Senate File 599 - Introduced SENATE FILE 599 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 279) 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 for 3 fees, including penalties, and providing implementation and 4 effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1744SV (2) 88 da/rn

S.F. 599 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 21 8 U.S.C. §§802 and 812, including as those sections are amended 9 in §12619 of the federal hemp law or as that phrase is defined 10 in Tit. IV, subtitle 1 of this Code. 11 2. “Conviction” means a conviction for an indictable offense 12 and includes a guilty plea, deferred judgment from the time of 13 entry of the deferred judgment until the time the defendant is 14 discharged by the court without entry of judgment, or other 15 finding of guilt by a court of competent jurisdiction. 16 3. “Crop site” or “site” means a single contiguous parcel 17 of agricultural land suitable for the planting, growing, or 18 harvesting of hemp, if the parcel does not exceed forty acres. 19 4. “Department” means the department of agriculture and land 20 stewardship. 21 5. “Federal hemp law” means that part of Tit. X of the 22 Agriculture Improvement Act of 2018, Pub. L. No. 115-334, that 23 authorizes hemp production according to a state plan approved 24 by the United States department of agriculture, as provided in 25 §10113 of that Act, amending the Agricultural Marketing Act 26 of 1946, 7 U.S.C. §1621 et seq., including by adding §§297A 27 through 297E. 28 6. “Hemp” means a plant that meets the definition of hemp 29 under federal hemp law, or another plant of the same genus but 30 only to the extent allowed under federal hemp law. 31 7. “Hemp license” or “license” means a hemp license issued 32 pursuant to section 204.4. 33 8. a. “Hemp product” means an item derived from or made by 34 processing hemp or parts of hemp. 35 -1- LSB 1744SV (2) 88 da/rn 1/ 15

S.F. 599 b. “Hemp product” does not include hemp seed that is capable 1 of germination. 2 9. “Law enforcement agency” means the department of public 3 safety, an office of county sheriff, or a municipal police 4 department. 5 10. “Licensee” means a person who obtains a hemp license 6 from the department under this chapter. 7 Sec. 3. NEW SECTION . 204.3 State plan. 8 1. The department shall prepare a state plan to be 9 submitted to the United States secretary of agriculture under 10 the federal hemp law. Upon approval of the state plan, the 11 department shall assume primary regulatory authority over the 12 production of hemp in this state as provided in this chapter. 13 The department may submit any number of amended state plans 14 to the United States secretary of agriculture or any number 15 of amendments to a state plan approved by the United States 16 secretary of agriculture. 17 2. The department shall prepare the state plan, any amended 18 state plan, or amendment to an approved state plan, by adopting 19 rules pursuant to chapter 17A. The department may adopt the 20 rules on an emergency basis as provided in section 17A.4, 21 subsection 3, and section 17A.5, subsection 2, and the rules 22 shall be effective immediately upon filing unless a later date 23 is specified in the rules. 24 Sec. 4. NEW SECTION . 204.4 Hemp license —— requirements. 25 1. The department shall establish and administer a process 26 to receive, evaluate, and approve or disapprove applications 27 for a hemp license. 28 2. The department shall prepare and publish one or more 29 hemp license application forms. A completed application form 30 submitted to the department shall contain all of the following: 31 a. The applicant’s full name and residence address. 32 b. A legal description and map of each crop site where the 33 applicant proposes to produce the hemp. 34 c. The number of crop acres to be used for hemp production. 35 -2- LSB 1744SV (2) 88 da/rn 2/ 15

S.F. 599 d. The name of the hemp variety. 1 e. Any other information required by the department in order 2 to administer and enforce the provisions of this chapter. 3 3. The department may do all of the following: 4 a. Require that all or some hemp licenses expire on the same 5 date. 6 b. Provide a different application form and requirements 7 relating to the submission, evaluation, and approval or 8 disapproval of an application for a renewed hemp license 9 consistent with federal law. 10 4. An applicant shall not be issued a hemp license unless 11 the applicant agrees to comply with all terms and conditions 12 relating to the department’s regulation of a licensee. 13 5. A person may hold any number of hemp licenses at the same 14 time. However, the person shall not hold a legal or equitable 15 interest in a licensed crop site, if the total number of acres 16 of all licensed crop sites in which the person holds all such 17 interests equals more than forty acres. 18 6. An initial hemp license expires one year from the date 19 of issuance and may be issued on a renewal basis annually. The 20 department may require that a licensee apply for an amended or 21 new initial license if information contained in the existing 22 application is no longer accurate or is incomplete. 23 7. Information received on an application form shall be 24 maintained by the department for not less than three years. 25 8. The department shall disapprove the application of a 26 person for good cause, which shall include, but is not limited 27 to, any of the following: 28 a. The conviction of a felony within the prior ten years or 29 any conviction of a controlled substance offense within that 30 same period, regardless of whether either type of conviction is 31 in this state or another state. 32 b. The revocation of a hemp license under section 204.11, 33 or the revocation of a license, permit, registration, or other 34 authorization to produce hemp in any other state. 35 -3- LSB 1744SV (2) 88 da/rn 3/ 15

S.F. 599 9. A hemp license shall be suspended or revoked as provided 1 in section 204.11. 2 Sec. 5. NEW SECTION . 204.5 Hemp fees. 3 1. The department shall impose, assess, and collect the 4 following hemp fees: 5 a. A license fee which shall be paid by a person being 6 issued a hemp license as provided in section 204.4. 7 b. An inspection fee which shall be paid by a licensee for 8 an inspection of a licensee’s crop site as provided in section 9 204.8. 10 2. a. For each hemp license, the license fee shall be 11 imposed on an interim basis until June 30, 2022. The amount of 12 the license fee shall not be more than the following: 13 (1) Five hundred dollars plus five dollars per acre, for 14 each site that is five acres or less. 15 (2) Seven hundred and fifty dollars, plus five dollars per 16 acre, for each site that is more than five acres but less than 17 ten acres. 18 (3) One thousand dollars plus five dollars per acre, for 19 each site is more than ten acres. 20 b. For an annual inspection, an inspection fee shall be 21 imposed on an interim basis until June 30, 2022. The amount 22 of the inspection fee shall not be more than one thousand 23 dollars. The department, during the interim period, may charge 24 an additional inspection fee of not more than one thousand 25 dollars for each inspection of a licensee’s crop site, if the 26 inspection is conducted upon the request of the licensee. 27 c. This subsection is repealed on July 1, 2022. 28 3. a. The department shall adopt rules to establish hemp 29 fees for the issuance of a hemp license pursuant to section 30 204.4. 31 b. The department shall adopt rules to establish hemp fees 32 for the annual inspection of a licensee’s crop site pursuant 33 to section 204.8. The rules may provide that the department 34 charge an additional inspection fee for each inspection of a 35 -4- LSB 1744SV (2) 88 da/rn 4/ 15

S.F. 599 licensee’s crop site, if the inspection is conducted upon the 1 request of the licensee. 2 c. The total amount of hemp fees collected by the 3 department pursuant to this section shall not be more than the 4 department’s estimate of the total amount of revenues necessary 5 to administer and enforce the provisions of this chapter based 6 on the expected revenue collected from the hemp fees and the 7 costs to be incurred by the department in administering and 8 enforcing the provisions of this chapter for the succeeding 9 twelve-month period. 10 d. The department may establish different rates for any 11 category of hemp fees based on criteria determined relevant by 12 the department, which may include the number of acres of the 13 crop site and the type of hemp license issued. 14 e. (1) The rules shall first take effect immediately after 15 the repeal of subsection 2. 16 (2) This paragraph “e” is repealed immediately after the 17 rules described in this subsection take effect. 18 4. The license fee and any annual inspection fee shall 19 be collected by the department at the time the hemp license 20 application is submitted. 21 5. Any hemp fee collected by the department under this 22 section shall be deposited in the hemp fund established 23 pursuant to section 204.6. 24 6. The department may refund all or any part of a hemp fee 25 collected under this section. 26 Sec. 6. NEW SECTION . 204.6 Hemp fund. 27 1. A hemp fund is established in the state treasury under 28 the management and control of the department. 29 2. The hemp fund shall include moneys collected by the 30 department from hemp fees imposed and assessed under section 31 204.5 and moneys appropriated by the general assembly for 32 deposit in the hemp fund. The hemp fund may include other 33 moneys available to and obtained or accepted by the department, 34 including moneys from public or private sources. 35 -5- LSB 1744SV (2) 88 da/rn 5/ 15

S.F. 599 3. Moneys in the hemp fund are appropriated to the 1 department and shall be used exclusively to carry out the 2 responsibilities conferred upon the department under this 3 chapter as determined and directed by the department, and 4 shall not require further special authorization by the general 5 assembly. 6 4. a. Notwithstanding section 12C.7, interest or earnings 7 on moneys in the hemp fund shall be credited to the hemp fund. 8 b. Notwithstanding section 8.33, moneys credited to the 9 hemp fund that remain unexpended or unobligated at the end of a 10 fiscal year shall not revert to any other fund. 11 Sec. 7. NEW SECTION . 204.7 Regulations. 12 1. The department may adopt rules regulating the 13 production, handling, transporting, or marketing of hemp 14 produced on a licensee’s crop site. The rules may provide 15 different requirements that apply to nonseed parts of hemp and 16 hemp seed, including the certification of hemp seed. 17 2. a. Notwithstanding any other provision of law to 18 the contrary, hemp that is or was produced in this state in 19 compliance with this chapter is in accordance with federal hemp 20 law and is not a controlled substance. 21 b. Notwithstanding any other provision of law to the 22 contrary, hemp that is or was produced in another state in 23 accordance with federal hemp law is not a controlled substance. 24 3. Nothing in this chapter prohibits a person from 25 producing, handling, transporting, marketing, or processing a 26 hemp product. 27 Sec. 8. NEW SECTION . 204.8 Annual inspection and official 28 test. 29 1. The department shall conduct an annual inspection of 30 a licensee’s crop site to determine if the crop produced at 31 the site qualifies as hemp under this section. The annual 32 inspection shall include obtaining a sample of plants that 33 are part of the crop and providing for an official test of 34 that sample. The inspection shall be conducted as provided in 35 -6- LSB 1744SV (2) 88 da/rn 6/ 15

S.F. 599 section 204.9. 1 2. A licensee shall deliver a notice to the department 2 stating the expected harvest date for the crop produced at the 3 licensee’s crop site. The department must receive the notice 4 at least thirty days prior to the expected harvest date. The 5 department shall conduct an inspection of the site within 6 thirty days prior to the actual harvest date. The licensee 7 shall not harvest any portion of a crop produced at the site 8 unless the department notifies the licensee that the crop 9 qualifies as hemp pursuant to the results of an official test. 10 3. The official test shall be a composite test of the 11 plants obtained by the department from the licensee’s crop site 12 during an inspection and shall be conducted by the laboratory 13 designated by the department. The sample must have maximum 14 concentration of delta-9 tetrahydrocannabinol that does not 15 exceed three-tenths of one percent on a dry weight basis. The 16 laboratory’s official test results indicating that a sample 17 exceeds that percentage shall be conclusive evidence that the 18 crop produced at a site does not qualify as hemp. 19 Sec. 9. NEW SECTION . 204.9 Right of access. 20 1. The department, including an authorized inspector, 21 employee, or agent of the department, may enter onto a crop 22 site during reasonable hours to determine whether a licensee 23 is acting in compliance with the provisions of this chapter. 24 The department may also enter into any structure, other than a 25 dwelling, if the structure is located on or in close proximity 26 to the crop site, and the use of such structure is directly 27 related to the planting, growing, or harvesting of hemp, 28 including but not limited to a barn, machine shed, greenhouse, 29 or storage crib. 30 2. The department may obtain a sample of plants that are 31 part of the crop and provide for an official test of that 32 sample in the same manner as provided in section 204.8 even 33 though the department is not conducting an annual inspection. 34 The department shall not assess or collect a fee, other than a 35 -7- LSB 1744SV (2) 88 da/rn 7/ 15

S.F. 599 hemp fee as provided in section 204.5. 1 3. A person shall not prevent the department from 2 administering this section by any means, including but not 3 limited to any act, including a refusal to allow entry, 4 misrepresentation, omission, or concealment of facts. 5 4. The licensee shall not harvest any portion of a crop 6 produced at the crop site if the department has been prevented 7 from accessing the site under this section. 8 Sec. 10. NEW SECTION . 204.10 Order of disposal. 9 1. If a crop that is produced at a licensee’s crop site 10 does not qualify as hemp according to an official test 11 conducted pursuant to section 204.8, the department shall order 12 the disposal of the crop by destruction at the site or if 13 necessary require the crop to be removed to another location 14 for destruction. 15 2. The department may request assistance from a law 16 enforcement agency necessary to carry out this section. The 17 department upon request shall deliver any sample of the crop 18 to the law enforcement agency. 19 3. The licensee shall pay for all actual and reasonable 20 costs of the destruction. If the department assumes any of the 21 amount of costs, it may charge that amount to the licensee. 22 If the licensee fails to reimburse any of that amount to the 23 department, the department may report the amount to the county 24 treasurer. The amount shall be placed upon the tax books, 25 and collected with interest and penalties after due, in the 26 same manner as other unpaid property taxes. The county shall 27 reimburse the department within thirty days from the collection 28 of the property taxes. 29 4. To the extent allowed by applicable federal law, the 30 department may provide for the disposal of the mature stalks 31 of the crop confiscated by the department for the licensee’s 32 on-farm use and at the licensee’s expense. 33 Sec. 11. NEW SECTION . 204.11 Disciplinary action. 34 1. The department may suspend or revoke a hemp license 35 -8- LSB 1744SV (2) 88 da/rn 8/ 15

S.F. 599 obtained under section 204.4 by a person who does any of the 1 following: 2 a. Provides false or misleading information to the 3 department under this chapter, including by submitting a false 4 application. 5 b. Fails to comply with or violates any provision of this 6 chapter, including a rule adopted by the department or a 7 condition of an application for the issuance of a hemp license. 8 c. Fails to comply with an order issued by the department 9 under this chapter. 10 2. The suspension or revocation of a hemp license is in 11 addition to an order of disposal under section 204.10; the 12 imposition of a civil penalty under section 204.12, subject 13 to the provisions of section 204.14; or the imposition of any 14 other civil or criminal penalty authorized under state law, 15 subject to the provisions of section 204.14. 16 Sec. 12. NEW SECTION . 204.12 Civil penalties. 17 1. A person who violates a provision of this chapter is 18 subject to a civil penalty of not less than five hundred 19 dollars and not more than two thousand five hundred dollars. 20 The department shall assess and collect the civil penalty. 21 Each day that a continuing violation occurs may be considered a 22 separate offense. 23 2. Notwithstanding subsection 1, a civil penalty shall not 24 be assessed against a licensee for a violation that results 25 in the disposal of the licensee’s crop under section 204.10, 26 if the department obtains a sample of the crop produced on 27 the licensee’s crop site and the official test results of the 28 sample conducted pursuant to section 204.8 indicates a maximum 29 concentration of delta-9 tetrahydrocannabinol not in excess of 30 two percent on a dry weight basis. 31 3. All civil penalties collected under this section shall be 32 deposited into the general fund of the state. 33 Sec. 13. NEW SECTION . 204.13 Injunctive relief. 34 The department or the attorney general acting on behalf of 35 -9- LSB 1744SV (2) 88 da/rn 9/ 15

S.F. 599 the department may apply to the district court for injunctive 1 relief in order to restrain a person from acting in violation 2 of this chapter. In order to obtain injunctive relief, the 3 department shall not be required to post a bond or prove the 4 absence of an adequate remedy at law unless the court for 5 good cause otherwise orders. The court may order any form 6 of prohibitory or mandatory relief that is appropriate under 7 principles of equity, including but not limited to issuing a 8 temporary or permanent restraining order. 9 Sec. 14. NEW SECTION . 204.14 Negligent violations. 10 1. a. The department may find that a licensee has 11 negligently violated a provision of this chapter by doing any 12 of the following: 13 (1) Completing an application for a hemp license without 14 providing a legal description of the crop site pursuant to 15 section 204.4. 16 (2) Failing to renew a hemp license or obtain a license for 17 a new crop site pursuant to section 204.4. 18 (3) Producing a crop on the licensee’s crop site with a 19 maximum concentration of delta-9 tetrahydrocannabinol in excess 20 of three-tenths of one percent according to the results of an 21 official test conducted of a sample obtained from the crop site 22 pursuant to section 204.8. 23 b. In making its finding under paragraph “a” , the 24 department must determine that the licensee acted with a 25 culpable mental state of negligence. It is conclusively 26 presumed that a licensee acted with a culpable mental state 27 greater than negligence, if the department obtains a sample 28 of a crop produced on the licensee’s crop site and the 29 official test results of the sample conducted pursuant to 30 section 204.8 indicates a maximum concentration of delta-9 31 tetrahydrocannabinol in excess of two percent on a dry weight 32 basis. 33 c. If the department determines a licensee violated this 34 chapter with a culpable mental state greater than negligence, 35 -10- LSB 1744SV (2) 88 da/rn 10/ 15

S.F. 599 the department shall immediately report the licensee to the 1 county attorney and the attorney general, who shall take action 2 as the facts and circumstances warrant. The department shall 3 also report the licensee to the United States attorney general 4 to the extent required by the federal hemp law. 5 2. The department may establish a negligent violation 6 program. The purpose of the program is to allow a 7 participating licensee who has negligently violated a provision 8 of this chapter as described in subsection 1 to comply with a 9 corrective plan established by the department to correct each 10 negligent violation, including by providing for all of the 11 following: 12 a. A reasonable date, established by the department, for the 13 licensee to correct any cause for the violation. 14 b. That the licensee periodically report to the department 15 evidence that the licensee is complying with the requirements 16 of this chapter. The licensee shall submit a report to the 17 department for at least two years from the date that the 18 licensee first participated in the program. 19 3. A licensee who is participating in the negligent 20 violation program shall not be subject to criminal enforcement 21 action by the state, or the imposition of criminal or civil 22 penalties, including as provided in section 204.12. 23 4. A licensee who negligently violates a provision of this 24 chapter more than three times in any five-year period shall 25 be ineligible to be issued a hemp license pursuant to section 26 204.4 for a period of five years beginning on the date of the 27 third violation. 28 5. A licensee convicted of a felony relating to a controlled 29 substance before, on, or after the implementation date of this 30 chapter shall be ineligible to produce hemp under this chapter 31 for a ten-year period following the date of conviction. 32 6. Any person who materially falsifies any information 33 contained in an application to participate in the negligent 34 violation program shall be ineligible to participate in the 35 -11- LSB 1744SV (2) 88 da/rn 11/ 15

S.F. 599 program. 1 Sec. 15. NEW SECTION . 204.15 Statutory construction. 2 Nothing in this chapter shall be construed or applied to be 3 less stringent than required under the federal hemp law. 4 Sec. 16. CONTINGENT IMPLEMENTATION. 5 1. Except as provided in subsection 2, the provisions of 6 chapter 204, as enacted in this division of this Act, shall 7 only be implemented, including administered and enforced, by 8 the department of agriculture and land stewardship beginning on 9 the publication date of the edition of the Iowa administrative 10 bulletin that includes a statement by the secretary of 11 agriculture of the department of agriculture and land 12 stewardship certifying that the United States department of 13 agriculture has approved a state plan as described in section 14 204.3, as enacted in this division of this Act. The department 15 shall forward a copy of the statement to the Iowa Code editor 16 prior to publication. 17 2. Section 204.3 and this subsection shall be implemented on 18 the effective date of this Act. 19 Sec. 17. EFFECTIVE DATE. This division of this Act, being 20 deemed of immediate importance, takes effect upon enactment. 21 DIVISION II 22 COORDINATING AMENDMENTS 23 Sec. 18. Section 189.1, subsection 1, Code 2019, is amended 24 to read as follows: 25 1. “Article” means food, commercial feed, agricultural seed, 26 commercial fertilizer, drug, pesticide, hemp, and paint, in the 27 sense in which they are defined in the various provisions of 28 this subtitle. 29 Sec. 19. NEW SECTION . 317.1D Hemp production. 30 This chapter does not apply to a plant or any part of the 31 plant qualifying as hemp, if the hemp is produced on a crop 32 site regulated by the department of agriculture and land 33 stewardship under chapter 204. 34 Sec. 20. NEW SECTION . 453B.17 Exception —— hemp. 35 -12- LSB 1744SV (2) 88 da/rn 12/ 15

S.F. 599 1. This chapter does not apply to a plant or any part of 1 the plant qualifying as hemp, if the hemp is produced or was 2 produced on a crop site in compliance with chapter 204 or the 3 hemp was produced in another state in accordance with federal 4 hemp law as defined in section 204.2. 5 2. Nothing in this chapter applies to a person producing, 6 handling, transporting, marketing, or processing a hemp product 7 as defined in section 204.2. 8 Sec. 21. CONTINGENT EFFECTIVE DATE. The amendment to 9 section 189.1, subsection 1, and new sections 317.1D and 10 453B.17, as enacted in this division of this Act, shall become 11 effective upon the date of implementation of chapter 204 as 12 described in subsection 1 of the section providing for the 13 contingent implementation of that chapter, as enacted in 14 division I of this Act. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 OVERVIEW. This bill creates the “Iowa Hemp Act” under Title 19 V, subtitle 4, of the Code regulating persons operating under 20 licenses issued by the department of agriculture and land 21 stewardship (DALS). The bill creates Code chapter 204 and 22 authorizes the production of hemp under the DALS’ regulatory 23 supervision when acting under the provisions of the Agriculture 24 Improvement Act of 2018, Pub. L. No. 115-334 (2018 Farm Bill). 25 The 2018 Farm Bill defines hemp as a species of Cannabis having 26 a maximum concentration of delta-9 tetrahydrocannabinol (THC) 27 that does not exceed three-tenths of 1 percent. The 2018 Farm 28 Bill authorizes states to assume primary regulatory authority 29 over the production of hemp by submitting a state plan (plan) 30 for approval by the United States department of agriculture 31 (USDA) which has 60 days to approve, disapprove, or amend the 32 plan. The 2018 Farm Bill provides that state regulations may 33 be more but not less stringent than the federal regulations. 34 HEMP LICENSES AND FEES. DALS is required to accept and 35 -13- LSB 1744SV (2) 88 da/rn 13/ 15

S.F. 599 approve or disapprove applications for the issuance of a hemp 1 license (license) on a one-year basis subject to renewal. A 2 license covers a crop site which cannot exceed 40 contiguous 3 acres. DALS may issue any number of licenses to a single 4 applicant. However, a person is prohibited from holding more 5 than 40 crop sites under all current licenses issued to the 6 person. DALS must assess and collect hemp fees (fees) for the 7 issuance of a license and for an annual fall inspection until 8 June 30, 2022. After that date, fees are to be established by 9 rule based on the amount required to administer and enforce the 10 provisions of the bill. Moneys collected from the fees are to 11 be deposited into a hemp fund (fund) which are appropriated 12 to DALS for purposes of administering and enforcing these 13 provisions. 14 REGULATIONS. DALS may adopt rules regulating the 15 production, handling, transporting, or marketing of hemp which 16 was produced on a licensee’s crop site. In addition, hemp 17 produced on a licensed crop site under new Code chapter 204 or 18 produced in another state under the federal hemp law is not a 19 controlled substance. Generally, production, possession, or 20 distribution of a controlled substance is a criminal offense. 21 The bill provides that a person is not prohibited from 22 producing, handling, transporting, marketing, or processing a 23 hemp product. DALS is required to conduct an annual inspection 24 of a licensee’s crop site and obtain a sample for official 25 testing by a laboratory designated by DALS. In addition to 26 an annual inspection, DALS may enter onto a crop site during 27 reasonable hours to determine whether a licensee is acting in 28 compliance with the bill’s requirements and may obtain a sample 29 of the crop for official testing. 30 ENFORCEMENT AND PENALTIES. DALS may order the disposal of 31 a crop produced on a licensee’s crop site if official test 32 results indicate that a crop does not qualify as hemp. The 33 disposal, including the crop’s destruction, must be at the 34 licensee’s expense. DALS may also suspend or revoke a license 35 -14- LSB 1744SV (2) 88 da/rn 14/ 15

S.F. 599 if the licensee fails to comply with a requirement of the bill. 1 A person who violates a provision of the bill is subject to a 2 civil penalty of not less than $500 and not more than $2,500. 3 DALS or the attorney general may apply to district court to 4 obtain an injunction to enforce the bill’s provisions. DALS 5 may establish a program to correct certain violations committed 6 negligently by a licensee including producing a crop having a 7 maximum THC concentration that does not exceed 2 percent. 8 CONTINGENT IMPLEMENTATION AND EFFECTIVE DATE. Generally, 9 the bill’s provisions are to be implemented when DALS certifies 10 USDA has approved DALS’ state plan. 11 EFFECTIVE DATES. The bill takes effect upon enactment 12 except for those provisions which make enactment contingent 13 upon implementation of Code chapter 204 which take effect on 14 July 1, 2019. 15 -15- LSB 1744SV (2) 88 da/rn 15/ 15