Senate File 2380 S-5101 Amend Senate File 2380 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 124.506, Code 2020, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 4A. According to an order for the disposal 6 of a crop that does not qualify as hemp as provided in section 7 204.10. 8 Sec. 2. Section 204.2, Code 2020, is amended by adding the 9 following new subsections: 10 NEW SUBSECTION . 01. “Certificate of analysis” means proof 11 that a crop produced on a licensee’s crop site qualifies as 12 hemp as provided in section 204.8. 13 NEW SUBSECTION . 001. “Consumable hemp product” means a 14 hemp product that includes a substance that is metabolized 15 or is otherwise subject to a biotransformative process when 16 introduced into the human body. 17 a. A consumable hemp product may be introduced into the 18 human body by ingestion or absorption by any device including 19 but not limited to an electronic device. 20 b. A consumable hemp product may exist in a solid or liquid 21 state. 22 c. A hemp product is deemed to be a consumable hemp product 23 if it is any of the following: 24 (1) Designed by the processor, including the manufacturer, 25 to be introduced into the human body. 26 (2) Advertised as an item to be introduced into the human 27 body. 28 (3) Distributed, exported, or imported for sale or 29 distribution to be introduced into the human body. 30 d. “Consumable hemp product” includes but is not limited to 31 any of the following: 32 (1) A noncombustible form of hemp that may be digested, 33 such as food; internally absorbed, such as chew or snuff; or 34 absorbed through the skin, such as a topical application. 35 -1- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 1/ 11 #1.

(2) Hemp processed or otherwise manufactured, marketed, 1 sold, or distributed as food, a food additive, a dietary 2 supplement, or a drug. 3 e. “Consumable hemp product” does not include a hemp product 4 if the intended use of the hemp product is introduction into 5 the human body by any method of inhalation, as prohibited under 6 section 204.14A. 7 NEW SUBSECTION . 4A. “Federal Food, Drug, and Cosmetic Act” 8 means the Act so entitled as codified in 21 U.S.C. §301 et 9 seq., including regulations adopted pursuant to that Act by the 10 United States food and drug administration under the Code of 11 Federal Regulations, Title 21. 12 NEW SUBSECTION . 13. “Temporary harvest and transportation 13 permit” means a document allowing the harvesting of a crop 14 produced on a licensee’s crop site and the temporary movement 15 of that crop subject to limitations provided in section 204.8. 16 Sec. 3. Section 204.2, subsection 6, Code 2020, is amended 17 to read as follows: 18 6. a. “Hemp” means the plant cannabis sativa L. and any 19 part of that plant, including the seeds thereof, and all 20 derivatives, extracts, cannabinoids, isomers, acids, salts, 21 and salts of isomers, whether growing or not, with a maximum 22 delta-9 tetrahydrocannabinol concentration of not more than 23 three-tenths of one percent on a dry weight basis as calculated 24 pursuant to an official test as provided in section 204.8 . 25 b. “Hemp” also means a plant of the genus cannabis 26 other than cannabis sativa L., with a maximum delta-9 27 tetrahydrocannabinol concentration of not more than 28 three-tenths of one percent on a dry weight basis as calculated 29 pursuant to an official test as provided in section 204.8 , but 30 only to the extent allowed by the department in accordance with 31 applicable federal law, including the federal hemp law. 32 Sec. 4. Section 204.3, subsection 4, Code 2020, is amended 33 to read as follows: 34 4. The department may provide for the receipt, filing, 35 -2- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 2/ 11

processing, and return of documents described in this chapter 1 in an electronic format, including but not limited to the 2 transmission of documents by the internet. The department 3 shall provide for the authentication of official forms in an 4 electronic format that may include electronic signatures as 5 provided in chapter 554D . An official form in an electronic 6 format shall have the same validity and is discoverable and 7 admissible in evidence if given under penalty of perjury in the 8 same manner as an original printed form. The department shall 9 provide for the issuance of certificates of crop inspection 10 analysis in an electronic format as provided in section 204.8 . 11 Sec. 5. Section 204.7, subsection 4, Code 2020, is amended 12 to read as follows: 13 4. The department shall adopt rules regulating the 14 production of hemp, including but not limited to inspection 15 and testing requirements under section 204.8 or 204.9 , and the 16 issuance of a temporary harvest and transportation permit or 17 certificate of crop inspection analysis under section 204.8 . 18 The department shall adopt rules as necessary to administer the 19 negligent violation program. The department may adopt other 20 rules as necessary or desirable to administer and enforce the 21 provisions of this chapter relating to hemp or hemp products. 22 Sec. 6. Section 204.7, subsection 5, Code 2020, is amended 23 by striking the subsection and inserting in lieu thereof the 24 following: 25 5. a. A person is not subject to a criminal offense 26 involving hemp as otherwise prohibited in chapter 124 or 453B, 27 if all of the following apply: 28 (1) If the person is a licensee, the person carries the 29 person’s hemp license when possessing hemp. 30 (2) The person carries a certificate of analysis, or a 31 temporary harvest and transportation permit, if the person is 32 in possession of harvested hemp. If the person is transporting 33 harvested hemp into or through this state, the person must 34 carry a certificate of analysis or an equivalent document 35 -3- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 3/ 11

issued to the person by the jurisdiction where the hemp was 1 produced. 2 (3) The person carries a certificate of analysis, if the 3 person is delivering hemp seed for planting. 4 (4) The person carries a bill of lading under all of the 5 following circumstances: 6 (a) The person is in possession of hemp in transit to 7 transfer ownership. 8 (b) The person is delivering hemp seed for planting and the 9 seed is not of the licensee’s own production. 10 (c) A person brings hemp produced in another state into or 11 through this state. 12 b. For purposes of paragraph “a” , a criminal offense 13 involving hemp includes but is not limited to production, use, 14 harvest, transportation, delivery, distribution, or sale. 15 Sec. 7. Section 204.7, subsection 6, Code 2020, is amended 16 by striking the subsection and inserting in lieu thereof the 17 following: 18 6. A person other than a licensee is not subject to a 19 criminal offense involving hemp as described in subsection 5 if 20 the person is authorized to be on the licensee’s crop site by 21 the licensee. 22 Sec. 8. Section 204.7, subsections 7 and 8, Code 2020, are 23 amended by striking the subsections. 24 Sec. 9. Section 204.7, subsection 9, paragraph a, Code 2020, 25 is amended to read as follows: 26 a. A Except as provided in subsection 10, and section 27 204.14A, a person may engage in the retail sale of a hemp 28 product if the hemp was produced in this state or another state 29 in compliance with the federal hemp law or other applicable 30 federal law. A person may engage in the retail sale of a hemp 31 product if the hemp was produced in another jurisdiction in 32 compliance with applicable federal law and the laws of the 33 other jurisdiction, if such law is substantially the same as 34 applicable federal law. 35 -4- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 4/ 11

Sec. 10. Section 204.7, subsection 9, paragraph b, Code 1 2020, is amended by striking the paragraph. 2 Sec. 11. Section 204.7, Code 2020, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 10. a. Except as provided in paragraph 5 “e” , a consumable hemp product shall not be manufactured, 6 sold, or consumed in this state unless all of the following 7 conditions are met: 8 (1) The consumable hemp product is manufactured in this 9 state in compliance with this chapter. 10 (2) The hemp contained in the consumable hemp product was 11 produced exclusively in this state in compliance with this 12 chapter. 13 (3) The consumable hemp product complies with packaging 14 and labeling requirements, which shall be established by the 15 department of inspections and appeals by rule. 16 b. A person manufacturing a consumable hemp product in this 17 state shall register with the department of inspections and 18 appeals on a form prescribed by the department of inspections 19 and appeals by rule. The department of inspections and appeals 20 may impose a fee, established by the department of inspections 21 and appeals by rule, on a registrant not to exceed the cost of 22 processing the registration. The department of inspections and 23 appeals shall adopt rules for the revocation of a registration 24 issued to a manufacturer who manufactures a consumable hemp 25 product not in compliance with this chapter. 26 c. A person selling a consumable hemp product in this state 27 shall register with the department of inspections and appeals 28 on a form prescribed by the department of inspections and 29 appeals by rule and shall keep on the premises of the person’s 30 business a copy of the certificate of analysis issued pursuant 31 to section 204.8 for the hemp contained in the consumable hemp 32 products sold by the person. The department of inspections 33 and appeals may impose a fee, established by the department of 34 inspections and appeals by rule, on a registrant not to exceed 35 -5- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 5/ 11

the cost of processing the registration. The department of 1 inspections and appeals shall adopt rules for the revocation of 2 a registration issued to a person who sells a consumable hemp 3 product not in compliance with this section. 4 d. Except as otherwise provided in this subsection, 5 a political subdivision of the state shall not adopt any 6 ordinance, rule, or regulation regarding the manufacture, sale, 7 or consumption of a consumable hemp product. 8 e. A consumable hemp product manufactured in another 9 jurisdiction pursuant to a state or tribal plan approved by the 10 United States department of agriculture pursuant to the federal 11 hemp law may be imported for use by a consumer or sale by a 12 retailer to a consumer if the state has substantially similar 13 testing requirements as those provided in section 204.8. 14 f. A consumable hemp product manufactured, sold, or 15 consumed in compliance with this subsection is not a controlled 16 substance under chapter 124 or 453B regardless of whether the 17 consumable hemp product has been approved by the United States 18 food and drug administration. 19 Sec. 12. Section 204.8, subsection 1, paragraph d, Code 20 2020, is amended to read as follows: 21 d. A licensee shall not harvest any portion of a crop 22 produced at the licensee’s crop site unless the department has 23 obtained a sample of plants to conduct a test as provided in 24 this section and has issued the licensee a temporary harvest 25 and transportation permit or certificate of crop inspection 26 analysis . The department may adopt rules that it determines 27 necessary or desirable to administer and enforce the terms and 28 conditions of a permit. The department shall have unrestricted 29 access to a crop site subject to a permit. A licensee subject 30 to a permit shall receive permission from the department prior 31 to moving the hemp, shall not commingle the hemp, and shall not 32 transfer the hemp to another person. 33 e. The department shall issue a verified copy of the 34 temporary harvest and transportation permit or certificate of 35 -6- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 6/ 11

analysis to any other person upon request of the licensee. The 1 permit or certificate shall be published by the department as 2 an official form. 3 f. To the extent allowed by the federal hemp law, the 4 certificate of analysis shall be proof that the harvested crop 5 described on the form qualifies as hemp pursuant to the results 6 of an official test. 7 g. A temporary harvest and transportation permit expires 8 when the department issues the licensee a certificate of 9 analysis. A permit or certificate of analysis terminates upon 10 the issuance of an order of disposal of the licensee’s crop 11 as provided in section 204.10 or upon the revocation of the 12 licensee’s hemp license as provided in section 204.11. 13 Sec. 13. Section 204.8, subsection 3, Code 2020, is amended 14 by striking the subsection and inserting in lieu thereof the 15 following: 16 3. The official test shall be a composite test of the 17 plants obtained by the department from a licensee’s crop 18 site during the annual inspection and shall be conducted by 19 a laboratory designated by the department. The sample must 20 have an acceptable delta-9 tetrahydrocannabinol concentration, 21 resulting from a post decarboxylation analysis, that does not 22 exceed three-tenths of one percent on a dry weight basis. 23 a. The laboratory shall report delta-9 tetrahydrocannabinol 24 concentration on a dry weight basis that accounts for a 25 measurement uncertainty associated with the result of a 26 measurement. The measurement uncertainty shall characterize 27 the dispersion of the values that could be reasonably 28 attributed to the particular quantity subject to measurement. 29 The acceptable delta-9 tetrahydrocannabinol concentration 30 occurs when the application of the measurement uncertainty to 31 the reported delta-9 tetrahydrocannabinol concentration on a 32 dry weight basis produces a distribution or range that includes 33 three-tenths of one percent or less. 34 b. The post decarboxylation value is the result 35 -7- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 7/ 11

of an analysis determined after the process of 1 decarboxylation that determines the total potential 2 delta-9 tetrahydrocannabinol content derived from the sum of 3 the delta-9 tetrahydrocannabinol concentration and delta-9 4 tetrahydrocannabinolic acid content and reported on a dry 5 weight basis. The post decarboxylation value may be determined 6 by using a chromatographic technique using heat and gas 7 chromatography, through which the tetrahydrocannabinolic 8 acid content is converted from its acid form to its neutral 9 form. The post decarboxylation value may also be calculated 10 by using a high-performance liquid chromatograph technique, 11 which keeps the tetrahydrocannabinolic acid intact and requires 12 a conversion calculation of that tetrahydrocannabinolic acid 13 to determine the total potential delta-9 tetrahydrocannabinol 14 content in a given sample. 15 Sec. 14. Section 204.9, subsection 2, paragraph b, Code 16 2020, is amended to read as follows: 17 b. The department of public safety or a local law 18 enforcement agency may obtain a sample of plants that are part 19 of the crop and provide for a test of that sample as provided in 20 section 204.8 . The department of public safety or a local law 21 enforcement agency shall not impose, assess, or collect a fee 22 for conducting an inspection or test under this section . 23 Sec. 15. Section 204.10, subsection 1, Code 2020, is amended 24 to read as follows: 25 1. If a crop that is produced at a licensee’s crop site does 26 not qualify as hemp according to an official test conducted 27 pursuant to section 204.8 , but has a maximum concentration 28 not in excess of two percent delta-9 tetrahydrocannabinol on 29 a dry weight basis, the department, in consultation with the 30 department of public safety, shall order the disposal of the 31 crop by destruction at the site or if necessary require the 32 crop to be removed to another location for destruction. 33 Sec. 16. Section 204.14, subsections 2 and 3, Code 2020, are 34 amended to read as follows: 35 -8- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 8/ 11

2. a. The Except as provided in paragraph “b” , the person 1 is required to hold a certificate of crop inspection under 2 section 204.8 analysis to possess, handle, use, manufacture, 3 market, transport, deliver, or distribute hemp that has been 4 harvested under this chapter . 5 b. The person is required to hold a temporary harvest and 6 transportation permit to possess, harvest, or move hemp. 7 3. The person knowingly or intentionally does any of the 8 following: 9 a. Falsifies the temporary harvest and transportation permit 10 or certificate of crop inspection analysis . 11 b. Acquires the temporary harvest and transportation permit 12 or certificate of crop inspection analysis that the person 13 knows has been falsified. 14 Sec. 17. NEW SECTION . 204.14A Criminal offense —— 15 inhalation. 16 1. A person shall not possess, use, manufacture, market, 17 transport, deliver, or distribute harvested hemp or a hemp 18 product if the intended use of the harvested hemp or hemp 19 product is introduction into the body of a human by any method 20 of inhalation, including any of the following: 21 a. Smoke produced from combustion. 22 b. A type of article that uses a heating element, power 23 source, electronic circuit, or other electronic, chemical, or 24 mechanical process. 25 c. A device, including but not limited to a cigarette, 26 cigar, cigarillo, or pipe, regardless of whether such device 27 produces smoke or vapor. 28 2. A person who violates subsection 1 is guilty of a serious 29 misdemeanor. 30 3. This section does not apply to the extent that federal 31 law, including the federal Food, Drug, and Cosmetic Act, 32 authorizes as its intended use the introduction of harvested 33 hemp or a hemp product into the body of a human by a method of 34 inhalation. 35 -9- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 9/ 11

Sec. 18. Section 204.17, subsection 2, paragraph c, Code 1 2020, is amended to read as follows: 2 c. Local law relating to product development, product 3 manufacturing, consumer safety, or public health so long as the 4 local law is consistent with federal and state law , except as 5 provided in section 204.7, subsection 10 . 6 Sec. 19. CONTINGENT EFFECTIVE DATE. 7 1. Except as provided in subsection 2, this Act takes effect 8 on the date that chapter 204 is implemented as provided in 2019 9 Iowa Acts, chapter 130, section 18, subsection 1. 10 2. a. If the department of agriculture and land 11 stewardship, in cooperation with the department of public 12 safety, determines that the United States department of 13 agriculture must approve any amendment to an existing provision 14 or new provision enacted in this Act as part of a state plan 15 pursuant to section 204.3, the secretary of agriculture shall 16 publish a notice of that fact in the Iowa administrative 17 bulletin. The department of agriculture and land stewardship 18 shall forward a copy of the statement to the Code editor prior 19 to publication. 20 b. If a determination is made as provided in paragraph 21 “a”, the amendment or new provision enacted in this Act takes 22 effect on the publication date of the edition of the Iowa 23 administrative bulletin that includes a statement by the 24 secretary of agriculture of the department of agriculture and 25 land stewardship certifying that the United States department 26 of agriculture has approved the amendment or provision. The 27 department of agriculture and land stewardship shall forward a 28 copy of the statement to the Code editor prior to publication. 29 3. This section does not affect the implementation of 30 provisions amended or enacted in 2019 Iowa Acts, chapter 130. > 31 2. Title page, by striking lines 1 through 3 and inserting 32 < An Act relating to the regulation of hemp, including by 33 providing for testing methods and the regulation of hemp 34 products, providing penalties, making penalties applicable, and 35 -10- SF2380.3781 (1) 88 (amending this SF 2380 to CONFORM to HF 2581) da/ns 10/ 11