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Senate File 2398 - ReprintedA Bill ForAn Act 1relating to industrial hemp, including the regulation
2of its production as part of a research program, marketing
3for purposes of manufacturing industrial hemp products,
4providing for fees, making appropriations, providing for
5enforcement and the confiscation and destruction of certain
6property, and including penalties.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 124.401, subsection 5, Code 2018, is
2amended by adding the following new unnumbered paragraph:
3 NEW UNNUMBERED PARAGRAPH. Notwithstanding this subsection
4or any other provision of this chapter to the contrary, a
5person may produce, possess, deliver, transport, process,
6and use industrial hemp in accordance with the provisions of
7chapter 188.
8 Sec. 2. NEW SECTION. 188.1 Short title.
9This chapter shall be known and may be cited as the “Iowa
10Industrial Hemp Act”.
11 Sec. 3. NEW SECTION. 188.2 Definitions.
12As used in this chapter, unless the context otherwise
13requires:
141. “Association” means the Iowa crop improvement association
15recognized pursuant to section 177.1.
162. “Certified industrial hemp seed” means industrial hemp
17seed that has been certified pursuant to section 188.18.
183. “Council” means the industrial hemp council established
19in section 188.11.
204. “Department” means the department of agriculture and land
21stewardship.
225. “Industrial hemp” means any part of the Cannabis
23sativa plant, whether growing or not, with a concentration of
24delta-9 tetrahydrocannabinol that does not exceed the maximum
25concentration for the plant as determined pursuant to section
26188.8.
276. “Industrial hemp plant” means all nonseed parts of
28industrial hemp, whether growing or not.
297. a. “Industrial hemp product” means any item manufactured
30from industrial hemp, including but not limited to cloth,
31cordage, fiber, food, fuel, paint, paper, particleboard,
32plastic, industrial hemp seed, seed meal, or seed oil.
33b. “Industrial hemp product” does not include industrial
34hemp seed that is capable of germination.
358. “Industrial hemp seed” means seed produced by industrial
-1-1hemp regardless of whether the seed is capable of germination.
29. “Iowa state university” means Iowa state university of
3science and technology.
410. “Law enforcement agency” means the department of public
5safety, an office of county sheriff, or a city’s police force.
611. “Licensee” means a person who obtains a license from
7the department under section 188.15 to participate in the
8industrial hemp commodity program established pursuant to
9section 188.13 or the industrial hemp production program
10established pursuant to section 188.14.
1112. “Production” means any part of planting, cultivating,
12or harvesting industrial hemp.
1313. “Regents institution” means the university of Iowa, Iowa
14state university of science and technology, or the university
15of northern Iowa governed by the state board of regents under
16section 262.7.
1714. “Registrant” means a regents institution that registers
18with the department to administer the industrial hemp
19production program established in section 188.14.
20 Sec. 4. NEW SECTION. 188.3 Report.
211. The department shall prepare and submit an annual report
22to the governor and general assembly not later than January 10.
23The report shall evaluate the success of the industrial hemp
24commodity program established pursuant to section 188.13 and
25the industrial hemp production program established pursuant
26to section 188.14. The department, in cooperation with any
27registrant, may establish performance benchmarks and make
28recommendations for consideration by the general assembly in
29order to meet the purposes of the programs in compliance with
30the requirements of 7 U.S.C. §5940.
312. a. In preparing the report, the department may require
32that a select number of licensees complete and submit a brief
33survey regarding the licensee’s business operations including
34the production, handling, transportation, or processing of
35industrial hemp.
-2- 1b. A registrant shall assist the department in preparing
2and compiling the results of the survey. Until a regents
3institution is registered under section 188.14, Iowa state
4university shall act in lieu of the registrant.
53. The report may include the compilation of data, but
6shall not disclose any information that is confidential under
7section 188.9, including the identity of a licensee or the
8location of any facility used by the licensee in the production
9of industrial hemp. This subsection shall not preclude the
10disclosure of information to the extent that the licensee
11voluntarily agrees in writing that such information is to be
12considered a public record under section 188.9.
13 Sec. 5. NEW SECTION. 188.4 Rules and forms.
14The department shall adopt all rules and prepare and publish
15all forms required to administer this chapter and comply with
167 U.S.C. §5940. The department may require the mandatory use
17of a form and refuse to accept a document that is not prepared
18using a mandatory form.
19 Sec. 6. NEW SECTION. 188.5 Compliance with federal law.
201. The purpose of this chapter is to fully implement the
21provisions of 7 U.S.C. §5940.
222. The programs established under this chapter and any
23projects administered under those programs are for the
24exclusive purpose of growing, cultivating, and marketing
25industrial hemp in a manner that complies with the programs and
26projects described in 7 U.S.C. §5940.
273. a. The department shall seek to obtain any necessary
28approval by the drug enforcement administration of the United
29States department of justice in order to obtain industrial hemp
30seeds for certification pursuant to section 188.18 as part of
31the industrial hemp commodity program as provided in section
32188.13 or the industrial hemp production program as provided
33in section 188.14.
34b. A registrant may seek to obtain any necessary approval
35by the drug enforcement administration of the United States
-3-1department of justice in order to obtain industrial hemp seeds
2for certification pursuant to section 188.18 as part of the
3industrial hemp production program as provided in section
4188.14.
54. The department or a registrant may seek a waiver of a
6federal regulation promulgated by the United States department
7of agriculture or the drug enforcement administration of the
8United States department of justice if necessary to fully
9implement the provisions of this chapter.
10 Sec. 7. NEW SECTION. 188.6 General prohibitions.
111. A person shall not produce, handle, transport, market,
12or process industrial hemp in this state unless the industrial
13hemp has been produced pursuant to the industrial hemp
14commodity program established pursuant to section 188.13 or
15the industrial hemp production program established pursuant to
16section 188.14.
172. Nothing in this chapter prevents a person from producing,
18handling, transporting, marketing, or processing an industrial
19hemp product.
20 Sec. 8. NEW SECTION. 188.7 Cannabidiol production
21prohibited — contingent repeal.
221. Industrial hemp shall not be used to produce medical
23cannabidiol as defined in section 124E.2.
242. Nothing in this chapter shall be construed to authorize
25a person to recommend, possess, use, dispense, deliver,
26transport, or administer medical cannabidiol.
27 Sec. 9. NEW SECTION. 188.8 Maximum concentration of
28tetrahydrocannabinol.
291. A test of a Cannabis sativa plant under this chapter
30shall be conducted by the department or a qualified public or
31private laboratory approved by the department. The department
32shall establish protocols for sampling and testing Cannabis
33sativa plants produced pursuant to the provisions of this
34chapter, including for obtaining test samples for delivery to
35the laboratory, and the receipt of test results delivered to
-4-1the department, a registrant, or a licensee. The concentration
2of delta-9 tetrahydrocannabinol present in a Cannabis sativa
3plant shall be measured on a dry weight basis in the same
4manner as provided under 7 U.S.C. §5940 unless subsequent
5controlling federal law provides otherwise.
62. The maximum concentration of delta-9
7tetrahydrocannabinol present in a Cannabis sativa plant in
8order for the plant to qualify as industrial hemp shall be
9established by the department. The department’s established
10maximum concentration shall be the same as the maximum
11concentration allowed to be present to qualify as industrial
12hemp under 7 U.S.C. §5940 or any subsequent controlling federal
13law.
143. In testing Cannabis sativa plants which comprise a crop,
15a composite test result that exceeds the maximum concentration
16of delta-9 tetrahydrocannabinol as provided in subsections 1
17and 2 is deemed conclusive that the crop exceeds the maximum
18concentration for industrial hemp.
19 Sec. 10. NEW SECTION. 188.9 Confidential information —
20exceptions.
211. a. All of the following information is confidential:
22(1) A completed license application, or information which
23is part of such application, acquired by the department,
24a registrant, or a law enforcement agency under section
25188.15. For purposes of this subparagraph, a completed license
26application does not include the results of a national criminal
27history record check acquired by the department from the
28department of public safety pursuant to section 188.15.
29(2) A license issued by the department to the applicant
30under section 188.15.
31(3) Any information acquired by the department or a
32registrant from a licensee participating in or seeking to
33participate in the industrial hemp commodity program under
34section 188.13 or the industrial hemp production program under
35section 188.14.
-5- 1(4) A certification of industrial hemp seed issued by the
2association to the department, a registrant, or a licensee
3under section 188.18.
4(5) A survey acquired by the department or by Iowa state
5university from the department under section 188.3.
6(6) Information relating to the inspection of a licensee
7participating in the industrial hemp commodity program under
8section 188.13 or the industrial hemp production program under
9section 188.14.
10(7) The results of any test sample of an industrial hemp
11crop regardless of whether the test was conducted by the
12department, a registrant, or a licensee participating in the
13industrial hemp commodity program under section 188.13 or the
14industrial hemp production program under section 188.14.
15(8) Any other information that identifies the business
16location, operations, management, practices, or finances of a
17licensee participating in the industrial hemp commodity program
18under section 188.13 or the industrial hemp production program
19under section 188.14.
20b. The confidential information may be in a printed or
21electronic format as part of a document, other tangible medium,
22or accessible by a computer or similar device.
232. The confidential information described in subsection
241 is not a public record and is not otherwise subject to
25disclosure under chapter 22. Such information that is
26subsequently disclosed to a person under this chapter retains
27its confidentiality in the manner provided in this section.
283. The department shall establish requirements and
29procedures for the disclosure of confidential information
30described in subsection 1, including to any of the following:
31a. To a person authorized to receive the confidential
32information under this chapter.
33b. A federal agency or another state’s agency as part of
34the process to evaluate the approval or renewal of a license
35under section 188.15 or the licensee’s participation in the
-6-1industrial hemp commodity program under section 188.13 or the
2industrial hemp production program under section 188.14.
3c. A law enforcement agency or a federal agency which
4requests the confidential information in order to respond
5to an emergency situation, a criminal complaint, or an
6ongoing criminal investigation, subject to any applicable
7confidentiality requirements for public records under section
822.7.
9d. The department in conducting a disciplinary action
10against a licensee under section 188.26.
11e. A party in any judicial or administrative proceeding
12involving discovery, so long as the disclosure is made upon
13subpoena, or other means of legal compulsion for release.
14f. Any person making a request to the custodian of the
15confidential information in the same manner as provided in
16section 22.2 to the extent that the licensee voluntarily agrees
17in writing that such information is to be considered a public
18record subject to chapter 22.
19 Sec. 11. NEW SECTION. 188.10 Liability.
20The department or a registrant is not liable for the actions
21of a licensee regardless of the department’s or registrant’s
22legal relationship with the licensee, including but not limited
23to any relationship as an agent, principal, fiduciary, or party
24to a contract.
25 Sec. 12. NEW SECTION. 188.11 Industrial hemp council —
26establishment, membership, procedures.
271. An industrial hemp council is established under the
28purview of the department.
292. a. The council shall consist of the following voting
30members:
31(1) An individual who has experience in the regulation
32of industrial hemp production, appointed by the secretary of
33agriculture.
34(2) An individual who is a member of an agricultural
35cooperative association as defined in section 502.102,
-7-1appointed by the secretary of agriculture.
2(3) Two employees of the department appointed by the
3secretary of agriculture. The employees shall be knowledgeable
4regarding the production of agricultural crops. One employee
5may be the state entomologist. One employee may be an employee
6knowledgeable about procedures and practices relating to the
7import of agricultural seeds or inputs.
8(4) One employee of the department of natural resources
9appointed by the director of the department of natural
10resources. The employee must be knowledgeable regarding
11agricultural practices and environmental regulations.
12(5) One employee of the department of public safety
13appointed by the director of the department. The person must
14be knowledgeable regarding federal and state drug enforcement
15policies.
16(6) One employee of a registrant appointed by the president
17of the registrant’s regents institution. The employee must
18be knowledgeable regarding plant sciences. Until such a
19registrant is appointed, one employee of Iowa state university
20appointed by the president of the university shall serve as a
21member. The employee must be knowledgeable regarding plant
22sciences.
23b. The council shall also include four members of the
24general assembly appointed to serve in an ex officio, nonvoting
25capacity. The legislative members shall be selected, one
26member each, by the majority leader of the senate, the
27minority leader of the senate, the speaker of the house of
28representatives, and the minority leader of the house of
29representatives.
303. A voting member who has not been appointed shall be
31confirmed by the senate pursuant to section 2.32.
324. A public member is eligible to receive compensation as
33provided in section 7E.6 and shall be reimbursed for actual and
34necessary expenses incurred in the discharge of the member’s
35duties. The moneys used to pay expenses and compensation
-8-1shall be paid from moneys in the industrial hemp commodity
2fund established in section 188.23. A legislative member is
3eligible to receive a per diem and expenses as provided in
4section 2.10.
55. a. A public member shall serve a three-year staggered
6term commencing and ending as provided in section 69.19. A
7state employee member shall serve at the pleasure of the
8appointing authority.
9b. The voting members shall elect a chairperson and vice
10chairperson annually from the voting membership. A majority of
11the voting members constitutes a quorum. If the chairperson
12and vice chairperson are unable to preside over the council, a
13majority of the voting members present may elect a temporary
14chairperson.
156. A vacancy on the council shall be filled in the same
16manner as the original appointment. A member appointed to fill
17a vacancy created other than by expiration of a term shall be
18appointed for the remainder of the unexpired term.
197. The council shall be housed within the department and the
20department, in cooperation with Iowa state university, shall
21furnish the council with a meeting place and all articles,
22supplies, and services necessary to enable the council to
23perform its duties. Iowa state university or the office of
24attorney general may provide any technical or legal assistance
25requested by the council or department.
268. The appointments of the public members are subject to the
27requirements of sections 69.16, 69.16A, and 69.19. A public
28member is eligible for reappointment. The secretary may remove
29a public member if the removal is based on the public member’s
30misfeasance, malfeasance, or willful neglect of duty or other
31just cause, after notice and hearing, unless the notice and
32hearing is expressly waived by the public member in writing.
33 Sec. 13. NEW SECTION. 188.12 Industrial hemp council —
34powers and duties.
351. The council shall advise the department and each
-9-1registrant regarding all of the following:
2a. All aspects relating to the administration of the
3industrial hemp commodity program established pursuant to
4section 188.13 and the industrial hemp production program
5established pursuant to section 188.14.
6b. The establishment of fees assessed, imposed, and
7collected pursuant to sections 188.21 and 188.22.
8c. The management of the industrial hemp commodity fund
9established in section 188.23.
102. The council shall advise the department regarding all of
11the following:
12a. Disciplinary action taken against a licensee pursuant to
13section 188.26.
14b. The establishment of a range of civil penalties to be
15imposed, assessed, and collected pursuant to section 188.27.
163. The council shall advise a registrant regarding the
17terms and conditions of contracts entered into with a selected
18licensee under section 188.17.
194. The council shall not control policy decisions or direct
20the administration or enforcement of this chapter.
21 Sec. 14. NEW SECTION. 188.13 Industrial hemp commodity
22program — department and licensees.
231. The department shall establish and administer an
24industrial hemp commodity program. The purpose of the
25program is to determine the economic feasibility of producing
26industrial hemp as a profitable commodity in this state and of
27the effective handling, transporting, marketing, and processing
28of the commodity in this state.
292. A person must be licensed pursuant to section 188.15 to
30participate in the program. Under the program, a licensee may
31produce all of the following:
32a. Industrial hemp plants which shall to every extent
33feasible be processed into industrial hemp products for
34marketing in commercial channels.
35b. Industrial hemp seeds which shall to every extent
-10-1feasible be processed into industrial hemp products or used to
2produce a subsequent industrial hemp crop.
33. The department may establish standards for the labeling
4or marketing of industrial hemp produced under this section.
5The standards shall to every extent feasible be in accordance
6with applicable standards in chapter 210.
74. A licensee must immediately report the loss of any
8industrial hemp to the department.
95. A licensee shall retain industrial hemp or transfer
10industrial hemp to another person only as authorized by the
11department. The licensee may retain industrial hemp seeds
12capable of germination only as authorized by the department.
13The licensee shall only transfer industrial hemp seed that is
14capable of germination to the department, a registrant, or
15another licensee as approved by the department or any other
16person authorized by law to receive the industrial hemp seed.
176. A licensee must regularly test the industrial hemp to
18ensure that the industrial hemp does not exceed the maximum
19concentration of delta-9 tetrahydrocannabinol as provided in
20section 188.8.
217. The department shall conduct an inspection of the
22licensee’s facilities and business records as provided in
23section 188.16.
24 Sec. 15. NEW SECTION. 188.14 Industrial hemp production
25program — registrants and licensees.
261. A regents institution, or two or more regents
27institutions acting jointly, may establish and administer
28an industrial hemp production program. The purpose of the
29program shall be to determine the feasibility of increasing
30the production acreage and yield of industrial hemp as a
31profitable crop and reducing the concentration of delta-9
32tetrahydrocannabinol in the industrial hemp.
332. In order to administer a program, the regents institution
34or regents institutions acting jointly must register with
35the department according to requirements established by the
-11-1department. The registration shall include a research plan
2that summarizes the quantifiable short-term and long-term goals
3of the research. A copy of the registration shall also be
4filed with the council, the governor, and the general assembly.
53. The department has all the same powers to regulate
6a licensee under this program as the department does in
7regulating a licensee under the industrial hemp commodity
8program pursuant to section 188.13. A licensee participating
9in this program shall comply with the same requirements as a
10licensee participating in the industrial hemp commodity program
11under section 188.13, unless the department provides otherwise.
124. Only a registrant, including a licensee acting under
13the supervision of the registrant, may participate in the
14program. Under the program, a registrant may produce any of
15the following:
16a. Industrial hemp plants which may be processed into
17industrial hemp products.
18b. Industrial hemp seeds which may be processed into
19industrial hemp products. A registrant may retain industrial
20hemp seeds capable of germination to produce the next crop of
21industrial hemp or transfer the seeds to another person for
22purposes of scientific research. The registrant shall retain
23or transfer the seeds after consulting with the department.
245. A registrant must regularly test the industrial hemp to
25ensure that the industrial hemp does not exceed the maximum
26concentration of delta-9 tetrahydrocannabinol as provided in
27section 188.8.
286. A registrant must immediately report the loss of any
29industrial hemp produced by the registrant to the department.
307. A registrant must maintain records regarding production
31and transfer of the industrial hemp by the registrant. The
32records shall to every extent practicable contain the same type
33of information contained in records maintained by licensees
34under section 188.13.
358. A registrant’s inspection of a licensee’s facilities
-12-1may be conducted as provided in the industrial hemp production
2contract entered into by the registrant and licensee under
3section 188.17. The registrant may request that the department
4assign an official or that a law enforcement agency assign an
5officer to accompany the registrant during the inspection.
6 Sec. 16. NEW SECTION. 188.15 Industrial hemp commodity
7license — requirements.
81. The department shall establish and administer a process
9to receive, evaluate, and approve applications for industrial
10hemp commodity licenses by persons seeking to participate in
11the industrial hemp commodity program under section 188.13 or
12the industrial hemp production program under section 188.14.
13A license expires one year from the date of issuance. An
14expired license may be renewed for three additional years. The
15department may require that a licensee apply for an amended
16or new license if information contained in the existing
17application is no longer accurate or is incomplete.
182. An applicant shall not be issued a license unless the
19applicant agrees to comply with all terms and conditions
20relating to the department’s regulation of the licensee.
213. The department shall disapprove the application of
22a person for good cause, which shall include any of the
23following:
24a. The conviction of a felony within the prior ten years or
25any drug offense within the same period, regardless of whether
26the conviction is in this state or another state.
27b. The revocation of a license under section 188.26, or
28the revocation of a license, permit, registration, or other
29authorization to produce industrial hemp in any other state.
304. The department shall not issue a license until the
31applicant has furnished a surety bond to the department in
32an amount of not more than ten thousand dollars. The surety
33bond shall insure payment of any amount that the licensee is
34legally obligated to pay for any costs associated with the
35confiscation and destruction of the licensee’s industrial hemp
-13-1crop under section 188.25. The surety bond shall be maintained
2at all times during the period of licensure. The department
3shall be notified ten days prior to any reduction in the amount
4of the surety bond made at the request of the applicant or
5cancellation of the surety bond by the surety. The total and
6aggregate liability of the surety shall be limited to the face
7amount of the surety bond.
85. The department may do all of the following:
9a. Limit the number of applications that it accepts or
10limit the period or periods when applications will be received,
11evaluated, or accepted each year.
12b. Establish criteria required to participate in a program
13which may be based on the qualifications or good character
14of the applicant, the applicant’s proposed investment in
15industrial hemp production, the applicant’s experience in
16commercial crop production, and the type and size of the
17applicant’s existing agricultural operation. The department
18may prepare and publish guidelines to assist persons in
19determining eligibility requirements.
20c. Require the issuance of different types of licenses or
21require an applicant to obtain more than one license based
22on criteria established by the department, including but not
23limited to whether the proposed industrial hemp production is
24to occur on noncontiguous parcels of land, whether industrial
25hemp plants or industrial hemp seeds are proposed to be
26produced, or whether the applicant is proposing to participate
27in the industrial hemp commodity program under section 188.13
28or the industrial hemp production program under section 188.14.
29d. Require that all or some licenses expire on the same
30date.
31e. Provide a different application and requirements for
32the submission, evaluation, and approval or disapproval of an
33application for a renewed license. However, the department
34shall require a check of the applicant’s national criminal
35history record to be conducted under this section each time a
-14-1license is issued or renewed.
26. The department shall prepare and publish license
3application forms. A completed application form submitted to
4the department shall contain all of the following:
5a. The applicant’s full name and residence address.
6b. A legal description, global positioning system location,
7and map of the site where the applicant proposes to produce the
8industrial hemp.
9c. Information required by the department to conduct a check
10of the applicant’s criminal history record. The department
11shall require an applicant to submit pictures, fingerprints,
12and descriptions of physical characteristics on forms required
13by the department of public safety. The department of
14agriculture and land stewardship shall submit the applicant’s
15fingerprints and other necessary information to the department
16of public safety, division of criminal investigation, for the
17purpose of conducting a national criminal history record check
18through the federal bureau of investigation. The department
19of public safety shall notify the department of agriculture
20and land stewardship of the results of the national criminal
21history record check. The results shall be considered a
22confidential record under chapter 22 and shall not be released
23without the consent of the department of public safety. The
24department of agriculture and land stewardship shall reimburse
25the department of public safety for costs associated with
26conducting the national criminal history record check.
27d. Any other information required by the department in order
28to administer this chapter.
297. The department of agriculture and land stewardship shall
30deliver a copy of an approved application for a license to
31the department of public safety and the office of the county
32sheriff in the county where the industrial hemp is approved
33to be produced by the licensee in order to participate in the
34industrial hemp commodity program under section 188.13 or the
35industrial hemp production program under section 188.14.
-15- 18. A license shall be suspended or revoked as provided in
2section 188.26.
3 Sec. 17. NEW SECTION. 188.16 Licensees — inspections by
4department and law enforcement agencies.
51. The department may conduct an official inspection of
6a licensee’s facilities where industrial hemp is produced,
7stored, handled, transported, marketed, or processed. The
8department shall conduct an official inspection during regular
9business hours. As part of an official inspection, the
10department shall collect a sample of the crop for testing under
11section 188.8 at least once and within thirty days prior to
12harvest. The department may order or request that a licensee
13independently collect and test one or more samples of the crop
14during the growing period and notify the department of the
15results.
162. A licensee shall immediately notify the department of
17the results of any test that exceeds the maximum concentration
18of delta-9 tetrahydrocannabinol as provided in section 188.8,
19regardless of whether the department ordered, requested, or
20knew of the test.
213. The department may request that a law enforcement
22agency assign an officer to accompany the department during an
23official inspection of the facilities of a licensee.
244. As part of its official inspection, the department
25may examine the licensee’s business records. However, a law
26enforcement officer shall not accompany the department during
27the examination.
28 Sec. 18. NEW SECTION. 188.17 Industrial hemp production
29contract — requirements.
30A registrant may enter into an industrial hemp production
31contract with a licensee to produce industrial hemp under the
32supervision of the registrant. The registrant shall supervise
33the production of the industrial hemp in cooperation with the
34department. The contract shall provide for the regulation of
35the licensee and the industrial hemp produced by the licensee
-16-1in the same manner as provided in section 188.13, unless
2otherwise provided by the department in consultation with the
3registrant.
4 Sec. 19. NEW SECTION. 188.18 Industrial hemp seed capable
5of germination — certification.
61. The Iowa crop improvement association shall certify
7industrial hemp seed capable of germination for use by a
8licensee as part of the industrial hemp commodity program
9under section 188.13 or a registrant as part of the industrial
10hemp production program under section 188.14. The association
11may provide different certification processes, including for
12industrial hemp seed produced or obtained by a registrant or
13obtained from a qualified and reputable industrial hemp seed
14source and supplier.
152. The association’s certification protocols may be based
16on standards promulgated by independent organizations including
17but not limited to the association of official seed certifying
18agencies and verifications offered by qualified and reliable
19persons in the business of providing such seed.
203. The Iowa crop improvement association shall notify the
21department and the registrant, as applicable, of the results of
22a request for the certification of industrial hemp seed.
234. A licensee may import industrial hemp seed for
24certification only if allowed by the department acting in
25consultation with the association. A registrant may import
26industrial seed for certification after consulting with the
27department and the association.
28 Sec. 20. NEW SECTION. 188.19 Industrial hemp seed capable
29of germination — sale by the department.
301. The department shall offer certified industrial hemp
31seed for sale to licensees participating in the industrial hemp
32commodity program established pursuant to section 188.13. The
33department may offer certified industrial hemp seed for sale to
34a registrant participating in the industrial hemp production
35program established pursuant to section 188.14.
-17- 12. Moneys collected by the department from the sale of
2certified industrial hemp seed shall be deposited into the
3industrial hemp commodity fund established in section 188.23.
4 Sec. 21. NEW SECTION. 188.20 Industrial hemp seed capable
5of germination — sale by a registrant.
61. A registrant may offer certified industrial hemp seed
7for sale to the department, or a licensee participating in the
8industrial hemp production program established pursuant to
9section 188.14.
102. All moneys received by a registrant under subsection 1
11shall be handled in the same manner as repayment receipts as
12defined in section 8.2, and shall be used by the registrant
13exclusively for the registrant’s administration of the
14industrial hemp production program.
15 Sec. 22. NEW SECTION. 188.21 Fees assessed by department.
161. The department shall assess and collect all of the
17following:
18a. An application fee to be paid by a person seeking to
19obtain an industrial hemp commodity license as provided in
20section 188.15.
21b. A license fee to be paid by a person being issued an
22industrial hemp commodity license as provided in section
23188.15.
24c. An inspection fee to be paid by a licensee as part of
25an inspection of the facilities where the industrial hemp is
26produced as provided in section 188.16.
27d. A laboratory fee to be paid by a licensee if the
28department takes samples of industrial hemp for testing by a
29laboratory as provided in section 188.8.
302. The fees described in subsection 1 are nonrefundable.
313. The total amount of fees collected pursuant to this
32section shall not exceed the department’s estimate of the total
33amount of revenues necessary to administer and enforce the
34provisions of this chapter. Prior to the beginning of a fiscal
35year, the department shall establish an estimated total amount
-18-1based on the expected costs to be incurred by the department
2in administering and enforcing the provisions of this chapter
3during the subsequent fiscal year.
44. The department may establish different rates for any
5category of fees described in subsection 1 based on criteria
6determined relevant by the department, which may include the
7type of license issued and the number of acres set aside for
8industrial hemp production by a licensee.
95. All fees collected by the department under this section
10shall be deposited into the industrial hemp commodity fund
11established pursuant to section 188.23.
12 Sec. 23. NEW SECTION. 188.22 Fees assessed by registrants.
131. A registrant may assess and collect fees from licensees
14participating in the registrant’s industrial hemp production
15program as provided in section 188.14. The total amount
16of fees paid shall not exceed the expenses incurred by the
17registrant in selecting licensees to participate in the
18program, conducting inspections of facilities where the
19industrial hemp is produced, and taking samples of industrial
20hemp to be tested by a laboratory as provided in section 188.8.
212. All moneys received by a registrant under this section
22shall be handled in the same manner as repayment receipts as
23defined in section 8.2, and shall be used by the registrant
24exclusively for the registrant’s administration of the
25industrial hemp production program.
26 Sec. 24. NEW SECTION. 188.23 Industrial hemp commodity fund
27— appropriation.
281. An industrial hemp commodity fund is established in
29the state treasury under the management and control of the
30department.
312. The fund shall include moneys collected by the department
32from the sale of certified seed under section 188.19, fees
33collected under section 188.21, and moneys appropriated by the
34general assembly for deposit in the fund. The fund may include
35other moneys available to and obtained or accepted by the
-19-1department, including moneys from public or private sources.
23. Moneys in the fund are appropriated to the department
3and shall be used exclusively to carry out the responsibilities
4conferred upon the department under this chapter as determined
5and directed by the department, and shall not require further
6special authorization by the general assembly.
74. a. Notwithstanding section 12C.7, interest or earnings
8on moneys in the fund shall be credited to the fund.
9b. Notwithstanding section 8.33, moneys credited to the fund
10that remain unexpended or unobligated at the end of a fiscal
11year shall not revert to any other fund.
12 Sec. 25. NEW SECTION. 188.24 Cooperation with department
13of public safety.
141. The department of agriculture and land stewardship and a
15registrant shall cooperate with the department of public safety
16in order to administer this chapter.
172. The department of public safety shall assist the
18department of agriculture and land stewardship in conducting
19national criminal history record checks of applicants applying
20for licenses under section 188.15.
213. The department of agriculture and land stewardship and
22a registrant shall upon request or as part of routine process
23provide the department of public safety with the following
24information regarding the industrial hemp commodity program
25under section 188.13 and the industrial hemp production program
26under section 188.14:
27a. The status of the production and the results of any test
28of a crop produced by a licensee under this chapter.
29b. The date and time of an inspection of a licensee’s
30facilities or business records.
31c. The confiscation and destruction of a crop under section
32188.25.
33 Sec. 26. NEW SECTION. 188.25 Confiscation and destruction.
341. A Cannabis sativa plant exceeding the maximum
35concentration of delta-9 tetrahydrocannabinol as provided in
-20-1section 188.8 and that is produced under the industrial hemp
2commodity program established pursuant to section 188.13 shall
3be confiscated by the department.
42. A Cannabis sativa plant exceeding the maximum
5concentration of delta-9 tetrahydrocannabinol as provided in
6section 188.8 and that is produced under the industrial hemp
7production program established pursuant to section 188.14
8shall be confiscated by the registrant in cooperation with the
9department.
103. The department shall provide for the destruction,
11including any accompanying disposal, of a confiscated Cannabis
12sativa plant produced under the industrial hemp commodity
13program under section 188.13 or the industrial hemp production
14program under section 188.14. A registrant may provide for the
15destruction of a confiscated Cannabis sativa plant produced
16under the industrial hemp production program under section
17188.14 in cooperation with the department. The department
18or a registrant shall not confiscate or destroy a Cannabis
19sativa plant unless the results of an official test conducted
20by the department indicate that a sample exceeds the maximum
21concentration of delta-9 tetrahydrocannabinol as provided in
22section 188.8. The department, or a registrant acting in
23cooperation with the department, may require that a confiscated
24Cannabis sativa plant be kept on the premises where the plant
25was confiscated, including where it is produced, handled,
26transported, marketed, or processed, until arrangements are
27made for the plant’s removal and destruction. The destruction
28may also occur on the premises where the plant was confiscated
29if such premises may be reasonably used for that purpose
30as determined by the department or by the registrant in
31cooperation with the department. The destruction shall be
32accomplished in a manner that complies with requirements of the
33department and shall be in accordance with applicable federal
34law.
354. The department or registrant may request assistance from
-21-1a law enforcement agency necessary to carry out this section.
2The department or registrant upon request shall deliver any
3sample of the plant to the law enforcement agency.
4 Sec. 27. NEW SECTION. 188.26 Disciplinary action.
51. The department may suspend or revoke the license obtained
6under section 188.15 by a person who does any of the following:
7a. Provides false or misleading information on an
8application for an industrial hemp commodity license as
9provided in section 188.15.
10b. Provides false or misleading information to the
11department as part of the industrial hemp commodity program
12under section 188.13 or to a registrant or the department as
13part of the industrial hemp production program under section
14188.14.
15c. Fails to comply with or violates any provision of this
16chapter, including a rule adopted by the department under
17section 188.4, a condition of an application for the issuance
18of a license under section 188.15, or a condition of a contract
19entered into with a registrant under section 188.17.
20d. Fails to comply with an order issued by the department or
21a registrant under this chapter.
222. The suspension or revocation of a license is in addition
23to the confiscation and destruction of a Cannabis sativa plant
24under section 188.25, a civil penalty under section 188.27, or
25any other civil or criminal penalty that may be imposed on the
26person under state or federal law.
27 Sec. 28. NEW SECTION. 188.27 Civil penalties.
281. A person who violates a provision of this chapter is
29subject to a civil penalty of not less than five hundred
30dollars and not more than two thousand five hundred dollars.
31The department may assess and collect the civil penalty. Each
32day that a continuing violation occurs shall be considered a
33separate offense.
342. The department shall establish a schedule of civil
35penalties for violations of this chapter.
-22- 13. A civil penalty shall not be assessed against a
2licensee for a violation that results in the confiscation and
3destruction of the licensee’s crop under section 188.25, unless
4the composite test result is greater than two percent delta-9
5tetrahydrocannabinol as determined in section 188.8.
64. All civil penalties collected under this section shall be
7deposited into the general fund of the state.
8 Sec. 29. NEW SECTION. 188.28 Criminal penalties.
9A person who knowingly or intentionally produces the
10Cannabis sativa plant and who is not the department, a
11registrant, or a licensee participating in the industrial hemp
12commodity program established pursuant to section 188.13 or
13the industrial hemp production program established pursuant to
14section 188.14 is subject to the provisions in chapters 124 and
15453B.
16 Sec. 30. NEW SECTION. 262.80 Industrial hemp production
17program.
18The board of regents may consult with Iowa state university
19of science and technology, the university of Iowa, and the
20university of northern Iowa to provide for the participation
21of those universities in administering an industrial hemp
22production program in cooperation with the department of
23agriculture and land stewardship as provided in chapter 188.
da/rj/jh
2of its production as part of a research program, marketing
3for purposes of manufacturing industrial hemp products,
4providing for fees, making appropriations, providing for
5enforcement and the confiscation and destruction of certain
6property, and including penalties.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 124.401, subsection 5, Code 2018, is
2amended by adding the following new unnumbered paragraph:
3 NEW UNNUMBERED PARAGRAPH. Notwithstanding this subsection
4or any other provision of this chapter to the contrary, a
5person may produce, possess, deliver, transport, process,
6and use industrial hemp in accordance with the provisions of
7chapter 188.
8 Sec. 2. NEW SECTION. 188.1 Short title.
9This chapter shall be known and may be cited as the “Iowa
10Industrial Hemp Act”.
11 Sec. 3. NEW SECTION. 188.2 Definitions.
12As used in this chapter, unless the context otherwise
13requires:
141. “Association” means the Iowa crop improvement association
15recognized pursuant to section 177.1.
162. “Certified industrial hemp seed” means industrial hemp
17seed that has been certified pursuant to section 188.18.
183. “Council” means the industrial hemp council established
19in section 188.11.
204. “Department” means the department of agriculture and land
21stewardship.
225. “Industrial hemp” means any part of the Cannabis
23sativa plant, whether growing or not, with a concentration of
24delta-9 tetrahydrocannabinol that does not exceed the maximum
25concentration for the plant as determined pursuant to section
26188.8.
276. “Industrial hemp plant” means all nonseed parts of
28industrial hemp, whether growing or not.
297. a. “Industrial hemp product” means any item manufactured
30from industrial hemp, including but not limited to cloth,
31cordage, fiber, food, fuel, paint, paper, particleboard,
32plastic, industrial hemp seed, seed meal, or seed oil.
33b. “Industrial hemp product” does not include industrial
34hemp seed that is capable of germination.
358. “Industrial hemp seed” means seed produced by industrial
-1-1hemp regardless of whether the seed is capable of germination.
29. “Iowa state university” means Iowa state university of
3science and technology.
410. “Law enforcement agency” means the department of public
5safety, an office of county sheriff, or a city’s police force.
611. “Licensee” means a person who obtains a license from
7the department under section 188.15 to participate in the
8industrial hemp commodity program established pursuant to
9section 188.13 or the industrial hemp production program
10established pursuant to section 188.14.
1112. “Production” means any part of planting, cultivating,
12or harvesting industrial hemp.
1313. “Regents institution” means the university of Iowa, Iowa
14state university of science and technology, or the university
15of northern Iowa governed by the state board of regents under
16section 262.7.
1714. “Registrant” means a regents institution that registers
18with the department to administer the industrial hemp
19production program established in section 188.14.
20 Sec. 4. NEW SECTION. 188.3 Report.
211. The department shall prepare and submit an annual report
22to the governor and general assembly not later than January 10.
23The report shall evaluate the success of the industrial hemp
24commodity program established pursuant to section 188.13 and
25the industrial hemp production program established pursuant
26to section 188.14. The department, in cooperation with any
27registrant, may establish performance benchmarks and make
28recommendations for consideration by the general assembly in
29order to meet the purposes of the programs in compliance with
30the requirements of 7 U.S.C. §5940.
312. a. In preparing the report, the department may require
32that a select number of licensees complete and submit a brief
33survey regarding the licensee’s business operations including
34the production, handling, transportation, or processing of
35industrial hemp.
-2- 1b. A registrant shall assist the department in preparing
2and compiling the results of the survey. Until a regents
3institution is registered under section 188.14, Iowa state
4university shall act in lieu of the registrant.
53. The report may include the compilation of data, but
6shall not disclose any information that is confidential under
7section 188.9, including the identity of a licensee or the
8location of any facility used by the licensee in the production
9of industrial hemp. This subsection shall not preclude the
10disclosure of information to the extent that the licensee
11voluntarily agrees in writing that such information is to be
12considered a public record under section 188.9.
13 Sec. 5. NEW SECTION. 188.4 Rules and forms.
14The department shall adopt all rules and prepare and publish
15all forms required to administer this chapter and comply with
167 U.S.C. §5940. The department may require the mandatory use
17of a form and refuse to accept a document that is not prepared
18using a mandatory form.
19 Sec. 6. NEW SECTION. 188.5 Compliance with federal law.
201. The purpose of this chapter is to fully implement the
21provisions of 7 U.S.C. §5940.
222. The programs established under this chapter and any
23projects administered under those programs are for the
24exclusive purpose of growing, cultivating, and marketing
25industrial hemp in a manner that complies with the programs and
26projects described in 7 U.S.C. §5940.
273. a. The department shall seek to obtain any necessary
28approval by the drug enforcement administration of the United
29States department of justice in order to obtain industrial hemp
30seeds for certification pursuant to section 188.18 as part of
31the industrial hemp commodity program as provided in section
32188.13 or the industrial hemp production program as provided
33in section 188.14.
34b. A registrant may seek to obtain any necessary approval
35by the drug enforcement administration of the United States
-3-1department of justice in order to obtain industrial hemp seeds
2for certification pursuant to section 188.18 as part of the
3industrial hemp production program as provided in section
4188.14.
54. The department or a registrant may seek a waiver of a
6federal regulation promulgated by the United States department
7of agriculture or the drug enforcement administration of the
8United States department of justice if necessary to fully
9implement the provisions of this chapter.
10 Sec. 7. NEW SECTION. 188.6 General prohibitions.
111. A person shall not produce, handle, transport, market,
12or process industrial hemp in this state unless the industrial
13hemp has been produced pursuant to the industrial hemp
14commodity program established pursuant to section 188.13 or
15the industrial hemp production program established pursuant to
16section 188.14.
172. Nothing in this chapter prevents a person from producing,
18handling, transporting, marketing, or processing an industrial
19hemp product.
20 Sec. 8. NEW SECTION. 188.7 Cannabidiol production
21prohibited — contingent repeal.
221. Industrial hemp shall not be used to produce medical
23cannabidiol as defined in section 124E.2.
242. Nothing in this chapter shall be construed to authorize
25a person to recommend, possess, use, dispense, deliver,
26transport, or administer medical cannabidiol.
27 Sec. 9. NEW SECTION. 188.8 Maximum concentration of
28tetrahydrocannabinol.
291. A test of a Cannabis sativa plant under this chapter
30shall be conducted by the department or a qualified public or
31private laboratory approved by the department. The department
32shall establish protocols for sampling and testing Cannabis
33sativa plants produced pursuant to the provisions of this
34chapter, including for obtaining test samples for delivery to
35the laboratory, and the receipt of test results delivered to
-4-1the department, a registrant, or a licensee. The concentration
2of delta-9 tetrahydrocannabinol present in a Cannabis sativa
3plant shall be measured on a dry weight basis in the same
4manner as provided under 7 U.S.C. §5940 unless subsequent
5controlling federal law provides otherwise.
62. The maximum concentration of delta-9
7tetrahydrocannabinol present in a Cannabis sativa plant in
8order for the plant to qualify as industrial hemp shall be
9established by the department. The department’s established
10maximum concentration shall be the same as the maximum
11concentration allowed to be present to qualify as industrial
12hemp under 7 U.S.C. §5940 or any subsequent controlling federal
13law.
143. In testing Cannabis sativa plants which comprise a crop,
15a composite test result that exceeds the maximum concentration
16of delta-9 tetrahydrocannabinol as provided in subsections 1
17and 2 is deemed conclusive that the crop exceeds the maximum
18concentration for industrial hemp.
19 Sec. 10. NEW SECTION. 188.9 Confidential information —
20exceptions.
211. a. All of the following information is confidential:
22(1) A completed license application, or information which
23is part of such application, acquired by the department,
24a registrant, or a law enforcement agency under section
25188.15. For purposes of this subparagraph, a completed license
26application does not include the results of a national criminal
27history record check acquired by the department from the
28department of public safety pursuant to section 188.15.
29(2) A license issued by the department to the applicant
30under section 188.15.
31(3) Any information acquired by the department or a
32registrant from a licensee participating in or seeking to
33participate in the industrial hemp commodity program under
34section 188.13 or the industrial hemp production program under
35section 188.14.
-5- 1(4) A certification of industrial hemp seed issued by the
2association to the department, a registrant, or a licensee
3under section 188.18.
4(5) A survey acquired by the department or by Iowa state
5university from the department under section 188.3.
6(6) Information relating to the inspection of a licensee
7participating in the industrial hemp commodity program under
8section 188.13 or the industrial hemp production program under
9section 188.14.
10(7) The results of any test sample of an industrial hemp
11crop regardless of whether the test was conducted by the
12department, a registrant, or a licensee participating in the
13industrial hemp commodity program under section 188.13 or the
14industrial hemp production program under section 188.14.
15(8) Any other information that identifies the business
16location, operations, management, practices, or finances of a
17licensee participating in the industrial hemp commodity program
18under section 188.13 or the industrial hemp production program
19under section 188.14.
20b. The confidential information may be in a printed or
21electronic format as part of a document, other tangible medium,
22or accessible by a computer or similar device.
232. The confidential information described in subsection
241 is not a public record and is not otherwise subject to
25disclosure under chapter 22. Such information that is
26subsequently disclosed to a person under this chapter retains
27its confidentiality in the manner provided in this section.
283. The department shall establish requirements and
29procedures for the disclosure of confidential information
30described in subsection 1, including to any of the following:
31a. To a person authorized to receive the confidential
32information under this chapter.
33b. A federal agency or another state’s agency as part of
34the process to evaluate the approval or renewal of a license
35under section 188.15 or the licensee’s participation in the
-6-1industrial hemp commodity program under section 188.13 or the
2industrial hemp production program under section 188.14.
3c. A law enforcement agency or a federal agency which
4requests the confidential information in order to respond
5to an emergency situation, a criminal complaint, or an
6ongoing criminal investigation, subject to any applicable
7confidentiality requirements for public records under section
822.7.
9d. The department in conducting a disciplinary action
10against a licensee under section 188.26.
11e. A party in any judicial or administrative proceeding
12involving discovery, so long as the disclosure is made upon
13subpoena, or other means of legal compulsion for release.
14f. Any person making a request to the custodian of the
15confidential information in the same manner as provided in
16section 22.2 to the extent that the licensee voluntarily agrees
17in writing that such information is to be considered a public
18record subject to chapter 22.
19 Sec. 11. NEW SECTION. 188.10 Liability.
20The department or a registrant is not liable for the actions
21of a licensee regardless of the department’s or registrant’s
22legal relationship with the licensee, including but not limited
23to any relationship as an agent, principal, fiduciary, or party
24to a contract.
25 Sec. 12. NEW SECTION. 188.11 Industrial hemp council —
26establishment, membership, procedures.
271. An industrial hemp council is established under the
28purview of the department.
292. a. The council shall consist of the following voting
30members:
31(1) An individual who has experience in the regulation
32of industrial hemp production, appointed by the secretary of
33agriculture.
34(2) An individual who is a member of an agricultural
35cooperative association as defined in section 502.102,
-7-1appointed by the secretary of agriculture.
2(3) Two employees of the department appointed by the
3secretary of agriculture. The employees shall be knowledgeable
4regarding the production of agricultural crops. One employee
5may be the state entomologist. One employee may be an employee
6knowledgeable about procedures and practices relating to the
7import of agricultural seeds or inputs.
8(4) One employee of the department of natural resources
9appointed by the director of the department of natural
10resources. The employee must be knowledgeable regarding
11agricultural practices and environmental regulations.
12(5) One employee of the department of public safety
13appointed by the director of the department. The person must
14be knowledgeable regarding federal and state drug enforcement
15policies.
16(6) One employee of a registrant appointed by the president
17of the registrant’s regents institution. The employee must
18be knowledgeable regarding plant sciences. Until such a
19registrant is appointed, one employee of Iowa state university
20appointed by the president of the university shall serve as a
21member. The employee must be knowledgeable regarding plant
22sciences.
23b. The council shall also include four members of the
24general assembly appointed to serve in an ex officio, nonvoting
25capacity. The legislative members shall be selected, one
26member each, by the majority leader of the senate, the
27minority leader of the senate, the speaker of the house of
28representatives, and the minority leader of the house of
29representatives.
303. A voting member who has not been appointed shall be
31confirmed by the senate pursuant to section 2.32.
324. A public member is eligible to receive compensation as
33provided in section 7E.6 and shall be reimbursed for actual and
34necessary expenses incurred in the discharge of the member’s
35duties. The moneys used to pay expenses and compensation
-8-1shall be paid from moneys in the industrial hemp commodity
2fund established in section 188.23. A legislative member is
3eligible to receive a per diem and expenses as provided in
4section 2.10.
55. a. A public member shall serve a three-year staggered
6term commencing and ending as provided in section 69.19. A
7state employee member shall serve at the pleasure of the
8appointing authority.
9b. The voting members shall elect a chairperson and vice
10chairperson annually from the voting membership. A majority of
11the voting members constitutes a quorum. If the chairperson
12and vice chairperson are unable to preside over the council, a
13majority of the voting members present may elect a temporary
14chairperson.
156. A vacancy on the council shall be filled in the same
16manner as the original appointment. A member appointed to fill
17a vacancy created other than by expiration of a term shall be
18appointed for the remainder of the unexpired term.
197. The council shall be housed within the department and the
20department, in cooperation with Iowa state university, shall
21furnish the council with a meeting place and all articles,
22supplies, and services necessary to enable the council to
23perform its duties. Iowa state university or the office of
24attorney general may provide any technical or legal assistance
25requested by the council or department.
268. The appointments of the public members are subject to the
27requirements of sections 69.16, 69.16A, and 69.19. A public
28member is eligible for reappointment. The secretary may remove
29a public member if the removal is based on the public member’s
30misfeasance, malfeasance, or willful neglect of duty or other
31just cause, after notice and hearing, unless the notice and
32hearing is expressly waived by the public member in writing.
33 Sec. 13. NEW SECTION. 188.12 Industrial hemp council —
34powers and duties.
351. The council shall advise the department and each
-9-1registrant regarding all of the following:
2a. All aspects relating to the administration of the
3industrial hemp commodity program established pursuant to
4section 188.13 and the industrial hemp production program
5established pursuant to section 188.14.
6b. The establishment of fees assessed, imposed, and
7collected pursuant to sections 188.21 and 188.22.
8c. The management of the industrial hemp commodity fund
9established in section 188.23.
102. The council shall advise the department regarding all of
11the following:
12a. Disciplinary action taken against a licensee pursuant to
13section 188.26.
14b. The establishment of a range of civil penalties to be
15imposed, assessed, and collected pursuant to section 188.27.
163. The council shall advise a registrant regarding the
17terms and conditions of contracts entered into with a selected
18licensee under section 188.17.
194. The council shall not control policy decisions or direct
20the administration or enforcement of this chapter.
21 Sec. 14. NEW SECTION. 188.13 Industrial hemp commodity
22program — department and licensees.
231. The department shall establish and administer an
24industrial hemp commodity program. The purpose of the
25program is to determine the economic feasibility of producing
26industrial hemp as a profitable commodity in this state and of
27the effective handling, transporting, marketing, and processing
28of the commodity in this state.
292. A person must be licensed pursuant to section 188.15 to
30participate in the program. Under the program, a licensee may
31produce all of the following:
32a. Industrial hemp plants which shall to every extent
33feasible be processed into industrial hemp products for
34marketing in commercial channels.
35b. Industrial hemp seeds which shall to every extent
-10-1feasible be processed into industrial hemp products or used to
2produce a subsequent industrial hemp crop.
33. The department may establish standards for the labeling
4or marketing of industrial hemp produced under this section.
5The standards shall to every extent feasible be in accordance
6with applicable standards in chapter 210.
74. A licensee must immediately report the loss of any
8industrial hemp to the department.
95. A licensee shall retain industrial hemp or transfer
10industrial hemp to another person only as authorized by the
11department. The licensee may retain industrial hemp seeds
12capable of germination only as authorized by the department.
13The licensee shall only transfer industrial hemp seed that is
14capable of germination to the department, a registrant, or
15another licensee as approved by the department or any other
16person authorized by law to receive the industrial hemp seed.
176. A licensee must regularly test the industrial hemp to
18ensure that the industrial hemp does not exceed the maximum
19concentration of delta-9 tetrahydrocannabinol as provided in
20section 188.8.
217. The department shall conduct an inspection of the
22licensee’s facilities and business records as provided in
23section 188.16.
24 Sec. 15. NEW SECTION. 188.14 Industrial hemp production
25program — registrants and licensees.
261. A regents institution, or two or more regents
27institutions acting jointly, may establish and administer
28an industrial hemp production program. The purpose of the
29program shall be to determine the feasibility of increasing
30the production acreage and yield of industrial hemp as a
31profitable crop and reducing the concentration of delta-9
32tetrahydrocannabinol in the industrial hemp.
332. In order to administer a program, the regents institution
34or regents institutions acting jointly must register with
35the department according to requirements established by the
-11-1department. The registration shall include a research plan
2that summarizes the quantifiable short-term and long-term goals
3of the research. A copy of the registration shall also be
4filed with the council, the governor, and the general assembly.
53. The department has all the same powers to regulate
6a licensee under this program as the department does in
7regulating a licensee under the industrial hemp commodity
8program pursuant to section 188.13. A licensee participating
9in this program shall comply with the same requirements as a
10licensee participating in the industrial hemp commodity program
11under section 188.13, unless the department provides otherwise.
124. Only a registrant, including a licensee acting under
13the supervision of the registrant, may participate in the
14program. Under the program, a registrant may produce any of
15the following:
16a. Industrial hemp plants which may be processed into
17industrial hemp products.
18b. Industrial hemp seeds which may be processed into
19industrial hemp products. A registrant may retain industrial
20hemp seeds capable of germination to produce the next crop of
21industrial hemp or transfer the seeds to another person for
22purposes of scientific research. The registrant shall retain
23or transfer the seeds after consulting with the department.
245. A registrant must regularly test the industrial hemp to
25ensure that the industrial hemp does not exceed the maximum
26concentration of delta-9 tetrahydrocannabinol as provided in
27section 188.8.
286. A registrant must immediately report the loss of any
29industrial hemp produced by the registrant to the department.
307. A registrant must maintain records regarding production
31and transfer of the industrial hemp by the registrant. The
32records shall to every extent practicable contain the same type
33of information contained in records maintained by licensees
34under section 188.13.
358. A registrant’s inspection of a licensee’s facilities
-12-1may be conducted as provided in the industrial hemp production
2contract entered into by the registrant and licensee under
3section 188.17. The registrant may request that the department
4assign an official or that a law enforcement agency assign an
5officer to accompany the registrant during the inspection.
6 Sec. 16. NEW SECTION. 188.15 Industrial hemp commodity
7license — requirements.
81. The department shall establish and administer a process
9to receive, evaluate, and approve applications for industrial
10hemp commodity licenses by persons seeking to participate in
11the industrial hemp commodity program under section 188.13 or
12the industrial hemp production program under section 188.14.
13A license expires one year from the date of issuance. An
14expired license may be renewed for three additional years. The
15department may require that a licensee apply for an amended
16or new license if information contained in the existing
17application is no longer accurate or is incomplete.
182. An applicant shall not be issued a license unless the
19applicant agrees to comply with all terms and conditions
20relating to the department’s regulation of the licensee.
213. The department shall disapprove the application of
22a person for good cause, which shall include any of the
23following:
24a. The conviction of a felony within the prior ten years or
25any drug offense within the same period, regardless of whether
26the conviction is in this state or another state.
27b. The revocation of a license under section 188.26, or
28the revocation of a license, permit, registration, or other
29authorization to produce industrial hemp in any other state.
304. The department shall not issue a license until the
31applicant has furnished a surety bond to the department in
32an amount of not more than ten thousand dollars. The surety
33bond shall insure payment of any amount that the licensee is
34legally obligated to pay for any costs associated with the
35confiscation and destruction of the licensee’s industrial hemp
-13-1crop under section 188.25. The surety bond shall be maintained
2at all times during the period of licensure. The department
3shall be notified ten days prior to any reduction in the amount
4of the surety bond made at the request of the applicant or
5cancellation of the surety bond by the surety. The total and
6aggregate liability of the surety shall be limited to the face
7amount of the surety bond.
85. The department may do all of the following:
9a. Limit the number of applications that it accepts or
10limit the period or periods when applications will be received,
11evaluated, or accepted each year.
12b. Establish criteria required to participate in a program
13which may be based on the qualifications or good character
14of the applicant, the applicant’s proposed investment in
15industrial hemp production, the applicant’s experience in
16commercial crop production, and the type and size of the
17applicant’s existing agricultural operation. The department
18may prepare and publish guidelines to assist persons in
19determining eligibility requirements.
20c. Require the issuance of different types of licenses or
21require an applicant to obtain more than one license based
22on criteria established by the department, including but not
23limited to whether the proposed industrial hemp production is
24to occur on noncontiguous parcels of land, whether industrial
25hemp plants or industrial hemp seeds are proposed to be
26produced, or whether the applicant is proposing to participate
27in the industrial hemp commodity program under section 188.13
28or the industrial hemp production program under section 188.14.
29d. Require that all or some licenses expire on the same
30date.
31e. Provide a different application and requirements for
32the submission, evaluation, and approval or disapproval of an
33application for a renewed license. However, the department
34shall require a check of the applicant’s national criminal
35history record to be conducted under this section each time a
-14-1license is issued or renewed.
26. The department shall prepare and publish license
3application forms. A completed application form submitted to
4the department shall contain all of the following:
5a. The applicant’s full name and residence address.
6b. A legal description, global positioning system location,
7and map of the site where the applicant proposes to produce the
8industrial hemp.
9c. Information required by the department to conduct a check
10of the applicant’s criminal history record. The department
11shall require an applicant to submit pictures, fingerprints,
12and descriptions of physical characteristics on forms required
13by the department of public safety. The department of
14agriculture and land stewardship shall submit the applicant’s
15fingerprints and other necessary information to the department
16of public safety, division of criminal investigation, for the
17purpose of conducting a national criminal history record check
18through the federal bureau of investigation. The department
19of public safety shall notify the department of agriculture
20and land stewardship of the results of the national criminal
21history record check. The results shall be considered a
22confidential record under chapter 22 and shall not be released
23without the consent of the department of public safety. The
24department of agriculture and land stewardship shall reimburse
25the department of public safety for costs associated with
26conducting the national criminal history record check.
27d. Any other information required by the department in order
28to administer this chapter.
297. The department of agriculture and land stewardship shall
30deliver a copy of an approved application for a license to
31the department of public safety and the office of the county
32sheriff in the county where the industrial hemp is approved
33to be produced by the licensee in order to participate in the
34industrial hemp commodity program under section 188.13 or the
35industrial hemp production program under section 188.14.
-15- 18. A license shall be suspended or revoked as provided in
2section 188.26.
3 Sec. 17. NEW SECTION. 188.16 Licensees — inspections by
4department and law enforcement agencies.
51. The department may conduct an official inspection of
6a licensee’s facilities where industrial hemp is produced,
7stored, handled, transported, marketed, or processed. The
8department shall conduct an official inspection during regular
9business hours. As part of an official inspection, the
10department shall collect a sample of the crop for testing under
11section 188.8 at least once and within thirty days prior to
12harvest. The department may order or request that a licensee
13independently collect and test one or more samples of the crop
14during the growing period and notify the department of the
15results.
162. A licensee shall immediately notify the department of
17the results of any test that exceeds the maximum concentration
18of delta-9 tetrahydrocannabinol as provided in section 188.8,
19regardless of whether the department ordered, requested, or
20knew of the test.
213. The department may request that a law enforcement
22agency assign an officer to accompany the department during an
23official inspection of the facilities of a licensee.
244. As part of its official inspection, the department
25may examine the licensee’s business records. However, a law
26enforcement officer shall not accompany the department during
27the examination.
28 Sec. 18. NEW SECTION. 188.17 Industrial hemp production
29contract — requirements.
30A registrant may enter into an industrial hemp production
31contract with a licensee to produce industrial hemp under the
32supervision of the registrant. The registrant shall supervise
33the production of the industrial hemp in cooperation with the
34department. The contract shall provide for the regulation of
35the licensee and the industrial hemp produced by the licensee
-16-1in the same manner as provided in section 188.13, unless
2otherwise provided by the department in consultation with the
3registrant.
4 Sec. 19. NEW SECTION. 188.18 Industrial hemp seed capable
5of germination — certification.
61. The Iowa crop improvement association shall certify
7industrial hemp seed capable of germination for use by a
8licensee as part of the industrial hemp commodity program
9under section 188.13 or a registrant as part of the industrial
10hemp production program under section 188.14. The association
11may provide different certification processes, including for
12industrial hemp seed produced or obtained by a registrant or
13obtained from a qualified and reputable industrial hemp seed
14source and supplier.
152. The association’s certification protocols may be based
16on standards promulgated by independent organizations including
17but not limited to the association of official seed certifying
18agencies and verifications offered by qualified and reliable
19persons in the business of providing such seed.
203. The Iowa crop improvement association shall notify the
21department and the registrant, as applicable, of the results of
22a request for the certification of industrial hemp seed.
234. A licensee may import industrial hemp seed for
24certification only if allowed by the department acting in
25consultation with the association. A registrant may import
26industrial seed for certification after consulting with the
27department and the association.
28 Sec. 20. NEW SECTION. 188.19 Industrial hemp seed capable
29of germination — sale by the department.
301. The department shall offer certified industrial hemp
31seed for sale to licensees participating in the industrial hemp
32commodity program established pursuant to section 188.13. The
33department may offer certified industrial hemp seed for sale to
34a registrant participating in the industrial hemp production
35program established pursuant to section 188.14.
-17- 12. Moneys collected by the department from the sale of
2certified industrial hemp seed shall be deposited into the
3industrial hemp commodity fund established in section 188.23.
4 Sec. 21. NEW SECTION. 188.20 Industrial hemp seed capable
5of germination — sale by a registrant.
61. A registrant may offer certified industrial hemp seed
7for sale to the department, or a licensee participating in the
8industrial hemp production program established pursuant to
9section 188.14.
102. All moneys received by a registrant under subsection 1
11shall be handled in the same manner as repayment receipts as
12defined in section 8.2, and shall be used by the registrant
13exclusively for the registrant’s administration of the
14industrial hemp production program.
15 Sec. 22. NEW SECTION. 188.21 Fees assessed by department.
161. The department shall assess and collect all of the
17following:
18a. An application fee to be paid by a person seeking to
19obtain an industrial hemp commodity license as provided in
20section 188.15.
21b. A license fee to be paid by a person being issued an
22industrial hemp commodity license as provided in section
23188.15.
24c. An inspection fee to be paid by a licensee as part of
25an inspection of the facilities where the industrial hemp is
26produced as provided in section 188.16.
27d. A laboratory fee to be paid by a licensee if the
28department takes samples of industrial hemp for testing by a
29laboratory as provided in section 188.8.
302. The fees described in subsection 1 are nonrefundable.
313. The total amount of fees collected pursuant to this
32section shall not exceed the department’s estimate of the total
33amount of revenues necessary to administer and enforce the
34provisions of this chapter. Prior to the beginning of a fiscal
35year, the department shall establish an estimated total amount
-18-1based on the expected costs to be incurred by the department
2in administering and enforcing the provisions of this chapter
3during the subsequent fiscal year.
44. The department may establish different rates for any
5category of fees described in subsection 1 based on criteria
6determined relevant by the department, which may include the
7type of license issued and the number of acres set aside for
8industrial hemp production by a licensee.
95. All fees collected by the department under this section
10shall be deposited into the industrial hemp commodity fund
11established pursuant to section 188.23.
12 Sec. 23. NEW SECTION. 188.22 Fees assessed by registrants.
131. A registrant may assess and collect fees from licensees
14participating in the registrant’s industrial hemp production
15program as provided in section 188.14. The total amount
16of fees paid shall not exceed the expenses incurred by the
17registrant in selecting licensees to participate in the
18program, conducting inspections of facilities where the
19industrial hemp is produced, and taking samples of industrial
20hemp to be tested by a laboratory as provided in section 188.8.
212. All moneys received by a registrant under this section
22shall be handled in the same manner as repayment receipts as
23defined in section 8.2, and shall be used by the registrant
24exclusively for the registrant’s administration of the
25industrial hemp production program.
26 Sec. 24. NEW SECTION. 188.23 Industrial hemp commodity fund
27— appropriation.
281. An industrial hemp commodity fund is established in
29the state treasury under the management and control of the
30department.
312. The fund shall include moneys collected by the department
32from the sale of certified seed under section 188.19, fees
33collected under section 188.21, and moneys appropriated by the
34general assembly for deposit in the fund. The fund may include
35other moneys available to and obtained or accepted by the
-19-1department, including moneys from public or private sources.
23. Moneys in the fund are appropriated to the department
3and shall be used exclusively to carry out the responsibilities
4conferred upon the department under this chapter as determined
5and directed by the department, and shall not require further
6special authorization by the general assembly.
74. a. Notwithstanding section 12C.7, interest or earnings
8on moneys in the fund shall be credited to the fund.
9b. Notwithstanding section 8.33, moneys credited to the fund
10that remain unexpended or unobligated at the end of a fiscal
11year shall not revert to any other fund.
12 Sec. 25. NEW SECTION. 188.24 Cooperation with department
13of public safety.
141. The department of agriculture and land stewardship and a
15registrant shall cooperate with the department of public safety
16in order to administer this chapter.
172. The department of public safety shall assist the
18department of agriculture and land stewardship in conducting
19national criminal history record checks of applicants applying
20for licenses under section 188.15.
213. The department of agriculture and land stewardship and
22a registrant shall upon request or as part of routine process
23provide the department of public safety with the following
24information regarding the industrial hemp commodity program
25under section 188.13 and the industrial hemp production program
26under section 188.14:
27a. The status of the production and the results of any test
28of a crop produced by a licensee under this chapter.
29b. The date and time of an inspection of a licensee’s
30facilities or business records.
31c. The confiscation and destruction of a crop under section
32188.25.
33 Sec. 26. NEW SECTION. 188.25 Confiscation and destruction.
341. A Cannabis sativa plant exceeding the maximum
35concentration of delta-9 tetrahydrocannabinol as provided in
-20-1section 188.8 and that is produced under the industrial hemp
2commodity program established pursuant to section 188.13 shall
3be confiscated by the department.
42. A Cannabis sativa plant exceeding the maximum
5concentration of delta-9 tetrahydrocannabinol as provided in
6section 188.8 and that is produced under the industrial hemp
7production program established pursuant to section 188.14
8shall be confiscated by the registrant in cooperation with the
9department.
103. The department shall provide for the destruction,
11including any accompanying disposal, of a confiscated Cannabis
12sativa plant produced under the industrial hemp commodity
13program under section 188.13 or the industrial hemp production
14program under section 188.14. A registrant may provide for the
15destruction of a confiscated Cannabis sativa plant produced
16under the industrial hemp production program under section
17188.14 in cooperation with the department. The department
18or a registrant shall not confiscate or destroy a Cannabis
19sativa plant unless the results of an official test conducted
20by the department indicate that a sample exceeds the maximum
21concentration of delta-9 tetrahydrocannabinol as provided in
22section 188.8. The department, or a registrant acting in
23cooperation with the department, may require that a confiscated
24Cannabis sativa plant be kept on the premises where the plant
25was confiscated, including where it is produced, handled,
26transported, marketed, or processed, until arrangements are
27made for the plant’s removal and destruction. The destruction
28may also occur on the premises where the plant was confiscated
29if such premises may be reasonably used for that purpose
30as determined by the department or by the registrant in
31cooperation with the department. The destruction shall be
32accomplished in a manner that complies with requirements of the
33department and shall be in accordance with applicable federal
34law.
354. The department or registrant may request assistance from
-21-1a law enforcement agency necessary to carry out this section.
2The department or registrant upon request shall deliver any
3sample of the plant to the law enforcement agency.
4 Sec. 27. NEW SECTION. 188.26 Disciplinary action.
51. The department may suspend or revoke the license obtained
6under section 188.15 by a person who does any of the following:
7a. Provides false or misleading information on an
8application for an industrial hemp commodity license as
9provided in section 188.15.
10b. Provides false or misleading information to the
11department as part of the industrial hemp commodity program
12under section 188.13 or to a registrant or the department as
13part of the industrial hemp production program under section
14188.14.
15c. Fails to comply with or violates any provision of this
16chapter, including a rule adopted by the department under
17section 188.4, a condition of an application for the issuance
18of a license under section 188.15, or a condition of a contract
19entered into with a registrant under section 188.17.
20d. Fails to comply with an order issued by the department or
21a registrant under this chapter.
222. The suspension or revocation of a license is in addition
23to the confiscation and destruction of a Cannabis sativa plant
24under section 188.25, a civil penalty under section 188.27, or
25any other civil or criminal penalty that may be imposed on the
26person under state or federal law.
27 Sec. 28. NEW SECTION. 188.27 Civil penalties.
281. A person who violates a provision of this chapter is
29subject to a civil penalty of not less than five hundred
30dollars and not more than two thousand five hundred dollars.
31The department may assess and collect the civil penalty. Each
32day that a continuing violation occurs shall be considered a
33separate offense.
342. The department shall establish a schedule of civil
35penalties for violations of this chapter.
-22- 13. A civil penalty shall not be assessed against a
2licensee for a violation that results in the confiscation and
3destruction of the licensee’s crop under section 188.25, unless
4the composite test result is greater than two percent delta-9
5tetrahydrocannabinol as determined in section 188.8.
64. All civil penalties collected under this section shall be
7deposited into the general fund of the state.
8 Sec. 29. NEW SECTION. 188.28 Criminal penalties.
9A person who knowingly or intentionally produces the
10Cannabis sativa plant and who is not the department, a
11registrant, or a licensee participating in the industrial hemp
12commodity program established pursuant to section 188.13 or
13the industrial hemp production program established pursuant to
14section 188.14 is subject to the provisions in chapters 124 and
15453B.
16 Sec. 30. NEW SECTION. 262.80 Industrial hemp production
17program.
18The board of regents may consult with Iowa state university
19of science and technology, the university of Iowa, and the
20university of northern Iowa to provide for the participation
21of those universities in administering an industrial hemp
22production program in cooperation with the department of
23agriculture and land stewardship as provided in chapter 188.
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