Bill > SSB3159

Introduced Session

BACKGROUND. This bill amends Code chapter 204, the “Iowa Hemp Act” (IHA) (Code section 204.1), authorizing the production of a certain type of cannabis (sativa L.) and the sale of products processed from hemp (Code section 204.7). Hemp is defined as composed of a species of cannabis (sativa L.) having a maximum concentration of delta-9 tetrahydrocannabinol (THC) that does not exceed three-tenths of 1 percent on a dry weight basis (Code section 204.2). The IHA removed hemp from the list of schedule I controlled substances and the excise tax imposed on the sale of controlled substances (see Code chapters 124 and 453B). The applicable criminal penalty for an offense under those Code chapters ranges from imprisonment for not more than six months or a fine of not more than $1,000 to 50 years imprisonment and a fine of not more than $1 million (see Code sections 124.401 and 453B.12). In order for cannabis to be classified as hemp and not a controlled substance, a person must comply with IHA S.F. _____ H.F. _____ requirements. The IHA in turn must satisfy certification requirements adopted by the United States department of agriculture (USDA) under the federal Agriculture Improvement Act of 2018 (federal hemp law) (Pub. L. No. 115-334), which allows states and tribes to assume primary regulatory authority over its production, including harvest, storage, and distribution. The IHA and the USDA has designated Iowa’s department of agriculture and land stewardship (DALS) as primarily responsible for regulating hemp production in cooperation with the department of public safety (DPS). The IHA defines a hemp product as derived from or made by processing hemp or parts of hemp. Generally, the IHA allows a person to engage in the retail sale of a hemp product so long as the hemp was produced in this state or another state in compliance with the federal hemp law (Code section 204.7). By its own terms, the federal hemp law is not construed to affect or modify certain federal law, including the federal Food, Drug, and Cosmetic Act (21 U.S.C. §301 et seq.). Generally, the United States food and drug administration (FDA) regulates human foods and additives, dietary supplements, drugs, and cosmetics (see 7 U.S.C. §1639r), but the FDA has not adopted a comprehensive regulatory framework. In the meantime, the IHA recognizes a consumable hemp product (CHP) that is metabolized when introduced into the human body, including by ingestion or absorption but excluding inhalation (Code sections 204.2 and 204.14A). In this case, the IHA requires a person manufacturing or selling a CHP to register with the department of health and human services (HHS) (Code section 204.7 and 641 IAC ch. 156). HHS’s regulations include packaging and labeling requirements. A person violating the IHA is subject to a civil penalty of not less than $500 and not more than $2,000 (Code section 204.12). DALS may impose, assess, and collect the civil penalty (Code section 204.12). DALS in cooperation with DPS or a local law enforcement agency (county sheriff or municipal police department) may also confiscate and destroy S.F. _____ H.F. _____ illegally produced hemp. DALS or the attorney general may seek injunctive relief in order to restrain a person violating the Code chapter by petitioning the district court (Code section 204.13). The injunction could address either hemp or a hemp product. BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (THC POTENCY). The bill authorizes HHS to adopt rules regulating the sale of consumable hemp products. The bill also authorizes HHS to adopt rules setting forth the THC potency of consumable hemp products on a per serving and per container basis (amended Code section 204.7). BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (PRESUMPTION OF GUILT FOR INHALATION OFFENSE). The bill creates a rebuttable presumption that a raw or dried flower form of a hemp product is a consumable hemp product intended for inhalation (amended Code section 204.14A) for purposes of the criminal offense. A person who violates the provision is guilty of a serious misdemeanor, which is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560 (Code section 204.14A). BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (CRIMINAL AND CIVIL PENALTY FOR FAILURE TO REGISTER). The bill provides that a person engaged in the retail sale of a CHP who is not registered with HHS commits both a serious misdemeanor and is subject to a civil penalty assessed as an administrative remedy (new Code sections 204.14B and 204.14C). The civil penalty cannot exceed $10,000, with each day of a violation constituting a separate offense. BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (SALE TO MINORS —— CRIMINAL PENALTY AND SCHEDULED VIOLATION). The bill provides that a person who sells or otherwise distributes a CHP to a person under the age of 21 is guilty of a simple misdemeanor (new Code section 204.14D). A simple misdemeanor is punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855. The bill also S.F. _____ H.F. _____ provides that a person under the age of 21 is prohibited from possessing or purchasing a CHP (new Code section 204.14E). The penalty is a scheduled violation. The first offense is subject to a scheduled fine of $75, the second offense is subject to a scheduled fine of $135, and the third and each subsequent offense is subject to a scheduled fine of $325. Each fine is a civil penalty (amended Code section 805.8C). In addition, the person subject to the violation may also be sentenced to perform a number of hours of community service; ranging from 8 to 16 hours depending upon the number of previous offenses committed. The bill provides an exception for an offense committed by a person under the age of 21 acting in cooperation with the DPS or a local law enforcement agency (new Code section 204.14F). BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (CONFISCATION AND DISPOSAL). The bill authorizes HHS to order the confiscation and disposal of a hemp product under three circumstances: it is falsely advertised, sold, or distributed as a consumable hemp product; it exceeds the maximum THC limit; or it is a consumable hemp product manufactured, sold, or distributed by a person who is not registered as required (Code section 204.7). The person may be assessed costs associated with the order (Code section 204.15A). BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (REGULATION OF ALCOHOLIC BEVERAGES). The bill regulates persons engaged in the business of selling alcoholic beverages (wine, beer, or spirits) in this state, including under a license, permit, or certificate issued by the department of revenue (Code chapter 123). The bill prohibits such a person from manufacturing, selling, giving, importing, or otherwise supplying any alcoholic beverage containing tetrahydrocannabinol. By operation of law, a person violating these provisions is subject to criminal penalties set forth under Code sections 123.90 and 123.91. BILL’S PROVISIONS —— ELIMINATION OF THE NEGLIGENT VIOLATION S.F. _____ H.F. _____ PROGRAM. The IHA provides for a negligent violation program (NVP) as set forth in the federal hemp law. The NVP applies to a qualifying person issued a license by DALS to produce hemp but who unintentionally violates the provisions of the IHA. The NVP allows a participating licensee to avoid a criminal offense or civil violation for producing, possessing, using, harvesting, handling, or distributing the plant cannabis. However, a person does not qualify for the program if the person produced hemp with a THC concentration of more than 2 percent (repealed Code section 204.15). The bill eliminates the program. The bill also eliminates certain provisions that shielded from prosecution a producer who produced cannabis in violation of the IHA but who is participating in or has successfully participated in the NVP, including Code chapter 124 regulating controlled substances and Code chapter 453B providing for the excise tax on controlled substances (repealed Code sections 124.401G and 453B.18).

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No sponsors listed

Other Sponsors (1)

Committee report approving bill, renumbered as SF 2352. (on 02/13/2024)

Official Document