House File 2605 - Reprinted HOUSE FILE 2605 BY COMMITTEE ON PUBLIC SAFETY (SUCCESSOR TO HSB 665) (COMPANION TO SF 2352 BY COMMITTEE ON JUDICIARY) (As Amended and Passed by the House March 12, 2024 ) A BILL FOR An Act providing for the regulation of hemp and hemp products, 1 providing penalties, and making penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 HF 2605 (3) 90 da/ns/md

H.F. 2605 DIVISION I 1 IOWA HEMP ACT 2 Section 1. Section 204.2, Code 2024, is amended by adding 3 the following new subsections: 4 NEW SUBSECTION . 01. “Advertise” means to present a 5 commercial message in any medium, including but not limited 6 to print, radio, television, sign, display, label, tag, or 7 articulation. 8 NEW SUBSECTION . 6A. “Distribute” means to transfer 9 possession. 10 NEW SUBSECTION . 15A. “Registrant” means a person who is 11 registered with the department of health and human services 12 pursuant to section 204.7. 13 Sec. 2. Section 204.2, subsection 2, paragraph c, Code 2024, 14 is amended to read as follows: 15 c. A hemp product is deemed to be a consumable hemp product 16 if it is any of the following all of the following apply : 17 (1) It is any of the following: 18 (a) Designed by the processor, including the manufacturer, 19 to be introduced into the human body. 20 (2) (b) Advertised as an item to be introduced into the 21 human body. 22 (3) (c) Distributed, exported, or imported , offered for 23 sale , or distribution sold to be introduced into the human 24 body. 25 (2) Its maximum total tetrahydrocannabinol concentration is 26 less than or equal to the lesser of the following: 27 (a) Three-tenths of one percent on a dry weight basis. 28 (b) Four milligrams per serving and ten milligrams per 29 container on a dryweight basis. 30 Sec. 3. Section 204.2, subsection 11, paragraph b, 31 subparagraph (1), Code 2024, is amended to read as follows: 32 (1) (a) An item or part of an item with a maximum 33 tetrahydrocannabinol concentration that exceeds three-tenths 34 of one percent on a dry weight basis the maximum total 35 -1- HF 2605 (3) 90 da/ns/md 1/ 8

H.F. 2605 tetrahydrocannabinol concentration allowed for a hemp product 1 under section 124.204, subsection 7 . 2 (b) An item or part of an item that is metabolized or 3 is otherwise subject to a biotransformative process when 4 introduced into the human body and that exceeds the maximum 5 total tetrahydrocannabinol concentration allowed for a 6 consumable hemp product. 7 Sec. 4. Section 204.7, subsection 8, paragraph a, 8 subparagraph (3), Code 2024, is amended to read as follows: 9 (3) The consumable hemp product complies with packaging 10 and labeling requirements, which shall be established by rules 11 adopted by the department of health and human services by rule . 12 Each container storing consumable hemp shall be affixed with 13 a notice advising consumers regarding the risks associated 14 with its use. The department of health and human services 15 shall adopt rules regarding the language of the notice and its 16 display on the container. 17 Sec. 5. Section 204.7, subsection 8, paragraph a, Code 2024, 18 is amended by adding the following new subparagraph: 19 NEW SUBPARAGRAPH . (4) The consumable hemp product complies 20 with restrictions upon the sale or other distribution of a 21 consumable hemp product established by rules adopted by the 22 department of health and human services. 23 Sec. 6. Section 204.7, subsection 8, Code 2024, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . 0b. (1) A person is engaged in the retail 26 sale of a consumable hemp product, if any of the following 27 apply: 28 (a) The person offers to distribute a consumable hemp 29 product to a consumer in exchange for consideration. 30 (b) The person is an owner of a business that distributes 31 consumable hemp products to consumers in exchange for 32 consideration. 33 (c) The person is a business that distributes consumable 34 hemp products to consumers in exchange for consideration and 35 -2- HF 2605 (3) 90 da/ns/md 2/ 8

H.F. 2605 presents a consumable hemp product to a consumer in the form 1 of a gift. 2 (2) A person, including a business, is engaged in the sale 3 of a consumable hemp product regardless of whether the person 4 is registered with the department of health and human services 5 as provided in this section. 6 Sec. 7. Section 204.12, subsection 1, Code 2024, is amended 7 to read as follows: 8 1. A Unless another civil penalty is otherwise provided in 9 this chapter, a person who violates a provision of this chapter 10 is subject to a civil penalty of not less than five hundred 11 dollars and not more than two thousand five hundred dollars. 12 The department shall impose, assess, and collect the civil 13 penalty. Each day that a continuing violation occurs may be 14 considered a separate offense. 15 Sec. 8. Section 204.14A, Code 2024, is amended by adding the 16 following new subsections: 17 NEW SUBSECTION . 1A. A person shall not use, market, or 18 distribute a raw or dried flower form of hemp for the purposes 19 of inhalation as described in subsection 1, paragraph “b” 20 or “c” . Any raw or dried flower form of hemp marketed or 21 distributed within this state shall contain the following 22 notice on the raw or dried product container: 23 This is a raw or dried agricultural commodity not suitable or 24 intended for human consumption in conjunction with Iowa Code 25 section 204.14A, subsection 1, paragraph “b” or “c” . 26 NEW SUBSECTION . 1B. A person required to be registered 27 to manufacture or sell consumable hemp under section 204.7 28 shall not manufacture, produce, distribute, market, or sell a 29 synthetic consumable hemp product, as defined by rules adopted 30 by the department of health and human services. 31 Sec. 9. Section 204.14A, subsection 2, Code 2024, is amended 32 to read as follows: 33 2. A person who violates subsection 1 this section is guilty 34 of a serious misdemeanor. 35 -3- HF 2605 (3) 90 da/ns/md 3/ 8

H.F. 2605 Sec. 10. NEW SECTION . 204.14B Sale of consumable hemp 1 product —— failure to register —— civil penalty. 2 1. A person engaged in the retail sale of a consumable 3 hemp product in this state without being registered with the 4 department of health and human services as required in section 5 204.7 shall be subject to a civil penalty of not more than ten 6 thousand dollars. The department of health and human services 7 shall impose, assess, and collect the civil penalty. Each day 8 that a continuing violation occurs may be considered a separate 9 offense. 10 2. All civil penalties collected under this section shall be 11 deposited into the general fund of the state. 12 3. A person in violation of this section is not also subject 13 to a civil penalty as provided in section 204.12. 14 Sec. 11. NEW SECTION . 204.14C Sale of consumable hemp 15 product —— failure to register —— criminal penalty. 16 1. a. A person engaged in the retail sale of a consumable 17 hemp product who is not registered with the department of 18 health and human services as required in section 204.7 commits 19 a serious misdemeanor. 20 b. A person engaged in the retail sale of an item advertised 21 as a consumable hemp product that is not a consumable hemp 22 product commits a serious misdemeanor. 23 2. This section shall be presumed not to be in conflict with 24 or limit a prosecution for a violation of any other provision 25 of law, including but not limited to chapter 124 or 21 U.S.C. 26 ch. 13. 27 Sec. 12. NEW SECTION . 204.14D Persons under legal age —— 28 criminal offense. 29 1. A person shall not sell, give, or otherwise distribute 30 a consumable hemp product to a person under twenty-one years 31 of age. 32 2. A person who violates subsection 1 is guilty of a simple 33 misdemeanor. 34 Sec. 13. NEW SECTION . 204.14E Persons under legal age —— 35 -4- HF 2605 (3) 90 da/ns/md 4/ 8

H.F. 2605 scheduled violation and community service. 1 1. A person under twenty-one years of age shall not consume, 2 possess, purchase, or attempt to purchase a consumable hemp 3 product. 4 2. A person who violates subsection 1 shall be subject to a 5 scheduled violation in the form of a civil penalty pursuant to 6 section 805.8C, subsection 3, paragraph “d” . 7 3. In addition to the imposition of a civil penalty as 8 provided in subsection 2, a person who violates subsection 1 9 shall be subject to a court appearance as provided in section 10 805.10. The court shall sentence the person to perform a 11 specified number of hours of unpaid community service as deemed 12 appropriate by the court subject to the following: 13 a. For a first violation, eight hours, unless waived by the 14 court. 15 b. For a second offense, twelve hours. 16 c. For a third or subsequent offense, sixteen hours. 17 4. A person who violates this section is not subject to a 18 civil penalty as provided in section 204.12. 19 5. A person does not violate subsection 1 by possessing 20 a consumable hemp product if the person is employed by a 21 registrant and the person is possessing the consumable hemp 22 product as part of their employment. 23 Sec. 14. NEW SECTION . 204.14F Persons under legal age —— 24 exception —— cooperation with department of public safety or 25 local law enforcement agency. 26 1. a. A person who would otherwise act to commit an offense 27 under section 204.14D is not guilty of that offense if the 28 person acts under the direction or consent of the department 29 of public safety or a local law enforcement agency as part of 30 an enforcement investigation. 31 b. A person who would otherwise act to commit a violation 32 under section 204.14E is not subject to that offense if the 33 person acts under the direction or consent of the department 34 of public safety or a local law enforcement agency as part of 35 -5- HF 2605 (3) 90 da/ns/md 5/ 8

H.F. 2605 an enforcement investigation. 1 2. In enforcing this section, the department of public 2 safety or a local law enforcement agency shall take all 3 measures necessary to ensure that a consumable hemp product 4 is not introduced into the body of a person under the age of 5 twenty-one. 6 3. Notwithstanding chapter 22, any personal information 7 identifying the person committing an offense or violation as 8 described in this section shall be confidential. 9 Sec. 15. NEW SECTION . 204.15A Hemp products —— order of 10 confiscation and disposal. 11 1. The department of health and human services may order the 12 confiscation and disposal of a hemp product based on any of the 13 following: 14 a. It is falsely advertised, sold, or distributed as a 15 consumable hemp product. 16 b. It exceeds the maximum tetrahydrocannabinol concentration 17 allowed under section 124.204, subsection 7, or this chapter. 18 c. It is a consumable hemp product manufactured, sold, 19 or distributed by a person who is not registered with the 20 department of health and human services as is required in 21 section 204.7. 22 2. The department of health and human services shall act 23 in consultation with the department of public safety. The 24 department of health and human services may request assistance 25 from the department of public safety or a local law enforcement 26 agency as necessary to carry out the provisions of this 27 section. The department of health and human services, upon 28 request, shall deliver any sample of the item to the department 29 of public safety or a local law enforcement agency. 30 3. A person required to be registered with the department of 31 health and human services as provided in section 204.7 shall 32 pay the department of health and human services all actual 33 and reasonable costs of the destruction of the item. If that 34 department assumes any amount of the costs, it may charge that 35 -6- HF 2605 (3) 90 da/ns/md 6/ 8

H.F. 2605 amount to the person. 1 Sec. 16. Section 805.8C, subsection 3, Code 2024, is amended 2 by adding the following new paragraph: 3 NEW PARAGRAPH . d. (1) For violations of section 204.14E, 4 the scheduled fine is as follows: 5 (a) If the violation is a first offense, the scheduled fine 6 is seventy dollars. 7 (b) If the violation is a second offense, the scheduled fine 8 is one hundred thirty-five dollars. 9 (c) If the violation is a third or subsequent offense, the 10 scheduled fine is three hundred twenty-five dollars. 11 (2) The fine shall be imposed as a civil penalty. 12 (3) The crime services surcharge under section 911.1 shall 13 not be added to the penalty, and the court costs pursuant to 14 section 805.9, subsection 6, shall not be imposed. 15 (4) Notwithstanding section 805.12, any civil penalty paid 16 under this subsection shall be retained by the city or county 17 enforcing the violation. 18 Sec. 17. Section 805.10, subsection 1, Code 2024, is amended 19 by adding the following new paragraph: 20 NEW PARAGRAPH . e. When a violation charged involves the 21 consumption, possession, purchase, or attempt to purchase of 22 a consumable hemp product as provided in section 204.14E, for 23 which there is a community service sentence. 24 DIVISION II 25 REGULATION OF ALCOHOLIC BEVERAGES 26 Sec. 18. Section 123.49, subsection 2, Code 2024, is amended 27 by adding the following new paragraph: 28 NEW PARAGRAPH . l. Sell, give, or otherwise supply any 29 alcoholic beverage containing tetrahydrocannabinol, including 30 any isomers, derivatives, or analogs of tetrahydrocannabinol, 31 whether naturally occurring or synthesized, to any person on 32 the licensed premises. 33 Sec. 19. NEW SECTION . 123.49A Restriction on alcoholic 34 beverages containing tetrahydrocannabinol. 35 -7- HF 2605 (3) 90 da/ns/md 7/ 8

H.F. 2605 A holder of a license, permit, or certificate of compliance 1 issued by the department under this chapter shall not 2 manufacture, import, or sell at wholesale in this state an 3 alcoholic beverage containing tetrahydrocannabinol, including 4 any isomers, derivatives, or analogs of tetrahydrocannabinol, 5 whether naturally occurring or synthesized. 6 -8- HF 2605 (3) 90 da/ns/md 8/ 8