Bill Summary – FastDemocracy

House File 548 - Introduced
                                  HOUSE FILE 548
                                  BY COMMITTEE ON PUBLIC SAFETY
                                  (SUCCESSOR TO HSB 187)
                            A BILL FOR
An Act providing for the regulation of hemp, including by
  creating an affirmative defense in cases of criminal
  prosecution, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. Section 124.204, subsection 7, Code 2021, is
 amended to read as follows:
    7. Exclusions. Schedule I does not consist of the plant
 cannabis if it is any of the following:
    a. Hemp as defined in section 204.2 that is or was produced
 in this state, or was produced in another state, in accordance
 with the provisions of chapter 204 with a maximum delta-9
 tetrahydrocannabinol concentration that does not exceed
 three-tenths of one percent on a dry weight basis.
    b. A hemp product as provided in chapter 204 with a maximum
 delta-9 tetrahydrocannabinol concentration that does not exceed
 three-tenths of one percent on a dry weight basis defined in
 section 204.2.
    Sec. 2. Section 124.401, subsection 6, unnumbered paragraph
 1, Code 2021, is amended to read as follows:
    Notwithstanding any other provision in this section to
 the contrary, and subject to section 124.401G, a person may
 produce, possess, use, harvest, handle, manufacture, market,
 transport, deliver, or distribute any of the following:
    Sec. 3. Section 124.401G, Code 2021, is amended to read as
 follows:
    124.401G Iowa hemp Act —— negligent violation program
 compliance —— affirmative defenses.
    1. Notwithstanding any provision of this chapter to the
 contrary, a person shall not be guilty of an offense under
 this chapter, including under section 124.401 or 124.410, for
 if the person proves by a preponderance of the evidence an
 affirmative defense of compliance with chapter 204 as provided
 in an applicable subsection of this section.
    2. It is an affirmative defense to a prosecution
 for producing, possessing, using, harvesting, handling,
 manufacturing, marketing, transporting, delivering, or
 distributing the plant cannabis that the person complied with
 section 204.7, subsection 5 or 6.
    3. It is an affirmative defense to a prosecution
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 for producing, possessing, using, harvesting, handling,
 manufacturing, marketing, transporting, delivering, or
 distributing the plant cannabis pursuant to the results of a
 test conducted pursuant to section 204.8, if that all of the
 following apply:
    1. a. The person holds a valid hemp license issued is a
 licensee under the negligent violation program administered by
 the department of agriculture and land stewardship as provided
 in chapter 204 section 204.15.
    2. b. The plant is or was produced on the licensee’s crop
 site as provided in chapter 204.
    3. c. The offense arises out of a test of a sample of
 plants that are part of a crop produced on the licensee’s crop
 site and the test indicates that the sample does not qualify
 as hemp under section 204.8 and does not exceed a maximum
 concentration of two percent delta-9 tetrahydrocannabinol on a
 dry weight basis.
    4. d. The licensee is participating in or has successfully
 completed the negligent violation program that applies to the
 licensee’s crop site described in subsection 3 if such program
 is established by the department of agriculture and land
 stewardship pursuant to section 204.15 paragraph “c”.
    4. a. It is an affirmative defense to a prosecution for
 possessing, using, handling, manufacturing, selling, marketing,
 transporting, delivering, or distributing an item derived from
 or made by processing the plant cannabis that the product meets
 the definition of a hemp product as defined in section 204.2.
    b. It is an affirmative defense to a prosecution for
 manufacturing, selling, or consuming a consumable hemp product
 as defined in section 204.2 that the consumable hemp product
 was manufactured, sold, or consumed in compliance with section
 204.7, subsection 8.
    Sec. 4. Section 453B.5, Code 2021, is amended to read as
 follows:
    453B.5 Defense or immunity.
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    This Except as provided in section 453B.18, this chapter
 does not provide in any manner a defense or affirmative defense
 to or immunity for a dealer from criminal prosecution pursuant
 to Iowa law.
    Sec. 5. Section 453B.18, Code 2021, is amended by striking
 the section and inserting in lieu thereof the following:
    453B.18 Iowa hemp Act —— affirmative defense.
    1. Notwithstanding any provision of this chapter to the
 contrary, a person shall not be guilty of an offense under
 this chapter if the person proves by a preponderance of the
 evidence an affirmative defense of compliance with chapter 204
 as provided in an applicable subsection of this section.
    2. It is an affirmative defense to a prosecution for
 manufacturing, producing, acquiring, purchasing, possessing,
 distributing, or offering for sale the plant cannabis that the
 person complied with section 204.7, subsection 5 or 6.
    3. It is an affirmative defense to a prosecution for
 producing, possessing, using, harvesting, handling, or
 distributing the plant cannabis pursuant to the results of
 a test conducted pursuant to section 204.8 that all of the
 following apply:
    a. The person is a licensee under the negligent violation
 program administered by the department of agriculture and land
 stewardship as provided in section 204.15.
    b. The plant is or was produced on the licensee’s crop site
 as provided in chapter 204.
    c. The offense arises out of a test of a sample of plants
 that are part of a crop produced on the licensee’s crop site
 and the test indicates that the sample does not qualify as hemp
 under section 204.8 and does not exceed a maximum concentration
 of two percent delta-9 tetrahydrocannabinol on a dry weight
 basis.
    d. The licensee is participating in or has successfully
 completed the negligent violation program that applies to the
 licensee’s crop site described in paragraph “c”.
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    4. a. It is an affirmative defense to a prosecution for
 manufacturing, producing, acquiring, purchasing, possessing,
 distributing, or offering for sale an item derived from or made
 by processing the plant cannabis that the product meets the
 definition of a hemp product as defined in section 204.2.
    b. It is an affirmative defense to a prosecution for
 manufacturing, selling, or consuming a consumable hemp product
 as defined in section 204.2 that the consumable hemp product
 was manufactured, sold, or consumed in compliance with section
 204.7, subsection 8.
                           EXPLANATION
         The inclusion of this explanation does not constitute agreement with
          the explanation’s substance by the members of the general assembly.
    GENERAL. This bill relates to criminal offenses involving
 hemp, which is a type of cannabis (sativa L.) plant that
 meets the legal threshold of having a maximum delta-9
 tetrahydrocannabinol (THC) concentration of not more than
 three-tenths of one percent. Specifically, the bill provides
 an affirmative defense may be pled and proven by a person
 accused of committing the criminal offense, based on the
 defendant’s compliance with certain requirements associated
 with the legal production of hemp as provided in the Iowa
 hemp Act (IHA) codified in Code chapter 204. This includes
 having obtained a number of documents including a license to
 produce hemp (Code section 204.4), a certificate of analysis
 testing the hemp’s THC concentration, a temporary harvest and
 transportation permit, and a bill of lading when transporting
 hemp (Code section 204.7(5)). A person other than a licensee
 may also plead and prove an affirmative defense if the person
 is authorized to be on the licensee’s crop site by the licensee
 (Code section 204.7(6)). For certain prosecutions, the
 affirmative defense must include participation in the negligent
 violation program in which a qualified person required to be
 licensed by the department of agriculture and land stewardship
 (DALS) is not subject to criminal liability by complying with a
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 corrective plan approved by DALS (Code section 204.15). The
 licensee cannot participate in the program if the results of
 a test of the licensee’s crop exceeds 2 percent THC. The
 affirmative defense may also be pled and proven for a criminal
 offense involving an item derived from or made by processing
 the plant cannabis. In that case it must be proven that the
 item qualifies as a hemp product, meaning that it meets the
 minimum legal threshold (Code section 204.2(11)). If the hemp
 product is a consumable hemp product, an additional burden
 is placed on the defendant to plead and prove that the item
 was manufactured in this state, it derives from hemp, was
 produced in compliance with Code chapter 204, it complies with
 packaging and labeling requirements adopted by the department
 of inspections and appeals, and the manufacturer is registered
 with the department of inspections and appeals (Code section
 204.7(8)). The affirmative defense applies to prosecutions
 brought under Code chapter 124 regulating controlled substances
 and Code chapter 453B imposing an excise tax on the unlawful
 possession and dealing of certain substances.
    BACKGROUND —— IOWA HEMP ACT. DALS administers and
 enforces the IHA in cooperation with the department of public
 safety (Code section 204.3). Regulation of hemp products is
 administered and enforced by the department of inspections and
 appeals (Code section 204.7). The original law included a
 number of coordinating provisions, including amendments that
 removed hemp from the list of schedule I controlled substances
 (Code chapter 124) and eliminated the associated excise tax
 imposed on controlled substances (Code chapter 453B). The
 law was amended last year, which in part changed compliance
 requirements (2020 Iowa Acts, chapters 1065 and 1121).
    CRIMINAL PENALTIES. A number of criminal penalties apply to
 a criminal conviction involving cannabis, including possession,
 manufacture, and distribution. These include a serious and
 aggravated misdemeanor (Code sections 124.401 and 124.410) and
 class “D”, class “C”, and class “B” felonies (Code sections
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 124.401, 124.410, and 453B.12). A serious misdemeanor is
 punishable by confinement for no more than one year and a fine
 of at least $430 but not more than $2,560. An aggravated
 misdemeanor is punishable by confinement for no more than two
 years and a fine of at least $855 but not more than $8,540. A
 class “D” felony is punishable by confinement for no more than
 five years and a fine of at least $1,025 but not more than
 $10,245. A class “C” felony is punishable by confinement for
 no more than 10 years and a fine of at least $1,370 but not
 more than $13,660. And a class “B” felony is punishable by
 confinement for no more than 25 years.
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Statutes affected: 
Introduced: 124.204, 124.401G, 124.401, 453B.18