House File 733 - Introduced HOUSE FILE 733 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HSB 241) A BILL FOR An Act relating to hemp, including the regulation of hemp, 1 providing for enforcement and the confiscation and 2 destruction or disposal of certain property, providing 3 for fees, making appropriations, including penalties, and 4 providing implementation and effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2748HV (2) 88 da/rn

H.F. 733 DIVISION I 1 IOWA HEMP ACT 2 Section 1. NEW SECTION . 204.1 Short title. 3 This chapter shall be known as the “Iowa Hemp Act” . 4 Sec. 2. NEW SECTION . 204.2 Definitions. 5 As used in this chapter, unless the context otherwise 6 requires: 7 1. “Controlled substance” means the same as defined in 8 section 124.101. 9 2. “Conviction” means a conviction for an indictable offense 10 and includes a guilty plea, deferred judgment from the time of 11 entry of the deferred judgment until the time the defendant is 12 discharged by the court without entry of judgment, or other 13 finding of guilt by a court of competent jurisdiction. 14 3. “Crop site” or “site” means a single contiguous parcel 15 of agricultural land suitable for the planting, growing, or 16 harvesting of hemp, if the parcel does not exceed forty acres. 17 4. “Department” means the department of agriculture and land 18 stewardship. 19 5. “Federal hemp law” means that part of Tit. X of the 20 Agriculture Improvement Act of 2018, Pub. L. No. 115-334, that 21 authorizes hemp production according to a state plan approved 22 by the United States department of agriculture, as provided in 23 §10113 of that Act, amending the Agricultural Marketing Act 24 of 1946, 7 U.S.C. §1621 et seq., including by adding §§297A 25 through 297E. 26 6. “Hemp” means the plant cannabis sativa L. and any 27 part of that plant, including the seeds thereof, and all 28 derivatives, extracts, cannabinoids, isomers, acids, 29 salts, and salts of isomers, whether growing or not, with a 30 delta-9 tetrahydrocannabinol concentration of not more than 31 three-tenths of one percent on a dry weight basis. 32 7. “Hemp license” or “license” means a hemp license issued 33 pursuant to section 204.4. 34 8. a. “Hemp product” means an item derived from or made by 35 -1- LSB 2748HV (2) 88 da/rn 1/ 22

H.F. 733 processing hemp or parts of hemp. 1 b. “Hemp product” includes but is not limited to any item 2 manufactured from hemp, including but not limited to cloth, 3 cordage, fiber, food, fuel, paint, paper, particle board, 4 plastic, hemp seed, seed meal, or seed oil. 5 c. “Hemp product” does not include hemp seed that is capable 6 of germination. 7 9. “Licensee” means a person who obtains a hemp license from 8 the department under this chapter. 9 10. “Local law enforcement agency” means an office of county 10 sheriff or a municipal police department. 11 Sec. 3. NEW SECTION . 204.3 State plan —— implementing 12 rules. 13 1. The department shall prepare a state plan to be submitted 14 to the United States secretary of agriculture under the federal 15 hemp law. The department of public safety shall assist the 16 department in preparing the plan. 17 2. Upon approval of the state plan, the department shall 18 assume primary regulatory authority over the production of hemp 19 in this state as provided in this chapter. However, nothing in 20 this chapter affects the powers and duties of the department of 21 public safety or local law enforcement agencies from detecting 22 or preventing criminal activity. The department of public 23 safety shall be the chief criminal enforcement agency under 24 this chapter. 25 3. The department, with assistance from the department 26 of public safety, may prepare any number of amended state 27 plans or any number of amendments to an existing state plan to 28 be submitted for approval by the United States secretary of 29 agriculture. 30 4. a. The department shall prepare the state plan, any 31 amended state plan, or amendment to an approved state plan, by 32 adopting rules pursuant to chapter 17A. 33 b. In assisting the department of agriculture and land 34 stewardship, the department of public safety shall adopt rules 35 -2- LSB 2748HV (2) 88 da/rn 2/ 22

H.F. 733 as required to administer and enforce the criminal provisions 1 of this chapter and chapter 124 which shall be included as part 2 of the state plan to the extent required by the federal hemp 3 law. 4 c. A department described in this subsection may adopt 5 the rules on an emergency basis as provided in section 17A.4, 6 subsection 3, and section 17A.5, subsection 2, and the rules 7 shall be effective immediately upon filing unless a later date 8 is specified in the rules. 9 Sec. 4. NEW SECTION . 204.4 Hemp license —— requirements. 10 1. The department shall establish and administer a process 11 to receive, evaluate, and approve or disapprove applications 12 for a hemp license. 13 2. The department shall prepare and publish one or more hemp 14 license application forms in cooperation with the department of 15 public safety. A completed application form submitted to the 16 department shall contain all of the following: 17 a. The applicant’s full name and residence address. 18 b. A legal description and map of each crop site where the 19 applicant proposes to produce the hemp including its global 20 positioning system location. 21 c. The number of crop acres to be used for hemp production. 22 d. The name of the hemp variety. 23 e. Any other information required in order to administer and 24 enforce the provisions of this chapter. 25 f. The results of a national criminal history record 26 check of the applicant. The national criminal history record 27 check shall be conducted by the department of public safety. 28 The applicant shall provide the applicant’s fingerprints to 29 the department of public safety for analysis through the 30 state criminal history repository to the federal bureau of 31 investigation. The applicant shall pay the department of 32 public safety the actual costs of conducting the national 33 criminal history check, if any. The department of public 34 safety shall transmit the results of the national criminal 35 -3- LSB 2748HV (2) 88 da/rn 3/ 22

H.F. 733 history check to the department of agriculture and land 1 stewardship which will be part of the completed application. 2 g. As a condition for issuance of a hemp license, the 3 licensee consents to the department of agriculture and land 4 stewardship, the department of public safety, or a local law 5 enforcement agency entering upon a crop site at any time. 6 3. The department may do all of the following: 7 a. Require that all or some licenses expire on the same 8 date. 9 b. Provide a different application form and requirements 10 relating to the submission, evaluation, and approval or 11 disapproval of an application for a renewed hemp license 12 consistent with federal law. 13 4. An applicant shall not be issued a hemp license unless 14 the applicant agrees to comply with all terms and conditions 15 relating to the regulation of a licensee as provided in this 16 chapter. 17 5. A person may hold any number of licenses at the same 18 time. However, the person shall not hold a legal or equitable 19 interest in a licensed crop site, if the total number of acres 20 of all licensed crop sites in which the person holds all such 21 interests equals more than forty acres. 22 6. An initial hemp license expires one year from the date 23 of issuance and may be issued on a renewal basis annually. The 24 department may require that a licensee apply for an amended or 25 new initial license if information contained in the existing 26 application is no longer accurate or is incomplete. 27 7. The department and the department of public safety shall 28 cooperate to develop procedures for the sharing of information 29 regarding applicants, including information required to be 30 completed on application forms. Upon request, the department 31 or the department of public safety shall provide information 32 regarding an applicant to a department of agriculture or law 33 enforcement agency in another state. 34 8. Information received on an application form shall be 35 -4- LSB 2748HV (2) 88 da/rn 4/ 22

H.F. 733 maintained by the department for not less than three years. 1 9. The department shall disapprove the application of a 2 person for good cause, which shall include, but is not limited 3 to, any of the following: 4 a. A conviction for committing a criminal offense punishable 5 as a felony within the prior ten years, or a conviction for 6 committing a criminal offense in another state punishable as a 7 felony if so classified by that state during the same period. 8 b. A conviction for committing a criminal offense involving 9 a controlled substance within the prior ten years, or a 10 conviction for committing a criminal offense involving a 11 controlled substance in another state during the same period. 12 c. The revocation of a hemp license under section 204.11, 13 or the revocation of a license, permit, registration, or other 14 authorization to produce hemp in any other state. 15 10. A hemp license shall be suspended or revoked as provided 16 in section 204.11. 17 Sec. 5. NEW SECTION . 204.5 Hemp fees. 18 1. The department shall impose, assess, and collect the 19 following hemp fees: 20 a. A license fee which shall be paid by a person being 21 issued a hemp license as provided in section 204.4. 22 b. An inspection fee which shall be paid by a licensee for 23 an inspection of a licensee’s crop site as provided in section 24 204.8. 25 2. a. For each hemp license, the license fee shall be 26 imposed on an interim basis until June 30, 2022. The amount of 27 the license fee shall not be more than the following: 28 (1) Five hundred dollars plus five dollars per acre, for 29 each site that is five acres or less. 30 (2) Seven hundred and fifty dollars, plus five dollars per 31 acre, for each site that is more than five acres but less than 32 ten acres. 33 (3) One thousand dollars plus five dollars per acre, for 34 each site is more than ten acres. 35 -5- LSB 2748HV (2) 88 da/rn 5/ 22

H.F. 733 b. For an annual inspection, an inspection fee shall be 1 imposed on an interim basis until June 30, 2022. The amount 2 of the inspection fee shall not be more than one thousand 3 dollars. The department, during the interim period, may charge 4 an additional inspection fee of not more than one thousand 5 dollars for each inspection of a licensee’s crop site, if the 6 inspection is conducted upon the request of the licensee. 7 c. This subsection is repealed on July 1, 2022. 8 3. a. The department shall adopt rules to establish hemp 9 fees for the issuance of a hemp license pursuant to section 10 204.4. 11 b. The department, in cooperation with the department 12 of public safety, shall adopt rules to establish hemp fees 13 for the annual inspection of a licensee pursuant to section 14 204.8. The rules may provide that the department charge an 15 additional inspection fee for each inspection of a licensee’s 16 crop site, if the inspection is conducted upon the request of 17 the licensee. 18 c. The total amount of hemp fees collected by the 19 department pursuant to this section shall not be more than the 20 department’s estimate of the total amount of revenues necessary 21 to administer and enforce the provisions of this chapter based 22 on the expected revenue collected from the hemp fees and the 23 costs to be incurred by the department, and the department of 24 public safety, in administering and enforcing the provisions of 25 this chapter for the succeeding twelve-month period. 26 d. The department may establish different rates for any 27 category of hemp fees based on criteria determined relevant by 28 the department, which may include the number of acres of the 29 crop site and the type of hemp license issued. 30 e. (1) The rules shall first take effect immediately after 31 the repeal of subsection 2. 32 (2) This paragraph “e” is repealed immediately after the 33 rules described in subparagraph (1) take effect. 34 4. The license fee and any annual inspection fee shall 35 -6- LSB 2748HV (2) 88 da/rn 6/ 22

H.F. 733 be collected by the department at the time the hemp license 1 application is submitted. 2 5. Any hemp fee collected by the department under this 3 section shall be deposited in the hemp fund established 4 pursuant to section 204.6. 5 6. The department, in consultation with the department 6 of public safety, may refund all or any part of a hemp fee 7 collected under this section. 8 Sec. 6. NEW SECTION . 204.6 Hemp fund. 9 1. A hemp fund is established in the state treasury under 10 the management and control of the department. 11 2. The hemp fund shall include moneys collected by the 12 department from hemp fees imposed and assessed under section 13 204.5 and moneys appropriated by the general assembly for 14 deposit in the hemp fund. 15 3. Moneys in the hemp fund are appropriated to the 16 department and shall be used exclusively to carry out the 17 responsibilities conferred upon the department under this 18 chapter as determined and directed by the department, and 19 shall not require further special authorization by the general 20 assembly. 21 4. The department shall transfer moneys from the hemp 22 fund to the department of public safety in an amount required 23 to reimburse that department for costs of conducting annual 24 inspections and official tests as provided in section 204.8. 25 The departments shall cooperate to establish a system for 26 scheduled transfers. Moneys received by the department of 27 public safety under this section shall be treated as repayment 28 receipts as defined in section 8.2. 29 5. a. Notwithstanding section 12C.7, interest or earnings 30 on moneys in the hemp fund shall be credited to the hemp fund. 31 b. Notwithstanding section 8.33, moneys credited to the 32 hemp fund that remain unexpended or unobligated at the end of a 33 fiscal year shall not revert to any other fund. 34 Sec. 7. NEW SECTION . 204.7 Regulations. 35 -7- LSB 2748HV (2) 88 da/rn 7/ 22

H.F. 733 1. a. The department, in cooperation with the department 1 of public safety, may adopt rules regulating the production, 2 handling, possession, use, transporting, or marketing of hemp 3 produced on a licensee’s crop site. The rules may provide 4 different requirements that apply to nonseed parts of hemp and 5 hemp seed, including the certification of hemp seed. 6 b. The department of public safety, in cooperation with the 7 department of agriculture and land stewardship, shall adopt 8 rules regulating the business operations of a licensee, which 9 may require a licensee to maintain business records. 10 c. The department of agriculture and land stewardship is not 11 required to amend the state plan as provided in section 204.3, 12 when the department of agriculture and land stewardship or the 13 department of public safety adopts rules under this chapter, 14 unless the department of agriculture and land stewardship is 15 required to do so by the federal hemp law. 16 2. A person is not subject to a criminal offense under this 17 Code for producing, possessing, using, handling, transporting, 18 or marketing marijuana, if all of the following apply: 19 a. The marijuana is produced at a licensee’s crop site. 20 b. The department of public safety is allowed to access 21 the licensee’s crop site as part of an inspection, including 22 by obtaining a sample of plants to conduct an official test as 23 provided in sections 204.8 and 204.9. 24 c. No part of a crop produced at the licensee’s crop 25 site is harvested prior to the licensee being notified by 26 the department of public safety that the crop qualifies as 27 hemp pursuant to the results of the official test, unless the 28 department of public safety otherwise consents to the harvest, 29 as provided in section 204.8. 30 d. The official test result indicates that the crop produced 31 on the licensee’s crop site contains a maximum concentration of 32 delta-9 tetrahydrocannabinol not in excess of three-tenths of 33 one percent on a dry weight basis. 34 3. Hemp is not a controlled substance for which a person 35 -8- LSB 2748HV (2) 88 da/rn 8/ 22

H.F. 733 is subject to a criminal offense under this Code, if the hemp 1 is or was produced in another state in accordance with federal 2 hemp law, including the federal Food, Drug, and Cosmetic Act, 3 21 U.S.C. §301 et seq. 4 4. Nothing in this chapter prohibits a person from 5 producing, possessing, using, handling, transporting, 6 marketing, or processing a hemp product. 7 5. Nothing in this chapter shall be construed to authorize 8 a person to recommend, possess, use, dispense, deliver, 9 transport, or administer medical cannabidiol as defined in 10 section 124E.2. 11 Sec. 8. NEW SECTION . 204.8 Annual inspection and official 12 test. 13 1. The department of public safety shall conduct an annual 14 inspection of a licensee’s crop site to determine if the crop 15 produced at the site qualifies as hemp under this section. The 16 annual inspection shall include obtaining a sample of plants 17 that are part of the crop and providing for an official test of 18 that sample. The inspection shall be conducted as provided in 19 section 204.9. 20 2. A licensee shall deliver a notice to the department 21 stating the expected harvest date for the crop produced at 22 the licensee’s crop site. The department must receive the 23 notice at least thirty days prior to the expected harvest 24 date. The department shall transmit a copy of the notice 25 to the department of public safety, unless the department of 26 agriculture and land stewardship requires the applicant to 27 submit the notice to the department of public safety instead. 28 3. The department of public safety shall conduct the 29 annual inspection of the site within thirty days prior to 30 the actual harvest date. If the department of agriculture 31 and land stewardship elects not to participate in the annual 32 inspection of the licensee’s crop site, the department of 33 public safety shall provide the department of agriculture and 34 land stewardship with a summary of its findings, including 35 -9- LSB 2748HV (2) 88 da/rn 9/ 22

H.F. 733 the results of the official test. The licensee shall not 1 harvest any portion of a crop produced at the site unless the 2 department of public safety notifies the licensee that the crop 3 qualifies as hemp pursuant to the results of an official test 4 or that department otherwise consents to the harvest. 5 5. The official test shall be a composite test of the 6 plants obtained by the department of public safety from the 7 licensee’s crop site during the annual inspection and shall 8 be conducted by the laboratory designated by that department, 9 in consultation with the department of agriculture and land 10 stewardship. The sample must have a maximum concentration of 11 delta-9 tetrahydrocannabinol that does not exceed three-tenths 12 of one percent on a dry weight basis. The laboratory’s 13 official test results indicating that a sample exceeds that 14 percentage shall be conclusive evidence that the crop produced 15 at a site is a controlled substance. 16 Sec. 9. NEW SECTION . 204.9 Right of access. 17 1. The department, including an authorized inspector, 18 employee, or agent of the department, may enter onto a crop 19 site during reasonable hours to determine whether a licensee is 20 acting in compliance with the requirements under this chapter. 21 The department may also obtain an administrative search warrant 22 under section 808.14 to enter into any structure, other than a 23 dwelling, if the structure is located on or in close proximity 24 to the crop site, and the use of such structure is directly 25 related to the planting, growing, or harvesting of hemp, 26 including but not limited to a barn, machine shed, greenhouse, 27 or storage crib. 28 2. The department of public safety or a local law 29 enforcement agency may conduct an inspection of a licensee’s 30 crop site in order to determine that the licensee is complying 31 with the criminal provisions of this chapter and chapter 124. 32 The department of public safety or a local law enforcement 33 agency may also enter into any structure if the use of such 34 structure is related to the licensee’s business operations. 35 -10- LSB 2748HV (2) 88 da/rn 10/ 22

H.F. 733 However, a subpoena or a warrant is required for inspection of 1 private records, a private business office, or attached living 2 quarters, consistent with the laws of this state and the United 3 States, including Article I, section 8, of the Constitution of 4 the State of Iowa, or the fourth amendment to the Constitution 5 of the United States. 6 3. The department of public safety may obtain a sample of 7 plants that are part of the crop and provide for an official 8 test of that sample in the same manner as provided in section 9 204.8 even though the department of public safety is not 10 conducting an annual inspection. The department of agriculture 11 and land stewardship shall not assess or collect a fee, other 12 than a hemp fee as provided in section 204.5. 13 4. All persons who enter onto the property of the licensee 14 under this section shall present appropriate identification to 15 the licensee or the licensee’s representative if the licensee 16 or representative is available. However, this subsection does 17 not apply to undercover criminal investigations conducted by 18 the department of public safety or a local law enforcement 19 agency. 20 5. If the department of agriculture and land stewardship 21 elects not to accompany the department of public safety when 22 accessing a crop site under this section, the department of 23 public safety shall notify the department of agriculture and 24 land stewardship of its findings, including the results of 25 an official test conducted pursuant of section 204.8. The 26 department of public safety may require that any findings 27 made by the department that may be the basis for a criminal 28 investigation or prosecution be treated by the department of 29 agriculture and land stewardship as a confidential record under 30 chapter 22. 31 6. A person shall not prevent the department of agriculture 32 and land stewardship, the department of public safety, or a 33 local law enforcement agency from administering and enforcing 34 the provisions of this section by any means, including but 35 -11- LSB 2748HV (2) 88 da/rn 11/ 22

H.F. 733 not limited to any act, including a refusal to allow entry, 1 misrepresentation, omission, or concealment of facts. 2 7. A licensee shall not harvest any portion of a crop 3 produced at the crop site if the department of agriculture and 4 land stewardship, the department of public safety, or a local 5 law enforcement agency has been prevented from accessing the 6 site under this section. 7 Sec. 10. NEW SECTION . 204.10 Order of disposal. 8 1. If a crop that is produced at a licensee’s crop site 9 is a controlled substance according to an official test 10 conducted pursuant to section 204.8, the department of public 11 safety, in consultation with the department of agriculture 12 and land stewardship, shall order the disposal of the crop by 13 destruction at the site or if necessary require the crop to be 14 removed to another location for destruction. 15 2. The department of public safety may request assistance 16 from a local law enforcement agency necessary to carry out the 17 provisions of this section. The department upon request shall 18 deliver any sample of the crop to the local law enforcement 19 agency. 20 3. The licensee shall pay the department of public safety 21 for all actual and reasonable costs of the destruction. If the 22 department of public safety assumes any amount of the costs, it 23 may charge that amount to the licensee. If the licensee fails 24 to reimburse any of that amount to the department of public 25 safety, the department may report the amount to the county 26 treasurer. The amount shall be placed upon the tax books, 27 and collected with interest and penalties after due, in the 28 same manner as other unpaid property taxes. The county shall 29 reimburse the department of public safety within thirty days 30 from the collection of the property taxes. 31 4. To the extent allowed by applicable federal law, the 32 department of public safety may provide for the disposal of the 33 mature stalks of the crop confiscated by the department for the 34 licensee’s on-farm use and at the licensee’s expense. 35 -12- LSB 2748HV (2) 88 da/rn 12/ 22

H.F. 733 Sec. 11. NEW SECTION . 204.11 Disciplinary action. 1 1. The department may suspend or revoke a hemp license 2 obtained under section 204.4 by a person who does any of the 3 following: 4 a. Provides false or misleading information to the 5 department under this chapter, including by submitting a false 6 application. 7 b. Fails to comply with or violates any provision of this 8 chapter, including a rule adopted by the department, the 9 department of public safety, or a condition of an application 10 for the issuance of a hemp license under section 204.4. 11 c. Fails to comply with an order issued by the department 12 under this chapter. 13 2. The suspension or revocation of a hemp license is in 14 addition to an order of disposal under section 204.10; the 15 imposition of a civil penalty under section 204.12, subject 16 to the provisions of section 204.14; or the imposition of any 17 other civil or criminal penalty authorized under state law. 18 Sec. 12. NEW SECTION . 204.12 Civil penalties. 19 1. A person who violates a provision of this chapter is 20 subject to a civil penalty of not less than five hundred 21 dollars and not more than two thousand five hundred dollars. 22 The department shall assess and collect the civil penalty. 23 Each day that a continuing violation occurs may be considered a 24 separate offense. 25 2. Notwithstanding subsection 1, a civil penalty shall 26 not be assessed against a licensee for a violation that 27 results in the disposal of the licensee’s crop under section 28 204.10, if the department of public safety obtains a sample 29 of the crop produced on the licensee’s crop site and the 30 official test results of the sample conducted pursuant to 31 section 204.8 indicates a maximum concentration of delta-9 32 tetrahydrocannabinol not in excess of two percent on a dry 33 weight basis. 34 3. All civil penalties collected under this section shall be 35 -13- LSB 2748HV (2) 88 da/rn 13/ 22

H.F. 733 deposited into the general fund of the state. 1 Sec. 13. NEW SECTION . 204.13 Injunctive relief. 2 The department, in cooperation with the department of 3 public safety, or the attorney general acting on behalf of 4 the department may apply to the district court for injunctive 5 relief in order to restrain a person from acting in violation 6 of this chapter. In order to obtain injunctive relief, the 7 department shall not be required to post a bond or prove the 8 absence of an adequate remedy at law unless the court for 9 good cause otherwise orders. The court may order any form 10 of prohibitory or mandatory relief that is appropriate under 11 principles of equity, including but not limited to issuing a 12 temporary or permanent restraining order. 13 Sec. 14. NEW SECTION . 204.14 Negligent violations. 14 1. a. The department may find that a licensee has 15 negligently violated a provision of this chapter by doing any 16 of the following: 17 (1) Completing an application for a license without 18 providing a legal description of the crop site pursuant to 19 section 204.4. 20 (2) Failing to renew a hemp license or obtain a license for 21 a new crop site pursuant to section 204.4. 22 (3) Using seed that could produce a crop on the 23 licensee’s crop site with a maximum concentration of delta-9 24 tetrahydrocannabinol in excess of three-tenths of one percent 25 according to the results of an official test conducted of a 26 sample obtained from the crop site pursuant to section 204.8. 27 b. If the department determines a licensee violated this 28 chapter with a culpable mental state greater than negligence, 29 the department shall immediately report the licensee’s 30 violation to the department of public safety, the county 31 attorney, and the attorney general, who shall take action as 32 the facts and circumstances warrant. The department shall also 33 report the licensee to the United States attorney general to 34 the extent required by the federal hemp law. 35 -14- LSB 2748HV (2) 88 da/rn 14/ 22

H.F. 733 2. A person who materially falsifies any information 1 contained in an application under section 204.4 shall be 2 ineligible to produce hemp under this chapter. 3 3. A licensee convicted of a felony relating to a controlled 4 substance before, on, or after the implementation date of this 5 chapter shall be ineligible to produce hemp under this chapter 6 for a ten-year period following the date of conviction. 7 Sec. 15. NEW SECTION . 204.15 Statutory construction. 8 1. Nothing in this chapter shall be construed or applied to 9 be less stringent than required under the federal hemp law. 10 2. Nothing in this chapter shall be construed or applied to 11 be in conflict with any of the following: 12 a. Applicable federal law, including the federal Food, Drug, 13 and Cosmetic Act, 21 U.S.C. ch. 9 and related regulations. 14 b. Other laws of this state, including any administrative 15 rules, relating to product development, product manufacturing, 16 consumer safety, or public health so long as the state law is 17 compatible with applicable federal law. 18 c. Local law relating to product development, product 19 manufacturing, consumer safety, or public health so long as the 20 local law is consistent with federal and state law. 21 Sec. 16. CONTINGENT IMPLEMENTATION. 22 1. Except as provided in subsection 2, the provisions of 23 chapter 204, as enacted in this division of this Act, shall 24 only be implemented, including administered and enforced, 25 by the department of agriculture and land stewardship, 26 the department of public safety, and local law enforcement 27 agencies, beginning on the publication date of the edition of 28 the Iowa administrative bulletin that includes a statement by 29 the secretary of agriculture of the department of agriculture 30 and land stewardship certifying that the United States 31 department of agriculture has approved a state plan as 32 described in section 204.3, as enacted in this division of this 33 Act. The department shall forward a copy of the statement to 34 the Iowa Code editor prior to publication. 35 -15- LSB 2748HV (2) 88 da/rn 15/ 22

H.F. 733 2. Section 204.3 and this subsection shall be implemented on 1 the effective date of this Act. 2 DIVISION II 3 COORDINATING AMENDMENTS 4 Sec. 17. Section 29B.107A, Code 2019, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION . 3. Notwithstanding subsection 2, 7 “controlled substance” does not include hemp or a hemp product 8 excluded from schedule I of controlled substances as provided 9 in section 124.204, subsection 7. 10 Sec. 18. Section 80.9, subsection 7, Code 2019, is amended 11 to read as follows: 12 7. a. The department shall assist persons who are 13 responsible for the care of private and public land in 14 identifying growing marijuana plants when the plants are 15 reported to the department. The department shall also provide 16 education to the persons regarding methods of eradicating the 17 plants. 18 b. Notwithstanding paragraph “a” , the department is not 19 required to provide such assistance if the marijuana plants are 20 hemp produced in accordance with the provisions of chapter 204. 21 c. The department shall adopt rules necessary to carry out 22 this subsection . 23 Sec. 19. Section 124.204, subsection 4, paragraphs m and u, 24 Code 2019, are amended to read as follows: 25 m. Marijuana, except as otherwise provided by rules of the 26 board for medicinal purposes in subsection 7 . 27 u. (1) Tetrahydrocannabinols, except as otherwise 28 provided by rules of the board for medicinal purposes, 29 meaning tetrahydrocannabinols naturally contained in a plant 30 of the genus Cannabis (Cannabis plant) as well as synthetic 31 equivalents of the substances contained in the Cannabis plant, 32 or in the resinous extractives of such plant, and synthetic 33 substances, derivatives, and their isomers with similar 34 chemical structure and pharmacological activity to those 35 -16- LSB 2748HV (2) 88 da/rn 16/ 22

H.F. 733 substances contained in the plant, such as the following: 1 (1) (a) 1 cis or trans tetrahydrocannabinol, and their 2 optical isomers. 3 (2) (b) 6 cis or trans tetrahydrocannabinol, and their 4 optical isomers. 5 (3) (c) 3,4 cis or trans tetrahydrocannabinol, and their 6 optical isomers. (Since nomenclature of these substances 7 is not internationally standardized, compounds of these 8 structures, regardless of numerical designation of atomic 9 positions covered.) 10 (2) Subparagraph (1) does not include tetrahydrocannabinol 11 to the extent excluded in subsection 7. 12 Sec. 20. Section 124.204, subsection 7, Code 2019, is 13 amended to read as follows: 14 7. Exclusions. This section does not apply to marijuana, 15 any of the following: 16 a. Marijuana, tetrahydrocannabinols , or chemical 17 derivatives of tetrahydrocannabinol , when utilized for 18 medicinal purposes pursuant to rules of the board. 19 b. (1) Marijuana that is hemp as defined in section 204.2, 20 including any tetrahydrocannabinols, or chemical derivatives 21 of tetrahydrocannabinol contained in hemp that is or was 22 produced in this state or another state in accordance with the 23 provisions of chapter 204. 24 (2) A hemp product as provided in chapter 204. 25 Sec. 21. Section 124.401, Code 2019, is amended by adding 26 the following new subsection: 27 NEW SUBSECTION . 6. Notwithstanding any other provision 28 in this section to the contrary, a person may knowingly or 29 intentionally produce, possess, use, manufacture, deliver, or 30 transport any of the following: 31 a. Hemp that is or was produced at a crop site by a person 32 operating under a hemp license issued by the department 33 of agriculture and land stewardship in accordance with the 34 provisions of chapter 204. 35 -17- LSB 2748HV (2) 88 da/rn 17/ 22

H.F. 733 b. Hemp that is or was produced in another state in 1 accordance with the federal hemp law and other applicable law, 2 including the federal Food, Drug, and Cosmetic Act, 21 U.S.C. 3 §301 et seq. 4 c. A hemp product as provided in chapter 204. 5 Sec. 22. Section 124.410, Code 2019, is amended to read as 6 follows: 7 124.410 Accommodation offense. 8 1. In a prosecution for unlawful delivery or possession 9 with intent to deliver marijuana, if the prosecution proves 10 that the defendant violated the provisions of section 124.401, 11 subsection 1 , by proving that the defendant delivered or 12 possessed with intent to deliver one-half ounce or less of 13 marijuana which was not offered for sale, the defendant is 14 guilty of an accommodation offense and rather than being 15 sentenced as if convicted for a violation of section 124.401, 16 subsection 1 , paragraph “d” , shall be sentenced as if 17 convicted of a violation of section 124.401, subsection 5 . An 18 accommodation offense may be proved as an included offense 19 under a charge of delivering or possessing with the intent to 20 deliver marijuana in violation of section 124.401, subsection 21 1 . This section does not apply to hashish, hashish oil, or 22 other derivatives of marijuana as defined in section 124.101, 23 subsection 20 . 24 2. Subsection 1 does not apply to hemp or a hemp product 25 excluded from schedule I of controlled substances as provided 26 in section 124.204, subsection 7. 27 Sec. 23. Section 124.411, subsection 3, Code 2019, is 28 amended to read as follows: 29 3. This section does not apply to offenses any of the 30 following: 31 a. An offense under section 124.401, subsection 5 . 32 b. Hemp or a hemp product excluded from schedule I 33 of controlled substances as provided in section 124.204, 34 subsection 7. 35 -18- LSB 2748HV (2) 88 da/rn 18/ 22

H.F. 733 Sec. 24. Section 124.506A, subsection 1, Code 2019, is 1 amended to read as follows: 2 1. a. Notwithstanding the provisions of section 124.506 , if 3 more than ten pounds of marijuana or more than one pound of any 4 other controlled substance is seized as a result of a violation 5 of this chapter , the law enforcement agency responsible for 6 retaining the seized controlled substance may destroy the 7 seized controlled substance if the law enforcement agency 8 retains at least ten pounds of the marijuana seized or at least 9 one pound of any other controlled substance seized for evidence 10 purposes. 11 b. Subsection 1 does not apply to hemp or a hemp product 12 excluded from schedule I of controlled substances as provided 13 in section 124.204, subsection 7. 14 Sec. 25. Section 189.1, subsection 1, Code 2019, is amended 15 to read as follows: 16 1. “Article” means food, commercial feed, agricultural seed, 17 commercial fertilizer, drug, pesticide, hemp, and paint, in the 18 sense in which they are defined in the various provisions of 19 this subtitle. 20 Sec. 26. NEW SECTION . 317.1D Hemp production. 21 This chapter does not apply to a plant or any part of the 22 plant qualifying as hemp, if the hemp is produced on a crop 23 site regulated under chapter 204. 24 Sec. 27. NEW SECTION . 453B.17 Exemption —— hemp and hemp 25 products. 26 This chapter does not apply to any of the following: 27 1. Hemp that is or was produced at a crop site by a person 28 operating under a hemp license issued by the department 29 of agriculture and land stewardship in accordance with the 30 provisions of chapter 204. 31 2. Hemp that is or was produced in another state in 32 accordance with the federal hemp law and other applicable law, 33 including the federal Food, Drug, and Cosmetic Act, 21 U.S.C. 34 §301 et seq. 35 -19- LSB 2748HV (2) 88 da/rn 19/ 22