Bill Text: IA HF2581 | 2019-2020 | 88th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to the regulation of hemp, including by providing for testing methods and the regulation of hemp products, providing penalties, making penalties applicable, and including effective date provisions. (Formerly HSB 646.)

Spectrum: Committee Bill

Status: (Passed) 2020-06-17 - Signed by Governor. H.J. 791. [HF2581 Detail]

Download: Iowa-2019-HF2581-Amended.html
House File 2581 - Reprinted HOUSE FILE 2581 BY COMMITTEE ON PUBLIC SAFETY (SUCCESSOR TO HSB 646) (As Amended and Passed by the House March 10, 2020 ) A BILL FOR An Act relating to the regulation of hemp, including by 1 providing for testing methods and the regulation of hemp 2 products, providing penalties, making penalties applicable, 3 and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 2581 (5) 88 da/ns/md
H.F. 2581 Section 1. Section 124.506, Code 2020, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 4A. According to an order for the disposal 3 of a crop that does not qualify as hemp as provided in section 4 204.10. 5 Sec. 2. Section 204.2, Code 2020, is amended by adding the 6 following new subsections: 7 NEW SUBSECTION . 01. “Certificate of analysis” means proof 8 that a crop produced on a licensee’s crop site qualifies as 9 hemp as provided in section 204.8. 10 NEW SUBSECTION . 001. “Consumable hemp product” means a 11 hemp product that includes a substance that is metabolized 12 or is otherwise subject to a biotransformative process when 13 introduced into the human body. 14 a. A consumable hemp product may be introduced into the 15 human body by ingestion or absorption by any device including 16 but not limited to an electronic device. 17 b. A consumable hemp product may exist in a solid or liquid 18 state. 19 c. A hemp product is deemed to be a consumable hemp product 20 if it is any of the following: 21 (1) Designed by the processor, including the manufacturer, 22 to be introduced into the human body. 23 (2) Advertised as an item to be introduced into the human 24 body. 25 (3) Distributed, exported, or imported for sale or 26 distribution to be introduced into the human body. 27 d. “Consumable hemp product” includes but is not limited to 28 any of the following: 29 (1) A noncombustible form of hemp that may be digested, 30 such as food; internally absorbed, such as chew or snuff; or 31 absorbed through the skin, such as a topical application. 32 (2) Hemp processed or otherwise manufactured, marketed, 33 sold, or distributed as food, a food additive, a dietary 34 supplement, or a drug. 35 -1- HF 2581 (5) 88 da/ns/md 1/ 10
H.F. 2581 e. “Consumable hemp product” does not include a hemp product 1 if the intended use of the hemp product is introduction into 2 the human body by any method of inhalation, as prohibited under 3 section 204.14A. 4 NEW SUBSECTION . 4A. “Federal Food, Drug, and Cosmetic Act” 5 means the Act so entitled as codified in 21 U.S.C. §301 et 6 seq., including regulations adopted pursuant to that Act by the 7 United States food and drug administration under the Code of 8 Federal Regulations, Title 21. 9 NEW SUBSECTION . 13. “Temporary harvest and transportation 10 permit” means a document allowing the harvesting of a crop 11 produced on a licensee’s crop site and the temporary movement 12 of that crop subject to limitations provided in section 204.8. 13 Sec. 3. Section 204.2, subsection 6, Code 2020, is amended 14 to read as follows: 15 6. a. “Hemp” means the plant cannabis sativa L. and any 16 part of that plant, including the seeds thereof, and all 17 derivatives, extracts, cannabinoids, isomers, acids, salts, 18 and salts of isomers, whether growing or not, with a maximum 19 delta-9 tetrahydrocannabinol concentration of not more than 20 three-tenths of one percent on a dry weight basis as calculated 21 pursuant to an official test as provided in section 204.8 . 22 b. “Hemp” also means a plant of the genus cannabis 23 other than cannabis sativa L., with a maximum delta-9 24 tetrahydrocannabinol concentration of not more than 25 three-tenths of one percent on a dry weight basis as calculated 26 pursuant to an official test as provided in section 204.8 , but 27 only to the extent allowed by the department in accordance with 28 applicable federal law, including the federal hemp law. 29 Sec. 4. Section 204.3, subsection 4, Code 2020, is amended 30 to read as follows: 31 4. The department may provide for the receipt, filing, 32 processing, and return of documents described in this chapter 33 in an electronic format, including but not limited to the 34 transmission of documents by the internet. The department 35 -2- HF 2581 (5) 88 da/ns/md 2/ 10
H.F. 2581 shall provide for the authentication of official forms in an 1 electronic format that may include electronic signatures as 2 provided in chapter 554D . An official form in an electronic 3 format shall have the same validity and is discoverable and 4 admissible in evidence if given under penalty of perjury in the 5 same manner as an original printed form. The department shall 6 provide for the issuance of certificates of crop inspection 7 analysis in an electronic format as provided in section 204.8 . 8 Sec. 5. Section 204.7, subsection 4, Code 2020, is amended 9 to read as follows: 10 4. The department shall adopt rules regulating the 11 production of hemp, including but not limited to inspection 12 and testing requirements under section 204.8 or 204.9 , and the 13 issuance of a temporary harvest and transportation permit or 14 certificate of crop inspection analysis under section 204.8 . 15 The department shall adopt rules as necessary to administer the 16 negligent violation program. The department may adopt other 17 rules as necessary or desirable to administer and enforce the 18 provisions of this chapter relating to hemp or hemp products. 19 Sec. 6. Section 204.7, subsection 5, Code 2020, is amended 20 by striking the subsection and inserting in lieu thereof the 21 following: 22 5. a. A person is not subject to a criminal offense 23 involving hemp as otherwise prohibited in chapter 124 or 453B, 24 if all of the following apply: 25 (1) If the person is a licensee, the person carries the 26 person’s hemp license when possessing hemp. 27 (2) The person carries a certificate of analysis, or a 28 temporary harvest and transportation permit, if the person is 29 in possession of harvested hemp. If the person is transporting 30 harvested hemp into or through this state, the person must 31 carry a certificate of analysis or an equivalent document 32 issued to the person by the jurisdiction where the hemp was 33 produced. 34 (3) The person carries a certificate of analysis, if the 35 -3- HF 2581 (5) 88 da/ns/md 3/ 10
H.F. 2581 person is delivering hemp seed for planting. 1 (4) The person carries a bill of lading under all of the 2 following circumstances: 3 (a) The person is in possession of hemp in transit to 4 transfer ownership. 5 (b) The person is delivering hemp seed for planting and the 6 seed is not of the licensee’s own production. 7 (c) A person brings hemp produced in another state into or 8 through this state. 9 b. For purposes of paragraph “a” , a criminal offense 10 involving hemp includes but is not limited to production, use, 11 harvest, transportation, delivery, distribution, or sale. 12 Sec. 7. Section 204.7, subsection 6, Code 2020, is amended 13 by striking the subsection and inserting in lieu thereof the 14 following: 15 6. A person other than a licensee is not subject to a 16 criminal offense involving hemp as described in subsection 5 if 17 the person is authorized to be on the licensee’s crop site by 18 the licensee. 19 Sec. 8. Section 204.7, subsections 7 and 8, Code 2020, are 20 amended by striking the subsections. 21 Sec. 9. Section 204.7, subsection 9, paragraph a, Code 2020, 22 is amended to read as follows: 23 a. A Except as provided in subsection 10, and section 24 204.14A, a person may engage in the retail sale of a hemp 25 product if the hemp was produced in this state or another state 26 in compliance with the federal hemp law or other applicable 27 federal law. A person may engage in the retail sale of a hemp 28 product if the hemp was produced in another jurisdiction in 29 compliance with applicable federal law and the laws of the 30 other jurisdiction, if such law is substantially the same as 31 applicable federal law. 32 Sec. 10. Section 204.7, subsection 9, paragraph b, Code 33 2020, is amended by striking the paragraph. 34 Sec. 11. Section 204.7, Code 2020, is amended by adding the 35 -4- HF 2581 (5) 88 da/ns/md 4/ 10
H.F. 2581 following new subsection: 1 NEW SUBSECTION . 10. a. Except as provided in paragraph 2 “e” , a consumable hemp product shall not be manufactured, 3 sold, or consumed in this state unless all of the following 4 conditions are met: 5 (1) The consumable hemp product is manufactured in this 6 state in compliance with this chapter. 7 (2) The hemp contained in the consumable hemp product was 8 produced exclusively in this state in compliance with this 9 chapter. 10 (3) The consumable hemp product complies with packaging 11 and labeling requirements, which shall be established by the 12 department of inspections and appeals by rule. 13 b. A person manufacturing a consumable hemp product in this 14 state shall register with the department of inspections and 15 appeals on a form prescribed by the department of inspections 16 and appeals by rule. The department of inspections and appeals 17 may impose a fee, established by the department of inspections 18 and appeals by rule, on a registrant not to exceed the cost of 19 processing the registration. The department of inspections and 20 appeals shall adopt rules for the revocation of a registration 21 issued to a manufacturer who manufactures a consumable hemp 22 product not in compliance with this chapter. 23 c. A person selling a consumable hemp product in this state 24 shall register with the department of inspections and appeals 25 on a form prescribed by the department of inspections and 26 appeals by rule and shall keep on the premises of the person’s 27 business a copy of the certificate of analysis issued pursuant 28 to section 204.8 for the hemp contained in the consumable hemp 29 products sold by the person. The department of inspections 30 and appeals may impose a fee, established by the department of 31 inspections and appeals by rule, on a registrant not to exceed 32 the cost of processing the registration. The department of 33 inspections and appeals shall adopt rules for the revocation of 34 a registration issued to a person who sells a consumable hemp 35 -5- HF 2581 (5) 88 da/ns/md 5/ 10
H.F. 2581 product not in compliance with this section. 1 d. Except as otherwise provided in this subsection, 2 a political subdivision of the state shall not adopt any 3 ordinance, rule, or regulation regarding the manufacture, sale, 4 or consumption of a consumable hemp product. 5 e. A consumable hemp product manufactured in another 6 jurisdiction pursuant to a state or tribal plan approved by the 7 United States department of agriculture pursuant to the federal 8 hemp law may be imported for use by a consumer or sale by a 9 retailer to a consumer if the state has substantially similar 10 testing requirements as those provided in section 204.8. 11 f. A consumable hemp product manufactured, sold, or 12 consumed in compliance with this subsection is not a controlled 13 substance under chapter 124 or 453B regardless of whether the 14 consumable hemp product has been approved by the United States 15 food and drug administration. 16 Sec. 12. Section 204.8, subsection 1, paragraph d, Code 17 2020, is amended to read as follows: 18 d. A licensee shall not harvest any portion of a crop 19 produced at the licensee’s crop site unless the department has 20 obtained a sample of plants to conduct a test as provided in 21 this section and has issued the licensee a temporary harvest 22 and transportation permit or certificate of crop inspection 23 analysis . The department may adopt rules that it determines 24 necessary or desirable to administer and enforce the terms and 25 conditions of a permit. The department shall have unrestricted 26 access to a crop site subject to a permit. A licensee subject 27 to a permit shall receive permission from the department prior 28 to moving the hemp, shall not commingle the hemp, and shall not 29 transfer the hemp to another person. 30 e. The department shall issue a verified copy of the 31 temporary harvest and transportation permit or certificate of 32 analysis to any other person upon request of the licensee. The 33 permit or certificate shall be published by the department as 34 an official form. 35 -6- HF 2581 (5) 88 da/ns/md 6/ 10
H.F. 2581 f. To the extent allowed by the federal hemp law, the 1 certificate of analysis shall be proof that the harvested crop 2 described on the form qualifies as hemp pursuant to the results 3 of an official test. 4 g. A temporary harvest and transportation permit expires 5 when the department issues the licensee a certificate of 6 analysis. A permit or certificate of analysis terminates upon 7 the issuance of an order of disposal of the licensee’s crop 8 as provided in section 204.10 or upon the revocation of the 9 licensee’s hemp license as provided in section 204.11. 10 Sec. 13. Section 204.8, subsection 3, Code 2020, is amended 11 by striking the subsection and inserting in lieu thereof the 12 following: 13 3. The official test shall be a composite test of the 14 plants obtained by the department from a licensee’s crop 15 site during the annual inspection and shall be conducted by 16 a laboratory designated by the department. The sample must 17 have an acceptable delta-9 tetrahydrocannabinol concentration, 18 resulting from a post decarboxylation analysis, that does not 19 exceed three-tenths of one percent on a dry weight basis. 20 a. The laboratory shall report delta-9 tetrahydrocannabinol 21 concentration on a dry weight basis that accounts for a 22 measurement uncertainty associated with the result of a 23 measurement. The measurement uncertainty shall characterize 24 the dispersion of the values that could be reasonably 25 attributed to the particular quantity subject to measurement. 26 The acceptable delta-9 tetrahydrocannabinol concentration 27 occurs when the application of the measurement uncertainty to 28 the reported delta-9 tetrahydrocannabinol concentration on a 29 dry weight basis produces a distribution or range that includes 30 three-tenths of one percent or less. 31 b. The post decarboxylation value is the result 32 of an analysis determined after the process of 33 decarboxylation that determines the total potential 34 delta-9 tetrahydrocannabinol content derived from the sum of 35 -7- HF 2581 (5) 88 da/ns/md 7/ 10
H.F. 2581 the delta-9 tetrahydrocannabinol concentration and delta-9 1 tetrahydrocannabinolic acid content and reported on a dry 2 weight basis. The post decarboxylation value may be determined 3 by using a chromatographic technique using heat and gas 4 chromatography, through which the tetrahydrocannabinolic 5 acid content is converted from its acid form to its neutral 6 form. The post decarboxylation value may also be calculated 7 by using a high-performance liquid chromatograph technique, 8 which keeps the tetrahydrocannabinolic acid intact and requires 9 a conversion calculation of that tetrahydrocannabinolic acid 10 to determine the total potential delta-9 tetrahydrocannabinol 11 content in a given sample. 12 Sec. 14. Section 204.9, subsection 2, paragraph b, Code 13 2020, is amended to read as follows: 14 b. The department of public safety or a local law 15 enforcement agency may obtain a sample of plants that are part 16 of the crop and provide for a test of that sample as provided in 17 section 204.8 . The department of public safety or a local law 18 enforcement agency shall not impose, assess, or collect a fee 19 for conducting an inspection or test under this section . 20 Sec. 15. Section 204.10, subsection 1, Code 2020, is amended 21 to read as follows: 22 1. If a crop that is produced at a licensee’s crop site does 23 not qualify as hemp according to an official test conducted 24 pursuant to section 204.8 , but has a maximum concentration 25 not in excess of two percent delta-9 tetrahydrocannabinol on 26 a dry weight basis, the department, in consultation with the 27 department of public safety, shall order the disposal of the 28 crop by destruction at the site or if necessary require the 29 crop to be removed to another location for destruction. 30 Sec. 16. Section 204.14, subsections 2 and 3, Code 2020, are 31 amended to read as follows: 32 2. a. The Except as provided in paragraph “b” , the person 33 is required to hold a certificate of crop inspection under 34 section 204.8 analysis to possess, handle, use, manufacture, 35 -8- HF 2581 (5) 88 da/ns/md 8/ 10
H.F. 2581 market, transport, deliver, or distribute hemp that has been 1 harvested under this chapter . 2 b. The person is required to hold a temporary harvest and 3 transportation permit to possess, harvest, or move hemp. 4 3. The person knowingly or intentionally does any of the 5 following: 6 a. Falsifies the temporary harvest and transportation permit 7 or certificate of crop inspection analysis . 8 b. Acquires the temporary harvest and transportation permit 9 or certificate of crop inspection analysis that the person 10 knows has been falsified. 11 Sec. 17. NEW SECTION . 204.14A Criminal offense —— 12 inhalation. 13 1. A person shall not possess, use, manufacture, market, 14 transport, deliver, or distribute harvested hemp or a hemp 15 product if the intended use of the harvested hemp or hemp 16 product is introduction into the body of a human by any method 17 of inhalation, including any of the following: 18 a. Smoke produced from combustion. 19 b. A type of article that uses a heating element, power 20 source, electronic circuit, or other electronic, chemical, or 21 mechanical process. 22 c. A device, including but not limited to a cigarette, 23 cigar, cigarillo, or pipe, regardless of whether such device 24 produces smoke or vapor. 25 2. A person who violates subsection 1 is guilty of a serious 26 misdemeanor. 27 3. This section does not apply to the extent that federal 28 law, including the federal Food, Drug, and Cosmetic Act, 29 authorizes as its intended use the introduction of harvested 30 hemp or a hemp product into the body of a human by a method of 31 inhalation. 32 Sec. 18. Section 204.17, subsection 2, paragraph c, Code 33 2020, is amended to read as follows: 34 c. Local law relating to product development, product 35 -9- HF 2581 (5) 88 da/ns/md 9/ 10
H.F. 2581 manufacturing, consumer safety, or public health so long as the 1 local law is consistent with federal and state law , except as 2 provided in section 204.7, subsection 10 . 3 Sec. 19. CONTINGENT EFFECTIVE DATE. 4 1. Except as provided in subsection 2, this Act takes effect 5 on the date that chapter 204 is implemented as provided in 2019 6 Iowa Acts, chapter 130, section 18, subsection 1. 7 2. a. If the department of agriculture and land 8 stewardship, in cooperation with the department of public 9 safety, determines that the United States department of 10 agriculture must approve any amendment to an existing provision 11 or new provision enacted in this Act as part of a state plan 12 pursuant to section 204.3, the secretary of agriculture shall 13 publish a notice of that fact in the Iowa administrative 14 bulletin. The department of agriculture and land stewardship 15 shall forward a copy of the statement to the Code editor prior 16 to publication. 17 b. If a determination is made as provided in paragraph 18 “a”, the amendment or new provision enacted in this Act takes 19 effect on the publication date of the edition of the Iowa 20 administrative bulletin that includes a statement by the 21 secretary of agriculture of the department of agriculture and 22 land stewardship certifying that the United States department 23 of agriculture has approved the amendment or provision. The 24 department of agriculture and land stewardship shall forward a 25 copy of the statement to the Code editor prior to publication. 26 3. This section does not affect the implementation of 27 provisions amended or enacted in 2019 Iowa Acts, chapter 130. 28 -10- HF 2581 (5) 88 da/ns/md 10/ 10
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