<?xml version='1.0' encoding='utf-8'?>
<subtitle num="01" heading="Office of the Secretary" title_num="15" title_heading="Maryland Department of Agriculture">
  <chapter num="01" heading="Procedural Regulations">
    <regulation prefix="Regulation" num=".01" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Contested case” means a proceeding before the Department as provided under the Administrative Procedure Act, State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Department” means the Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Secretary” means:</text>
          <paragraph num="(a)">
            <text>The Secretary of Agriculture or the Secretary's designee; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>If a unit of the Department is authorized to conduct hearings, the head of that unit or the unit head's designee.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Procedural Regulations — Promulgation of Regulations.">
      <paragraph num="A.">
        <text>Unless otherwise designated by statute, these procedures will be followed with respect to the promulgation of all regulations.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Regulation Adoption and Declaratory Rulings.</text>
        <paragraph num="(1)">
          <text>Secretary of the Department. The Secretary of Agriculture is responsible for adopting the regulations of the Department. He shall review, and approve, disapprove, or revise the regulations of all units within the jurisdiction of the Department.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Adoption of Regulations. New, amended, revised, or repealed regulations shall be proposed and adopted on a regular or emergency basis, as prescribed by the State Documents Law and the Administrative Procedures Act.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Petition for the Adoption of Regulations.</text>
          <paragraph num="(a)">
            <text>Who May File. Any interested person may file a petition with the Secretary, requesting the promulgation, amendment, or repeal of any regulation.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Form. The petition shall be in writing and shall contain a brief statement of the regulation, or reference to the regulation, amendment, or repeal which is sought, and a statement of any proposed amendment. The petition should contain a brief statement of reasons in support of the proposed regulation or change and shall contain the name, address, and telephone number of the petitioner.</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Submission, Consideration, and Disposition. The petition shall be filed with the Secretary for his consideration and disposition. The Secretary shall either deny the petition in writing, stating the reasons for his denial, or initiate appropriate regulation-making procedures according to his decision.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>Petition for Declaratory Ruling.</text>
          <paragraph num="(a)">
            <text>Who May File. Any interested person may file with the Secretary a petition for a declaratory ruling with respect to the applicability to any person, corporation, property, or statement of facts of any statute or Departmental regulation pertaining to the Department's activities.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Form. The petition shall:</text>
            <paragraph num="(i)">
              <text>Be in writing:</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Contain a detailed statement of the facts which are applicable to the regulation or statute in question;</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>Pose the question of whether, and in what manner, the stated regulation or statute applies to the facts contained in the petition;</text>
            </paragraph>
            <paragraph num="(iv)">
              <text>Contain the name, address, and telephone number of the petitioner; and</text>
            </paragraph>
            <paragraph num="(v)">
              <text>Contain a statement by the petitioner, under oath, that the facts contained in the petition are true to the best of his knowledge, information, and belief.</text>
            </paragraph>
          </paragraph>
          <paragraph num="(c)">
            <text>Submission, Consideration, and Disposition. The petition shall be filed with the Secretary for his consideration and disposition. The Secretary shall consider the petition and may issue the declaratory ruling requested. The Secretary shall notify the petitioner in writing of whatever action he may decide to take, stating the reasons for his decision.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(5)">
          <text>The Secretary shall:</text>
          <paragraph num="(a)">
            <text>Set the date and place of all hearings;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Give notice as provided here;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Preside at all hearings;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Receive all views and data, either written or oral, pertaining to proposed action of the Department.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Procedural Regulations — Contested Cases.">
      <paragraph num="A.">
        <text>Notice of Agency Action.</text>
        <paragraph num="(1)">
          <text>In a contested case, the Department shall give reasonable notice of the agency's action.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The notice shall state:</text>
          <paragraph num="(a)">
            <text>The facts that are asserted or if they cannot be stated in detail when the notice is given, the issues that are involved;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The pertinent statutory and regulatory sections under which the Department is taking its action;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The sanction proposed or potential penalty, if any, as a result of the Department's action;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The opportunity of the recipient of the notice to request a hearing, specifying:</text>
            <paragraph num="(i)">
              <text>What, if anything, the person shall do to receive a hearing; and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>All relevant time requirements; and</text>
            </paragraph>
          </paragraph>
          <paragraph num="(e)">
            <text>The direct consequences, sanction, or potential penalty, if any, of the recipient's failure to exercise in a timely manner the opportunity for a hearing or, if a hearing is scheduled, the recipient's failure to appear at that hearing.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Request for Hearing.</text>
        <paragraph num="(1)">
          <text>A person may request a hearing by mailing or delivering a clear written request in the manner and within the time frame specified in the Notice of Agency Action.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A request for hearing shall be considered filed on the date that the request is actually received in any office of the Department.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>Default.</text>
        <paragraph num="(1)">
          <text>The Department may issue a default order if:</text>
          <paragraph num="(a)">
            <text>The recipient of the notice fails to exercise in a timely manner the opportunity for a hearing; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A hearing has been scheduled, and the recipient fails to appear at that hearing.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>On motion filed within 15 days after the date of the default order, the Department may, on good cause shown, vacate or modify the default order and set the case in for further proceedings as appropriate.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The Department may issue a default decision and order, and impose the proposed sanction if:</text>
          <paragraph num="(a)">
            <text>The recipient fails to file a motion within the time frame specified in §C(2) of this regulation; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The motion is denied.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Hearings.</text>
        <paragraph num="(1)">
          <text>The Secretary shall preside as hearing officer at all hearings.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Unless otherwise specified by law, the Department shall notify all parties to a contested hearing at least 10 days before the scheduled hearing.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Any party to a hearing may be represented by counsel. The party or his counsel shall notify the hearing officer of the name, address, and telephone number of the counsel at least 5 days before the date of the hearing.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Before the hearing and upon the specific request, in writing, of any party, or his counsel, the hearing officer may furnish at his office, for inspection or copying, any documents or other material relating to the matter at issue, or mail copies of the material upon request to the party. The cost shall be borne by the requesting party.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>The hearing officer may provide a stenographer or furnish an electric transcription device for any hearing. Any party may request a copy of the proceedings of the hearing at his own expense.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>At any contested hearing, a representative of the Department or other moving party shall present the case for the party first, and the other party or parties, or counsel for them, may cross-examine each witness for the Department or other moving party. The other party or parties to the hearing shall thereafter present evidence, subject to cross-examination. The parties and the Department shall be permitted to present additional evidence at any time during the hearing, and shall be permitted to present oral arguments at the close of all the evidence.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>The hearing officer, at his discretion, may postpone the hearing for any reason upon request of any party, his counsel, or Department official.</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Failure to appear at the hearing at the time and place designated in the notice, or designated by the hearing officer in the event of postponement, shall be deemed a default on the part of any party, other than the hearing officer, and the hearing officer may take the action set forth in the notice without further hearing.</text>
        </paragraph>
        <paragraph num="(9)">
          <text>Within 30 days after the hearing record is closed, the hearing officer shall prepare a written decision and mail it to the last known address of each party. The 30-day period provided in this subsection is directory and no penalty shall incur if this time limitation is not satisfied. The mailing date of the hearing officer’s decision to a party constitutes notice of the decision.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Review by the Secretary.</text>
        <paragraph num="(1)">
          <text>Except as provided by law, a person aggrieved by a decision of a position or unit within the Department after a contested case hearing or default decision that is subject to judicial review under the Administrative Procedure Act, may file a written statement with the Secretary requesting review of that decision setting forth the nature of the complaint and the relevant facts and argument.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The aggrieved person shall file the written statement with the Secretary within 30 days from either the date of the written decision issued under §D(9) of this regulation or any default decision. The time restrictions imposed by this subsection is mandatory and any written statement filed beyond 30 days may not be considered.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The Secretary may require the aggrieved person to pay the costs of compiling the record of the decision to be reviewed, including the cost to transcribe testimony, if any.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Within 90 days after receiving the complete record, the Secretary shall investigate any claim made in the written statement, review the record, issue a decision in writing, and send a copy to each party. The 90-day period provided in this subsection is not mandatory; however, any delay beyond the 90-day period operates as an automatic denial by the Secretary.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>The Secretary may affirm, reverse, or modify any written decision issued by any position or unit within the Department, including any default decision. The decision of the Secretary shall be the final agency decision or action for purposes of judicial review under the Administrative Procedure Act.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>A party aggrieved by the final decision of the Secretary may file a petition for judicial review with the appropriate circuit court as required by the Maryland Rules of Civil Procedure.</text>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>Administrative Procedure Act. In addition to the foregoing regulations, the Administrative Procedure Act in the State Government Article, Annotated Code of Maryland, shall govern the practice and procedure in all hearings and appeals.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-103; State Government Article, §10-206; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: May, 1967</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective April 4, 1978 (5:8 Md. R. 588); adopted permanently effective July 14, 1978 (5:14 Md. R. 1138)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02D, E adopted as an emergency provision effective December 19, 1977 (4:27 Md. R. 2099); adopted permanently effective April 7, 1978 (5:7 Md. R. 524)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective August 15, 2006 (33:18 Md. R. 1502); revised permanently effective December 18, 2006 (33:25 Md. R. 1952)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03 amended effective June 6, 2016 (43:11 Md. R. 635)</annotation>
    </annotations>
  </chapter>
  <chapter num="02" heading="Distribution of Funds for the Maintenance of Drainage Systems for Agricultural Land">
    <regulation prefix="Regulation" num=".01" heading="Cost Sharing.">
      <text>The Secretary of Agriculture may provide up to 50 percent of the cost necessary to maintain drainage outlet systems for the draining of agricultural land constructed pursuant to Article 25, §§52—59 (Public Drainage Associations) and §§169—218 (Public Watershed Associations), Annotated Code of Maryland.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Requirements for Application for Cost Sharing.">
      <text>An association wishing to be considered for cost sharing pursuant to this chapter shall make written application to the Secretary as provided by the Department and shall conform to the following requirements:</text>
      <paragraph num="A.">
        <text>Each association shall be active with a currently elected board of managers.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Each association shall have adopted and implemented an operations and maintenance program which provides for the regular maintenance of that association's drainage outlet systems.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Each association, upon application for assistance, shall submit an operations and maintenance plan for the maintenance of drainage outlet systems, for which cost sharing is requested. This plan shall include cost estimates and shall have been approved by the local soil conservation district in the year of application.</text>
      </paragraph>
      <paragraph num="D.">
        <text>Each association shall submit a written commitment indicating the source of the funds to be matched.</text>
      </paragraph>
      <paragraph num="E.">
        <text>Each association shall have the continuing duty to keep all drainage improvements in good repair.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Criteria for Allocation of Cost Sharing Funds.">
      <paragraph num="A.">
        <text>Cost sharing for the maintenance of drainage outlet systems for agricultural land will be limited to the control of vegetation and removal of channel obstructions as follows:</text>
        <paragraph num="(1)">
          <text>Control of vegetation will be limited to control of herbaceous growth or removal of shrubs or small trees which do not exceed 4 inches in diameter at breast height.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Movement of earth will be limited to:</text>
          <paragraph num="(a)">
            <text>Cleaning of sediment traps or construction of sediment traps as is considered necessary by the soil conservation district.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Removal of material which does not change the original design of the channel, or constitute a major channel reconstruction or realignment. The original design shall be maintained and removal of material may not exceed 6 inches below the original design grade of the channel.</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Placement of soil shall be as specified by the soil conservation district.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>The Secretary may provide funds for use in each county based on the mileage of ditches in each county applied for by associations and approved by districts as compared to the total mileage applied for in the State.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Associations which have received funds in prior years will receive a lower priority for cost sharing purposes than those which have not. A higher priority may be given where other funds, above the required 50 percent, are available from other sources such as county cost sharing funds.</text>
      </paragraph>
      <paragraph num="D.">
        <text>In establishing priorities for the purpose of cost sharing for drainage outlet systems, the Secretary may consider other criteria which will promote the control of vegetation, the removal of channel obstructions, and debris from drainage outlet systems for the draining of agricultural land.</text>
      </paragraph>
      <paragraph num="E.">
        <text>The Secretary may provide funds through a soil conservation district.</text>
      </paragraph>
      <paragraph num="F.">
        <text>Funds are allocated for use within 12 months of the date made available to the association. The association will verify to the Secretary the expenditure of State funds and the amount of local matching funds.</text>
      </paragraph>
      <paragraph num="G.">
        <text>Work for which funds are provided shall be verified by the soil conservation district for compliance with the district approved operations and maintenance plan. Any change from the plan must be approved by the soil conservation district.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §§2-103 and 8-602, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: October 6, 1978 (5:20 Md. R. 1501)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .02C and .03A, B amended effective February 15, 1982 (9:3 Md. R. 222)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03E-G adopted effective February 15, 1982 (9:3 Md. R. 222)</annotation>
    </annotations>
  </chapter>
  <chapter num="03" heading="Approval of the Secretary of Agriculture for the Giving Away of Live Animals as Prizes">
    <regulation prefix="Regulation" num=".01" heading="Permission of the Secretary.">
      <paragraph num="A.">
        <text>The Secretary of Agriculture is responsible for approving the giving away of a live animal (vertebrate) in the following cases when given:</text>
        <paragraph num="(1)">
          <text>As a prize or an inducement to enter a contest, game, or other competition; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>As an inducement to enter a place of amusement;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>As an incentive to enter into a business agreement when an animal is offered for the purpose of attracting trade.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Approval for giving away a live animal is not required when the animal is given away:</text>
        <paragraph num="(1)">
          <text>As an agricultural project;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>For a conservation purpose;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>For slaughter.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Requests for Approval.">
      <paragraph num="A.">
        <text>Requests for approval to give an animal away shall be submitted in writing to the Secretary and shall provide details which clearly describe the following:</text>
        <paragraph num="(1)">
          <text>The applicant's efforts to provide the animal with a sanitary environment;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The type of food the animal will be provided and at what intervals the animal will be fed and, when appropriate, watered;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>What effort the applicant shall make to ensure that an animal is kept healthy and in good condition;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The locations and dates where the giveaway is to occur, for example, the location of the fair and when the fair will take place; and</text>
        </paragraph>
        <paragraph num="(5)">
          <text>When appropriate, a description of the container that the recipient will be provided to transport the animal.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Unless the applicant provides all of the details required under this regulation, the Secretary shall deny the request.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Approval of Requests.">
      <paragraph num="A.">
        <text>In deciding whether to give an applicant permission to give an animal away, the Secretary will judge each application on a case-by-case basis depending on the needs of each animal.</text>
      </paragraph>
      <paragraph num="B.">
        <text>To receive the Secretary's approval of the request to give away live animals, the applicant shall comply with the following requirements:</text>
        <paragraph num="(1)">
          <text>The applicant shall treat humanely all animals to be given away;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The applicant may not give an animal to a person who does not want it;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The applicant shall take steps to ensure that the animal is kept healthy and in good condition, including but not limited to the following:</text>
          <paragraph num="(a)">
            <text>Provide the animal with a sanitary environment, for example, that the container holding the animal is cleaned regularly and maintained in a sanitary condition,</text>
          </paragraph>
          <paragraph num="(b)">
            <text>When appropriate, provide potable water to the animal, and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Feed the animal nutritious food in sufficient quantities;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>The applicant may not give away an animal that is not in good health;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>The applicant shall inform the recipient of an animal that the applicant will care for the animal until the recipient leaves the event in which the giveaway is occurring, for example, the fair;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>The applicant shall give the recipient or winner a coupon which may be used to redeem the animal at the time the recipient or winner departs from the event, for example, the fair;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>For each recipient of an animal, the applicant shall provide written instructions on how to care for the animal and, when appropriate, a suitable container to transport the animal; and</text>
        </paragraph>
        <paragraph num="(8)">
          <text>The applicant shall permit the Secretary or the Secretary's agent to examine an animal that is to be given away.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>If the Secretary approves the giving away of an animal, the approval shall be in writing and retained on the premises where the animal is to be given away.</text>
      </paragraph>
      <paragraph num="D.">
        <text>Violations.</text>
        <paragraph num="(1)">
          <text>Except as provided in §D(2) of this regulation, if a person violates the terms of an approval, or provides inaccurate information to the Secretary, an approval may be revoked after a hearing as provided by regulations of the Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The Department may summarily suspend its approval if it finds that the safety or welfare of an animal under the applicant's care requires emergency action and promptly gives the applicant:</text>
          <paragraph num="(a)">
            <text>Written notice of the suspension, the finding, and the reasons that support the finding; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>An opportunity to be heard.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Criminal Law Article, §10-610, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: June 15, 1979 (6:12 Md. R. 1052)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02 amended effective July 6, 1992 (19:13 Md. R. 1203); January 2, 1994 (20:26 Md. R. 2028); August 12, 1996 (23:16 Md. R. 1176)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03 amended effective August 12, 1996 (23:16 Md. R. 1176)</annotation>
    </annotations>
  </chapter>
  <chapter num="04" heading="Public Information Act Requests">
    <regulation prefix="Regulation" num=".01" heading="Scope.">
      <text>This chapter sets out procedures under the Public Information Act for filing and processing requests to the Department of Agriculture for the inspection and copying of public records of the Department.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Policy.">
      <text>It is the policy of the Department to facilitate access to the public records of the Department, when access is allowed by law, by minimizing costs and time delays to applicants.</text>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Act” means the Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Board” has the meaning stated in General Provisions Article, §4-101(c), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Copy” means any form of reproduction using a photocopying machine or other reproduction technology, including a paper copy, an electronic copy, a printout, or an image.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Department” means the Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Indigent” has the meaning stated in General Provisions Article, §4-206(a)(2), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(8)">
          <text>“Metadata” has the meaning stated in General Provisions Article, §4-205(a), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(9)">
          <text>“Official custodian” has the meaning stated in General Provisions Article, §4-101(f), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(10)">
          <text>“PIA Coordinator” means the Department employee who is responsible for accepting requests for public records.</text>
        </paragraph>
        <paragraph num="(11)">
          <text>“Public Access Ombudsman” means the official appointed under General Provisions Article, Title 4, Subtitle 1B, to resolve disputes under the Act.</text>
        </paragraph>
        <paragraph num="(12)">
          <text>“Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(13)">
          <text>“Reasonable fee” has the meaning stated in General Provisions Article, §4-206(a)(3), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(14)">
          <text>“Secretary” means the Secretary of Agriculture.</text>
        </paragraph>
        <paragraph num="(15)">
          <text>“Working day” means a day other than Saturday, Sunday, or a State holiday.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Secretary as Official Custodian.">
      <text>Unless otherwise provided by law, the Secretary is the official custodian of the public records of the Department.</text>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Who May Request Public Records.">
      <text>Any person may request to inspect or copy public records of the Department.</text>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Necessity for Written Request.">
      <paragraph num="A.">
        <text>Inspection.</text>
        <paragraph num="(1)">
          <text>Except as otherwise provided in this chapter, the custodian shall make public records of the Department available for inspection by an applicant without demanding a written request.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The custodian shall require a written request if the custodian reasonably believes that:</text>
          <paragraph num="(a)">
            <text>The Act or any other law may prevent the disclosure of one or more public records to the applicant; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A written request will materially assist the Department in responding.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Copies. If the applicant requests one or more copies of any public records of the Department, the custodian may require a written request.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Contents of Written Request.">
      <text>A written request shall:</text>
      <paragraph num="A.">
        <text>Contain the applicant’s name and address;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Be signed by the applicant; and</text>
      </paragraph>
      <paragraph num="C.">
        <text>Reasonably identify, by brief description, the public record sought.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Addressee.">
      <text>A request to inspect or copy a public record of the Department shall be addressed to the custodian of the record. If the custodian is unknown, the request may be addressed to the Secretary or the PIA Coordinator.</text>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Response to Request.">
      <paragraph num="A.">
        <text>Custodian’s Initial Responsibilities.</text>
        <paragraph num="(1)">
          <text>If the custodian decides to grant a request for inspection, the custodian shall produce the public record for inspection:</text>
          <paragraph num="(a)">
            <text>Immediately; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Within a reasonable time period, not to exceed 30 days after the date of the request, if that period is needed to retrieve the public record and conduct any necessary review.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>If the custodian reasonably believes that it will take more than 10 working days to produce the record, the custodian shall indicate in writing or by electronic mail within 10 working days after receipt of the request:</text>
          <paragraph num="(a)">
            <text>The amount of time that the custodian anticipates it will take to produce the public record;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>An estimate of the range of fees that may be charged to comply with the request for public records; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The reason why it will take more than 10 working days to produce the records.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>If the custodian decides to deny a request for inspection, the custodian shall:</text>
        <paragraph num="(1)">
          <text>Deny the request within 30 days after the request; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Immediately notify the applicant of the denial.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>If a request is denied, the custodian shall provide the applicant, at the time of the denial or within 10 working days, a written statement that gives:</text>
        <paragraph num="(1)">
          <text>The reason for denial, including, for records denied under General Provisions Article, §4-343, Annotated Code of Maryland, a brief explanation of:</text>
          <paragraph num="(a)">
            <text>Why denial is necessary; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Why the harm from disclosure of the public record would be greater than the public interest in providing access to the information in the public record such that disclosure of the public record would be contrary to the public interest;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The legal authority for the denial;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Without disclosing the protected information, a brief description of the undisclosed records that will enable the applicant to assess the applicability of the legal authority for the denial; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Notice of the remedies available for review of the denial.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>If a requested public record is not in the custody or control of the person to whom application is made, that person shall, within 10 working days after receipt of the request, notify the applicant:</text>
        <paragraph num="(1)">
          <text>That the person does not have custody or control of the requested public record; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>If the person knows, of:</text>
          <paragraph num="(a)">
            <text>The name of the custodian of the public record; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The location or possible location of the public record.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Any time limit imposed by §§A—C of this regulation may be extended:</text>
        <paragraph num="(1)">
          <text>With the consent of the applicant, for an additional period of up to 30 days; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>For the period of time during which a dispute initiated by the applicant is pending before the Public Access Ombudsman.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Notice to and Consideration of Views of Person Potentially Affected by Disclosure.">
      <paragraph num="A.">
        <text>Unless prohibited by law, the custodian may provide notice of a request for inspection or copying of any public record of the Department to any person, who in the judgment of the custodian, could be adversely affected by disclosure of that public record.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The custodian may consider the views of the potentially affected person before deciding whether to disclose the public record to the applicant.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".11" heading="Electronic Records.">
      <paragraph num="A.">
        <text>Except as provided in §§C and D of this regulation, the custodian shall provide an applicant with a copy of the public record in a searchable and analyzable electronic format if:</text>
        <paragraph num="(1)">
          <text>The public record is in a searchable and analyzable electronic format;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The applicant requests a copy of the public record in a searchable and analyzable electronic format; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The custodian is able to provide a copy of the public record, in whole or in part, in a searchable and analyzable electronic format that does not disclose information that is exempt from disclosure under the Act.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>The custodian shall provide a portion of the public record in a searchable and analyzable electronic format if:</text>
        <paragraph num="(1)">
          <text>Requested by the applicant; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The custodian is able to do so by using the existing functions of the database or software program that contains the searchable and analyzable data.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The custodian is not required to:</text>
        <paragraph num="(1)">
          <text>Create or reconstruct a public record in an electronic format if the public record is not available in an electronic format; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Release an electronic record in a format that would jeopardize or compromise the security or integrity of the original record or of any proprietary software in which the record is maintained.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>The custodian may remove metadata from an electronic document before providing the electronic record to an applicant by:</text>
        <paragraph num="(1)">
          <text>Using a software program or function; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Converting the electronic record into a different searchable and analyzable format.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".12" heading="Public Record Destroyed or Lost.">
      <text>If the custodian knows that a requested public record has been destroyed or lost, the custodian shall promptly:</text>
      <paragraph num="A.">
        <text>Notify the applicant that the public record is not available; and</text>
      </paragraph>
      <paragraph num="B.">
        <text>Explain the reasons why the public record cannot be produced.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".13" heading="Review of Denial.">
      <paragraph num="A.">
        <text>If the custodian denies a request to inspect or copy a public record of the Department, the applicant may file an action for judicial enforcement under General Provisions Article, §4-362, Annotated Code of Maryland, without pursuing the remedies set forth in §§B and C of this regulation.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If the custodian charges a fee of more than $350 under Regulation .15 of this chapter, the applicant may, within 90 days after the date the fee is imposed, file a written complaint with the Board under General Provisions Article, §4-1A-05(a), Annotated Code of Maryland.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The applicant and the custodian each may contact the Public Access Ombudsman to resolve, under General Provisions Article, Title 4, Subtitle 1B, Annotated Code of Maryland, a dispute relating to requests for public records.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".14" heading="Disclosure Against Public Interest.">
      <paragraph num="A.">
        <text>Denial Pending Court Order.</text>
        <paragraph num="(1)">
          <text>If, in the opinion of the Secretary, disclosure of a public record of the Department otherwise subject to disclosure under the Act would do substantial injury to the public interest, the Secretary may temporarily deny the request and seek a court order allowing continued nondisclosure.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A temporary denial shall be in writing.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Circuit Court Review.</text>
        <paragraph num="(1)">
          <text>Within 10 working days after the denial, the Secretary shall apply to the appropriate circuit court for an order permitting continued denial or restriction of access.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Notice of the Secretary’s complaint shall be served on the applicant in the manner provided for service of process by the Maryland Rules.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".15" heading="Fees.">
      <paragraph num="A.">
        <text>The fee schedule for copying and certifying copies of public records of the Department is as follows:</text>
        <paragraph num="(1)">
          <text>Copies.</text>
          <paragraph num="(a)">
            <text>The fee for each copy made by a standard printer or photocopying or scanning machine with the Department is 25 cents per page.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The fee for each copy made otherwise shall be based on the actual cost of reproduction.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Certification of Copies. If a person requests that a copy of a public record be certified as a true copy, an additional fee of $1 per page (or if appropriate, per item) shall be charged.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Minimum Fee. No charge will be made if the total fee is $10 or less.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Notwithstanding §A of this regulation, if the fee for copies or certified copies of any public record of the Department is specifically set by a law other than the Act or this regulation, the custodian shall charge the prescribed fee.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If the custodian cannot copy a public record within the Department, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Department. The custodian shall:</text>
        <paragraph num="(1)">
          <text>Collect from the applicant a fee to cover the actual cost of reproduction; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Before copying a public record of the Department, the custodian shall estimate the cost of reproduction and either:</text>
        <paragraph num="(1)">
          <text>Obtain the agreement of the applicant to pay the cost; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Require prepayment of all or a portion of the cost.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Search and Preparation Fee.</text>
        <paragraph num="(1)">
          <text>Except as provided in §F of this regulation, the custodian may charge a reasonable fee for time that an official employee of the Department spends:</text>
          <paragraph num="(a)">
            <text>To search for requested public records;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Review requested public records for inspection and copying; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>To prepare public records for inspection and copying.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The custodian shall determine the fee under §E(1) of this regulation by multiplying the employee’s salary, prorated to an hourly basis, by the actual time attributable to the search for, review of, and preparation of public records for inspection and copying.</text>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>The custodian may not charge a fee under §E of this regulation for the first 2 hours spent searching for and preparing a public record for inspection.</text>
      </paragraph>
      <paragraph num="G.">
        <text>Waiver or Reduction of Fee.</text>
        <paragraph num="(1)">
          <text>The official custodian may waive or reduce any fee set under this regulation if:</text>
          <paragraph num="(a)">
            <text>The applicant requests a waiver; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Either:</text>
            <paragraph num="(i)">
              <text>The custodian determines that the waiver or reduction is in the public interest; or</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>The applicant is indigent and files an affidavit verifying the facts that support a claim of indigency.</text>
            </paragraph>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>In determining whether a fee is in the public interest, the custodian shall consider, among other relevant factors, the ability of the applicant to pay the fee.</text>
        </paragraph>
      </paragraph>
      <paragraph num="H.">
        <text>If the applicant requests that copies of a public record be mailed or delivered to the applicant or to a third party, the custodian may charge the applicant for the cost of postage or delivery.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".16" heading="Time and Place of Inspection.">
      <paragraph num="A.">
        <text>An applicant may inspect any public record of the Department that the applicant is entitled to inspect during the normal working hours of the Department.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The inspection shall occur where the public record is located, unless the custodian, after taking into account the applicant’s express wish, determines that another place is more suitable and convenient.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-103; General Provisions Article, §§4-101—4-601; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: August 17, 1981 (8:16 Md. R. 1367)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.08, .10—.16 amended effective April 4, 1988 (15:7 Md. R. 852)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .17 adopted effective May 6, 1985 (12:9 Md. R. 814)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.17 repealed and new Regulations .01—.16 adopted effective February 10, 2020 (47:3 Md. R. 172)</annotation>
    </annotations>
  </chapter>
  <chapter num="05" heading="Cost Sharing — Water Pollution Control Program">
    <regulation prefix="Regulation" num=".01" heading="General.">
      <text>This chapter explains the State's cost sharing program to assist eligible applicants in implementing certain agricultural practices which will lessen water pollution caused by nutrients, sediment, animal wastes, or agricultural chemicals. Under this program, grants are made to farmers for the primary purpose of conserving soil and water resources and for protecting or restoring the environment for the public benefit.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Best management practice” means a conservation or pollution control practice that manages soil loss due to farming practices or manages animal wastes or agricultural chemicals so as to minimize movement into the surface waters of the State.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“County Soil Survey” means a report developed by the United States Department of Agriculture, Natural Resource Conservation Service, for each county which identifies soil types.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Critical condition” means a condition on land where there is or there may be a high potential for the movement of pollutants from nutrients, sediment, animal wastes, or agricultural chemicals into the waters of the State.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Department” means the Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“District” means a soil conservation district.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Eligible cost” means a capital expenditure for installing, purchasing, or constructing a best management practice or fixed natural filter practice, including, but not limited to, the cost of pollution control equipment, animal waste facilities, water control structures, diversion facilities, sediment basins or grade stabilization structures, establishing permanent vegetative cover, or a contour, strip-cropping, terrace, or conservation tillage system of farming. It does not include the cost of land or interests in land, or the costs of operating or maintaining best management practices.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Fixed natural filter practice” means one of the following practices:</text>
          <paragraph num="(a)">
            <text>The planting of riparian forest buffers;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The planting of riparian herbaceous cover;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Tree plantings that are:</text>
            <paragraph num="(i)">
              <text>On agricultural land; or</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Outside a riparian buffer;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(d)">
            <text>Wetland restoration; or</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Pasture management, including rotational grazing systems such as livestock fencing and watering systems implemented as part of the conversion of cropland to pasture.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(8)">
          <text>“Geographic area” means a watershed or major portion of a watershed which contains or has a high potential for containing priority areas.</text>
        </paragraph>
        <paragraph num="(9)">
          <text>“Improved conservation benefit” means an improvement in the condition of the soil, water, or other such natural resource of the State, and includes, among other beneficial effects, improved water quality, improved soil health, reduced soil loss, and restored wetlands.</text>
        </paragraph>
        <paragraph num="(10)">
          <text>“Natural resource concern” means the expected degradation of the soil, water, or other resource base to the extent that the sustainability or intended use of the resource is impaired, and includes, among other concerns, soil erosion, soil quality degradation, water quality degradation, and excess water.</text>
        </paragraph>
        <paragraph num="(11)">
          <text>“Nutrient management plan” means a plan prepared by a State-certified nutrient management consultant to manage the amount, placement, timing, and application of animal waste, fertilizer, biosolids, sewage sludge, or other plant nutrients in order to prevent pollution and to maintain the productivity of the soil. Requirements for plan content, recommendations, maintenance, updates, and record keeping are further defined under COMAR 15.20.08.</text>
        </paragraph>
        <paragraph num="(12)">
          <text>“Person” means an individual, partnership, corporation, trust, or other business enterprise which as an owner, landlord, or tenant, participates in the operation of a farm.</text>
        </paragraph>
        <paragraph num="(13)">
          <text>“Pooling agreement” means a written agreement between persons approved by the Secretary, to perform best management practices and which is intended to solve a mutual pollution problem on different farms.</text>
        </paragraph>
        <paragraph num="(14)">
          <text>“Priority area” means an area where a critical condition exists.</text>
        </paragraph>
        <paragraph num="(15)">
          <text>“Project” means a project to prevent or control agriculturally related nonpoint source water pollution by establishing best management practices on a farm.</text>
        </paragraph>
        <paragraph num="(16)">
          <text>“Secretary” means the Secretary of Agriculture or the Secretary’s designee.</text>
        </paragraph>
        <paragraph num="(17)">
          <text>“Waters of the State” means both surface and underground waters within the boundaries of the State subject to its jurisdiction, including that portion of the Atlantic Ocean within the boundaries of the State, the Chesapeake Bay and its tributaries, and all ponds, lakes, rivers, streams, public ditches, tax ditches, and public drainage systems within the State, other than those designed and used to collect, convey, or dispose of sanitary sewage.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Program Eligibility — Priority and Geographic Areas for Water Pollution Control.">
      <paragraph num="A.">
        <text>A person who operates a farm in a priority area as designated in this regulation is eligible to apply for financial assistance for one or more projects under the State's cost share program for water pollution control.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The following geographic areas within this State are identified by watershed name and watershed segment number because they are likely to contain priority areas for water pollution control:</text>
        <paragraph num="(1)">
          <text>The following watersheds in the Middle Potomac River Basin:</text>
          <paragraph num="(a)">
            <text>Double Pipe Creek (02-14-03-04);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Upper Monacacy River (02-14-03-03);</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Catoctin Creek (02-14-03-05);</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Lower Monacacy River (02-14-03-02);</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Direct drainage to the Potomac River between the Monocacy and Shenandoah Rivers (02-14-03-01);</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The following watersheds in the Upper Potomac River Basin:</text>
          <paragraph num="(a)">
            <text>Antietam Creek (02-14-05-02);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Conococheague Creek (02-12-05-04);</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>The Seneca Creek Watershed in the Potomac River Washington Metro Area (02-14-02-08);</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The Deer Creek Watershed in the Lower Susquehanna River Basin (02-12-02-02);</text>
        </paragraph>
        <paragraph num="(5)">
          <text>The Sassafras River Watershed in the Elk River Basin (02-13-06-10);</text>
        </paragraph>
        <paragraph num="(6)">
          <text>The following watersheds in the Chester River Basin:</text>
          <paragraph num="(a)">
            <text>Miles River (02-13-05-02);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Wye River (02-13-05-03);</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Middle Chester River (02-13-05-09);</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Upper Chester River (02-13-05-10);</text>
          </paragraph>
        </paragraph>
        <paragraph num="(7)">
          <text>The following watersheds in the Pocomoke River Basin:</text>
          <paragraph num="(a)">
            <text>Nassawango Creek (02-13-02-05);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Lower Pocomoke River (02-13-02-02);</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Manokin River (02-13-02-08);</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Upper Pocomoke River (02-13-02-03);</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Dividing Creek (2-13-02-04);</text>
          </paragraph>
        </paragraph>
        <paragraph num="(8)">
          <text>The following watersheds in the Choptank River Basin:</text>
          <paragraph num="(a)">
            <text>Upper Choptank (02-13-04-04);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Lower Choptank (02-13-04-03;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Tuckahoe Creek (02-13-04-05);</text>
          </paragraph>
        </paragraph>
        <paragraph num="(9)">
          <text>The following watersheds in the Nanticoke/Wicomico River Basin:</text>
          <paragraph num="(a)">
            <text>Lower Wicomico (02-13-03-01);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Nanticoke River (02-13-03-05);</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Marshy Hope Creek (02-13-03-06);</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Wicomico Creek (02-13-03-03);</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Transquaking River (02-13-03-08);</text>
          </paragraph>
        </paragraph>
        <paragraph num="(10)">
          <text>The South Branch Patapsco Watershed in the Patapsco River Basin (02-13-09-08);</text>
        </paragraph>
        <paragraph num="(11)">
          <text>The following reservoir watersheds:</text>
          <paragraph num="(a)">
            <text>Loch Raven (02-13-08-05);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Prettyboy (02-13-08-06);</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Liberty (02-13-09-07); and</text>
          </paragraph>
        </paragraph>
        <paragraph num="(12)">
          <text>All watersheds in the Patuxent River Basin (02-13-11-xx).</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>State Cost Share Funds Shall be Made Available Only in a Priority Area.</text>
        <paragraph num="(1)">
          <text>A priority area is an area:</text>
          <paragraph num="(a)">
            <text>Within a geographic area located within 1,000 feet of the surface waters of the State where critical conditions exist;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Within a geographic area located more than 1,000 feet from the surface waters of the State provided a severe agricultural pollution problem exists;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Outside a geographic area located within 1,000 feet of the surface waters of the State where critical conditions exist; or</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Outside a geographic area located more than 1,000 feet from the surface waters of the State provided a severe agricultural pollution problem exists.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>In determining the existence of critical conditions, the Department shall place emphasis on evidence that water runoff is carrying or has the potential to carry any pollutants from nutrients, sediment, animal wastes, or agricultural chemicals to the waters of the State. In addition, the Department shall consider the following criteria in designating a priority area:</text>
          <paragraph num="(a)">
            <text>Whether the area has a serious soil loss due to sheet, rill, gully, or wind erosion;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Whether the area has severely eroded soils as designated by erosion symbol 3 in the county soil survey;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Whether the area is designated as a land use capability class IIIe or higher, including all areas in class C slopes or greater, as designated by the county soil survey;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Whether the area is included in a land use capability subclass S, as designated by the county soil survey; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Whether critical conditions exist near the surface waters of the State.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>The following documents are incorporated by reference. They are available for review at each soil conservation district office. These documents are:</text>
          <paragraph num="(a)">
            <text>Soil Survey of Allegany County;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Soil Survey of Anne Arundel County;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Soil Survey of Baltimore County;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Soil Survey of Calvert County;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Soil Survey of Caroline County;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>Soil Survey of Carroll County;</text>
          </paragraph>
          <paragraph num="(g)">
            <text>Soil Survey of Cecil County;</text>
          </paragraph>
          <paragraph num="(h)">
            <text>Soil Survey of Charles County;</text>
          </paragraph>
          <paragraph num="(i)">
            <text>Soil Survey of Dorchester County;</text>
          </paragraph>
          <paragraph num="(j)">
            <text>Soil Survey of Frederick County;</text>
          </paragraph>
          <paragraph num="(k)">
            <text>Soil Survey of Garrett County;</text>
          </paragraph>
          <paragraph num="(l)">
            <text>Soil Survey of Harford County;</text>
          </paragraph>
          <paragraph num="(m)">
            <text>Soil Survey of Howard County;</text>
          </paragraph>
          <paragraph num="(n)">
            <text>Soil Survey of Kent County;</text>
          </paragraph>
          <paragraph num="(o)">
            <text>Soil Survey of Montgomery County;</text>
          </paragraph>
          <paragraph num="(p)">
            <text>Soil Survey of Prince George's County;</text>
          </paragraph>
          <paragraph num="(q)">
            <text>Soil Survey of Queen Anne's County;</text>
          </paragraph>
          <paragraph num="(r)">
            <text>Soil Survey of St. Mary's County;</text>
          </paragraph>
          <paragraph num="(s)">
            <text>Soil Survey of Somerset County;</text>
          </paragraph>
          <paragraph num="(t)">
            <text>Soil Survey of Talbot County;</text>
          </paragraph>
          <paragraph num="(u)">
            <text>Soil Survey of Washington County;</text>
          </paragraph>
          <paragraph num="(v)">
            <text>Soil Survey of Wicomico County; and</text>
          </paragraph>
          <paragraph num="(w)">
            <text>Soil Survey of Worcester County.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>A landowner who engages in an agricultural operation is eligible to receive cost share assistance for the preparation and the implementation of a nutrient management plan project provided that landowner is a State-certified nutrient management consultant or uses technical assistance from a private State-certified and licensed nutrient management consultant.</text>
      </paragraph>
      <paragraph num="E.">
        <text>Any nutrient management plan project shall comply with the following:</text>
        <paragraph num="(1)">
          <text>If the person is using commercial fertilizer, as defined by Agriculture Article, §6-201(f), Annotated Code of Maryland, the plan shall be based on both nitrogen and phosphorus as limiting nutrients; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>If the person is using animal manure, the plan:</text>
          <paragraph num="(a)">
            <text>May be based on nitrogen as the only limiting nutrient if developed before July 1, 2004; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Shall be based on phosphorus as the limiting nutrient in accordance with COMAR 15.20.07.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>A person receiving cost share assistance for nutrient management plan development shall implement the plan in accordance with deadlines set forth in COMAR 15.20.07.04.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Application Procedures.">
      <paragraph num="A.">
        <text>A person may apply for cost sharing funds for a project on a Departmental request form provided by each local district.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Upon request by the applicant, the district shall complete a project technical determination form which shall include an approximate project cost figure. For projects other than nutrient management plans, the district shall recommend whether a critical condition exists on a farm. Cost figures for nutrient management plan development may be calculated by a State-certified and licensed nutrient management consultant using State-designated flat rates.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The district shall forward both forms to the Department for review.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Application Review and Approval.">
      <paragraph num="A.">
        <text>The Department to Approve or Disapprove an Application.</text>
        <paragraph num="(1)">
          <text>If the Department approves a project, it shall base the amount of State cost sharing on:</text>
          <paragraph num="(a)">
            <text>The existence of a critical condition;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Water quality improvements to be achieved, with consideration given to the cumulative effect of other projects on the same body of water;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Excepting riparian forest buffers, riparian herbaceous cover, wetland restoration, or pasture management, the estimated reduction of soil loss;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The estimated reduction of pollution from animal waste;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The estimated economic benefit to the participating farmer from use of the best management practice;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>Use of the most cost-effective best management practice;</text>
          </paragraph>
          <paragraph num="(g)">
            <text>For pasture management, the applicable rate established by the U.S. Department of Agriculture’s Environmental Quality Incentives Program; and</text>
          </paragraph>
          <paragraph num="(h)">
            <text>For the planting of multiple species of cover crops, the rate shall equal or exceed the rates paid for the planting of a single species of cover crop.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The Department shall disapprove an application for any of the following reasons:</text>
          <paragraph num="(a)">
            <text>The applicant seeks to reestablish agricultural practices which have deteriorated due to the negligence or mismanagement of an applicant;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The applicant seeks funding for a conservation practice that does not:</text>
            <paragraph num="(i)">
              <text>Address a natural resource concern identified by the U.S. Department of Agriculture’s Natural Resources Conservation Service; or</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Result in an improved conservation benefit;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(c)">
            <text>The application is incomplete or does not comply with these regulations;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The applicant's land is not a farm or is not used for agricultural purposes;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The application is for a farm where a critical condition does not exist;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>The application is for a project which is already under construction; or</text>
          </paragraph>
          <paragraph num="(g)">
            <text>No available funds.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Within 30 days, the Department shall notify both the applicant and the district if an application is approved, and the applicant shall be notified of the estimated State cost sharing amount for the project and the applicant's required matching amount.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Technical Assistance by the District.">
      <text>Upon application approval and notice by the Department, the applicant shall request the district to prepare or approve all design, construction, maintenance, or other plans for the project. The district shall provide any necessary layout and construction supervision. The district shall prepare a technical report along with its final estimate of project cost and send it to the applicant and to the Department.</text>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Cost Sharing Agreement.">
      <paragraph num="A.">
        <text>After a technical report of the project has been submitted to the Department by the district, the Department, with the approval of the Board of Public Works (when proceeds of State bonds are used to finance the State share), the district and the applicant shall execute an agreement. The agreement, among other things, shall obligate the applicant to:</text>
        <paragraph num="(1)">
          <text>Establish, construct, or install one or more best management practices in accordance with district technical specifications;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Maintain the best management practice for its expected life span;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Bind any successor in title for the life of the project as specified in the agreement;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Provide any required funds for the project; and</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Grant the Department, if it requests, a security interest in any equipment, structures, or similar items purchased with State cost sharing funds.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Before the Department executes a cost sharing agreement with a farm tenant, it shall obtain the consent of the landlord to the terms and conditions of the agreement.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Project Establishment.">
      <paragraph num="A.">
        <text>After all parties execute a cost sharing agreement, and upon notice to the local district by the applicant, an applicant shall begin the approved project.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The applicant shall be responsible for all steps in completing the project, including, but not limited to, obtaining any necessary permits and the services of contractors, or obtaining any necessary materials or equipment to complete project construction.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The applicant shall provide the Department with a copy of the nutrient management plan immediately upon its final preparation when submitting a claim for payment for cost share assistance.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Project Supervision.">
      <paragraph num="A.">
        <text>A district shall periodically inspect the construction or installation of any project to ensure that it complies with district technical specifications.</text>
      </paragraph>
      <paragraph num="B.">
        <text>An applicant shall agree to allow district, Department, and U.S. Department of Agriculture—Natural Resource Conservation Service representatives reasonable access to the project site for the purpose of site inspection and for reviewing the applicant's project records.</text>
      </paragraph>
      <paragraph num="C.">
        <text>In order to verify implementation of the nutrient management plan project, the applicant shall agree to allow a Department representative access to the:</text>
        <paragraph num="(1)">
          <text>Project site; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Applicant's project records.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Distribution of Cost Sharing Funds.">
      <paragraph num="A.">
        <text>A person who executes a cost sharing agreement shall do all of the following before making a claim for payment to the Department:</text>
        <paragraph num="(1)">
          <text>A person shall document all eligible costs on an itemized statement and submit it to the district for approval. Each itemized cost shall be supported by payment receipts or unpaid invoices from vendors. Each receipt shall be signed by the person who executes a cost share agreement and certified that each cost is true and correct to the best of that person's knowledge;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Each payment receipt or unpaid invoice shall show the following:</text>
          <paragraph num="(a)">
            <text>Vendor, or vendors names;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Type of material, labor, or equipment used on the project; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The unit cost paid for the item, the total amount paid to the vendor, and the date payment was received.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>The total amount of any claim for payment shall be shown clearly on a separate line on the face of the receipt. If receipts include items which were not used on the approved project, a person shall delete those items and adjust any total on the receipt.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>After a project has been completed, a person shall complete a departmental claim for payment form, which is available from a district.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The district shall certify to the Department that the project meets all applicable standards and specifications. The district shall also certify to the Department that a person's claim for payment properly represents all eligible costs. Only a State-certified nutrient management consultant may certify that a nutrient management plan meets all applicable standards and specifications.</text>
      </paragraph>
      <paragraph num="D.">
        <text>The Department shall distribute cost sharing funds only after it has determined that the project or best management practice has been established, or in the case of equipment, structures, or similar items, that it has been received and properly installed.</text>
      </paragraph>
      <paragraph num="E.">
        <text>Distribution.</text>
        <paragraph num="(1)">
          <text>General Rule. The Department may distribute cost sharing funds for a project up to 100 percent of eligible costs, subject to the restrictions in §E(2)—(4) of this regulation.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Single Projects Other than Animal Waste Storage or Treatment Projects. The payment made under this program for a single non-waste storage or treatment project not covered by a pooling agreement may not exceed $150,000, and the payment for a single non-waste storage or treatment project covered by a pooling agreement may not exceed $200,000.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Animal Waste Storage or Treatment Projects.</text>
          <paragraph num="(a)">
            <text>The payment made under this program for a single animal waste storage or treatment project may not exceed $200,000.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The total payment made for all animal waste storage or treatment projects located on a farm or farms that a person owns or operates or in which the person has a controlling interest may not exceed $450,000 whether the person installed the project or a predecessor-in-title installed the project. This rule does not apply to an animal waste storage or treatment project that is no longer subject to an active agreement with the Department.</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The payment for an animal waste storage or treatment project:</text>
            <paragraph num="(i)">
              <text>Shall address an existing resource concern; and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>If it is for a start-up poultry or livestock operation or the expansion of a poultry or livestock operation, may not exceed 50 percent of the eligible cost.</text>
            </paragraph>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>Nutrient Management Plans. The payment made under this program for a nutrient management plan may be for up to 87-1/2 percent of eligible costs which may include soil, plant tissue, and manure analysis. Payment made for the nutrient management plan project is not included in the maximum total cost share allowed per person.</text>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>If total cost sharing funds available from all sources exceed the State's maximum cost share rate for a project, the State's share shall be adjusted or prorated so as not to exceed the State's rate.</text>
      </paragraph>
      <paragraph num="G.">
        <text>If actual costs are less than the estimated costs contained in the agreement, the payment may not exceed the cost share rate based on the actual costs.</text>
      </paragraph>
      <paragraph num="H.">
        <text>If actual costs are more than the estimated costs contained in the agreement, the payment may be based on the actual cost if the Department approves the overrun and if funds are available.</text>
      </paragraph>
      <paragraph num="I.">
        <text>Payment may be made either to the person when the person has advanced money, or directly to a vendor or contractor in accordance with the agreement.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".11" heading="Project Monitoring.">
      <paragraph num="A.">
        <text>After the Department has distributed cost sharing funds, the district or the Department shall monitor projects to see if they are maintained in accordance with the agreement. Any violations shall be reported by the district to the Department.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The district shall maintain a complete record of technical assistance provided to persons under the cost sharing program. These records will be available to the Department upon request.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".12" heading="Failure to Establish or Maintain Best Management Practices.">
      <text>If a person fails to establish, install, construct, or maintain a best management practice in accordance with any agreement executed with the Department, that person shall be liable for the full amount of State cost sharing funds paid for any practice that was not implemented or maintained. However, a person is not liable for inadequate maintenance or destruction of a best management practice if caused by an act of nature that could not be reasonably anticipated.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §§2-103, 8-703, 8-704, and 8-803.1, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: June 6, 1983 (10:11 Md. R. 978)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective October 23, 1998 (25:24 Md. R. 1771); amended permanently effective February 8, 1999 (26:3 Md. R. 175)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective November 1, 2000 (27:23 Md. R. 2145); amended permanently effective February 5, 2001 (28:2 Md. R. 100)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended effective December 24, 2012 (39:25 Md. R. 1615)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02M adopted and .03B, C amended as an emergency provision effective January 29, 1986 (13:4 Md. R. 393); emergency status expired May 15, 1986; adopted permanently effective July 13, 1986 (13:14 Md. R. 1635)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective December 8, 2020 (48:1 Md. R. 9); amended permanently effective May 17, 2021 (48:10 Md. R. 401)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03D—F adopted as an emergency provision effective October 23, 1998 (25:24 Md. R. 1771); adopted permanently effective February 8, 1999 (26:3 Md. R. 175)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .03B and .10E amended as an emergency provision effective February 7, 1992 (19:4 Md. R. 469); amended permanently effective August 3, 1992 (19:15 Md. R. 1393)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03D—F amended as an emergency provision effective November 1, 2000 (27:23 Md. R. 2145); amended permanently effective February 5, 2001 (28:2 Md. R. 100)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04B amended as an emergency provision effective October 23, 1998 (25:24 Md. R. 1771); amended permanently effective February 8, 1999 (26:3 Md. R. 175)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .05A amended as an emergency provision effective October 23, 1998 (25:24 Md. R. 1771); amended permanently effective February 8, 1999 (26:3 Md. R. 175)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .05A amended as an emergency provision effective December 8, 2020 (48:1 Md. R. 9); amended permanently effective May 17, 2021 (48:10 Md. R. 401)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .08C adopted as an emergency provision effective October 23, 1998 (25:24 Md. R. 1771); adopted permanently effective February 8, 1999 (26:3 Md. R. 175)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .09B amended effective December 24, 2012 (39:25 Md. R. 1615)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .09C adopted as an emergency provision effective October 23, 1998 (25:24 Md. R. 1771); adopted permanently effective February 8, 1999 (26:3 Md. R. 175)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10C, E amended as an emergency provision effective October 23, 1998 (25:24 Md. R. 1771); amended permanently effective February 8, 1999 (26:3 Md. R. 175)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended as an emergency provision effective August 24, 1995 (22:19 Md. R. 1469); emergency status extended at 22:26 Md. R. 2028; amended permanently effective January 15, 1996 (23:1 Md. R. 35)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended effective April 19, 1999 (26:8 Md. R. 618)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended as an emergency provision effective October 1, 1999 (26:20 Md. R. 1543); amended permanently effective February 21, 2000 (27:3 Md. R. 327)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended as an emergency provision effective November 1, 2000 (27:23 Md. R. 2145); amended permanently effective February 5, 2001 (28:2 Md. R. 100)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended as an emergency provision effective August 15, 2006 (33:18 Md. R. 1503); amended permanently effective December 18, 2006 (33:25 Md. R. 1952)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended effective December 24, 2012 (39:25 Md. R. 1615)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended as an emergency provision effective July 30, 2021 (48:17 Md. R. 665); amended permanently effective October 18, 2021 (48:21 Md. R. 892)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended effective May 2, 2022 (49:9 Md. R. 531)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .10E amended as an emergency provision effective January 1, 2024 (51:3 Md. R. 153); amended permanently effective April 15, 2024 (51:7 Md. R. 334)</annotation>
    </annotations>
  </chapter>
  <chapter num="06" heading="Correction or Amendment of Public Records">
    <regulation prefix="Regulation" num=".01" heading="Scope.">
      <text>This chapter sets out procedures under which a person in interest may request the correction or amendment of public records of the Maryland Department of Agriculture.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Act” means the Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Custodian has the meaning stated in General Provisions Article, §4-101 (d), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Department” means the Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“Person in interest” has the meaning stated in General Provisions Article, §4-101(g), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Secretary” means the Secretary of Agriculture.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Who May Request.">
      <text>A person in interest may request that the Department correct or amend any public record that:</text>
      <paragraph num="A.">
        <text>The Department keeps; and</text>
      </paragraph>
      <paragraph num="B.">
        <text>The person in interest is authorized to inspect.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Contents of Request.">
      <paragraph num="A.">
        <text>A person in interest shall make a request to correct or amend a public record in writing.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The request shall:</text>
        <paragraph num="(1)">
          <text>Identify the public record to be corrected or amended;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>State the precise correction or amendment requested;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>State the reason for the correction or amendment; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Include a statement that, to the best of the requester’s belief, the public record is inaccurate or incomplete.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Addressee.">
      <text>A request to correct or amend a public record shall be addressed to the custodian of the record. If the custodian is unknown, the request may be addressed to the Secretary.</text>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Return of Nonconforming Request.">
      <paragraph num="A.">
        <text>The Department shall accept a request to correct or amend a public record when it is received if it reasonably complies with Regulations .04 and .05 of this chapter.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If the request does not reasonably comply with Regulations .04 and .05 of this chapter, the Department shall return the request to the requester with:</text>
        <paragraph num="(1)">
          <text>An explanation of the reason for the return; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A statement that, on receipt of a request that reasonably complies with Regulations .04 and .05 of this chapter, the request will be accepted.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Response to Request.">
      <text>Within 30 days after the Department receives a request for correction or amendment that reasonably complies with Regulations .04 and .05 of this chapter, the custodian shall:</text>
      <paragraph num="A.">
        <text>Make the requested correction or amendment, and inform the requester in writing of the action; or</text>
      </paragraph>
      <paragraph num="B.">
        <text>Inform the requester in writing that the Department will not:</text>
        <paragraph num="(1)">
          <text>Make the requested correction or amendment, and the reason for the refusal; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Act on the request because:</text>
          <paragraph num="(a)">
            <text>The requester is not a person in interest;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The requestor is not authorized to inspect the record; or</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Of any other reason authorized by law.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Refusal of Request.">
      <text>If the Department refuses to make a requested correction or amendment, a person in interest may file with the Department a concise statement of the reasons for:</text>
      <paragraph num="A.">
        <text>The requested correction or amendment; and</text>
      </paragraph>
      <paragraph num="B.">
        <text>The person’s disagreement with the refusal of the Department to make the correction or amendment.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Requirements for Statement of Disagreement.">
      <text>The statement submitted under Regulation .08 of this chapter shall:</text>
      <paragraph num="A.">
        <text>Be on pages no larger than 8.5 x 11 inches in size;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Use only one side of each page; and</text>
      </paragraph>
      <paragraph num="C.">
        <text>Consist of no more than five pages.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Provide Statement of Disagreement.">
      <text>If a person in interest files a statement of disagreement concerning a public record under Regulations .08 and .09 of this chapter, the Department shall provide a copy of the statement whenever the Department discloses the public record to a third party.</text>
    </regulation>
    <regulation prefix="Regulation" num=".11" heading="Administrative Review.">
      <paragraph num="A.">
        <text>person may request administrative review under this regulation if the Department:</text>
        <paragraph num="(1)">
          <text>Has refused the person’s request to correct or amend a public record under Regulation .07 of this chapter;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Has rejected the person’s statement of disagreement under Regulation .08 of this chapter; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Has not provided a statement of disagreement to a third party under Regulation .10 of this chapter.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>A request for review shall be filed with the Secretary within 30 days after the requester is advised of the Department’s action.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The review proceedings shall be conducted in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and the administrative hearing regulations of the Department.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-103; General Provisions Article, §4-502; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: February 27, 1984 (11:4 Md. R. 318)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.10 under chapter, Correction or Amendment of Personal Records repealed and new Regulations .01—.11 under new chapter, Correction or Amendment of Public Records adopted effective February 10, 2020 (47:3 Md. R. 172)</annotation>
    </annotations>
  </chapter>
  <chapter num="07" heading="Aquaculture Grant Program">
    <regulation prefix="Regulation" num=".01" heading="General.">
      <text>These regulations explain the Aquaculture Grant Program.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Purpose.">
      <text>The purpose of the Aquaculture Grant Program is to provide matching funds for wastewater facilities for private aquaculture operations. This program will help Maryland aquafarmers design and construct devices that will reduce wastewater discharge or treat effluent to comply with water quality standards established by the Maryland Department of the Environment and the federal Environmental Protection Agency.</text>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Who May Apply.">
      <text>A person with an aquaculture project that meets the program objectives as contained in this chapter may apply to the Department for a matching aquaculture grant.</text>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Application Contents.">
      <paragraph num="A.">
        <text>An application shall contain the following, with each section beginning on a separate sheet of paper:</text>
        <paragraph num="(1)">
          <text>Title page, which shall contain the following:</text>
          <paragraph num="(a)">
            <text>The project title;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The requested grant amount;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>A statement of the funding phase, that is, design and testing, or construction and use;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The county where the aquaculture project is located; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The applicant's name and signature, address and phone number, or name and signature of the applicant's authorized representative, if any.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Project description, which shall include:</text>
          <paragraph num="(a)">
            <text>The project's objective;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A short, general summary, of approximately 300—400 words, of the proposed project;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The project's design description, including drawings, as appropriate;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>How the project will be operated and tested to meet the program objective or objectives as provided in Regulation .05A(1)(c) of this chapter;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>An identification of the way in which the wastewater will be discharged and where, including the body of water, if any, receiving the wastewater;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>Any other information the applicant believes necessary for the Department's complete review of the proposed project.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>Project Budget.</text>
          <paragraph num="(a)">
            <text>The applicant shall contribute at least 50 percent to the cost of any project.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The application shall contain a proposed budget for the project, identifying all sources and uses of money, and the estimated value of the applicant's other contributions to the cost of the project, such as goods and labor.</text>
          </paragraph>
          <paragraph num="(c)">
            <text>An applicant's labor contribution shall be based on the value of any salary paid for necessary labor, including benefits.</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Any contribution of equipment shall be for equipment necessary for the project.</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The applicant shall provide the Department with budget information in the following areas:</text>
            <paragraph num="(i)">
              <text>Labor;</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Travel;</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>Equipment;</text>
            </paragraph>
            <paragraph num="(iv)">
              <text>Testing; and</text>
            </paragraph>
            <paragraph num="(v)">
              <text>Other necessary costs for the project.</text>
            </paragraph>
          </paragraph>
          <paragraph num="(f)">
            <text>The budget shall include a proposed beginning and an ending date for the project.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>Resumes.</text>
          <paragraph num="(a)">
            <text>Each applicant shall include a resume, and resumes of key personnel involved in the project.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>All resumes shall include the educational background and the experience of the applicant and key personnel as these relate to the project.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>An applicant shall submit the application to the Maryland Department of Agriculture, Aquaculture Office, 50 Harry S Truman Parkway, Annapolis, Maryland 21401.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Application Review and Approval.">
      <paragraph num="A.">
        <text>The Department shall approve or disapprove an application as follows:</text>
        <paragraph num="(1)">
          <text>The Department shall approve projects in the order in which applications are received, if funds are available, and if in the Department's judgment:</text>
          <paragraph num="(a)">
            <text>The scientific and engineering objectives of the project are reasonable;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The technological aspects of the project are appropriate and feasible;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Project plans are adequate to fulfill one or more of the following grant program objectives:</text>
            <paragraph num="(i)">
              <text>Water conservation,</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Water recirculation,</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>Nutrient discharge reduction,</text>
            </paragraph>
            <paragraph num="(iv)">
              <text>Solids reduction,</text>
            </paragraph>
            <paragraph num="(v)">
              <text>Thermal pollution abatement;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(d)">
            <text>The applicant agrees to pay at least 50 percent of the cost of an aquaculture project.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The Department shall disapprove an application for any of the following reasons:</text>
          <paragraph num="(a)">
            <text>The application is incomplete or does not comply with these regulations.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Funds are not available. Any application disapproved for this reason may be held for consideration by the Department for the next fund cycle.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>The Department shall notify the applicant if an application is approved or disapproved. If the application is approved, the applicant shall be notified of the amount of the State grant for the project and the applicant's required matching amount.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Grant Agreement.">
      <text>Upon approval of an application by the Department, the applicant shall execute an agreement. The agreement, among other things, shall obligate the applicant to:</text>
      <paragraph num="A.">
        <text>Establish and operate an aquaculture project according to project specifications;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Provide any required funds for the project;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Bind any successor in title for the life of the project;</text>
      </paragraph>
      <paragraph num="D.">
        <text>Maintain records as required;</text>
      </paragraph>
      <paragraph num="E.">
        <text>Allow the Department to monitor the project to determine that the project is constructed and operated in accordance with any agreement.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Distribution of Grant.">
      <paragraph num="A.">
        <text>The Department may disburse funds for a project up to 50 percent of eligible costs or $15,000, whichever is less.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Grant funds shall be distributed as follows:</text>
        <paragraph num="(1)">
          <text>One third of the grant shall be awarded to the applicant following the execution of the cost-sharing agreement.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>One third of the grant shall be awarded to the applicant when the project begins operation. The Department shall verify the operation before payment.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>One third of the grant shall be awarded to the applicant following receipt of a project final report prepared by the applicant. The final report shall contain:</text>
          <paragraph num="(a)">
            <text>An evaluation of the degree to which the project meets grant program objectives as provided in Regulation .05A(1)(c), including test results;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>An accounting of the disbursement of all funds with an itemized list of costs associated with the project;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The date and the signature of the applicant certifying that the information presented is true and correct to the best of that person's knowledge.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>If actual costs are less than the estimated costs contained in the agreement, the payment may not exceed the cost share rate based on the actual costs.</text>
      </paragraph>
      <paragraph num="D.">
        <text>If actual costs are more than the estimated costs contained in the agreement, the payment may be based on the actual cost if the Department approves the overrun and if funds are available.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Project Monitoring.">
      <text>After the Department has distributed funds, the Department shall monitor projects to see if the projects are in accordance with the agreement.</text>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Failure to Establish or Operate a Project.">
      <text>If a person fails to establish or operate a project in accordance with any agreement executed with the Department, that person shall be liable for the full amount of State funds paid for any project that was not implemented.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Chapter 14, Laws of Maryland 1989</annotation>
      <annotation type="History" subtype="Administrative History">Effective date:</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01--.09 adopted as an emergency provision effective February 9, 1990 (17:5 Md. R. 634); emergency status expired June 11, 1990; adopted permanently effective June 25, 1990 (17:12 Md. R. 1494)</annotation>
    </annotations>
  </chapter>
  <chapter num="08" heading="Conflicts of Interest Policy for Employees Who Own or Operate a Farm">
    <regulation prefix="Regulation" num=".01" heading="Scope.">
      <text>The Maryland Department of Agriculture's State agriculture programs benefit from the specialized knowledge of employees who own or operate a farm. This chapter explains the Department's policy governing conflicts of interest relating to financial interest and secondary employment for employees who work for the Department and at the same time own or operate a farm that is subject to the Department's regulatory authority.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Required Employee Disclosure.">
      <text>An individual who applies for employment, or who is employed by the Department, shall disclose whether that individual or employee owns, has an ownership interest in, or operates a farm.</text>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Employment Participation Restrictions.">
      <text>A Department employee may not participate, as a part of that employee's duties, in any of the following matters if that participation in any way affects the employee's farm, or a farm that directly competes for business with the employee's farm operation:</text>
      <paragraph num="A.">
        <text>Any contract with the Department;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Any regulatory or enforcement action;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Any Department program that controls, or in any way regulates the employee's farm operation; or</text>
      </paragraph>
      <paragraph num="D.">
        <text>Any matter that will have a direct and predictable effect on the employee's financial interest in the employee's farm operation, including such a matter involving:</text>
        <paragraph num="(1)">
          <text>The employees' spouse, or immediate family;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>An outside employer or prospective employer of the employee;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>An organization in which the employee serves as an officer, director, or general partner; or</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Any person with whom the employee has or seeks a business, contractual, or other financial relationship.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Ethics Law Restrictions.">
      <paragraph num="A.">
        <text>Any Department employee who owns or operates a farm is subject to all applicable provisions of the Ethics Law.</text>
      </paragraph>
      <paragraph num="B.">
        <text>For example, the Ethics Law, in part, prohibits employees from participating in matters in which the employee or a relative has a financial or other interest under State Government Article, §15-501, Annotated Code of Maryland.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The Ethics Law contains restrictions on:</text>
        <paragraph num="(1)">
          <text>Post-employment, under State Government Article, §15-504, Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Gifts, under State Government Article, §15-505, Annotated Code of Maryland; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Procurement, under State Government Article, §15-508, Annotated Code of Maryland.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>The Ethics Law precludes employees from intentionally using the prestige of their position to benefit themselves or others, under State Government Article, §15-606, Annotated Code of Maryland, and State Government Article, §2-307, Annotated Code of Maryland.</text>
      </paragraph>
      <paragraph num="E.">
        <text>The Ethics Law precludes disclosure or use of confidential information acquired by reason of the employee's public position and not yet available to the public:</text>
        <paragraph num="(1)">
          <text>For personal economic benefit; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>For the economic benefit of another, unless the confidential information is released in the discharge of an official duty, under State Government Article, §15-507, Annotated Code of Maryland.</text>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>In accordance with State Government Article, §15-601, Annotated Code of Maryland, employees may be subject to financial disclosure provisions and may be required to file annual statements if identified as being required to file under that section.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Department Responsibilities.">
      <text>The Department is responsible for:</text>
      <paragraph num="A.">
        <text>Making each employee aware of the requirements of this chapter;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Ensuring that each employee who has an outside farm business acknowledges that the employee has read and agrees to be bound by the requirements of this chapter;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Ensuring that each employee subject to this chapter has executed a nonparticipation agreement with the Department that requires the employee to designate a representative to interact with the Department on matters involving the employee's farming business, and directs the employee to acknowledge that the employee may not participate in any way in any decision regarding any complaint or question regarding their farming business;</text>
      </paragraph>
      <paragraph num="D.">
        <text>Keeping records for each employee who is subject to the requirements of this chapter; and</text>
      </paragraph>
      <paragraph num="E.">
        <text>Monitoring and enforcing employee compliance with the requirements of this chapter.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Noncompliance.">
      <text>An employee who violates this chapter is subject to disciplinary action, including termination from State service.</text>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Reports to the Ethics Commission.">
      <text>The Department shall provide copies of applicable nonparticipating agreements, and provide annual reports to the State Ethics Commission on the number of employees hired by the Department during any year who own or operate a farm that is subject to the Department's regulatory authority.</text>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Report to the General Assembly.">
      <text>On or before December 31, 2010, the Maryland Department of Agriculture and the State Ethics Commission shall jointly prepare and submit a report to the General Assembly, in accordance with State Government Article, §2-1246, Annotated Code of Maryland that includes:</text>
      <paragraph num="A.">
        <text>The number of employees hired by the Department, on or after October 1, 2007, who own or operate a farm;</text>
      </paragraph>
      <paragraph num="B.">
        <text>The positions for which the employees identified in this regulation were hired; and</text>
      </paragraph>
      <paragraph num="C.">
        <text>Information on how the Department addressed any conflict of interest or potential conflict of interest in hiring the employees identified in this regulation.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article §2-102(e), Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: March 8, 2010 (37:5 Md. R. 428)</annotation>
    </annotations>
  </chapter>
  <chapter num="09" heading="Advertising Agricultural Products as Local or Locally Grown">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <paragraph num="A.">
        <text>The purpose of this chapter is to require a person who advertises a particular agricultural product as local or locally grown to disclose certain information about the particular product. It applies to any person who, in advertising a particular agricultural product for sale in this State, represents the particular product to be local or locally grown, including, but not limited to, wholesalers, retail stores, farmers markets, and restaurants.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The purpose of the disclosure is to allow a consumer to make his or her own determination as to whether an agricultural product advertised as local conforms to the consumer’s own definition of local or locally grown.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Advertise” means to publish, circulate, disseminate, or place before the public in any way or through any medium.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Agricultural product” means raw meat, eggs, fish, fruits, vegetables, shellfish, and processed dairy products, intended for human consumption..</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Person” includes an individual, association, partnership, corporation, or any other business entity, or an agent or employee of an individual or entity.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Secretary” means the Secretary of Agriculture or the Secretary’s designee.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Prohibition and Disclosure Statement.">
      <text>A person may not advertise a particular agricultural product for sale as local or locally grown, or use any term that may lead a consumer to believe that the product is local or locally grown, including the term “regional”, unless the advertisement includes a disclosure of the place of origin, naming the state where the product was originally grown or raised, or in the case of fish or shellfish, the state where the product was raised or landed.</text>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Posting of Disclosure Statement.">
      <paragraph num="A.">
        <text>A person who is subject to the requirements of this chapter shall post in a clear and conspicuous manner the disclosure statement required by Regulation .03 of this chapter so that it can be seen easily by the consumer before the consumer buys or consumes the product about which the disclosure is made.</text>
      </paragraph>
      <paragraph num="B.">
        <text>A person subject to this chapter shall post the disclosure statement required by Regulation .03 of this chapter with or immediately adjacent to any advertisement representing that the product is local or locally grown.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If products sourced from different states of origin are intermingled for sale under a single advertisement, a person subject to this chapter shall post the disclosure statement required by Regulation .03 of this chapter for each state from which the intermingled products originated.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Documentation Requirement.">
      <text>Upon request by the Secretary, a person subject to the requirements of this chapter shall provide the Secretary with documentation that shows the state of origin for any agricultural product advertised for sale as local or locally grown.</text>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Penalty.">
      <text>A person who knowingly violates this chapter is guilty of a misdemeanor and is subject to a penalty provided in Agriculture Article, Title 12, Annotated Code of Maryland.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article §10-1701, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: June 27, 2011 (38:13 Md. R. 757)</annotation>
    </annotations>
  </chapter>
  <chapter num="10" heading="Spay/Neuter Grant Program">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>This chapter explains the requirements of the Spay/Neuter Grant Program. The purpose of this program, administered by the Maryland Department of Agriculture, is to reduce animal shelter overpopulation and cat and dog euthanasia rates by financing grants to local governments and animal welfare organizations for programs that most efficiently and effectively facilitate and promote spay and neuter services for cats and dogs.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Animal welfare organization” means a not-for-profit organization established to promote animal welfare that has received tax exempt status under 501(c)(3) of the U.S. Internal Revenue Code and is registered to do business in Maryland.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Department” means Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Fund” means the Spay/Neuter Fund.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Project” means an action plan that the applicant agrees to follow for spay and neuter services for cats and dogs.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“Spay/Neuter Advisory Board” means the Spay/Neuter Advisory Board of the Department.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Who May Apply for Grants.">
      <text>Only the following may apply for a grant under this chapter:</text>
      <paragraph num="A.">
        <text>A municipal or county government; or</text>
      </paragraph>
      <paragraph num="B.">
        <text>An animal welfare organization.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Grant Application Contents.">
      <text>A qualified applicant who applies for a grant shall apply on a departmental form that includes, among other things, the following:</text>
      <paragraph num="A.">
        <text>The project title;</text>
      </paragraph>
      <paragraph num="B.">
        <text>The applicant’s name and contact information;</text>
      </paragraph>
      <paragraph num="C.">
        <text>The qualifications of the applicant and the personnel who will work on the project, including veterinary services, if applicable;</text>
      </paragraph>
      <paragraph num="D.">
        <text>The amount of the grant requested; and</text>
      </paragraph>
      <paragraph num="E.">
        <text>A project description, which shall include:</text>
        <paragraph num="(1)">
          <text>The project’s objectives and expected outcomes;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A work plan and budget summary of the proposed project;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>How the project meets the purposes of the Fund and the requirements of the grant; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Any additional information required by the Department.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Application Review and Approval.">
      <paragraph num="A.">
        <text>The Department shall solicit one or more times annually, depending on available funding, competitive grant proposals to facilitate the delivery of spay and neuter services. It is the Department’s intent to select the best proposals that most efficiently and effectively facilitate and promote the provision of those services and target low-income communities and populations to the maximum extent possible.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The Department shall provide guidelines and detailed instructions for submitting a proposal for the Department’s consideration.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The Department shall rank applications based on the following:</text>
        <paragraph num="(1)">
          <text>The Department shall rank eligible applications and select for funding those that most effectively and efficiently achieve the purpose of the Fund; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>In determining which projects to fund, the Department will consider:</text>
          <paragraph num="(a)">
            <text>How low-income communities and populations are targeted and how the goal of reaching those communities and populations will be accomplished;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>How well the project proposal identifies and assesses the need for additional spay and neuter services in the targeted community or population, and how effectively and efficiently the project will meet that need;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Whether a proposal targeting feral cat populations violates local law;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>How the project proposal identifies and meets the need to promote spay/neuter services to the targeted population or community through education and outreach;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The extent to which the project increases the number of spay/neuter procedures in Maryland and impacts animal shelter over-population and cat and dog euthanasia rates;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>The expected project results relative to the amount of funds requested;</text>
          </paragraph>
          <paragraph num="(g)">
            <text>The qualifications and experience of the applicant and the individuals who will be responsible for implementing the project; and</text>
          </paragraph>
          <paragraph num="(h)">
            <text>The recommendations of the Spay Neuter Advisory Board.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Grant Agreement.">
      <text>Upon approval of a grant application by the Department, the applicant on a Departmental form, shall execute a grant agreement that, among other things, requires the applicant to:</text>
      <paragraph num="A.">
        <text>Establish and operate the project according to the project description;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Maintain and provide records and reports as required to the Department; and</text>
      </paragraph>
      <paragraph num="C.">
        <text>Use grant funds for only those activities provided in the approved project application.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Distribution of Grant.">
      <text>The Department shall distribute grants, unless otherwise provided in the grant agreement, as follows:</text>
      <paragraph num="A.">
        <text>50 percent of the grant will be disbursed after receipt of an executed grant agreement and after receipt of any required documentation; and</text>
      </paragraph>
      <paragraph num="B.">
        <text>The remaining 50 percent of the grant will be disbursed after receipt of the 2nd quarter report that is due 180 days after the grant cycle begins.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Project Monitoring and Reporting.">
      <paragraph num="A.">
        <text>The recipient of a spay/neuter grant shall:</text>
        <paragraph num="(1)">
          <text>Keep and maintain complete and accurate records of all activities connected with the grant;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Report relevant information to the Department on how the grant was used to date, including data on the number and type of spay or neuter procedures performed, and such other information as requested by the Department;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Submit a final report, to the Department, both narrative and financial, within 30 days after the conclusion of the grant cycle, or upon completion of the project, whichever comes first. The final report shall be in a form as required by the Department, and shall include:</text>
          <paragraph num="(a)">
            <text>Data on the number of spay and neuter procedures performed under the grant;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A description of any public education and outreach efforts implemented;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>An evaluation of the degree to which the project’s objectives and expected outcomes were met;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>A detailed accounting of the disbursement of all funds; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Any other information required by the Department; and</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>Notify the Department in writing immediately of any significant change to the grant application or any funded grant activity.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Failure to report as required by this regulation may jeopardize future grants to the grant recipient, and may result in the grant recipient being required to repay current grant funds.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Penalties.">
      <text>If the Department determines that the grant recipient has violated the grant agreement or that grant funds have not been used for their intended purpose as provided in the grant agreement, the Department may:</text>
      <paragraph num="A.">
        <text>Discontinue any future grant payments;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Require the grant recipient to repay immediately to the Department the full amount of the grant, or a portion of the grant; and</text>
      </paragraph>
      <paragraph num="C.">
        <text>Deny any future grant eligibility to the grant recipient.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Spay/Neuter Fund.">
      <paragraph num="A.">
        <text>Any person who registers a commercial feed under Agriculture Article, §6-107, Annotated Code of Maryland, that is prepared and distributed for consumption by a cat or dog shall:</text>
        <paragraph num="(1)">
          <text>Pay to the Department for use in the spay/neuter fund, the following fees for each registered brand or product:</text>
          <paragraph num="(a)">
            <text>From October 1, 2013, through September 30, 2014, inclusive — $50;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>From October 1, 2014, through September 30, 2015, inclusive — $75; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>After September 30, 2015 — $100; and</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Declare on each application for registration that the product is prepared and distributed for consumption by a cat or dog.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Any person who fails to pay any fees required by this regulation is subject to the standards, policies, and procedures for the collection of claims of the State pursuant to COMAR 17.01.01.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article §§2-1602 and 2-1605, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: June 23, 2014 (41:12 Md. R. 668)</annotation>
    </annotations>
  </chapter>
  <chapter num="11" heading="Animal Shelters — Minimum Standards of Care">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>The purpose of this chapter is to set forth minimum standards of care for the following animal shelters that keep dogs and cats:</text>
      <paragraph num="A.">
        <text>A shelter that is owned by a county or municipality;</text>
      </paragraph>
      <paragraph num="B.">
        <text>A shelter that a county or municipality contracts with for animal control services; or</text>
      </paragraph>
      <paragraph num="C.">
        <text>A shelter that has received a grant from the Maryland Spay and Neuter Grants Program during the previous year.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Animal” means a dog or a cat that is kept temporarily or permanently at an animal shelter.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Animal enrichment” means providing an animal with social contact, mental stimulation, physical activity and other activities that allow the animal to demonstrate species typical behavior and enhanced well-being.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Animal shelter” or “shelter” means a physical structure that provides temporary or permanent housing for animals and is owned by a local government, or by an organization that counties or municipalities contract with for animal control services, or by an organization that shelters animals and received a grant from the Maryland Spay and Neuter Grants Program during the previous year.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Department” means Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“Drop box” means an unattended receptacle where live animals can be placed by the public for later shelter intake.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Fully clean” means to disinfect an area or an item with chemical agents that kill harmful micro-organisms.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Primary animal enclosure” means any structure used consistently to restrict an animal to a limited amount of space, such as a room, pen, crate, cage, kennel, or compartment.</text>
        </paragraph>
        <paragraph num="(8)">
          <text>“Responsible individual” means the shelter’s responsible individual as defined by COMAR 15.14.04.06.</text>
        </paragraph>
        <paragraph num="(9)">
          <text>“Run” or “dog run” means a dedicated area, either indoors or outdoors, that is enclosed by a fence or gate, where dogs may move about untethered and unleashed.</text>
        </paragraph>
        <paragraph num="(10)">
          <text>“Spot clean” means to clean only a stain or spot and generally involves using mild cleaning agents, such as soaps and detergents.</text>
        </paragraph>
        <paragraph num="(11)">
          <text>“Transport carrier” means a portable enclosure designed to temporarily contain an animal that is being transported from one location to another.</text>
        </paragraph>
        <paragraph num="(12)">
          <text>“Veterinarian” means a veterinarian who is licensed, registered and in good standing with the Maryland State Board of Veterinary Medical Examiners.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Animal Shelter Buildings.">
      <text>The responsible individual shall ensure that the shelter is a safe, structurally sound, and sanitary building that meets the following standards:</text>
      <paragraph num="A.">
        <text>A shelter may not have any structural defects that could cause injury to animals or staff members handling animals;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Surfaces in animal areas, such as floors, junctions, walls, doors, shall be made of nonporous material that can easily be disinfected;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Ceilings shall be kept in good condition without leaks;</text>
      </paragraph>
      <paragraph num="D.">
        <text>All areas where animals are present shall have adequate ventilation and be kept between 60—80 degrees F;</text>
      </paragraph>
      <paragraph num="E.">
        <text>By July 1, 2019, all rooms where animals are housed shall have a fire alarm system that will alert authorities of fire or heavy smoke;</text>
      </paragraph>
      <paragraph num="F.">
        <text>A shelter shall have written policies and protocols in place to maintain adequate capacity to prevent and eliminate overcrowding; and</text>
      </paragraph>
      <paragraph num="G.">
        <text>Upon request, a shelter shall allow the Department to inspect the premises for compliance with this chapter.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Primary Animal Enclosures.">
      <paragraph num="A.">
        <text>The responsible individual shall ensure that any primary animal enclosure is structurally sound and maintained in a safe, working condition at all times; and that it enables animals to remain dry, clean, and shielded from extreme temperatures and weather conditions.</text>
      </paragraph>
      <paragraph num="B.">
        <text>A primary animal enclosure shall meet the following standards:</text>
        <paragraph num="(1)">
          <text>A primary animal enclosure shall provide sufficient space to allow each animal, regardless of size, to:</text>
          <paragraph num="(a)">
            <text>Hold their tails erect and their heads high when in a normal standing position;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Turn freely and easily stand, sit, stretch, and move their head, without touching the top of the enclosure;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Lie in a resting position with limbs extended; and</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Move about and assume a comfortable posture for feeding, drinking, urinating, or defecating;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Food, water bowls, and any other items in the primary animal enclosure may not impede the animal’s ability to stretch out;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A primary enclosure shall allow any animal to sit, sleep, and eat away from areas of its enclosure where it may defecate or urinate;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Latches or other closing devices on a primary animal enclosure shall be secure enough to keep the animal in the enclosure, keep other animals out of the enclosure, and prevent injury, while allowing personnel to easily open the enclosure from the outside and, where applicable, from inside the enclosure;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>A primary enclosure, temporary enclosure, and transport carriers that compromise the safety of animals or that have been identified as needing repair are prohibited from being used for permanent or temporary animal housing;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Transport carriers may not be used as a primary enclosure;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>All animals housed in outdoor areas, or allowed exercise time in outdoor areas, shall be provided with appropriate shelter from the elements; and</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Drop boxes are prohibited except under the following conditions:</text>
          <paragraph num="(a)">
            <text>Each drop box shall have automatic locking doors that allow only one animal drop-off to be made at each box;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Bedding and shelter from the weather shall be provided in each drop box, and bedding shall be fully cleaned before and after every use;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Fresh food and water shall be provided in each drop box every night, and food bowls and water bowls must be fully cleaned before and after every use;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Security cameras shall be installed and periodically monitored by staff;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The shelter shall have written protocols in place to ensure that dropped off animals that appear to need medical treatment are examined by a veterinarian immediately; and</text>
          </paragraph>
          <paragraph num="(f)">
            <text>An animal may not remain in a drop box for more than 12 hours.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Sanitation Practices.">
      <text>The responsible individual shall ensure that the shelter building, primary animal enclosures, and all other areas where animals are kept are sanitary and regularly cleaned to reduce disease transmission among animals, protect public human health, increase animal comfort, and meet the following standards:</text>
      <paragraph num="A.">
        <text>All primary animal enclosures, food bowls, and water bowls shall be fully cleaned before a new animal is placed in enclosures;</text>
      </paragraph>
      <paragraph num="B.">
        <text>All animal bedding shall be fully cleaned before being used by a new animal and subsequently fully cleaned, as often as necessary;</text>
      </paragraph>
      <paragraph num="C.">
        <text>All cages, food bowls, and water bowls shall be spot-cleaned daily and fully cleaned as necessary;</text>
      </paragraph>
      <paragraph num="D.">
        <text>All floors, junctions, walls, doors, and drains shall be immediately sanitized and fully cleaned after coming into contact with feces, urine, vomit, or an animal known or suspected of having an infectious disease;</text>
      </paragraph>
      <paragraph num="E.">
        <text>Only cleaners that are safe for animals shall be used to clean primary enclosures, transport carriers, exercise areas, or any area of the shelter where animals are present or likely to be present;</text>
      </paragraph>
      <paragraph num="F.">
        <text>All chemicals shall be removed from the enclosure prior to placing an animal in the enclosure;</text>
      </paragraph>
      <paragraph num="G.">
        <text>No animal or animal’s drinking water or water bowl shall be left in an enclosure while cleaning chemicals are being used;</text>
      </paragraph>
      <paragraph num="H.">
        <text>The shelter building and runs shall be kept reasonably free of flies, fleas, mosquitoes, rats, mice, and other vectors or nuisance species;</text>
      </paragraph>
      <paragraph num="I.">
        <text>All trash cans in areas of a shelter where animals are located shall have lids; and</text>
      </paragraph>
      <paragraph num="J.">
        <text>Relevant shelter staff shall be trained in the shelters’ sanitation protocols, and a written record of that training shall be kept on-site and available for inspection.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Medical Standards.">
      <text>The responsible individual shall ensure that all animals are monitored, assessed, examined, and treated for medical conditions in a timely manner as follows:</text>
      <paragraph num="A.">
        <text>A veterinarian shall supervise the medical care and medical treatment of all animals in an animal shelter;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Any surgeries shall be performed in accordance with the Maryland Veterinary Practice Act and in a facility currently licensed and registered by the State Board of Veterinary Medical Examiners;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Animal shelter staff shall observe animals daily for signs of illness or injury, and obtain treatment, as appropriate;</text>
      </paragraph>
      <paragraph num="D.">
        <text>Clean water shall be provided to all animals at all times unless otherwise directed by a veterinarian;</text>
      </paragraph>
      <paragraph num="E.">
        <text>All animals with parasites shall be treated immediately unless otherwise directed by a veterinarian;</text>
      </paragraph>
      <paragraph num="F.">
        <text>Any animal appearing to be experiencing pain, suffering distress, rapidly deteriorating health, life-threatening problems, or suspected zoonotic disease shall be assessed by a veterinarian as soon as possible or euthanized to prevent further distress or suffering;</text>
      </paragraph>
      <paragraph num="G.">
        <text>Any animal with a suspected zoonotic disease that does not appear to be experiencing pain, distress, or deteriorating health, but that poses a threat to human health and safety, shall be isolated by the shelter to limit exposure to other animals and people, and shall be assessed by a veterinarian immediately or as soon as possible;</text>
      </paragraph>
      <paragraph num="H.">
        <text>Any animal that is observed to be experiencing mental suffering, distress, or behavioral deterioration shall be assessed and appropriately treated by a veterinarian in a timely manner or humanely euthanized by the shelter;</text>
      </paragraph>
      <paragraph num="I.">
        <text>Animals that can be handled safely shall be provided with animal enrichment activities, whenever possible; and</text>
      </paragraph>
      <paragraph num="J.">
        <text>Animal food that is more than 6 months past the “sell by” date shall not be provided to an animal.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Equipment.">
      <paragraph num="A.">
        <text>The responsible individual shall ensure that anyone working with animals, including a volunteer, has the equipment necessary to handle all situations in a safe and humane manner, including the following:</text>
        <paragraph num="(1)">
          <text>Adequate ear protection, gloves, and other safety equipment to all staff members who handle animals or clean cages; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Equipment that allows staff to restrain animals as humanely as possible while ensuring the safety of both the animal and the handler.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Scanners and Microchip Readers. All animals shall be scanned within 24 hours of arrival at the shelter for microchips unless it is unsafe to do so. Scans shall also be performed prior to surgery, adoption, release to an owner, release to a rescue, and euthanasia.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Record Keeping.">
      <paragraph num="A.">
        <text>The responsible individual shall ensure that records are kept for each animal entering the shelter. Information shall include:</text>
        <paragraph num="(1)">
          <text>The animal’s species and unique identification number;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The estimated age of the animal;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Date of entry into the shelter;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Date and explanation of all treatments and medical procedures; and</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Final disposition (date and type).</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>All shelters shall have active adoption programs with written protocols available for inspection, as defined in Agriculture Article, §2-1704, Annotated Code of Maryland.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Civil Penalty.">
      <paragraph num="A.">
        <text>The Department may impose a civil penalty on a shelter that violates the requirements of this chapter or Agriculture Article, §2-1704, Annotated Code of Maryland, which requires shelters to adopt a written protocol for reclaiming animals, up to $500 for each violation.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Before imposing any civil penalty under this chapter, the Department shall consider the following:</text>
        <paragraph num="(1)">
          <text>The nature and gravity of each violation;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The willfulness of the violation and the extent to which the existence of the violation was known to the shelter but uncorrected by the shelter; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A history of prior violations, if any.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The Department shall issue a written notice of violation to the shelter owner upon finding that a violation has occurred or is ongoing. The written notice of violation shall include:</text>
        <paragraph num="(1)">
          <text>A statement of the regulation violated by the shelter;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A description of the evidence of a violation;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A statement informing the shelter of the right to an informal meeting with the Department;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The amount of the proposed civil penalty;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>A statement of the remedial action necessary to bring the shelter into compliance; and</text>
        </paragraph>
        <paragraph num="(6)">
          <text>A reasonable amount of time, as determined by the Department, to correct a violation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>A shelter may petition the Department for a contested case hearing on a violation and penalty within 30 calendar days of the issuance of the notice of violation by the Department.</text>
      </paragraph>
      <paragraph num="E.">
        <text>Unless a shelter requests a contested case hearing, the shelter shall promptly pay the penalty. Payment of a penalty is not a substitute for compliance. If the shelter continues to violate this chapter, the Department may impose additional civil penalties.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article §2-1701 at seq., Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: April 23, 2018 (45:8 Md. R. 422)</annotation>
    </annotations>
  </chapter>
  <chapter num="12" heading="Food Donation Program">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>In cooperation with the Comptroller, this chapter explains the Secretary of Agriculture’s Food Donation Program, which provides a tax credit against the State income tax for eligible food donations made by a farm located in Maryland.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Certified organic produce” means an eligible food donation that is certified under Title 10, Subtitle 14 of the Agriculture Article as an organically produced commodity.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Eligible food donation” means fresh farm products for human consumption.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Qualified farm” means a farm business that is located in Maryland.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Secretary” means the Secretary of Agriculture or the Secretary’s designee.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“Tax Credit Certificate Administrator” or “TCCA” means a person or an organization that is authorized under this chapter to receive eligible food donations.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Income Tax Credit Limitations.">
      <paragraph num="A.">
        <text>Subject to the limitations of this chapter, a qualified farm may claim a credit against State income tax for an eligible food donation in the amount stated on any tax credit certificate issued to a qualified farm by a qualified tax credit certificate administrator (TCCA).</text>
      </paragraph>
      <paragraph num="B.">
        <text>The amount of tax credit claimed by a qualified farm is controlled by Tax-General Article, §10-745, Annotated Code of Maryland.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Unless increased by the Secretary, the aggregate amount of credits for any taxable year for a qualified farm may not exceed $5,000.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Tax Credit Certificate Administrator.">
      <paragraph num="A.">
        <text>General Requirements.</text>
        <paragraph num="(1)">
          <text>Unless certified by the Secretary, a person or organization may not act as a TCCA. A certified TCCA shall agree in writing with the Secretary to comply with requirements of this chapter.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A TCCA certified by the Secretary that receives an eligible food donation from a qualified farm shall issue the qualified farm a tax credit certificate (the Secretary, in consultation with the Comptroller, is required to prepare tax certificate forms) that provides the following information:</text>
          <paragraph num="(a)">
            <text>The date of donation;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The identity of the qualified farm;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The type of donation;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The weight of the donation;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The value of the donation;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>The maximum amount of the tax credit for which the qualified farm is eligible; and</text>
          </paragraph>
          <paragraph num="(g)">
            <text>Any other information the State Department of Agriculture or Comptroller requires.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>Within 30 calendar days after issuing a tax credit certificate, the certified TCCA shall provide a copy of the tax credit certificate to the Secretary and the Comptroller.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>When notified by the Secretary, the TCCA shall stop issuing tax credit certificates as required by Tax-General Article, §10-745(e)(6)(i)1, Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Procedures for Issuing a Fiscal Year's Remaining Tax Credit Certificates.</text>
          <paragraph num="(a)">
            <text>After the Secretary notifies each TCCA to stop issuing tax credit certificates when the total amount of the tax credit certificates issued during the fiscal year equals or exceeds $50,000, the Secretary may authorize the issuance of any remaining credits as provided in this regulation.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Within 20 days from receipt of the Secretary's notification, a TCCA may request written permission from the Secretary to issue additional tax credit certificates during the current fiscal year, specifying the dollar amount in additional tax credits it seeks to issue and the basis for that request (e.g., to support its request, the TCCA may be requested by MDA to provide information indicating the amount of food donations by type that it has received and is likely to receive from qualified farms during the current fiscal year, and other such records showing that its request is reasonable).</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The Secretary shall review each timely request from a TCCA in conjunction with other timely requests and assess whether the basis for the request is reasonable.</text>
          </paragraph>
          <paragraph num="(d)">
            <text>If the total dollar amount of the requests received from all TCCAs does not exceed $50,000, the Secretary may permit each TCCA to issue tax credits up to the amount specified in its request and will notify each TCCA of its determination in writing.</text>
          </paragraph>
          <paragraph num="(e)">
            <text>If the total dollar amount of the requests received from all TCCAs exceeds $50,000, the Secretary shall strive to distribute the additional tax credits to each TCCA for food donations from qualified farms in a fair and equitable manner.</text>
          </paragraph>
          <paragraph num="(f)">
            <text>If a TCCA recognizes that it will be unable to issue the tax credits that the Secretary has authorized under either §A(5)(d) or (e) of this regulation, it shall immediately notify the Secretary who will strive to distribute these certificates in a fair and equitable manner to those TCCAs still in need of additional tax credits.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Tax Credit Value. The TCCA shall determine the value of the tax credit as follows:</text>
        <paragraph num="(1)">
          <text>A qualified farm that makes eligible food donations is eligible for a tax credit certificate with a stated tax credit amount equal to 100 percent of the value of eligible food donation.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A qualified farm that makes a donation of certified organic produce is eligible for a tax credit certificate with a stated tax credit amount equal to 100 percent of the value of the donated certified organic produce.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The TCCA shall determine the value of any eligible food donations based on the Secretary's weekly published categories and values of certified organic produce and food donations as required by Tax-General Article, §10-745(d), Annotated Code of Maryland.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>Record Requirement.</text>
        <paragraph num="(1)">
          <text>The TCCA shall maintain any records relating to the issuance of any tax credit certificate to any qualified farm.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Any record shall be maintained for 3 years and shall be available to the Secretary or the Comptroller upon request.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Conflicts of Interest. A TCCA may not issue a tax credit certificate to any person who owns or operates a qualified farm if the TCCA has a business interest or is a family member of the owner or operator in the farm.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Certification of Tax Credit Certificate Administrator.">
      <text>An applicant who applies to serve as a Tax Credit Certificate Administrator shall apply to the Secretary on a departmental form and shall have the following qualifications:</text>
      <paragraph num="A.">
        <text>Be a 501c3 nonprofit;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Have record-keeping capabilities (information systems) that include the date of the donation, farm name/farmer, type of fresh farm product, and volume in pounds of produce received;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Be certified in and comply with safe food handling practices and have been reviewed by an outside organization (i.e. health inspector, AIB certified);</text>
      </paragraph>
      <paragraph num="D.">
        <text>Possess a scale certified by the Maryland Department of Agriculture that is calibrated on a quarterly basis;</text>
      </paragraph>
      <paragraph num="E.">
        <text>Follow food safety regulations regarding storage and inventory; and</text>
      </paragraph>
      <paragraph num="F.">
        <text>Have an established partner network for quick food distribution or distribute directly to clients.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Application Review and Approval.">
      <paragraph num="A.">
        <text>The Secretary shall review each application and certify the most qualified applicants who will best promote the objectives of the Food Donation Pilot Program as described in this chapter.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Upon approval of an application for certification, the certified applicant shall execute an agreement with the Secretary that describes the duties and responsibilities of a person or organization acting as a Tax Credit Certificate Administrator.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Penalty.">
      <text>Upon notice and an opportunity to be heard, for any violation of this chapter, the Secretary may revoke or suspend the authority of any TCCA to issue a tax credit certificate for any qualified farm.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Tax-General Article, §10-745, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date:</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an Emergency provision effective September 8, 2017 (44:20 Md. R. 944); emergency status expired effective January 3, 2018</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted effective June 4, 2018 (45:11 Md. R. 579)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .01 amended effective April 6, 2020 (47:7 Md. R. 384); November 13, 2023 (50:22 Md. R. 978)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended effective April 6, 2020 (47:7 Md. R. 384)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03 amended effective April 6, 2020 (47:7 Md. R. 384); November 13, 2023 (50:22 Md. R. 978)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04A, B amended effective April 6, 2020 (47:7 Md. R. 384)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04B amended effective November 13, 2023 (50:22 Md. R. 978)</annotation>
    </annotations>
  </chapter>
  <chapter num="13" heading="Supervision and Review of Decisions and Actions of Units Within the Department">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <paragraph num="A.">
        <text>This chapter is adopted in response to the U.S. Supreme Court’s decision in North Carolina Board of Dental Examiners v. Federal Trade Commission.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The purpose of this chapter is to provide for active supervision of certain units within the Department to:</text>
        <paragraph num="(1)">
          <text>Prevent unreasonable anticompetitive actions; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Ensure that anticompetitive actions are consistent with affirmatively expressed and clearly articulated State policies to displace competition.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Department” means Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Secretary” means the Secretary of Agriculture or the Secretary’s designee.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Secretary’s designee” means the Assistant Secretary who is responsible for actively supervising a unit’s operation.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Unit” means a regulatory board or commission composed in whole or in part of individuals participating in the occupation or profession regulated by that board or commission.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Secretary’s Supervision Responsibilities.">
      <paragraph num="A.">
        <text>The Secretary is responsible for supervising each unit within the Department that is composed in whole or in part of individuals participating in the occupation or profession regulated by the unit to:</text>
        <paragraph num="(1)">
          <text>Prevent unreasonable anticompetitive actions by the unit; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Determine whether the decisions and actions of the unit with anticompetitive effect further an affirmatively expressed and clearly articulated State policy to displace competition in the unit’s regulated market (as opposed to serving the private interests of the market participant regulators).</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>For purposes of the Secretary’s responsibilities under this chapter, the following types of decisions and actions of a unit generally are not unreasonable anticompetitive actions by the unit:</text>
        <paragraph num="(1)">
          <text>Ministerial or nondiscretionary acts undertaken in good faith implementation of the unit’s enabling legislation;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>An investigation, charge, or disposition of a disciplinary charge against a single individual subject to the regulatory authority of a unit involving an issue such as standard of care; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The initiation and prosecution of a lawsuit by a regulatory board unless it falls within the “sham exception.” Professional Real Estate Investors v. Columbia Pictures Industries, 508 U.S. 49 (1993); California Motor Transport Co. v. Trucking Unlimited, 404 U.S. 508 (1972).</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>For purposes of the Secretary’s responsibilities under this chapter, the types of decisions and actions for which anticompetitive consequences should be evaluated, include, but are not limited to:</text>
        <paragraph num="(1)">
          <text>Decisions or actions governing the scope of a licensed individual’s practice;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Requirements for granting a license;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Pricing regulations;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Restrictions on advertising or soliciting customers;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Territorial allocations;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Restrictions on market participation or actions against nonlicensees;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>Restrictions on competitive bidding; and</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Patterns of disciplinary action by a unit against similarly situated licensees.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Secretary’s Designee Responsibilities.">
      <paragraph num="A.">
        <text>Each Assistant Secretary at the Department is designated as responsible for supervising each unit in the Assistant Secretary’s section that is composed in whole or in part of individuals participating in the occupation or profession regulated by the unit to:</text>
        <paragraph num="(1)">
          <text>Prevent unreasonable anticompetitive actions by the unit; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Determine whether an anticompetitive decision or action of the unit furthers a clearly articulated State policy to displace competition in the unit’s regulated market.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Each Assistant Secretary is responsible for keeping fully informed of all proposed anticompetitive actions and decisions of any unit subject to this chapter by consulting with both the unit’s Executive Director and legal advisor from the Office of the Attorney General.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If the Secretary or the Secretary’s designee finds that a proposed decision or action of the unit with anticompetitive effect may result in an unreasonable restraint on competition or may not further a clearly articulated State policy to displace competition in the regulated marketplace, the Secretary or the Secretary’s designee shall:</text>
        <paragraph num="(1)">
          <text>Immediately notify the unit not to make a final decision or take the proposed action;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Review the evidentiary record created by the unit, and, if necessary, supplement the evidentiary record of the unit;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Conduct a substantive review of the merits of the unit’s proposed decision or action to consider the anticompetitive consequences of the proposed decision or action as well as any State policy advanced;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Assess whether the unit’s proposed decision or action furthers a clearly articulated State policy to displace competition in the regulated market; and</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Issue expeditiously a written decision approving, disapproving, or modifying the proposed decision or action or remanding the proposed decision or action back to the unit for further review before:</text>
          <paragraph num="(a)">
            <text>A final decision is issued; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The proposed action is implemented.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(6)">
          <text>A written decision approving an anticompetitive decision or action of a unit shall identify any clearly articulated and affirmatively expressed State policy to displace competition in the regulated market advanced by the proposed decision or action and explain why the decision or action should be approved, notwithstanding the anticompetitive effect.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>A written statement disapproving an anticompetitive decision or action shall explain the reasons supporting the decision not to approve the proposed decision or action.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>The Secretary or the Secretary’s designee may not approve an anticompetitive decision or action of a unit that does not further a clearly articulated State policy to displace competition in the regulated market.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Unit’s Responsibilities.">
      <paragraph num="A.">
        <text>Upon notice to the unit by the Secretary or the Secretary’s designee as provided in Regulation .04C of this chapter, a unit may not make any decision or take any action on any proposal.</text>
      </paragraph>
      <paragraph num="B.">
        <text>A decision or action of a unit may not constitute a final decision or action of the unit until after the Secretary or the Secretary’s designee has conducted the review required under Regulation .04C of this chapter.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The final decision or action of a unit shall comply with the written decision of the Secretary or the Secretary’s designee issued in accordance with Regulation .04C of this chapter.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">State Government Article, §8-205.1, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: June 4, 2018 (45:11 Md. R. 579)</annotation>
    </annotations>
  </chapter>
  <chapter num="14" heading="Seafood Marketing">
    <regulation prefix="Regulation" num=".01" heading="True Blue Marketing Program.">
      <paragraph num="A.">
        <text>Definition.</text>
        <paragraph num="(1)">
          <text>In this chapter, the following term has the meaning indicated.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Term Defined. “True Blue” means a certification from the Department verifying that a food service establishment is selling blue crab product harvested or processed in Maryland.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Application.  Any food service establishment selling blue crab product harvested or processed in Maryland may apply to the Department to receive a True Blue certification by submitting the appropriate forms provided by the Department.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Approval.  Any approved food service establishment may market or advertise blue crab product that is harvested or processed in Maryland as True Blue certified.</text>
      </paragraph>
      <paragraph num="D.">
        <text>Validation.  Any participating food service establishment shall provide any required documentation to the Department to show proof of the source of blue crab product.</text>
      </paragraph>
      <paragraph num="E.">
        <text>Penalties. A food service establishment that violates the terms of the program may have its certification revoked.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §10-1002, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Transferred from Department of Natural Resources, COMAR 08.02.24</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: July 1, 2017</annotation>
    </annotations>
  </chapter>
  <chapter num="15" heading="Use of Antimicrobial Drugs">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>The purpose of this chapter is to describe the restrictions on the use of medically important antimicrobial drugs in the production of cattle, swine and poultry.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Administered in a regular pattern” means used:</text>
          <paragraph num="(a)">
            <text>For multiple courses of therapy in the same animal or group of animals; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>As a standard operating procedure, including:</text>
            <paragraph num="(i)">
              <text>In correspondence with a particular life stage of an animal, such as in ovo, at birth or hatch, or at weaning;</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>As an ongoing management strategy or tool, such as in correspondence with a particular age or weight of an animal, time of the week, month, or year, or season; or</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>When moving animals from one location to another.</text>
            </paragraph>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>“Animal” means cattle, swine or poultry.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Dry cycle” means a period of time when a cow is not lactating.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Elevated Risk.</text>
          <paragraph num="(a)">
            <text>“Elevated risk” means a risk that is significantly higher than that present under normal or standard operating conditions.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Elevated risk” does not include a risk typically or frequently present under normal or standard operating conditions.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(5)">
          <text>“Prophylaxis” or “Prophylactic” means the prevention of disease or infection in the absence of documented clinical signs of disease or infection.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Medically important antimicrobial drug” means any drug from a class of drug or a derivative of a class of drug that is either:</text>
          <paragraph num="(a)">
            <text>Made from a mold or bacterium that kills or slows the growth of other microbes, specifically bacteria, and used in human beings or intended for use in human beings to treat or prevent disease or infection; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Listed in:</text>
            <paragraph num="(i)">
              <text>Appendix A of the federal Food and Drug Administration’s Guidance for Industry #152, including critically important, highly important, or important antimicrobial drugs; or</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>A subsequent guidance document created by the federal Food and Drug Administration that ranks the medical importance of antimicrobial drugs.</text>
            </paragraph>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="When Permitted.">
      <paragraph num="A.">
        <text>Except as provided in this regulation, a person may administer a medically important antimicrobial drug to cattle, swine, or poultry if, in the professional judgment of a licensed veterinarian, the medically important antimicrobial drug is necessary:</text>
        <paragraph num="(1)">
          <text>To treat a disease or infection;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>To control the spread of a disease or infection; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>For a surgery or medical procedure.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>A person may administer a medically important antimicrobial drug to cattle, swine, or poultry if, in the professional judgment of a licensed veterinarian, the medically important antimicrobial drug is necessary for prophylaxis to address an elevated risk of contraction of a particular disease or infection.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Unless administration of a medically important antimicrobial drug is consistent with §A of this regulation, a person may not administer a medically important antimicrobial drug in a regular pattern to cattle, swine, or poultry.</text>
      </paragraph>
      <paragraph num="D.">
        <text>A person may not administer a medically important antimicrobial drug to cattle, swine, or poultry solely for the purpose of:</text>
        <paragraph num="(1)">
          <text>Promoting weight gain; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Improving feed efficiency.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Dry Cow Treatment.</text>
        <paragraph num="(1)">
          <text>General Rule Requiring Assessment. The administration of a medically important antimicrobial drug to a cow entering a dry cycle is prohibited except when the cow is diagnosed with a bacterial intramammary infection (mastitis).</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Methods of Assessing Mastitis in an Individual Cow.</text>
          <paragraph num="(a)">
            <text>Tests. A person may assess the presence of mastitis in an individual cow through one or more of the following tests:</text>
            <paragraph num="(i)">
              <text>A positive bacterial culture test;</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>A positive California Mastitis Test;</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>A somatic cell count for an individual cow greater than 200,000 cells per milliliter in the most recent lactation; and</text>
            </paragraph>
            <paragraph num="(iv)">
              <text>Any other assessment method approved by the Secretary generally recognized by the American Association of Bovine Practitioners.</text>
            </paragraph>
          </paragraph>
          <paragraph num="(b)">
            <text>Signs of Mastitis. A person may assess the presence of mastitis in an individual cow using one or more of the following indicators:</text>
            <paragraph num="(i)">
              <text>Visibly abnormal milk including the presence of clots, blood, or discoloration; or</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Heat, pain, tenderness, or swelling of a gland.</text>
            </paragraph>
          </paragraph>
          <paragraph num="(c)">
            <text>A licensed veterinarian may assess the presence of mastitis in an individual cow through the observation of clinical signs of mastitis.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Applicability.">
      <text>Except as otherwise provided in federal law or regulation, this chapter does not apply to antimicrobial use in:</text>
      <paragraph num="A.">
        <text>Cattle on a farm operation that sells fewer than 200 cattle per year;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Dairy cattle on a farm operation with a herd size of fewer than 300 dairy cattle;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Swine on a farm operation that sells fewer than 200 swine per year; or</text>
      </paragraph>
      <paragraph num="D.">
        <text>Poultry on a farm operation that sells fewer than 60,000 birds per year.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Civil Penalty.">
      <paragraph num="A.">
        <text>The Department may impose a civil penalty on any person who violates the requirements of this chapter up to $2,000 for each violation.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Before imposing any civil penalty under this chapter, the Department shall consider the following:</text>
        <paragraph num="(1)">
          <text>The nature and gravity of each violation;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The willfulness of the violation and the extent to which the existence of the violation was known to the person but uncorrected by the person; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A history of prior violations, if any.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The Department shall issue a written notice of violation to the person subject to this chapter upon finding that a violation has occurred or is ongoing. The written notice of violation shall include:</text>
        <paragraph num="(1)">
          <text>A statement of the regulation violated by the person;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A description of the evidence of a violation;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A statement informing the person of the right to an informal meeting with the Department;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The amount of the proposed civil penalty;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>A statement of the remedial action necessary to bring the person into compliance; and</text>
        </paragraph>
        <paragraph num="(6)">
          <text>A reasonable amount of time, as determined by the Department, to correct a violation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>A person may petition the Department for a contested case hearing on the violation and penalty within 30 calendar days of the issuance of the notice of violation by the Department.</text>
      </paragraph>
      <paragraph num="E.">
        <text>Unless a person requests a contested case hearing, the person shall promptly pay the penalty. Payment of a penalty is not a substitute for compliance. If the person continues to violate this chapter, the Department may impose additional civil penalties.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §§3-1001—3-1003, 3-1005, and 3-1006, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: January 28, 2019 (46:2 Md. R. 53)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective April 12, 2019 (46:9 Md. R. 444); amended permanently effective September 9, 2019 (46:18 Md. R. 775)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended effective January 14, 2021 (48:1 Md. R. 10)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03E adopted effective January 14, 2021 (48:1 Md. R. 10)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 14, 2021 (48:1 Md. R. 10)</annotation>
    </annotations>
  </chapter>
  <chapter num="16" heading="Industrial Hemp Pilot Program">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>This chapter establishes the Maryland Department of Agriculture’s Industrial Hemp Pilot Program, including the requirement for the registration and the certification of a site that will be used to grow or cultivate industrial hemp to further agricultural or academic research purposes.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated:</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Authorized holder” or “holder” means an institution of higher education or a person who has contracted with an institution or the Department to grow or cultivate industrial hemp for agricultural research or academic research purposes as authorized by this chapter.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Certified site” means any property site certified by and registered with the Department as a site where industrial hemp may be grown or cultivated for agricultural or academic research purposes.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Department” means Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Independent testing laboratory” has the meaning stated in Health-General Article, §13-3301, Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Industrial Hemp.</text>
          <paragraph num="(a)">
            <text>“Industrial hemp” means the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9-tetrahydrocannabinol concentration that does not exceed 0.3 percent on a dry weight basis.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Industrial hemp” does not include any plant or part of a plant intended for a use that is regulated under Health-General Article, Title 13, Subtitle 33, Annotated Code of Maryland.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(6)">
          <text>“Institution of higher education” or “institution” has the meaning stated in the federal Higher Education Act of 1965.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Person” means an individual, partnership, corporation, limited liability company, association, or any business entity, by whatever name designated and whether or not incorporated, unless the context clearly indicates otherwise.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Authorization to Grow and Cultivate Industrial Hemp.">
      <paragraph num="A.">
        <text>Only an institution of higher education within Maryland may submit an application to the Department for authorization to grow, cultivate, harvest, process, manufacture, transport, market or sell industrial hemp for agricultural, industrial, or commercial purposes to further agricultural or academic research purposes.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Only a person contracting with the Department or an approved institution of higher education as provided in this regulation may possess, grow, cultivate, harvest, process, manufacture, transport, market, or sell industrial hemp for commercial purposes as part of the Pilot Program to further agricultural or academic research purposes.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Industrial hemp may only be grown or cultivated at a registered site or premises owned or controlled by an institution of higher education or by a person who contracts with an institution to grow and cultivate it.</text>
      </paragraph>
      <paragraph num="D.">
        <text>A person who contracts with an institution to grow and cultivate industrial hemp shall:</text>
        <paragraph num="(1)">
          <text>Be at least 18 years old;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Pass a criminal background test with no felony convictions in the past 10 years;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Own or lease, with the approval of the owner, the property used to grow and cultivate hemp;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Have the site registered and approved with the Department before contracting to grow or cultivate hemp;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Grant the Department permission to enter and inspect the property to ensure compliance with the requirements of this chapter.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Only grow hemp on land that is at least 1,000 feet from a school or public recreation area when the hemp is being grown in an outdoor field or an outdoor site;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>Post a sign on the certified site that notifies the public that the site is used to grow hemp as part of the Pilot Program; and</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Attend an orientation session by the Department, in cooperation with the institution, that explains the requirements of this chapter before contracting to grow or cultivate hemp.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>It is the sole responsibility of any institution or person qualifying under this chapter to hold any required federal permit to possess, grow, or cultivate industrial hemp.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Application Review and Approval.">
      <text>An application to grow, cultivate, harvest, process, manufacture, transport, market, or sell industrial hemp to further agricultural research or academic research purposes shall be made on a Departmental form. Each application shall provide the following information, including, but not limited to:</text>
      <paragraph num="A.">
        <text>A description of each site where industrial hemp will be grown or cultivated, either by the institution of higher education or by an authorized person who contracts with the institution by physical address with a map clearly showing the location of the site with GPS coordinates;</text>
      </paragraph>
      <paragraph num="B.">
        <text>A diagram for each site that visually depicts the buildings, structures, and improvements on the premises, and identifies their use, and that sets forth the relevant activities conducted at the site;</text>
      </paragraph>
      <paragraph num="C.">
        <text>A detailed summary of the issues and matters that the applicant intends to study in conjunction with growing, cultivating, processing, manufacturing, transporting, marketing, or selling industrial hemp; and</text>
      </paragraph>
      <paragraph num="D.">
        <text>Payment of a $250 fee to certify and register each site used to grow or cultivate industrial hemp either by the institution or the person who contracts with the institution.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Rejection of Application or Revocation of Authority.">
      <text>The Department may reject any application to grow or cultivate industrial hemp, and may revoke an authorization to grow and cultivate industrial hemp, if the Department determines that:</text>
      <paragraph num="A.">
        <text>The application is incomplete or does not provide the information required pursuant to Regulation .04 of this chapter; or</text>
      </paragraph>
      <paragraph num="B.">
        <text>The authorized holder has failed to comply with the requirements of this chapter or the terms of the holder’s application.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Hemp Seeds.">
      <text>A person or institution that grows or cultivates industrial hemp as authorized by this chapter may purchase or otherwise obtain seeds or a plant or plant part that can be utilized to grow a new plant that produce plants that meet the definition of industrial hemp as provided in this chapter.</text>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Hemp Verification and Reports.">
      <paragraph num="A.">
        <text>In accordance with this regulation, a person who grows or cultivates industrial hemp as authorized by this chapter shall:</text>
        <paragraph num="(1)">
          <text>Verify that the plants grown or cultivated by the person meet the definition of industrial hemp under this chapter;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Maintain all records of verification at the site that is used to grow or cultivate industrial hemp; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Make all records available for inspection by:</text>
          <paragraph num="(a)">
            <text>The Department; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The institution of higher education that contracted with the person under this chapter to grow or cultivate industrial hemp.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>The verification required under this regulation shall include:</text>
        <paragraph num="(1)">
          <text>Documentation from an independent testing laboratory registered as defined by this chapter; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Documentation from the institution of higher education that contracted with the person under this chapter to grow or cultivate industrial hemp.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>An independent testing laboratory or an institution of higher education that provides verification documentation under this chapter shall conduct on-site inspections to perform the testing necessary for the verification.</text>
      </paragraph>
      <paragraph num="D.">
        <text>If it is determined that the industrial hemp exceeds a delta-9-tetrahydrocannabnol concentration that exceeds 0.3 percent on a dry weight basis, it shall be destroyed by the authorized holder within 7 days under the supervision of the institution of higher education.</text>
      </paragraph>
      <paragraph num="E.">
        <text>The frequency of the verification required under this subsection shall be determined by:</text>
        <paragraph num="(1)">
          <text>The Department; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The institution of higher education that contracted with a person under this chapter to grow or cultivate industrial hemp.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §14-102(i), Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: January 28, 2019 (46:2 Md. R. 53)</annotation>
    </annotations>
  </chapter>
  <chapter num="17" heading="Hemp Farming Program">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>This chapter explains the Maryland Department of Agriculture’s Hemp Farming Program, which licenses and regulates the production of hemp in the State. This chapter does not apply to an institution of higher education or a person who produces hemp under the Hemp Research Pilot Program. As required by State law, the Program has been approved by the United States Department of Agriculture.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Acceptable hemp THC level” means the application of the measurement uncertainty to the reported total delta-9 tetrahydrocannabinol content concentration level on a dry weight basis producing a distribution or range that includes 0.3 percent or less total THC.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Applicant” means a person, or for a business entity, a person authorized to act on behalf of the business entity, who applies to the Department to become a licensed hemp grower in the State.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Authorized agent” means a sampling agent who has received a certificate of completion of training from USDA or the Department and has been approved by the Department to sample hemp under the Program.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Authorized laboratory” means a laboratory that is:</text>
          <paragraph num="(a)">
            <text>DEA registered; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Accredited to ISO17025:2017.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(5)">
          <text>Cannabis.</text>
          <paragraph num="(a)">
            <text>“Cannabis” means a genus of flowering plants in the family Cannabaceae of which Cannabis sativa is a species, and Cannabis indicia and Cannabis ruderalis are subspecies thereof.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Cannabis” includes any form of the plant in which the delta-9-tetrahydrocannabinol concentration on a dry weight basis has not yet been determined.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(6)">
          <text>“CBD” means cannabidiol.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“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.</text>
        </paragraph>
        <paragraph num="(8)">
          <text>“Culpable mental state greater than negligence” means to act intentionally, knowingly, willfully, or recklessly.</text>
        </paragraph>
        <paragraph num="(9)">
          <text>“Cultivate” means to plant, water, grow, or harvest a plant or crop.</text>
        </paragraph>
        <paragraph num="(10)">
          <text>“DEA” means the United States Drug Enforcement Administration.</text>
        </paragraph>
        <paragraph num="(11)">
          <text>“Decarboxylated” means the completion of the chemical reaction that converts THC-A into delta-9-THC, the intoxicating component of cannabis. The decarboxylated value may also be calculated using a conversion formula that sums delta-9-THC and THC-A.</text>
        </paragraph>
        <paragraph num="(12)">
          <text>“Decarboxylation” means the removal or elimination of a carboxyl group from a molecule or organic compound.</text>
        </paragraph>
        <paragraph num="(13)">
          <text>“Delta-9-THC” or “THC” means delta-9-tetrahydrocannabinol concentration, the primary intoxicating component of cannabis.</text>
        </paragraph>
        <paragraph num="(14)">
          <text>“Department” means the Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(15)">
          <text>“Disposal” or “destruction” means the procedure to render a plant or a product derived from such plant unusable by burning, incorporating with other materials, or other methods approved by the Department consistent with USDA guidelines.</text>
        </paragraph>
        <paragraph num="(16)">
          <text>“Dry weight basis” means the ratio of the amount of dry solid in a sample after drying to the total mass of the sample before drying, including the moisture in a sample.</text>
        </paragraph>
        <paragraph num="(17)">
          <text>“GPS” means Global Positioning System.</text>
        </paragraph>
        <paragraph num="(18)">
          <text>“Growing area” means either an outdoor or an enclosed indoor area where hemp is cultivated.</text>
        </paragraph>
        <paragraph num="(19)">
          <text>“Hemp” means the plant Cannabis sativa L. and any part of that plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total delta-9-tetrahydrocannabinol concentration that does not exceed 0.3 percent on a dry weight basis.</text>
        </paragraph>
        <paragraph num="(20)">
          <text>“Hemp greens” means hemp leaves from immature plants that are no more than 10 inches tall and are not flowering.</text>
        </paragraph>
        <paragraph num="(21)">
          <text>“Hemp microgreens” means immature hemp seedlings for human consumption that are:</text>
          <paragraph num="(a)">
            <text>Cut off above the soil or substrate line and harvested before flowering and not more than 14 days after germination; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Typically, between 2 and 3 inches in height, but not taller than 5 inches.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(22)">
          <text>“Hemp transplants” means nonflowering hemp seedlings, rooted cuttings, immature plants produced from tissue culture, or other means of reproduction, which are not harvested but transplanted into a large container or field to mature for harvest.</text>
        </paragraph>
        <paragraph num="(23)">
          <text>Key Participant.</text>
          <paragraph num="(a)">
            <text>“Key participant” means a sole proprietor, a partner in partnership, or a person with executive managerial control in a corporation, such as a chief executive officer or chief operating officer.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Key participant” does not include a nonexecutive manager, such as a farm, field, or shift manager.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(24)">
          <text>“Law enforcement agency” means the Maryland State Police, DEA, or other federal, state, or local law enforcement agency or drug suppression unit.</text>
        </paragraph>
        <paragraph num="(25)">
          <text>“License” means written authorization by the Department permitting a person to cultivate, store, handle, or market hemp in the State.</text>
        </paragraph>
        <paragraph num="(26)">
          <text>Licensed Area.</text>
          <paragraph num="(a)">
            <text>“Licensed area” means the land area shown in an approved licensing application, or, subsequently, in an approved site modification plan, on which a hemp grower plans to cultivate, store, or handle hemp.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Licensed area” includes growing areas, storage facilities, and other areas that are to be used in the grower’s hemp operation.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(27)">
          <text>“Licensed grower” means a person possessing a license issued by the Department under the authority of this chapter to cultivate, store, handle, or market hemp.</text>
        </paragraph>
        <paragraph num="(28)">
          <text>“Lot” means a contiguous area in a field, greenhouse, or indoor facility growing the same variety or strain of hemp that was planted at the same time throughout this area.</text>
        </paragraph>
        <paragraph num="(29)">
          <text>“Map” means a diagram depicting all borders of the hemp operation, including the nearest roads to aid in orientation, the cardinal direction north, and the boundaries of the legally described parcel on which the hemp operation is located.</text>
        </paragraph>
        <paragraph num="(30)">
          <text>“Measurement uncertainty” or “MU” means the parameter associated with the result of a measurement that characterizes the dispersion of the values that could be reasonably attributed to the measurement.</text>
        </paragraph>
        <paragraph num="(31)">
          <text>Negligent Violation.</text>
          <paragraph num="(a)">
            <text>“Negligent violation” means a failure to exercise the level of care that a reasonably prudent person would exercise in complying with the requirements of this chapter.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Negligent violation” does not include intentional misconduct.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(32)">
          <text>“Nonmarketable hemp” means hemp that exceeds the acceptable hemp THC level.</text>
        </paragraph>
        <paragraph num="(33)">
          <text>“Official sample” means the pre-harvest hemp sample collected by the Department, in accordance with Department policy, which is used to assess the THC concentration of a single lot of hemp.</text>
        </paragraph>
        <paragraph num="(34)">
          <text>“Person” means an individual, partnership, corporation, limited liability company, association, or any business entity by whatever name designated and whether or not incorporated unless the context clearly indicates otherwise.</text>
        </paragraph>
        <paragraph num="(35)">
          <text>“Program” means the Hemp Farming Program established under this chapter.</text>
        </paragraph>
        <paragraph num="(36)">
          <text>“Propagule” means a plant or plant part that can be utilized to grow a new plant.</text>
        </paragraph>
        <paragraph num="(37)">
          <text>“THC-A” means tetrahydrocannabinolic acid, a precursor to THC.</text>
        </paragraph>
        <paragraph num="(38)">
          <text>“USDA” means the U.S. Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(39)">
          <text>“Variety” means a group of plants or an individual plant that exhibits a distinctive observable physical characteristic or has a distinct genetic composition.</text>
        </paragraph>
        <paragraph num="(40)">
          <text>“Volunteer plant” means a hemp plant that was not intentionally planted by the person licensed to grow hemp, but results from a previous crop, growing on its own accord from seeds or roots in the years following an intentionally planted hemp crop.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Prohibition Against Growing or Producing Hemp Without a License.">
      <text>A person may not cultivate or produce hemp under the Program unless the person is licensed by the Department in accordance with this chapter.</text>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Contents of Application and Licensing Terms.">
      <paragraph num="A.">
        <text>Contents. To obtain a license to cultivate or produce hemp under the Program, a person shall annually submit a signed, complete, accurate, and legible Departmental application that provides:</text>
        <paragraph num="(1)">
          <text>The applicant’s full name, business or residential address, telephone number, and email address (if the applicant is a business entity, the full name of the business, the address of the principal business location, the full name and title of key participants, the email address of that business, and EIN number of the business);</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The legal description of the land on which the hemp operation is proposed;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The GPS coordinates for the land on which the hemp operation is proposed;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>A map of the land owned or controlled by the person to be licensed, showing the location, boundaries, and dimensions (in acres or square feet) of:</text>
          <paragraph num="(a)">
            <text>If hemp is grown indoors, the green house or indoor facility used to grow hemp;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>If hemp is grown outdoors, each field (by field number) where hemp will be grown (clearly indicating the names or lot numbers of all lots and planning locations) and the entrance to each field;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The facility used to store hemp post-harvest; and</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Others fields or facilities to be used in the hemp operation;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(5)">
          <text>The portion or portions of the hemp plant or flower that the applicant intends to market, that is, seed, grain, fiber, hurd, or CBD;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>A certification that the applicant is at least 18 years of age;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>A criminal background report of the applicant and other key participants, prepared by the Federal Bureau of Investigation, dated no more than 60 days before the date of the applicant’s application; and</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Documentation showing that the applicant has the legal right to cultivate hemp on the land (the proposed licensed area) and the legal authority to grant the Department access for inspection and sampling, including deeds, leasing agreements, written agreements by a landowner, or other appropriate documentation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>The Department shall provide the applicant a reasonable opportunity to amend an application that is insufficient or to resolve any minor violations of this chapter.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Site Modification. A licensed grower may apply to the Department to alter the approved licensed area. To accomplish this, the licensed grower shall pay the site modification fee and submit a signed, complete, accurate, and legible Departmental application at least 15 days before the proposed modification that includes:</text>
        <paragraph num="(1)">
          <text>An updated legal description of the land that will comprise the hemp operation;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Updated GPS coordinates that will comprise the hemp operation; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>An updated map providing the information required under §A(4) of this regulation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Licensing Terms. By signing and submitting the application, the applicant agrees to abide by the following licensing terms:</text>
        <paragraph num="(1)">
          <text>The licensed grower shall fully cooperate and assist the Department with all aspects of the administration and enforcement of the Program, including, but not limited to, the application, license, reporting, inspection, and sampling processes;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The licensed grower shall permit the Department or any other law enforcement agency to enter the property for the purpose of collecting, sampling, or inspecting hemp plants in the licensed area, whether in the field or in storage, during the licensing period or in the immediate 30-day time period after the license has expired or is suspended or surrendered;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If hemp plants test greater than the acceptable hemp THC level or otherwise do not comply with this chapter, the licensed grower shall inspect the property post-harvest and, for the following growing season, pre-harvest, and destroy, as directed by the Department, any volunteer plants;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The licensed grower shall maintain all records pertaining to hemp production for a minimum period of 3 years, including, but not limited to, the following records:</text>
          <paragraph num="(a)">
            <text>Planting records;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Harvesting records;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Sampling and testing records; and</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Records pertaining to the disposal of noncompliant hemp;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(5)">
          <text>The licensed grower shall keep the records required under §D(4) of this regulation in the State and make them available during normal business hours for copying and inspection by the Department or other law enforcement agencies;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>The licensed grower shall submit all required reports by the applicable due dates specified by the Department;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>The licensed grower shall name an in-State agent for the receipt of notices in enforcement actions for records and other matters;</text>
        </paragraph>
        <paragraph num="(8)">
          <text>The licensed grower shall notify the Department within 15 days of any changes to the hemp grower’s operation, including planting, harvesting, testing, or sampling, or any changes to the license holder’s address or other contact information; and</text>
        </paragraph>
        <paragraph num="(9)">
          <text>The licensed grower shall pay any fees as required by this chapter.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Required Certification. The applicant shall certify that the contents of the application are true and correct and that, when licensed, the grower will comply with all of the Department’s reporting requirements and those of USDA and all other regulatory and statutory requirements for producing hemp under the Program.</text>
      </paragraph>
      <paragraph num="F.">
        <text>Grounds for Denying Licensure. The Department may not issue a license to a person to grow hemp under the Program if the person:</text>
        <paragraph num="(1)">
          <text>Has a felony conviction under state or federal law related to a controlled substance during the 10-year period preceding the date of application;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Provides materially false or misleading information in the application; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Has not met the requirements of this chapter.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Licensing Period.">
      <text>A person may apply to become a licensed grower at any time during a calendar year. Unless suspended or revoked, a license to grow hemp under the Program is valid from the date it was issued through December 31 of the same year. To ensure continuity of the license, a licensed grower shall submit to the Department an application to renew the person’s license no later than December 1 of the year that the license is due to expire. A license issued under this chapter may not be assigned or transferred to another person under any circumstances.</text>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Fees.">
      <text>The following nonrefundable fees apply to hemp growers:</text>
      <paragraph num="A.">
        <text>An annual application fee — $50;</text>
      </paragraph>
      <paragraph num="B.">
        <text>An annual license fee — $500;</text>
      </paragraph>
      <paragraph num="C.">
        <text>A fee for each additional location owned or controlled by a grower with a different mailing address — $500;</text>
      </paragraph>
      <paragraph num="D.">
        <text>A fee each time that the Department samples and tests official samples for THC — $250; and</text>
      </paragraph>
      <paragraph num="E.">
        <text>A site modification fee if the GPS coordinates listed in the application are changed — $250.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Prohibited Acts.">
      <paragraph num="A.">
        <text>A licensed grower may not:</text>
        <paragraph num="(1)">
          <text>Grow or store hemp in a structure that is used for residential purposes;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Plant, grow, or store hemp on any site that is not located within the licensed area;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Display or exhibit live hemp plants, viable seeds, or floral materials at trade shows, county fairs, or educational or other similar events without written permission from the organizer of the event;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Allow unsupervised public access to hemp plots or plantings;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Sell, transfer, or permit the sale or transfer of living hemp plants or viable hemp seeds to any person in the State who does not hold a license issued by the Department;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Sell, transfer, or permit the sale or transfer of living plants, viable seeds, leaf material, or floral material to any person in another state who is not authorized by the laws of that state to own or otherwise possess such products;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>Comingle hemp plant material from one lot with hemp plant material from other lots unless the lots have been tested and deemed compliant with this chapter;</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Place in the stream of commerce any hemp grown in a lot that has a noncompliant THC level;</text>
        </paragraph>
        <paragraph num="(9)">
          <text>Provide false or misleading information in any report, record, or other document required under this chapter or during the course of an inspection conducted under this chapter;</text>
        </paragraph>
        <paragraph num="(10)">
          <text>Hinder or obstruct an authorized agent of the Department or any other law enforcement officer from entering the licensed area for the purpose of collecting, sampling, or inspecting hemp;</text>
        </paragraph>
        <paragraph num="(11)">
          <text>Violate any of the provisions of this chapter, including, but not limited to, the licensing terms set forth in Regulation .04 of this chapter; or</text>
        </paragraph>
        <paragraph num="(12)">
          <text>Violate any applicable laws and regulations relating to the use and development of the land for hemp production.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>There is no distance requirement, limitation, or buffer zone between licensed growers and between licensed growers and medical cannabis growers licensed under Health-General Article, §13-3306, Annotated Code of Maryland. No rule may establish such a distance requirement, limitation, or buffer zone without the Department’s evaluation, in consultation with the Natalie M. LaPrade Medical Cannabis Commission, of sufficient scientific data showing impacts to either crop as a result of cross-pollination.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Grower Reporting Requirements.">
      <paragraph num="A.">
        <text>Field Planting Report.</text>
        <paragraph num="(1)">
          <text>Within 10 days after planting, a licensed grower shall submit to the Department a signed, complete, accurate, and legible Departmental Field Planting Report that includes:</text>
          <paragraph num="(a)">
            <text>The licensed grower's full name and contact information;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The license number;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The planting date and anticipated harvest date;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The hemp's variety name;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The field location ID listed in the application;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>An updated detailed map depicting any changes; and</text>
          </paragraph>
          <paragraph num="(g)">
            <text>The primary intended use of the harvested hemp for each planting.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>A licensed grower who does not plant hemp in an approved outdoor growing area listed in the application shall submit a Field Planting Report on or before July 31, stating that hemp has not and will not be planted at that site.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If a replanting of seeds or propagules occurs, the licensed grower shall complete and submit to the Department a new Field Planting Report within 10 days after the planting, providing the information required under this section.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Indoor Planting Report.</text>
        <paragraph num="(1)">
          <text>Within 10 days after establishing plants at an indoor location, a licensed grower shall submit to the Department a signed, complete, accurate, and legible Departmental Greenhouse/Indoor Planting Report that includes:</text>
          <paragraph num="(a)">
            <text>The licensed grower's full name and contact information;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The license number;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The planting date and anticipated harvest date;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The hemp's variety name; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The primary intended use of the harvested hemp of each planting.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The licensed grower shall submit this report each time hemp is planted in, moved within, or moved into a licensed area, except for replanting into a larger container within the same indoor location.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>In addition to completing the initial Greenhouse/Indoor Planting Report, the licensed grower shall submit to the Department quarterly reports for each location ID to the Department no later than March 31, June 30, September 30, and December 31.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>Destruction Report. Within 48 hours after crop destruction or as ordered by the Department, the licensed grower shall submit to the Department a signed, complete, accurate, and legible Departmental Destruction Report that includes:</text>
        <paragraph num="(1)">
          <text>The licensed grower's full name and contact information;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The license number;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The disposal date of each lot destroyed; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The method of destruction.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Annual Production Report. A licensed grower shall submit to the Department a signed, complete, accurate, and legible Departmental Annual Production Report by December 1 of each year that provides the following information:</text>
        <paragraph num="(1)">
          <text>The licensed grower's full name and contact information;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The license number;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The acreage or amount of greenhouse space planted, the planting date, the harvest date, and the varieties grown; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The weight and type of plant material harvested and the plant material being stored and the location of its storage as of the date of the report.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Hemp Crop Acreage Report to Farm Service Agency. A licensed grower shall report information pertaining to the grower's hemp operation with USDA, Farm Service Agency, as required under federal law. This information may include:</text>
        <paragraph num="(1)">
          <text>The license number that the Department issued to the licensed grower;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The street address where licensed grower is producing hemp;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The geospatial location of each lot or greenhouse where hemp will be produced;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>If hemp is grown outdoors, the hemp crop acreage, including the total acreage planted and harvested, and, if any portion of the crop is disposed of, the amount;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>If hemp is grown indoors, the indoor square footage or acreage dedicated to the production of hemp; and</text>
        </paragraph>
        <paragraph num="(6)">
          <text>If the licensed area is altered in accordance with Regulation .04, updated information pertaining to the site modification.</text>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>Drug Felony Conviction Report.</text>
        <paragraph num="(1)">
          <text>Within 15 days of conviction of a disqualifying felony offense, a licensed grower shall inform any co-licensees and submit to the Department a signed, complete, accurate, and legible Departmental Drug Felony Conviction Report that includes:</text>
          <paragraph num="(a)">
            <text>The license number;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The date of conviction; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>An acknowledgement that all co-licensees have been informed of the disqualifying offense, if applicable, and the co-licensees have assumed full responsibility for the hemp crop.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Failure to report the disqualifying offense may result in an order of destruction.</text>
        </paragraph>
      </paragraph>
      <paragraph num="G.">
        <text>Record-Keeping Requirements. A licensed grower shall keep and maintain for at least 3 years all information that supports, verifies, or documents all reports required under this regulation.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Regulatory Inspections of Hemp Operations.">
      <paragraph num="A.">
        <text>Annual Inspections. The Department shall conduct annual inspections of, at a minimum, a random sample of licensed growers and collect regulatory samples of hemp to verify that hemp is not being produced in violation of this chapter.  The Department shall conduct these inspections during normal business hours. The Department may conduct these inspections without notice.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Additional Inspections. If the Department has reason to believe that a violation of the Program is occurring, it may conduct such additional regulatory inspections of a licensed grower’s operation and sampling of hemp it deems appropriate. The Department shall conduct these inspections during normal business hours. It may conduct these operations without notice.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Sampling and Testing Regulatory Samples. When conducting regulatory sampling and testing of hemp under §§A and B of this regulation, the Department shall follow the official sampling methodology and testing requirements set forth in Regulation .10 of this chapter.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Sampling and Testing for THC.">
      <paragraph num="A.">
        <text>A licensed grower may request the Department or an authorized agent to collect official samples of hemp for testing under §D of this regulation.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Official Sampling Methodology. To ensure a confidence level of 95 percent that no more than 1 percent of the plants in a lot exceeds the acceptable hemp THC level, official samples collected by the Department or an authorized agent shall be done in accordance with the Department's sampling methodology, which requires that:</text>
        <paragraph num="(1)">
          <text>Samples shall be collected by the Department or an authorized agent;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Samples selected shall be solely determined by the Department or authorized agent;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Samples shall be from the [flower material of the hemp plant;] flowering tops of plants which shall be approximately 5 to 8 inches in length from:</text>
          <paragraph num="(a)">
            <text>The main stem (that includes the leaves and flowers);</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The terminal bud (that occurs at the end of a stem); or</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The central cola (cut stem that could develop into a bud);</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>Samples shall represent a homogeneous composition of the lot being collected, and a minimum of two samples from each lot shall be collected (the number of plants selected for sampling will be dependent on the size of the growing area);</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Samples of hemp plant material from one lot may not be commingled with hemp plant material from other lots;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Samples shall be collected during the growing season and before harvest;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>When a scheduled sampling occurs, the grower or an authorized grower representative shall be present at the growing site;</text>
        </paragraph>
        <paragraph num="(8)">
          <text>The grower shall provide the Department or an authorized agent complete and unrestricted access to all hemp plants and all locations listed in the application;</text>
        </paragraph>
        <paragraph num="(9)">
          <text>The grower or authorized agent shall take any other action that the Department deems necessary to ensure that the stated confidence level is met;</text>
        </paragraph>
        <paragraph num="(10)">
          <text>If the licensed grower fails to complete the harvest within 30 days, a new sample of the lot shall be collected for testing purposes following the procedures set forth in this regulation;</text>
        </paragraph>
        <paragraph num="(11)">
          <text>The Department or authorized agent shall place the composite representative sample in a properly labeled paper bag, seal the bag, and place the following information on the bag or otherwise include it with the sample:</text>
          <paragraph num="(a)">
            <text>License number;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Name and contact information of the sampling agent;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Name and contact information of the licensee;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Date sample was taken;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Sample identification number for the lot;</text>
          </paragraph>
          <paragraph num="(f)">
            <text>Field identification number listed in the application; and</text>
          </paragraph>
          <paragraph num="(g)">
            <text>Any other information that may be required by the Department; and</text>
          </paragraph>
        </paragraph>
        <paragraph num="(12)">
          <text>The sample and sampling report shall be hand-delivered or placed in a box, sealed with security tape, and shipped overnight to the Department or authorized laboratory.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>All hemp samples collected become the property of the Department without cost to it and are nonrefundable.</text>
      </paragraph>
      <paragraph num="D.">
        <text>Testing Requirements. The Department or an authorized laboratory shall test hemp for prohibited THC levels by performing a quantitative laboratory determination of the total delta-9 THC concentration on a dry weight basis. In conducting this work, the following standards shall be met:</text>
        <paragraph num="(1)">
          <text>Laboratory quality assurance shall ensure the quality and validity of the test results and that the testing method used is appropriate;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>An appropriate chain of custody shall be maintained at all times;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The official samples shall be dried, the stem and seed shall be separated from floral material and discarded, and the floral material shall be ground;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The ground floral material shall be tested for THC content;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>The THC testing procedure shall include a valid testing methodology that uses post-decarboxylation or other similarly reliable methods, including, but not limited to, gas chromatography with flame ionization detection, or liquid chromatography with ultraviolet detection (The testing methodology shall consider the potential conversion of THCA in hemp into THC and the test result shall measure total available THC derived from the sum of the THC and THC-A content. The total THC concentration level shall be determined and reported on a dry weight basis. MU shall be used in determining the range of the result found.); and</text>
        </paragraph>
        <paragraph num="(6)">
          <text>A sample test result with a delta-9 THC concentration on a dry weight basis greater than the acceptable hemp THC level is conclusive evidence that the lot represented by the sample contains a delta-9 THC concentration on a dry weight basis of more than 0.3 percent and that the hemp is therefore not in compliance with this chapter.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Test Results Report. If an authorized laboratory conducts the testing, the hemp grower shall direct the laboratory to report the test results for all samples tested to the Department and USDA. The test results report shall contain the information below for each sample tested:</text>
        <paragraph num="(1)">
          <text>Hemp grower's license or authorization identifier;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Name of hemp grower;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Business address of hemp grower;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Lot identification number for the sample;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Name and address of laboratory;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Date of test and report;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>Identification of a retest; and</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Test result.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".11" heading="Hemp Greens, Hemp Microgreens, and Hemp Transplants.">
      <paragraph num="A.">
        <text>Performance-Based Sampling Protocol. For hemp plants that are not intended to be produced to a mature, flowering state (for example, hemp greens, hemp microgreens, and hemp transplants), the Department may utilize a performance-based sampling protocol to determine THC crop compliance. This protocol, which has been approved by USDA, includes seed certification processes and other processes that identify varieties that have consistently resulted in compliant hemp plants.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Notice to the Department. At planting, the licensed grower shall notify the Department of the grower’s intent and plans for producing hemp greens, hemp microgreens, or hemp transplants, including the grower’s intent to harvest these plants.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If the licensed grower is intending to produce hemp greens, hemp microgreens, or hemp transplants, the grower may only use hemp seeds or propagules that originate from THC compliant hemp plants.  To ensure this, the licensed grower may only use:</text>
        <paragraph num="(1)">
          <text>Seeds originating from THC compliant hemp plants that have been certified by a member agency of the Association of Official Seed Certifying Agencies;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Seeds derived from hemp plants that were tested during the preceding 2-year period and, for each of these 2 years, deemed THC compliant by the Department, an authorized laboratory, or other USDA-approved hemp program; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Propagules from hemp plants that were tested by the Department, an authorized agency, or other USDA-approved program and deemed THC compliant.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>If the licensed grower is using certified seeds, the grower shall provide the Department copies of the seed tags. If the licensed grower is using propagules, the grower shall provide the Department the test results of the hemp plants.</text>
      </paragraph>
      <paragraph num="E.">
        <text>The Department may conduct random testing of hemp greens, hemp microgreens, and hemp transplants produced by licensed growers.  The Department may collect samples for determining the total THC concentration. The licensed grower shall have an authorized representative on-site during the site inspection conducted by the Department.  If the crop does not meet the protocol for determining crop compliance under this regulation, the licensed grower shall hold the harvest lot until notified by the Department of the grower’s options.</text>
      </paragraph>
      <paragraph num="F.">
        <text>Hemp Microgreens Verification. The Department shall verify that the producer:</text>
        <paragraph num="(1)">
          <text>Obtained and used only authorized hemp seed or propagules;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Harvested the crop no more than 14 days after planting;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Only grew hemp plants that were no more than 5 inches in height; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Did not grow hemp plants to a flowering state.</text>
        </paragraph>
      </paragraph>
      <paragraph num="G.">
        <text>Hemp Greens Verification.  The Department shall verify that the producer:</text>
        <paragraph num="(1)">
          <text>Obtained and used only authorized hemp seed or propagules;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Harvested the crop prior to the plants being 10 inches in height; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Did not produce a flowering crop.</text>
        </paragraph>
      </paragraph>
      <paragraph num="H.">
        <text>Hemp Transplants Verification. The Department shall verify that the producer:</text>
        <paragraph num="(1)">
          <text>Obtained and used only authorized hemp seed or propagules;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Only grew plants that were no more than 12 inches in height; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Did not grow plants to a flowering state.</text>
        </paragraph>
      </paragraph>
      <paragraph num="I.">
        <text>If the licensed grower produces a crop that does not meet the protocol for determining THC crop compliance under this regulation, the grower shall:</text>
        <paragraph num="(1)">
          <text>Follow the compliance, sampling, and testing requirements set forth in Regulation .10 of this chapter; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Dispose of the crop.</text>
        </paragraph>
      </paragraph>
      <paragraph num="J.">
        <text>Records.</text>
        <paragraph num="(1)">
          <text>Proof of THC Compliance. A licensed grower producing hemp greens, hemp microgreens, or hemp transplants shall maintain for 3 years records showing proof of THC compliance of seeds or propagules used to produce these crops.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Sales Records.  A licensed grower producing hemp transplants shall maintain for 3 years records showing the name and address of persons to whom the transplants were sold or transferred.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".12" heading="Prerequisites for Placing Hemp in Commerce.">
      <paragraph num="A.">
        <text>A licensed grower may not co-mingle, transport, transfer, sell, market, process, or otherwise dispose of hemp pending a THC analysis by the Department or an authorized laboratory.</text>
      </paragraph>
      <paragraph num="B.">
        <text>To place hemp in the stream of commerce, test results shall confirm that the final product batch hemp contains no more than a total 0.3 percent delta-9 THC on a dry weight basis using the method’s determined measurement uncertainty, and all such testing results shall be retained by the grower and made available to the Department upon demand for a minimum of 3 years.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Hemp samples with a post-decarboxylated THC level equal to or below the acceptable hemp THC level require no further action by the Department. The area or harvested plant material from which the sample was obtained that was harvested within 30 days of the date of sampling may be marketed or further processed.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".13" heading="Nonmarketable Hemp.">
      <paragraph num="A.">
        <text>Upon receipt of a failing test result, a licensed grower may request resampling and retesting of the varieties in question. If no retest is requested, or the retested sample is greater than 0.3 percent THC, the area represented by the sample, or any harvested hemp from the area represented by the sample, shall be disposed of as provided in Regulation .14 of this chapter. The grower shall retain all such testing results and make them available to the Department upon demand for a minimum of 3 years.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Hemp plants from lots determined to be nonmarketable (that is, the plants exceed the acceptable hemp THC level) and products derived from such plants may not be further handled, processed, or enter the stream of commerce.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If a grower comingles hemp from a lot with hemp from another lot before the test results from any of the comingled lots are made known, the grower shall dispose of all of the hemp if the test results from just one of these lots is subsequently found to be nonmarketable.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".14" heading="Grower’s Duty to Dispose of Nonmarketable Hemp.">
      <paragraph num="A.">
        <text>The costs of disposal of nonmarketable hemp plants and products derived from such plants are the responsibility of the grower.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The grower shall notify the Department immediately upon receipt of a test report determining that any portion of the crop tests positive for a prohibited amount of THC.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If hemp is deemed nonmarketable (that is, the plants exceed the acceptable hemp THC level), the Department shall:</text>
        <paragraph num="(1)">
          <text>Notify the grower to stop the harvest and shipment of any plants or plant material harvested from the tested area;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Send a representative from the Department to conduct an inventory of the harvested and unharvested plants from the area that was tested;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Offer options for retesting and remediation consistent with remediation guidelines approved by U.S. Domestic Hemp Production Program; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Offer options for disposal.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>The disposal of hemp deemed noncompliant with this chapter shall render a plant or a product derived from such plant unusable by burning, incorporating with other materials, or other methods approved by the Department consistent with USDA guidelines.</text>
      </paragraph>
      <paragraph num="E.">
        <text>The grower shall notify the Department of the grower’s intent to dispose of nonconforming plants.</text>
      </paragraph>
      <paragraph num="F.">
        <text>A representative from the Department or a law enforcement official shall supervise the disposal of any noncompliant hemp plants or plant materials.</text>
      </paragraph>
      <paragraph num="G.">
        <text>The grower shall verify disposal by submitting required documentation to the Department and retain a copy of the disposal record for 3 years.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".15" heading="Sanctions for Violating the Department’s Hemp Farming Program.">
      <paragraph num="A.">
        <text>Except as provided in §C of this regulation, the Department, upon notice and an opportunity to be heard, may deny a license application or suspend or revoke a license to produce hemp under the Program, if the person:</text>
        <paragraph num="(1)">
          <text>Fails to comply with the Department's plan for monitoring and regulating the production of hemp;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Misrepresents the legal description of land on which hemp is produced;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Produces hemp without a valid license;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Produces plants, or any part of a plant, that exceeds a delta-9-tetrahydrocannabinol concentration of 0.3 percent on a dry weight basis;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Violates the licensing terms set forth in Regulation .04D of this chapter;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Provides false or misleading information in any report, record, or other document required under this chapter or during the course of an inspection conducted under this chapter;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>Hinders or obstructs an authorized agent of the Department or any other law enforcement officer from entering the licensed area for the purpose of collecting, sampling, or inspecting hemp;</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Fails to maintain all records pertaining to hemp production required by this chapter and to make these records available during normal business hours for copying and inspection by the Department or other law enforcement agency;</text>
        </paragraph>
        <paragraph num="(9)">
          <text>Fails to submit complete, signed, and accurate reports required under Regulation .08 of this chapter;</text>
        </paragraph>
        <paragraph num="(10)">
          <text>Fails to dispose of hemp as directed by the Department;</text>
        </paragraph>
        <paragraph num="(11)">
          <text>Is found to be growing or in possession of hemp not in compliance with these regulations;</text>
        </paragraph>
        <paragraph num="(12)">
          <text>Is convicted of a felony related to a controlled substance under state or federal law;</text>
        </paragraph>
        <paragraph num="(13)">
          <text>Cultivates or stores hemp on any site not listed in the application;</text>
        </paragraph>
        <paragraph num="(14)">
          <text>Represents hemp seeds which are indistinguishable by the plant's characteristics to be of a recognized variety, without having adequate information for such variety representation; or</text>
        </paragraph>
        <paragraph num="(15)">
          <text>Violates any provision of this chapter.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>The Department shall deny a license application or suspend or revoke a license to produce hemp under the Program if the person provides false or misleading information in the application for a licensee to grow hemp as provided in this chapter.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Negligent Violations.</text>
        <paragraph num="(1)">
          <text>If it determines that a violation is a negligent violation, the Department, in lieu of sanctioning the person as provided in §A of this regulation, may issue a corrective action plan, affording the person an opportunity to correct that violation and come into compliance.  A person may not have more than one negligent violation per growing season. A negligent action includes, but is not limited to, the following:</text>
          <paragraph num="(a)">
            <text>The failure to provide a legal description of the land;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The failure to obtain a license;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The production of cannabis with the total THC concentration exceeding the acceptable hemp THC level (0.3 percent with MU) unless the person has made reasonable efforts to grow hemp and the cannabis does not have a total delta-9-THC concentration of more than 1 percent on a dry weight basis.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The corrective action plan issued by the Department shall include the following:</text>
          <paragraph num="(a)">
            <text>A date by which the person shall correct the violation;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The action that the person shall take to come into compliance;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>To ensure compliance, a requirement that the person shall report to the Department at a frequency determined by the Department for a period of not less than 2 calendar years from the date of the violation the compliance measures it is taking; and</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Inspection requirements as determined by the Department.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>If the person fails to implement or comply with the corrective action plan, the Department may proceed to suspend or revoke the grower's license to produce hemp as provided in §A of this regulation.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>If the Department determines that a person has violated this chapter three times in a 4-year period, that person is banned from producing hemp for a period of 5 years beginning on the date of the third violation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Violations Exceeding Negligence — Immediate Suspension.</text>
        <paragraph num="(1)">
          <text>If the Department determines that a person has violated the Program with a culpable mental state greater than negligence, the Department shall:</text>
          <paragraph num="(a)">
            <text>Send a Notice of Suspension to the person, ordering the person to suspend all hemp operations immediately; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Refer the matter to the United States Attorney General, the Maryland Attorney General, or State's Attorney, as appropriate, to enforce the requirements of this chapter.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>If the Department issues a Notice of Suspension, the grower may not harvest or remove cannabis from the premises where hemp or other cannabis was located at the time the Department issued this notice.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>As soon as possible after the Notification of the Suspension, the Department shall inspect the grower's premises and perform an inventory of all hemp and hemp products that are in the grower's possession.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>The Department shall schedule a license revocation hearing for a date as soon as practicable after the Notification of Suspension, but in any event not later than 60 days following the notification of suspension.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".16" heading="Notice, Hearings, and Appeals.">
      <paragraph num="A.">
        <text>Notice. If it determines that sanctions are warranted against a person under Regulation .15 of this chapter, the Department shall provide the person written notice of the violation via regular mail, certified mail, or personal service that includes:</text>
        <paragraph num="(1)">
          <text>The facts that are asserted pertaining to the violation;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The pertinent statutory and regulatory sections under which the Department is taking its action;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The Department's determination whether the person's conduct constitutes a negligent violation or a violation with a culpable mental state greater than negligence;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>A statement explaining whether the Department has informed law enforcement of the violation;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>The sanction proposed, if any, as a result of the Department's action; and</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Unless a hearing is automatically scheduled, notice that the person may request a hearing within 20 days from receiving the notice of the violation; what, if anything, the person shall do to receive a hearing; and the direct consequences, including sanctions, if any, of the person's failure to exercise in a timely manner the opportunity for a hearing or to appear for a scheduled hearing.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>To receive a hearing on the matter set forth in the Notice of Violation, the person shall submit a written request for a hearing to the Maryland Department of Agriculture, Hemp Farming Program, 50 Harry S. Truman Parkway, Annapolis, Maryland 21401. If the person fails to submit a written request in a timely manner, the notice of violation shall become final and the Department may impose the proposed sanction stated in the notice.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Hearings. Hearings under this regulation shall be in accordance with the Maryland Administrative Procedure Act and COMAR 15.01.01.</text>
      </paragraph>
      <paragraph num="D.">
        <text>Appeals. A person aggrieved by a decision of the Department under this chapter, including a decision to deny an application for a license, or to suspend or revoke a license, may appeal the decision to the circuit court pursuant to the Maryland Rules of Civil Procedure.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".17" heading="Department Reports to USDA.">
      <paragraph num="A.">
        <text>By the first of each month, the Department shall file with USDA a report on each licensed grower with the following information:</text>
        <paragraph num="(1)">
          <text>For each new licensee that is an individual, the report shall include:</text>
          <paragraph num="(a)">
            <text>The full name of the individual;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The license number and status;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The business address;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Telephone number and email address (if applicable); and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>A legal description and GPS coordinates for each field, greenhouse, indoor growing structure, or site where industrial hemp will be cultivated, handled, or stored.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>For each new licensee that is a business entity, the report shall include:</text>
          <paragraph num="(a)">
            <text>The full name of the business entity;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The license number and status;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The principal business location address;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The full name, title, and email address (if applicable) of each person for whom the entity is required to submit a criminal background check; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>A legal description and GPS coordinates for each field, greenhouse, indoor growing structure, or site where industrial hemp will be cultivated, handled or stored.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>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, including the following:</text>
          <paragraph num="(a)">
            <text>The status of each grower and seed producer's license;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The period covered by the report; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Indication whether there were changes during the current reporting cycle if applicable.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>By the first of each month, the Department shall file with USDA a report of any occurrence among licensed hemp growers where hemp plants or plant parts have exceeded the acceptable THC levels as provided in this chapter with the following information:</text>
        <paragraph num="(1)">
          <text>The name and address of the licensee;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Producer license number;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Location information, such as a lot number, location type, and GPS coordinates or other location descriptor for the production area subject to hemp disposal;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Information on the agent handling the disposal; and</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Documentation or traceability from seed acquisition to harvest or crop termination.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>In addition to the hemp disposal report described in §B of this regulation, the Department shall promptly notify USDAs Agricultural Marketing Service of any occurrence of hemp plants that do not meet the definition of hemp as provided in this chapter or products derived from such plants. Records shall be attached to the report demonstrating that the proper disposal methods were followed.</text>
      </paragraph>
      <paragraph num="D.">
        <text>By December 15 of each year, the Department shall submit an annual report to USDA that provides the following information under the Program:</text>
        <paragraph num="(1)">
          <text>Total planted acreage;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Total harvested acreage; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Total acreage disposed.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>Any report filed by the Department with USDA shall be submitted using a digital form compatible with USDAs sharing systems, whenever possible.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".18" heading="Public Records.">
      <paragraph num="A.">
        <text>Any public record held by the Department is subject to inspection and release only as provided by the Maryland Public Information Act.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The Department shall release to USDA record information about each hemp grower in a timely manner, as required by the United States Secretary of Agriculture.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".19" heading="Criminal Penalties.">
      <text>In addition to any other penalty provided by law, a person who violates this chapter may be subject to criminal penalties under Agriculture Article, §12-101 et seq., Annotated Code of Maryland.</text>
    </regulation>
    <regulation prefix="Regulation" num=".20" heading="Enforcement.">
      <text>The Department shall report a person to the United States Attorney General and the Maryland Attorney General who knowingly:</text>
      <paragraph num="A.">
        <text>Fails to comply with the Department's plan for monitoring and regulating the production of hemp;</text>
      </paragraph>
      <paragraph num="B.">
        <text>Misrepresents the legal description of land on which hemp is produced;</text>
      </paragraph>
      <paragraph num="C.">
        <text>Produces hemp without a valid license;</text>
      </paragraph>
      <paragraph num="D.">
        <text>Produces plants, or any part of a plant, that exceeds a delta-9-tetrahydrocannabinol concentration of 0.3 percent on a dry weight basis; or</text>
      </paragraph>
      <paragraph num="E.">
        <text>Knowingly violates any provisions of Agriculture Article, Title 14, Subtitle 3, Annotated Code of Maryland.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".21" heading="Sampling Guidelines.">
      <paragraph num="A.">
        <text>For purposes of determining the number of individual plants to select for sampling, the size of the growing area set forth in the chart below shall be followed. For sampling purposes, samples from separate lots shall be kept separate and may not be comingled.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The authorized agent shall walk at right angles to the rows of plants, if possible, beginning at one point of the lot and walking towards another point on the opposite side of the lot. If the lot is too dense for this to be possible, the authorized agent shall take all reasonable steps to ensure that a sample is collected that represents a homogeneous composition of the lot by avoiding edges and thoroughfares.</text>
      </paragraph>
      <paragraph num="C.">
        <text>While walking through the growing area, the authorized agent shall cut the number of inflorescences (the flower or bud of a plant) based on the acreage of the growing area at random but convenient distances, and avoid collecting sample specimens from the borders of the field/greenhouse.</text>
      </paragraph>
      <paragraph num="D.">
        <text>The cut shall be obtained from the flowering tops of plants when flowering tops are present and shall be approximately 5 to 8 inches in length from the “main stem” (that includes the leaves and flowers), “terminal bud” (that occurs at the end of a stem), or “central cola” (cut stem that develops into a bud) of the flowering top of the plant.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §14-307, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: November 1, 2020 (47:21 Md. R. 904)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective October 4, 2022 (49:22 Md. R. 976); emergency provision expired</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective April 16, 2023 (50:9 Md. R. 375); emergency provision expired</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised effective August 7, 2023 (50:1 Md. R. 683)</annotation>
    </annotations>
  </chapter>
  <chapter num="18" heading="Farmers' Market Nutrition Program — Appeal Procedure">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <paragraph num="A.">
        <text>This chapter sets forth the appeal procedure for the Senior Farmers’ Market Nutrition Program (SFMNP) and the WIC Farmers’ Market Nutrition Program (WIC FMNP). The SFMNP and the WIC FMNP are segments of the Farmers’ Market Nutrition Program (FMNP). The Maryland Department of Agriculture administers SFMNP in the State. The Maryland Department of Health assists the Department in administering the WIC FMNP in the State. The FMNP, a federal-State partnership with USDA, is designed to:</text>
        <paragraph num="(1)">
          <text>Provide FMNP recipients with access to locally grown fruits, vegetables, honey, and herbs; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Increase the domestic consumption of agricultural commodities through farmers’ markets, roadside stands, and community supported agricultural programs.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>This chapter, as required under 7 CFR §248.16 for the WIC FMNP and 7 CFR §249.16 for the SFMNP, establishes a procedure for the following persons to appeal certain adverse actions of the Maryland Department of Agriculture in its administration of the FMNP:</text>
        <paragraph num="(1)">
          <text>SFMNP applicants and recipients;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Local agencies assisting in implementing the SFMNP; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Farmers participating in the SFMNP and the WIC FMNP and who have applied to participate in these programs.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The Maryland Department of Health has adopted a procedure for the following persons to appeal certain adverse actions it takes in administering its portion of the WIC FMNP:</text>
        <paragraph num="(1)">
          <text>WIC FMNP recipients; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Local agencies assisting in distribution of the WIC FMNP.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Department” means the Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Farmers’ Market Nutrition Program” or “FMNP” means the Senior FMNP and the WIC FMNP.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Local agency” means a nonprofit entity or local government agency that certifies eligible SFMNP recipients, issues SFMNP coupons, or provides nutrition education or information on operational aspects of the SFMNP to SFMNP recipients.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Secretary” means the Secretary of the Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“Senior Farmers’ Market Nutrition Program” or “SFMNP” means the Federal-State partnership between USDA and the Department in which USDA provides federal funds to the Department to administer a program designed to:</text>
          <paragraph num="(a)">
            <text>Provide SFMNP recipients access to locally grown fruits, vegetables, honey, and herbs; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Increase the domestic consumption of agricultural commodities through farmers’ markets, roadside stands, and community supported agricultural programs.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(6)">
          <text>“SFMNP recipient” means an individual, as defined under 7 CFR §249.6, as amended, who is eligible to receive benefits under the SFMNP.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“USDA” means the United States Department of Agriculture, Food and Nutrition Service.</text>
        </paragraph>
        <paragraph num="(8)">
          <text>“WIC FMNP” means a Federal-State partnership that USDA has with the Department in which USDA provides federal funds to the Department to administer a program designed to:</text>
          <paragraph num="(a)">
            <text>Provide WIC FMNP recipients access to locally grown fruits, vegetables, and herbs; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Increase the domestic consumption of agricultural commodities through farmers’ markets, roadside stands, and community supported agricultural programs.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(9)">
          <text>“WIC FMNP recipient” means a pregnant woman, breastfeeding woman, postpartum woman, infant, or child who is receiving benefits under the Program, and the breastfed infant of a breastfeeding woman participant under the WIC Program authorized under §17 of the Child Nutrition Act of 1966, as amended.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Appealing Adverse Actions to the Secretary.">
      <paragraph num="A.">
        <text>SFMNP applicants. An SFMNP applicant may appeal the denial of certification of SFMNP benefits unless the denial is solely because of the lack of sufficient funding to provide SFMNP benefits to all eligible applicants. While awaiting the hearing, the SFMNP applicant may not receive SFMNP benefits.</text>
      </paragraph>
      <paragraph num="B.">
        <text>SFMNP Participants.</text>
        <paragraph num="(1)">
          <text>An SFMNP recipient may appeal the disqualification or suspension of SFMNP benefits.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Excepting an SFMNP recipient whose certification period has already expired or who become otherwise ineligible for SFMNP benefits, an SFMNP recipient who appeals the termination of benefits within the period of time provided under Regulation .05 of this chapter shall continue to receive SFMNP benefits until the Secretary reaches a decision or the certification period expires, whichever occurs first.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>An SFMNP recipient who becomes ineligible during a certification, or whose certification period expires, may appeal the termination. While awaiting the hearing, the SFMNP recipient may not receive new benefits.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>A local agency may appeal an action disqualifying it from participating in the SFMNP.</text>
      </paragraph>
      <paragraph num="D.">
        <text>A farmer may appeal an action:</text>
        <paragraph num="(1)">
          <text>Denying that person’s application to participate in the WIC FMNP or SFMNP;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Imposing a sanction under the WIC FMNP or SFMNP; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Disqualifying that person from participating in the WIC FMNP or SFMNP.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Matters Not Subject to Appeal.">
      <text>A farmer or local agency may not appeal the expiration of a contract or agreement with the Department in connection with the WIC FMNP or SFMNP under this chapter.</text>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Time Limit for Requesting a Hearing.">
      <paragraph num="A.">
        <text>Except a farmer participating in the WIC FMNP, a person who is the subject of an adverse action listed in Regulation .03 of this chapter (for example, the SFMNP applicant or recipient, a local agency, or a farmer participating in the SFMNP) shall file a written request for a hearing with the Department within 30 days from the date that the Department mails or otherwise issues the notice of the action.</text>
      </paragraph>
      <paragraph num="B.">
        <text>A farmer participating in the WIC FMNP shall file a written request for a hearing with the Maryland Department of Health within 10 days from the date that the Department mails or otherwise issues the notice of action.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The Department shall consider a request for a hearing filed on the earlier of the dates it is:</text>
        <paragraph num="(1)">
          <text>Received by the Department, such as by delivery by the person; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Postmarked by the United States Postal Service.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Postponement Pending Decision.">
      <text>If the Department finds that an adverse action that affects a local agency or farmer may unduly inconvenience SFMNP or WIC FMNP recipients, the Department may postpone the action until a decision in the appeal is rendered.</text>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Procedure.">
      <text>If the Department takes one of the adverse actions listed in Regulation .03 of this chapter, it shall provide the person affected (for example, the SFMNP applicant or recipient, a local agency, or a farmer) with the following:</text>
      <paragraph num="A.">
        <text>15 calendar days in advance of the effective date of the adverse action, written notification of the adverse action, the cause for the action, and the effective date of the action, including the Department’s determination of whether the action shall be postponed under Regulation .06 of this chapter if it is appealed, and the opportunity for a hearing;</text>
      </paragraph>
      <paragraph num="B.">
        <text>The opportunity to appeal the Department’s action within the time limits set forth in Regulation .05 of this chapter;</text>
      </paragraph>
      <paragraph num="C.">
        <text>10 business days advance notice of the time and place of the hearing to provide all parties involved sufficient time to prepare for the hearing;</text>
      </paragraph>
      <paragraph num="D.">
        <text>The opportunity to present the person’s case and at least one opportunity to reschedule the hearing date upon specific request;</text>
      </paragraph>
      <paragraph num="E.">
        <text>The opportunity to confront and cross-examine adverse witnesses;</text>
      </paragraph>
      <paragraph num="F.">
        <text>The opportunity to be represented by counsel or, in the case of an SFMNP recipient, by a representative designated by the recipient, if desired;</text>
      </paragraph>
      <paragraph num="G.">
        <text>The opportunity to review the case record before the hearing; and</text>
      </paragraph>
      <paragraph num="H.">
        <text>Written notification of the decision in the appeal, within 60 days from the date of receipt of the request for a hearing by the Department.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Department’s Decision.">
      <text>The Department’s action shall rest solely on the evidence presented at the hearing and the statutory and regulatory provisions governing such hearings. The basis for the Department’s decision shall be stated in writing.</text>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Continuing Responsibilities.">
      <text>When a farmer or local agency appeals an adverse action and is permitted to continue in the FMNP while the appeal is pending, the farmer or local agency continues to be responsible for compliance with all FMNP regulations and the terms of the written agreement or contract with the Department.</text>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Judicial Review.">
      <text>An SFMNP applicant or recipient, a local agency, or a farmer affected by an adverse decision of the Secretary may file a petition for judicial review in the appropriate circuit court as required by the Maryland Rules of Procedure.</text>
    </regulation>
    <regulation prefix="Regulation" num=".11" heading="Mediation.">
      <text>If a person affected by an adverse action of the Department has filed an appeal with the Secretary, the person may request that the appeal process be paused for 60 days to attempt to resolve the matter through the Department’s Mediation Program. If the matter is not resolved through mediation by the end of the 60-day period, the appeal process shall resume.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-103, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date:</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective September 10, 2021 (48:19 Md. R. 799); emergency provision expired effective March 8, 2022</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted effective April 4, 2022 (49:7 Md. R. 469)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 22, 2024 (51:1 Md. R. 16)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended effective January 22, 2024 (51:1 Md. R. 16)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03B amended effective January 22, 2024 (51:1 Md. R. 16)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .05 amended effective January 22, 2024 (51:1 Md. R. 16)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .07A, B, C amended effective January 22, 2024 (51:1 Md. R. 16)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .09 amended effective January 22, 2024 (51:1 Md. R. 16)</annotation>
    </annotations>
  </chapter>
  <chapter num="19" heading="Certified Local Farm Enterprise Program">
    <regulation prefix="Regulation" num=".01" heading="General — Purpose.">
      <text>Each procurement agency shall structure its procurement procedures for food to try to achieve an overall goal of 20 percent of the unit’s total dollar value of all such procurement contracts made directly or indirectly from Certified Local Farm Enterprises.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Scope.">
      <text>This chapter applies to every procurement of food by a procurement agency.</text>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Certification” means a determination by the Office for the Certified Local Farm Enterprise Program through the procedures outlined in this chapter that a legal entity is a Certified Local Farm Enterprise for purposes of these regulations.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Certified Local Farm Enterprise” means a local farm enterprise that holds a certification issued by the Office for the Certified Local Farm Enterprise Program.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Department” means the Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>“Food” or “food product” means any locally grown agricultural, horticultural, vegetable, or fruit product of the soil, including livestock, meats, poultry, eggs, dairy products, nuts, honey, and every food product of a farm, a forest, an orchard, a garden or water.</text>
        </paragraph>
        <paragraph num="(5)">
          <text>“Locally grown” means food grown in Maryland or within 50 miles of the Maryland State border.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Office” means the Office for the Certified Local Farm Enterprise Program.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Procurement agency” means a principal department or independent unit of the Executive Branch of the State, not otherwise exempted from application of this chapter, that is authorized under State law to procure food.</text>
        </paragraph>
        <paragraph num="(8)">
          <text>“Program” means the Certified Local Farm Enterprise Program.</text>
        </paragraph>
        <paragraph num="(9)">
          <text>“Solicitation” means public notice of a solicitation for bids, offers, or expressions of interest which contains the nature of the procurement, relevant dates, the availability of solicitation documents, if any, and other pertinent information. The notice may consist of, but is not limited to:</text>
          <paragraph num="(a)">
            <text>Legal advertisement;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Newspaper notice;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Bid board notice;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Bid or proposal documents including the invitation for bids or request for proposals; or</text>
          </paragraph>
          <paragraph num="(e)">
            <text>eMaryland Marketplace notice.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Criteria to Become a Certified Local Farm Enterprise.">
      <paragraph num="A.">
        <text>To become a Certified Local Farm Enterprise, the Office need only determine that a local farm enterprise meets the nutrient management requirements established under Agriculture Article, Title 8, Subtitle 8, Annotated Code of Maryland. No other criteria shall be required for certification.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The Office shall certify and decertify local farm enterprises through a single process, which may occur by mail, hand-delivery, or electronic application on a form created by the Office. The Office may decertify a local farm enterprise that no longer meets the nutrient management requirements established under Agriculture Article, Title 8, Subtitle 8, Annotated Code of Maryland.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The Office may consider initial applications for certification at any time. The Office shall re-certify local farm enterprises on an annual basis in January of each year.</text>
      </paragraph>
      <paragraph num="D.">
        <text>The Office may decertify any local farm enterprise if the Department determines that a local farm enterprise does not meet the nutrient management requirements established under Agriculture Article, Title 8, Subtitle 8, Annotated Code of Maryland.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Central Directory.">
      <paragraph num="A.">
        <text>The Office shall publish and maintain in an electronic format available to the general public through the internet a Central Directory of local farm enterprises it has certified under this chapter. The Central Directory shall specify the type of food primarily provided by and the date of certification of the Certified Local Farm Enterprise and shall include the address, phone number, and contact person for the Certified Local Farm Enterprise.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The Central Directory shall include all contract information available to the Office for the Certified Local Farm Enterprise, except when disclosure is prohibited by State Government Article, Title 10, Subtitle 6, Part III, Annotated Code of Maryland, and the certification number of the local farm enterprise.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The Central Directory may include other information the Office considers necessary or appropriate to encourage participation in the procurement process by Certified Local Farm Enterprises.</text>
      </paragraph>
      <paragraph num="D.">
        <text>The Central Directory:</text>
        <paragraph num="(1)">
          <text>Shall be continuously updated each year;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Shall identify the date of certification for each local farm enterprise that has obtained certification during the previous calendar year;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Shall include a list of all local farm enterprises that have become ineligible to participate in the Program in the previous calendar year because they have been decertified; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>May not include any local farm enterprise that has a pending certification application.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Procurement Solicitations.">
      <paragraph num="A.">
        <text>To attain the Certified Local Farm Enterprise purpose under Regulation .01 of this chapter, a procurement agency shall set an overall Certified Local Farm Enterprise participation goal of 20 percent of the unit's total dollar value of all procurement contracts for food.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Prebid and Preproposal Conferences. When prebid or preproposal conferences are held, the procurement agency shall explain the Certified Local Farm Enterprise provisions of the solicitation, the documentation required, and their relationship to the determinations that will be made in connection with the evaluation process.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Waiver.">
      <paragraph num="A.">
        <text>An agency head may waive any of the provisions of Regulation .06 of this chapter for a sole-source, expedited, or emergency procurement in which the public interest cannot reasonably accommodate use of those procedures.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If, for good reason, the apparent successful bidder or offeror is unable to achieve the overall Certified Local Farm Enterprise contract goal, the bidder or offeror shall submit to the procurement agency the following documentation in support of a waiver request:</text>
        <paragraph num="(1)">
          <text>A detailed statement of the efforts made to utilize Certified Local Farm Enterprises;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A detailed statement of the efforts made to contact and negotiate with Certified Local Farm Enterprises, including:</text>
          <paragraph num="(a)">
            <text>The names, addresses, dates, and telephone and certification numbers of Certified Local Farm Enterprises contacted;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A description of the information provided to Certified Local Farm Enterprises contacted regarding any solicitation; and</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>A list of Certified Local Farm Enterprises found to be unavailable.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>A procurement agency may only grant a waiver of a Certified Local Farm Enterprise contract goal upon a reasonable demonstration by the bidder or offeror that Certified Local Farm Enterprise participation was unable to be obtained, or was unable to be obtained at a reasonable price, and if the agency head or designee determines that the public interest is served by a waiver. In making a determination under this section, the agency head or designee may consider supply estimates, food prices, general market availability, and availability of Certified Local Farm Enterprises in the area where the food is to be supplied, other bids or offers substantiating significant variances between Certified Local Farm Enterprises and noncertified suppliers, and their impact on the overall cost of the contract to the State and any other relevant factor.</text>
      </paragraph>
      <paragraph num="D.">
        <text>The Office may waive any of the requirements of this chapter for a sole-source, expedited, or emergency procurement in which the public interest cannot reasonably accommodate use of the requirements in this chapter.</text>
      </paragraph>
      <paragraph num="E.">
        <text>When a waiver is granted, one copy of the waiver determination and the reasons for the determination shall be kept by the Office.</text>
      </paragraph>
      <paragraph num="F.">
        <text>Not later than July 31 of each year, the Office shall submit directly to the Board of Public Works an Annual Report of Waivers Granted under this regulation.</text>
      </paragraph>
      <paragraph num="G.">
        <text>The report required under §F of this regulation shall contain the following information on those contracts where Certified Local Farm Enterprise goals are present and one or more waiver requests have been approved:</text>
        <paragraph num="(1)">
          <text>The contract titles, numbers, and dates;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The number of waiver requests received;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The number of waiver requests granted; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Any other information specifically requested by the Board of Public Works.</text>
        </paragraph>
      </paragraph>
      <paragraph num="H.">
        <text>The Board of Public Works shall:</text>
        <paragraph num="(1)">
          <text>Retain a copy of the Annual Report of Waivers Granted; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Forward a copy of the Annual Report of Waivers Granted to the Senate Education, Health and Environmental Affairs Committee and the House Health and Government Operations Committee on or before October 1 of each year.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Amendment of Procurement Bid.">
      <paragraph num="A.">
        <text>If, at any time after submission of a bid or proposal and before execution of a contract, a bidder or offeror determines that a Certified Local Farm Enterprise listed on the Certified Local Farm Enterprise participation schedule has become or will become unavailable or ineligible to provide the food products required under the contract, then the bidder or offeror:</text>
        <paragraph num="(1)">
          <text>Within 72 hours of making the determination, shall provide written notice to the procurement officer; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Within 5 business days of making the determination, may make a written request to the procurement officer to amend the Certified Local Farm Enterprise participation portion of the bid.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>For purposes of this regulation, “ineligible” means a farm enterprise may not be counted toward meeting the goal of 20 percent of the unit's total dollar value of a procurement contract because the farm enterprise is no longer certified by the Office.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The request to amend the Certified Local Farm Enterprise participation shall include:</text>
        <paragraph num="(1)">
          <text>An explanation of the reason for excluding the ineligible supplier;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The name of each Certified Local Farm Enterprise that will substitute for the ineligible supplier; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A full description of the bidder's or offeror's efforts to substitute another Certified Local Farm Enterprise to supply the food that the unavailable or ineligible Certified Local Farm Enterprise would have supplied.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>If a bidder or offeror cannot designate a substitute Certified Local Farm Enterprise for an ineligible supplier, the bidder or offeror’s bid may be disqualified.</text>
      </paragraph>
      <paragraph num="E.">
        <text>If, during the term of a procurement contract, a Certified Local Farm Enterprise becomes decertified, the bidder or offeror shall designate within 30 calendar days a substitute Certified Local Farm Enterprise to complete the contract obligations.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Compliance.">
      <paragraph num="A.">
        <text>Each procurement agency is responsible for ensuring compliance with Certified Local Farm Enterprise participation goals.</text>
      </paragraph>
      <paragraph num="B.">
        <text>To ensure compliance with Certified Local Farm Enterprise participation goals, each procurement agency shall:</text>
        <paragraph num="(1)">
          <text>Verify that the Certified Local Farm Enterprises listed in the Certified Local Farm Enterprise participation contract are actually providing farm products and receiving required compensation; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Monitor and collect data on contractor compliance with Certified Local Farm Enterprise participation goals.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The contractor shall permit the procurement agency to inspect any relevant matter, including records.</text>
      </paragraph>
      <paragraph num="D.">
        <text>Upon determining that a contractor did not make good faith efforts to comply with Certified Local Farm Enterprise participation goals, the procurement agency shall notify the contractor in writing of its findings and shall specify what corrective actions are required. The contractor shall initiate the corrective actions within 10 calendar days and complete them within the time specified by the procurement agency.</text>
      </paragraph>
      <paragraph num="E.">
        <text>If a procurement agency determines that material noncompliance with local farm enterprise contract provisions exists and that the contractor refuses or fails to take the corrective action required by the procurement agency, then the following sanctions may be invoked:</text>
        <paragraph num="(1)">
          <text>Termination of the contract;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Referral to the Office of the Attorney General for appropriate action; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Initiation of any other specific remedy identified by contract.</text>
        </paragraph>
      </paragraph>
      <paragraph num="F.">
        <text>Upon completion of any contract, the procurement agency shall:</text>
        <paragraph num="(1)">
          <text>Prepare a report that compares the dollar value of the payments actually received by Certified Local Farm Enterprises with the dollar value of the amount that Certified Local Farm Enterprises were intended to have received under the contract's Certified Local Farm Enterprise participation goal; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Include in the report an explanation of any discrepancy.</text>
        </paragraph>
      </paragraph>
      <paragraph num="G.">
        <text>A procurement agency may use any other compliance mechanism authorized by contract or this chapter.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Reporting.">
      <paragraph num="A.">
        <text>Within 90 days after the end of each fiscal year, each procurement agency shall report to the Office.</text>
      </paragraph>
      <paragraph num="B.">
        <text>A report under this regulation for the preceding fiscal year shall:</text>
        <paragraph num="(1)">
          <text>State the total number and value of procurement contracts for food, as applicable, between the procurement agency; and</text>
          <paragraph num="(a)">
            <text>A Certified Local Farm Enterprise; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A primary contractor, showing the number and value of contracts that the primary contractor has with Certified Local Farm Enterprises;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>State the percentage that those procurement contracts for food in §B(1) of this regulation represents of the total number and value of procurement contracts for food awarded by the procurement agency;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>State the total number and the names of Certified Local Farm Enterprises that participated in procurement contracts for food awarded by the procurement agency; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>For each Certified Local Farm Enterprise included in the report under §B(3) of this regulation, list all procurement contracts for food awarded by the procurement agency to the Certified Local Farm Enterprise or a vendor who has contracted with a Certified Local Farm Enterprise, including a description of the contract.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>Reports required by this regulation shall be:</text>
        <paragraph num="(1)">
          <text>In a form prescribed by the Office; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Approved by the Board of Public Works.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-103; State Finance and Procurement Article, §14-704; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date:</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted as an emergency provision effective December 16, 2021 (49:2 Md. R. 76); adopted permanently effective April 4, 2022 (49:7 Md. R. 469)</annotation>
    </annotations>
  </chapter>
  <chapter num="20" heading="Urban Agriculture Water and Power Infrastructure Grant Program">
    <regulation prefix="Regulation" num=".01" heading="General.">
      <text>This chapter establishes the Urban Agriculture Water and Power Infrastructure Grant Program. The purpose of the Program is to increase the viability of urban farming and community and to improve access to urban-grown foods.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <text>A In this chapter, the following terms have the meaning indicated.</text>
      <text>B Terms Defined.</text>
      <paragraph num="(1)">
        <text>“Department” means Maryland Department of Agriculture.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>“Eligible cost” means a cost that the Department determines is necessary for the purchase and installation of:</text>
        <paragraph num="(a)">
          <text>Water meters;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Water pipes;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Irrigation hoses;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Electric meters;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Electric lines; or</text>
        </paragraph>
        <paragraph num="(f)">
          <text>Any other equipment associated with water supply and irrigation or electric power access that may be required to provide water or electrical power to operation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>“Farm product” means:</text>
        <paragraph num="(a)">
          <text>Any agricultural, horticultural, vegetable, or fruit product of the soil, whether raw or canned, frozen, dried, pickled, or otherwise processed;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Livestock, meats, marine food products, poultry, eggs, or dairy products;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Wool, hides, feathers, nuts, or honey; or</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Any product of farm, forest, orchard, garden, or water.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(4)">
        <text>“Program” means the Urban Agriculture Water and Power Infrastructure Grant Program.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>“Project” means the installation of equipment associated with water supply and irrigation or electric power access to provide water or electrical power to a farm or community garden in an urban area.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>“Qualified nonprofit organization” means a nonprofit organization that is organized and operated exclusively for exempt purposes under §501(c)(3) of the Internal Revenue Code and operates a farm or community garden in an urban area.</text>
      </paragraph>
      <paragraph num="(7)">
        <text>“Urban agricultural producer” means any person that:</text>
        <paragraph num="(a)">
          <text>Annually produces farm products in an urban area; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Sells, plans to sell, or normally would have sold at least $1,000 annually of farm products produced from a farming operation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(8)">
        <text>“Urban area” means an area of the State delineated as an urban area by the U.S. Census Bureau set forth in “Urban Area Criteria for the 2020 Census—Final Criteria”, at 87 Federal Register 16706 (March 24, 2022).</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Eligibility.">
      <text>An urban agricultural producer or qualified nonprofit organization is eligible to apply for financial assistance under the Program to install equipment associated with water supply and irrigation or electric power access to provide water or electrical power to a farm or community garden in an urban area.</text>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Application Procedures.">
      <text>A person who applies for cost-sharing funds under the Program shall submit to the Department the following:</text>
      <paragraph num="A.">
        <text>An application on a Department form, including a project narrative describing the proposed project, which shall include an approximate total project cost figure based on all eligible costs;</text>
      </paragraph>
      <paragraph num="B.">
        <text>A map identifying the project location, street address and parcel boundaries of the operation;</text>
      </paragraph>
      <paragraph num="C.">
        <text>For a nonprofit organization:</text>
        <paragraph num="(1)">
          <text>A favorable determination letter from the Internal Revenue Service that the organization meets the requirements of §501(c)(3) of the Internal Revenue Code; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>A letter of good standing with the State of Maryland Department of Assessments and Taxation;</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Documentation supporting the sale or anticipated sale of at least $1,000 annually of farm products from the farming operation in the State;</text>
      </paragraph>
      <paragraph num="E.">
        <text>Except for an individual applying on the individual’s own behalf, documentation establishing that person’s authority to sign on behalf of the organization on all matters related to the Program; and</text>
      </paragraph>
      <paragraph num="F.">
        <text>A completed Current Nutrient Management Plan Certification form or Nutrient Management Plan Waiver, as applicable.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Application Review and Approval.">
      <paragraph num="A.">
        <text>Department Approval or Disapproval of Application.</text>
        <paragraph num="(1)">
          <text>If the Department approves a project, it shall base the amount of State cost-sharing funds on:</text>
          <paragraph num="(a)">
            <text>The eligibility of the applicant; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The lack of existing water or power infrastructure to the operation.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Department shall disapprove an application for any of the following reasons:</text>
          <paragraph num="(a)">
            <text>The application is incomplete or does not comply with these regulations;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The applicant’s land is not used for agricultural purposes;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The application is for a project which is already under construction; or</text>
          </paragraph>
          <paragraph num="(d)">
            <text>No funds are available.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Within 30 days, the Department shall notify the applicant if an application is approved. If the application has been approved, the Department shall inform the applicant of the estimated State cost-sharing amount for the project and the applicant’s required matching amount. If the application has not been approved, the Department shall inform the applicant of the reason it has been denied.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Cost-Sharing Agreement.">
      <paragraph num="A.">
        <text>The Department and the applicant shall execute an agreement. The agreement, among other things, shall obligate the applicant to:</text>
        <paragraph num="(1)">
          <text>Establish, construct, or install utilities in accordance with the jurisdictions permit specifications;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Maintain the utility for at least five years from date of completion;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Bind any successor in title for the life of the project as specified in the agreement; and</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Provide any required funds for the project.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Before the Department executes a cost-sharing agreement with a farm tenant, it shall obtain the consent of the landlord to the terms and conditions of the agreement.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Project Establishment.">
      <paragraph num="A.">
        <text>After all parties execute a cost-sharing agreement, an applicant shall begin the approved project.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The applicant shall be responsible for all steps in completing the project, including, but not limited to, obtaining any necessary permits and the services of contractors or obtaining any necessary materials or equipment to complete project construction.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Distribution of Cost-Sharing Funds.">
      <paragraph num="A.">
        <text>The applicant who executes a cost-sharing agreement shall be paid in accordance with the following payment schedule:</text>
        <paragraph num="(1)">
          <text>Upon receipt of all required construction permits, up to 25 percent of the estimated costs as outlined in the cost-sharing agreement;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Upon commencement of construction, up to 50 percent of estimated costs as outlined in the cost-sharing agreement minus any payment made previously; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Upon completion of project and satisfactory final inspection, 87.5 percent of realized eligible costs minus any payments made previously.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Except for payments described in §A(1) and (2) of this regulation, the applicant shall document all eligible costs on an itemized statement. Each itemized cost shall be supported by payment receipts or unpaid invoices from vendors. Each receipt shall be signed by the person who executes a cost-sharing agreement and certified that each cost is true and correct to the best of that person's knowledge. Each payment receipt or unpaid invoice shall show the following:</text>
        <paragraph num="(1)">
          <text>Vendor names;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Type of material, labor, or equipment used on the project; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The unit cost paid for the item, the total amount paid to the vendor, and the date payment was received.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The applicant shall complete and submit to the Department a departmental claim for payment form for each scheduled payment outlined in §A of this regulation.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Project Monitoring.">
      <text>After the Department has distributed cost-sharing funds, the Department shall monitor projects to see if they are maintained in accordance with the agreement. Any violations shall be documented on a departmental form, a copy of which shall be provided to the applicant.</text>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Failure to Establish or Maintain Project or to Have or Comply with Nutrient Management Plan.">
      <paragraph num="A.">
        <text>If the applicant fails to establish, install, construct, or maintain the project in accordance with any agreement executed with the Department, that applicant shall be 	liable for the full amount of State cost-sharing funds paid for any practice that was not implemented or maintained. However, the applicant is not liable for inadequate maintenance or destruction of a best management practice if caused by an act of nature that could not be reasonably anticipated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If the applicant is required to have a nutrient management plan under Agriculture Article, Title 8, Subtitle 8, Annotated Code of Maryland, and fails to obtain a nutrient management plan or to comply with this plan, the Department may require repayment of the cost-sharing funds it paid towards installation of the project.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".11" heading="Administrative Reporting.">
      <text>The Department shall submit a report to the Governor, the Senate Budget and Taxation Committee, and the House Appropriations Committee on the effectiveness of the funding provided for the Program by October 15 of each year.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-103; State Finance and Procurement Article, §14-704; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: April 17, 2023 (50:7 Md. R. 302)</annotation>
    </annotations>
  </chapter>
  <chapter num="21" heading="Urban Agriculture Grant Program">
    <regulation prefix="Regulation" num=".01" heading="General.">
      <text>This chapter establishes the Urban Agriculture Grant Program. The purpose of the Program is to:</text>
      <paragraph num="A.">
        <text>Increase the viability of urban farming; and</text>
      </paragraph>
      <paragraph num="B.">
        <text>Improve access to urban-grown foods.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this chapter, the following terms have the meaning indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Department” means Maryland Department of Agriculture.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Eligible Cost” means a cost:</text>
          <paragraph num="(a)">
            <text>To secure real property, limited to 20 percent of the grant amount;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>To make capital improvements;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>For operating expenses, limited to 15 percent of the amount of the grant; or</text>
          </paragraph>
          <paragraph num="(d)">
            <text>That maintains safe, environmentally sustainable, and socially responsible practices.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>“Farm product” means:</text>
          <paragraph num="(a)">
            <text>Any agricultural, horticultural, vegetable, or fruit product of the soil, whether raw or canned, frozen, dried, pickled, or otherwise processed;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Livestock, meats, marine food products, poultry, eggs, or dairy products;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Wool, hides, feathers, nuts, or honey; and</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Every product of farm, forest, orchard, garden, or water.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>“Healthy Food Priority Area” means a census tract in which:</text>
          <paragraph num="(a)">
            <text>At least 25 percent of the residents qualify as low-income according to the most recent U.S. Census Bureau survey; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Accessibility to supermarkets, grocery stores, or other sources of healthy affordable food, including fresh fruits and vegetables, is limited (which may be determined using measurements and indicators that can be found in the Food Access Research Atlas published by the USDA Economic Research Service).</text>
          </paragraph>
        </paragraph>
        <paragraph num="(5)">
          <text>“Program” means the Urban Agriculture Grant Program.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Qualified nonprofit organization” means a nonprofit organization that is organized and operated exclusively for exempt purposes under §501(c)(3) of the United States Code and operates a farm or community garden in an urban area.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Safe, environmentally sustainable, and socially responsible practices” include those that:</text>
          <paragraph num="(a)">
            <text>Aim to minimize negative impacts on the environment such as practices that:</text>
            <paragraph num="(i)">
              <text>Promote soil health;</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Prevent soil erosion; and</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>Manage water resources (e.g., utilize efficient irrigation techniques such as drip irrigation);</text>
            </paragraph>
          </paragraph>
          <paragraph num="(b)">
            <text>Ensure fair treatment of workers; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Support local communities by providing locally produced fruits and vegetables.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(8)">
          <text>“Socially disadvantaged urban farmer” means an urban agricultural producer who is a limited resource farmer (e.g., a farmer who has low household income and low gross farm sales), and may include a beginning farmer who is similarly situated.</text>
        </paragraph>
        <paragraph num="(9)">
          <text>“Steward” means the owner of the land or a person who has control and possession of the land through a written lease.</text>
        </paragraph>
        <paragraph num="(10)">
          <text>“Urban agricultural producer” means any person that annually sells, or normally would have sold, $1,000 or more of farm products in an urban area.</text>
        </paragraph>
        <paragraph num="(11)">
          <text>“Urban area” means an area of the State that is:</text>
          <paragraph num="(a)">
            <text>Delineated as an urban area by the U.S. Census Bureau; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Within the boundaries of a municipal corporation.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Eligibility.">
      <paragraph num="A.">
        <text>An urban agricultural producer is eligible to apply for financial assistance under the program provided the person:</text>
        <paragraph num="(1)">
          <text>Is in compliance with the State’s Nutrient Management Law under Agriculture Article, §§8-801 et seq., Annotated Code of Maryland; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Agrees to complete a new farming training course, provides documentation of having completed a new farming training course, or participates in Department-approved continuing education programs.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>A nonprofit organization or an institute of higher education is qualified to receive a grant if the Department determines that:</text>
        <paragraph num="(1)">
          <text>With respect to a nonprofit organization, the nonprofit organization is incorporated in or maintains its principal place of business in an urban area;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The entity will provide urban agricultural producers who receive grants under this Program direct training and ongoing technical assistance in accordance with a program certified by the U.S. Department of Agriculture or the Department; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The entity works to increase the viability of urban farming and improve access to urban-grown foods.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Application Procedures.">
      <paragraph num="A.">
        <text>A qualified applicant that applies for grant funds under the program shall submit to the Department the following:</text>
        <paragraph num="(1)">
          <text>If the applicant is an urban agricultural producer:</text>
          <paragraph num="(a)">
            <text>An application on a Department-produced form which shall include a budget estimate of the overall eligible costs;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A map identifying the location of the operation including its street address and the parcel boundaries of the land on which the operation is situated;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Documentation showing that the person annually sells, or would normally have sold, in an urban area at least $1,000 of farm products from the person’s farming operation;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Except for an individual applying on the individual’s own behalf, documentation proving the applicant’s authority to sign on behalf of the organization on all matters related to the program;</text>
          </paragraph>
          <paragraph num="(e)">
            <text>A completed Current Nutrient Management Plan Certification form or Nutrient Management Plan Waiver, as applicable; and</text>
          </paragraph>
          <paragraph num="(f)">
            <text>A completed IRS Tax Form W-9.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>If the applicant is a non-profit organization or institution of higher education:</text>
          <paragraph num="(a)">
            <text>An application based on a Department-approved form which shall include a budget estimate of the overall eligible costs; and</text>
          </paragraph>
          <paragraph num="(b)">
            <text>For qualified nonprofit organizations:</text>
            <paragraph num="(i)">
              <text>A current IRS Determination Letter indicating its §501(c)3 status under Title 26 of the United States Code; and</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Evidence of good standing with the State of Maryland;</text>
            </paragraph>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Use of Grant Funds.</text>
        <paragraph num="(1)">
          <text>Limitations. A grant recipient may use a grant under this program to:</text>
          <paragraph num="(a)">
            <text>Secure real property:</text>
            <paragraph num="(i)">
              <text>That has established the necessary infrastructure to grow food;</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>For which the grantee is the steward of the real property; and</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>For which no more than 20 percent of the grant money will be used to secure property;</text>
            </paragraph>
          </paragraph>
          <paragraph num="(b)">
            <text>Maintain safe, environmentally sustainable, and socially responsible practices; and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Make capital improvements to support viable urban agriculture enterprises.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>To receive a grant under this program, the applicant shall demonstrate that the funds the person receives will provide a measurable community benefit including, but not limited to, improving local food access; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A grant recipient may not use more than 15 percent of the amount of the grant for operating expenses.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Application Review and Approval.">
      <paragraph num="A.">
        <text>The Department to Approve or Disapprove an Application.</text>
        <paragraph num="(1)">
          <text>If the Department approves a project, it shall base the amount of State grant funds on:</text>
          <paragraph num="(a)">
            <text>The eligibility of the applicant;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Whether, and the degree to which, the project provides a benefit to socially disadvantaged urban farmers;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Whether, and the degree to which, the project increases the viability of urban farming;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Whether, and the degree to which, the project improves access to urban-grown foods; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Whether, and the degree to which, the project provides urban grown foods to urban areas designated as a Healthy Food Priority Area.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>The Department shall disapprove an application for any of the following reasons:</text>
          <paragraph num="(a)">
            <text>The application is incomplete or does not comply with these regulations;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The applicant’s land is not used for agricultural purposes;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The application is for a project which is already under construction; or</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The Department has no available funds.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Within 30 days from receipt of an application, the Department shall notify the applicant whether the application has been approved and the amount of the grant funds awarded.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Grant Agreement.">
      <paragraph num="A.">
        <text>Urban Agricultural Producer.</text>
        <paragraph num="(1)">
          <text>The Department and the applicant shall execute an agreement that, among other things, obligates the applicant to:</text>
          <paragraph num="(a)">
            <text>Institute or install the project and to maintain it for the life of the project, that being, 5 years from the date of purchase or installation;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Use, follow, or maintain items acquired under the grant as recommended by the manufacturer to promote safe, environmentally sustainable, and socially responsible practices;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Maintain capital improvements as constructed or installed under the grant based on manufacturer’s recommendations for the life of the project as specified within this Agreement;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Demonstrate that the project provides a measurable community benefit including, but not limited to, improving local food access; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>If necessary, provide additional funds on balances to institute or install the project beyond the awarded funding.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Before the Department executes a grant agreement with a farm tenant, the farm tenant shall obtain the landowner’s consent to proceed with the project as specified under the terms and conditions of the grant agreement.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Non-Profit Organization and Institutes of Higher Education. The Department and the applicant shall execute an agreement, that among other things, requires the entity to:</text>
        <paragraph num="(1)">
          <text>Outline the curriculum for each course being offered;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Outline each course being administered in-person, virtually, or combination of both; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Indicate the number of attendees that have received the Program’s assistance.</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Provide a final report to the Department within 90 days after the end of the grant cycle.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Project Establishment.">
      <paragraph num="A.">
        <text>After all parties execute a grant agreement, an applicant shall begin the approved project.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The applicant shall be responsible for all steps in completing the project, including, but not limited to, obtaining any necessary:</text>
        <paragraph num="(1)">
          <text>Permits;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The services of contractors to install or complete the project; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Materials or equipment to install or complete the project.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".08" heading="Distribution of Grant Funds.">
      <paragraph num="A.">
        <text>The applicant who executes a grant agreement shall be paid in accordance with the following payment schedule:</text>
        <paragraph num="(1)">
          <text>Upon receipt of the approval letter, the person may request up to 50 percent of the award as outlined in the grant agreement;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Upon submitting a Progress Report on a Departmental form as set forth in §B(1) of this regulation, the person may request up to 40 percent of the award as outlined in the grant agreement;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Upon completion of the Final Progress Report on a Departmental form as set forth in §B(2) of this regulation, the remaining 10 percent of the award as outlined in the grant agreement can be requested for payment.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Reports.</text>
        <paragraph num="(1)">
          <text>Progress Report. The Progress Report shall contain the following at a minimum:</text>
          <paragraph num="(a)">
            <text>A narrative describing the work that has been completed thus far;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A plan for remaining work to be completed;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>A summary of the project budget and schedule;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>A list of action items; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>A narrative identifying any issues and risks, and what is being done to rectify them.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Final Report. The Final Report shall contain the following at a minimum:</text>
          <paragraph num="(a)">
            <text>A project summary narrative;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A summary of how the project budget was utilized;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Project Outputs (training events, outreach, sales of farm products and location of sales, etc.);</text>
          </paragraph>
          <paragraph num="(d)">
            <text>Project Impacts (number of people benefitted/trained); and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>Any additional information requested by the Department.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The applicant shall document all eligible costs on an itemized statement. Each itemized cost shall be supported by payment receipts or unpaid invoices from vendors. Each receipt shall be signed by the person who executes a cost share agreement and certified that each cost is true and correct to the best of that person's knowledge. Each payment receipt or unpaid invoice shall show the following:</text>
        <paragraph num="(1)">
          <text>Vendor, or vendors names and addresses;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Type of material, labor, equipment, or item purchased; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The unit cost for the item, the total amount per item, and any payments made to the vendor.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>The applicant shall complete and submit to the Department, utilizing a departmental claim for payment form, each scheduled payment outlined in §A of this regulation.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".09" heading="Project Monitoring—Violations of Agreement.">
      <paragraph num="A.">
        <text>After the Department has distributed grant funds, the Department shall monitor that purchases are utilized and maintained in accordance with the agreement.  Any violations shall be documented on a departmental form, a copy of which shall be provided to the applicant.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If the applicant fails to comply with any portion of the agreement executed with the Department, that applicant shall be liable for the full amount of State grant funds paid. However, the applicant is not liable for inadequate maintenance or destruction of the items purchased if caused by an act of nature that could not be reasonably anticipated.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".10" heading="Administrative Reporting.">
      <text>The Department shall submit a report to the Governor, the Senate Budget and Taxation committee, and the House Appropriations Committee on the effectiveness of the funding provided for this Program by December 30 of each year.</text>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §§2-2001 et seq.; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: April 14, 2025 (52:7 Md. R. 325)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended effective April 27, 2026 (53:8 Md. R. 356)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04B amended effective April 27, 2026 (53:8 Md. R. 356)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .05A amended effective April 27, 2026 (53:8 Md. R. 356)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .06A amended effective April 27, 2026 (53:8 Md. R. 356)</annotation>
    </annotations>
  </chapter>
  <chapter num="22" heading="Class 4 Limited Winery License Exemption for Maryland-Grown Agricultural Products">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>This chapter establishes the criteria and procedure for the Secretary to grant exemptions to Class 4 Limited Winery License applicants from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland.</text>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>The following terms have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Class 4 Limited Winery License holder” means a person who holds a Class 4 Limited Winery License that owns or has under contract less than 20 acres of Maryland-grown agricultural products in cultivation.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Maryland-grown agricultural product” means any product produced or cultivated on a farm or vineyard in the State other than cannabis or any other product containing tetrahydrocannabinol as defined in Alcoholic Beverages and Cannabis Article, §36-1102, Annotated Code of Maryland.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Secretary” means the Secretary of Agriculture.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Application for Exemption.">
      <paragraph num="A.">
        <text>Time of Application.  A Class 4 Limited Winery License holder may submit a written application to the Secretary requesting a 1-year exemption from the requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, that at least 51 percent of the ingredients used in the annual production of the license holder’s wine are Maryland-grown agricultural products.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Decision on Application.  Within 30 days after a completed exemption application is received pursuant to §A of this regulation, the Secretary shall issue a decision granting or denying the application.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Duration of Exemption. An exemption granted by the Secretary under this chapter shall be valid for 1 year following the date the application is granted by the Secretary.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Criteria and Basis for Granting Exemption.">
      <paragraph num="A.">
        <text>Criteria. In deciding whether to grant a Class 4 Limited Winery holder’s request for an exemption under Regulation .03 of this chapter, the Secretary shall consider how the following events or factors may have affected the person within the year before filing the application:</text>
        <paragraph num="(1)">
          <text>Weather disasters, including but not limited to excessive moisture, frost, winter kill, or hurricanes;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Disease;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Pest pressure;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Chemical damage;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Steps taken by the applicant to minimize the need for the requested exemption; and</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Any other event or factor that the Secretary deems relevant for deciding whether to grant an applicant’s request for a 1-year exemption from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, including, but not limited to, whether the Secretary:</text>
          <paragraph num="(a)">
            <text>Determines that the event or factor is deemed to be one that was outside the control of the applicant; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Has previously granted the Class 4 Limited Winery License holder an exemption from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, and, if so, the number of times that the person has been granted this exemption.</text>
          </paragraph>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Basis for Exemption.  The Secretary may grant the Class 4 Limited Winery License holder’s request for an exemption if the person can demonstrate that:</text>
        <paragraph num="(1)">
          <text>The failure to meet the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, resulted from at least one of the events or factors identified in §A of this regulation; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Despite having taken reasonable steps to secure at least 51 percent of the ingredients used in the annual production of the licensed holder’s wine are Maryland-grown agricultural products, the Class 4 Limited Winery License holder is unable to meet the statutory percentage requirement.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The Secretary may deny a Class 4 Limited Winery License holder’s request for an exemption if the person has been granted an exemption for each of the previous 4 years.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">Agriculture Article, §2-103; and Alcoholic Beverages and Cannabis Article, §2-206; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: December 11, 2025 (52:24 Md. R. 1199)</annotation>
    </annotations>
  </chapter>
</subtitle>