Bill > HSB753

Introduced Session

BACKGROUND —— CANNABIS. Current federal law describes hemp as a species of cannabis (sativa L.) having a maximum concentration of delta-9 tetrahydrocannabinol (THC) that does H.F. _____ not exceed 0.3 percent on a dry weight basis (7 C.F.R. §990.1 and Code section 204A.2, citing to Code section 124.204(7)). A cannabis plant exceeding that concentration is no longer classified as hemp and is regulated as a controlled substance under Code chapters 124 and 453B (Code section 204A.4). The applicable criminal penalty for an offense under Code chapters 124 and 453B ranges from imprisonment in a county jail 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). BACKGROUND —— HEMP PRODUCTION. Code chapter 204A is codified as part of Title V, subtitle 4, which provides for the regulation of agricultural commodities and products by the department of agriculture and land stewardship (DALS). The Code chapter recognizes the regulation of hemp production and transportation under a program administered by the United States department of agriculture (USDA). A person producing a hemp plant on a lot as regulated by USDA is referred to as a USDA licensee (Code section 204A.2). One federal requirement provides that a person who delivers or is delivered hemp must possess a certificate of analysis (COA) prepared by an independent laboratory (Code section 204A.6). A COA verifies that the hemp or hemp product complies with THC potency levels and the presence of any contaminants. BACKGROUND —— CONSUMABLE HEMP PRODUCTS. Code chapter 204 regulates the manufacture and distribution (e.g., sale) of hemp products, which must comply with the maximum total THC concentration limit (Code sections 124.7 and 204.2(9)). This includes a consumable hemp product. A hemp product is deemed to be a consumable hemp product if it is designed to be introduced into the human body, is advertised as an item to be introduced into the human body, or is distributed (e.g., offered for sale) to be introduced into the human body (Code section 204.2(2)). A consumable hemp product may be digested, such as food, internally absorbed, or absorbed through the H.F. _____ skin. Finally, the consumable hemp product must meet a maximum quantity limit not to exceed 4 milligrams per serving and 10 milligrams per container measured on a dry weight basis. A person is prohibited from selling a hemp product that may be inhaled (Code section 204.14A). BACKGROUND —— CONSUMABLE HEMP PRODUCTS REGULATION. A consumable hemp product is regulated by the department of health and human services (HHS), which provides for the registration of persons engaged in the product’s manufacture and retail sale and provides for product labeling requirements (Code section 204.7 and 641 IAC ch. 156). A person engaged in the retail sale of a consumable hemp product without being registered with HHS is subject to a civil penalty of not more than $10,000 (Code section 204.14B) and commits a serious misdemeanor (Code section 204.14C). A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. BACKGROUND —— CHANGES IN FEDERAL LAW. Congress enacted Pub. L. No. 119-37, Division B, which revised provisions regulating hemp first enacted in the federal Agricultural Improvement Act of 2018. The new federal law changes the standard of a maximum 0.3 percent delta-9 THC on a dry weight basis to a total THC standard that includes delta-9 THC, tetrahydrocannabinolic acid (THCA), delta-8 THC, and all other tetrahydrocannabinols. The new federal law excludes from the definition of “hemp” a cannabinoid that is not naturally produced by the cannabis plant. For a hemp product, the per-container limit cannot exceed 0.4 milligrams of total THC. The effective date of the new federal law is November 12, 2026. BILL’S PROVISIONS —— ORGANIZATION. The bill includes three Code chapters regulating hemp and hemp products. The bill amends Code chapter 204A by recognizing the production and transportation of raw hemp under federal license (a hemp plant produced and harvested and raw hemp stored and transported by a USDA licensee). The bill creates new Code chapter 204B, which H.F. _____ provides for the general regulation of a hemp product by DALS as an article under Code chapter 189. The bill amends Code chapter 204 by providing that regulation by HHS is limited to a consumer hemp product. The provisions in Code chapter 204 are transferred to Code chapter 204C. BILL’S PROVISIONS —— CHANGES IN FEDERAL LAW (CODE CHAPTER 204A, NEW CODE CHAPTER 204B, AND TRANSFERRED CODE CHAPTER 204C). The bill does not refer to changes in federal law. BILL’S PROVISIONS —— HEMP (CODE CHAPTER 204A). The bill specifically excludes from the definition of hemp a synthetic cannabinoid (not derived from a raw naturally occurring cannabinoid) and a semisynthetic cannabinoid (extracted or derived from raw hemp but chemically altered). The bill provides that the lawful status of a hemp flower cannot be determined solely by the quantity possessed, stored, transported, or transferred, if the hemp flower complies with an acceptable hemp THC level. The bill also provides that when testing a hemp plant or raw hemp, compliance with an acceptable hemp THC level as applicable is determined in accordance with the federal and state law in effect at the time that the hemp plant is produced. BILL’S PROVISIONS —— HEMP PRODUCTS GENERALLY. The bill provides that the provisions in new Code chapter 204B do not apply to a synthetic cannabinoid or semisynthetic cannabinoid. The bill provides that a hemp product is considered to be an article that may be processed, stored, transferred, transported, or distributed in commercial channels as provided in Code chapter 189. Current law recognizes that same status for hemp and hemp products (Code section 189.1). The bill provides that a USDA licensee acting in compliance with new Code chapter 204B may elect to produce, process, market, transfer, transport, or distribute an on-farm minimally processed hemp product, subject to a number of conditions: (1) the hemp product cannot be a drug, (2) the hemp product must comply with packaging and labeling requirements established by H.F. _____ DALS, (3) the hemp product must have a use limited to ingestion or absorption, and (4) the hemp product must have a total THC concentration established by DALS by rule that is less than the maximum allowed for a consumable hemp product. The bill does not specify a specific milligrams per serving or per container limit. A person who violates a provision of new Code chapter 204B is subject to a civil penalty of not less than $500 and not more than $2,500. A person who distributes an on-farm minimally processed hemp product to a person under 21 years of age is guilty of a simple misdemeanor. 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. An underage person who consumes an on-farm minimally processed hemp product is subject to a scheduled fine ranging from $70 to $325. The bill provides that a state agency cannot act to regulate the production, processing, marketing, transfer, or distribution of a hemp product that complies with the requirements of new Code chapter 204B and transferred Code chapter 204C. The provisions of new Code chapter 204B and transferred Code chapter 204C preempt local legislation adopted by a local governmental entity regulating the production, processing, marketing, transfer, or distribution of a hemp product. The bill provides that new Code chapter 204B and transferred Code chapter 204C are subject to a number of provisions governing statutory construction. The bill provides that provisions cannot be (1) less stringent than required under the federal hemp law; (2) read in conflict with applicable federal law; (3) affect a regulation in effect or that may become effective that applies to other articles generally, product development, product manufacturing, consumer safety, or public health so long as the regulation is consistent with other applicable federal and state law, and (4) medical cannabidiol pursuant to chapter 124E. The provisions cannot be construed H.F. _____ to infringe upon the ability of the department of public safety or a local law enforcement agency to conduct lawful searches. BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (TRANSFERRED CODE CHAPTER 204C). The bill amends a number of provisions in Code chapter 204 that are transferred to Code chapter 204B or 204C. The bill changes the term “manufacturing” to “processing”. The bill provides that an on-farm minimally processed hemp product is not subject to registration by HHS. BILL’S PROVISIONS —— CORRESPONDING CHANGES. The bill makes corresponding changes to provisions in other Code chapters. BILL’S PROVISIONS —— EFFECTIVE DATE. The bill takes effect upon enactment.

Committee Categories

No sponsors listed

Other Sponsors (1)

Committee vote: Yeas, 19. Nays, 0. Excused, 2. H.J. 357. (on 02/19/2026)

Official Document