House File 2641 - Reprinted HOUSE FILE 2641 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 2510) (SUCCESSOR TO HSB 560) (COMPANION TO SF 2209 BY COMMITTEE ON AGRICULTURE) (As Amended and Passed by the House April 10, 2024 ) A BILL FOR An Act relating to agriculture, by providing for the 1 administration of programs and regulations, making 2 appropriations, providing penalties, and including effective 3 date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 2641 (2) 90 da/ns/md

H.F. 2641 DIVISION I 1 IOWA-FOALED HORSES 2 Section 1. Section 99D.22, subsection 2, paragraph b, 3 subparagraph (3), Code 2024, is amended to read as follows: 4 (3) (a) Continuous For a thoroughbred foal, continuous 5 residency from December 31 15 until the foal is inspected if 6 the mare was bred by other than an Iowa registered stallion and 7 is not bred back to an Iowa registered stallion. 8 (b) For a standardbred foal or quarter horse foal, 9 continuous residency from January 31 until the foal is 10 inspected if the mare was bred by other than an Iowa registered 11 stallion and is not bred back to an Iowa registered stallion. 12 DIVISION II 13 AGRICULTURAL MARKETING 14 Sec. 2. Section 159.20, subsection 2, Code 2024, is amended 15 to read as follows: 16 2. The department shall establish and administer a 17 choose Iowa promotional program as provided in part 2 of 18 this subchapter , in order to provide consumers a choice in 19 programs that advance the purchasing food items of agricultural 20 commodities produced on Iowa farms and Iowa products that 21 originate as an agricultural commodity commodities produced on 22 Iowa farms under this title, including chapter 187 . 23 Sec. 3. Section 159.20, subsection 3, unnumbered paragraph 24 1, Code 2024, is amended to read as follows: 25 As used in this subchapter section : 26 Sec. 4. Section 159.28, Code 2024, is amended to read as 27 follows: 28 159.28 Choose Iowa promotional program. 29 1. The department shall establish and administer a choose 30 Iowa promotional program to advertise for retail sale on a 31 retail basis a food item that originates as an agricultural 32 commodity produced on an Iowa farm, and an Iowa product that 33 may include any of the following: 34 a. An agricultural commodity produced on an Iowa farm , 35 -1- HF 2641 (2) 90 da/ns/md 1/ 19

H.F. 2641 except that it may be prepared for sale by washing or packaging 1 in this state. 2 b. A product, if it is An agricultural commodity processed 3 in this state and any of its ingredients , if its components 4 originate as an agricultural commodity produced on an Iowa 5 farm. 6 2. a. The department may adopt rules further defining an 7 Iowa farm , Iowa agricultural commodity, and Iowa product; and 8 describing how an Iowa agricultural commodity originates on an 9 Iowa farm. 10 b. The department may adopt rules providing for the 11 acceptable use of ingredients originating a component that 12 originates from an agricultural commodities commodity not 13 produced on an Iowa farms farm . In adopting the rules, the 14 department may consider whether the ingredient component is 15 an incidental additive or other component that the department 16 determines is or insignificant part of an Iowa product . 17 Sec. 5. Section 159.29, subsections 1 and 5, Code 2024, are 18 amended to read as follows: 19 1. As part of the choose Iowa promotional program, the 20 department may establish a choose Iowa logo to identify a food 21 item originating as an agricultural commodity produced on an 22 Iowa farm an Iowa product . 23 5. The use of a choose Iowa logo does not do any of the 24 following: 25 a. Provide an express or implied guarantee or warranty 26 concerning the safety, fitness, merchantability, or use of a 27 food item product . 28 b. Supersede, revise, or replace a state or federal labeling 29 requirement, including but not limited to a provision in the 30 federal Fair Packaging and Labeling Act, 15 U.S.C. §1451 et 31 seq. 32 c. Indicate the grade, specification, standard, or value of 33 any food item agricultural commodity, component, or product . 34 Sec. 6. Section 159.31, subsections 1, 2, and 3, Code 2024, 35 -2- HF 2641 (2) 90 da/ns/md 2/ 19

H.F. 2641 are amended to read as follows: 1 1. A choose Iowa fund is established created in the state 2 treasury under the management and control of the department. 3 2. The fund shall include moneys collected as fees by 4 the department as provided in section 159.30 187.303 , moneys 5 appropriated by the general assembly, and other moneys 6 available to and obtained or accepted by the department, 7 including moneys from public or private sources. 8 3. Moneys in the fund are appropriated to the department 9 and shall be used exclusively to carry out the provisions of 10 this part administer the programs created in this subchapter 11 as determined and directed by the department, and shall not 12 require further special authorization by the general assembly. 13 Sec. 7. Section 159.31A, Code 2024, is amended to read as 14 follows: 15 159.31A Dairy innovation fund and revitalization program. 16 1. As used in this section unless the context otherwise 17 requires: 18 a. “Financial assistance” means assistance provided only 19 from the moneys and assets legally available to the department 20 pursuant to this section and includes assistance in the form of 21 grants, low-interest loans, and forgivable loans. 22 b. “Fund” means the dairy innovation fund. 23 c. “Located in” means the place or places at which 24 a business’s operations are located and where at least 25 ninety-eight percent of the business’s employees work, or where 26 employees that are paid at least ninety-eight percent of the 27 business’s payroll work. 28 d. “Program” means the dairy innovation program. 29 2. a. The fund is created in the state treasury under 30 the control of the department and consists of any moneys 31 appropriated to the fund by the general assembly and any other 32 moneys available to or obtained or accepted by the department 33 for placement in the fund. Moneys in the fund are appropriated 34 to the department to award financial assistance as provided 35 -3- HF 2641 (2) 90 da/ns/md 3/ 19

H.F. 2641 under the program. The department shall use any moneys 1 specifically appropriated for purposes of this section only for 2 the purposes of the program. 3 b. Notwithstanding section 8.33 , moneys in the fund 4 that remain unencumbered or unobligated at the close of the 5 fiscal year shall not revert but shall remain available for 6 expenditure for the purposes designated until the close of the 7 succeeding fiscal year. 8 1. A dairy innovation and revitalization program is created 9 within the department. The purpose of the program is to 10 promote the development, modernization, and expansion of this 11 state’s dairy industry. 12 3. 2. The In administering the program, the department 13 shall establish and administer the program for the purpose of 14 awarding award financial assistance to eligible businesses 15 engaged in to support projects that do one or more of the 16 following: 17 a. Expand or refurbish existing milk plants or establish a 18 new milk plant, operating pursuant to a permit issued pursuant 19 to section 192.111 or 194.3A . 20 b. Expand or refurbish existing mobile dairy processing 21 units, or establish new mobile dairy processing units. 22 c. Rent buildings, refrigeration facilities, or freezer 23 facilities, or equipment necessary to expand dairy processing 24 capacity, including mobile dairy or refrigeration units used 25 exclusively for dairy processing. 26 d. Incorporate methods and technologies that reduce farm 27 labor associated with milk production and storage, including 28 but not limited to the use of robotics and processes or systems 29 that operate using computerized equipment or machinery. 30 4. 3. The department shall establish eligibility criteria 31 for the program by rule . The eligibility criteria must include 32 all of the following: 33 a. The business must be located in this state. 34 b. The business must not have been subject to any regulatory 35 -4- HF 2641 (2) 90 da/ns/md 4/ 19

H.F. 2641 enforcement action related to federal, state, or local 1 environmental, worker safety, food processing, or food safety 2 laws, rules, or regulations within the last five years. 3 c. The business must only employ individuals legally 4 authorized to work in this state. 5 d. The business must not currently be in bankruptcy. 6 e. The business must employ less than fifty individuals. 7 5. 4. A An eligible business seeking financial assistance 8 under this section shall make application to the department in 9 the manner and on forms prescribed by the department by rule . 10 6. 5. Applications for financial assistance under this 11 section shall be accepted during one or more annual application 12 periods to be determined established by the department by 13 rule . Upon reviewing and scoring all applications that are 14 received during an application period, and subject to funding 15 the availability of moneys , the department may award financial 16 assistance to eligible businesses. A financial assistance 17 award shall not exceed the amount of eligible project costs 18 included in the eligible business’s application. Priority 19 shall be given to eligible businesses whose proposed project 20 or projects under subsection 3 will 2 are most likely to do any 21 one or more of the following: 22 a. Create new jobs. 23 b. Create or expand opportunities for local small-scale milk 24 producers to market pasteurized milk and milk products under 25 private labels. 26 c. Provide greater flexibility or convenience for local 27 small-scale farmers to have milk processed. 28 d. Reduce labor associated with the on-farm production and 29 storage of milk. 30 7. 6. A An eligible business that is awarded financial 31 assistance under this section may apply for financial 32 assistance under other programs administered by the authority 33 department . 34 8. The department shall adopt rules pursuant to chapter 17A 35 -5- HF 2641 (2) 90 da/ns/md 5/ 19

H.F. 2641 to administer this section . 1 Sec. 8. NEW SECTION . 187.101 Short title. 2 This chapter shall be known and may be cited as the “Choose 3 Iowa Act” . 4 Sec. 9. NEW SECTION . 187.102 Definitions. 5 As used in this chapter, unless the context otherwise 6 requires: 7 1. “Agricultural commodity” means an animal or plant, or raw 8 material originating from an animal or plant. 9 2. “Component” means an agricultural commodity that is 10 combined to form a product during processing. 11 3. “Department” means the department of agriculture and land 12 stewardship. 13 4. “Farm” means land and associated structures used to 14 produce an agricultural commodity. 15 5. a. “Financial assistance” means support provided by the 16 department to an eligible business under this chapter from 17 moneys or other assets legally available to the department. 18 b. “Financial assistance” includes any form of grant, 19 low-interest loan, or forgivable loan. 20 6. “Food item” means an agricultural commodity, or an item 21 processed from an agricultural commodity, that is fit for human 22 consumption. 23 7. “Fund” means the choose Iowa fund created in section 24 187.201. 25 8. “Horticulture item” means any of the following: 26 a. A nursery, floral, or greenhouse plant. 27 b. A product processed from a nursery, floral, or greenhouse 28 plant, including a seed, rooting, cutting, tissue culture, 29 seedling, or other propagation material. 30 9. “Located in” means the place or places at which 31 a business’s operations are located and where at least 32 ninety-eight percent of the business’s employees work, or where 33 employees that are paid at least ninety-eight percent of the 34 business’s payroll work. 35 -6- HF 2641 (2) 90 da/ns/md 6/ 19

H.F. 2641 10. “Natural fiber item” means fiber originating from 1 an agricultural commodity for use in processing, including 2 manufacturing into a textile, apparel, or other similar 3 product. 4 11. “Process” means to prepare a product that includes an 5 agricultural commodity alone or as a component. 6 12. a. “Product” means an agricultural commodity that 7 in its raw or processed state is moveable at the time of its 8 retail sale. 9 b. “Product” includes but is not limited to a food item, 10 horticulture item, or natural fiber item. 11 Sec. 10. NEW SECTION . 187.103 Administration. 12 The department shall adopt all rules under chapter 17A as it 13 determines necessary or desirable to administer this chapter. 14 Sec. 11. NEW SECTION . 187.321 Value-added agricultural 15 grant program. 16 A value-added agricultural grant program is created within 17 the department. The purpose of the program is to identify, 18 evaluate, and support projects and services that add value to 19 agricultural commodities produced on Iowa farms, including by 20 supporting new technologies and marketing strategies. 21 Sec. 12. REPEAL. Sections 159.26 and 159.27, Code 2024, 22 are repealed. 23 Sec. 13. TRANSFER OF MONEYS. 24 1. Not later than June 30, 2024, the balance of the dairy 25 innovation fund created in section 159.31A shall be transferred 26 to the choose Iowa fund created in section 159.31. 27 2. Not later than June 30, 2024, any moneys appropriated 28 to the department of agriculture and land stewardship that the 29 department has not expended as required to support a value 30 added agriculture grant program shall be transferred to the 31 choose Iowa fund, including moneys appropriated in 2022 Iowa 32 Acts, chapter 1147, section 12, and 2023 Iowa Acts, chapter 33 109, section 4, subsection 9. 34 Sec. 14. CODE EDITOR DIRECTIVE. 35 -7- HF 2641 (2) 90 da/ns/md 7/ 19

H.F. 2641 1. The Code editor is directed to make the following 1 transfers: 2 a. Section 159.28 to 187.301. 3 b. Section 159.29 to 187.302. 4 c. Section 159.30 to 187.303. 5 d. Section 159.31 to 187.201. 6 e. Section 159.31A to 187.311. 7 2. The Code editor shall correct internal references in the 8 Code and in any enacted legislation as necessary due to the 9 enactment of this section. 10 Sec. 15. DIRECTIONS TO CODE EDITOR —— SUBCHAPTERS AND 11 PARTS. The Code editor is directed to divide the provisions 12 of chapter 187, as amended, enacted, or transferred in this 13 division of this Act, into subchapters and parts as follows: 14 1. Subchapter I, including sections 187.101 through 15 187.103. 16 2. Subchapter II, including section 187.201. 17 3. Subchapter III, as follows: 18 a. Part 1, including sections 187.301 through 187.303. 19 b. Part 2, including section 187.311. 20 c. Part 3, including section 187.321. 21 Sec. 16. EFFECTIVE DATE. 22 1. Except as provided in subsection 2, this division of this 23 Act takes effect July 1, 2024. 24 2. The following section of this division of this Act, being 25 deemed of immediate importance, takes effect upon enactment: 26 The section that provides for the transfer of moneys to the 27 choose Iowa fund. 28 DIVISION III 29 COMMERCIAL ESTABLISHMENTS 30 Sec. 17. Section 162.2, subsection 8, Code 2024, is amended 31 to read as follows: 32 8. “Commercial breeder” means a person, engaged in the 33 business of breeding dogs or cats, who sells, exchanges, or 34 leases dogs or cats in return for consideration, or who offers 35 -8- HF 2641 (2) 90 da/ns/md 8/ 19

H.F. 2641 to do so, whether or not the animals are raised, trained, 1 groomed, or boarded by the person. A person who owns or 2 harbors three or fewer breeding males or females is not a 3 commercial breeder. However, a person who breeds any number 4 of breeding male or female greyhounds for the purposes of 5 using them for pari-mutuel wagering at a racetrack as provided 6 in chapter 99D shall be considered a commercial breeder 7 irrespective of whether the person sells, leases, or exchanges 8 the greyhounds for consideration or offers to do so. 9 Sec. 18. Section 162.2B, subsection 1, paragraph b, Code 10 2024, is amended to read as follows: 11 b. For the issuance or renewal of a state license or permit, 12 one hundred seventy-five dollars. However, a commercial 13 breeder who owns, keeps, breeds, or transports a greyhound dog 14 for pari-mutuel wagering at a racetrack as provided in chapter 15 99D shall pay a different fee for the issuance or renewal of a 16 state license as provided in rules adopted by the department. 17 Sec. 19. Section 162.10A, subsection 2, Code 2024, is 18 amended to read as follows: 19 2. a. Except as provided in paragraph “b” or “c” , a 20 commercial establishment shall comply with rules that the 21 department adopts to implement subsection 1 . A commercial 22 establishment shall be regulated under this paragraph “a” 23 unless the person is a state licensee as provided in paragraph 24 “b” or a permittee as provided in paragraph “c” “b” . 25 b. A state licensee who is a commercial breeder owning, 26 breeding, transporting, or keeping a greyhound dog for 27 pari-mutuel wagering at a racetrack as provided in chapter 99D 28 may be required to comply with different rules adopted by the 29 department. 30 c. b. A permittee is not required to comply with rules 31 that the department adopts to implement a standard of care as 32 provided in subsection 1 for state licensees and registrants. 33 The department may adopt rules regulating a standard of care 34 for a permittee, so long as the rules are not more restrictive 35 -9- HF 2641 (2) 90 da/ns/md 9/ 19

H.F. 2641 than required for a permittee under the Animal Welfare Act. 1 However, the department may adopt prescriptive rules relating 2 to the standard of care. Regardless of whether the department 3 adopts such rules, a permittee meets the standard of care 4 required in subsection 1 if it voluntarily complies with rules 5 applicable to state licensees or registrants. A finding by 6 the United States department of agriculture that a permittee 7 complies with the Animal Welfare Act is not conclusive when 8 determining that the permittee provides a standard of care 9 required in subsection 1 . 10 Sec. 20. Section 717B.3, subsection 2, paragraph a, 11 subparagraph (2), subparagraph divisions (a) and (b), Code 12 2024, are amended to read as follows: 13 (a) A state licensee or registrant operating pursuant to 14 section 162.10A, subsection 2 , paragraph “a” or “b” . 15 (b) A permittee operating pursuant to section 162.10A, 16 subsection 2 , paragraph “c” “b” . 17 DIVISION IV 18 GRADE “A” MILK 19 Sec. 21. Section 192.101A, Code 2024, is amended by adding 20 the following new subsections: 21 NEW SUBSECTION . 1A. “Department” means the department of 22 agriculture and land stewardship. 23 NEW SUBSECTION . 5. “Secretary” means the secretary of 24 agriculture. 25 Sec. 22. Section 192.109, Code 2024, is amended to read as 26 follows: 27 192.109 Certification of grade “A” label. 28 The department of agriculture and land stewardship shall 29 annually biennially conduct a survey and based on that survey 30 certify all milk labeled grade “A” pasteurized and grade “A” 31 raw milk for pasteurization , and, in . In the event that a 32 survey shows the requirements for production, processing, and 33 distribution for such grade are not being complied with, the 34 that fact thereof shall be certified by the department to the 35 -10- HF 2641 (2) 90 da/ns/md 10/ 19

H.F. 2641 secretary of agriculture who shall proceed with the provisions 1 of section 192.107 for suspending the permit of the violator or 2 who, if the secretary did not issue such permit, shall withdraw 3 the grade “A” declared on the label. 4 Sec. 23. Section 192.111, subsection 1, paragraph a, 5 subparagraph (5), Code 2024, is amended to read as follows: 6 (5) A milk grader which must obtain a milk grader permit and 7 pay a license permit fee not greater than twenty dollars. 8 Sec. 24. Section 192.116, Code 2024, is amended to read as 9 follows: 10 192.116 Bacteriologists. 11 The department of agriculture and land stewardship may 12 employ dairy specialists or bacteriologists who shall devote 13 their full time to the improvement of sanitation in the 14 production, processing , and marketing of dairy products. 15 Said The dairy specialists and bacteriologists shall have 16 qualifications as to education and experience and such other 17 requirements as the secretary may require. 18 Sec. 25. Section 192.118, subsection 1, Code 2024, is 19 amended to read as follows: 20 1. To ensure uniformity in the tests and reporting, an 21 employee certified by the United States public health service 22 of the bacteriological laboratory of the department shall 23 annually certify, in accordance with rules adopted by the 24 department incorporating or incorporating by reference the 25 federal publication entitled “Evaluation of Milk Laboratories”, 26 all laboratories doing work in the sanitary quality of 27 milk and dairy products for public report. The approval by 28 the department shall be based on the evaluation of these 29 laboratories as to personnel training, laboratory methods 30 used, and reporting. The results on tests made by approved 31 laboratories shall be reported to the department on request, 32 on forms prescribed by the secretary of agriculture , and such 33 reports may be used by the department. 34 DIVISION V 35 -11- HF 2641 (2) 90 da/ns/md 11/ 19

H.F. 2641 FERTILIZERS AND SOIL CONDITIONERS 1 Sec. 26. Section 200.3, subsection 29, Code 2024, is amended 2 to read as follows: 3 29. The term “unmanipulated manures” means any substances 4 composed primarily of excreta, plant remains, or mixtures of 5 such substances which have not been processed in any manner 6 other than dewatering . 7 Sec. 27. EFFECTIVE DATE. This division of this Act, being 8 deemed of immediate importance, takes effect upon enactment. 9 DIVISION VI 10 HEMP 11 PART A 12 HEMP REGULATIONS 13 Sec. 28. Section 204.2, subsections 1, 4, 5, 10, 12, 14, 15, 14 and 16, Code 2024, are amended by striking the subsections. 15 Sec. 29. Section 204.2, subsection 6, Code 2024, is amended 16 by striking the subsection and inserting in lieu thereof the 17 following: 18 6. “Department of health and human services” or “department” 19 means the principal central department established in section 20 7E.5, subsection 1, paragraph “i” . 21 Sec. 30. Section 204.2, subsection 9, Code 2024, is amended 22 by striking the subsection and inserting in lieu thereof the 23 following: 24 9. “Hemp” means the same as defined in section 204A.2. 25 Sec. 31. Section 204.7, subsections 1, 2, 3, 4, 5, 6, and 7, 26 Code 2024, are amended by striking the subsections. 27 Sec. 32. Section 204.8, Code 2024, is amended by striking 28 the section and inserting in lieu thereof the following: 29 204.8 Hemp —— testing requirements and certificate of 30 analysis. 31 For purposes of this chapter, requirements for testing hemp 32 and the issuance of a certificate of analysis for hemp are 33 governed by chapter 204A. 34 Sec. 33. Section 204.12, subsection 2, Code 2024, is amended 35 -12- HF 2641 (2) 90 da/ns/md 12/ 19

H.F. 2641 by striking the subsection. 1 Sec. 34. Section 204.14, subsections 2 and 3, Code 2024, are 2 amended to read as follows: 3 2. a. Except as provided in paragraph “b” , the The person 4 is required to hold a certificate of analysis to possess, 5 handle, use, manufacture, market, transport, deliver, or 6 distribute hemp that has been harvested under this chapter . 7 b. The person is required to hold a temporary harvest and 8 transportation permit to possess, harvest, or move hemp. 9 3. The person knowingly or intentionally does any of the 10 following: 11 a. Falsifies the temporary harvest and transportation permit 12 or a certificate of analysis. 13 b. Acquires the temporary harvest and transportation permit 14 or a certificate of analysis that the person knows has been 15 falsified. 16 Sec. 35. Section 204.15, Code 2024, is amended by striking 17 the section and inserting in lieu thereof the following: 18 204.15 Negligent violation program. 19 A USDA licensee who is participating in or has successfully 20 completed the program for negligent violations as provided in 7 21 C.F.R. §990.29 shall not be subject to a criminal offense under 22 chapter 124 or 453B for committing an act that otherwise would 23 constitute the offense. 24 Sec. 36. Section 204.17, subsection 1, Code 2024, is amended 25 by striking the subsection. 26 Sec. 37. Section 204.17, subsection 6, Code 2024, is amended 27 by striking the subsection and inserting in lieu thereof the 28 following: 29 6. Nothing in this chapter shall be construed or applied 30 to affect a statute or rule which applies to an article under 31 this chapter, if it would apply in the same manner as to other 32 articles subject to the same general regulation in other 33 chapters. 34 Sec. 38. NEW SECTION . 204A.2 Definitions. 35 -13- HF 2641 (2) 90 da/ns/md 13/ 19

H.F. 2641 As used in this chapter, unless the context otherwise 1 requires: 2 1. “Acceptable hemp THC level” means the same as defined in 3 7 C.F.R. §990.1. 4 2. “Cannabis” means the same as defined in 7 C.F.R. §990.1. 5 3. “Controlled substance” means the same as defined in 6 section 124.101. 7 4. “Delta-9 tetrahydrocannabinol” or “THC” means the same as 8 defined in 7 C.F.R. §990.1. 9 5. “Department” means the department of agriculture and land 10 stewardship. 11 6. “Federal hemp law” means 7 U.S.C. §1639o, 1639q, and 12 1639r, together with the domestic hemp production program as 13 provided in 7 C.F.R. pt. 990. 14 7. “Hemp” means the same as defined in 7 C.F.R. §990.1. 15 8. “Local law enforcement agency” means an office of county 16 sheriff or a municipal police department. 17 9. “Lot” means the same as defined in 7 C.F.R. §990.1. 18 10. “Total THC” means the same as defined in 7 C.F.R. 19 §990.1. 20 11. “USDA licensee” means the same as defined in 7 C.F.R. 21 §990.1. 22 Sec. 39. NEW SECTION . 204A.3 Administration —— rules. 23 The department may adopt rules that it deems necessary to 24 administer and enforce this chapter. The rules shall comply 25 with the federal hemp law, or requirements of the United States 26 department of agriculture acting under the federal hemp law. 27 Sec. 40. NEW SECTION . 204A.4 Criminal offenses. 28 A criminal offense involving hemp includes but is not 29 limited to production, use, harvest, transportation, delivery, 30 distribution, or sale of cannabis as a controlled substance 31 except as otherwise provided in this chapter and chapter 204. 32 Sec. 41. NEW SECTION . 204A.5 Hemp production. 33 1. Except to the extent otherwise provided in the federal 34 hemp law, or by the United States department of agriculture 35 -14- HF 2641 (2) 90 da/ns/md 14/ 19

H.F. 2641 acting under the federal hemp law, this chapter does not affect 1 the powers and duties of the state, including the department of 2 public safety or a local law enforcement agency, to investigate 3 or prosecute a person for a violation of a criminal offense, 4 including an act in violation of chapter 124 or 453B. 5 2. a. Except to the extent otherwise provided in the 6 federal hemp law, or by the United States department of 7 agriculture acting under the federal hemp law, the department 8 of public safety may require a USDA licensee to submit to the 9 department of public safety any of the following: 10 (1) A notice that the United States department of 11 agriculture’s lot includes cannabis that exceeds the acceptable 12 hemp THC level and a description of the noncompliant plant’s 13 disposal as required in 7 C.F.R. §990.27. 14 (2) A corrective action plan filed with the United States 15 department of agriculture to cure the negligent violation as 16 required in 7 C.F.R. §990.27. 17 (3) A notice of the United States department of 18 agriculture’s license suspension under 7 C.F.R. §990.30 or 19 United States department of agriculture’s license revocation 20 under 7 C.F.R. §990.31. 21 (4) A report or record required to be submitted to 22 the United States department of agriculture as part of 23 participation in the domestic hemp program as provided in 7 24 C.F.R. §990.32. 25 b. Any data or business information designated as 26 confidential by the United States department of agriculture 27 under this subsection and received by a government body as 28 defined in section 22.1 shall be a confidential record under 29 chapter 22 and subject to any restrictions imposed by the 30 United States department of agriculture. 31 Sec. 42. NEW SECTION . 204A.6 Hemp transportation. 32 Except to the extent otherwise provided in the federal 33 hemp law, including 7 C.F.R. §990.25, or by the United States 34 department of agriculture acting under the federal hemp law, a 35 -15- HF 2641 (2) 90 da/ns/md 15/ 19

H.F. 2641 person transporting hemp seed or harvested hemp in this state, 1 on an intrastate or interstate basis, is subject to all of the 2 following public safety requirements: 3 1. If the person is licensed under 7 C.F.R. ch. 990, subpt. 4 B or C, the person must carry a copy of that license. 5 2. The person must carry a certificate of analysis. 6 3. The person must carry a bill of lading under all of the 7 following circumstances: 8 a. The person is in possession of the hemp in transit to 9 transfer ownership. 10 b. The person is delivering cannabis seed for planting and 11 the seed is not of the licensee’s own production. 12 c. A person brings hemp produced in another state into or 13 through this state. 14 Sec. 43. NEW SECTION . 204A.9 Statutory construction. 15 1. Nothing in this chapter shall be construed or applied to 16 be less stringent than required under the federal hemp law. 17 2. Nothing in this chapter shall be construed or applied 18 to be in conflict with applicable federal law and related 19 regulations. 20 3. Nothing in this chapter shall be construed or applied to 21 infringe upon the ability of the department of public safety 22 or a local law enforcement agency to obtain a search warrant 23 issued by a court, or enter onto any premises in a manner 24 consistent with the laws of this state and the United States, 25 including Article I, section 8, of the Constitution of the 26 State of Iowa, or the fourth amendment to the Constitution of 27 the United States. 28 4. Nothing in this chapter shall be construed or applied 29 to affect a statute or rule which applies to an article under 30 this chapter, if it would apply in the same manner as to other 31 articles subject to the same general regulation in other 32 chapters. 33 Sec. 44. REPEAL. Sections 204.3, 204.4, 204.5, 204.6, 34 204.9, 204.10, 204.11, 204.13, and 204.16, Code 2024, are 35 -16- HF 2641 (2) 90 da/ns/md 16/ 19

H.F. 2641 repealed. 1 Sec. 45. CODE EDITOR DIRECTIVE. 2 1. The Code editor is directed to make the following 3 transfers: 4 a. Section 204.1 to section 204A.1. 5 b. Section 204.14 to section 204A.7. 6 c. Section 204.15 to section 204A.8. 7 2. The Code editor shall correct internal references in the 8 Code and in any enacted legislation as necessary due to the 9 enactment of this section. 10 PART B 11 CORRESPONDING CHANGES 12 Sec. 46. Section 124.201A, subsection 4, Code 2024, is 13 amended to read as follows: 14 4. Any cannabis-derived investigational product or 15 cannabis-derived product approved as a prescription drug 16 medication by the United States food and drug administration 17 shall not be considered marijuana or cannabimimetic agents, 18 both as defined in section 124.204 , tetrahydrocannabinols 19 as used in section 124.204, subsection 4 , paragraph “u” , 20 unnumbered paragraph 1, or hemp as defined in section 204.2 21 204A.2 . 22 Sec. 47. Section 124.204, subsection 7, paragraph a, Code 23 2024, is amended to read as follows: 24 a. Hemp as defined in section 204.2 204A.2, including hemp 25 that is or was produced in this state, or was produced in 26 another state , in accordance with the provisions of chapter 204 27 the federal hemp law as defined in chapter 204A, with a maximum 28 delta-9 tetrahydrocannabinol concentration that does not exceed 29 three-tenths of one percent on a dry weight basis. 30 Sec. 48. Section 124.401, subsection 6, paragraph a, Code 31 2024, is amended by striking the paragraph and inserting in 32 lieu thereof the following: 33 a. Hemp that is hemp seed, including hemp seed delivered 34 for planting at a lot by a USDA licensee or hemp that is or was 35 -17- HF 2641 (2) 90 da/ns/md 17/ 19

H.F. 2641 produced at a lot by a USDA licensee, in accordance with the 1 provisions of the federal hemp law, as those terms are defined 2 in chapter 204A. 3 Sec. 49. Section 124.401G, Code 2024, is amended by striking 4 the section and inserting in lieu thereof the following: 5 124.401G Iowa hemp Act — negligent violation program. 6 Notwithstanding any provision of this chapter to the 7 contrary, a person shall not be guilty of an offense under 8 this chapter, including under section 124.401 or 124.410, 9 for producing, possessing, using, harvesting, handling, 10 manufacturing, marketing, transporting, delivering, or 11 distributing the plant cannabis, to the extent that the person 12 is a USDA licensee acting in accordance with the federal hemp 13 law, as those terms are defined in chapter 204A. 14 Sec. 50. Section 124.506, subsection 5, Code 2024, is 15 amended by striking the subsection. 16 Sec. 51. Section 317.1D, Code 2024, is amended to read as 17 follows: 18 317.1D Exemption —— Iowa hemp Act. 19 This chapter does not apply to a plant or any part of the 20 plant qualifying as hemp, if the hemp is produced on a crop 21 site regulated under chapter 204 on the USDA licensee’s lot 22 in accordance with the federal hemp law, as those terms are 23 defined in chapter 204A . 24 Sec. 52. Section 453B.17, subsection 1, Code 2024, is 25 amended by striking the subsection and inserting in lieu 26 thereof the following: 27 1. Hemp as defined in section 204A.2, including hemp seed 28 delivered for planting at a lot by a USDA licensee or hemp that 29 is or was produced at a lot by a USDA licensee, in accordance 30 with the provisions of the federal hemp law, as those terms are 31 defined in chapter 204A. 32 Sec. 53. Section 453B.18, Code 2024, is amended by striking 33 the section and inserting in lieu thereof the following: 34 453B.18 Exemption —— Iowa hemp Act —— negligent violation 35 -18- HF 2641 (2) 90 da/ns/md 18/ 19

H.F. 2641 program. 1 Notwithstanding any provision of this chapter to the 2 contrary, a person shall not be guilty of an offense under this 3 chapter for producing or possessing the plant cannabis, to the 4 extent that the person is a USDA licensee acting in accordance 5 with the federal hemp law, as those terms are defined in 6 chapter 204A. 7 Sec. 54. Section 716.14, subsection 1, paragraph b, Code 8 2024, is amended to read as follows: 9 b. “Agricultural crop” means a plant produced for food, 10 animal feed, fiber, oil, or fuel if the plant is classified 11 as a forage or cereal plant, including but not limited to 12 alfalfa, barley, buckwheat, corn, flax, forage, hemp as defined 13 in section 204.2 204A.2 , millet, oats, popcorn, rye, sorghum, 14 soybeans, sunflowers, wheat, and grasses used for forage or 15 silage. A plant which is a noxious weed pursuant to section 16 317.1A shall not be considered an agricultural crop unless the 17 plant is produced as a research crop. 18 PART C 19 EFFECTIVE DATE 20 Sec. 55. EFFECTIVE DATE. This division of this Act takes 21 effect December 31, 2024. 22 -19- HF 2641 (2) 90 da/ns/md 19/ 19