HSB 279 (LSB 2611YC (5) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON PUBLIC SAFETY BILL BY CHAIRPERSON VONDRAN)

A BILL FOR

An Act providing for the regulation of hemp products, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 204.2, Code 2025, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  “Attractive to children” means the use of any characters or symbols designed to appeal, or likely to appeal, primarily to individuals under twenty-one years of age, including but not limited to an anthropomorphized animal, a creature, a promotional character, a licensed character, an inanimate object, a depiction of a child, or a depiction of candy.
   NEW SUBSECTION.  1B.  a.  “Beverage” means a liquid that may be consumed by a human or animal.
   b.  “Beverage” does not include a consumable hemp product in the form of a tincture.
   NEW SUBSECTION.  1C.  “Child resistant safeguard” means a final packaged form that complies with the United States Poison Prevention Packaging Act of 1970, 15 U.S.C. §14711 et seq., as amended.
   NEW SUBSECTION.  1D.  “Consumable hemp establishment” includes a consumable hemp manufacturer and consumable hemp retailer.
   NEW SUBSECTION.  1E.  a.  “Consumable hemp manufacturer” means a consumable hemp establishment engaged in manufacturing, processing, packing, holding, preparing, distributing, or selling a consumable hemp product on a wholesale basis.
   b.  “Consumable hemp manufacturer” includes a person located outside of this state who distributes a consumable hemp product in this state.
   c.  “Consumable hemp manufacturer” does not include a person exclusively engaged in producing, harvesting, storing, or distributing raw hemp.
   NEW SUBSECTION.  2A.  a.  “Consumable hemp product in the form of a tincture” means a consumable hemp product that is in a liquid state in which THC is suspended in a consumable base oil.
   b.  “Consumable hemp product in the form of a tincture” does not include a beverage.
   NEW SUBSECTION.  2B.  “Consumable hemp product in the form of a topical application” means a consumable hemp product in a solid or liquid state that is a lotion, oil, transdermal patch, or other manufactured form.
   NEW SUBSECTION.  2C.  a.  “Consumable hemp retailer” means a consumable hemp establishment selling consumable hemp products to consumers on a retail basis.
   b.  “Consumable hemp retailer” includes an establishment selling consumable hemp products on a retail basis on the internet.
   NEW SUBSECTION.  7A.  “Final packaged form” means the form or packaging in which a consumable hemp product is intended for individual retail sale.
   NEW SUBSECTION.  9A.  “Intellectual property infringement” means to infringe on any trade dress, trademark, branding, mark, or other related right as described in 15 U.S.C. ch. 22, or as described in chapter 548.
   NEW SUBSECTION.  9B.  “Label” means any display of written, printed, or graphic matter printed on or affixed to a product or package containing the product that provides information regarding the product.
   NEW SUBSECTION.  10A.  “Mental health professional” means the same as defined in section 228.1.
   NEW SUBSECTION.  10B.  a.  “Package” means the immediate container or wrapping in which a product is enclosed for consumption, use, or storage by consumers of that product.
   b.  “Package” does not include any of the following:
   (1)  Any shipping container or wrapping used solely for the transportation of any product in bulk or in a quantity to manufacturers, packers, or processors, or to wholesale or retail distributors.
   (2)  Any shipping container or outer wrapping used by retailers to ship or deliver a product to consumers unless it is the only such container or wrapping.
   NEW SUBSECTION.  10C.  “Resemblance to a recognizable food product” means to bear a reasonable appearance to an existing candy, snack, or other food product that is widely distributed and familiar to the public.
   NEW SUBSECTION.  12.  “Serving” means the portion of a substance customarily consumed per dose.
   NEW SUBSECTION.  13.  “Synthetic consumable hemp product” means an engineered product containing cannabinoids not naturally occurring in hemp.
   NEW SUBSECTION.  14.  “THC” means delta-9 tetrahydrocannabinol.
   NEW SUBSECTION.  15.  “Total THC” means the same as defined in 7 C.F.R. §990.1.
    Sec. 2.  Section 204.2, subsection 2, Code 2025, is amended to read as follows:
   2.  “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 the human body of a human or animal.
   a.  A consumable hemp product may be introduced into the human body of a human or animal 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 and in any form.
   c.  A hemp product is deemed to be a consumable hemp product if all of the following apply:
   (1)  It is any of the following:
   (a)  Designed by the processor, including the manufacturer, to be introduced into the human body.
   (b)  Advertised as an item to be introduced into the human body.
   (c)  Distributed, exported, imported, offered for sale, or sold to be introduced into the human body.
   (2)  Its maximum total tetrahydrocannabinol concentration is less than or equal to the lesser of the following:
   (a)  Three-tenths of one percent on a dry weight basis.
   (b)  Four milligrams per serving and ten milligrams per container on a dry weight basis.
   d.  c.  “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 food, a food additive, or a dietary supplement, or a drug.
   e.  d.  “Consumable hemp product” does not include a hemp product if the intended use of the hemp product is introduction into the human body by any method of inhalation, as prohibited under section 204.14A.
    Sec. 3.  NEW SECTION.  204.3  Department —— administration and rulemaking.
   1.  The department of health and human services shall administer this chapter.
   2.  The department shall adopt rules under this chapter only to the extent that the rules are necessary to effectively comply with any of the following matters:
   a.  Administrative procedure, including methods to regularly process registrations, conduct investigations, and make decisions in compliance with chapter 17A.
   b.  The health and safety of the public. 
   (1)  Except as provided in subparagraph (2), a rule regulating a health and safety matter must cover a matter expressly addressed in this chapter.
   (2)  A rule regulating a health and safety matter may cover a matter that is implied in this chapter, if the rule is required to comply with applicable federal law.
   (3)  A rule regulating a health and safety matter regulating a health and safety matter must be supported by scientific evidence.
   3.  As part of giving notice of intended action, the department shall afford interested persons not less than sixty days to make written or oral presentations regarding the adoption, amendment, or repeal of a rule, notwithstanding section 17A.4, subsection 1, paragraph “b”.
    Sec. 4.  NEW SECTION.  204.4  Department —— continuing education programs.
   1.  The department of health and human services shall establish and administer continuing education programs for all departmental staff involved in the regulation of hemp and hemp products, including matters relating to production, transportation, manufacture, and distribution, including sale on a wholesale or retail basis. The education program must include current hemp industry standards and practices, the best practices for effective and consistent enforcement of laws regulating hemp products, and emerging research regarding consumable hemp products.
   2.  A continuing education program must be conducted by persons who have credentials in conducting hemp education or training, including persons accredited by the hemp industry association, the national hemp association, or the United States department of agriculture.
   3.  The department shall annually review and update the continuing education program to ensure the program’s ongoing relevance and effectiveness.
    Sec. 5.  NEW SECTION.  204.5  Department —— public outreach programs.
   The department of health and human services, in cooperation with the department of agriculture and land stewardship under chapter 204A, shall establish and administer continuing public outreach programs regarding the regulation of hemp and hemp products, including matters relating to production, transportation, manufacture, and distribution, including sale on a wholesale or retail basis.
    Sec. 6.  NEW SECTION.  204.6  Department —— annual state hemp report.
   1.  The department of health and human services, in cooperation with the department of agriculture and land stewardship under chapter 204A, and the department of revenue, shall prepare and submit an annual state hemp report to the governor and general assembly.
   2.  The annual state hemp report must include a summary of all of the following:
   a.  To the extent it can be determined, the status of hemp production under chapter 204A, including all of the following:
   (1)  The number of applications received and approved or not approved for licenses issued to persons seeking to produce hemp in this state by the United States department of agriculture under the federal hemp law.
   (2)  The number of years that licensees have produced hemp in this state.
   (3)  The number of acres used to produce hemp in this state and this state’s ranking among all states.
   (4)  The total revenue generated from the production and sale of hemp in this state.
   (5)  The total property taxes paid on land used to produce hemp.
   (6)  The number and type of enforcement actions taken by the state against growers and transporters of hemp.
   b.  To the extent it can be determined, the status of hemp product manufacturing and distribution, including sales on a wholesale and retail basis, including all of the following:
   (1)  The number of applications received and approved or not approved as registrants by the department of health and human services, including applications to be consumable hemp manufacturers and consumable hemp retailers.
   (2)  The number of years that registrants have been in business in this state, including as consumable hemp manufacturers and consumable hemp retailers.
   (3)  Efforts that the department of health and human services has taken or plans to take to cooperate with other states regulating hemp products.
   (4)  The total revenue generated by registrants, including as consumable hemp manufacturers and consumable hemp retailers. The report must indicate this state’s ranking among all states.
   (5)  The total state revenue collected in fees and taxes contributed by consumable hemp manufacturers and consumable hemp retailers.
   (6)  The number of jobs created by consumable hemp manufacturers and consumable hemp retailers.
   (7)  The number and type of enforcement actions taken by the state against consumable hemp manufacturers and consumable hemp retailers.
   (8)  Continuing education programs under section 204.4.
   (9)  Public outreach programs under section 204.5.
   (10)  The type of rules that the department of health and human services proposes to adopt in the next twelve months.
   3.  The department of health and human services shall deliver the annual report to the governor and general assembly not later than January 15 of each year.
    Sec. 7.  Section 204.7, subsection 1, paragraph c, Code 2025, is amended to read as follows:
   c.  The consumable hemp product complies with packaging and labeling requirements, which shall be established by rules adopted by the department of health and human services. Each container storing a consumable hemp product shall be affixed with a notice advising consumers regarding the risks associated with its use provided in this chapter. The department of health and human services shall adopt rules regarding the language of the notice and its display on the container.
    Sec. 8.  NEW SECTION.  204.7A  Hemp product deemed to be consumable hemp product.
   A hemp product is deemed to be a consumable hemp product if all of the following apply:
   1.  It is any of the following:
   a.  Designed by the processor, including the manufacturer, to be introduced into the body of a human or animal.
   b.  Advertised as an item to be introduced into the body of a human or animal.
   c.  Distributed, exported, imported, offered for sale, or sold to be introduced into the body of a human or animal.
   2.  Its maximum total THC concentration is less than or equal to the lesser of the following:
   a.  Three-tenths of one percent on a dry weight basis.
   b.  Five milligrams per serving on a dry weight basis.
    Sec. 9.  Section 204.8, Code 2025, is amended to read as follows:
   204.8  Hemp —— testing requirements and certificate of analysis.
   1.  For purposes of this chapter, requirements for testing hemp and the issuance of a certificate of analysis for hemp are governed by chapter 204A.
   2.  A valid certificate of analysis issued pursuant to chapter 204A may be required to be held by a consumable hemp establishment for the shelf life of the consumable hemp product covered by the certificate of analysis.
    Sec. 10.  NEW SECTION.  204.9  Consumable hemp products —— total THC concentrations per form.
   1.  Except as provided in subsection 2, a consumable hemp product shall not exceed a maximum total THC per form as follows:
   a.  A consumable hemp product in the form of a tincture, three milligrams per one milliliter.
   b.  A beverage, ten milligrams per twelve fluid ounces or the proportionate equivalent of a beverage.
   c.  A consumable hemp product in the form of a topical application, one thousand milligrams per package.
   2.  A consumable hemp product shall not exceed ten milligrams if manufactured in this state for distribution outside this state.
    Sec. 11.  NEW SECTION.  204.10  Consumable hemp products —— packaging requirements.
   1.  A person preparing a consumable hemp product in its final package form shall do all of the following:
   a.  Provide for safety requirements as follows:
   (1)  Protect the packaged consumable hemp product from contamination from or exposure to any toxic or harmful substance.
   (2)  Include a child resistant safeguard to reduce the risk of poisoning in children.
   (3)  Use resealable units to separate more than one serving of a consumable hemp product.
   (4)  If the packaging includes a consumable hemp product manufactured in the form of a tincture, include a calibrated dropper or similar device for measuring a single serving.
   (5)  Include on a packing label a conspicuous statement indicating the consumable hemp product’s ratio of THC to cannabidiol.
   b.  Not include more than a thirty-day supply of a consumable hemp product for human or animal consumption.
   2.  A person preparing a consumable hemp product in its final package form shall not do any of the following:
   a.  Mislead potential or actual consumers regarding the contents of the package.
   b.  Engage in deceptive advertising as provided in section 204.11.
    Sec. 12.  NEW SECTION.  204.11  Consumable hemp products —— advertising.
   A person shall not engage in the deceptive advertising of a consumable hemp product, including but not limited to any of the following:
   1.  Stating or suggesting a consumable hemp product constitutes or contains medical cannabidiol regulated under chapter 124E, or any substance commonly known as medical marijuana or medical cannabis.
   2.  Engage in intellectual property infringement.
   3.  Present the consumable hemp product in a manner that is any of the following:
   a.  Bears a resemblance to a recognizable food product.
   b.  Is attractive to children.
    Sec. 13.  NEW SECTION.  204.11A  Consumable hemp establishment —— locations.
   1.  The department may require separate registrations for a person doing business as different types of consumable hemp establishments or at different locations.
   2.  The department shall allow a person to engage in the retail sale of consumable hemp products as part of the same consumable hemp establishment doing business at two locations under the same registration, if all of the following apply:
   a.  The person has been engaged in the retail sale of consumable hemp products at the first location for at least two years without violating this chapter.
   b.  The person maintains the first location as the principal place of business.
   c.  The person maintains the second location on a temporary or mobile basis.
    Sec. 14.  Section 204.14A, subsection 3, Code 2025, is amended to read as follows:
   3.  A person required to be registered to manufacture or sell a consumable hemp product under section 204.7 shall not manufacture, produce, distribute, market, or sell a synthetic consumable hemp product, as defined by rules adopted by the department of health and human services.
    Sec. 15.  Section 204.14E, subsection 1, Code 2025, is amended to read as follows:
   1.  A person under twenty-one years of age shall not consume, possess, purchase, or attempt to purchase a consumable hemp product, unless such action is approved by a mental health professional.
    Sec. 16.  CODE EDITOR DIRECTIVE.
   1.  The Code editor is directed to transfer section 204.17, Code 2025, to section 204.6A.
   2.  The Code editor shall correct internal references in the Code and in any enacted legislation as necessary due to the enactment of this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   BACKGROUND. This bill provides for the regulation of hemp, including hemp products. The regulation of hemp production is governed by federal law. Hemp must have a maximum concentration of the compound delta-9 tetrahydrocannabinol (THC) not exceeding three-tenths of 1 percent as measured on a dry weight basis. A plant or a product manufactured from that plant exceeding the concentration limit is no longer classified as hemp and instead is regulated as a controlled substance under Code chapters 124 and 453B, which include criminal offenses.
   The regulation of hemp has been divided between the production, harvesting, storage, and transportation of raw hemp and the manufacture and sale of hemp products, including consumable hemp products. Prior to 2024, the department of agriculture and land stewardship (DALS) was required to regulate hemp. In 2024 Iowa Acts, chapter 1177, the United States department of agriculture (USDA) assumed regulation over the production of hemp including the issuance of licenses to growers, and remaining state regulatory provisions were transferred from Code chapter 204 to Code chapter 204A. Certain state regulations continue to apply to hemp. A person is required to hold a certificate of analysis (COA) to possess, handle, use, manufacture, market, transport, deliver, or distribute hemp (Code section 204.7). A COA is evidence that hemp originates from a legal source (e.g., a licensee’s production site).
   The department of health and human services (HHS) regulates the manufacture and sale of hemp products under Code chapter 204. Generally, HHS regulations are concerned with consumable hemp products that are metabolized or otherwise subject to a biotransformative process when introduced into the human body. HHS must register any person manufacturing or selling a consumable hemp product on a retail basis (Code section 204.7). Many of the regulations covering consumable hemp products have been adopted by rule (641 IAC 156). In general, consumable hemp products are regulated according to milligrams (mg) per amount or volume (often per serving, per milliliter (ml), or per ounce (oz)).
   BILL’S PROVISIONS —— ADMINISTRATION BY HHS. The bill provides that HHS may adopt rules only to the extent that the rules are necessary to comply with administrative procedures or the health and safety of the public. In addition, the rules must be supported by scientific evidence. During the rulemaking process, 60 days must be set aside for public comment. HHS must establish and administer continuing education programs for its staff covering the regulation of hemp and hemp products. HHS, in cooperation with DALS, must establish and administer outreach programs regarding the regulation of hemp and hemp products. HHS, in cooperation with DALS and the department of revenue, must prepare and submit an annual report to the governor and general assembly summarizing information regarding the production and regulation of hemp and hemp growers licensed by USDA, and information regarding the manufacture and sale of hemp products, including consumable hemp products, by registrants.
   BILL’S PROVISIONS —— REGULATION BY HHS —— SERVING. The bill amends a provision that describes when a hemp product is considered to be a consumable hemp product, including when its maximum total THC is less than or equal to four mg per serving and 10 mg per container on a dry weight basis. The bill increases the mg per serving to five and eliminates the per container measurement.
   BILL’S PROVISIONS —— REGULATION BY HHS —— COA. The bill provides that a valid COA held by a consumable hemp establishment is valid for the shelf life of the consumable hemp product covered by the COA.
   BILL’S PROVISIONS —— REGULATION BY HHS —— THC LIMITS.  The bill imposes maximum limits on certain consumable hemp products, including a consumable hemp product in the form of a tincture (1 mg), a beverage other than a tincture (10 mg per 12 oz), and a topical application (1,000 mg per package). The bill provides that a consumable hemp product cannot exceed 10 mg per serving if the consumable hemp product is manufactured in this state for distribution outside this state.
   BILL’S PROVISIONS —— REGULATION BY HHS —— PACKAGING AND ADVERTISING. The bill provides that a person preparing a consumable product in its final package form must comply with a number of requirements regarding safety, including providing for child resistant safeguards, the separation of servings, the inclusion of a dropper if necessary, label requirements, and a 30-day supply limit. The bill prohibits a person from engaging in deceptive advertising, including by stating that the consumable hemp product is medical cannabidiol. The bill prohibits a person from engaging in intellectual property infringement (e.g., a violation of a trademark), or from presenting a consumable hemp product in a manner that bears a resemblance to a recognizable food product or a manner that is attractive to children.
   BILL’S PROVISIONS —— REGULATION BY HHS —— LOCATIONS.  According to administrative rule, a consumable hemp registration is restricted to one physical location (641 IAC 156.2). The bill provides HHS must allow a person to engage in the retail sale of consumable hemp products under the same registration if the person has been engaged in the retail sale of consumable hemp products for two years without violation, the person maintains the first location as the principal place of residence, and the second location is maintained on a temporary or mobile basis.
   BILL’S PROVISIONS —— REGULATION BY HHS —— USE BY PERSONS UNDER THE AGE OF 21. The bill amends a provision that prohibits a person under 21 years of age to consume, possess, or purchase a consumable hemp product (Code section 204.12E). The bill provides an exception if the action is approved by a mental health professional.
   BILL’S PROVISIONS —— APPLICABLE PENALTIES. Generally, a person engaged in the retail sale of a consumable hemp product without being registered is subject to a civil penalty of not more than $10,000 with each day of a violation considered as a separate offense (Code section 204.14B). A person who is unregistered and a person who is engaged in the retail sale of an item wrongly advertised as a consumable hemp product commits a serious misdemeanor. The bill provides that a person who distributes a consumable hemp product to a person under 21 years of age is guilty of a simple misdemeanor (Code section 204.14D). A person under that age limit who consumes, possesses, or attempts to purchase or purchases a consumable hemp product is subject to a scheduled violation ranging from $70 to $325 (Code section 204.14E). A simple misdemeanor is punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560.