S.F. _____ Section 1. Section 204.2, Code 2020, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 01. “Consumable hemp product” means a 3 hemp product that includes a substance that is metabolized 4 or is otherwise subject to a biotransformative process when 5 introduced into a human or animal body. 6 a. A consumable hemp product may be introduced into a 7 human or animal body by ingestion or absorption by any device 8 including but not limited to an electronic device. 9 b. A consumable hemp product may exist in a solid or liquid 10 state. 11 c. A hemp product is deemed to be a consumable hemp product 12 if it is any of the following: 13 (1) Designed by the processor, including the manufacturer, 14 to be introduced into a human or animal body. 15 (2) Advertised as an item to be introduced into a human or 16 animal body. 17 (3) Distributed, exported, or imported for sale or 18 distribution to be introduced into a human or animal body. 19 d. “Consumable hemp product” includes but is not limited to 20 any of the following: 21 (1) A noncombustible form of hemp that may be digested, 22 such as food; internally absorbed, such as chew or snuff; or 23 absorbed through the skin, such as a topical application. 24 (2) Hemp processed or otherwise manufactured, marketed, 25 sold, or distributed as human or animal food, a human or animal 26 food additive, a human or animal dietary supplement, or a human 27 or animal drug. 28 Sec. 2. Section 204.7, subsection 9, paragraph a, Code 2020, 29 is amended to read as follows: 30 a. A Except as provided in subsection 10, a person may 31 engage in the retail sale of a hemp product if the hemp was 32 produced in this state or another state in compliance with the 33 federal hemp law or other applicable federal law. A person may 34 engage in the retail sale of a hemp product if the hemp was 35 -1- LSB 6299XC (4) 88 ss/ns 1/ 5

S.F. _____ produced in another jurisdiction in compliance with applicable 1 federal law and the laws of the other jurisdiction, if such law 2 is substantially the same as applicable federal law. 3 Sec. 3. Section 204.7, subsection 9, paragraph b, Code 2020, 4 is amended by striking the paragraph. 5 Sec. 4. Section 204.7, Code 2020, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 10. a. Except as provided in paragraph 8 “e” , a consumable hemp product shall not be manufactured, 9 sold, or consumed in this state unless all of the following 10 conditions are met: 11 (1) The consumable hemp product is manufactured in this 12 state in compliance with this chapter. 13 (2) The hemp contained in the consumable hemp product was 14 produced exclusively in this state in compliance with this 15 chapter. 16 (3) The consumable hemp product complies with packaging 17 and labeling requirements, which shall be established by the 18 department of inspections and appeals by rule. 19 b. A person manufacturing a consumable hemp product in this 20 state shall register with the department on a form prescribed 21 by the department by rule. The department may impose a 22 fee on a registrant not to exceed the cost of processing 23 the registration. The department shall adopt rules for the 24 revocation of a registration issued to a manufacturer who 25 manufactures a consumable hemp product not in compliance with 26 this chapter. 27 c. A person selling a consumable hemp product in this state 28 shall register with the department of inspections and appeals 29 on a form prescribed by the department of inspections and 30 appeals by rule. The department of inspections and appeals 31 may impose a fee on a registrant not to exceed the cost of 32 processing the registration. The department of inspections and 33 appeals shall adopt rules for the revocation of a registration 34 issued to a person who sells a consumable hemp product not in 35 -2- LSB 6299XC (4) 88 ss/ns 2/ 5

S.F. _____ compliance with this section. 1 d. Except as otherwise provided in this subsection, 2 a political subdivision of the state shall not adopt any 3 ordinance, rule, or regulation regarding the manufacture, sale, 4 or consumption of a consumable hemp product. 5 e. A consumable hemp product manufactured in another 6 state pursuant to a state plan approved by the United States 7 secretary of agriculture may be imported for use by a consumer 8 if the state has substantially similar testing requirements as 9 those provided in section 204.8. 10 f. A consumable hemp product manufactured, sold, or 11 consumed in compliance with this subsection is not a controlled 12 substance under chapter 124 or 453B regardless of whether the 13 consumable hemp product has been approved by the United States 14 food and drug administration. 15 Sec. 5. Section 204.17, subsection 2, paragraph c, Code 16 2020, is amended to read as follows: 17 c. Local law relating to product development, product 18 manufacturing, consumer safety, or public health so long as the 19 local law is consistent with federal and state law , except as 20 provided in section 204.7, subsection 10 . 21 Sec. 6. CONTINGENT EFFECTIVE DATE. 22 1. Except as provided in subsection 2, this Act takes effect 23 on the date that chapter 204 is implemented as provided in 2019 24 Iowa Acts, chapter 130, section 18, subsection 1. 25 2. a. If the department of agriculture and land 26 stewardship, in cooperation with the department of public 27 safety, determines that the United States department of 28 agriculture must approve any amendment to an existing provision 29 or new provision enacted in this Act as part of a state plan 30 pursuant to section 204.3, the secretary of agriculture shall 31 publish a notice of that fact in the Iowa administrative 32 bulletin. The department of agriculture and land stewardship 33 shall forward a copy of the statement to the Code editor prior 34 to publication. 35 -3- LSB 6299XC (4) 88 ss/ns 3/ 5

S.F. _____ b. If a determination is made as provided in paragraph 1 “a”, the amendment or new provision enacted in this Act takes 2 effect on the publication date of the edition of the Iowa 3 administrative bulletin that includes a statement by the 4 secretary of agriculture of the department of agriculture and 5 land stewardship certifying that the United States department 6 of agriculture has approved the amendment or provision. The 7 department of agriculture and land stewardship shall forward a 8 copy of the statement to the Code editor prior to publication. 9 3. This section does not affect the implementation of 10 provisions amended or enacted in 2019 Iowa Acts, chapter 130. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to the manufacture, sale, and consumption 15 of consumable hemp products in this state. The bill defines 16 “consumable hemp product” as a hemp product that includes a 17 substance that is metabolized or is otherwise subject to a 18 biotransformative process when introduced into a human or 19 animal body. 20 The bill allows a person to manufacture, sell, or consume a 21 consumable hemp product only if the consumable hemp product is 22 manufactured in Iowa in compliance with Code chapter 204, the 23 hemp in the consumable hemp product was produced exclusively in 24 Iowa in compliance with Code chapter 204, and the consumable 25 hemp product complies with packaging and labeling requirements 26 established by the department of inspections and appeals by 27 rule. The bill also allows a consumable hemp product to be 28 imported for use by a consumer if the state from which the 29 consumable hemp product is being imported has a state hemp plan 30 approved by the United States secretary of agriculture and 31 testing requirements substantially similar to those of this 32 state. 33 The bill requires a person manufacturing consumable hemp 34 products to register with the department of agriculture and 35 -4- LSB 6299XC (4) 88 ss/ns 4/ 5

S.F. _____ land stewardship, which may impose a fee to recoup the cost of 1 registration. A person selling consumable hemp products must 2 register with the department of inspections of appeals, which 3 may also impose a fee to recoup the cost of registration. 4 The bill prohibits political subdivisions of the state 5 from adopting any ordinance, rule, or regulation regarding 6 the manufacture, sale, or consumption of a consumable hemp 7 product, and exempts consumable hemp products that comply with 8 the provisions of the bill from classification as a controlled 9 substance. 10 The bill takes effect on the implementation date of Code 11 chapter 204, unless the department of agriculture and land 12 stewardship, acting in coordination with the department of 13 public safety, determines that the provisions must be submitted 14 to the United State department of agriculture for approval. 15 In that case, the provisions take effect when the department 16 of agriculture and land stewardship publishes a notice of the 17 United States department of agriculture’s approval in the Iowa 18 administrative bulletin. 19 -5- LSB 6299XC (4) 88 ss/ns 5/ 5