HSB 753 (LSB 5972YC (5) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY BILL BY CHAIRPERSON SORENSEN)

A BILL FOR

An Act regulating hemp and associated products, providing penalties, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
HEMP PRODUCTION

    Section 1.  Section 204A.2, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  9A.  “Raw hemp” means an unprocessed hemp plant after harvested, including seeds, stalks, leaves, and flowers, in the harvested plant’s natural state, and that includes a naturally occurring cannabinoid.
   NEW SUBSECTION.  9B.  “Semisynthetic cannabinoid” means a substance extracted or derived from raw hemp but that is chemically altered to create a compound that may be structurally similar to a naturally occurring cannabinoid, but does not occur naturally.
   NEW SUBSECTION.  9C.  “Synthetic cannabinoid” means a substance with a similar chemical structure and pharmacological activity as a naturally occurring cannabinoid, but that is not extracted or derived from raw hemp and is instead manufactured by chemical or biochemical synthesis.
    Sec. 2.  NEW SECTION.  204A.2B  Applicability.
   This chapter does not apply to a synthetic cannabinoid or semisynthetic cannabinoid.
    Sec. 3.  NEW SECTION.  204A.8A  Hemp as an agricultural commodity.
   1.  a.  Subject to paragraph “b”, and except as otherwise expressly provided in another statute in this or another chapter, hemp shall be considered as an agricultural commodity that may be produced, stored, transferred, transported, or distributed in commercial channels.
   b.  In order to qualify as an agricultural commodity described in subsection 1, hemp must derive from a hemp plant that is produced, harvested, stored, transferred, transported, or distributed in compliance with this chapter, including the federal hemp law or any other applicable federal law.
   2.  Unless otherwise provided by the federal hemp law or any other applicable law, all of the following shall apply:
   a.  The lawful status of a hemp flower shall not be determined solely by the quantity possessed, stored, transported, or transferred, if the hemp flower complies with an acceptable hemp THC level as determined by testing requirements provided in this chapter and expressly provided in other state law or federal law.
   b.  When testing a hemp plant or raw hemp, compliance with an acceptable hemp THC level as applicable shall be determined in accordance with the federal and state law in effect at the time that the hemp plant is produced.
   3.  Except as otherwise provided in federal law or expressly provided in another state statute, a hemp plant or raw hemp that complies with the requirements of this chapter shall not be considered to be a controlled substance or drug solely due to form, physical characteristics, method of production, method of storage, or method of transport.
DIVISION II
HEMP PRODUCTS GENERALLY

    Sec. 4.  NEW SECTION.  204B.1  Findings.
   1.  The general assembly finds and declares all of the following:
   a.  Raw hemp lawfully produced under the Iowa hemp Act as provided in chapter 204A, including the federal hemp law, is an agricultural commodity.
   b.  Hemp is not an inherently intoxicating substance and not regulated as a controlled substance, drug, or tobacco product absent express statutory authorization.
   2.  The general assembly finds and declares that it is necessary to do all of the following:
   a.  State permissible forms of hemp products.
   b.  Distinguish between naturally occurring cannabinoids from synthetically derived substances or semisynthetically derived substances.
   c.  Ensure uniform statewide regulation of hemp products.
   d.  Align regulatory enforcement of hemp products while protecting public safety, agricultural producers, and lawful commerce.
    Sec. 5.  NEW SECTION.  204B.2  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Acceptable hemp THC level” means the same as defined in 7 C.F.R. §990.1.
   2.  “Advertise” means to present a commercial message in any medium, including but not limited to print, radio, television, sign, display, label, tag, or articulation.
   3.  “Agricultural commodity” means any unprocessed good, including animals, agricultural crops, and forestry products grown, raised, produced, or fed in Iowa for sale in commercial channels as regulated under this subtitle.
   4.  “Cannabinoid” means a chemical compound that is unique to and derived from cannabis.
   5.  “Cannabis” means the same as defined in 7 C.F.R. §990.1.
   6.  “Consumable hemp product” means the same as defined in section 204C.1.
   7.  “Controlled substance” means the same as defined in section 124.101.
   8.  “Department” means the department of agriculture and land stewardship.
   9.  “Drug” means the same as defined in section 124.101.
   10.  “Federal hemp law” means the same as defined in section 204A.2.
   11.  “Hemp” means the same as defined in 7 C.F.R. §990.1.
   12.  “Hemp plant” means the Cannabis sativa L. plant, including all derivatives, flowers, extracts, cannabinoids, isomers, acids, and salts.
   13.  a.  “Hemp product” means an item derived from or made by processing hemp, including raw hemp or parts of raw hemp.
   b.  “Hemp product” does not include any of the following:
   (1)  (a)  An item or part of an item that exceeds the maximum total tetrahydrocannabinol concentration allowed for a hemp product under section 124.204, subsection 7.
   (b)  An item or part of an item that is metabolized or is otherwise subject to a biotransformative process when introduced into the human body and that exceeds the maximum total tetrahydrocannabinol concentration allowed for a consumable hemp product.
   (2)  Hemp seed that is capable of germination.
   14.  “Local governmental entity” means any political subdivision, including a county, a city, or any special purpose district.
   15.  “Local legislation” means any ordinance, motion, resolution, amendment, regulation, or rule adopted by a local governmental entity.
   16.  “Naturally occurring cannabinoid” means a cannabinoid present in hemp in its natural state and not created, concentrated, or materially increased through chemical conversion, acid treatment, solvent-based processing, or synthetic alteration.
   17.  “On-farm minimally processed hemp product” means a hemp product that is all of the following:
   a.  Derived from raw hemp originating from the harvest of a hemp plant produced on the USDA licensee’s plot that is part of a farm in which the USDA licensee holds a legal interest.
   b.  In compliance with the requirements of section 204B.7.
   18.  “Raw hemp” means the same as defined in section 204A.2.
   19.  “Semisynthetic cannabinoid” means the same as defined in section 204A.2.
   20.  “Synthetic cannabinoid” means the same as defined in section 204A.2.
   21.  “USDA licensee” means the same as defined in section 204A.2.
    Sec. 6.  NEW SECTION.  204B.3  Applicability.
   This chapter does not apply to a synthetic cannabinoid or semisynthetic cannabinoid.
    Sec. 7.  NEW SECTION.  204B.4  Rulemaking.
   1.  The department of agriculture and land stewardship shall adopt rules pursuant to chapter 17A as necessary to administer and enforce this chapter. The department shall cooperate with the department of inspections, appeals, and licensing and the department of public safety in adopting the rules.
   2.  The rules described in subsection 1 may further define the terms defined in section 204B.2 or define terms used in this chapter that are not defined in section 204B.2.
    Sec. 8.  NEW SECTION.  204B.5  Hemp —— testing requirements and certificate of analysis.
   For purposes of this chapter, requirements for testing hemp and the issuance of a certificate of analysis for hemp are governed by chapter 204A.
    Sec. 9.  NEW SECTION.  204B.6  Hemp as an article.
   1.  Except as otherwise expressly provided in another chapter, a hemp product shall be considered as an article that may be processed, stored, transferred, transported, or distributed in commercial channels as provided in chapter 189.
   2.  A hemp product that complies with the requirements of this chapter or chapter 204C shall not be considered to be a controlled substance solely due to form, physical characteristics, method of production, method of storage, or method of transport.
    Sec. 10.  NEW SECTION.  204B.7  On-farm minimally processed product.
   1.  A USDA licensee acting in compliance with chapter 204A may elect to produce, process, market, transfer, transport, or distribute an on-farm minimally processed hemp product for consumption, if all of the following apply:
   a.  The hemp product is not a drug. 
   b.  The hemp product complies with packaging and labeling requirements, that shall be established by rules adopted by the department based on requirements in chapter 190.
   c.  The hemp product’s use is limited to ingestion or absorption, and not inhalation.
   d.  The hemp product’s maximum total tetrahydrocannabinol concentration is at a level established by rule adopted by the department but must be less than the maximum total tetrahydrocannabinol concentration allowed for a consumable hemp product.
   2.  A hemp product that is intended or advertised for use as described in subsection 1 that does not comply with the requirements of that subsection shall be deemed to be a consumable hemp product regulated under chapter 204C.
    Sec. 11.  NEW SECTION.  204B.8  Civil penalty.
   1.  A person who violates a provision of this chapter is subject to a civil penalty of not less than five hundred dollars and not more than two thousand five hundred dollars. The department shall impose, assess, and collect the civil penalty. Each day that a continuing violation occurs may be considered a separate offense.
   2.  All civil penalties collected under this section shall be deposited into the general fund of the state.
    Sec. 12.  NEW SECTION.  204B.10  On-farm minimally processed hemp product —— persons under legal age —— criminal penalty.
   1.  A person shall not sell, give, or otherwise distribute an on-farm minimally processed hemp product to a person under twenty-one years of age.
   2.  A person who violates subsection 1 is guilty of a simple misdemeanor.
    Sec. 13.  NEW SECTION.  204B.11  On-farm minimally processed hemp product —— persons under legal age —— scheduled violation.
   1.  A person under twenty-one years of age shall not consume, possess, purchase, or attempt to purchase an on-farm minimally processed hemp product.
   2.  A person who violates subsection 1 shall be subject to a scheduled violation in the form of a civil penalty pursuant to section 805.8C, subsection 3, paragraph “d”.
    Sec. 14.  NEW SECTION.  204.12  Government action —— regulation.
   1.  Except as expressly otherwise provided by statute, a state agency shall not act to regulate the production, processing, marketing, transfer, or distribution of a hemp product that complies with the requirements of this chapter and chapter 204C.
   2.  Except as expressly otherwise provided by statute, the provisions of this chapter and rules adopted by the department pursuant to this chapter shall preempt local legislation adopted by a local governmental entity regulating the production, processing, marketing, transfer, or distribution of a hemp product. Any regulation described in this subsection is void and unenforceable.
    Sec. 15.  NEW SECTION.  204B.13  Statutory construction.
   1.  This chapter shall be construed together with chapters 204A and 204C. If there is a conflict between chapter 204A and either this chapter or chapter 204C, the provisions of chapter 204A shall prevail.
   2.  This chapter and chapter 204C shall not be construed or applied to be any of the following:
   a.  Less stringent than required under the federal hemp law.
   b.  In conflict with applicable federal law and related regulation. 
   c.  To affect a regulation in effect or that may become effective that applies to any of the following:
   (1)  Other articles under this subtitle.
   (2)  Product development, product manufacturing, consumer safety, or public health so long as the regulation is consistent with other applicable federal and state law.
   (3)  Medical cannabidiol pursuant to chapter 124E.
   3.  This chapter and chapter 204C shall not be construed or applied to infringe upon the ability of the department of public safety or a local law enforcement agency to obtain a search warrant issued by a court, or enter onto any premises in a manner consistent with the laws of this state and the United States, including Article I, section 8, of the Constitution of the State of Iowa, or the fourth amendment to the Constitution of the United States. 
DIVISION III
CONSUMABLE HEMP PRODUCTS

    Sec. 16.  Section 204.2, subsection 1, Code 2026, is amended to read as follows:
   1.  “Advertise” means to present a commercial message in any medium, including but not limited to print, radio, television, sign, display, label, tag, or articulation the same as defined in section 204B.2.
    Sec. 17.  Section 204.2, subsection 2, paragraph c, subparagraph (1), subparagraph division (a), Code 2026, is amended to read as follows:
   (a)  Designed by the processor, including the manufacturer, to be introduced into the human body.
    Sec. 18.  Section 204.2, subsection 2, paragraph d, subparagraph (2), Code 2026, is amended to read as follows:
   (2)  Hemp processed or otherwise manufactured, marketed, sold, or distributed as food, a food additive, a dietary supplement, or a drug.
    Sec. 19.  Section 204.2, subsection 2, paragraph e, Code 2026, is amended to read as follows:
   e.  “Consumable hemp product” does not include a any of the following: 
   (1)  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.
   (2)  An on-farm minimally processed hemp product as provided in section 204B.7.
    Sec. 20.  Section 204.2, subsection 7, Code 2026, is amended to read as follows:
   7.  “Federal hemp law” means that part of Tit. X of the Agriculture Improvement Act of 2018, Pub. L. No. 115-334, that authorizes hemp production according to a state plan approved by the United States department of agriculture, as provided in §10113 of that Act, amending the Agricultural Marketing Act of 1946, 7 U.S.C. §1621 et seq., including by adding §297A through 297E the same as defined in section 204A.2. 
    Sec. 21.  Section 204.2, subsection 9, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   9.  “Hemp product” means the same as defined in section 204B.2.
    Sec. 22.  Section 204.2, subsection 10, Code 2026, is amended by striking the subsection.
    Sec. 23.  NEW SECTION.  204.4  Rules.
   The department of health and human services shall adopt rules pursuant to chapter 17A to administer this chapter. The department shall adopt the rules in cooperation with the department of agriculture and land stewardship and the department of public safety.
    Sec. 24.  Section 204.7, subsection 1, paragraph a, Code 2026, is amended to read as follows:
   a.  The consumable hemp product is manufactured processed in this state in compliance with this chapter.
    Sec. 25.  Section 204.7, subsections 3, 4, 5, 6, and 7, Code 2026, are amended to read as follows:
   3.  a.  A person manufacturing processing a consumable hemp product in this state shall register with the department of health and human services on a form prescribed by the department of health and human services by rule.
   b.  The department shall not prescribe a registration form for a USDA licensee who sells an on-farm minimally processed hemp product in conformation with section 204B.7.
   c.  The department of health and human services may impose a fee, established by the department of health and human services by rule, on a registrant not to exceed the cost of processing the registration.
   d.  The department of health and human services shall adopt rules for the revocation of a registration issued to a manufacturer processor who manufactures processes a consumable hemp product not in compliance with this chapter.
   4.  a.  A person selling a consumable hemp product in this state shall register with the department of health and human services on a form prescribed by the department of health and human services by rule and shall keep on the premises of the person’s business a copy of the certificate of analysis issued pursuant to section 204.8 204B.5 for the hemp contained in the consumable hemp products sold by the person.
   b.  The department shall not prescribe a registration form for a USDA licensee who sells an on-farm minimally processed hemp product in conformation with section 204B.7.
   c.  The department of health and human services may impose a fee, established by the department of health and human services by rule, on a registrant not to exceed the cost of processing the registration.
   d.  The department of health and human services 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.
   5.  Except as otherwise provided in this section, 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.
   6.  5.  A consumable hemp product manufactured processed in another jurisdiction pursuant to a state or tribal plan approved by the United States department of agriculture pursuant to the federal hemp law may be imported for use by a consumer or sale by a retailer to a consumer if the state has substantially similar testing requirements as those provided in section 204.8 204B.5.
   7.  6.  A consumable hemp product manufactured, sold, or consumed in compliance with this section 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. 26.  Section 204.14A, subsection 1, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   A person shall not possess, use, manufacture process, market, transport, deliver, or distribute harvested hemp or a hemp product if the intended use of the harvested hemp or hemp product is introduction into the body of a human by any method of inhalation, including any of the following:
    Sec. 27.  Section 204.14A, subsection 3, Code 2026, is amended to read as follows:
   3.  A person required to be registered to manufacture process 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 or a semisynthetic hemp product.
    Sec. 28.  Section 204.15A, subsection 1, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   The department of health and human services may order the confiscation and disposal of a consumable hemp product based on any of the following:
    Sec. 29.  Section 204.15A, subsection 1, paragraph c, Code 2026, is amended to read as follows:
   c.  It is a consumable hemp product manufactured processed, sold, or distributed by a person who is not registered with the department of health and human services as is required in section 204.7.
    Sec. 30.  Section 204.17, subsection 1, paragraphs b and c, Code 2026, are amended to read as follows:
   b.  Other laws of this state, including any administrative rules, relating to product development, product manufacturing processing, consumer safety, or public health so long as the state law is compatible with applicable federal law.
   c.  Local law relating to product development, product manufacturing processing, 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.
    Sec. 31.  Section 204.17, Code 2026, is amended by striking the section and inserting in lieu thereof the following:
   204.17  Statutory construction. 
   This chapter shall be construed as provided in section 204B.12.
    Sec. 32.  REPEAL.  Section 204.8, Code 2026, is repealed.
    Sec. 33.  CODE EDITOR DIRECTIVE.
   1.  The Code editor is directed to make the following transfers:
   a.  Section 204.2 to section 204C.1.
   b.  Section 204.4 to section 204C.2.
   c.  Section 204.7 to section 204C.3.
   d.  Section 204.12 to section 204C.5.
   e.  Section 204.14A to section 204B.9.
   f.  Section 204.14B to section 204C.7.
   g.  Section 204.14C to section 204C.8.
   h.  Section 204.14D to section 204C.9.
   i.  Section 204.14E to section 204C.10.
   j.  Section 204.14F to section 204C.11.
   k.  Section 204.15A to section 204C.12.
   l.  Section 204.17 to section 204C.15.
   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.
DIVISION IV
CORRESPONDING CHANGES

    Sec. 34.  Section 80.5, subsection 7, paragraph b, Code 2026, is amended to read as follows:
   b.  Notwithstanding paragraph “a”, the department is not required to provide such assistance if the marijuana plants are hemp produced in accordance with the provisions of chapter 204 204A.
    Sec. 35.  Section 124.204, subsection 7, paragraph b, Code 2026, is amended to read as follows:
   b.  A hemp product as provided in chapter 204 chapters 204B and 204C with a maximum tetrahydrocannabinol concentration, inclusive of any isomers, derivatives, and analogs, whether naturally occurring or synthesized, that does not exceed three-tenths of one percent on a dry weight basis.
    Sec. 36.  Section 124.401, subsection 6, paragraph c, Code 2026, is amended to read as follows:
   c.  A hemp product as provided in chapter 204 chapters 204B and 204C. 
    Sec. 37.  Section 453B.17, subsection 3, Code 2026, is amended to read as follows:
   3.  A hemp product as provided in chapter 204 chapters 204B and 204C. 
    Sec. 38.  Section 805.8C, subsection 3, paragraph d, subparagraph (1), unnumbered paragraph 1, Code 2026, is amended to read as follows:
   For violations a violation of section 204.14E 204B.11 or 204C.10, the scheduled fine is as follows:
    Sec. 39.  Section 805.10, subsection 1, paragraph e, Code 2026, is amended to read as follows:
   e.  When a violation charged involves the consumption, possession, purchase, or attempt to purchase of a consumable hemp product as provided in section 204.14E 204C.10, for which there is a community service sentence.
DIVISION V
EFFECTIVE DATE

    Sec. 40.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   BACKGROUND —— CANNABIS. Current federal law describes hemp as a species of cannabis (sativa L.) having a maximum concentration of delta-9 tetrahydrocannabinol (THC) that does not exceed 0.3 percent on a dry weight basis (7 C.F.R. §990.1 and Code section 204A.2, citing to Code section 124.204(7)). A cannabis plant exceeding that concentration is no longer classified as hemp and is regulated as a controlled substance under Code chapters 124 and 453B (Code section 204A.4). The applicable criminal penalty for an offense under Code chapters 124 and 453B ranges from imprisonment in a county jail for not more than six months or a fine of not more than $1,000 to 50 years imprisonment and a fine of not more than $1 million (see Code sections 124.401 and 453B.12).
   BACKGROUND —— HEMP PRODUCTION. Code chapter 204A is codified as part of Title V, subtitle 4, which provides for the regulation of agricultural commodities and products by the department of agriculture and land stewardship (DALS). The Code chapter recognizes the regulation of hemp production and transportation under a program administered by the United States department of agriculture (USDA). A person producing a hemp plant on a lot as regulated by USDA is referred to as a USDA licensee (Code section 204A.2). One federal requirement provides that a person who delivers or is delivered hemp must possess a certificate of analysis (COA) prepared by an independent laboratory (Code section 204A.6). A COA verifies that the hemp or hemp product complies with THC potency levels and the presence of any contaminants.
   BACKGROUND —— CONSUMABLE HEMP PRODUCTS. Code chapter 204 regulates the manufacture and distribution (e.g., sale) of hemp products, which must comply with the maximum total THC concentration limit (Code sections 124.7 and 204.2(9)). This includes a consumable hemp product. A hemp product is deemed to be a consumable hemp product if it is designed to be introduced into the human body, is advertised as an item to be introduced into the human body, or is distributed (e.g., offered for sale) to be introduced into the human body (Code section 204.2(2)). A consumable hemp product may be digested, such as food, internally absorbed, or absorbed through the skin. Finally, the consumable hemp product must meet a maximum quantity limit not to exceed 4 milligrams per serving and 10 milligrams per container measured on a dry weight basis. A person is prohibited from selling a hemp product that may be inhaled (Code section 204.14A).
   BACKGROUND —— CONSUMABLE HEMP PRODUCTS REGULATION. A consumable hemp product is regulated by the department of health and human services (HHS), which provides for the registration of persons engaged in the product’s manufacture and retail sale and provides for product labeling requirements (Code section 204.7 and 641 IAC ch. 156). A person engaged in the retail sale of a consumable hemp product without being registered with HHS is subject to a civil penalty of not more than $10,000 (Code section 204.14B) and commits a serious misdemeanor (Code section 204.14C). 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.
   BACKGROUND —— CHANGES IN FEDERAL LAW. Congress enacted Pub. L. No. 119-37, Division B, which revised provisions regulating hemp first enacted in the federal Agricultural Improvement Act of 2018. The new federal law changes the standard of a maximum 0.3 percent delta-9 THC on a dry weight basis to a total THC standard that includes delta-9 THC, tetrahydrocannabinolic acid (THCA), delta-8 THC, and all other tetrahydrocannabinols. The new federal law excludes from the definition of “hemp” a cannabinoid that is not naturally produced by the cannabis plant. For a hemp product, the per-container limit cannot exceed 0.4 milligrams of total THC. The effective date of the new federal law is November 12, 2026.
   BILL’S PROVISIONS —— ORGANIZATION. The bill includes three Code chapters regulating hemp and hemp products. The bill amends Code chapter 204A by recognizing the production and transportation of raw hemp under federal license (a hemp plant produced and harvested and raw hemp stored and transported by a USDA licensee). The bill creates new Code chapter 204B, which provides for the general regulation of a hemp product by DALS as an article under Code chapter 189. The bill amends Code chapter 204 by providing that regulation by HHS is limited to a consumer hemp product. The provisions in Code chapter 204 are transferred to Code chapter 204C.
   BILL’S PROVISIONS —— CHANGES IN FEDERAL LAW (CODE CHAPTER 204A, NEW CODE CHAPTER 204B, AND TRANSFERRED CODE CHAPTER 204C). The bill does not refer to changes in federal law.
   BILL’S PROVISIONS —— HEMP (CODE CHAPTER 204A). The bill specifically excludes from the definition of hemp a synthetic cannabinoid (not derived from a raw naturally occurring cannabinoid) and a semisynthetic cannabinoid (extracted or derived from raw hemp but chemically altered). The bill provides that the lawful status of a hemp flower cannot be determined solely by the quantity possessed, stored, transported, or transferred, if the hemp flower complies with an acceptable hemp THC level. The bill also provides that when testing a hemp plant or raw hemp, compliance with an acceptable hemp THC level as applicable is determined in accordance with the federal and state law in effect at the time that the hemp plant is produced.
   BILL’S PROVISIONS —— HEMP PRODUCTS GENERALLY. The bill provides that the provisions in new Code chapter 204B do not apply to a synthetic cannabinoid or semisynthetic cannabinoid. The bill provides that a hemp product is considered to be an article that may be processed, stored, transferred, transported, or distributed in commercial channels as provided in Code chapter 189. Current law recognizes that same status for hemp and hemp products (Code section 189.1).
   The bill provides that a USDA licensee acting in compliance with new Code chapter 204B may elect to produce, process, market, transfer, transport, or distribute an on-farm minimally processed hemp product, subject to a number of conditions: (1) the hemp product cannot be a drug, (2) the hemp product must comply with packaging and labeling requirements established by DALS, (3) the hemp product must have a use limited to ingestion or absorption, and (4) the hemp product must have a total THC concentration established by DALS by rule that is less than the maximum allowed for a consumable hemp product. The bill does not specify a specific milligrams per serving or per container limit.
   A person who violates a provision of new Code chapter 204B is subject to a civil penalty of not less than $500 and not more than $2,500. A person who distributes an on-farm minimally processed hemp product to a person under 21 years of age is guilty of a simple misdemeanor. 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. An underage person who consumes an on-farm minimally processed hemp product is subject to a scheduled fine ranging from $70 to $325.
   The bill provides that a state agency cannot act to regulate the production, processing, marketing, transfer, or distribution of a hemp product that complies with the requirements of new Code chapter 204B and transferred Code chapter 204C. The provisions of new Code chapter 204B and transferred Code chapter 204C preempt local legislation adopted by a local governmental entity regulating the production, processing, marketing, transfer, or distribution of a hemp product.
   The bill provides that new Code chapter 204B and transferred Code chapter 204C are subject to a number of provisions governing statutory construction. The bill provides that provisions cannot be (1) less stringent than required under the federal hemp law; (2) read in conflict with applicable federal law; (3) affect a regulation in effect or that may become effective that applies to other articles generally, product development, product manufacturing, consumer safety, or public health so long as the regulation is consistent with other applicable federal and state law, and (4) medical cannabidiol pursuant to chapter 124E. The provisions cannot be construed to infringe upon the ability of the department of public safety or a local law enforcement agency to conduct lawful searches.
   BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (TRANSFERRED CODE CHAPTER 204C). The bill amends a number of provisions in Code chapter 204 that are transferred to Code chapter 204B or 204C. The bill changes the term “manufacturing” to “processing”. The bill provides that an on-farm minimally processed hemp product is not subject to registration by HHS.
   BILL’S PROVISIONS —— CORRESPONDING CHANGES. The bill makes corresponding changes to provisions in other Code chapters.
   BILL’S PROVISIONS —— EFFECTIVE DATE. The bill takes effect upon enactment.