Amendment S-3160 to SF 599

Filed April 15, 2019 in the Senate by Sen. Tom Shipley (R)

What it changes

1. By striking everything after the enacting clause and inserting: “DIVISION I IOWA HEMP ACT Section
2. NEW SECTION . 204.1 Short title. This chapter shall be known as the “Iowa Hemp Act” . Sec.
3. NEW SECTION . 204.2 Definitions. As used in this chapter, unless the context otherwise requires:
4. “Controlled substance” means the same as defined in section 124.101.
5. “Conviction” means a conviction for an indictable offense, in this state or another state, and includes a guilty plea, deferred judgment from the time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment, or other finding of guilt by a court of competent jurisdiction.
6. “Crop site” or “site” means a single contiguous parcel of agricultural land suitable for the planting, growing, or harvesting of hemp, if the parcel does not exceed forty acres.
7. “Department” means the department of agriculture and land stewardship.
8. “Federal hemp law” means that part of Tit. X of the Agriculture Improvement Act of 2018, Pub. L. No. 115-334, that authorizes hemp production according to a state plan approved by the United States department of agriculture, as provided in §10113 of that Act, amending the Agricultural Marketing Act of 1946, 7 U.S.C. §1621 et seq., including by adding §§297A through 297E.
9. a. “Hemp” means the plant cannabis sativa L. and any part of that plant, including the seeds thereof, and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent on a dry weight basis. b. “Hemp” also means a plant of the genus cannabis other than cannabis sativa L., with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths of one percent on a dry weight basis, but only to the extent allowed by the department in accordance with applicable federal law, including the federal hemp law.
10. “Hemp license” or “license” means a hemp license issued pursuant to section 204.4.
11. a. “Hemp product” means an item derived from or made by processing hemp or parts of hemp, including but not limited to any item manufactured from hemp, including but not limited to cloth, cordage, fiber, food, fuel, paint, paper, particle board, plastic, hemp seed, seed meal, or seed oil. b. “Hemp product” does not include any of the following: (1) An item or part of an item with a maximum delta-9 tetrahydrocannabinol concentration that exceeds three-tenths of one percent on a dry weight basis. (2) Hemp seed that is capable of germination.
12. “Licensee” means a person who obtains a hemp license from the department under this chapter.
13. “Local law enforcement agency” means an office of county sheriff or a municipal police department.
14. “Negligent violation program” or “program” means the program that may be established by the department to allow a licensee to correct certain violations of this chapter as provided in section 204.14.
15. “Produce” means to provide for the planting, raising, cultivating, managing, harvesting, and storing a crop. Sec.
16. NEW SECTION . 204.3 State plan —— implementing rules.
17. The department shall prepare a state plan to be submitted to the United States secretary of agriculture under the federal hemp law.
18. Upon approval of the state plan, the department shall assume primary regulatory authority over the production of hemp in this state as provided in this chapter. However, nothing in this chapter affects the powers and duties of the department of public safety or local law enforcement agencies from enforcing any law within its purview or jurisdiction. The department of public safety shall be the chief criminal enforcement agency under this chapter.
19. The department may prepare any number of amended state plans or any number of amendments to an existing state plan to be submitted for approval by the United States secretary of agriculture.
20. The department may provide for the receipt, filing, processing, and return of documents described in this chapter in an electronic format, including but not limited to the transmission of documents by the internet. The department shall provide for the authentication of official forms in an electronic format that may include electronic signatures as provided in chapter 554D. An official form in an electronic format shall have the same validity and is discoverable and admissible in evidence if given under penalty of perjury in the same manner as an original printed form. The department shall provide for the issuance of certificates of crop inspection in an electronic format as provided in section 204.8.
21. a. The department shall prepare the state plan, any amended state plan, or amendment to an approved state plan, by adopting rules pursuant to chapter 17A. b. The department may adopt the rules on an emergency basis as provided in section 17A.4, subsection 3, and section 17A.5, subsection 2, and the rules shall be effective immediately upon filing unless a later date is specified in the rules. Sec.
22. NEW SECTION . 204.4 Hemp license —— requirements.
23. The department shall establish and administer a process to receive, evaluate, and approve or disapprove applications for a hemp license.
24. The department shall prepare and publish one or more hemp license application forms in cooperation with the department of public safety. A completed application form submitted to the department shall contain all of the following: a. The applicant’s full name and residence address. b. A legal description and map of each crop site where the applicant proposes to produce the hemp including its global positioning system location. c. The number of crop acres to be used for hemp production. d. The name of the hemp variety. e. The results of a national criminal history record check of an applicant as may be required by the department. The department shall inform an applicant if a national criminal history record check will be conducted. If a national criminal history record check is conducted, the applicant shall provide the applicant’s fingerprints to the department. The department shall provide the fingerprints to the department of public safety for submission through the state criminal history repository to the federal bureau of investigation. The applicant shall pay the actual cost of conducting any national criminal history record check to the department of agriculture and land stewardship. The department shall pay the actual cost of conducting the national criminal history record check to the department of public safety from moneys deposited in the hemp fund pursuant to section 204.6. The department of public safety shall treat such payments as repayment receipts as defined in section 8.2. The results of the national criminal history check shall not be considered a public record under chapter
25. f. Any other information required in order to administer and enforce the provisions of this chapter.
26. As a condition for issuance of a hemp license, the licensee consents to the department, the department of public safety, or a local law enforcement agency entering upon a crop site as provide in section 204.9.
27. The department may do all of the following: a. Require that all or some licenses expire on the same date. b. Provide a different application form and requirements relating to the submission, evaluation, and approval or disapproval of an application for a renewed hemp license consistent with federal law.
28. An applicant shall not be issued a hemp license unless the applicant agrees to comply with all terms and conditions relating to the regulation of a licensee as provided in this chapter.
29. A person may hold any number of licenses at the same time. However, the person shall not hold a legal or equitable interest in a licensed crop site, if the total number of acres of all licensed crop sites in which the person holds all such interests equals more than forty acres.
30. An initial hemp license expires one year from the date of issuance and may be issued on a renewal basis annually. The department may require that a licensee apply for an amended or new initial license if information contained in the existing application is no longer accurate or is incomplete.
31. The department and the department of public safety shall cooperate to develop procedures for the sharing of information regarding applicants, including information required to be completed on application forms. Upon request, the department or the department of public safety shall provide information regarding an applicant to a department of agriculture or law enforcement agency in another state.
32. Information received on an application form shall be maintained by the department for not less than three years.
33. The department shall disapprove the application of a person for good cause, which shall include, but is not limited to, any of the following: a. A conviction for committing a criminal offense involving a controlled substance as described in section 204.7. b. A third violation of a provision of this chapter in a five-year period. The department shall disapprove any application of a person for a five-year period following the date of the person’s last violation in the same manner as provided in section 204.15. c. The revocation of a hemp license under section 204.11, or the revocation of a license, permit, registration, or other authorization to produce hemp in any other state.
34. A hemp license shall be suspended or revoked as provided in section 204.11. Sec.
35. NEW SECTION . 204.5 Hemp fees.
36. The department shall impose, assess, and collect the following hemp fees: a. A license fee which shall be paid by a person being issued a hemp license as provided in section 204.4. b. An inspection fee which shall be paid by a licensee for the inspection of the licensee’s crop site, including obtaining samples of plants to conduct a test, as provided in section 204.8.
37. a. For each hemp license, the license fee shall be imposed on an interim basis until June 30,
38. The amount of the license fee shall not be more than the following: (1) Five hundred dollars plus five dollars per acre, for each crop site that is five acres or less. (2) Seven hundred and fifty dollars, plus five dollars per acre, for each crop site that is more than five acres but not more than ten acres. (3) One thousand dollars plus five dollars per acre, for each crop site that is more than ten acres. b. For conducting an inspection and official test as provided in section 204.8, the department shall charge an inspection fee on an interim basis until June 30, 2022, as follows: (1) In the case of an annual inspection and official test, a base fee of not more than one thousand dollars. The department may charge a supplemental fee in an amount determined by the department for conducting an inspection and official test of any additional variety of hemp produced on the same licensed crop site. (2) In the case of any other inspection and official test, conducted at the request of the licensee, the department shall charge a base fee or supplemental fee in the same manner as provided in subparagraph (1). c. This subsection is repealed on July 1,
40. a. The department shall adopt rules to establish hemp fees for the issuance of a hemp license pursuant to section 204.4. b. The department shall adopt rules to establish hemp fees for conducting inspections and obtaining samples of plants to conduct tests, including but not limited to an annual inspection and official test, pursuant to section 204.8. c. The department shall calculate the rates, or a range of rates, of the hemp fees to be effective for each successive twelve-month period. The total amount of hemp fees collected by the department pursuant to this subsection shall not be more than the department’s estimate of the total amount of revenues necessary to administer and enforce the provisions of this chapter based on the expected revenue collected from the hemp fees and the costs to be incurred by the department in administering and enforcing the provisions of this chapter during that period. The department may adjust the rates within the range throughout the period as the department determines necessary to comply with this paragraph. d. The department may establish different rates for any category of hemp fees based on criteria determined relevant by the department, which may include the number of acres of the licensee’s crop site and the type of hemp license issued. e. (1) The rules shall first take effect immediately after the repeal of subsection
41. (2) This paragraph “e” is repealed immediately after the rules described in subparagraph (1) take effect.
42. The license fee and any annual inspection fee shall be collected by the department at the time the hemp license application is submitted.
43. Any hemp fee collected by the department under this section shall be deposited in the hemp fund established pursuant to section 204.6.
44. The department may refund all or any part of a hemp fee collected under this section to an applicant. Sec.
45. NEW SECTION . 204.6 Hemp fund.
46. A hemp fund is established in the state treasury under the management and control of the department.
47. The hemp fund shall include moneys collected by the department from hemp fees imposed and assessed under section 204.5 and moneys appropriated by the general assembly for deposit in the hemp fund. The hemp fund may include other moneys available to and obtained or accepted by the department, including moneys from public or private sources.
48. Moneys in the hemp fund are appropriated to the department and shall be used exclusively to carry out the responsibilities conferred upon the department under this chapter as determined and directed by the department, and shall not require further special authorization by the general assembly.
49. a. Notwithstanding section 12C.7, interest or earnings on moneys in the hemp fund shall be credited to the hemp fund. b. Notwithstanding section 8.33, moneys credited to the hemp fund that remain unexpended or unobligated at the end of a fiscal year shall not revert to any other fund. Sec.
50. NEW SECTION . 204.7 Regulations —— exemption for certain criminal offenses.
51. The Iowa crop improvement association recognized in chapter 177 shall adopt procedures to certify hemp seed capable of germination. Hemp seed certified under this subsection shall be presumed to comply with the requirements for hemp produced under this chapter.
52. A person who materially falsifies any information contained in an application under section 204.4 shall be ineligible to produce hemp under this chapter.
53. a. A licensee convicted of an offense punishable as a felony, for producing, possessing, using, harvesting, handling, manufacturing, marketing, transporting, delivering, or distributing a controlled substance before, on, or after the implementation date of this chapter shall be ineligible to produce hemp under this chapter for a ten-year period following the date of conviction. b. A licensee convicted in another state of an offense, punishable in that state as a felony, substantially corresponding to an offense described in paragraph “a” , before, on, or after the implementation date of this chapter, shall be ineligible to produce hemp under this chapter for a ten-year period following the date of conviction. The department shall recognize the statute of another state which defines such offense substantially equivalent to an offense described in paragraph “a” as a corresponding statute.
54. The department shall adopt rules regulating the production of hemp, including but not limited to inspection and testing requirements under section 204.8 or 204.9, and the issuance of a certificate of crop inspection under section 204.8. The department shall adopt rules as necessary to administer the negligent violation program. The department may adopt other rules as necessary or desirable to administer and enforce the provisions of this chapter relating to hemp or hemp products.
55. A licensee is not subject to a criminal offense under chapter 124 or 453B for producing, possessing, using, harvesting, handling, manufacturing, marketing, transporting, delivering, or distributing hemp, if all of the following apply: a. The hemp is hemp seed delivered to the licensee for planting at the licensee’s crop site, or the hemp is or was produced at the licensee’s crop site. b. The department, the department of public safety, or a local law enforcement agency is allowed to access the licensee’s crop site as part of an inspection as provided in sections 204.8 and 204.9, including by obtaining a sample of plants to conduct a test pursuant to section 204.8. c. The department has issued a certificate of crop inspection to the licensee covering the harvested hemp as provided in section 204.8.
56. A person other than a licensee is not subject to a criminal offense under chapter 124 or 453B for producing, possessing, using, harvesting, handling, manufacturing, marketing, transporting, delivering, or distributing hemp, while on the licensee’s crop site, if all of the following applies: a. The hemp is produced at the licensee’s crop site. b. The person is authorized to be on the licensee’s crop site by the licensee.
57. A person other than a licensee is not subject to a criminal offense under chapter 124 or 453B for possessing, handling, using, manufacturing, marketing, transporting, delivering, or distributing hemp produced in this state, if all of the following applies: a. The hemp is hemp seed delivered to the licensee for planting at the licensee’s crop site, or the hemp was produced at a licensee’s crop site. b. If the hemp has been harvested, the person holds a certificate of crop inspection covering the harvested hemp as provided in section 204.8. c. The person is acting in compliance with the federal hemp law and other applicable federal law.
58. A person is not subject to a criminal offense under chapter 124 or 453B for possessing, using, harvesting, handling, manufacturing, marketing, transporting, delivering, or distributing hemp produced in another state in compliance with the federal hemp law and other applicable federal law.
59. a. A person may engage in the retail sale of a hemp product if the hemp was produced in this state or another state in compliance with the federal hemp law or other applicable federal law. A person may engage in the retail sale of a hemp product if the hemp was produced in another jurisdiction in compliance with applicable federal law and the laws of the other jurisdiction, if such law is substantially the same as applicable federal law. b. To the extent consistent with applicable federal law, a derivative of hemp, including hemp-derived cannabidiol, may be added to cosmetics, personal care products, and products intended for human or animal consumption. The addition of such a derivative shall not be considered an adulteration of the product, unless otherwise provided in applicable federal law. c. A person may transport a hemp product within and through this state and may export a hemp product to any foreign nation, in accordance with applicable federal law and the law of the foreign nation. d. A hemp product complying with this subsection is not a controlled substance under chapter 124 or 453B. Sec.
60. NEW SECTION . 204.8 Inspections and tests —— certificate of crop inspection.

Shortened here; the full amendment is in the official document.

Official amendment (PDF) · In the Bill Book