Bills › 90th General Assembly
SSB 3159
Topics:AgricultureAlcohol, cannabis & gamingState government
Where it is now
- Done: IntroducedFebruary 6, 2024
- Done: SubcommitteeFebruary 6, 2024
- Done: Senate committeeFebruary 13, 2024
- Skipped: Passes the SenateContinued as SF 2352
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 2352 → Its progress continues under the new number. Go to SF 2352 What’s a funnel?
What’s in it
AI summary The Iowa Department of Health and Human Services would gain more power to set rules on how much THC can be in hemp products and how they are sold. This bill creates new criminal penalties for selling hemp products to minors or selling unregistered products, and it prohibits businesses from selling alcoholic beverages that contain THC. Additionally, it changes how the law treats dried hemp flowers and removes a program that previously protected some hemp producers from being prosecuted for accidental violations.1
Read the official explanation
BACKGROUND.7).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).12). _____ 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. 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.7).). §1639r), but the FDA has not adopted a comprehensive regulatory framework.14A). 156). HHS’s regulations include packaging and labeling requirements.12).12). _____ illegally produced hemp.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.7). BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (PRESUMPTION OF GUILT FOR INHALATION OFFENSE).14A) for purposes of the criminal offense.14A). BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (CRIMINAL AND CIVIL PENALTY FOR FAILURE TO REGISTER).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).14D). A simple misdemeanor is punishable by confinement for no more than days and a fine of at least $105 but not more than $855.14E). 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 $325.8C). In addition, the person subject to the violation may also be sentenced to perform a number of hours of community service; ranging from to hours depending upon the number of previous offenses committed.14F). BILL’S PROVISIONS —— CONSUMABLE HEMP PRODUCTS (CONFISCATION AND DISPOSAL).7).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.91. _____ 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.15). The bill eliminates the program.18).
Changed since by amendments S-5116, H-8193, H-8134; see Amendments.
Senate subcommittee
Named February 6, 2024. On February 13, 2024 it recommended amendment and passage. [].
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
3 written public comments to its subcommittee: February 12, 2024 (2), February 7, 2024 (1) · on the Legislature’s site
Fiscal note
AI summary This bill updates definitions for hemp products, establishes new criminal offenses and civil penalties, and prohibits the sale of alcoholic beverages containing THC. The fiscal impact of the bill cannot be estimated because the number of new offenses and the change in registration revenue are unknown. Additionally, the revenue from scheduled violations paid to cities and counties cannot be estimated.3
Read the fiscal note
Description
House File 2605 makes various changes to the Iowa Hemp Act.
Division I of the Bill does the following:
- Updates the definition of a consumable hemp product to require that the product’s maximum tetrahydrocannabinol (THC) concentration is less than or equal to the lesser of 0.3% on a dry weight basis or 4 milligrams per serving and 10 milligrams per container on a dry weight basis.
- Updates the definition of a hemp product to exclude an item or part of an item that exceeds the maximum total THC concentration allowed under Iowa Code section 124.204(7), or an item or part of an item that is metabolized or otherwise subject to a biotransformative process when introduced into the human body and that exceeds the maximum THC allowed for a consumable hemp product.
- Requires that each container storing consumable hemp be affixed with a notice advising consumers on the risks associated with its use, for which the Department of Health and Human Services (HHS) is required to adopt administrative rules for the language and display.
- Updates the requirements for manufacturing, selling, or consuming a consumable hemp product to require that the product complies with restrictions set forth in rules adopted by the HHS.
- Creates a serious misdemeanor for a person using, marketing, or distributing a raw or dried flower form of hemp for the purpose of inhalation and requires any raw or dried flower form of hemp that is marketed or distributed to have a notice on its container stating that it is a raw or dried agricultural commodity not suitable for human consumption.
- Creates a serious misdemeanor for a person registered to manufacture or sell consumable hemp who manufactures, produces, distributes, markets, or sells a synthetic consumable hemp product as defined by administrative rules adopted by the HHS.
- Creates a civil penalty not to exceed $10,000 per day for a person who is engaged in the retail sale of a consumable hemp product and has failed to register with the HHS.
- Creates a serious misdemeanor for a person who is engaged in the retail sale of consumable hemp products but has not registered with the HHS and for selling a consumable hemp product that is advertised as a consumable hemp product but is not a consumable hemp product.
- Creates a simple misdemeanor for a person who sells, gives, or distributes a consumable hemp product to a person under the age of 21.
- Specifies that a person under the age of 21 who consumes, possesses, purchases, or attempts to purchase a consumable hemp product is subject to a scheduled violation. In addition, the person is subject to a court appearance where the court shall sentence the person to a number of hours of community service depending on the number of violations. A person under the age of 21 does not violate the Bill if the person is possessing a consumable hemp product as part of the person’s employment or if the person is working under the direction or consent of the Department of Public Safety (DPS) or local law enforcement.
- Provides scheduled violations for a person under the age of 21 who violates the Bill. For a first violation, there is a scheduled fine of $70; for a second violation, a scheduled fine of $135; and for a third or subsequent violation, a scheduled fine of $325. These scheduled violations are not subject to the Crime Services Surcharge or court costs otherwise added to scheduled violations. Any fines paid for these violations are retained by the city or county that enforced the violation.
- Allows the HHS to order the confiscation and disposal of a hemp product if the product is in violation of this Bill, requires the HHS to deliver any sample of the product to the DPS or local law enforcement, and requires a person who is registered with the HHS to pay for the cost incurred by the HHS for the destruction of the product.
Division II of the Bill does the following:
- Adds the prohibition of a person holding a retail alcohol license and the person’s agents or employees from selling, giving, or otherwise supplying any alcoholic beverage containing THC, as described in Iowa Code chapter 124 and Iowa Code section 123.49.
- Prohibits a person holding a license, permit, or certificate of compliance from manufacturing, importing, or selling at wholesale an alcoholic beverage containing THC as described in Iowa Code chapter 124.
Background
Iowa Code chapter 204, known as the Iowa Hemp Act, was created in 2019 and governs the production and sale of products derived from hemp. Hemp is defined as a species of cannabis that has a maximum concentration of delta-9 THC that does not exceed 0.3% on a dry weight basis. The current definition does not include hemp products that are intended to be inhaled and does not specify an age limit on the use of consumable hemp products. The Iowa Hemp Act prohibits a person from possessing, using, manufacturing, marketing, transporting, delivering, or distributing harvested hemp or a hemp product if the intended use is introduction into the body through an electronic, chemical, or mechanical process or a device such as a cigarette, cigar, cigarillo, or pipe. Any person who manufactures or sells a consumable hemp product must register with the HHS.
Iowa Code chapter 123 provides regulation on alcoholic beverages in the State. A violation of Iowa Code section 123.49 is a simple misdemeanor, while a general violation of Iowa Code chapter 123 is a serious misdemeanor for a first and second offense and an aggravated misdemeanor for a third and subsequent offense.
A simple misdemeanor is punishable by confinement for up to 30 days in jail and a fine of at least $105 but no more than $855. A serious misdemeanor is punishable by confinement for up to one year and a fine of at least $430 but no more than $2,560. An aggravated misdemeanor is punishable by confinement for up to two years and a fine of at least $865 but no more than $8,540.
Assumptions
- There may be an increase in simple, serious, and aggravated misdemeanors as a result of this Bill, but the number is unknown.
- There may be an increase in the number of scheduled violations as a result of this Bill, but the number is unknown.
- Registration revenue collected by the HHS may decrease, but the amount of this decrease is unknown.
- Marginal costs for county jails cannot be estimated due to a lack of data. For purposes of this analysis, the marginal cost for county jails is assumed to be $50 per day.
- The marginal cost per day in prison is $24.94.
Correctional Impact
House File 2605 creates and expands criminal offenses. As a result, the correctional impact cannot be estimated due to a lack of existing data. Figure 1 shows estimates for sentencing to State prison, parole, probation, or Community-Based Corrections (CBC) residential facilities; length of stay (LOS) in months under those supervisions; and supervision marginal costs per day for serious and aggravated misdemeanors. A conviction for a simple misdemeanor does not result in a prison sentence but does carry the possibility of confinement in jail for up to 30 days. Refer to the Legislative Services Agency (LSA) memo addressed to the General Assembly, Cost Estimates Used for Correctional Impact Statements, dated January 16, 2024, for information related to the correctional system.
Figure 1 — Sentencing Estimate and Length of Stay (LOS)
Minority Impact
House File 2605 creates and expands criminal offenses, and the minority impact cannot be determined due to lack of conviction data. Refer to the LSA memo addressed to the General Assembly, Minority Impact Statement, dated January 16, 2024, for information related to minorities in the criminal justice system.
Fiscal Impact
The fiscal impact cannot be estimated due to a lack of existing data. Figure 2 shows the average State cost per offense for an aggravated misdemeanor, serious misdemeanor, and simple misdemeanor.
Figure 2 — Average State Cost Per Offense Revenue from scheduled violations paid to cities and counties for violations under the Bill cannot be estimated.
There may be a loss of revenue from registration fees associated with consumable hemp products, but the impact is unknown.Conviction Offense Class
Percent
Ordered to
State Prison
FY 2023 Avg
LOS in
Prison (All Releases)
Marginal
Cost Per
Day
Percent
Ordered to
Probation
FY23 Field
Avg LOS on
Probation
Avg Cost Per
Day on
Probation
Percent
Sentenced to
CBC
Residential
Facility
Marginal
Cost CBC
Per Day
Percent
Ordered to
County Jail
Marginal
Cost Per
Day Jail
FY23 Field
Avg LOS on
Parole
Marginal
Cost Per
Day Parole
Aggravated Misdemeanor 47.6% 10.6 $24.94 67.6% 25.1 7.67$ 5.2% 20.00$ 55.9% 50.00$ 6.7 7.67$ Serious Misdemeanor 1.7% 6.6 $24.94 53.0% 19.2 7.67$ 1.2% 20.00$ 74.2% 50.00$ N/A 7.67$Offense Class Average Cost Aggravated Misdemeanor $7,500 to $10,800 Serious Misdemeanor $400 to $6,900 Simple Misdemeanor $40 to $400
Sources
- Criminal and Juvenile Justice Planning, Department of Management
- Department of Health and Human Services
- Legislative Services Agency
- Final Fiscal Note — Consumable Hemp, Penalties and Licensing · April 29, 2024
- Consumable Hemp, Penalties and Licensing · March 13, 2024
- Consumable Hemp, Penalties and Licensing · February 28, 2024
- Consumable Hemp, Penalties and Licensing · February 28, 2024
Iowa Code it changes
Creates§123.49A§204.14B§204.14C§204.14D§204.14E§204.14F§204.15A
Amends§123.49§204.11§204.12§204.14A§204.2§204.4§204.7§805.10§805.8C
Lobbying
9 for · 7 against · 26 undecided · Who →
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90th General Assembly