Senate
File
264
-
Introduced
SENATE
FILE
264
BY
CHELGREN
A
BILL
FOR
An
Act
providing
for
the
production
and
marketing
of
industrial
1
hemp,
and
providing
for
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
LEGISLATIVE
FINDINGS
——
PURPOSE.
The
general
1
assembly
finds
that
a
trend
exists
among
states
to
consider
the
2
economic
importance
of
industrial
hemp,
which
is
a
major
crop
3
in
other
nations.
Industrial
hemp
historically
has
contributed
4
to
the
economic
welfare
of
this
country,
and
is
a
renewable
5
natural
resource
manufactured
for
textiles,
pulp,
paper,
oil,
6
building
materials,
and
other
products.
The
purpose
of
this
7
Act
is
to
promote
the
economy
of
this
state
by
providing
for
8
research
necessary
to
develop
industrial
hemp
as
a
viable
crop.
9
Sec.
2.
NEW
SECTION
.
159.41
Industrial
hemp
licensing
and
10
regulation
——
fee
——
penalty.
11
1.
As
used
in
this
section,
“industrial
hemp”
means
cannabis
12
sativa
L.
which
has
a
percentage
of
tetrahydrocannabinol
of
13
not
more
than
one
percent,
as
provided
by
rules
which
shall
be
14
adopted
by
the
department.
15
2.
The
department
of
agriculture
and
land
stewardship,
16
in
cooperation
with
the
department
of
public
safety,
shall
17
administer
this
section.
The
department
of
agriculture
and
18
land
stewardship
shall
cooperate
with
other
law
enforcement
19
agencies.
The
department
shall
also
collaborate
with
agencies
20
of
the
United
States
government,
including
but
not
limited
21
to
the
drug
enforcement
administration
of
the
United
States
22
department
of
justice,
in
order
to
provide
for
the
production
23
and
possession
of
industrial
hemp
according
to
the
terms
and
24
conditions
required
by
the
United
States
government.
The
25
department
may
execute
any
memorandum
of
understanding
with
a
26
United
States
government
agency
in
order
to
administer
this
27
section.
28
3.
a.
To
the
extent
permitted
by
the
United
States
29
government,
the
department
shall
issue
licenses
to
persons
30
for
the
production
and
possession
of
industrial
hemp,
31
notwithstanding
any
section
of
this
chapter
to
the
contrary.
32
A
person
must
possess
a
license
pursuant
to
this
section
33
to
produce
or
possess
industrial
hemp.
The
department
of
34
agriculture
and
land
stewardship
shall
limit
the
number
of
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licenses
that
it
grants
each
year
in
order
to
ensure
that
the
1
department
of
agriculture
and
land
stewardship,
in
cooperation
2
with
the
department
of
public
safety,
may
strictly
enforce
3
compliance
with
the
requirements
of
this
section.
A
license
4
shall
expire
not
later
than
one
year
following
the
date
of
5
issuance.
6
b.
A
person
applying
for
a
license
shall
file
an
application
7
on
a
form
prescribed
by
the
department
of
agriculture
and
land
8
stewardship
according
to
procedures
required
by
the
department.
9
The
department
may
charge
an
application
fee
which
shall
not
10
exceed
five
hundred
dollars.
An
applicant
and
each
employee
11
of
the
applicant
must
satisfy
eligibility
requirements
of
the
12
department,
which
shall
include
but
not
be
limited
to
all
of
13
the
following:
14
(1)
Be
eighteen
years
of
age
or
older.
15
(2)
Never
have
been
convicted
of
a
felony,
an
aggravated
16
misdemeanor,
or
of
any
other
offense
related
to
the
possession
17
of
a
controlled
substance.
18
(3)
Not
be
addicted
to
the
use
of
alcohol
or
a
controlled
19
substance.
20
(4)
Be
of
good
moral
character
and
not
have
been
judged
21
guilty
of
a
crime
involving
moral
turpitude.
22
c.
The
licensee
shall
maintain
accurate
records,
as
required
23
by
the
department,
which
shall
contain
information
relating
24
to
the
licensee’s
operation,
including
but
not
limited
to
the
25
production
site,
the
time
and
manner
of
harvest,
and
persons
26
involved
in
the
production,
harvesting,
and
distribution
of
the
27
industrial
hemp.
28
4.
Notwithstanding
chapter
124,
the
licensee
may
produce,
29
harvest,
and
distribute
industrial
hemp.
However,
the
licensee
30
must
act
in
strict
conformance
with
this
section.
The
licensee
31
shall
raise
industrial
hemp
upon
demonstration
plots
as
32
approved
by
the
department.
The
demonstration
plots
must
be
33
used
to
develop
optimal
agricultural
practices
for
raising
34
industrial
hemp.
All
plant
materials
from
industrial
hemp
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grown
on
demonstration
plots,
except
plant
materials
retained
1
for
breeding
and
propagation,
must
be
used
for
commercial
uses
2
approved
by
the
department.
3
5.
The
department
of
agriculture
and
land
stewardship
or
4
the
department
of
public
safety
may
inspect
a
production
or
5
distribution
site
of
a
licensee
at
any
time,
and
may
inspect
6
records
required
to
be
maintained
as
provided
in
this
section.
7
The
department
of
agriculture
and
land
stewardship
shall
assess
8
and
the
licensee
shall
pay
the
actual
costs
of
the
inspection.
9
If
the
owner
or
occupant
of
any
property
used
by
the
licensee
10
for
the
production
or
distribution
refuses
admittance
onto
11
the
property,
or
if
prior
to
such
refusal
the
department
of
12
agriculture
and
land
stewardship
or
department
of
public
safety
13
demonstrates
the
necessity
for
a
warrant,
the
department
of
14
agriculture
and
land
stewardship
may
make
application
under
15
oath
or
affirmation
to
the
district
court
of
the
county
in
16
which
the
property
is
located
for
the
issuance
of
a
search
17
warrant.
If
the
court
is
satisfied
from
examination
of
the
18
applicant,
of
other
witnesses,
if
any,
and
of
the
allegations
19
of
the
application
or
the
existence
of
the
grounds
of
the
20
application,
or
that
probable
cause
exists
to
believe
such
21
grounds
exist,
the
court
may
issue
a
search
warrant.
22
6.
The
department
may
suspend
or
revoke
a
license
if
the
23
licensee
or
an
employee
of
the
licensee
is
determined
to
have
24
committed
any
of
the
following:
25
a.
Fraud
in
applying
for
or
obtaining
a
license.
26
b.
A
violation
of
this
section
or
rules
adopted
by
the
27
department
pursuant
to
this
section,
including
failing
to
28
comply
with
a
requirement
of
this
section.
29
c.
An
offense
involving
moral
turpitude,
a
felony,
an
30
aggravated
misdemeanor,
or
any
other
offense
related
to
the
31
possession
of
a
controlled
substance.
32
7.
a.
Except
as
provided
in
paragraph
“b”
,
an
applicant
for
33
a
license
or
a
licensee
who
knowingly
violates
a
requirement
34
of
this
section
or
a
rule
adopted
by
the
department
pursuant
35
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to
this
section
is
subject
to
a
civil
penalty
of
not
more
than
1
fifty
thousand
dollars.
2
b.
A
person
who
makes
a
false
statement
on
the
application
3
for
a
license
regarding
the
conviction
of
a
felony,
aggravated
4
misdemeanor,
or
any
other
offense
related
to
the
possession
of
5
a
controlled
substance
is
guilty
of
an
aggravated
misdemeanor.
6
Sec.
3.
Section
317.1A,
Code
2013,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
3.
“Industrial
hemp”
which
is
produced
as
9
provided
in
section
159.41
is
not
a
noxious
weed.
10
EXPLANATION
11
This
bill
provides
for
the
production
of
industrial
hemp
12
which
has
a
percentage
of
tetrahydrocannabinol
of
not
more
than
13
1
percent.
14
The
bill
requires
the
department
of
agriculture
and
land
15
stewardship,
in
cooperation
with
the
department
of
public
16
safety,
to
administer
a
program
to
license
persons
involved
17
in
industrial
hemp
production.
The
bill
requires
the
18
department
to
collaborate
with
agencies
of
the
United
States
19
government,
including
but
not
limited
to
the
drug
enforcement
20
administration
in
order
to
provide
for
the
production
and
21
possession
of
industrial
hemp
according
to
the
terms
and
22
conditions
required
by
the
United
States
government.
The
23
bill
provides
that
to
the
extent
permitted
by
the
United
24
States
government,
the
department
shall
issue
licenses
to
25
persons
for
the
production
and
possession
of
industrial
26
hemp,
notwithstanding
any
other
provision
of
Code
chapter
27
124
regulating
controlled
substances.
The
bill
provides
28
requirements
for
applicants
and
persons
involved
in
the
29
production
or
possession
of
industrial
hemp.
The
bill
provides
30
for
the
inspection
of
the
premises
and
records
of
licensees.
31
The
bill
provides
for
the
suspension
or
revocation
of
a
32
license.
33
The
bill
provides
that
licensees
who
violate
the
provisions
34
of
the
bill
are
subject
to
a
civil
penalty
of
up
to
$50,000.
35
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The
bill
provides
that
a
person
who
makes
a
false
statement
1
on
the
application
for
a
license
regarding
a
conviction
of
a
2
felony,
aggravated
misdemeanor,
or
any
other
offense
related
3
to
the
possession
of
a
controlled
substance
is
guilty
of
4
an
aggravated
misdemeanor.
An
aggravated
misdemeanor
is
5
punishable
by
confinement
for
no
more
than
two
years
and
a
fine
6
of
at
least
$625
but
not
more
than
$6,250.
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