House Study Bill 665 - Introduced
SENATE/HOUSE FILE _____
BY (PROPOSED DEPARTMENT OF
PUBLIC SAFETY BILL)
A BILL FOR
1 An Act providing for the regulation of hemp and hemp products,
2 providing penalties, and making penalties applicable.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 IOWA HEMP ACT
3 Section 1. Section 204.2, Code 2024, is amended by adding
4 the following new subsections:
5 NEW SUBSECTION. 01. “Advertise” means to present a
6 commercial message in any medium, including but not limited
7 to print, radio, television, sign, display, label, tag, or
8 articulation.
9 NEW SUBSECTION. 6A. “Distribute” means to transfer
10 possession.
11 NEW SUBSECTION. 15A. “Registrant” means a person who is
12 registered with the department of health and human services
13 pursuant to section 204.7.
14 Sec. 2. Section 204.2, subsection 2, paragraph c, Code 2024,
15 is amended to read as follows:
16 c. A hemp product is deemed to be a consumable hemp product
17 if it is any of the following all of the following apply:
18 (1) It is any of the following:
19 (a) Designed by the processor, including the manufacturer,
20 to be introduced into the human body.
21 (2) (b) Advertised as an item to be introduced into the
22 human body.
23 (3) (c) Distributed, exported, or imported, offered for
24 sale, or distribution sold to be introduced into the human
25 body.
26 (2) Its maximum tetrahydrocannabinol concentration is less
27 than or equal to the maximum tetrahydrocannabinol concentration
28 allowed under section 124.204, subsection 7.
29 Sec. 3. Section 204.2, subsection 14, Code 2024, is amended
30 by striking the subsection.
31 Sec. 4. Section 204.4, subsection 10, paragraph b, Code
32 2024, is amended to read as follows:
33 b. A third violation of a provision of this chapter in
34 a five-year period. The department shall disapprove any
35 application of a person for a five-year period following the
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1 date of the person’s last violation in the same manner as
2 provided in section 204.15.
3 Sec. 5. Section 204.7, subsection 4, Code 2024, is amended
4 to read as follows:
5 4. The department shall adopt rules regulating the
6 production of hemp, including but not limited to inspection
7 and testing requirements under section 204.8 or 204.9, and the
8 issuance of a temporary harvest and transportation permit or
9 certificate of analysis under section 204.8. The department
10 shall adopt rules as necessary to administer the negligent
11 violation program. The department may adopt other rules as
12 necessary or desirable to administer and enforce the provisions
13 of this chapter relating to hemp or hemp products.
14 Sec. 6. Section 204.7, subsection 8, paragraph a,
15 subparagraph (3), Code 2024, is amended to read as follows:
16 (3) The consumable hemp product complies with packaging
17 and labeling requirements, which shall be established by rules
18 adopted by the department of health and human services by rule.
19 Sec. 7. Section 204.7, subsection 8, paragraph a, Code 2024,
20 is amended by adding the following new subparagraphs:
21 NEW SUBPARAGRAPH. (4) The consumable hemp product complies
22 with restrictions upon the sale or other distribution of a
23 consumable hemp product established by rules adopted by the
24 department of health and human services.
25 NEW SUBPARAGRAPH. (5) The consumable hemp product meets
26 requirements for total delta-9 tetrahydrocannabinol potency on
27 a per serving and per container basis, as set forth by rules
28 adopted by the department of health and human services.
29 Sec. 8. Section 204.7, subsection 8, Code 2024, is amended
30 by adding the following new paragraph:
31 NEW PARAGRAPH. 0b. (1) A person is engaged in the retail
32 sale of a consumable hemp product, if any of the following
33 apply:
34 (a) The person offers to distribute a consumable hemp
35 product to a consumer in exchange for consideration.
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1 (b) The person is an owner of a business that distributes
2 consumable hemp products to consumers in exchange for
3 consideration.
4 (c) The person is a business that distributes consumable
5 hemp products to consumers in exchange for consideration and
6 presents a consumable hemp product to a consumer in the form
7 of a gift.
8 (2) A person, including a business, is engaged in the sale
9 of a consumable hemp product regardless of whether the person
10 is registered with the department of health and human services
11 as provided in this section.
12 Sec. 9. Section 204.11, subsection 3, Code 2024, is amended
13 to read as follows:
14 3. The suspension or revocation of a hemp license is in
15 addition to an order of disposal under section 204.10; the
16 imposition of a civil penalty under section 204.12, subject
17 to the provisions of section 204.15; or the imposition of any
18 other civil or criminal penalty authorized under state law.
19 Sec. 10. Section 204.12, Code 2024, is amended to read as
20 follows:
21 204.12 Civil penalties —— general.
22 1. A Unless another civil penalty is otherwise provided in
23 this chapter, a person who violates a provision of this chapter
24 is subject to a civil penalty of not less than five hundred
25 dollars and not more than two thousand five hundred dollars.
26 The department shall impose, assess, and collect the civil
27 penalty. Each day that a continuing violation occurs may be
28 considered a separate offense.
29 2. Notwithstanding subsection 1, a civil penalty shall not
30 be imposed, assessed, or collected against a licensee who is
31 participating in or has successfully completed the negligent
32 violation program pursuant to section 204.15.
33 3. 2. All civil penalties collected under this section
34 shall be deposited into the general fund of the state.
35 Sec. 11. Section 204.14A, Code 2024, is amended by adding
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1 the following new subsection:
2 NEW SUBSECTION. 1A. A rebuttable presumption exists that a
3 raw or dried flower form of a hemp product is a consumable hemp
4 product intended for introduction into the body of a human by
5 a method of inhalation.
6 Sec. 12. NEW SECTION. 204.14B Sale of consumable hemp
7 product —— failure to register —— civil penalty.
8 1. A person engaged in the retail sale of a consumable
9 hemp product in this state without being registered with the
10 department of health and human services as required in section
11 204.7 shall be subject to a civil penalty of not more than ten
12 thousand dollars. The department of health and human services
13 shall impose, assess, and collect the civil penalty. Each day
14 that a continuing violation occurs may be considered a separate
15 offense.
16 2. All civil penalties collected under this section shall be
17 deposited into the general fund of the state.
18 3. A person in violation of this section is not also subject
19 to a civil penalty as provided in section 204.12.
20 Sec. 13. NEW SECTION. 204.14C Sale of consumable hemp
21 product —— failure to register —— criminal penalty.
22 1. a. A person engaged in the retail sale of a consumable
23 hemp product who is not registered with the department of
24 health and human services as required in section 204.7 commits
25 a serious misdemeanor.
26 b. A person engaged in the retail sale of an item advertised
27 as a consumable hemp product that is not a consumable hemp
28 product commits a serious misdemeanor.
29 2. This section shall be presumed not to be in conflict with
30 or limit a prosecution for a violation of any other provision
31 of law, including but not limited to chapter 124 or 21 U.S.C.
32 ch. 13.
33 Sec. 14. NEW SECTION. 204.14D Persons under legal age ——
34 criminal offense.
35 1. A person shall not sell, give, or otherwise distribute
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1 a consumable hemp product to a person under twenty-one years
2 of age.
3 2. A person who violates subsection 1 is guilty of a simple
4 misdemeanor.
5 Sec. 15. NEW SECTION. 204.14E Persons under legal age ——
6 scheduled violation and community service.
7 1. A person under twenty-one years of age shall not consume,
8 possess, purchase, or attempt to purchase a consumable hemp
9 product.
10 2. A person who violates subsection 1 shall be subject to a
11 scheduled violation in the form of a civil penalty pursuant to
12 section 805.8C, subsection 3, paragraph “d”.
13 3. In addition to the imposition of a civil penalty as
14 provided in subsection 2, a person who violates subsection 1
15 shall be subject to a court appearance as provided in section
16 805.10. The court shall sentence the person to perform a
17 specified number of hours of unpaid community service as deemed
18 appropriate by the court subject to the following:
19 a. For a first violation, eight hours, unless waived by the
20 court.
21 b. For a second offense, twelve hours.
22 c. For a third or subsequent offense, sixteen hours.
23 4. A person who violates this section is not subject to a
24 civil penalty as provided in section 204.12.
25 5. A person does not violate subsection 1 by possessing
26 a consumable hemp product if the person is employed by a
27 registrant and the person is possessing the consumable hemp
28 product as part of their employment.
29 Sec. 16. NEW SECTION. 204.14F Persons under legal age ——
30 exception —— cooperation with department of public safety or
31 local law enforcement agency.
32 1. a. A person who would otherwise act to commit an offense
33 under section 204.14D is not guilty of that offense if the
34 person acts under the direction or consent of the department
35 of public safety or a local law enforcement agency as part of
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1 an enforcement investigation.
2 b. A person who would otherwise act to commit a violation
3 under section 204.14E is not subject to that offense if the
4 person acts under the direction or consent of the department
5 of public safety or a local law enforcement agency as part of
6 an enforcement investigation.
7 2. In enforcing this section, the department of public
8 safety or a local law enforcement agency shall take all
9 measures necessary to ensure that a consumable hemp product
10 is not introduced into the body of a person under the age of
11 twenty-one.
12 3. Notwithstanding chapter 22, any personal information
13 identifying the person committing an offense or violation as
14 described in this section shall be confidential.
15 Sec. 17. NEW SECTION. 204.15A Hemp products —— order of
16 confiscation and disposal.
17 1. The department of health and human services may order the
18 confiscation and disposal of a hemp product based on any of the
19 following:
20 a. It is falsely advertised, sold, or distributed as a
21 consumable hemp product.
22 b. It exceeds the maximum tetrahydrocannabinol concentration
23 allowed under section 124.204, subsection 7, or this chapter.
24 c. It is a consumable hemp product manufactured, sold,
25 or distributed by a person who is not registered with the
26 department of health and human services as is required in
27 section 204.7.
28 2. The department of health and human services shall act
29 in consultation with the department of public safety. The
30 department of health and human services may request assistance
31 from the department of public safety or a local law enforcement
32 agency as necessary to carry out the provisions of this
33 section. The department of health and human services, upon
34 request, shall deliver any sample of the item to the department
35 of public safety or a local law enforcement agency.
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1 3. A person required to be registered with the department of
2 health and human services as provided in section 204.7 shall
3 pay the department of health and human services all actual
4 and reasonable costs of the destruction of the item. If that
5 department assumes any amount of the costs, it may charge that
6 amount to the person.
7 Sec. 18. Section 805.8C, subsection 3, Code 2024, is amended
8 by adding the following new paragraph:
9 NEW PARAGRAPH. d. (1) For violations of section 204.14E,
10 the scheduled fine is as follows:
11 (a) If the violation is a first offense, the scheduled fine
12 is seventy dollars.
13 (b) If the violation is a second offense, the scheduled fine
14 is one hundred thirty-five dollars.
15 (c) If the violation is a third or subsequent offense, the
16 scheduled fine is three hundred twenty-five dollars.
17 (2) The fine shall be imposed as a civil penalty.
18 (3) The crime services surcharge under section 911.1 shall
19 not be added to the penalty, and the court costs pursuant to
20 section 805.9, subsection 6, shall not be imposed.
21 (4) Notwithstanding section 602.8106 or any other
22 provision to the contrary, any civil penalty paid under this
23 subsection shall be retained by the city or county enforcing
24 the violation.
25 Sec. 19. Section 805.10, subsection 1, Code 2024, is amended
26 by adding the following new paragraph:
27 NEW PARAGRAPH. e. When a violation charged involves the
28 consumption, possession, purchase, or attempt to purchase of
29 a consumable hemp product as provided in section 204.14E, for
30 which there is a community service sentence.
31 Sec. 20. REPEAL. Sections 124.401G, 204.15, and 453B.18,
32 Code 2024, are repealed.
33 DIVISION II
34 REGULATION OF ALCOHOLIC BEVERAGES
35 Sec. 21. Section 123.49, subsection 2, Code 2024, is amended
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1 by adding the following new paragraph:
2 NEW PARAGRAPH. l. Sell, give, or otherwise supply any
3 alcoholic beverage containing tetrahydrocannabinol as described
4 in chapter 124, including any isomers, derivatives, or analogs
5 of tetrahydrocannabinol, whether naturally occurring or
6 synthesized, to any person on the licensed premises.
7 Sec. 22. NEW SECTION. 123.49A Restriction on alcoholic
8 beverages containing tetrahydrocannabinol.
9 A holder of a license, permit, or certificate of compliance
10 issued by the department under this chapter shall not
11 manufacture, import, or sell at wholesale in this state an
12 alcoholic beverage containing tetrahydrocannabinol as described
13 in chapter 124, including any isomers, derivatives, or analogs
14 of tetrahydrocannabinol, whether naturally occurring or
15 synthesized.
16 EXPLANATION
17 The inclusion of this explanation does not constitute agreement with
18 the explanation’s substance by the members of the general assembly.
19 BACKGROUND. This bill amends Code chapter 204, the
20 “Iowa Hemp Act” (IHA) (Code section 204.1), authorizing
21 the production of a certain type of cannabis (sativa L.)
22 and the sale of products processed from hemp (Code section
23 204.7). Hemp is defined as composed of a species of cannabis
24 (sativa L.) having a maximum concentration of delta-9
25 tetrahydrocannabinol (THC) that does not exceed three-tenths
26 of 1 percent on a dry weight basis (Code section 204.2).
27 The IHA removed hemp from the list of schedule I controlled
28 substances and the excise tax imposed on the sale of controlled
29 substances (see Code chapters 124 and 453B). The applicable
30 criminal penalty for an offense under those Code chapters
31 ranges from imprisonment for not more than six months or a
32 fine of not more than $1,000 to 50 years imprisonment and a
33 fine of not more than $1 million (see Code sections 124.401
34 and 453B.12). In order for cannabis to be classified as hemp
35 and not a controlled substance, a person must comply with IHA
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1 requi