Senate File 2410 S-5169 Amend Senate File 2410 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 IOWA-FOALED HORSES 5 Section 1. Section 99D.22, subsection 2, paragraph b, 6 subparagraph (3), Code 2024, is amended to read as follows: 7 (3) (a) Continuous For a thoroughbred foal, continuous 8 residency from December 31 15 until the foal is inspected if 9 the mare was bred by other than an Iowa registered stallion and 10 is not bred back to an Iowa registered stallion. 11 (b) For a standardbred foal or quarter horse foal, 12 continuous residency from January 31 until the foal is 13 inspected if the mare was bred by other than an Iowa registered 14 stallion and is not bred back to an Iowa registered stallion. 15 DIVISION II 16 AGRICULTURAL MARKETING 17 Sec. 2. Section 159.20, subsection 2, Code 2024, is amended 18 to read as follows: 19 2. The department shall establish and administer a 20 choose Iowa promotional program as provided in part 2 of 21 this subchapter , in order to provide consumers a choice in 22 programs that advance the purchasing food items of agricultural 23 commodities produced on Iowa farms and Iowa products that 24 originate as an agricultural commodity commodities produced on 25 Iowa farms under this title, including chapter 187 . 26 Sec. 3. Section 159.20, subsection 3, unnumbered paragraph 27 1, Code 2024, is amended to read as follows: 28 As used in this subchapter section : 29 Sec. 4. Section 159.28, Code 2024, is amended to read as 30 follows: 31 159.28 Choose Iowa promotional program. 32 1. The department shall establish and administer a choose 33 Iowa promotional program to advertise for retail sale on a 34 retail basis a food item that originates as an agricultural 35 -1- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 1/ 19 #1.

commodity produced on an Iowa farm, and an Iowa product that 1 may include any of the following: 2 a. An agricultural commodity produced on an Iowa farm , 3 except that it may be prepared for sale by washing or packaging 4 in this state. 5 b. A product, if it is An agricultural commodity processed 6 in this state and any of its ingredients , if its components 7 originate as an agricultural commodity produced on an Iowa 8 farm. 9 2. a. The department may adopt rules further defining an 10 Iowa farm , Iowa agricultural commodity, and Iowa product; and 11 describing how an Iowa agricultural commodity originates on an 12 Iowa farm. 13 b. The department may adopt rules providing for the 14 acceptable use of ingredients originating a component that 15 originates from an agricultural commodities commodity not 16 produced on an Iowa farms farm . In adopting the rules, the 17 department may consider whether the ingredient component is 18 an incidental additive or other component that the department 19 determines is or insignificant part of an Iowa product . 20 Sec. 5. Section 159.29, subsections 1 and 5, Code 2024, are 21 amended to read as follows: 22 1. As part of the choose Iowa promotional program, the 23 department may establish a choose Iowa logo to identify a food 24 item originating as an agricultural commodity produced on an 25 Iowa farm an Iowa product . 26 5. The use of a choose Iowa logo does not do any of the 27 following: 28 a. Provide an express or implied guarantee or warranty 29 concerning the safety, fitness, merchantability, or use of a 30 food item product . 31 b. Supersede, revise, or replace a state or federal labeling 32 requirement, including but not limited to a provision in the 33 federal Fair Packaging and Labeling Act, 15 U.S.C. §1451 et 34 seq. 35 -2- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 2/ 19

c. Indicate the grade, specification, standard, or value of 1 any food item agricultural commodity, component, or product . 2 Sec. 6. Section 159.31, subsections 1, 2, and 3, Code 2024, 3 are amended to read as follows: 4 1. A choose Iowa fund is established created in the state 5 treasury under the management and control of the department. 6 2. The fund shall include moneys collected as fees by 7 the department as provided in section 159.30 187.303 , moneys 8 appropriated by the general assembly, and other moneys 9 available to and obtained or accepted by the department, 10 including moneys from public or private sources. 11 3. Moneys in the fund are appropriated to the department 12 and shall be used exclusively to carry out the provisions of 13 this part administer the programs created in this subchapter 14 as determined and directed by the department, and shall not 15 require further special authorization by the general assembly. 16 Sec. 7. Section 159.31A, Code 2024, is amended to read as 17 follows: 18 159.31A Dairy innovation fund and revitalization program. 19 1. As used in this section unless the context otherwise 20 requires: 21 a. “Financial assistance” means assistance provided only 22 from the moneys and assets legally available to the department 23 pursuant to this section and includes assistance in the form of 24 grants, low-interest loans, and forgivable loans. 25 b. “Fund” means the dairy innovation fund. 26 c. “Located in” means the place or places at which 27 a business’s operations are located and where at least 28 ninety-eight percent of the business’s employees work, or where 29 employees that are paid at least ninety-eight percent of the 30 business’s payroll work. 31 d. “Program” means the dairy innovation program. 32 2. a. The fund is created in the state treasury under 33 the control of the department and consists of any moneys 34 appropriated to the fund by the general assembly and any other 35 -3- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 3/ 19

moneys available to or obtained or accepted by the department 1 for placement in the fund. Moneys in the fund are appropriated 2 to the department to award financial assistance as provided 3 under the program. The department shall use any moneys 4 specifically appropriated for purposes of this section only for 5 the purposes of the program. 6 b. Notwithstanding section 8.33 , moneys in the fund 7 that remain unencumbered or unobligated at the close of the 8 fiscal year shall not revert but shall remain available for 9 expenditure for the purposes designated until the close of the 10 succeeding fiscal year. 11 1. A dairy innovation and revitalization program is created 12 within the department. The purpose of the program is to 13 promote the development, modernization, and expansion of this 14 state’s dairy industry. 15 3. 2. The In administering the program, the department 16 shall establish and administer the program for the purpose of 17 awarding award financial assistance to eligible businesses 18 engaged in to support projects that do one or more of the 19 following: 20 a. Expand or refurbish existing milk plants or establish a 21 new milk plant, operating pursuant to a permit issued pursuant 22 to section 192.111 or 194.3A . 23 b. Expand or refurbish existing mobile dairy processing 24 units, or establish new mobile dairy processing units. 25 c. Rent buildings, refrigeration facilities, or freezer 26 facilities, or equipment necessary to expand dairy processing 27 capacity, including mobile dairy or refrigeration units used 28 exclusively for dairy processing. 29 d. Incorporate methods and technologies that reduce farm 30 labor associated with milk production and storage, including 31 but not limited to the use of robotics and processes or systems 32 that operate using computerized equipment or machinery. 33 4. 3. The department shall establish eligibility criteria 34 for the program by rule . The eligibility criteria must include 35 -4- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 4/ 19

all of the following: 1 a. The business must be located in this state. 2 b. The business must not have been subject to any regulatory 3 enforcement action related to federal, state, or local 4 environmental, worker safety, food processing, or food safety 5 laws, rules, or regulations within the last five years. 6 c. The business must only employ individuals legally 7 authorized to work in this state. 8 d. The business must not currently be in bankruptcy. 9 e. The business must employ less than fifty individuals. 10 5. 4. A An eligible business seeking financial assistance 11 under this section shall make application to the department in 12 the manner and on forms prescribed by the department by rule . 13 6. 5. Applications for financial assistance under this 14 section shall be accepted during one or more annual application 15 periods to be determined established by the department by 16 rule . Upon reviewing and scoring all applications that are 17 received during an application period, and subject to funding 18 the availability of moneys , the department may award financial 19 assistance to eligible businesses. A financial assistance 20 award shall not exceed the amount of eligible project costs 21 included in the eligible business’s application. Priority 22 shall be given to eligible businesses whose proposed project 23 or projects under subsection 3 will 2 are most likely to do any 24 one or more of the following: 25 a. Create new jobs. 26 b. Create or expand opportunities for local small-scale milk 27 producers to market pasteurized milk and milk products under 28 private labels. 29 c. Provide greater flexibility or convenience for local 30 small-scale farmers to have milk processed. 31 d. Reduce labor associated with the on-farm production and 32 storage of milk. 33 7. 6. A An eligible business that is awarded financial 34 assistance under this section may apply for financial 35 -5- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 5/ 19

assistance under other programs administered by the authority 1 department . 2 8. The department shall adopt rules pursuant to chapter 17A 3 to administer this section . 4 Sec. 8. NEW SECTION . 187.101 Short title. 5 This chapter shall be known and may be cited as the “Choose 6 Iowa Act” . 7 Sec. 9. NEW SECTION . 187.102 Definitions. 8 As used in this chapter, unless the context otherwise 9 requires: 10 1. “Agricultural commodity” means an animal or plant, or raw 11 material originating from an animal or plant. 12 2. “Component” means an agricultural commodity that is 13 combined to form a product during processing. 14 3. “Department” means the department of agriculture and land 15 stewardship. 16 4. “Farm” means land and associated structures used to 17 produce an agricultural commodity. 18 5. a. “Financial assistance” means support provided by the 19 department to an eligible business under this chapter from 20 moneys or other assets legally available to the department. 21 b. “Financial assistance” includes any form of grant, 22 low-interest loan, or forgivable loan. 23 6. “Food item” means an agricultural commodity, or an item 24 processed from an agricultural commodity, that is fit for human 25 consumption. 26 7. “Fund” means the choose Iowa fund created in section 27 187.201. 28 8. “Horticulture item” means any of the following: 29 a. A nursery, floral, or greenhouse plant. 30 b. A product processed from a nursery, floral, or greenhouse 31 plant, including a seed, rooting, cutting, tissue culture, 32 seedling, or other propagation material. 33 9. “Located in” means the place or places at which 34 a business’s operations are located and where at least 35 -6- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 6/ 19

ninety-eight percent of the business’s employees work, or where 1 employees that are paid at least ninety-eight percent of the 2 business’s payroll work. 3 10. “Natural fiber item” means fiber originating from 4 an agricultural commodity for use in processing, including 5 manufacturing into a textile, apparel, or other similar 6 product. 7 11. “Process” means to prepare a product that includes an 8 agricultural commodity alone or as a component. 9 12. a. “Product” means an agricultural commodity that 10 in its raw or processed state is moveable at the time of its 11 retail sale. 12 b. “Product” includes but is not limited to a food item, 13 horticulture item, or natural fiber item. 14 Sec. 10. NEW SECTION . 187.103 Administration. 15 The department shall adopt all rules under chapter 17A as it 16 determines necessary or desirable to administer this chapter. 17 Sec. 11. NEW SECTION . 187.321 Value-added agricultural 18 grant program. 19 A value-added agricultural grant program is created within 20 the department. The purpose of the program is to identify, 21 evaluate, and support projects and services that add value to 22 agricultural commodities produced on Iowa farms, including by 23 supporting new technologies and marketing strategies. 24 Sec. 12. REPEAL. Sections 159.26 and 159.27, Code 2024, 25 are repealed. 26 Sec. 13. TRANSFER OF MONEYS. 27 1. Not later than June 30, 2024, the balance of the dairy 28 innovation fund created in section 159.31A shall be transferred 29 to the choose Iowa fund created in section 159.31. 30 2. Not later than June 30, 2024, any moneys appropriated 31 to the department of agriculture and land stewardship that the 32 department has not expended as required to support a value 33 added agriculture grant program shall be transferred to the 34 choose Iowa fund, including moneys appropriated in 2022 Iowa 35 -7- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 7/ 19

Acts, chapter 1147, section 12, and 2023 Iowa Acts, chapter 1 109, section 4, subsection 9. 2 Sec. 14. CODE EDITOR DIRECTIVE. 3 1. The Code editor is directed to make the following 4 transfers: 5 a. Section 159.28 to 187.301. 6 b. Section 159.29 to 187.302. 7 c. Section 159.30 to 187.303. 8 d. Section 159.31 to 187.201. 9 e. Section 159.31A to 187.311. 10 2. The Code editor shall correct internal references in the 11 Code and in any enacted legislation as necessary due to the 12 enactment of this section. 13 Sec. 15. DIRECTIONS TO CODE EDITOR —— SUBCHAPTERS AND 14 PARTS. The Code editor is directed to divide the provisions 15 of chapter 187, as amended, enacted, or transferred in this 16 division of this Act, into subchapters and parts as follows: 17 1. Subchapter I, including sections 187.101 through 18 187.103. 19 2. Subchapter II, including section 187.201. 20 3. Subchapter III, as follows: 21 a. Part 1, including sections 187.301 through 187.303. 22 b. Part 2, including section 187.311. 23 c. Part 3, including section 187.321. 24 Sec. 16. EFFECTIVE DATE. 25 1. Except as provided in subsection 2, this division of this 26 Act takes effect July 1, 2024. 27 2. The following section of this division of this Act, being 28 deemed of immediate importance, takes effect upon enactment: 29 The section that provides for the transfer of moneys to the 30 choose Iowa fund. 31 DIVISION III 32 COMMERCIAL ESTABLISHMENTS 33 Sec. 17. Section 162.2, subsection 8, Code 2024, is amended 34 to read as follows: 35 -8- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 8/ 19

8. “Commercial breeder” means a person, engaged in the 1 business of breeding dogs or cats, who sells, exchanges, or 2 leases dogs or cats in return for consideration, or who offers 3 to do so, whether or not the animals are raised, trained, 4 groomed, or boarded by the person. A person who owns or 5 harbors three or fewer breeding males or females is not a 6 commercial breeder. However, a person who breeds any number 7 of breeding male or female greyhounds for the purposes of 8 using them for pari-mutuel wagering at a racetrack as provided 9 in chapter 99D shall be considered a commercial breeder 10 irrespective of whether the person sells, leases, or exchanges 11 the greyhounds for consideration or offers to do so. 12 Sec. 18. Section 162.2B, subsection 1, paragraph b, Code 13 2024, is amended to read as follows: 14 b. For the issuance or renewal of a state license or permit, 15 one hundred seventy-five dollars. However, a commercial 16 breeder who owns, keeps, breeds, or transports a greyhound dog 17 for pari-mutuel wagering at a racetrack as provided in chapter 18 99D shall pay a different fee for the issuance or renewal of a 19 state license as provided in rules adopted by the department. 20 Sec. 19. Section 162.10A, subsection 2, Code 2024, is 21 amended to read as follows: 22 2. a. Except as provided in paragraph “b” or “c” , a 23 commercial establishment shall comply with rules that the 24 department adopts to implement subsection 1 . A commercial 25 establishment shall be regulated under this paragraph “a” 26 unless the person is a state licensee as provided in paragraph 27 “b” or a permittee as provided in paragraph “c” “b” . 28 b. A state licensee who is a commercial breeder owning, 29 breeding, transporting, or keeping a greyhound dog for 30 pari-mutuel wagering at a racetrack as provided in chapter 99D 31 may be required to comply with different rules adopted by the 32 department. 33 c. b. A permittee is not required to comply with rules 34 that the department adopts to implement a standard of care as 35 -9- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 9/ 19

provided in subsection 1 for state licensees and registrants. 1 The department may adopt rules regulating a standard of care 2 for a permittee, so long as the rules are not more restrictive 3 than required for a permittee under the Animal Welfare Act. 4 However, the department may adopt prescriptive rules relating 5 to the standard of care. Regardless of whether the department 6 adopts such rules, a permittee meets the standard of care 7 required in subsection 1 if it voluntarily complies with rules 8 applicable to state licensees or registrants. A finding by 9 the United States department of agriculture that a permittee 10 complies with the Animal Welfare Act is not conclusive when 11 determining that the permittee provides a standard of care 12 required in subsection 1 . 13 Sec. 20. Section 717B.3, subsection 2, paragraph a, 14 subparagraph (2), subparagraph divisions (a) and (b), Code 15 2024, are amended to read as follows: 16 (a) A state licensee or registrant operating pursuant to 17 section 162.10A, subsection 2 , paragraph “a” or “b” . 18 (b) A permittee operating pursuant to section 162.10A, 19 subsection 2 , paragraph “c” “b” . 20 DIVISION IV 21 GRADE “A” MILK 22 Sec. 21. Section 192.101A, Code 2024, is amended by adding 23 the following new subsections: 24 NEW SUBSECTION . 1A. “Department” means the department of 25 agriculture and land stewardship. 26 NEW SUBSECTION . 5. “Secretary” means the secretary of 27 agriculture. 28 Sec. 22. Section 192.109, Code 2024, is amended to read as 29 follows: 30 192.109 Certification of grade “A” label. 31 The department of agriculture and land stewardship shall 32 annually biennially conduct a survey and based on that survey 33 certify all milk labeled grade “A” pasteurized and grade “A” 34 raw milk for pasteurization , and, in . In the event that a 35 -10- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 10/ 19

survey shows the requirements for production, processing, and 1 distribution for such grade are not being complied with, the 2 that fact thereof shall be certified by the department to the 3 secretary of agriculture who shall proceed with the provisions 4 of section 192.107 for suspending the permit of the violator or 5 who, if the secretary did not issue such permit, shall withdraw 6 the grade “A” declared on the label. 7 Sec. 23. Section 192.111, subsection 1, paragraph a, 8 subparagraph (5), Code 2024, is amended to read as follows: 9 (5) A milk grader which must obtain a milk grader permit and 10 pay a license permit fee not greater than twenty dollars. 11 Sec. 24. Section 192.116, Code 2024, is amended to read as 12 follows: 13 192.116 Bacteriologists. 14 The department of agriculture and land stewardship may 15 employ dairy specialists or bacteriologists who shall devote 16 their full time to the improvement of sanitation in the 17 production, processing , and marketing of dairy products. 18 Said The dairy specialists and bacteriologists shall have 19 qualifications as to education and experience and such other 20 requirements as the secretary may require. 21 Sec. 25. Section 192.118, subsection 1, Code 2024, is 22 amended to read as follows: 23 1. To ensure uniformity in the tests and reporting, an 24 employee certified by the United States public health service 25 of the bacteriological laboratory of the department shall 26 annually certify, in accordance with rules adopted by the 27 department incorporating or incorporating by reference the 28 federal publication entitled “Evaluation of Milk Laboratories”, 29 all laboratories doing work in the sanitary quality of 30 milk and dairy products for public report. The approval by 31 the department shall be based on the evaluation of these 32 laboratories as to personnel training, laboratory methods 33 used, and reporting. The results on tests made by approved 34 laboratories shall be reported to the department on request, 35 -11- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 11/ 19

on forms prescribed by the secretary of agriculture , and such 1 reports may be used by the department. 2 DIVISION V 3 FERTILIZERS AND SOIL CONDITIONERS 4 Sec. 26. Section 200.3, subsection 29, Code 2024, is amended 5 to read as follows: 6 29. The term “unmanipulated manures” means any substances 7 composed primarily of excreta, plant remains, or mixtures of 8 such substances which have not been processed in any manner 9 other than dewatering . 10 Sec. 27. EFFECTIVE DATE. This division of this Act, being 11 deemed of immediate importance, takes effect upon enactment. 12 DIVISION VI 13 HEMP 14 PART A 15 HEMP REGULATIONS 16 Sec. 28. Section 204.2, subsections 1, 4, 5, 10, 12, 14, 15, 17 and 16, Code 2024, are amended by striking the subsections. 18 Sec. 29. Section 204.2, subsection 6, Code 2024, is amended 19 by striking the subsection and inserting in lieu thereof the 20 following: 21 6. “Department of health and human services” or “department” 22 means the principal central department established in section 23 7E.5, subsection 1, paragraph “i” . 24 Sec. 30. Section 204.2, subsection 9, Code 2024, is amended 25 by striking the subsection and inserting in lieu thereof the 26 following: 27 9. “Hemp” means the same as defined in section 204A.2. 28 Sec. 31. Section 204.7, subsections 1, 2, 3, 4, 5, 6, and 7, 29 Code 2024, are amended by striking the subsections. 30 Sec. 32. Section 204.8, Code 2024, is amended by striking 31 the section and inserting in lieu thereof the following: 32 204.8 Hemp —— testing requirements and certificate of 33 analysis. 34 For purposes of this chapter, requirements for testing hemp 35 -12- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 12/ 19

and the issuance of a certificate of analysis for hemp are 1 governed by chapter 204A. 2 Sec. 33. Section 204.12, subsection 2, Code 2024, is amended 3 by striking the subsection. 4 Sec. 34. Section 204.14, subsections 2 and 3, Code 2024, are 5 amended to read as follows: 6 2. a. Except as provided in paragraph “b” , the The person 7 is required to hold a certificate of analysis to possess, 8 handle, use, manufacture, market, transport, deliver, or 9 distribute hemp that has been harvested under this chapter . 10 b. The person is required to hold a temporary harvest and 11 transportation permit to possess, harvest, or move hemp. 12 3. The person knowingly or intentionally does any of the 13 following: 14 a. Falsifies the temporary harvest and transportation permit 15 or a certificate of analysis. 16 b. Acquires the temporary harvest and transportation permit 17 or a certificate of analysis that the person knows has been 18 falsified. 19 Sec. 35. Section 204.15, Code 2024, is amended by striking 20 the section and inserting in lieu thereof the following: 21 204.15 Negligent violation program. 22 A USDA licensee who is participating in or has successfully 23 completed the program for negligent violations as provided in 7 24 C.F.R. §990.29 shall not be subject to a criminal offense under 25 chapter 124 or 453B for committing an act that otherwise would 26 constitute the offense. 27 Sec. 36. Section 204.17, subsection 1, Code 2024, is amended 28 by striking the subsection. 29 Sec. 37. Section 204.17, subsection 6, Code 2024, is amended 30 by striking the subsection and inserting in lieu thereof the 31 following: 32 6. Nothing in this chapter shall be construed or applied 33 to affect a statute or rule which applies to an article under 34 this chapter, if it would apply in the same manner as to other 35 -13- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 13/ 19

articles subject to the same general regulation in other 1 chapters. 2 Sec. 38. NEW SECTION . 204A.2 Definitions. 3 As used in this chapter, unless the context otherwise 4 requires: 5 1. “Acceptable hemp THC level” means the same as defined in 6 7 C.F.R. §990.1. 7 2. “Cannabis” means the same as defined in 7 C.F.R. §990.1. 8 3. “Controlled substance” means the same as defined in 9 section 124.101. 10 4. “Delta-9 tetrahydrocannabinol” or “THC” means the same as 11 defined in 7 C.F.R. §990.1. 12 5. “Department” means the department of agriculture and land 13 stewardship. 14 6. “Federal hemp law” means 7 U.S.C. §1639o, 1639q, and 15 1639r, together with the domestic hemp production program as 16 provided in 7 C.F.R. pt. 990. 17 7. “Hemp” means the same as defined in 7 C.F.R. §990.1. 18 8. “Local law enforcement agency” means an office of county 19 sheriff or a municipal police department. 20 9. “Lot” means the same as defined in 7 C.F.R. §990.1. 21 10. “Total THC” means the same as defined in 7 C.F.R. 22 §990.1. 23 11. “USDA licensee” means the same as defined in 7 C.F.R. 24 §990.1. 25 Sec. 39. NEW SECTION . 204A.3 Administration —— rules. 26 The department may adopt rules that it deems necessary to 27 administer and enforce this chapter. The rules shall comply 28 with the federal hemp law, or requirements of the United States 29 department of agriculture acting under the federal hemp law. 30 Sec. 40. NEW SECTION . 204A.4 Criminal offenses. 31 A criminal offense involving hemp includes but is not 32 limited to production, use, harvest, transportation, delivery, 33 distribution, or sale of cannabis as a controlled substance 34 except as otherwise provided in this chapter and chapter 204. 35 -14- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 14/ 19

Sec. 41. NEW SECTION . 204A.5 Hemp production. 1 1. Except to the extent otherwise provided in the federal 2 hemp law, or by the United States department of agriculture 3 acting under the federal hemp law, this chapter does not affect 4 the powers and duties of the state, including the department of 5 public safety or a local law enforcement agency, to investigate 6 or prosecute a person for a violation of a criminal offense, 7 including an act in violation of chapter 124 or 453B. 8 2. a. Except to the extent otherwise provided in the 9 federal hemp law, or by the United States department of 10 agriculture acting under the federal hemp law, the department 11 of public safety may require a USDA licensee to submit to the 12 department of public safety any of the following: 13 (1) A notice that the United States department of 14 agriculture’s lot includes cannabis that exceeds the acceptable 15 hemp THC level and a description of the noncompliant plant’s 16 disposal as required in 7 C.F.R. §990.27. 17 (2) A corrective action plan filed with the United States 18 department of agriculture to cure the negligent violation as 19 required in 7 C.F.R. §990.27. 20 (3) A notice of the United States department of 21 agriculture’s license suspension under 7 C.F.R. §990.30 or 22 United States department of agriculture’s license revocation 23 under 7 C.F.R. §990.31. 24 (4) A report or record required to be submitted to 25 the United States department of agriculture as part of 26 participation in the domestic hemp program as provided in 7 27 C.F.R. §990.32. 28 b. Any data or business information designated as 29 confidential by the United States department of agriculture 30 under this subsection and received by a government body as 31 defined in section 22.1 shall be a confidential record under 32 chapter 22 and subject to any restrictions imposed by the 33 United States department of agriculture. 34 Sec. 42. NEW SECTION . 204A.6 Hemp transportation. 35 -15- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 15/ 19

Except to the extent otherwise provided in the federal 1 hemp law, including 7 C.F.R. §990.25, or by the United States 2 department of agriculture acting under the federal hemp law, a 3 person transporting hemp seed or harvested hemp in this state, 4 on an intrastate or interstate basis, is subject to all of the 5 following public safety requirements: 6 1. If the person is licensed under 7 C.F.R. ch. 990, subpt. 7 B or C, the person must carry a copy of that license. 8 2. The person must carry a certificate of analysis. 9 3. The person must carry a bill of lading under all of the 10 following circumstances: 11 a. The person is in possession of the hemp in transit to 12 transfer ownership. 13 b. The person is delivering cannabis seed for planting and 14 the seed is not of the licensee’s own production. 15 c. A person brings hemp produced in another state into or 16 through this state. 17 Sec. 43. NEW SECTION . 204A.9 Statutory construction. 18 1. Nothing in this chapter shall be construed or applied to 19 be less stringent than required under the federal hemp law. 20 2. Nothing in this chapter shall be construed or applied 21 to be in conflict with applicable federal law and related 22 regulations. 23 3. Nothing in this chapter shall be construed or applied to 24 infringe upon the ability of the department of public safety 25 or a local law enforcement agency to obtain a search warrant 26 issued by a court, or enter onto any premises in a manner 27 consistent with the laws of this state and the United States, 28 including Article I, section 8, of the Constitution of the 29 State of Iowa, or the fourth amendment to the Constitution of 30 the United States. 31 4. Nothing in this chapter shall be construed or applied 32 to affect a statute or rule which applies to an article under 33 this chapter, if it would apply in the same manner as to other 34 articles subject to the same general regulation in other 35 -16- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 16/ 19

chapters. 1 Sec. 44. REPEAL. Sections 204.3, 204.4, 204.5, 204.6, 2 204.9, 204.10, 204.11, 204.13, and 204.16, Code 2024, are 3 repealed. 4 Sec. 45. CODE EDITOR DIRECTIVE. 5 1. The Code editor is directed to make the following 6 transfers: 7 a. Section 204.1 to section 204A.1. 8 b. Section 204.14 to section 204A.7. 9 c. Section 204.15 to section 204A.8. 10 2. The Code editor shall correct internal references in the 11 Code and in any enacted legislation as necessary due to the 12 enactment of this section. 13 PART B 14 CORRESPONDING CHANGES 15 Sec. 46. Section 124.201A, subsection 4, Code 2024, is 16 amended to read as follows: 17 4. Any cannabis-derived investigational product or 18 cannabis-derived product approved as a prescription drug 19 medication by the United States food and drug administration 20 shall not be considered marijuana or cannabimimetic agents, 21 both as defined in section 124.204 , tetrahydrocannabinols 22 as used in section 124.204, subsection 4 , paragraph “u” , 23 unnumbered paragraph 1, or hemp as defined in section 204.2 24 204A.2 . 25 Sec. 47. Section 124.204, subsection 7, paragraph a, Code 26 2024, is amended to read as follows: 27 a. Hemp as defined in section 204.2 204A.2, including hemp 28 that is or was produced in this state, or was produced in 29 another state , in accordance with the provisions of chapter 204 30 the federal hemp law as defined in chapter 204A, with a maximum 31 delta-9 tetrahydrocannabinol concentration that does not exceed 32 three-tenths of one percent on a dry weight basis. 33 Sec. 48. Section 124.401, subsection 6, paragraph a, Code 34 2024, is amended by striking the paragraph and inserting in 35 -17- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 17/ 19

lieu thereof the following: 1 a. Hemp that is hemp seed, including hemp seed delivered 2 for planting at a lot by a USDA licensee or hemp that is or was 3 produced at a lot by a USDA licensee, in accordance with the 4 provisions of the federal hemp law, as those terms are defined 5 in chapter 204A. 6 Sec. 49. Section 124.401G, Code 2024, is amended by striking 7 the section and inserting in lieu thereof the following: 8 124.401G Iowa hemp Act —— negligent violation program. 9 Notwithstanding any provision of this chapter to the 10 contrary, a person shall not be guilty of an offense under 11 this chapter, including under section 124.401 or 124.410, 12 for producing, possessing, using, harvesting, handling, 13 manufacturing, marketing, transporting, delivering, or 14 distributing the plant cannabis, to the extent that the person 15 is a USDA licensee acting in accordance with the federal hemp 16 law, as those terms are defined in chapter 204A. 17 Sec. 50. Section 124.506, subsection 5, Code 2024, is 18 amended by striking the subsection. 19 Sec. 51. Section 317.1D, Code 2024, is amended to read as 20 follows: 21 317.1D Exemption —— Iowa hemp Act. 22 This chapter does not apply to a plant or any part of the 23 plant qualifying as hemp, if the hemp is produced on a crop 24 site regulated under chapter 204 on the USDA licensee’s lot 25 in accordance with the federal hemp law, as those terms are 26 defined in chapter 204A . 27 Sec. 52. Section 453B.17, subsection 1, Code 2024, is 28 amended by striking the subsection and inserting in lieu 29 thereof the following: 30 1. Hemp as defined in section 204A.2, including hemp seed 31 delivered for planting at a lot by a USDA licensee or hemp that 32 is or was produced at a lot by a USDA licensee, in accordance 33 with the provisions of the federal hemp law, as those terms are 34 defined in chapter 204A. 35 -18- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 18/ 19

Sec. 53. Section 453B.18, Code 2024, is amended by striking 1 the section and inserting in lieu thereof the following: 2 453B.18 Exemption —— Iowa hemp Act —— negligent violation 3 program. 4 Notwithstanding any provision of this chapter to the 5 contrary, a person shall not be guilty of an offense under this 6 chapter for producing or possessing the plant cannabis, to the 7 extent that the person is a USDA licensee acting in accordance 8 with the federal hemp law, as those terms are defined in 9 chapter 204A. 10 Sec. 54. Section 716.14, subsection 1, paragraph b, Code 11 2024, is amended to read as follows: 12 b. “Agricultural crop” means a plant produced for food, 13 animal feed, fiber, oil, or fuel if the plant is classified 14 as a forage or cereal plant, including but not limited to 15 alfalfa, barley, buckwheat, corn, flax, forage, hemp as defined 16 in section 204.2 204A.2 , millet, oats, popcorn, rye, sorghum, 17 soybeans, sunflowers, wheat, and grasses used for forage or 18 silage. A plant which is a noxious weed pursuant to section 19 317.1A shall not be considered an agricultural crop unless the 20 plant is produced as a research crop. 21 PART C 22 EFFECTIVE DATE 23 Sec. 55. EFFECTIVE DATE. This division of this Act takes 24 effect December 31, 2024. > 25 2. Title page, by striking lines 1 through 3 and 26 inserting < An Act relating to agriculture, by providing 27 for the administration of programs and regulations, making 28 appropriations, providing penalties, and including effective 29 date provisions. > 30 ______________________________ TOM SHIPLEY -19- SF 2410.4192 (3) 90 (amending this SF 2410 to CONFORM to HF 2641) da/ns 19/ 19 #2.