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House File 415 - IntroducedA Bill ForAn Act 1relating to the production, marketing, and distribution
2of industrial hemp and related plant materials, and
3providing for penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. LEGISLATIVE FINDINGS — PURPOSE. The general
2assembly finds that a trend exists among states to consider the
3economic importance of industrial hemp, which is a major crop
4in other nations. Industrial hemp historically has contributed
5to the economic welfare of this country, and is a renewable
6natural resource manufactured for textiles, pulp, paper, oil,
7building materials, and other products. The purpose of this
8Act is to promote the economy of this state by providing for
9research necessary to develop industrial hemp as a viable crop.
10 Sec. 2. Section 124.401, Code 2017, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 6. Notwithstanding subsection 5, a person
13may knowingly or intentionally recommend, possess, use,
14dispense, deliver, transport, or administer industrial hemp,
15if the recommendation, possession, use, dispensing, delivery,
16transporting, or administering is in accordance with the
17provisions of chapter 159B. For purposes of this subsection,
18“industrial hemp” means the same as defined in section 159B.1.
19 Sec. 3. NEW SECTION. 124D.6A Exception — industrial hemp.
20This chapter does not apply to the possession or use of
21industrial hemp as provided in chapter 159B.
22 Sec. 4. NEW SECTION. 159B.1 Definitions.
23As used in this chapter, unless the context otherwise
24requires:
251. “Department” means the department of agriculture and land
26stewardship.
272. “Industrial hemp” means cannabis sativa L. which
28has a percentage of tetrahydrocannabinol of not more than
29three-tenths of one percent, as provided by rules which shall
30be adopted by the department.
313. “Regents institution” means the university of northern
32Iowa, the university of Iowa, or Iowa state university of
33science and technology.
34 Sec. 5. NEW SECTION. 159B.2 Administration.
35The department, in cooperation with the department of
-1-1public safety, regents institutions, and community colleges
2established under chapter 260C, shall administer this chapter.
3The department of agriculture and land stewardship shall
4cooperate with other law enforcement agencies. The department
5shall also collaborate with agencies of the United States
6government, including but not limited to the drug enforcement
7administration of the United States department of justice, in
8order to provide for the production, harvesting, marketing,
9and distribution of industrial hemp according to the terms and
10conditions required by federal law. The department may execute
11a memorandum of understanding with a United States government
12agency in order to administer this chapter.
13 Sec. 6. NEW SECTION. 159B.3 Licensing and regulation —
14fees — production under regents or community college pilot
15program.
161. a. To the extent permitted by federal law, the
17department shall issue licenses to persons for the production,
18harvesting, marketing, and distribution of industrial hemp,
19notwithstanding any section of this chapter or chapter 159 to
20the contrary. A person must possess a license pursuant to this
21section to possess industrial hemp. The department shall limit
22the number of licenses that it issues each year in order to
23ensure that the department, in cooperation with the department
24of public safety, may strictly enforce compliance with the
25requirements of this chapter. A license shall expire not later
26than one year following the date of issuance.
27b. A person applying for a license shall file an application
28on a form prescribed by the department of agriculture and land
29stewardship according to procedures required by the department.
30The department may charge an application fee which shall not
31exceed five hundred dollars. An applicant and each employee
32of the applicant must satisfy eligibility requirements of the
33department, which shall include but not be limited to all of
34the following:
35(1) Be eighteen years of age or older.
-2- 1(2) Never have been convicted of a felony, an aggravated
2misdemeanor, or any other offense related to the possession of
3a controlled substance.
4(3) Not be addicted to the use of alcohol or a controlled
5substance.
6(4) Be of good moral character and not have been found
7guilty of a crime involving moral turpitude.
8c. The licensee shall maintain accurate records, as required
9by the department, which shall contain information relating
10to the licensee’s operation, including but not limited to
11the production site, the time and manner of harvest, and
12persons involved in the production, harvesting, marketing, and
13distribution of the industrial hemp.
142. Notwithstanding chapter 124, the licensee may produce,
15harvest, market, and distribute industrial hemp. However, the
16licensee must act in strict conformance with this chapter.
173. a. A licensee shall not produce, harvest, market, or
18distribute industrial hemp until completing an agricultural
19pilot program certified by a regents institution or community
20college that administers the program. The program must develop
21optimal agricultural practices for producing industrial hemp.
22b. Under the program, a licensee must produce industrial
23hemp on a demonstration plot located on land controlled by
24the regents institution or community college for at least
25three years. In addition, the licensee may produce, harvest,
26market, or distribute industrial hemp on land not controlled
27by a regents institution or community college subject to the
28following:
29(1) For the first year, the licensee shall not produce
30industrial hemp on more than one hundred fifty acres of land
31that is not a demonstration plot.
32(2) For the second year, the licensee shall not produce
33industrial hemp on more than five hundred acres of land that is
34not a demonstration plot.
35c. Any plant material derived from the production of
-3-1industrial hemp under the program, other than plant material
2retained for breeding and propagation, must be destroyed or
3marketed and distributed in commercial channels as required by
4the department. The licensee may provide for the marketing
5and distribution of the plant materials inside or outside the
6state. A licensee who distributes plant materials outside
7the state must complete and submit to the department an
8annual report detailing the amount and type of plant material
9distributed, and the state where the distribution was made.
10However, the licensee shall not be required to disclose
11information that identifies a person receiving the plant
12material.
13d. A licensee who does not comply with the requirements of
14this subsection shall not complete the program.
15 Sec. 7. NEW SECTION. 159B.4 Use of seed or cultivar.
16The department shall not prohibit the use of a seed or
17cultivar in the production of industrial hemp. The department
18shall adopt rules that provide for importing industrial hemp
19seeds into the state for use by licensees. However, a licensee
20shall not receive more than fifty pounds of industrial hemp
21seed per acre of land owned or leased for the production of
22industrial hemp unless the department grants the person a
23waiver.
24 Sec. 8. NEW SECTION. 159B.5 Inspection.
251. The department or the department of public safety may
26inspect a production, harvesting, or distribution site of a
27licensee at any time, and may inspect records required to be
28maintained as provided in section 159B.3. The department of
29agriculture and land stewardship shall assess and the licensee
30shall pay the actual costs of the inspection. If the owner
31or occupant of any property used by the licensee for the
32production, harvesting, marketing, or distribution refuses
33admittance onto the property, or if prior to such refusal the
34department of agriculture and land stewardship or department
35of public safety demonstrates the necessity for a warrant,
-4-1the department of agriculture and land stewardship may make
2application under oath or affirmation to the district court of
3the county in which the property is located for the issuance of
4a search warrant. If the court is satisfied from examination
5of the applicant, of other witnesses, if any, and of the
6allegations of the application or the existence of the grounds
7of the application, or that probable cause exists to believe
8such grounds exist, the court may issue a search warrant.
92. The department shall inspect plants produced by a
10licensee a least once per month. The department shall test
11plants produced on at least one out of very one hundred acres
12used to produce industrial hemp to ensure compliance with this
13chapter. The costs associated with the inspection, including
14testing, shall be charged to the licensee. The amount received
15by the department shall be considered repayment receipts as
16defined in section 8.2, and deposited into the accounts of the
17department.
18 Sec. 9. NEW SECTION. 159B.6 Enforcement action — penalty.
191. The department may suspend or revoke a license issued
20under section 159B.3 if the licensee or an employee of the
21licensee is determined to have committed any of the following:
22a. Fraud in applying for or obtaining a license.
23b. A violation of this chapter or rules adopted by the
24department pursuant to this chapter, including failing to
25comply with a requirement of this chapter.
26c. An offense involving moral turpitude, a felony, an
27aggravated misdemeanor, or any other offense related to the
28possession of a controlled substance.
292. a. Except as provided in paragraph “b”, an applicant for
30a license or a licensee who knowingly violates a requirement
31of this chapter or a rule adopted by the department pursuant
32to this chapter is subject to a civil penalty of not more than
33fifty thousand dollars.
34b. A person who makes a false statement on the application
35for a license regarding the conviction of a felony, aggravated
-5-1misdemeanor, or any other offense related to the possession of
2a controlled substance is guilty of an aggravated misdemeanor.
3 Sec. 10. Section 317.1A, Code 2017, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 3. “Industrial hemp” which is produced as
6provided in chapter 159B is not a noxious weed.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to the production of industrial
11hemp which has not more than three-tenths of 1 percent
12tetrahydrocannabinol.
13The bill requires the department of agriculture and land
14stewardship, in cooperation with the department of public
15safety, regents institutions, and community colleges, to
16administer the chapter. The department of agriculture
17and land stewardship is responsible for licensing persons
18involved in industrial hemp production. The bill requires the
19department to collaborate with agencies of the United States
20government, including but not limited to the drug enforcement
21administration, in order to provide for the production,
22harvesting, marketing, and distribution of industrial hemp
23according to the terms and conditions required by federal law.
24The bill provides that to the extent permitted by federal law,
25the department shall issue licenses to persons, notwithstanding
26any other provision of Code chapter 124 regulating controlled
27substances. The bill provides that a licensee must complete
28an agricultural pilot program as certified by a regents
29institution or community college that administers the program.
30Under the program, a licensee must produce industrial hemp
31on a demonstration plot for three years. The bill requires
32a licensee to maintain records, restricts the use of seed by
33licensees, provides for inspections of land and seed, and
34provides for the suspension or revocation of a license.
35The bill provides that licensees who violate the provisions
-6-1of the bill are subject to a civil penalty of up to $50,000.
2The bill provides that a person who makes a false statement
3on the application for a license regarding a conviction of a
4felony, aggravated misdemeanor, or any other offense related
5to the possession of a controlled substance is guilty of
6an aggravated misdemeanor. An aggravated misdemeanor is
7punishable by confinement for no more than two years and a fine
8of at least $625 but not more than $6,250.
-7-da/nh
2of industrial hemp and related plant materials, and
3providing for penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. LEGISLATIVE FINDINGS — PURPOSE. The general
2assembly finds that a trend exists among states to consider the
3economic importance of industrial hemp, which is a major crop
4in other nations. Industrial hemp historically has contributed
5to the economic welfare of this country, and is a renewable
6natural resource manufactured for textiles, pulp, paper, oil,
7building materials, and other products. The purpose of this
8Act is to promote the economy of this state by providing for
9research necessary to develop industrial hemp as a viable crop.
10 Sec. 2. Section 124.401, Code 2017, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 6. Notwithstanding subsection 5, a person
13may knowingly or intentionally recommend, possess, use,
14dispense, deliver, transport, or administer industrial hemp,
15if the recommendation, possession, use, dispensing, delivery,
16transporting, or administering is in accordance with the
17provisions of chapter 159B. For purposes of this subsection,
18“industrial hemp” means the same as defined in section 159B.1.
19 Sec. 3. NEW SECTION. 124D.6A Exception — industrial hemp.
20This chapter does not apply to the possession or use of
21industrial hemp as provided in chapter 159B.
22 Sec. 4. NEW SECTION. 159B.1 Definitions.
23As used in this chapter, unless the context otherwise
24requires:
251. “Department” means the department of agriculture and land
26stewardship.
272. “Industrial hemp” means cannabis sativa L. which
28has a percentage of tetrahydrocannabinol of not more than
29three-tenths of one percent, as provided by rules which shall
30be adopted by the department.
313. “Regents institution” means the university of northern
32Iowa, the university of Iowa, or Iowa state university of
33science and technology.
34 Sec. 5. NEW SECTION. 159B.2 Administration.
35The department, in cooperation with the department of
-1-1public safety, regents institutions, and community colleges
2established under chapter 260C, shall administer this chapter.
3The department of agriculture and land stewardship shall
4cooperate with other law enforcement agencies. The department
5shall also collaborate with agencies of the United States
6government, including but not limited to the drug enforcement
7administration of the United States department of justice, in
8order to provide for the production, harvesting, marketing,
9and distribution of industrial hemp according to the terms and
10conditions required by federal law. The department may execute
11a memorandum of understanding with a United States government
12agency in order to administer this chapter.
13 Sec. 6. NEW SECTION. 159B.3 Licensing and regulation —
14fees — production under regents or community college pilot
15program.
161. a. To the extent permitted by federal law, the
17department shall issue licenses to persons for the production,
18harvesting, marketing, and distribution of industrial hemp,
19notwithstanding any section of this chapter or chapter 159 to
20the contrary. A person must possess a license pursuant to this
21section to possess industrial hemp. The department shall limit
22the number of licenses that it issues each year in order to
23ensure that the department, in cooperation with the department
24of public safety, may strictly enforce compliance with the
25requirements of this chapter. A license shall expire not later
26than one year following the date of issuance.
27b. A person applying for a license shall file an application
28on a form prescribed by the department of agriculture and land
29stewardship according to procedures required by the department.
30The department may charge an application fee which shall not
31exceed five hundred dollars. An applicant and each employee
32of the applicant must satisfy eligibility requirements of the
33department, which shall include but not be limited to all of
34the following:
35(1) Be eighteen years of age or older.
-2- 1(2) Never have been convicted of a felony, an aggravated
2misdemeanor, or any other offense related to the possession of
3a controlled substance.
4(3) Not be addicted to the use of alcohol or a controlled
5substance.
6(4) Be of good moral character and not have been found
7guilty of a crime involving moral turpitude.
8c. The licensee shall maintain accurate records, as required
9by the department, which shall contain information relating
10to the licensee’s operation, including but not limited to
11the production site, the time and manner of harvest, and
12persons involved in the production, harvesting, marketing, and
13distribution of the industrial hemp.
142. Notwithstanding chapter 124, the licensee may produce,
15harvest, market, and distribute industrial hemp. However, the
16licensee must act in strict conformance with this chapter.
173. a. A licensee shall not produce, harvest, market, or
18distribute industrial hemp until completing an agricultural
19pilot program certified by a regents institution or community
20college that administers the program. The program must develop
21optimal agricultural practices for producing industrial hemp.
22b. Under the program, a licensee must produce industrial
23hemp on a demonstration plot located on land controlled by
24the regents institution or community college for at least
25three years. In addition, the licensee may produce, harvest,
26market, or distribute industrial hemp on land not controlled
27by a regents institution or community college subject to the
28following:
29(1) For the first year, the licensee shall not produce
30industrial hemp on more than one hundred fifty acres of land
31that is not a demonstration plot.
32(2) For the second year, the licensee shall not produce
33industrial hemp on more than five hundred acres of land that is
34not a demonstration plot.
35c. Any plant material derived from the production of
-3-1industrial hemp under the program, other than plant material
2retained for breeding and propagation, must be destroyed or
3marketed and distributed in commercial channels as required by
4the department. The licensee may provide for the marketing
5and distribution of the plant materials inside or outside the
6state. A licensee who distributes plant materials outside
7the state must complete and submit to the department an
8annual report detailing the amount and type of plant material
9distributed, and the state where the distribution was made.
10However, the licensee shall not be required to disclose
11information that identifies a person receiving the plant
12material.
13d. A licensee who does not comply with the requirements of
14this subsection shall not complete the program.
15 Sec. 7. NEW SECTION. 159B.4 Use of seed or cultivar.
16The department shall not prohibit the use of a seed or
17cultivar in the production of industrial hemp. The department
18shall adopt rules that provide for importing industrial hemp
19seeds into the state for use by licensees. However, a licensee
20shall not receive more than fifty pounds of industrial hemp
21seed per acre of land owned or leased for the production of
22industrial hemp unless the department grants the person a
23waiver.
24 Sec. 8. NEW SECTION. 159B.5 Inspection.
251. The department or the department of public safety may
26inspect a production, harvesting, or distribution site of a
27licensee at any time, and may inspect records required to be
28maintained as provided in section 159B.3. The department of
29agriculture and land stewardship shall assess and the licensee
30shall pay the actual costs of the inspection. If the owner
31or occupant of any property used by the licensee for the
32production, harvesting, marketing, or distribution refuses
33admittance onto the property, or if prior to such refusal the
34department of agriculture and land stewardship or department
35of public safety demonstrates the necessity for a warrant,
-4-1the department of agriculture and land stewardship may make
2application under oath or affirmation to the district court of
3the county in which the property is located for the issuance of
4a search warrant. If the court is satisfied from examination
5of the applicant, of other witnesses, if any, and of the
6allegations of the application or the existence of the grounds
7of the application, or that probable cause exists to believe
8such grounds exist, the court may issue a search warrant.
92. The department shall inspect plants produced by a
10licensee a least once per month. The department shall test
11plants produced on at least one out of very one hundred acres
12used to produce industrial hemp to ensure compliance with this
13chapter. The costs associated with the inspection, including
14testing, shall be charged to the licensee. The amount received
15by the department shall be considered repayment receipts as
16defined in section 8.2, and deposited into the accounts of the
17department.
18 Sec. 9. NEW SECTION. 159B.6 Enforcement action — penalty.
191. The department may suspend or revoke a license issued
20under section 159B.3 if the licensee or an employee of the
21licensee is determined to have committed any of the following:
22a. Fraud in applying for or obtaining a license.
23b. A violation of this chapter or rules adopted by the
24department pursuant to this chapter, including failing to
25comply with a requirement of this chapter.
26c. An offense involving moral turpitude, a felony, an
27aggravated misdemeanor, or any other offense related to the
28possession of a controlled substance.
292. a. Except as provided in paragraph “b”, an applicant for
30a license or a licensee who knowingly violates a requirement
31of this chapter or a rule adopted by the department pursuant
32to this chapter is subject to a civil penalty of not more than
33fifty thousand dollars.
34b. A person who makes a false statement on the application
35for a license regarding the conviction of a felony, aggravated
-5-1misdemeanor, or any other offense related to the possession of
2a controlled substance is guilty of an aggravated misdemeanor.
3 Sec. 10. Section 317.1A, Code 2017, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 3. “Industrial hemp” which is produced as
6provided in chapter 159B is not a noxious weed.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to the production of industrial
11hemp which has not more than three-tenths of 1 percent
12tetrahydrocannabinol.
13The bill requires the department of agriculture and land
14stewardship, in cooperation with the department of public
15safety, regents institutions, and community colleges, to
16administer the chapter. The department of agriculture
17and land stewardship is responsible for licensing persons
18involved in industrial hemp production. The bill requires the
19department to collaborate with agencies of the United States
20government, including but not limited to the drug enforcement
21administration, in order to provide for the production,
22harvesting, marketing, and distribution of industrial hemp
23according to the terms and conditions required by federal law.
24The bill provides that to the extent permitted by federal law,
25the department shall issue licenses to persons, notwithstanding
26any other provision of Code chapter 124 regulating controlled
27substances. The bill provides that a licensee must complete
28an agricultural pilot program as certified by a regents
29institution or community college that administers the program.
30Under the program, a licensee must produce industrial hemp
31on a demonstration plot for three years. The bill requires
32a licensee to maintain records, restricts the use of seed by
33licensees, provides for inspections of land and seed, and
34provides for the suspension or revocation of a license.
35The bill provides that licensees who violate the provisions
-6-1of the bill are subject to a civil penalty of up to $50,000.
2The bill provides that a person who makes a false statement
3on the application for a license regarding a conviction of a
4felony, aggravated misdemeanor, or any other offense related
5to the possession of a controlled substance is guilty of
6an aggravated misdemeanor. An aggravated misdemeanor is
7punishable by confinement for no more than two years and a fine
8of at least $625 but not more than $6,250.
-7-da/nh