Bill Text: IA SF2398 | 2017-2018 | 87th General Assembly | Amended
Bill Title: A bill for an act relating to industrial hemp, including the regulation of its production as part of a research program, marketing for purposes of manufacturing industrial hemp products, providing for fees, making appropriations, providing for enforcement and the confiscation and destruction of certain property, and including penalties. (Formerly SF 329.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2018-04-11 - Subcommittee recommends passage. [SF2398 Detail]
Download: Iowa-2017-SF2398-Amended.html
Senate File 2398 - Reprinted SENATE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 329) (As Amended and Passed by the Senate April 4, 2018) A BILL FOR 1 An Act relating to industrial hemp, including the regulation 2 of its production as part of a research program, marketing 3 for purposes of manufacturing industrial hemp products, 4 providing for fees, making appropriations, providing for 5 enforcement and the confiscation and destruction of certain 6 property, and including penalties. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: SF 2398 (4) 87 da/rj/jh PAG LIN 1 1 Section 1. Section 124.401, subsection 5, Code 2018, is 1 2 amended by adding the following new unnumbered paragraph: 1 3 NEW UNNUMBERED PARAGRAPH Notwithstanding this subsection 1 4 or any other provision of this chapter to the contrary, a 1 5 person may produce, possess, deliver, transport, process, 1 6 and use industrial hemp in accordance with the provisions of 1 7 chapter 188. 1 8 Sec. 2. NEW SECTION. 188.1 Short title. 1 9 This chapter shall be known and may be cited as the "Iowa 1 10 Industrial Hemp Act". 1 11 Sec. 3. NEW SECTION. 188.2 Definitions. 1 12 As used in this chapter, unless the context otherwise 1 13 requires: 1 14 1. "Association" means the Iowa crop improvement association 1 15 recognized pursuant to section 177.1. 1 16 2. "Certified industrial hemp seed" means industrial hemp 1 17 seed that has been certified pursuant to section 188.18. 1 18 3. "Council" means the industrial hemp council established 1 19 in section 188.11. 1 20 4. "Department" means the department of agriculture and land 1 21 stewardship. 1 22 5. "Industrial hemp" means any part of the Cannabis 1 23 sativa plant, whether growing or not, with a concentration of 1 24 delta=9 tetrahydrocannabinol that does not exceed the maximum 1 25 concentration for the plant as determined pursuant to section 1 26 188.8. 1 27 6. "Industrial hemp plant" means all nonseed parts of 1 28 industrial hemp, whether growing or not. 1 29 7. a. "Industrial hemp product" means any item manufactured 1 30 from industrial hemp, including but not limited to cloth, 1 31 cordage, fiber, food, fuel, paint, paper, particleboard, 1 32 plastic, industrial hemp seed, seed meal, or seed oil. 1 33 b. "Industrial hemp product" does not include industrial 1 34 hemp seed that is capable of germination. 1 35 8. "Industrial hemp seed" means seed produced by industrial 2 1 hemp regardless of whether the seed is capable of germination. 2 2 9. "Iowa state university" means Iowa state university of 2 3 science and technology. 2 4 10. "Law enforcement agency" means the department of public 2 5 safety, an office of county sheriff, or a city's police force. 2 6 11. "Licensee" means a person who obtains a license from 2 7 the department under section 188.15 to participate in the 2 8 industrial hemp commodity program established pursuant to 2 9 section 188.13 or the industrial hemp production program 2 10 established pursuant to section 188.14. 2 11 12. "Production" means any part of planting, cultivating, 2 12 or harvesting industrial hemp. 2 13 13. "Regents institution" means the university of Iowa, Iowa 2 14 state university of science and technology, or the university 2 15 of northern Iowa governed by the state board of regents under 2 16 section 262.7. 2 17 14. "Registrant" means a regents institution that registers 2 18 with the department to administer the industrial hemp 2 19 production program established in section 188.14. 2 20 Sec. 4. NEW SECTION. 188.3 Report. 2 21 1. The department shall prepare and submit an annual report 2 22 to the governor and general assembly not later than January 10. 2 23 The report shall evaluate the success of the industrial hemp 2 24 commodity program established pursuant to section 188.13 and 2 25 the industrial hemp production program established pursuant 2 26 to section 188.14. The department, in cooperation with any 2 27 registrant, may establish performance benchmarks and make 2 28 recommendations for consideration by the general assembly in 2 29 order to meet the purposes of the programs in compliance with 2 30 the requirements of 7 U.S.C. {5940. 2 31 2. a. In preparing the report, the department may require 2 32 that a select number of licensees complete and submit a brief 2 33 survey regarding the licensee's business operations including 2 34 the production, handling, transportation, or processing of 2 35 industrial hemp. 3 1 b. A registrant shall assist the department in preparing 3 2 and compiling the results of the survey. Until a regents 3 3 institution is registered under section 188.14, Iowa state 3 4 university shall act in lieu of the registrant. 3 5 3. The report may include the compilation of data, but 3 6 shall not disclose any information that is confidential under 3 7 section 188.9, including the identity of a licensee or the 3 8 location of any facility used by the licensee in the production 3 9 of industrial hemp. This subsection shall not preclude the 3 10 disclosure of information to the extent that the licensee 3 11 voluntarily agrees in writing that such information is to be 3 12 considered a public record under section 188.9. 3 13 Sec. 5. NEW SECTION. 188.4 Rules and forms. 3 14 The department shall adopt all rules and prepare and publish 3 15 all forms required to administer this chapter and comply with 3 16 7 U.S.C. {5940. The department may require the mandatory use 3 17 of a form and refuse to accept a document that is not prepared 3 18 using a mandatory form. 3 19 Sec. 6. NEW SECTION. 188.5 Compliance with federal law. 3 20 1. The purpose of this chapter is to fully implement the 3 21 provisions of 7 U.S.C. {5940. 3 22 2. The programs established under this chapter and any 3 23 projects administered under those programs are for the 3 24 exclusive purpose of growing, cultivating, and marketing 3 25 industrial hemp in a manner that complies with the programs and 3 26 projects described in 7 U.S.C. {5940. 3 27 3. a. The department shall seek to obtain any necessary 3 28 approval by the drug enforcement administration of the United 3 29 States department of justice in order to obtain industrial hemp 3 30 seeds for certification pursuant to section 188.18 as part of 3 31 the industrial hemp commodity program as provided in section 3 32 188.13 or the industrial hemp production program as provided 3 33 in section 188.14. 3 34 b. A registrant may seek to obtain any necessary approval 3 35 by the drug enforcement administration of the United States 4 1 department of justice in order to obtain industrial hemp seeds 4 2 for certification pursuant to section 188.18 as part of the 4 3 industrial hemp production program as provided in section 4 4 188.14. 4 5 4. The department or a registrant may seek a waiver of a 4 6 federal regulation promulgated by the United States department 4 7 of agriculture or the drug enforcement administration of the 4 8 United States department of justice if necessary to fully 4 9 implement the provisions of this chapter. 4 10 Sec. 7. NEW SECTION. 188.6 General prohibitions. 4 11 1. A person shall not produce, handle, transport, market, 4 12 or process industrial hemp in this state unless the industrial 4 13 hemp has been produced pursuant to the industrial hemp 4 14 commodity program established pursuant to section 188.13 or 4 15 the industrial hemp production program established pursuant to 4 16 section 188.14. 4 17 2. Nothing in this chapter prevents a person from producing, 4 18 handling, transporting, marketing, or processing an industrial 4 19 hemp product. 4 20 Sec. 8. NEW SECTION. 188.7 Cannabidiol production 4 21 prohibited ==== contingent repeal. 4 22 1. Industrial hemp shall not be used to produce medical 4 23 cannabidiol as defined in section 124E.2. 4 24 2. Nothing in this chapter shall be construed to authorize 4 25 a person to recommend, possess, use, dispense, deliver, 4 26 transport, or administer medical cannabidiol. 4 27 Sec. 9. NEW SECTION. 188.8 Maximum concentration of 4 28 tetrahydrocannabinol. 4 29 1. A test of a Cannabis sativa plant under this chapter 4 30 shall be conducted by the department or a qualified public or 4 31 private laboratory approved by the department. The department 4 32 shall establish protocols for sampling and testing Cannabis 4 33 sativa plants produced pursuant to the provisions of this 4 34 chapter, including for obtaining test samples for delivery to 4 35 the laboratory, and the receipt of test results delivered to 5 1 the department, a registrant, or a licensee. The concentration 5 2 of delta=9 tetrahydrocannabinol present in a Cannabis sativa 5 3 plant shall be measured on a dry weight basis in the same 5 4 manner as provided under 7 U.S.C. {5940 unless subsequent 5 5 controlling federal law provides otherwise. 5 6 2. The maximum concentration of delta=9 5 7 tetrahydrocannabinol present in a Cannabis sativa plant in 5 8 order for the plant to qualify as industrial hemp shall be 5 9 established by the department. The department's established 5 10 maximum concentration shall be the same as the maximum 5 11 concentration allowed to be present to qualify as industrial 5 12 hemp under 7 U.S.C. {5940 or any subsequent controlling federal 5 13 law. 5 14 3. In testing Cannabis sativa plants which comprise a crop, 5 15 a composite test result that exceeds the maximum concentration 5 16 of delta=9 tetrahydrocannabinol as provided in subsections 1 5 17 and 2 is deemed conclusive that the crop exceeds the maximum 5 18 concentration for industrial hemp. 5 19 Sec. 10. NEW SECTION. 188.9 Confidential information ==== 5 20 exceptions. 5 21 1. a. All of the following information is confidential: 5 22 (1) A completed license application, or information which 5 23 is part of such application, acquired by the department, 5 24 a registrant, or a law enforcement agency under section 5 25 188.15. For purposes of this subparagraph, a completed license 5 26 application does not include the results of a national criminal 5 27 history record check acquired by the department from the 5 28 department of public safety pursuant to section 188.15. 5 29 (2) A license issued by the department to the applicant 5 30 under section 188.15. 5 31 (3) Any information acquired by the department or a 5 32 registrant from a licensee participating in or seeking to 5 33 participate in the industrial hemp commodity program under 5 34 section 188.13 or the industrial hemp production program under 5 35 section 188.14. 6 1 (4) A certification of industrial hemp seed issued by the 6 2 association to the department, a registrant, or a licensee 6 3 under section 188.18. 6 4 (5) A survey acquired by the department or by Iowa state 6 5 university from the department under section 188.3. 6 6 (6) Information relating to the inspection of a licensee 6 7 participating in the industrial hemp commodity program under 6 8 section 188.13 or the industrial hemp production program under 6 9 section 188.14. 6 10 (7) The results of any test sample of an industrial hemp 6 11 crop regardless of whether the test was conducted by the 6 12 department, a registrant, or a licensee participating in the 6 13 industrial hemp commodity program under section 188.13 or the 6 14 industrial hemp production program under section 188.14. 6 15 (8) Any other information that identifies the business 6 16 location, operations, management, practices, or finances of a 6 17 licensee participating in the industrial hemp commodity program 6 18 under section 188.13 or the industrial hemp production program 6 19 under section 188.14. 6 20 b. The confidential information may be in a printed or 6 21 electronic format as part of a document, other tangible medium, 6 22 or accessible by a computer or similar device. 6 23 2. The confidential information described in subsection 6 24 1 is not a public record and is not otherwise subject to 6 25 disclosure under chapter 22. Such information that is 6 26 subsequently disclosed to a person under this chapter retains 6 27 its confidentiality in the manner provided in this section. 6 28 3. The department shall establish requirements and 6 29 procedures for the disclosure of confidential information 6 30 described in subsection 1, including to any of the following: 6 31 a. To a person authorized to receive the confidential 6 32 information under this chapter. 6 33 b. A federal agency or another state's agency as part of 6 34 the process to evaluate the approval or renewal of a license 6 35 under section 188.15 or the licensee's participation in the 7 1 industrial hemp commodity program under section 188.13 or the 7 2 industrial hemp production program under section 188.14. 7 3 c. A law enforcement agency or a federal agency which 7 4 requests the confidential information in order to respond 7 5 to an emergency situation, a criminal complaint, or an 7 6 ongoing criminal investigation, subject to any applicable 7 7 confidentiality requirements for public records under section 7 8 22.7. 7 9 d. The department in conducting a disciplinary action 7 10 against a licensee under section 188.26. 7 11 e. A party in any judicial or administrative proceeding 7 12 involving discovery, so long as the disclosure is made upon 7 13 subpoena, or other means of legal compulsion for release. 7 14 f. Any person making a request to the custodian of the 7 15 confidential information in the same manner as provided in 7 16 section 22.2 to the extent that the licensee voluntarily agrees 7 17 in writing that such information is to be considered a public 7 18 record subject to chapter 22. 7 19 Sec. 11. NEW SECTION. 188.10 Liability. 7 20 The department or a registrant is not liable for the actions 7 21 of a licensee regardless of the department's or registrant's 7 22 legal relationship with the licensee, including but not limited 7 23 to any relationship as an agent, principal, fiduciary, or party 7 24 to a contract. 7 25 Sec. 12. NEW SECTION. 188.11 Industrial hemp council ==== 7 26 establishment, membership, procedures. 7 27 1. An industrial hemp council is established under the 7 28 purview of the department. 7 29 2. a. The council shall consist of the following voting 7 30 members: 7 31 (1) An individual who has experience in the regulation 7 32 of industrial hemp production, appointed by the secretary of 7 33 agriculture. 7 34 (2) An individual who is a member of an agricultural 7 35 cooperative association as defined in section 502.102, 8 1 appointed by the secretary of agriculture. 8 2 (3) Two employees of the department appointed by the 8 3 secretary of agriculture. The employees shall be knowledgeable 8 4 regarding the production of agricultural crops. One employee 8 5 may be the state entomologist. One employee may be an employee 8 6 knowledgeable about procedures and practices relating to the 8 7 import of agricultural seeds or inputs. 8 8 (4) One employee of the department of natural resources 8 9 appointed by the director of the department of natural 8 10 resources. The employee must be knowledgeable regarding 8 11 agricultural practices and environmental regulations. 8 12 (5) One employee of the department of public safety 8 13 appointed by the director of the department. The person must 8 14 be knowledgeable regarding federal and state drug enforcement 8 15 policies. 8 16 (6) One employee of a registrant appointed by the president 8 17 of the registrant's regents institution. The employee must 8 18 be knowledgeable regarding plant sciences. Until such a 8 19 registrant is appointed, one employee of Iowa state university 8 20 appointed by the president of the university shall serve as a 8 21 member. The employee must be knowledgeable regarding plant 8 22 sciences. 8 23 b. The council shall also include four members of the 8 24 general assembly appointed to serve in an ex officio, nonvoting 8 25 capacity. The legislative members shall be selected, one 8 26 member each, by the majority leader of the senate, the 8 27 minority leader of the senate, the speaker of the house of 8 28 representatives, and the minority leader of the house of 8 29 representatives. 8 30 3. A voting member who has not been appointed shall be 8 31 confirmed by the senate pursuant to section 2.32. 8 32 4. A public member is eligible to receive compensation as 8 33 provided in section 7E.6 and shall be reimbursed for actual and 8 34 necessary expenses incurred in the discharge of the member's 8 35 duties. The moneys used to pay expenses and compensation 9 1 shall be paid from moneys in the industrial hemp commodity 9 2 fund established in section 188.23. A legislative member is 9 3 eligible to receive a per diem and expenses as provided in 9 4 section 2.10. 9 5 5. a. A public member shall serve a three=year staggered 9 6 term commencing and ending as provided in section 69.19. A 9 7 state employee member shall serve at the pleasure of the 9 8 appointing authority. 9 9 b. The voting members shall elect a chairperson and vice 9 10 chairperson annually from the voting membership. A majority of 9 11 the voting members constitutes a quorum. If the chairperson 9 12 and vice chairperson are unable to preside over the council, a 9 13 majority of the voting members present may elect a temporary 9 14 chairperson. 9 15 6. A vacancy on the council shall be filled in the same 9 16 manner as the original appointment. A member appointed to fill 9 17 a vacancy created other than by expiration of a term shall be 9 18 appointed for the remainder of the unexpired term. 9 19 7. The council shall be housed within the department and the 9 20 department, in cooperation with Iowa state university, shall 9 21 furnish the council with a meeting place and all articles, 9 22 supplies, and services necessary to enable the council to 9 23 perform its duties. Iowa state university or the office of 9 24 attorney general may provide any technical or legal assistance 9 25 requested by the council or department. 9 26 8. The appointments of the public members are subject to the 9 27 requirements of sections 69.16, 69.16A, and 69.19. A public 9 28 member is eligible for reappointment. The secretary may remove 9 29 a public member if the removal is based on the public member's 9 30 misfeasance, malfeasance, or willful neglect of duty or other 9 31 just cause, after notice and hearing, unless the notice and 9 32 hearing is expressly waived by the public member in writing. 9 33 Sec. 13. NEW SECTION. 188.12 Industrial hemp council ==== 9 34 powers and duties. 9 35 1. The council shall advise the department and each 10 1 registrant regarding all of the following: 10 2 a. All aspects relating to the administration of the 10 3 industrial hemp commodity program established pursuant to 10 4 section 188.13 and the industrial hemp production program 10 5 established pursuant to section 188.14. 10 6 b. The establishment of fees assessed, imposed, and 10 7 collected pursuant to sections 188.21 and 188.22. 10 8 c. The management of the industrial hemp commodity fund 10 9 established in section 188.23. 10 10 2. The council shall advise the department regarding all of 10 11 the following: 10 12 a. Disciplinary action taken against a licensee pursuant to 10 13 section 188.26. 10 14 b. The establishment of a range of civil penalties to be 10 15 imposed, assessed, and collected pursuant to section 188.27. 10 16 3. The council shall advise a registrant regarding the 10 17 terms and conditions of contracts entered into with a selected 10 18 licensee under section 188.17. 10 19 4. The council shall not control policy decisions or direct 10 20 the administration or enforcement of this chapter. 10 21 Sec. 14. NEW SECTION. 188.13 Industrial hemp commodity 10 22 program ==== department and licensees. 10 23 1. The department shall establish and administer an 10 24 industrial hemp commodity program. The purpose of the 10 25 program is to determine the economic feasibility of producing 10 26 industrial hemp as a profitable commodity in this state and of 10 27 the effective handling, transporting, marketing, and processing 10 28 of the commodity in this state. 10 29 2. A person must be licensed pursuant to section 188.15 to 10 30 participate in the program. Under the program, a licensee may 10 31 produce all of the following: 10 32 a. Industrial hemp plants which shall to every extent 10 33 feasible be processed into industrial hemp products for 10 34 marketing in commercial channels. 10 35 b. Industrial hemp seeds which shall to every extent 11 1 feasible be processed into industrial hemp products or used to 11 2 produce a subsequent industrial hemp crop. 11 3 3. The department may establish standards for the labeling 11 4 or marketing of industrial hemp produced under this section. 11 5 The standards shall to every extent feasible be in accordance 11 6 with applicable standards in chapter 210. 11 7 4. A licensee must immediately report the loss of any 11 8 industrial hemp to the department. 11 9 5. A licensee shall retain industrial hemp or transfer 11 10 industrial hemp to another person only as authorized by the 11 11 department. The licensee may retain industrial hemp seeds 11 12 capable of germination only as authorized by the department. 11 13 The licensee shall only transfer industrial hemp seed that is 11 14 capable of germination to the department, a registrant, or 11 15 another licensee as approved by the department or any other 11 16 person authorized by law to receive the industrial hemp seed. 11 17 6. A licensee must regularly test the industrial hemp to 11 18 ensure that the industrial hemp does not exceed the maximum 11 19 concentration of delta=9 tetrahydrocannabinol as provided in 11 20 section 188.8. 11 21 7. The department shall conduct an inspection of the 11 22 licensee's facilities and business records as provided in 11 23 section 188.16. 11 24 Sec. 15. NEW SECTION. 188.14 Industrial hemp production 11 25 program ==== registrants and licensees. 11 26 1. A regents institution, or two or more regents 11 27 institutions acting jointly, may establish and administer 11 28 an industrial hemp production program. The purpose of the 11 29 program shall be to determine the feasibility of increasing 11 30 the production acreage and yield of industrial hemp as a 11 31 profitable crop and reducing the concentration of delta=9 11 32 tetrahydrocannabinol in the industrial hemp. 11 33 2. In order to administer a program, the regents institution 11 34 or regents institutions acting jointly must register with 11 35 the department according to requirements established by the 12 1 department. The registration shall include a research plan 12 2 that summarizes the quantifiable short=term and long=term goals 12 3 of the research. A copy of the registration shall also be 12 4 filed with the council, the governor, and the general assembly. 12 5 3. The department has all the same powers to regulate 12 6 a licensee under this program as the department does in 12 7 regulating a licensee under the industrial hemp commodity 12 8 program pursuant to section 188.13. A licensee participating 12 9 in this program shall comply with the same requirements as a 12 10 licensee participating in the industrial hemp commodity program 12 11 under section 188.13, unless the department provides otherwise. 12 12 4. Only a registrant, including a licensee acting under 12 13 the supervision of the registrant, may participate in the 12 14 program. Under the program, a registrant may produce any of 12 15 the following: 12 16 a. Industrial hemp plants which may be processed into 12 17 industrial hemp products. 12 18 b. Industrial hemp seeds which may be processed into 12 19 industrial hemp products. A registrant may retain industrial 12 20 hemp seeds capable of germination to produce the next crop of 12 21 industrial hemp or transfer the seeds to another person for 12 22 purposes of scientific research. The registrant shall retain 12 23 or transfer the seeds after consulting with the department. 12 24 5. A registrant must regularly test the industrial hemp to 12 25 ensure that the industrial hemp does not exceed the maximum 12 26 concentration of delta=9 tetrahydrocannabinol as provided in 12 27 section 188.8. 12 28 6. A registrant must immediately report the loss of any 12 29 industrial hemp produced by the registrant to the department. 12 30 7. A registrant must maintain records regarding production 12 31 and transfer of the industrial hemp by the registrant. The 12 32 records shall to every extent practicable contain the same type 12 33 of information contained in records maintained by licensees 12 34 under section 188.13. 12 35 8. A registrant's inspection of a licensee's facilities 13 1 may be conducted as provided in the industrial hemp production 13 2 contract entered into by the registrant and licensee under 13 3 section 188.17. The registrant may request that the department 13 4 assign an official or that a law enforcement agency assign an 13 5 officer to accompany the registrant during the inspection. 13 6 Sec. 16. NEW SECTION. 188.15 Industrial hemp commodity 13 7 license ==== requirements. 13 8 1. The department shall establish and administer a process 13 9 to receive, evaluate, and approve applications for industrial 13 10 hemp commodity licenses by persons seeking to participate in 13 11 the industrial hemp commodity program under section 188.13 or 13 12 the industrial hemp production program under section 188.14. 13 13 A license expires one year from the date of issuance. An 13 14 expired license may be renewed for three additional years. The 13 15 department may require that a licensee apply for an amended 13 16 or new license if information contained in the existing 13 17 application is no longer accurate or is incomplete. 13 18 2. An applicant shall not be issued a license unless the 13 19 applicant agrees to comply with all terms and conditions 13 20 relating to the department's regulation of the licensee. 13 21 3. The department shall disapprove the application of 13 22 a person for good cause, which shall include any of the 13 23 following: 13 24 a. The conviction of a felony within the prior ten years or 13 25 any drug offense within the same period, regardless of whether 13 26 the conviction is in this state or another state. 13 27 b. The revocation of a license under section 188.26, or 13 28 the revocation of a license, permit, registration, or other 13 29 authorization to produce industrial hemp in any other state. 13 30 4. The department shall not issue a license until the 13 31 applicant has furnished a surety bond to the department in 13 32 an amount of not more than ten thousand dollars. The surety 13 33 bond shall insure payment of any amount that the licensee is 13 34 legally obligated to pay for any costs associated with the 13 35 confiscation and destruction of the licensee's industrial hemp 14 1 crop under section 188.25. The surety bond shall be maintained 14 2 at all times during the period of licensure. The department 14 3 shall be notified ten days prior to any reduction in the amount 14 4 of the surety bond made at the request of the applicant or 14 5 cancellation of the surety bond by the surety. The total and 14 6 aggregate liability of the surety shall be limited to the face 14 7 amount of the surety bond. 14 8 5. The department may do all of the following: 14 9 a. Limit the number of applications that it accepts or 14 10 limit the period or periods when applications will be received, 14 11 evaluated, or accepted each year. 14 12 b. Establish criteria required to participate in a program 14 13 which may be based on the qualifications or good character 14 14 of the applicant, the applicant's proposed investment in 14 15 industrial hemp production, the applicant's experience in 14 16 commercial crop production, and the type and size of the 14 17 applicant's existing agricultural operation. The department 14 18 may prepare and publish guidelines to assist persons in 14 19 determining eligibility requirements. 14 20 c. Require the issuance of different types of licenses or 14 21 require an applicant to obtain more than one license based 14 22 on criteria established by the department, including but not 14 23 limited to whether the proposed industrial hemp production is 14 24 to occur on noncontiguous parcels of land, whether industrial 14 25 hemp plants or industrial hemp seeds are proposed to be 14 26 produced, or whether the applicant is proposing to participate 14 27 in the industrial hemp commodity program under section 188.13 14 28 or the industrial hemp production program under section 188.14. 14 29 d. Require that all or some licenses expire on the same 14 30 date. 14 31 e. Provide a different application and requirements for 14 32 the submission, evaluation, and approval or disapproval of an 14 33 application for a renewed license. However, the department 14 34 shall require a check of the applicant's national criminal 14 35 history record to be conducted under this section each time a 15 1 license is issued or renewed. 15 2 6. The department shall prepare and publish license 15 3 application forms. A completed application form submitted to 15 4 the department shall contain all of the following: 15 5 a. The applicant's full name and residence address. 15 6 b. A legal description, global positioning system location, 15 7 and map of the site where the applicant proposes to produce the 15 8 industrial hemp. 15 9 c. Information required by the department to conduct a check 15 10 of the applicant's criminal history record. The department 15 11 shall require an applicant to submit pictures, fingerprints, 15 12 and descriptions of physical characteristics on forms required 15 13 by the department of public safety. The department of 15 14 agriculture and land stewardship shall submit the applicant's 15 15 fingerprints and other necessary information to the department 15 16 of public safety, division of criminal investigation, for the 15 17 purpose of conducting a national criminal history record check 15 18 through the federal bureau of investigation. The department 15 19 of public safety shall notify the department of agriculture 15 20 and land stewardship of the results of the national criminal 15 21 history record check. The results shall be considered a 15 22 confidential record under chapter 22 and shall not be released 15 23 without the consent of the department of public safety. The 15 24 department of agriculture and land stewardship shall reimburse 15 25 the department of public safety for costs associated with 15 26 conducting the national criminal history record check. 15 27 d. Any other information required by the department in order 15 28 to administer this chapter. 15 29 7. The department of agriculture and land stewardship shall 15 30 deliver a copy of an approved application for a license to 15 31 the department of public safety and the office of the county 15 32 sheriff in the county where the industrial hemp is approved 15 33 to be produced by the licensee in order to participate in the 15 34 industrial hemp commodity program under section 188.13 or the 15 35 industrial hemp production program under section 188.14. 16 1 8. A license shall be suspended or revoked as provided in 16 2 section 188.26. 16 3 Sec. 17. NEW SECTION. 188.16 Licensees ==== inspections by 16 4 department and law enforcement agencies. 16 5 1. The department may conduct an official inspection of 16 6 a licensee's facilities where industrial hemp is produced, 16 7 stored, handled, transported, marketed, or processed. The 16 8 department shall conduct an official inspection during regular 16 9 business hours. As part of an official inspection, the 16 10 department shall collect a sample of the crop for testing under 16 11 section 188.8 at least once and within thirty days prior to 16 12 harvest. The department may order or request that a licensee 16 13 independently collect and test one or more samples of the crop 16 14 during the growing period and notify the department of the 16 15 results. 16 16 2. A licensee shall immediately notify the department of 16 17 the results of any test that exceeds the maximum concentration 16 18 of delta=9 tetrahydrocannabinol as provided in section 188.8, 16 19 regardless of whether the department ordered, requested, or 16 20 knew of the test. 16 21 3. The department may request that a law enforcement 16 22 agency assign an officer to accompany the department during an 16 23 official inspection of the facilities of a licensee. 16 24 4. As part of its official inspection, the department 16 25 may examine the licensee's business records. However, a law 16 26 enforcement officer shall not accompany the department during 16 27 the examination. 16 28 Sec. 18. NEW SECTION. 188.17 Industrial hemp production 16 29 contract ==== requirements. 16 30 A registrant may enter into an industrial hemp production 16 31 contract with a licensee to produce industrial hemp under the 16 32 supervision of the registrant. The registrant shall supervise 16 33 the production of the industrial hemp in cooperation with the 16 34 department. The contract shall provide for the regulation of 16 35 the licensee and the industrial hemp produced by the licensee 17 1 in the same manner as provided in section 188.13, unless 17 2 otherwise provided by the department in consultation with the 17 3 registrant. 17 4 Sec. 19. NEW SECTION. 188.18 Industrial hemp seed capable 17 5 of germination ==== certification. 17 6 1. The Iowa crop improvement association shall certify 17 7 industrial hemp seed capable of germination for use by a 17 8 licensee as part of the industrial hemp commodity program 17 9 under section 188.13 or a registrant as part of the industrial 17 10 hemp production program under section 188.14. The association 17 11 may provide different certification processes, including for 17 12 industrial hemp seed produced or obtained by a registrant or 17 13 obtained from a qualified and reputable industrial hemp seed 17 14 source and supplier. 17 15 2. The association's certification protocols may be based 17 16 on standards promulgated by independent organizations including 17 17 but not limited to the association of official seed certifying 17 18 agencies and verifications offered by qualified and reliable 17 19 persons in the business of providing such seed. 17 20 3. The Iowa crop improvement association shall notify the 17 21 department and the registrant, as applicable, of the results of 17 22 a request for the certification of industrial hemp seed. 17 23 4. A licensee may import industrial hemp seed for 17 24 certification only if allowed by the department acting in 17 25 consultation with the association. A registrant may import 17 26 industrial seed for certification after consulting with the 17 27 department and the association. 17 28 Sec. 20. NEW SECTION. 188.19 Industrial hemp seed capable 17 29 of germination ==== sale by the department. 17 30 1. The department shall offer certified industrial hemp 17 31 seed for sale to licensees participating in the industrial hemp 17 32 commodity program established pursuant to section 188.13. The 17 33 department may offer certified industrial hemp seed for sale to 17 34 a registrant participating in the industrial hemp production 17 35 program established pursuant to section 188.14. 18 1 2. Moneys collected by the department from the sale of 18 2 certified industrial hemp seed shall be deposited into the 18 3 industrial hemp commodity fund established in section 188.23. 18 4 Sec. 21. NEW SECTION. 188.20 Industrial hemp seed capable 18 5 of germination ==== sale by a registrant. 18 6 1. A registrant may offer certified industrial hemp seed 18 7 for sale to the department, or a licensee participating in the 18 8 industrial hemp production program established pursuant to 18 9 section 188.14. 18 10 2. All moneys received by a registrant under subsection 1 18 11 shall be handled in the same manner as repayment receipts as 18 12 defined in section 8.2, and shall be used by the registrant 18 13 exclusively for the registrant's administration of the 18 14 industrial hemp production program. 18 15 Sec. 22. NEW SECTION. 188.21 Fees assessed by department. 18 16 1. The department shall assess and collect all of the 18 17 following: 18 18 a. An application fee to be paid by a person seeking to 18 19 obtain an industrial hemp commodity license as provided in 18 20 section 188.15. 18 21 b. A license fee to be paid by a person being issued an 18 22 industrial hemp commodity license as provided in section 18 23 188.15. 18 24 c. An inspection fee to be paid by a licensee as part of 18 25 an inspection of the facilities where the industrial hemp is 18 26 produced as provided in section 188.16. 18 27 d. A laboratory fee to be paid by a licensee if the 18 28 department takes samples of industrial hemp for testing by a 18 29 laboratory as provided in section 188.8. 18 30 2. The fees described in subsection 1 are nonrefundable. 18 31 3. The total amount of fees collected pursuant to this 18 32 section shall not exceed the department's estimate of the total 18 33 amount of revenues necessary to administer and enforce the 18 34 provisions of this chapter. Prior to the beginning of a fiscal 18 35 year, the department shall establish an estimated total amount 19 1 based on the expected costs to be incurred by the department 19 2 in administering and enforcing the provisions of this chapter 19 3 during the subsequent fiscal year. 19 4 4. The department may establish different rates for any 19 5 category of fees described in subsection 1 based on criteria 19 6 determined relevant by the department, which may include the 19 7 type of license issued and the number of acres set aside for 19 8 industrial hemp production by a licensee. 19 9 5. All fees collected by the department under this section 19 10 shall be deposited into the industrial hemp commodity fund 19 11 established pursuant to section 188.23. 19 12 Sec. 23. NEW SECTION. 188.22 Fees assessed by registrants. 19 13 1. A registrant may assess and collect fees from licensees 19 14 participating in the registrant's industrial hemp production 19 15 program as provided in section 188.14. The total amount 19 16 of fees paid shall not exceed the expenses incurred by the 19 17 registrant in selecting licensees to participate in the 19 18 program, conducting inspections of facilities where the 19 19 industrial hemp is produced, and taking samples of industrial 19 20 hemp to be tested by a laboratory as provided in section 188.8. 19 21 2. All moneys received by a registrant under this section 19 22 shall be handled in the same manner as repayment receipts as 19 23 defined in section 8.2, and shall be used by the registrant 19 24 exclusively for the registrant's administration of the 19 25 industrial hemp production program. 19 26 Sec. 24. NEW SECTION. 188.23 Industrial hemp commodity fund 19 27 ==== appropriation. 19 28 1. An industrial hemp commodity fund is established in 19 29 the state treasury under the management and control of the 19 30 department. 19 31 2. The fund shall include moneys collected by the department 19 32 from the sale of certified seed under section 188.19, fees 19 33 collected under section 188.21, and moneys appropriated by the 19 34 general assembly for deposit in the fund. The fund may include 19 35 other moneys available to and obtained or accepted by the 20 1 department, including moneys from public or private sources. 20 2 3. Moneys in the fund are appropriated to the department 20 3 and shall be used exclusively to carry out the responsibilities 20 4 conferred upon the department under this chapter as determined 20 5 and directed by the department, and shall not require further 20 6 special authorization by the general assembly. 20 7 4. a. Notwithstanding section 12C.7, interest or earnings 20 8 on moneys in the fund shall be credited to the fund. 20 9 b. Notwithstanding section 8.33, moneys credited to the fund 20 10 that remain unexpended or unobligated at the end of a fiscal 20 11 year shall not revert to any other fund. 20 12 Sec. 25. NEW SECTION. 188.24 Cooperation with department 20 13 of public safety. 20 14 1. The department of agriculture and land stewardship and a 20 15 registrant shall cooperate with the department of public safety 20 16 in order to administer this chapter. 20 17 2. The department of public safety shall assist the 20 18 department of agriculture and land stewardship in conducting 20 19 national criminal history record checks of applicants applying 20 20 for licenses under section 188.15. 20 21 3. The department of agriculture and land stewardship and 20 22 a registrant shall upon request or as part of routine process 20 23 provide the department of public safety with the following 20 24 information regarding the industrial hemp commodity program 20 25 under section 188.13 and the industrial hemp production program 20 26 under section 188.14: 20 27 a. The status of the production and the results of any test 20 28 of a crop produced by a licensee under this chapter. 20 29 b. The date and time of an inspection of a licensee's 20 30 facilities or business records. 20 31 c. The confiscation and destruction of a crop under section 20 32 188.25. 20 33 Sec. 26. NEW SECTION. 188.25 Confiscation and destruction. 20 34 1. A Cannabis sativa plant exceeding the maximum 20 35 concentration of delta=9 tetrahydrocannabinol as provided in 21 1 section 188.8 and that is produced under the industrial hemp 21 2 commodity program established pursuant to section 188.13 shall 21 3 be confiscated by the department. 21 4 2. A Cannabis sativa plant exceeding the maximum 21 5 concentration of delta=9 tetrahydrocannabinol as provided in 21 6 section 188.8 and that is produced under the industrial hemp 21 7 production program established pursuant to section 188.14 21 8 shall be confiscated by the registrant in cooperation with the 21 9 department. 21 10 3. The department shall provide for the destruction, 21 11 including any accompanying disposal, of a confiscated Cannabis 21 12 sativa plant produced under the industrial hemp commodity 21 13 program under section 188.13 or the industrial hemp production 21 14 program under section 188.14. A registrant may provide for the 21 15 destruction of a confiscated Cannabis sativa plant produced 21 16 under the industrial hemp production program under section 21 17 188.14 in cooperation with the department. The department 21 18 or a registrant shall not confiscate or destroy a Cannabis 21 19 sativa plant unless the results of an official test conducted 21 20 by the department indicate that a sample exceeds the maximum 21 21 concentration of delta=9 tetrahydrocannabinol as provided in 21 22 section 188.8. The department, or a registrant acting in 21 23 cooperation with the department, may require that a confiscated 21 24 Cannabis sativa plant be kept on the premises where the plant 21 25 was confiscated, including where it is produced, handled, 21 26 transported, marketed, or processed, until arrangements are 21 27 made for the plant's removal and destruction. The destruction 21 28 may also occur on the premises where the plant was confiscated 21 29 if such premises may be reasonably used for that purpose 21 30 as determined by the department or by the registrant in 21 31 cooperation with the department. The destruction shall be 21 32 accomplished in a manner that complies with requirements of the 21 33 department and shall be in accordance with applicable federal 21 34 law. 21 35 4. The department or registrant may request assistance from 22 1 a law enforcement agency necessary to carry out this section. 22 2 The department or registrant upon request shall deliver any 22 3 sample of the plant to the law enforcement agency. 22 4 Sec. 27. NEW SECTION. 188.26 Disciplinary action. 22 5 1. The department may suspend or revoke the license obtained 22 6 under section 188.15 by a person who does any of the following: 22 7 a. Provides false or misleading information on an 22 8 application for an industrial hemp commodity license as 22 9 provided in section 188.15. 22 10 b. Provides false or misleading information to the 22 11 department as part of the industrial hemp commodity program 22 12 under section 188.13 or to a registrant or the department as 22 13 part of the industrial hemp production program under section 22 14 188.14. 22 15 c. Fails to comply with or violates any provision of this 22 16 chapter, including a rule adopted by the department under 22 17 section 188.4, a condition of an application for the issuance 22 18 of a license under section 188.15, or a condition of a contract 22 19 entered into with a registrant under section 188.17. 22 20 d. Fails to comply with an order issued by the department or 22 21 a registrant under this chapter. 22 22 2. The suspension or revocation of a license is in addition 22 23 to the confiscation and destruction of a Cannabis sativa plant 22 24 under section 188.25, a civil penalty under section 188.27, or 22 25 any other civil or criminal penalty that may be imposed on the 22 26 person under state or federal law. 22 27 Sec. 28. NEW SECTION. 188.27 Civil penalties. 22 28 1. A person who violates a provision of this chapter is 22 29 subject to a civil penalty of not less than five hundred 22 30 dollars and not more than two thousand five hundred dollars. 22 31 The department may assess and collect the civil penalty. Each 22 32 day that a continuing violation occurs shall be considered a 22 33 separate offense. 22 34 2. The department shall establish a schedule of civil 22 35 penalties for violations of this chapter. 23 1 3. A civil penalty shall not be assessed against a 23 2 licensee for a violation that results in the confiscation and 23 3 destruction of the licensee's crop under section 188.25, unless 23 4 the composite test result is greater than two percent delta=9 23 5 tetrahydrocannabinol as determined in section 188.8. 23 6 4. All civil penalties collected under this section shall be 23 7 deposited into the general fund of the state. 23 8 Sec. 29. NEW SECTION. 188.28 Criminal penalties. 23 9 A person who knowingly or intentionally produces the 23 10 Cannabis sativa plant and who is not the department, a 23 11 registrant, or a licensee participating in the industrial hemp 23 12 commodity program established pursuant to section 188.13 or 23 13 the industrial hemp production program established pursuant to 23 14 section 188.14 is subject to the provisions in chapters 124 and 23 15 453B. 23 16 Sec. 30. NEW SECTION. 262.80 Industrial hemp production 23 17 program. 23 18 The board of regents may consult with Iowa state university 23 19 of science and technology, the university of Iowa, and the 23 20 university of northern Iowa to provide for the participation 23 21 of those universities in administering an industrial hemp 23 22 production program in cooperation with the department of 23 23 agriculture and land stewardship as provided in chapter 188. SF 2398 (4) 87 da/rj/jh
