H.F. _____ Section 1. Section 204.2, Code 2025, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 1A. “Attractive to children” means the use 3 of any characters or symbols designed to appeal, or likely to 4 appeal, primarily to individuals under twenty-one years of age, 5 including but not limited to an anthropomorphized animal, a 6 creature, a promotional character, a licensed character, an 7 inanimate object, a depiction of a child, or a depiction of 8 candy. 9 NEW SUBSECTION . 1B. a. “Beverage” means a liquid that may 10 be consumed by a human or animal. 11 b. “Beverage” does not include a consumable hemp product in 12 the form of a tincture. 13 NEW SUBSECTION . 1C. “Child resistant safeguard” means a 14 final packaged form that complies with the United States Poison 15 Prevention Packaging Act of 1970, 15 U.S.C. §14711 et seq., as 16 amended. 17 NEW SUBSECTION . 1D. “Consumable hemp establishment” 18 includes a consumable hemp manufacturer and consumable hemp 19 retailer. 20 NEW SUBSECTION . 1E. a. “Consumable hemp manufacturer” 21 means a consumable hemp establishment engaged in manufacturing, 22 processing, packing, holding, preparing, distributing, or 23 selling a consumable hemp product on a wholesale basis. 24 b. “Consumable hemp manufacturer” includes a person located 25 outside of this state who distributes a consumable hemp product 26 in this state. 27 c. “Consumable hemp manufacturer” does not include a person 28 exclusively engaged in producing, harvesting, storing, or 29 distributing raw hemp. 30 NEW SUBSECTION . 2A. a. “Consumable hemp product in the 31 form of a tincture” means a consumable hemp product that is in 32 a liquid state in which THC is suspended in a consumable base 33 oil. 34 b. “Consumable hemp product in the form of a tincture” does 35 -1- LSB 2611YC (5) 91 da/ns 1/ 14

H.F. _____ not include a beverage. 1 NEW SUBSECTION . 2B. “Consumable hemp product in the form 2 of a topical application” means a consumable hemp product in a 3 solid or liquid state that is a lotion, oil, transdermal patch, 4 or other manufactured form. 5 NEW SUBSECTION . 2C. a. “Consumable hemp retailer” means a 6 consumable hemp establishment selling consumable hemp products 7 to consumers on a retail basis. 8 b. “Consumable hemp retailer” includes an establishment 9 selling consumable hemp products on a retail basis on the 10 internet. 11 NEW SUBSECTION . 7A. “Final packaged form” means the form or 12 packaging in which a consumable hemp product is intended for 13 individual retail sale. 14 NEW SUBSECTION . 9A. “Intellectual property infringement” 15 means to infringe on any trade dress, trademark, branding, 16 mark, or other related right as described in 15 U.S.C. ch. 22, 17 or as described in chapter 548. 18 NEW SUBSECTION . 9B. “Label” means any display of written, 19 printed, or graphic matter printed on or affixed to a product 20 or package containing the product that provides information 21 regarding the product. 22 NEW SUBSECTION . 10A. “Mental health professional” means the 23 same as defined in section 228.1. 24 NEW SUBSECTION . 10B. a. “Package” means the immediate 25 container or wrapping in which a product is enclosed for 26 consumption, use, or storage by consumers of that product. 27 b. “Package” does not include any of the following: 28 (1) Any shipping container or wrapping used solely for 29 the transportation of any product in bulk or in a quantity 30 to manufacturers, packers, or processors, or to wholesale or 31 retail distributors. 32 (2) Any shipping container or outer wrapping used by 33 retailers to ship or deliver a product to consumers unless it 34 is the only such container or wrapping. 35 -2- LSB 2611YC (5) 91 da/ns 2/ 14

H.F. _____ NEW SUBSECTION . 10C. “Resemblance to a recognizable food 1 product” means to bear a reasonable appearance to an existing 2 candy, snack, or other food product that is widely distributed 3 and familiar to the public. 4 NEW SUBSECTION . 12. “Serving” means the portion of a 5 substance customarily consumed per dose. 6 NEW SUBSECTION . 13. “Synthetic consumable hemp product” 7 means an engineered product containing cannabinoids not 8 naturally occurring in hemp. 9 NEW SUBSECTION . 14. “THC” means delta-9 10 tetrahydrocannabinol. 11 NEW SUBSECTION . 15. “Total THC” means the same as defined 12 in 7 C.F.R. §990.1. 13 Sec. 2. Section 204.2, subsection 2, Code 2025, is amended 14 to read as follows: 15 2. “Consumable hemp product” means a hemp product that 16 includes a substance that is metabolized or is otherwise 17 subject to a biotransformative process when introduced into the 18 human body of a human or animal . 19 a. A consumable hemp product may be introduced into the 20 human body of a human or animal by ingestion or absorption by 21 any device including but not limited to an electronic device. 22 b. A consumable hemp product may exist in a solid or liquid 23 state and in any form . 24 c. A hemp product is deemed to be a consumable hemp product 25 if all of the following apply: 26 (1) It is any of the following: 27 (a) Designed by the processor, including the manufacturer, 28 to be introduced into the human body. 29 (b) Advertised as an item to be introduced into the human 30 body. 31 (c) Distributed, exported, imported, offered for sale, or 32 sold to be introduced into the human body. 33 (2) Its maximum total tetrahydrocannabinol concentration is 34 less than or equal to the lesser of the following: 35 -3- LSB 2611YC (5) 91 da/ns 3/ 14

H.F. _____ (a) Three-tenths of one percent on a dry weight basis. 1 (b) Four milligrams per serving and ten milligrams per 2 container on a dry weight basis. 3 d. c. “Consumable hemp product” includes but is not limited 4 to any of the following: 5 (1) A noncombustible form of hemp that may be digested, 6 such as food; internally absorbed , such as chew or snuff ; or 7 absorbed through the skin , such as a topical application . 8 (2) Hemp processed or otherwise manufactured, marketed, 9 sold, or distributed as food, a food additive, or a dietary 10 supplement , or a drug . 11 e. d. “Consumable hemp product” does not include a hemp 12 product if the intended use of the hemp product is introduction 13 into the human body by any method of inhalation, as prohibited 14 under section 204.14A . 15 Sec. 3. NEW SECTION . 204.3 Department —— administration and 16 rulemaking. 17 1. The department of health and human services shall 18 administer this chapter. 19 2. The department shall adopt rules under this chapter 20 only to the extent that the rules are necessary to effectively 21 comply with any of the following matters: 22 a. Administrative procedure, including methods to regularly 23 process registrations, conduct investigations, and make 24 decisions in compliance with chapter 17A. 25 b. The health and safety of the public. 26 (1) Except as provided in subparagraph (2), a rule 27 regulating a health and safety matter must cover a matter 28 expressly addressed in this chapter. 29 (2) A rule regulating a health and safety matter may cover a 30 matter that is implied in this chapter, if the rule is required 31 to comply with applicable federal law. 32 (3) A rule regulating a health and safety matter regulating 33 a health and safety matter must be supported by scientific 34 evidence. 35 -4- LSB 2611YC (5) 91 da/ns 4/ 14

H.F. _____ 3. As part of giving notice of intended action, the 1 department shall afford interested persons not less than 2 sixty days to make written or oral presentations regarding 3 the adoption, amendment, or repeal of a rule, notwithstanding 4 section 17A.4, subsection 1, paragraph “b” . 5 Sec. 4. NEW SECTION . 204.4 Department —— continuing 6 education programs. 7 1. The department of health and human services shall 8 establish and administer continuing education programs for 9 all departmental staff involved in the regulation of hemp 10 and hemp products, including matters relating to production, 11 transportation, manufacture, and distribution, including sale 12 on a wholesale or retail basis. The education program must 13 include current hemp industry standards and practices, the 14 best practices for effective and consistent enforcement of 15 laws regulating hemp products, and emerging research regarding 16 consumable hemp products. 17 2. A continuing education program must be conducted by 18 persons who have credentials in conducting hemp education or 19 training, including persons accredited by the hemp industry 20 association, the national hemp association, or the United 21 States department of agriculture. 22 3. The department shall annually review and update the 23 continuing education program to ensure the program’s ongoing 24 relevance and effectiveness. 25 Sec. 5. NEW SECTION . 204.5 Department —— public outreach 26 programs. 27 The department of health and human services, in cooperation 28 with the department of agriculture and land stewardship 29 under chapter 204A, shall establish and administer continuing 30 public outreach programs regarding the regulation of hemp 31 and hemp products, including matters relating to production, 32 transportation, manufacture, and distribution, including sale 33 on a wholesale or retail basis. 34 Sec. 6. NEW SECTION . 204.6 Department —— annual state hemp 35 -5- LSB 2611YC (5) 91 da/ns 5/ 14

H.F. _____ report. 1 1. The department of health and human services, in 2 cooperation with the department of agriculture and land 3 stewardship under chapter 204A, and the department of revenue, 4 shall prepare and submit an annual state hemp report to the 5 governor and general assembly. 6 2. The annual state hemp report must include a summary of 7 all of the following: 8 a. To the extent it can be determined, the status of hemp 9 production under chapter 204A, including all of the following: 10 (1) The number of applications received and approved or not 11 approved for licenses issued to persons seeking to produce hemp 12 in this state by the United States department of agriculture 13 under the federal hemp law. 14 (2) The number of years that licensees have produced hemp 15 in this state. 16 (3) The number of acres used to produce hemp in this state 17 and this state’s ranking among all states. 18 (4) The total revenue generated from the production and sale 19 of hemp in this state. 20 (5) The total property taxes paid on land used to produce 21 hemp. 22 (6) The number and type of enforcement actions taken by the 23 state against growers and transporters of hemp. 24 b. To the extent it can be determined, the status of hemp 25 product manufacturing and distribution, including sales on a 26 wholesale and retail basis, including all of the following: 27 (1) The number of applications received and approved or 28 not approved as registrants by the department of health and 29 human services, including applications to be consumable hemp 30 manufacturers and consumable hemp retailers. 31 (2) The number of years that registrants have been 32 in business in this state, including as consumable hemp 33 manufacturers and consumable hemp retailers. 34 (3) Efforts that the department of health and human services 35 -6- LSB 2611YC (5) 91 da/ns 6/ 14

H.F. _____ has taken or plans to take to cooperate with other states 1 regulating hemp products. 2 (4) The total revenue generated by registrants, including 3 as consumable hemp manufacturers and consumable hemp retailers. 4 The report must indicate this state’s ranking among all states. 5 (5) The total state revenue collected in fees and taxes 6 contributed by consumable hemp manufacturers and consumable 7 hemp retailers. 8 (6) The number of jobs created by consumable hemp 9 manufacturers and consumable hemp retailers. 10 (7) The number and type of enforcement actions taken by the 11 state against consumable hemp manufacturers and consumable hemp 12 retailers. 13 (8) Continuing education programs under section 204.4. 14 (9) Public outreach programs under section 204.5. 15 (10) The type of rules that the department of health and 16 human services proposes to adopt in the next twelve months. 17 3. The department of health and human services shall deliver 18 the annual report to the governor and general assembly not 19 later than January 15 of each year. 20 Sec. 7. Section 204.7, subsection 1, paragraph c, Code 2025, 21 is amended to read as follows: 22 c. The consumable hemp product complies with packaging and 23 labeling requirements , which shall be established by rules 24 adopted by the department of health and human services. Each 25 container storing a consumable hemp product shall be affixed 26 with a notice advising consumers regarding the risks associated 27 with its use provided in this chapter . The department of 28 health and human services shall adopt rules regarding the 29 language of the notice and its display on the container. 30 Sec. 8. NEW SECTION . 204.7A Hemp product deemed to be 31 consumable hemp product. 32 A hemp product is deemed to be a consumable hemp product if 33 all of the following apply: 34 1. It is any of the following: 35 -7- LSB 2611YC (5) 91 da/ns 7/ 14

H.F. _____ a. Designed by the processor, including the manufacturer, to 1 be introduced into the body of a human or animal. 2 b. Advertised as an item to be introduced into the body of 3 a human or animal. 4 c. Distributed, exported, imported, offered for sale, or 5 sold to be introduced into the body of a human or animal. 6 2. Its maximum total THC concentration is less than or equal 7 to the lesser of the following: 8 a. Three-tenths of one percent on a dry weight basis. 9 b. Five milligrams per serving on a dry weight basis. 10 Sec. 9. Section 204.8, Code 2025, is amended to read as 11 follows: 12 204.8 Hemp —— testing requirements and certificate of 13 analysis. 14 1. For purposes of this chapter , requirements for testing 15 hemp and the issuance of a certificate of analysis for hemp are 16 governed by chapter 204A . 17 2. A valid certificate of analysis issued pursuant to 18 chapter 204A may be required to be held by a consumable hemp 19 establishment for the shelf life of the consumable hemp product 20 covered by the certificate of analysis. 21 Sec. 10. NEW SECTION . 204.9 Consumable hemp products —— 22 total THC concentrations per form. 23 1. Except as provided in subsection 2, a consumable hemp 24 product shall not exceed a maximum total THC per form as 25 follows: 26 a. A consumable hemp product in the form of a tincture, 27 three milligrams per one milliliter. 28 b. A beverage, ten milligrams per twelve fluid ounces or the 29 proportionate equivalent of a beverage. 30 c. A consumable hemp product in the form of a topical 31 application, one thousand milligrams per package. 32 2. A consumable hemp product shall not exceed ten milligrams 33 if manufactured in this state for distribution outside this 34 state. 35 -8- LSB 2611YC (5) 91 da/ns 8/ 14

H.F. _____ Sec. 11. NEW SECTION . 204.10 Consumable hemp products —— 1 packaging requirements. 2 1. A person preparing a consumable hemp product in its final 3 package form shall do all of the following: 4 a. Provide for safety requirements as follows: 5 (1) Protect the packaged consumable hemp product from 6 contamination from or exposure to any toxic or harmful 7 substance. 8 (2) Include a child resistant safeguard to reduce the risk 9 of poisoning in children. 10 (3) Use resealable units to separate more than one serving 11 of a consumable hemp product. 12 (4) If the packaging includes a consumable hemp product 13 manufactured in the form of a tincture, include a calibrated 14 dropper or similar device for measuring a single serving. 15 (5) Include on a packing label a conspicuous statement 16 indicating the consumable hemp product’s ratio of THC to 17 cannabidiol. 18 b. Not include more than a thirty-day supply of a consumable 19 hemp product for human or animal consumption. 20 2. A person preparing a consumable hemp product in its final 21 package form shall not do any of the following: 22 a. Mislead potential or actual consumers regarding the 23 contents of the package. 24 b. Engage in deceptive advertising as provided in section 25 204.11. 26 Sec. 12. NEW SECTION . 204.11 Consumable hemp products —— 27 advertising. 28 A person shall not engage in the deceptive advertising of a 29 consumable hemp product, including but not limited to any of 30 the following: 31 1. Stating or suggesting a consumable hemp product 32 constitutes or contains medical cannabidiol regulated under 33 chapter 124E, or any substance commonly known as medical 34 marijuana or medical cannabis. 35 -9- LSB 2611YC (5) 91 da/ns 9/ 14

H.F. _____ 2. Engage in intellectual property infringement. 1 3. Present the consumable hemp product in a manner that is 2 any of the following: 3 a. Bears a resemblance to a recognizable food product. 4 b. Is attractive to children. 5 Sec. 13. NEW SECTION . 204.11A Consumable hemp establishment 6 —— locations. 7 1. The department may require separate registrations for 8 a person doing business as different types of consumable hemp 9 establishments or at different locations. 10 2. The department shall allow a person to engage in the 11 retail sale of consumable hemp products as part of the same 12 consumable hemp establishment doing business at two locations 13 under the same registration, if all of the following apply: 14 a. The person has been engaged in the retail sale of 15 consumable hemp products at the first location for at least two 16 years without violating this chapter. 17 b. The person maintains the first location as the principal 18 place of business. 19 c. The person maintains the second location on a temporary 20 or mobile basis. 21 Sec. 14. Section 204.14A, subsection 3, Code 2025, is 22 amended to read as follows: 23 3. A person required to be registered to manufacture or 24 sell a consumable hemp product under section 204.7 shall not 25 manufacture, produce, distribute, market, or sell a synthetic 26 consumable hemp product , as defined by rules adopted by the 27 department of health and human services . 28 Sec. 15. Section 204.14E, subsection 1, Code 2025, is 29 amended to read as follows: 30 1. A person under twenty-one years of age shall not consume, 31 possess, purchase, or attempt to purchase a consumable hemp 32 product , unless such action is approved by a mental health 33 professional . 34 Sec. 16. CODE EDITOR DIRECTIVE. 35 -10- LSB 2611YC (5) 91 da/ns 10/ 14

H.F. _____ 1. The Code editor is directed to transfer section 204.17, 1 Code 2025, to section 204.6A. 2 2. The Code editor shall correct internal references in the 3 Code and in any enacted legislation as necessary due to the 4 enactment of this section. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 BACKGROUND. This bill provides for the regulation of hemp, 9 including hemp products. The regulation of hemp production 10 is governed by federal law. Hemp must have a maximum 11 concentration of the compound delta-9 tetrahydrocannabinol 12 (THC) not exceeding three-tenths of 1 percent as measured on a 13 dry weight basis. A plant or a product manufactured from that 14 plant exceeding the concentration limit is no longer classified 15 as hemp and instead is regulated as a controlled substance 16 under Code chapters 124 and 453B, which include criminal 17 offenses. 18 The regulation of hemp has been divided between the 19 production, harvesting, storage, and transportation of raw 20 hemp and the manufacture and sale of hemp products, including 21 consumable hemp products. Prior to 2024, the department 22 of agriculture and land stewardship (DALS) was required to 23 regulate hemp. In 2024 Iowa Acts, chapter 1177, the United 24 States department of agriculture (USDA) assumed regulation 25 over the production of hemp including the issuance of licenses 26 to growers, and remaining state regulatory provisions were 27 transferred from Code chapter 204 to Code chapter 204A. Certain 28 state regulations continue to apply to hemp. A person is 29 required to hold a certificate of analysis (COA) to possess, 30 handle, use, manufacture, market, transport, deliver, or 31 distribute hemp (Code section 204.7). A COA is evidence 32 that hemp originates from a legal source (e.g., a licensee’s 33 production site). 34 The department of health and human services (HHS) regulates 35 -11- LSB 2611YC (5) 91 da/ns 11/ 14

H.F. _____ the manufacture and sale of hemp products under Code chapter 1 204. Generally, HHS regulations are concerned with consumable 2 hemp products that are metabolized or otherwise subject to 3 a biotransformative process when introduced into the human 4 body. HHS must register any person manufacturing or selling a 5 consumable hemp product on a retail basis (Code section 204.7). 6 Many of the regulations covering consumable hemp products have 7 been adopted by rule (641 IAC 156). In general, consumable 8 hemp products are regulated according to milligrams (mg) per 9 amount or volume (often per serving, per milliliter (ml), or 10 per ounce (oz)). 11 BILL’S PROVISIONS —— ADMINISTRATION BY HHS. The bill 12 provides that HHS may adopt rules only to the extent that the 13 rules are necessary to comply with administrative procedures 14 or the health and safety of the public. In addition, the 15 rules must be supported by scientific evidence. During the 16 rulemaking process, 60 days must be set aside for public 17 comment. HHS must establish and administer continuing 18 education programs for its staff covering the regulation of 19 hemp and hemp products. HHS, in cooperation with DALS, must 20 establish and administer outreach programs regarding the 21 regulation of hemp and hemp products. HHS, in cooperation with 22 DALS and the department of revenue, must prepare and submit an 23 annual report to the governor and general assembly summarizing 24 information regarding the production and regulation of hemp and 25 hemp growers licensed by USDA, and information regarding the 26 manufacture and sale of hemp products, including consumable 27 hemp products, by registrants. 28 BILL’S PROVISIONS —— REGULATION BY HHS —— SERVING. The 29 bill amends a provision that describes when a hemp product is 30 considered to be a consumable hemp product, including when 31 its maximum total THC is less than or equal to four mg per 32 serving and 10 mg per container on a dry weight basis. The bill 33 increases the mg per serving to five and eliminates the per 34 container measurement. 35 -12- LSB 2611YC (5) 91 da/ns 12/ 14

H.F. _____ BILL’S PROVISIONS —— REGULATION BY HHS —— COA. The 1 bill provides that a valid COA held by a consumable hemp 2 establishment is valid for the shelf life of the consumable 3 hemp product covered by the COA. 4 BILL’S PROVISIONS —— REGULATION BY HHS —— THC LIMITS. 5 The bill imposes maximum limits on certain consumable hemp 6 products, including a consumable hemp product in the form of 7 a tincture (1 mg), a beverage other than a tincture (10 mg per 8 12 oz), and a topical application (1,000 mg per package). The 9 bill provides that a consumable hemp product cannot exceed 10 10 mg per serving if the consumable hemp product is manufactured 11 in this state for distribution outside this state. 12 BILL’S PROVISIONS —— REGULATION BY HHS —— PACKAGING AND 13 ADVERTISING. The bill provides that a person preparing a 14 consumable product in its final package form must comply with a 15 number of requirements regarding safety, including providing 16 for child resistant safeguards, the separation of servings, 17 the inclusion of a dropper if necessary, label requirements, 18 and a 30-day supply limit. The bill prohibits a person from 19 engaging in deceptive advertising, including by stating that 20 the consumable hemp product is medical cannabidiol. The bill 21 prohibits a person from engaging in intellectual property 22 infringement (e.g., a violation of a trademark), or from 23 presenting a consumable hemp product in a manner that bears a 24 resemblance to a recognizable food product or a manner that is 25 attractive to children. 26 BILL’S PROVISIONS —— REGULATION BY HHS —— LOCATIONS. 27 According to administrative rule, a consumable hemp 28 registration is restricted to one physical location (641 IAC 29 156.2). The bill provides HHS must allow a person to engage 30 in the retail sale of consumable hemp products under the same 31 registration if the person has been engaged in the retail sale 32 of consumable hemp products for two years without violation, 33 the person maintains the first location as the principal place 34 of residence, and the second location is maintained on a 35 -13- LSB 2611YC (5) 91 da/ns 13/ 14

H.F. _____ temporary or mobile basis. 1 BILL’S PROVISIONS —— REGULATION BY HHS —— USE BY PERSONS 2 UNDER THE AGE OF 21. The bill amends a provision that 3 prohibits a person under 21 years of age to consume, possess, 4 or purchase a consumable hemp product (Code section 204.12E). 5 The bill provides an exception if the action is approved by a 6 mental health professional. 7 BILL’S PROVISIONS —— APPLICABLE PENALTIES. Generally, a 8 person engaged in the retail sale of a consumable hemp product 9 without being registered is subject to a civil penalty of not 10 more than $10,000 with each day of a violation considered as 11 a separate offense (Code section 204.14B). A person who is 12 unregistered and a person who is engaged in the retail sale 13 of an item wrongly advertised as a consumable hemp product 14 commits a serious misdemeanor. The bill provides that a 15 person who distributes a consumable hemp product to a person 16 under 21 years of age is guilty of a simple misdemeanor (Code 17 section 204.14D). A person under that age limit who consumes, 18 possesses, or attempts to purchase or purchases a consumable 19 hemp product is subject to a scheduled violation ranging from 20 $70 to $325 (Code section 204.14E). A simple misdemeanor is 21 punishable by confinement for no more than 30 days and a fine 22 of at least $105 but not more than $855. A serious misdemeanor 23 is punishable by confinement for no more than one year and a 24 fine of at least $430 but not more than $2,560. 25 -14- LSB 2611YC (5) 91 da/ns 14/ 14