Bill Text: IA HF470 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to the production, marketing, and distribution of industrial hemp and related plant materials, and providing for penalties.
Sponsorship: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2015-03-04 - Subcommittee, Fry, Baudler, and Olson. H.J. 466. [HF470 Detail]
Download: Iowa-2015-HF470-Introduced.html
House File 470 - Introduced HOUSE FILE BY FORBES, KAUFMANN, BEARINGER, H. MILLER, BENNETT, and RUNNING=MARQUARDT A BILL FOR 1 An Act relating to the production, marketing, and distribution 2 of industrial hemp and related plant materials, and 3 providing for penalties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2397YH (5) 86 da/nh PAG LIN 1 1 Section 1. LEGISLATIVE FINDINGS ==== PURPOSE. The general 1 2 assembly finds that a trend exists among states to consider the 1 3 economic importance of industrial hemp, which is a major crop 1 4 in other nations. Industrial hemp historically has contributed 1 5 to the economic welfare of this country, and is a renewable 1 6 natural resource manufactured for textiles, pulp, paper, oil, 1 7 building materials, and other products. The purpose of this 1 8 Act is to promote the economy of this state by providing for 1 9 research necessary to develop industrial hemp as a viable crop. 1 10 Sec. 2. Section 124.401, Code 2015, is amended by adding the 1 11 following new subsection: 1 12 NEW SUBSECTION. 6. Notwithstanding subsection 5, a person 1 13 may knowingly or intentionally recommend, possess, use, 1 14 dispense, deliver, transport, or administer industrial hemp, 1 15 if the recommendation, possession, use, dispensing, delivery, 1 16 transporting, or administering is in accordance with the 1 17 provisions of chapter 159B. For purposes of this subsection, 1 18 "industrial hemp" means the same as defined in section 159B.1. 1 19 Sec. 3. NEW SECTION. 124D.6A Exception == industrial hemp. 1 20 This chapter does not apply to the possession or use of 1 21 industrial hemp as provided in chapter 159B. 1 22 Sec. 4. NEW SECTION. 159B.1 Definitions. 1 23 As used in this chapter, unless the context otherwise 1 24 requires: 1 25 1. "Department" means the department of agriculture and land 1 26 stewardship. 1 27 2. "Industrial hemp" means cannabis sativa L. which 1 28 has a percentage of tetrahydrocannabinol of not more than 1 29 three=tenths of one percent, as provided by rules which shall 1 30 be adopted by the department. 1 31 3. "Regents institution" means the university of northern 1 32 Iowa, the university of Iowa, or Iowa state university of 1 33 science and technology. 1 34 Sec. 5. NEW SECTION. 159B.2 Administration. 1 35 The department, in cooperation with the department of 2 1 public safety, regents institutions, and community colleges 2 2 established under chapter 260C, shall administer this chapter. 2 3 The department of agriculture and land stewardship shall 2 4 cooperate with other law enforcement agencies. The department 2 5 shall also collaborate with agencies of the United States 2 6 government, including but not limited to the drug enforcement 2 7 administration of the United States department of justice, in 2 8 order to provide for the production, harvesting, marketing, 2 9 and distribution of industrial hemp according to the terms and 2 10 conditions required by federal law. The department may execute 2 11 a memorandum of understanding with a United States government 2 12 agency in order to administer this chapter. 2 13 Sec. 6. NEW SECTION. 159B.3 Licensing and regulation == 2 14 fees == production under regents or community college pilot 2 15 program. 2 16 1. a. To the extent permitted by federal law, the 2 17 department shall issue licenses to persons for the production, 2 18 harvesting, marketing, and distribution of industrial hemp, 2 19 notwithstanding any section of this chapter or chapter 159 to 2 20 the contrary. A person must possess a license pursuant to this 2 21 section to possess industrial hemp. The department shall limit 2 22 the number of licenses that it issues each year in order to 2 23 ensure that the department, in cooperation with the department 2 24 of public safety, may strictly enforce compliance with the 2 25 requirements of this chapter. A license shall expire not later 2 26 than one year following the date of issuance. 2 27 b. A person applying for a license shall file an application 2 28 on a form prescribed by the department of agriculture and land 2 29 stewardship according to procedures required by the department. 2 30 The department may charge an application fee which shall not 2 31 exceed five hundred dollars. An applicant and each employee 2 32 of the applicant must satisfy eligibility requirements of the 2 33 department, which shall include but not be limited to all of 2 34 the following: 2 35 (1) Be eighteen years of age or older. 3 1 (2) Never have been convicted of a felony, an aggravated 3 2 misdemeanor, or any other offense related to the possession of 3 3 a controlled substance. 3 4 (3) Not be addicted to the use of alcohol or a controlled 3 5 substance. 3 6 (4) Be of good moral character and not have been found 3 7 guilty of a crime involving moral turpitude. 3 8 c. The licensee shall maintain accurate records, as required 3 9 by the department, which shall contain information relating 3 10 to the licensee's operation, including but not limited to 3 11 the production site, the time and manner of harvest, and 3 12 persons involved in the production, harvesting, marketing, and 3 13 distribution of the industrial hemp. 3 14 2. Notwithstanding chapter 124, the licensee may produce, 3 15 harvest, market, and distribute industrial hemp. However, the 3 16 licensee must act in strict conformance with this chapter. 3 17 3. a. A licensee shall not produce, harvest, market, or 3 18 distribute industrial hemp until completing an agricultural 3 19 pilot program certified by a regents institution or community 3 20 college that administers the program. The program must develop 3 21 optimal agricultural practices for producing industrial hemp. 3 22 b. Under the program, a licensee must produce industrial 3 23 hemp on a demonstration plot located on land controlled by 3 24 the regents institution or community college for at least 3 25 three years. In addition, the licensee may produce, harvest, 3 26 market, or distribute industrial hemp on land not controlled 3 27 by a regents institution or community college subject to the 3 28 following: 3 29 (1) For the first year, the licensee shall not produce 3 30 industrial hemp on more than one hundred fifty acres of land 3 31 that is not a demonstration plot. 3 32 (2) For the second year, the licensee shall not produce 3 33 industrial hemp on more than five hundred acres of land that is 3 34 not a demonstration plot. 3 35 c. Any plant material derived from the production of 4 1 industrial hemp under the program, other than plant material 4 2 retained for breeding and propagation, must be destroyed or 4 3 marketed and distributed in commercial channels as required by 4 4 the department. The licensee may provide for the marketing 4 5 and distribution of the plant materials inside or outside the 4 6 state. A licensee who distributes plant materials outside 4 7 the state must complete and submit to the department an 4 8 annual report detailing the amount and type of plant material 4 9 distributed, and the state where the distribution was made. 4 10 However, the licensee shall not be required to disclose 4 11 information that identifies a person receiving the plant 4 12 material. 4 13 d. A licensee who does not comply with the requirements of 4 14 this subsection shall not complete the program. 4 15 Sec. 7. NEW SECTION. 159B.4 Use of seed or cultivar. 4 16 The department shall not prohibit the use of a seed or 4 17 cultivar in the production of industrial hemp. The department 4 18 shall adopt rules that provide for importing industrial hemp 4 19 seeds into the state for use by licensees. However, a licensee 4 20 shall not receive more than fifty pounds of industrial hemp 4 21 seed per acre of land owned or leased for the production of 4 22 industrial hemp unless the department grants the person a 4 23 waiver. 4 24 Sec. 8. NEW SECTION. 159B.5 Inspection. 4 25 1. The department or the department of public safety may 4 26 inspect a production, harvesting, or distribution site of a 4 27 licensee at any time, and may inspect records required to be 4 28 maintained as provided in section 159B.3. The department of 4 29 agriculture and land stewardship shall assess and the licensee 4 30 shall pay the actual costs of the inspection. If the owner 4 31 or occupant of any property used by the licensee for the 4 32 production, harvesting, marketing, or distribution refuses 4 33 admittance onto the property, or if prior to such refusal the 4 34 department of agriculture and land stewardship or department 4 35 of public safety demonstrates the necessity for a warrant, 5 1 the department of agriculture and land stewardship may make 5 2 application under oath or affirmation to the district court of 5 3 the county in which the property is located for the issuance of 5 4 a search warrant. If the court is satisfied from examination 5 5 of the applicant, of other witnesses, if any, and of the 5 6 allegations of the application or the existence of the grounds 5 7 of the application, or that probable cause exists to believe 5 8 such grounds exist, the court may issue a search warrant. 5 9 2. The department shall inspect plants produced by a 5 10 licensee a least once per month. The department shall test 5 11 plants produced on at least one out of very one hundred acres 5 12 used to produce industrial hemp to ensure compliance with this 5 13 chapter. The costs associated with the inspection, including 5 14 testing, shall be charged to the licensee. The amount received 5 15 by the department shall be considered repayment receipts as 5 16 defined in section 8.2, and deposited into the accounts of the 5 17 department. 5 18 Sec. 9. NEW SECTION. 159B.6 Enforcement action ==== penalty. 5 19 1. The department may suspend or revoke a license issued 5 20 under section 159B.3 if the licensee or an employee of the 5 21 licensee is determined to have committed any of the following: 5 22 a. Fraud in applying for or obtaining a license. 5 23 b. A violation of this chapter or rules adopted by the 5 24 department pursuant to this chapter, including failing to 5 25 comply with a requirement of this chapter. 5 26 c. An offense involving moral turpitude, a felony, an 5 27 aggravated misdemeanor, or any other offense related to the 5 28 possession of a controlled substance. 5 29 2. a. Except as provided in paragraph "b", an applicant for 5 30 a license or a licensee who knowingly violates a requirement 5 31 of this chapter or a rule adopted by the department pursuant 5 32 to this chapter is subject to a civil penalty of not more than 5 33 fifty thousand dollars. 5 34 b. A person who makes a false statement on the application 5 35 for a license regarding the conviction of a felony, aggravated 6 1 misdemeanor, or any other offense related to the possession of 6 2 a controlled substance is guilty of an aggravated misdemeanor. 6 3 Sec. 10. Section 317.1A, Code 2015, is amended by adding the 6 4 following new subsection: 6 5 NEW SUBSECTION. 3. "Industrial hemp" which is produced as 6 6 provided in chapter 159B is not a noxious weed. 6 7 EXPLANATION 6 8 The inclusion of this explanation does not constitute agreement with 6 9 the explanation's substance by the members of the general assembly. 6 10 This bill relates to the production of industrial 6 11 hemp which has not more than three=tenths of 1 percent 6 12 tetrahydrocannabinol. 6 13 The bill requires the department of agriculture and land 6 14 stewardship, in cooperation with the department of public 6 15 safety, regents institutions, and community colleges, to 6 16 administer the chapter. The department of agriculture 6 17 and land stewardship is responsible for licensing persons 6 18 involved in industrial hemp production. The bill requires the 6 19 department to collaborate with agencies of the United States 6 20 government, including but not limited to the drug enforcement 6 21 administration, in order to provide for the production, 6 22 harvesting, marketing, and distribution of industrial hemp 6 23 according to the terms and conditions required by federal law. 6 24 The bill provides that to the extent permitted by federal law, 6 25 the department shall issue licenses to persons, notwithstanding 6 26 any other provision of Code chapter 124 regulating controlled 6 27 substances. The bill provides that a licensee must complete 6 28 an agricultural pilot program as certified by a regents 6 29 institution or community college that administers the program. 6 30 Under the program, a licensee must produce industrial hemp 6 31 on a demonstration plot for three years. The bill requires 6 32 a licensee to maintain records, restricts the use of seed by 6 33 licensees, provides for inspections of land and seed, and 6 34 provides for the suspension or revocation of a license. 6 35 The bill provides that licensees who violate the provisions 7 1 of the bill are subject to a civil penalty of up to $50,000. 7 2 The bill provides that a person who makes a false statement 7 3 on the application for a license regarding a conviction of a 7 4 felony, aggravated misdemeanor, or any other offense related 7 5 to the possession of a controlled substance is guilty of 7 6 an aggravated misdemeanor. An aggravated misdemeanor is 7 7 punishable by confinement for no more than two years and a fine 7 8 of at least $625 but not more than $6,250. LSB 2397YH (5) 86 da/nh
