Bill Text: IA SF279 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to hemp, including the regulation of hemp, providing for enforcement and the confiscation and destruction or disposal of certain property, providing for fees, making appropriations, including penalties, and providing implementation and effective date provisions. (See SF 599.)
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-03-21 - Committee report approving bill, renumbered as SF 599. S.J. 711. [SF279 Detail]
Download: Iowa-2019-SF279-Introduced.html
Senate
File
279
-
Introduced
SENATE
FILE
279
BY
SHIPLEY
,
COURNOYER
,
SEGEBART
,
SCHULTZ
,
BEHN
,
SINCLAIR
,
ZAUN
,
EDLER
,
MILLER-MEEKS
,
SWEENEY
,
GUTH
,
BREITBACH
,
BROWN
,
ZUMBACH
,
JOHNSON
,
KOELKER
,
KAPUCIAN
,
ROZENBOOM
,
GREENE
,
KRAAYENBRINK
,
FEENSTRA
,
KINNEY
,
BISIGNANO
,
R.
TAYLOR
,
T.
TAYLOR
,
CELSI
,
LYKAM
,
QUIRMBACH
,
BOLKCOM
,
PETERSEN
,
RAGAN
,
MATHIS
,
J.
SMITH
,
DANIELSON
,
WAHLS
,
and
BOULTON
A
BILL
FOR
An
Act
relating
to
hemp,
including
the
regulation
of
hemp,
1
providing
for
enforcement
and
the
confiscation
and
2
destruction
or
disposal
of
certain
property,
providing
3
for
fees,
making
appropriations,
including
penalties,
and
4
providing
implementation
and
effective
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
IOWA
HEMP
ACT
2
Section
1.
Section
189.1,
subsection
1,
Code
2019,
is
3
amended
to
read
as
follows:
4
1.
“Article”
means
food,
commercial
feed,
agricultural
seed,
5
commercial
fertilizer,
drug,
pesticide,
hemp,
and
paint,
in
the
6
sense
in
which
they
are
defined
in
the
various
provisions
of
7
this
subtitle.
8
Sec.
2.
NEW
SECTION
.
204.1
Short
title.
9
This
chapter
shall
be
known
as
the
“Iowa
Hemp
Act”
.
10
Sec.
3.
NEW
SECTION
.
204.2
Definitions.
11
As
used
in
this
chapter,
unless
the
context
otherwise
12
requires:
13
1.
“Controlled
substance”
means
the
same
as
defined
in
21
14
U.S.C.
§§802
and
812,
including
as
those
sections
are
amended
15
in
§12619
of
the
federal
hemp
law
or
as
that
phrase
is
defined
16
in
Tit.
IV,
subtitle
1
of
this
Code.
17
2.
“Conviction”
means
a
conviction
for
an
indictable
offense
18
and
includes
a
guilty
plea,
deferred
judgment
from
the
time
of
19
entry
of
the
deferred
judgment
until
the
time
the
defendant
is
20
discharged
by
the
court
without
entry
of
judgment,
or
other
21
finding
of
guilt
by
a
court
of
competent
jurisdiction.
22
3.
“Crop
site”
or
“site”
means
a
single
contiguous
parcel
23
of
agricultural
land
suitable
for
the
planting,
growing,
or
24
harvesting
of
hemp,
if
the
parcel
does
not
exceed
forty
acres.
25
4.
“Department”
means
the
department
of
agriculture
and
land
26
stewardship.
27
5.
“Federal
hemp
law”
means
that
part
of
Tit.
X
of
the
28
Agriculture
Improvement
Act
of
2018,
Pub.
L.
No.
115-334,
that
29
authorizes
hemp
production
according
to
a
state
plan
approved
30
by
the
United
States
department
of
agriculture,
as
provided
in
31
§10113
of
that
Act,
amending
the
Agricultural
Marketing
Act
32
of
1946,
7
U.S.C.
§1621
et
seq.,
including
by
adding
§§297A
33
through
297E.
34
6.
“Hemp”
means
a
plant
that
may
be
produced
under
federal
35
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279
hemp
law,
or
another
plant
of
the
same
genus
to
the
extent
1
allowed
under
federal
hemp
law,
if
any
such
plant
is
produced
2
as
part
of
a
crop
qualifying
under
section
204.8.
3
7.
a.
“Hemp
product”
means
an
item
derived
from
or
made
by
4
processing
hemp
or
parts
of
hemp.
5
b.
“Hemp
product”
does
not
include
hemp
seed
that
is
capable
6
of
germination.
7
8.
“Law
enforcement
agency”
means
the
department
of
public
8
safety,
an
office
of
county
sheriff,
or
a
municipal
police
9
department.
10
9.
“Licensee”
means
a
person
who
obtains
a
hemp
license
from
11
the
department
under
this
chapter.
12
Sec.
4.
NEW
SECTION
.
204.3
State
plan.
13
1.
The
department
shall
prepare
a
state
plan
to
be
14
submitted
to
the
United
States
secretary
of
agriculture
under
15
the
federal
hemp
law.
Upon
approval
of
the
state
plan,
the
16
department
shall
assume
primary
regulatory
authority
over
the
17
production
of
hemp
in
this
state
as
provided
in
this
chapter.
18
The
department
may
submit
any
number
of
amended
state
plans
19
to
the
United
States
secretary
of
agriculture
or
any
number
20
of
amendments
to
a
state
plan
approved
by
the
United
States
21
secretary
of
agriculture.
22
2.
The
department
shall
prepare
the
state
plan,
any
amended
23
state
plan,
or
amendment
to
an
approved
state
plan,
by
adopting
24
rules
pursuant
to
chapter
17A.
The
department
may
adopt
the
25
rules
on
an
emergency
basis
as
provided
in
section
17A.4,
26
subsection
3,
and
section
17A.5,
subsection
2,
and
the
rules
27
shall
be
effective
immediately
upon
filing
unless
a
later
date
28
is
specified
in
the
rules.
29
Sec.
5.
NEW
SECTION
.
204.4
Hemp
license
——
requirements.
30
1.
The
department
shall
establish
and
administer
a
process
31
to
receive,
evaluate,
and
approve
or
disapprove
applications
32
for
a
hemp
license.
33
2.
The
department
shall
prepare
and
publish
one
or
more
34
hemp
license
application
forms.
A
completed
application
form
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submitted
to
the
department
shall
contain
all
of
the
following:
1
a.
The
applicant’s
full
name
and
residence
address.
2
b.
A
legal
description
and
map
of
each
crop
site
where
the
3
applicant
proposes
to
produce
the
hemp.
4
c.
The
number
of
crop
acres
to
be
used
for
hemp
production.
5
d.
The
name
of
the
hemp
variety.
6
e.
Any
other
information
required
by
the
department
in
order
7
to
administer
and
enforce
the
provisions
of
this
chapter.
8
3.
The
department
may
do
all
of
the
following:
9
a.
Require
that
all
or
some
licenses
expire
on
the
same
10
date.
11
b.
Provide
a
different
application
form
and
requirements
12
relating
to
the
submission,
evaluation,
and
approval
or
13
disapproval
of
an
application
for
a
renewed
license
consistent
14
with
federal
law.
15
4.
An
applicant
shall
not
be
issued
a
hemp
license
unless
16
the
applicant
agrees
to
comply
with
all
terms
and
conditions
17
relating
to
the
department’s
regulation
of
a
licensee.
18
5.
A
person
may
hold
any
number
of
licenses
at
the
same
19
time.
However,
the
person
shall
not
hold
a
legal
or
equitable
20
interest
in
a
licensed
crop
site,
if
the
total
number
of
acres
21
of
all
licensed
crop
sites
in
which
the
person
holds
all
such
22
interests
equals
more
than
forty
acres.
23
6.
An
initial
license
expires
one
year
from
the
date
of
24
issuance
and
may
be
issued
on
a
renewal
basis
annually.
The
25
department
may
require
that
a
licensee
apply
for
an
amended
or
26
new
initial
license
if
information
contained
in
the
existing
27
application
is
no
longer
accurate
or
is
incomplete.
28
7.
Information
received
on
an
application
form
shall
be
29
maintained
by
the
department
for
not
less
than
three
years.
30
8.
The
department
shall
disapprove
the
application
of
a
31
person
for
good
cause,
which
shall
include,
but
is
not
limited
32
to,
any
of
the
following:
33
a.
The
conviction
of
a
felony
within
the
prior
ten
years
or
34
any
conviction
of
a
controlled
substance
offense
within
that
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same
period,
regardless
of
whether
either
type
of
conviction
is
1
in
this
state
or
another
state.
2
b.
The
revocation
of
a
license
under
section
204.11,
or
3
the
revocation
of
a
license,
permit,
registration,
or
other
4
authorization
to
produce
hemp
in
any
other
state.
5
9.
A
license
shall
be
suspended
or
revoked
as
provided
in
6
section
204.11.
7
Sec.
6.
NEW
SECTION
.
204.5
Hemp
fees.
8
1.
The
department
shall
impose,
assess,
and
collect
the
9
following
hemp
fees:
10
a.
A
license
fee
which
shall
be
paid
by
a
person
being
11
issued
a
hemp
production
license
as
provided
in
section
204.4.
12
b.
An
inspection
fee
which
shall
be
paid
by
a
licensee
for
13
an
inspection
of
a
licensee’s
crop
site
as
provided
in
section
14
204.8.
15
2.
a.
For
each
license,
the
license
fee
shall
be
imposed
16
on
an
interim
basis
until
June
30,
2022.
The
amount
of
the
17
license
fee
shall
not
be
more
than
the
following:
18
(1)
Five
hundred
dollars
plus
five
dollars
per
acre,
for
19
each
site
that
is
five
acres
or
less.
20
(2)
Seven
hundred
and
fifty
dollars,
plus
five
dollars
per
21
acre,
for
each
site
that
is
more
than
five
acres
but
less
than
22
ten
acres.
23
(3)
One
thousand
dollars
plus
five
dollars
per
acre,
for
24
each
site
is
more
than
ten
acres.
25
b.
For
an
annual
inspection,
an
inspection
fee
shall
be
26
imposed
on
an
interim
basis
until
June
30,
2022.
The
amount
27
of
the
inspection
fee
shall
not
be
more
than
one
thousand
28
dollars.
The
department,
during
the
interim
period,
may
charge
29
an
additional
inspection
fee
of
not
more
than
one
thousand
30
dollars
for
each
inspection
of
a
licensee’s
crop
site,
if
the
31
inspection
is
conducted
upon
the
request
of
the
licensee.
32
c.
This
subsection
is
repealed
on
July
1,
2022.
33
3.
a.
The
department
shall
adopt
rules
to
establish
hemp
34
fees
for
the
issuance
of
a
hemp
production
license
pursuant
to
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section
204.4.
1
b.
The
department
shall
adopt
rules
to
establish
hemp
fees
2
for
the
annual
inspection
of
a
license
pursuant
to
section
3
204.8.
The
rules
may
provide
that
the
department
charge
an
4
additional
inspection
fee
for
each
inspection
of
a
licensee’s
5
crop
site,
if
the
inspection
is
conducted
upon
the
request
of
6
the
licensee.
7
c.
The
total
amount
of
hemp
fees
collected
by
the
8
department
pursuant
to
this
section
shall
not
be
more
than
the
9
department’s
estimate
of
the
total
amount
of
revenues
necessary
10
to
administer
and
enforce
the
provisions
of
this
chapter
based
11
on
the
expected
revenue
collected
from
the
hemp
fees
and
the
12
costs
to
be
incurred
by
the
department
in
administering
and
13
enforcing
the
provisions
of
this
chapter
for
the
succeeding
14
twelve-month
period.
15
d.
The
department
may
establish
different
rates
for
any
16
category
of
hemp
fees
based
on
criteria
determined
relevant
by
17
the
department,
which
may
include
the
number
of
acres
of
the
18
crop
site
and
the
type
of
license
issued.
19
e.
(1)
The
rules
shall
first
take
effect
immediately
after
20
the
repeal
of
subsection
2.
21
(2)
This
paragraph
“e”
is
repealed
immediately
after
the
22
rules
described
in
subparagraph
(1)
take
effect.
23
4.
The
license
fee
and
any
annual
inspection
fee
shall
24
be
collected
by
the
department
at
the
time
the
hemp
license
25
application
is
submitted.
26
5.
Any
hemp
fee
collected
by
the
department
under
this
27
section
shall
be
deposited
in
the
hemp
fund
established
28
pursuant
to
section
204.6.
29
6.
The
department
may
refund
all
or
any
part
of
a
hemp
fee
30
collected
under
this
section.
31
Sec.
7.
NEW
SECTION
.
204.6
Hemp
fund.
32
1.
A
hemp
fund
is
established
in
the
state
treasury
under
33
the
management
and
control
of
the
department.
34
2.
The
hemp
fund
shall
include
moneys
collected
by
the
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department
from
hemp
fees
imposed
and
assessed
under
section
1
204.5
and
moneys
appropriated
by
the
general
assembly
for
2
deposit
in
the
hemp
fund.
The
hemp
fund
may
include
other
3
moneys
available
to
and
obtained
or
accepted
by
the
department,
4
including
moneys
from
public
or
private
sources.
5
3.
Moneys
in
the
hemp
fund
are
appropriated
to
the
6
department
and
shall
be
used
exclusively
to
carry
out
the
7
responsibilities
conferred
upon
the
department
under
this
8
chapter
as
determined
and
directed
by
the
department,
and
9
shall
not
require
further
special
authorization
by
the
general
10
assembly.
11
4.
a.
Notwithstanding
section
12C.7,
interest
or
earnings
12
on
moneys
in
the
hemp
fund
shall
be
credited
to
the
hemp
fund.
13
b.
Notwithstanding
section
8.33,
moneys
credited
to
the
14
hemp
fund
that
remain
unexpended
or
unobligated
at
the
end
of
a
15
fiscal
year
shall
not
revert
to
any
other
fund.
16
Sec.
8.
NEW
SECTION
.
204.7
Regulations.
17
1.
The
department
may
adopt
rules
regulating
the
18
production,
handling,
transporting,
or
marketing
of
hemp
19
produced
on
a
licensee’s
crop
site.
The
rules
may
provide
20
different
requirements
that
apply
to
nonseed
parts
of
hemp
and
21
hemp
seed,
including
the
certification
of
hemp
seed.
22
2.
Notwithstanding
any
other
provision
of
law
to
the
23
contrary,
hemp
is
not
a
controlled
substance
if
the
hemp
is
or
24
was
produced
on
a
licensee’s
crop
site.
25
3.
Nothing
in
this
chapter
prohibits
a
person
from
26
producing,
handling,
transporting,
marketing,
or
processing
a
27
hemp
product.
28
Sec.
9.
NEW
SECTION
.
204.8
Annual
inspection
and
official
29
test.
30
1.
The
department
shall
conduct
an
annual
inspection
of
31
a
licensee’s
crop
site
to
determine
if
the
crop
produced
at
32
the
site
qualifies
as
hemp
under
this
section.
The
inspection
33
shall
include
obtaining
a
sample
of
plants
that
are
part
of
the
34
crop
and
providing
for
an
official
test
of
that
sample.
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inspection
shall
be
conducted
as
provided
in
section
204.9.
1
2.
A
licensee
shall
deliver
a
notice
to
the
department
2
stating
the
expected
harvest
date
for
the
crop
produced
at
the
3
licensee’s
crop
site.
The
department
must
receive
the
notice
4
at
least
thirty
days
prior
to
the
expected
harvest
date.
The
5
department
shall
conduct
an
inspection
of
the
site
within
6
thirty
days
prior
to
the
actual
harvest
date.
The
licensee
7
shall
not
harvest
any
portion
of
a
crop
produced
at
the
site
8
unless
the
department
notifies
the
licensee
that
the
crop
9
qualifies
as
hemp
pursuant
to
the
results
of
an
official
test.
10
3.
The
official
test
shall
be
a
composite
test
of
the
11
plants
obtained
by
the
department
from
the
licensee’s
crop
site
12
during
an
inspection
and
shall
be
conducted
by
the
laboratory
13
designated
by
the
department.
The
sample
must
have
maximum
14
concentration
of
delta-9
tetrahydrocannabinol
that
does
not
15
exceed
three-tenths
of
one
percent
on
a
dry
weight
basis.
The
16
laboratory’s
official
test
results
indicating
that
a
sample
17
exceeds
that
percentage
shall
be
conclusive
evidence
that
the
18
crop
produced
at
a
site
does
not
qualify
as
hemp.
19
Sec.
10.
NEW
SECTION
.
204.9
Right
of
access.
20
1.
The
department,
including
an
authorized
inspector,
21
employee,
or
agent
of
the
department,
may
enter
onto
a
crop
22
site
during
reasonable
hours
to
determine
whether
a
licensee
23
is
acting
in
compliance
with
the
provisions
of
this
chapter.
24
The
department
may
also
enter
into
any
structure,
other
than
a
25
dwelling,
if
the
structure
is
located
on
or
in
close
proximity
26
to
the
crop
site,
and
the
use
of
such
structure
is
directly
27
related
to
the
planting,
growing,
or
harvesting
of
hemp,
28
including
but
not
limited
to
a
barn,
machine
shed,
greenhouse,
29
or
storage
crib.
30
2.
The
department
may
obtain
a
sample
of
plants
that
are
31
part
of
the
crop
and
provide
for
an
official
test
of
that
32
sample
in
the
same
manner
as
provided
in
section
204.8
even
33
though
the
department
is
not
conducting
an
annual
inspection.
34
The
department
shall
not
assess
or
collect
a
fee,
other
than
a
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hemp
fee
as
provided
in
section
204.5.
1
3.
A
person
shall
not
prevent
the
department
from
2
administering
this
section
by
any
means,
including
but
not
3
limited
to
any
act,
including
a
refusal
to
allow
entry,
4
misrepresentation,
omission,
or
concealment
of
facts.
5
4.
The
licensee
shall
not
harvest
any
portion
of
a
crop
6
produced
at
the
crop
site
if
the
department
has
been
prevented
7
from
accessing
the
site
under
this
section.
8
Sec.
11.
NEW
SECTION
.
204.10
Order
of
disposal.
9
1.
If
a
crop
that
is
produced
at
a
licensee’s
crop
site
10
does
not
qualify
as
hemp
according
to
an
official
test
11
conducted
pursuant
to
section
204.8,
the
department
shall
order
12
the
disposal
of
the
crop
by
destruction
at
the
site
or
if
13
necessary
require
the
crop
to
be
removed
to
another
location
14
for
destruction.
15
2.
The
department
may
request
assistance
from
a
law
16
enforcement
agency
necessary
to
carry
out
this
section.
The
17
department
upon
request
shall
deliver
any
sample
of
the
crop
18
to
the
law
enforcement
agency.
19
3.
The
licensee
shall
pay
for
all
actual
and
reasonable
20
costs
of
the
destruction.
If
the
department
assumes
any
of
the
21
amount
of
costs,
it
may
charge
that
amount
to
the
licensee.
22
If
the
licensee
fails
to
reimburse
any
of
that
amount
to
the
23
department,
the
department
may
report
the
amount
to
the
county
24
treasurer.
The
amount
shall
be
placed
upon
the
tax
books,
25
and
collected
with
interest
and
penalties
after
due,
in
the
26
same
manner
as
other
unpaid
property
taxes.
The
county
shall
27
reimburse
the
department
within
thirty
days
from
the
collection
28
of
the
property
taxes.
29
4.
To
the
extent
allowed
by
applicable
federal
law,
the
30
department
may
provide
for
the
disposal
of
the
mature
stalks
31
of
the
crop
confiscated
by
the
department
for
the
licensee’s
32
on-farm
use
and
at
the
licensee’s
expense.
33
Sec.
12.
NEW
SECTION
.
204.11
Disciplinary
action.
34
1.
The
department
may
suspend
or
revoke
the
license
obtained
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under
section
204.4
by
a
person
who
does
any
of
the
following:
1
a.
Provides
false
or
misleading
information
to
the
2
department
under
this
chapter,
including
by
submitting
a
false
3
application.
4
b.
Fails
to
comply
with
or
violates
any
provision
of
this
5
chapter,
including
a
rule
adopted
by
the
department
or
a
6
condition
of
an
application
for
the
issuance
of
a
license.
7
c.
Fails
to
comply
with
an
order
issued
by
the
department
8
under
this
chapter.
9
2.
The
suspension
or
revocation
of
a
license
is
in
addition
10
to
an
order
of
disposal
under
section
204.10;
the
imposition
of
11
a
civil
penalty
under
section
204.12,
subject
to
the
provisions
12
of
section
204.14;
or
the
imposition
of
any
other
civil
or
13
criminal
penalty
authorized
under
state
law,
subject
to
the
14
provisions
of
section
204.14.
15
Sec.
13.
NEW
SECTION
.
204.12
Civil
penalties.
16
1.
A
person
who
violates
a
provision
of
this
chapter
is
17
subject
to
a
civil
penalty
of
not
less
than
five
hundred
18
dollars
and
not
more
than
two
thousand
five
hundred
dollars.
19
The
department
shall
assess
and
collect
the
civil
penalty.
20
Each
day
that
a
continuing
violation
occurs
may
be
considered
a
21
separate
offense.
22
2.
Notwithstanding
subsection
1,
a
civil
penalty
shall
not
23
be
assessed
against
a
licensee
for
a
violation
that
results
24
in
the
disposal
of
the
licensee’s
crop
under
section
204.10,
25
if
the
department
obtains
a
sample
of
the
crop
produced
on
26
the
licensee’s
crop
site
and
the
official
test
results
of
the
27
sample
conducted
pursuant
to
section
204.8
indicates
a
maximum
28
concentration
of
delta-9
tetrahydrocannabinol
not
in
excess
of
29
two
percent
on
a
dry
weight
basis.
30
3.
All
civil
penalties
collected
under
this
section
shall
be
31
deposited
into
the
general
fund
of
the
state.
32
Sec.
14.
NEW
SECTION
.
204.13
Injunctive
relief.
33
The
department
or
the
attorney
general
acting
on
behalf
of
34
the
department
may
apply
to
the
district
court
for
injunctive
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relief
in
order
to
restrain
a
person
from
acting
in
violation
1
of
this
chapter.
In
order
to
obtain
injunctive
relief,
the
2
department
shall
not
be
required
to
post
a
bond
or
prove
the
3
absence
of
an
adequate
remedy
at
law
unless
the
court
for
4
good
cause
otherwise
orders.
The
court
may
order
any
form
5
of
prohibitory
or
mandatory
relief
that
is
appropriate
under
6
principles
of
equity,
including
but
not
limited
to
issuing
a
7
temporary
or
permanent
restraining
order.
8
Sec.
15.
NEW
SECTION
.
204.14
Negligent
violations.
9
1.
a.
The
department
may
find
that
a
licensee
has
10
negligently
violated
a
provision
of
this
chapter
by
doing
any
11
of
the
following:
12
(1)
Completing
an
application
for
a
license
without
13
providing
a
legal
description
of
the
crop
site
pursuant
to
14
section
204.4.
15
(2)
Failing
to
renew
a
license
or
obtain
a
license
for
a
new
16
crop
site
pursuant
to
section
204.4.
17
(3)
Producing
a
crop
on
the
licensee’s
crop
site
with
a
18
maximum
concentration
of
delta-9
tetrahydrocannabinol
in
excess
19
of
three-tenths
of
one
percent
according
to
the
results
of
an
20
official
test
conducted
of
a
sample
obtained
from
the
crop
site
21
pursuant
to
section
204.8.
22
b.
In
making
its
finding
under
paragraph
“a”
,
the
23
department
must
determine
that
the
licensee
acted
with
a
24
culpable
mental
state
of
negligence.
It
is
conclusively
25
presumed
that
a
licensee
acted
with
a
culpable
mental
state
26
greater
than
negligence,
if
the
department
obtains
a
sample
27
of
a
crop
produced
on
the
licensee’s
crop
site
and
the
28
official
test
results
of
the
sample
conducted
pursuant
to
29
section
204.8
indicates
a
maximum
concentration
of
delta-9
30
tetrahydrocannabinol
in
excess
of
two
percent
on
a
dry
weight
31
basis.
32
c.
If
the
department
determines
a
licensee
violated
this
33
chapter
with
a
culpable
mental
state
greater
than
negligence,
34
the
department
shall
immediately
report
the
licensee
to
the
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county
attorney
and
the
attorney
general,
who
shall
take
action
1
as
the
facts
and
circumstances
warrant.
The
department
shall
2
also
report
the
licensee
to
the
United
States
attorney
general
3
to
the
extent
required
by
the
federal
hemp
law.
4
2.
The
department
may
establish
a
negligent
violation
5
program.
The
purpose
of
the
program
is
to
allow
a
6
participating
licensee
who
has
negligently
violated
a
provision
7
of
this
chapter
as
described
in
subsection
1
to
comply
with
a
8
corrective
plan
established
by
the
department
to
correct
each
9
negligent
violation,
including
by
providing
for
all
of
the
10
following:
11
a.
A
reasonable
date,
established
by
the
department,
for
the
12
licensee
to
correct
any
cause
for
the
violation.
13
b.
That
the
licensee
periodically
report
to
the
department
14
evidence
that
the
licensee
is
complying
with
the
requirements
15
of
this
chapter.
The
licensee
shall
submit
a
report
to
the
16
department
for
at
least
two
years
from
the
date
that
the
17
licensee
first
participated
in
the
program.
18
3.
A
licensee
who
is
participating
in
the
negligent
19
violation
program
shall
not
be
subject
to
criminal
enforcement
20
action
by
the
state,
or
the
imposition
of
criminal
or
civil
21
penalties,
including
as
provided
in
section
204.12.
22
4.
A
licensee
who
negligently
violates
a
provision
of
this
23
chapter
more
than
three
times
in
any
five-year
period
shall
be
24
ineligible
to
be
issued
a
license
pursuant
to
section
204.4
25
for
a
period
of
five
years
beginning
on
the
date
of
the
third
26
violation.
27
5.
A
licensee
convicted
of
a
felony
relating
to
a
controlled
28
substance
before,
on,
or
after
the
implementation
date
of
this
29
chapter
shall
be
ineligible
to
produce
hemp
under
this
chapter
30
for
a
ten-year
period
following
the
date
of
conviction.
31
6.
Any
person
who
materially
falsifies
any
information
32
contained
in
an
application
to
participate
in
the
negligent
33
violation
program
shall
be
ineligible
to
participate
in
the
34
program.
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Sec.
16.
NEW
SECTION
.
204.15
Statutory
construction.
1
Nothing
in
this
chapter
shall
be
construed
or
applied
to
be
2
less
stringent
than
required
under
the
federal
hemp
law.
3
Sec.
17.
CONTINGENT
IMPLEMENTATION.
4
1.
Except
as
provided
in
subsection
2,
the
provisions
of
5
chapter
204,
as
enacted
in
this
division
of
this
Act,
shall
6
only
be
implemented,
including
administered
and
enforced,
by
7
the
department
of
agriculture
and
land
stewardship
beginning
on
8
the
publication
date
of
the
edition
of
the
Iowa
administrative
9
bulletin
that
includes
a
statement
by
the
secretary
of
10
agriculture
of
the
department
of
agriculture
and
land
11
stewardship
certifying
that
the
United
States
department
of
12
agriculture
has
approved
a
state
plan
as
described
in
section
13
204.3,
as
enacted
in
this
division
of
this
Act.
The
department
14
shall
forward
a
copy
of
the
statement
to
the
Iowa
Code
editor
15
prior
to
publication.
16
2.
Section
204.3
and
this
subsection
shall
be
implemented
on
17
the
effective
date
of
this
Act.
18
Sec.
18.
EFFECTIVE
DATES.
19
1.
Except
as
provided
in
subsection
2,
this
division
of
this
20
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
21
enactment.
22
2.
The
amendment
to
section
189.1,
as
enacted
in
this
23
division
of
this
Act,
shall
become
effective
upon
the
date
of
24
implementation
of
chapter
204
as
described
in
subsection
1
of
25
the
section
providing
for
contingent
implementation
of
that
26
chapter,
as
enacted
in
this
division
of
this
Act.
27
DIVISION
II
28
COORDINATING
AMENDMENTS
29
Sec.
19.
NEW
SECTION
.
317.1D
Hemp
production.
30
This
chapter
does
not
apply
to
a
plant
or
any
part
of
the
31
plant
qualifying
as
hemp,
if
the
hemp
is
produced
on
a
crop
32
site
regulated
by
the
department
of
agriculture
and
land
33
stewardship
under
chapter
204.
34
Sec.
20.
NEW
SECTION
.
453B.17
Exception
——
hemp.
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This
chapter
does
not
apply
to
a
plant
or
any
part
of
1
the
plant
qualifying
as
hemp,
if
the
hemp
is
produced
or
2
was
produced
on
a
crop
site
regulated
by
the
department
of
3
agriculture
and
land
stewardship
under
chapter
204.
Nothing
4
in
this
chapter
applies
to
a
person
producing,
handling,
5
transporting,
marketing,
or
processing
a
hemp
product
as
6
defined
in
section
204.2.
7
Sec.
21.
CONTINGENT
EFFECTIVE
DATE.
Sections
317.1D
8
and
453B.17,
as
enacted
in
this
division
of
this
Act,
shall
9
become
effective
upon
the
date
of
implementation
of
chapter
10
204
as
described
in
subsection
1
of
the
section
providing
for
11
the
contingent
implementation
of
that
chapter,
as
enacted
in
12
division
I
of
this
Act.
13
DIVISION
III
14
APPROPRIATIONS
15
Sec.
22.
HEMP
FUND
——
2019-2020.
There
is
appropriated
from
16
the
general
fund
of
the
state
to
the
department
of
agriculture
17
and
land
stewardship
for
the
fiscal
year
beginning
July
1,
18
2019,
and
ending
June
30,
2020,
the
following
amount,
or
so
19
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
20
designated:
21
1.
For
deposit
in
the
hemp
fund
created
in
section
204.6
to
22
be
used
as
provided
in
that
section:
23
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
303,750
24
2.
Notwithstanding
subsection
1
of
the
section
providing
25
for
the
contingent
implementation
of
division
I,
as
enacted
26
in
this
Act,
moneys
in
the
hemp
fund
are
appropriated
to
the
27
department
to
take
all
administrative
actions,
including
the
28
purchase
of
equipment,
as
deemed
necessary
or
desirable
by
the
29
department
to
prepare
for
the
implementation
of
chapter
204
as
30
enacted
in
division
I
of
this
Act.
After
the
implementation
31
date
as
provided
in
that
subsection,
the
department
may
expend
32
moneys
in
the
hemp
fund
as
provided
in
section
204.6.
33
Sec.
23.
HEMP
FUND
——
2020-2021.
There
is
appropriated
from
34
the
general
fund
of
the
state
to
the
department
of
agriculture
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and
land
stewardship
for
the
fiscal
year
beginning
July
1,
1
2020,
and
ending
June
30,
2021,
the
following
amount,
or
so
2
much
thereof
as
is
necessary,
to
be
used
for
the
purposes
3
designated:
4
1.
For
deposit
in
the
hemp
fund
created
in
section
204.6
to
5
be
used
as
provided
in
that
section:
6
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
208,500
7
2.
Notwithstanding
subsection
1
of
the
section
providing
8
for
the
contingent
implementation
of
division
I,
as
enacted
9
in
this
Act,
moneys
in
the
hemp
fund
are
appropriated
to
the
10
department
to
take
all
administrative
actions,
including
the
11
purchase
of
equipment,
as
deemed
necessary
or
desirable
by
the
12
department
to
prepare
for
the
implementation
of
chapter
204
as
13
enacted
in
division
I
of
this
Act.
After
the
implementation
14
date
as
provided
in
that
subsection,
the
department
may
expend
15
moneys
in
the
hemp
fund
as
provided
in
section
204.6.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
OVERVIEW.
This
bill
creates
the
“Iowa
Hemp
Act”
under
Title
20
V,
subtitle
4,
of
the
Code
regulating
persons
operating
under
21
licenses
issued
by
the
department
of
agriculture
and
land
22
stewardship
(DALS).
The
bill
creates
Code
chapter
204
and
23
authorizes
the
production
of
hemp
under
the
DALS’
regulatory
24
supervision
when
acting
under
the
provisions
of
the
Agriculture
25
Improvement
Act
of
2018,
Pub.
L.
No.
115-334
(2018
Farm
Bill).
26
The
2018
Farm
Bill
defines
hemp
as
a
species
of
Cannabis
having
27
a
maximum
concentration
of
delta-9
tetrahydrocannabinol
(THC)
28
that
does
not
exceed
three-tenths
of
1
percent.
The
2018
Farm
29
Bill
authorizes
states
to
assume
primary
regulatory
authority
30
over
the
production
of
hemp
by
submitting
a
state
plan
(plan)
31
for
approval
by
the
United
States
department
of
agriculture
32
(USDA)
which
has
60
days
to
approve,
disapprove,
or
amend
the
33
plan.
The
2018
Farm
Bill
provides
that
state
regulations
may
34
be
more
but
not
less
stringent
than
the
federal
regulations.
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HEMP
LICENSES
AND
FEES.
DALS
is
required
to
accept
and
1
approve
or
disapprove
applications
for
the
issuance
of
a
hemp
2
license
(license)
on
a
one-year
basis
subject
to
renewal.
A
3
license
covers
a
crop
site
which
cannot
exceed
40
contiguous
4
acres.
DALS
may
issue
any
number
of
licenses
to
a
single
5
applicant.
However,
a
person
is
prohibited
from
holding
more
6
than
40
crop
sites
under
all
current
licenses
issued
to
the
7
person.
DALS
must
assess
and
collect
hemp
fees
(fees)
for
the
8
issuance
of
a
license
and
for
an
annual
fall
inspection
until
9
June
30,
2022.
After
that
date,
fees
are
to
be
established
by
10
rule
based
on
the
amount
required
to
administer
and
enforce
the
11
provisions
of
the
bill.
Moneys
collected
from
the
fees
are
to
12
be
deposited
into
a
hemp
fund
(fund)
which
are
appropriated
13
to
DALS
for
purposes
of
administering
and
enforcing
these
14
provisions.
15
REGULATIONS.
DALS
may
adopt
rules
regulating
the
16
production,
handling,
transporting,
or
marketing
of
hemp
which
17
was
produced
on
a
licensee’s
crop
site.
In
addition,
such
hemp
18
is
not
considered
to
be
a
controlled
substance.
Generally,
19
production,
possession,
or
distribution
of
a
controlled
20
substance
is
a
criminal
offense.
The
bill
provides
that
new
21
Code
chapter
204
does
not
prohibit
a
person
from
producing,
22
handling,
transporting,
marketing,
or
processing
a
hemp
23
product.
DALS
is
required
to
conduct
an
annual
inspection
of
a
24
licensee’s
crop
site
and
obtain
a
sample
for
official
testing
25
by
a
laboratory
designated
by
DALS.
In
addition
to
an
annual
26
inspection,
DALS
may
enter
onto
a
crop
site
during
reasonable
27
hours
to
determine
whether
a
licensee
is
acting
in
compliance
28
with
the
bill’s
requirements
and
may
obtain
a
sample
of
the
29
crop
for
official
testing.
30
ENFORCEMENT
AND
PENALTIES.
DALS
may
order
the
disposal
of
31
a
crop
produced
on
a
licensee’s
crop
site
if
official
test
32
results
indicate
that
a
crop
does
not
qualify
as
hemp.
The
33
disposal,
including
the
crop’s
destruction,
must
be
at
the
34
licensee’s
expense.
DALS
may
also
suspend
or
revoke
a
license
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if
the
licensee
fails
to
comply
with
a
requirement
of
the
bill.
1
A
person
who
violates
a
provision
of
the
bill
is
subject
to
a
2
civil
penalty
of
not
less
than
$500
and
not
more
than
$2,500.
3
DALS
or
the
attorney
general
may
apply
to
district
court
to
4
obtain
an
injunction
to
enforce
the
bill’s
provisions.
DALS
5
may
establish
a
program
to
correct
certain
violations
committed
6
negligently
by
a
licensee
including
producing
a
crop
having
a
7
maximum
THC
concentration
that
does
not
exceed
2
percent.
8
CONTINGENT
IMPLEMENTATION
AND
EFFECTIVE
DATE.
Generally,
9
the
bill’s
provisions
are
to
be
implemented
when
DALS
certifies
10
USDA
has
approved
DALS’
state
plan.
11
APPROPRIATIONS.
The
bill
appropriates
moneys
from
the
12
general
fund
of
the
state
to
DALS
for
deposit
in
the
fund
13
to
take
administrative
actions,
including
the
purchase
of
14
equipment,
as
deemed
necessary
or
desirable
by
the
department
15
to
carry
out
the
bill’s
provisions,
including
by
preparing
for
16
the
implementation
of
the
bill.
17
EFFECTIVE
DATES.
The
bill
takes
effect
upon
enactment
18
except
for
those
provisions
which
make
enactment
contingent
19
upon
implementation
of
Code
chapter
204
and
those
appropriating
20
moneys
to
the
fund
which
take
effect
on
July
1,
2019.
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