SSB 3173 (LSB 6299XC (4) 88)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ZAUN)

A BILL FOR

An Act  relating to the manufacture, sale, and consumption of certain products containing hemp, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 204.2, Code 2020, is amended by adding the following new subsection:
   NEW SUBSECTION.  01.  “Consumable hemp product” means a hemp product that includes a substance that is metabolized or is otherwise subject to a biotransformative process when introduced into a human or animal body.
   a.  A consumable hemp product may be introduced into a human or animal body by ingestion or absorption by any device including but not limited to an electronic device.
   b.  A consumable hemp product may exist in a solid or liquid state.
   c.  A hemp product is deemed to be a consumable hemp product if it is any of the following:
   (1)  Designed by the processor, including the manufacturer, to be introduced into a human or animal body.
   (2)  Advertised as an item to be introduced into a human or animal body.
   (3)  Distributed, exported, or imported for sale or distribution to be introduced into a human or animal body.
   d.  “Consumable hemp product” includes but is not limited to any of the following:
   (1)  A noncombustible form of hemp that may be digested, such as food; internally absorbed, such as chew or snuff; or absorbed through the skin, such as a topical application.
   (2)  Hemp processed or otherwise manufactured, marketed, sold, or distributed as human or animal food, a human or animal food additive, a human or animal dietary supplement, or a human or animal drug.
    Sec. 2.  Section 204.7, subsection 9, paragraph a, Code 2020, is amended to read as follows:
   a.  A Except as provided in subsection 10, a person may engage in the retail sale of a hemp product if the hemp was produced in this state or another state in compliance with the federal hemp law or other applicable federal law. A person may engage in the retail sale of a hemp product if the hemp was produced in another jurisdiction in compliance with applicable federal law and the laws of the other jurisdiction, if such law is substantially the same as applicable federal law.
    Sec. 3.  Section 204.7, subsection 9, paragraph b, Code 2020, is amended by striking the paragraph.
    Sec. 4.  Section 204.7, Code 2020, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  a.  Except as provided in paragraph “e”, a consumable hemp product shall not be manufactured, sold, or consumed in this state unless all of the following conditions are met:
   (1)  The consumable hemp product is manufactured in this state in compliance with this chapter.
   (2)  The hemp contained in the consumable hemp product was produced exclusively in this state in compliance with this chapter.
   (3)  The consumable hemp product complies with packaging and labeling requirements, which shall be established by the department of inspections and appeals by rule.
   b.  A person manufacturing a consumable hemp product in this state shall register with the department on a form prescribed by the department by rule. The department may impose a fee on a registrant not to exceed the cost of processing the registration. The department shall adopt rules for the revocation of a registration issued to a manufacturer who manufactures a consumable hemp product not in compliance with this chapter.
   c.  A person selling a consumable hemp product in this state shall register with the department of inspections and appeals on a form prescribed by the department of inspections and appeals by rule. The department of inspections and appeals may impose a fee on a registrant not to exceed the cost of processing the registration. The department of inspections and appeals shall adopt rules for the revocation of a registration issued to a person who sells a consumable hemp product not in compliance with this section.
   d.  Except as otherwise provided in this subsection, a political subdivision of the state shall not adopt any ordinance, rule, or regulation regarding the manufacture, sale, or consumption of a consumable hemp product.
   e.  A consumable hemp product manufactured in another state pursuant to a state plan approved by the United States secretary of agriculture may be imported for use by a consumer if the state has substantially similar testing requirements as those provided in section 204.8.
   f.  A consumable hemp product manufactured, sold, or consumed in compliance with this subsection is not a controlled substance under chapter 124 or 453B regardless of whether the consumable hemp product has been approved by the United States food and drug administration.
    Sec. 5.  Section 204.17, subsection 2, paragraph c, Code 2020, is amended to read as follows:
   c.  Local law relating to product development, product manufacturing, consumer safety, or public health so long as the local law is consistent with federal and state law, except as provided in section 204.7, subsection 10.
    Sec. 6.  CONTINGENT EFFECTIVE DATE.
   1.  Except as provided in subsection 2, this Act takes effect on the date that chapter 204 is implemented as provided in 2019 Iowa Acts, chapter 130, section 18, subsection 1.
   2.  a.  If the department of agriculture and land stewardship, in cooperation with the department of public safety, determines that the United States department of agriculture must approve any amendment to an existing provision or new provision enacted in this Act as part of a state plan pursuant to section 204.3, the secretary of agriculture shall publish a notice of that fact in the Iowa administrative bulletin. The department of agriculture and land stewardship shall forward a copy of the statement to the Code editor prior to publication.
   b.  If a determination is made as provided in paragraph “a”, the amendment or new provision enacted in this Act takes effect on the publication date of the edition of the Iowa administrative bulletin that includes a statement by the secretary of agriculture of the department of agriculture and land stewardship certifying that the United States department of agriculture has approved the amendment or provision. The department of agriculture and land stewardship shall forward a copy of the statement to the Code editor prior to publication.
   3.  This section does not affect the implementation of provisions amended or enacted in 2019 Iowa Acts, chapter 130.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the manufacture, sale, and consumption of consumable hemp products in this state. The bill defines “consumable hemp product” as a hemp product that includes a substance that is metabolized or is otherwise subject to a biotransformative process when introduced into a human or animal body.
   The bill allows a person to manufacture, sell, or consume a consumable hemp product only if the consumable hemp product is manufactured in Iowa in compliance with Code chapter 204, the hemp in the consumable hemp product was produced exclusively in Iowa in compliance with Code chapter 204, and the consumable hemp product complies with packaging and labeling requirements established by the department of inspections and appeals by rule. The bill also allows a consumable hemp product to be imported for use by a consumer if the state from which the consumable hemp product is being imported has a state hemp plan approved by the United States secretary of agriculture and testing requirements substantially similar to those of this state.
   The bill requires a person manufacturing consumable hemp products to register with the department of agriculture and land stewardship, which may impose a fee to recoup the cost of registration. A person selling consumable hemp products must register with the department of inspections of appeals, which may also impose a fee to recoup the cost of registration.
   The bill prohibits political subdivisions of the state from adopting any ordinance, rule, or regulation regarding the manufacture, sale, or consumption of a consumable hemp product, and exempts consumable hemp products that comply with the provisions of the bill from classification as a controlled substance.
   The bill takes effect on the implementation date of Code chapter 204, unless the department of agriculture and land stewardship, acting in coordination with the department of public safety, determines that the provisions must be submitted to the United State department of agriculture for approval. In that case, the provisions take effect when the department of agriculture and land stewardship publishes a notice of the United States department of agriculture’s approval in the Iowa administrative bulletin.