for new licence applications and up to $500 for renewals or transfers.\n- **Recognises equivalent laws** from other Australian states and territories.\n\n**Who it affects:**\n- Farmers and businesses wanting to grow industrial hemp\n- Researchers studying hemp\n- Manufacturers using hemp in products\n- Government inspectors and the Secretary of the Department who administers the scheme\n\n**Why it matters:**\nIndustrial hemp is legal to grow in NSW but is strictly controlled because of its relationship to cannabis. This Regulation creates the practical framework that allows a legal hemp industry to operate while preventing diversion to illegal drug use. It balances industry development with law enforcement concerns through detailed record-keeping, testing requirements, and compliance monitoring."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/hemp-industry-regulation-2016","history":"/api/acts/hemp-industry-regulation-2016/history","analysis":"/api/acts/hemp-industry-regulation-2016/analysis","conflicts":"/api/acts/hemp-industry-regulation-2016/conflicts","importantCases":"/api/acts/hemp-industry-regulation-2016/important-cases","documents":"/api/acts/hemp-industry-regulation-2016/documents"}}