Bill Text: IA SF599 | 2019-2020 | 88th General Assembly | Enrolled

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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, including penalties, and providing implementation and effective date provisions. (Formerly SF 279.) Various effective dates; see sections 19 and 33 of bill.

Spectrum: Committee Bill

Status: (Passed) 2019-05-13 - Signed by Governor. S.J. 1197. [SF599 Detail]

Download: Iowa-2019-SF599-Enrolled.html

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Senate File 599 - Enrolled
Senate File 599
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, INCLUDING
PENALTIES, AND PROVIDING IMPLEMENTATION AND EFFECTIVE DATE
PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
IOWA HEMP ACT
Section 1. NEW SECTION . 204.1 Short title.
This chapter shall be known as the “Iowa Hemp Act” .

Senate File 599, p. 2
Sec. 2. NEW SECTION . 204.2 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Controlled substance” means the same as defined in
section 124.101.
2. “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.
3. “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.
4. “Department” means the department of agriculture and land
stewardship.
5. “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.
6. 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.
7. “Hemp license” or “license” means a hemp license issued
pursuant to section 204.4.
8. a. “Hemp product” means an item derived from or made
by processing hemp or parts of hemp, including but not limited

Senate File 599, p. 3
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.
9. “Licensee” means a person who obtains a hemp license from
the department under this chapter.
10. “Local law enforcement agency” means an office of county
sheriff or a municipal police department.
11. “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 204.15.
12. “Produce” means to provide for the planting, raising,
cultivating, managing, harvesting, and storing a crop.
Sec. 3. NEW SECTION . 204.3 State plan —— implementing
rules.
1. The department shall prepare a state plan to be submitted
to the United States secretary of agriculture under the federal
hemp law.
2. 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.
3. 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.
4. 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

Senate File 599, p. 4
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.
5. 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. 4. NEW SECTION . 204.4 Hemp license —— requirements.
1. The department shall establish and administer a process
to receive, evaluate, and approve or disapprove applications
for a hemp license.
2. 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

Senate File 599, p. 5
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 22.
f. Any other information required in order to administer and
enforce the provisions of this chapter.
3. As a condition for the 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 provided in section 204.9.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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

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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.
9. Information received on an application form shall be
maintained by the department for not less than three years.
10. 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.
11. A hemp license shall be suspended or revoked as provided
in section 204.11.
Sec. 5. NEW SECTION . 204.5 Hemp fees.
1. 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.
2. a. For each hemp license, the license fee shall be
imposed on an interim basis until June 30, 2022. 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

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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, 2022.
3. 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.

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e. (1) The rules shall first take effect immediately after
the repeal of subsection 2.
(2) This paragraph “e” is repealed immediately after the
rules described in subparagraph (1) take effect.
4. The license fee and any annual inspection fee shall
be collected by the department at the time the hemp license
application is submitted.
5. Any hemp fee collected by the department under this
section shall be deposited in the hemp fund established
pursuant to section 204.6.
6. The department may refund all or any part of a hemp fee
collected under this section to an applicant.
Sec. 6. NEW SECTION . 204.6 Hemp fund.
1. A hemp fund is established in the state treasury under
the management and control of the department.
2. 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.
3. 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.
4. 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. 7. NEW SECTION . 204.7 Regulations —— exemption for
certain criminal offenses.
1. 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.

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2. A person who materially falsifies any information
contained in an application under section 204.4 shall be
ineligible to produce hemp under this chapter.
3. 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.
4. 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.
5. 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

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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.
d. During any period that the licensee is transporting
hemp, other than only on the licensee’s property, the licensee
carries all of the following:
(1) The licensee’s hemp license issued pursuant to section
204.4, or a copy of that license.
(2) The licensee’s certificate of crop inspection covering
the licensee’s harvested hemp as provided in section 204.8.
6. 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.
7. 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. During any period that the person is transporting hemp
the person carries all of the following:
(1) If the hemp has been harvested, a certificate of crop
inspection covering the harvested hemp as provided in section
204.8.
(2) A bill of lading that includes information required
by the department, which must at least indicate the name of
the owner of the hemp, the point of origin, and the point of
delivery.
c. The person is acting in compliance with the federal hemp

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law and other applicable federal law.
8. 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, if all of the
following applies:
a. During any period that the person is transporting hemp,
the person carries a bill of lading that includes information
required by the department, which must at least indicate the
name of the owner of the hemp, the point of origin, and the
point of delivery.
b. The person is acting in compliance with the federal hemp
law and other applicable federal law.
9. 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. 8. NEW SECTION . 204.8 Inspections and tests ——
certificate of crop inspection.
1. a. The department shall conduct an annual inspection
of a licensee’s crop site to determine if the crop produced
at the site qualifies as hemp under this section. The annual
inspection shall include obtaining a sample of plants that

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are part of the crop and providing for an official test of
that sample. The inspection shall be conducted as provided in
section 204.9.
b. A licensee shall deliver a notice to the department
stating the expected harvest date for the crop produced at the
licensee’s crop site. The department must receive the notice
at least thirty days prior to the expected harvest date. The
department shall conduct the annual inspection of the site
within thirty days prior to the actual harvest date.
c. The department shall provide the department of public
safety any official test results that indicate a sample exceeds
the maximum concentration of delta-9 tetrahydrocannabinol in
excess of two percent on a dry weight basis.
d. A licensee shall not harvest any portion of a crop
produced at the licensee’s crop site unless the department has
issued the licensee a certificate of crop inspection. The
department shall issue a verified copy of the certificate to
any other person upon request of the licensee. The certificate
shall be published by the department as an official form. To
the extent allowed by the federal hemp law, the certificate
shall be proof that the harvested crop described on the form
qualifies as hemp pursuant to the results of an official test.
2. The department may conduct official tests for additional
varieties of hemp located on the same licensed crop site. The
department may conduct additional inspections and tests upon
the request of a licensee.
3. The official test shall be a composite test of the plants
obtained by the department from a licensee’s crop site during
the annual inspection and shall be conducted by a laboratory
designated by the department. The sample must have a maximum
concentration of delta-9 tetrahydrocannabinol that does not
exceed three-tenths of one percent on a dry weight basis.
4. The department of public safety or a local law
enforcement agency may conduct an inspection of a licensee’s
crop site in order to determine that the licensee is complying
with the criminal provisions of this chapter as well as
chapters 124 and 453B. The department of public safety or a
local law enforcement agency may conduct a test of the plants
obtained by that department or local law enforcement agency

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from the licensee’s crop site during the inspection according
to procedures adopted by the department of public safety.
Sec. 9. NEW SECTION . 204.9 Right of access.
1. a. The department, including an authorized inspector,
employee, or agent of the department, may enter onto a crop
site during reasonable hours to determine whether a licensee is
acting in compliance with the requirements under this chapter.
The department may also enter into any structure if all of the
following apply:
(1) The structure is not a dwelling.
(2) The structure is located on or in close proximity to the
licensee’s crop site, and the use of such structure is directly
related to the production of hemp, including but not limited to
a barn, machine shed, greenhouse, or storage crib.
b. The department may require the licensee to furnish
business records, including books, accounts, records, files,
and any other documents in print or electronic media that the
department deems relevant to an inquiry conducted under this
chapter.
c. The department may request the department of public
safety or a local law enforcement agency accompany the
department of agriculture and land stewardship when conducting
an inspection.
2. a. The department of public safety or a local law
enforcement agency may conduct an inspection of a licensee’s
crop site or enter into a structure located on or in close
proximity to the crop site and may require a licensee to
furnish business records, in the same manner and according to
the same limitations as the department of agriculture and land
stewardship pursuant to subsection 1.
b. The department of public safety or a law enforcement
agency may obtain a sample of plants that are part of the
crop and provide for a test of that sample as provided in
section 204.8. The department of public safety or a local law
enforcement agency shall not impose, assess, or collect a fee
for conducting an inspection or test under this section.
4. A person shall not prevent the department, the department
of public safety, or a local law enforcement agency from
administering and enforcing the provisions of this section by

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any means, including but not limited to any act, including
a refusal to allow entry, misrepresentation, omission, or
concealment of facts.
5. A licensee shall not harvest any portion of a crop
produced at the licensee’s crop site if the department, the
department of public safety, or a local law enforcement agency
has been prevented from accessing the site under this section.
Sec. 10. NEW SECTION . 204.10 Order of disposal.
1. If a crop that is produced at a licensee’s crop site does
not qualify as hemp according to an official test conducted
pursuant to section 204.8, the department, in consultation with
the department of public safety, shall order the disposal of
the crop by destruction at the site or if necessary require the
crop to be removed to another location for destruction.
2. The department may request assistance from the
department of public safety or a local law enforcement agency
as necessary to carry out the provisions of this section. The
department upon request shall deliver any sample of the crop
to the department of public safety or a local law enforcement
agency.
3. The licensee shall pay the department for all actual
and reasonable costs of the destruction of the crop. If the
department assumes any amount of the costs, it may charge that
amount to the licensee. If the licensee fails to reimburse any
of that amount to the department, the department may report the
amount to the county treasurer. The amount shall be placed
upon the tax books, and collected with interest and penalties
after due, in the same manner as other unpaid property taxes.
The county shall reimburse the department within thirty days
from the collection of the property taxes.
4. To the extent allowed by applicable federal law, the
department may provide for the disposal of the mature stalks
of the crop confiscated by the department for the licensee’s
on-farm use and at the licensee’s expense.
Sec. 11. NEW SECTION . 204.11 Disciplinary action.
1. The department may suspend or revoke a hemp license
obtained under section 204.4 by a person who does any of the
following:
a. Provides false or misleading information to the

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department under this chapter, including by submitting a false
application.
b. Fails to comply with or violates any provision of this
chapter, including a rule adopted by the department, the
department of public safety, or a condition of an application
for the issuance of a hemp license under section 204.4.
c. Fails to comply with an order issued by the department
under this chapter.
2. The department shall revoke a license issued pursuant to
section 204.4, if any of the following apply:
a. The department would disapprove a new application to that
person for good cause as provided in section 204.4, subsection
10.
b. The person submits a materially false application to
participate in the negligent violation program.
3. The suspension or revocation of a hemp license is in
addition to an order of disposal under section 204.10; the
imposition of a civil penalty under section 204.12, subject
to the provisions of section 204.15; or the imposition of any
other civil or criminal penalty authorized under state law.
Sec. 12. NEW SECTION . 204.12 Civil penalties.
1. A person who violates a provision of this chapter is
subject to a civil penalty of not less than five hundred
dollars and not more than two thousand five hundred dollars.
The department shall impose, assess, and collect the civil
penalty. Each day that a continuing violation occurs may be
considered a separate offense.
2. Notwithstanding subsection 1, a civil penalty shall not
be imposed, assessed, or collected against a licensee who is
participating in or has successfully completed the negligent
violation program pursuant to section 204.15.
3. All civil penalties collected under this section shall be
deposited into the general fund of the state.
Sec. 13. NEW SECTION . 204.13 Injunctive relief.
The department, or the attorney general acting on behalf of
the department, may apply to the district court for injunctive
relief in order to restrain a person from acting in violation
of this chapter. In order to obtain injunctive relief, the
department, or attorney general, shall not be required to post

Senate File 599, p. 16
a bond or prove the absence of an adequate remedy at law unless
the court for good cause otherwise orders. The court may order
any form of prohibitory or mandatory relief that is appropriate
under principles of equity, including but not limited to
issuing a temporary or permanent restraining order.
Sec. 14. NEW SECTION . 204.14 Criminal offense —— falsified
certificate of crop inspection.
A person is subject to criminal penalties provided under the
applicable provisions in chapter 124 or 453B, if all of the
following apply:
1. The person commits an offense under one of the applicable
provisions of chapter 124 or 453B by possessing, handling,
using, manufacturing, marketing, transporting, delivering, or
distributing the plant cannabis, regardless of whether the
plant was produced in compliance with the provisions of this
chapter.
2. The person is required to hold a certificate of crop
inspection under section 204.8 to possess, handle, use,
manufacture, market, transport, deliver, or distribute hemp
that has been harvested under this chapter.
3. The person knowingly or intentionally does any of the
following:
a. Falsifies the certificate of crop inspection.
b. Acquires the certificate of crop inspection that the
person knows has been falsified.
Sec. 15. NEW SECTION . 204.15 Negligent violation ——
program.
1. a. The department may find that a licensee has
negligently violated a provision of this chapter by doing any
of the following:
(1) Completing an application for a license without
providing a legal description of the crop site pursuant to
section 204.4.
(2) Failing to renew a hemp license for an existing crop
site or obtain a hemp license for a new crop site pursuant to
section 204.4.
(3) Producing a crop on the licensee’s crop site with a
maximum concentration of delta-9 tetrahydrocannabinol that
exceeds three-tenths of one percent according to the results of

Senate File 599, p. 17
an official test of a sample obtained from the licensed crop
site pursuant to an inspection conducted under section 204.8.
b. It is conclusively presumed that a licensee acted
with a culpable mental state greater than negligence, if
the department obtains a sample of a crop produced on the
licensee’s crop site and the official test results of the
sample conducted pursuant to section 204.8 indicate a maximum
concentration of delta-9 tetrahydrocannabinol in excess of two
percent on a dry weight basis.
c. If the department determines a licensee violated this
chapter with a culpable mental state greater than negligence,
the department shall immediately report the licensee’s
violation to the department of public safety, the county
attorney, and the attorney general, who shall take action as
the facts and circumstances warrant. The department shall also
report the licensee to the United States attorney general to
the extent required by the federal hemp law.
2. The department may establish a negligent violation
program. The purpose of the program is to allow a
participating licensee who has negligently violated a provision
of this chapter as described in subsection 1 to comply with a
corrective plan established by the department to correct each
negligent violation, including by providing for all of the
following:
a. A reasonable date, established by the department, for the
licensee to correct each cause for the violation.
b. The filing of periodic reports to the department
evidencing that the licensee is complying with the requirements
of this chapter. The licensee shall submit the reports to the
department according to a schedule required by the department.
The licensee shall submit a report to the department for
at least two years from the date that the licensee first
participated in the program.
c. Any other requirement established by the department.
3. A licensee shall not participate in the negligent
violation program, if a test of a sample of plants that
are part of a crop produced on the licensee’s crop site
exceeds a maximum concentration of two percent delta-9
tetrahydrocannabinol on a dry weight basis.

Senate File 599, p. 18
4. A person who has violated a provision of this chapter
three times in a five-year period shall be ineligible to
participate in the negligent violation program, or produce
hemp, for a period of five years beginning on the date of the
third violation.
5. The department shall certify that a licensee has
successfully completed the negligent violation program. The
certification shall be published by the department as an
official form. The department shall deliver the certification
to the licensee which shall be proof of the licensee’s
compliance.
6. A licensee who is participating in or has successfully
completed the negligent violation program shall not be subject
to any of the following:
a. A civil penalty under section 204.12 for committing a
violation of this chapter.
b. A criminal offense under chapter 124 or 453B arising
out of a negligent violation of this chapter, if the licensee
would otherwise be guilty of producing, possessing, using,
harvesting, handling, or distributing the plant cannabis
pursuant to the results of a test conducted pursuant to section
204.8.
Sec. 16. NEW SECTION . 204.16 Waivers or variances.
If the department determines there is a conflict with a
regulation or order promulgated by a federal agency and a
provision of this chapter, the department may grant a variance
or waiver from the provision of this chapter to the extent such
variance or waiver is allowed under the federal hemp law and
the United States department of agriculture. The waiver or
variance shall expire not later than July 1 of the succeeding
legislative session.
Sec. 17. NEW SECTION . 204.17 Statutory construction.
1. Nothing in this chapter shall be construed or applied to
be less stringent than required under the federal hemp law.
2. Nothing in this chapter shall be construed or applied to
be in conflict with any of the following:
a. Applicable federal law and related regulations.
b. Other laws of this state, including any administrative
rules, relating to product development, product manufacturing,

Senate File 599, p. 19
consumer safety, or public health so long as the state law is
compatible with applicable federal law.
c. Local law relating to product development, product
manufacturing, consumer safety, or public health so long as the
local law is consistent with federal and state law.
3. Except as provided in section 204.7, nothing in this
chapter shall be construed or applied to prohibit a person
from possessing, handling, using, manufacturing, marketing,
transporting, delivering, or distributing a hemp product.
4. Nothing in this chapter shall be construed or applied
to authorize a person to manufacture, recommend, possess, use,
dispense, deliver, transport, or administer medical cannabidiol
pursuant to chapter 124E.
5. Nothing in this chapter shall be construed or applied to
infringe upon the ability of the department of public safety
or a local law enforcement agency to obtain a search warrant
issued by a court, or enter onto any premises in a manner
consistent with the laws of this state and the United States,
including Article I, section 8, of the Constitution of the
State of Iowa, or the fourth amendment to the Constitution of
the United States.
6. Nothing in this chapter shall be construed or applied
to affect a statute or rule which applies to hemp or a hemp
product, if it would apply in the same manner as to other
articles subject to the same general regulation.
Sec. 18. CONTINGENT IMPLEMENTATION.
1. Except as provided in subsection 2, the provisions of
chapter 204, as enacted in this division of this Act, shall
only be implemented, including administered and enforced,
by the department of agriculture and land stewardship,
the department of public safety, and local law enforcement
agencies, beginning on the publication date of the edition of
the Iowa administrative bulletin that includes a statement by
the secretary of agriculture of the department of agriculture
and land stewardship certifying that the United States
department of agriculture has approved a state plan as
described in section 204.3, as enacted in this division of this
Act. The department shall forward a copy of the statement to
the Iowa Code editor prior to publication.

Senate File 599, p. 20
2. Section 204.3 and this subsection shall be implemented on
the effective date of this division of this Act.
Sec. 19. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION II
COORDINATING AMENDMENTS
Sec. 20. Section 29B.107A, Code 2019, is amended by adding
the following new subsection:
NEW SUBSECTION . 3. Notwithstanding subsection 2,
“controlled substance” does not include hemp or a hemp product
excluded from schedule I of controlled substances as provided
in section 124.204, subsection 7.
Sec. 21. Section 80.9, subsection 7, Code 2019, is amended
to read as follows:
7. a. The department shall assist persons who are
responsible for the care of private and public land in
identifying growing marijuana plants when the plants are
reported to the department. The department shall also provide
education to the persons regarding methods of eradicating the
plants.
b. Notwithstanding paragraph “a” , the department is not
required to provide such assistance if the marijuana plants are
hemp produced in accordance with the provisions of chapter 204.
c. The department shall adopt rules necessary to carry out
this subsection .
Sec. 22. Section 124.204, subsection 4, paragraphs m and u,
Code 2019, are amended to read as follows:
m. Marijuana, except as otherwise provided by rules of the
board for medicinal purposes in subsection 7 .
u. (1) Tetrahydrocannabinols, except as otherwise
provided by rules of the board for medicinal purposes,
meaning tetrahydrocannabinols naturally contained in a plant
of the genus Cannabis (Cannabis plant) as well as synthetic
equivalents of the substances contained in the Cannabis plant,
or in the resinous extractives of such plant, and synthetic
substances, derivatives, and their isomers with similar
chemical structure and pharmacological activity to those
substances contained in the plant, such as the following:
(1) (a) 1 cis or trans tetrahydrocannabinol, and their

Senate File 599, p. 21
optical isomers.
(2) (b) 6 cis or trans tetrahydrocannabinol, and their
optical isomers.
(3) (c) 3,4 cis or trans tetrahydrocannabinol, and their
optical isomers. (Since nomenclature of these substances
is not internationally standardized, compounds of these
structures, regardless of numerical designation of atomic
positions covered.)
(2) Subparagraph (1) does not include tetrahydrocannabinol
to the extent excluded in subsection 7.
Sec. 23. Section 124.204, subsection 7, Code 2019, is
amended to read as follows:
7. Exclusions. This section does not apply to marijuana,
any of the following:
a. Marijuana, tetrahydrocannabinols , or chemical
derivatives of tetrahydrocannabinol , when utilized for
medicinal purposes pursuant to rules of the board.
b. (1) Hemp as defined in section 204.2 that is or was
produced in this state, or was produced in another state, in
accordance with the provisions of chapter 204 with a maximum
delta-9 tetrahydrocannabinol concentration that does not exceed
three-tenths of one percent on a dry weight basis.
(2) A hemp product as provided in chapter 204 with a maximum
delta-9 tetrahydrocannabinol concentration that does not exceed
three-tenths of one percent on a dry weight basis.
Sec. 24. Section 124.401, Code 2019, is amended by adding
the following new subsection:
NEW SUBSECTION . 6. Notwithstanding any other provision in
this section to the contrary, a person may produce, possess,
use, harvest, handle, manufacture, market, transport, deliver,
or distribute any of the following:
a. Hemp that is hemp seed delivered for planting at a
licensed crop site, or hemp that is or was produced at the
site, by a person operating under a hemp license issued by the
department of agriculture and land stewardship in accordance
with the provisions of chapter 204.
b. Hemp that was produced in another state in accordance
with the federal hemp law and other applicable law.
c. A hemp product as provided in chapter 204.

Senate File 599, p. 22
Sec. 25. NEW SECTION . 124.401H Iowa hemp Act —— negligent
violation program.
Notwithstanding any provision of this chapter to the
contrary, a person shall not be guilty of an offense under
this chapter, including under section 124.401 or 124.410,
for producing, possessing, using, harvesting, handling,
manufacturing, marketing, transporting, delivering, or
distributing the plant cannabis, if all of the following apply:
1. The person holds a valid hemp license issued by the
department of agriculture and land stewardship as provided in
chapter 204.
2. The plant is or was produced on the licensee’s crop site
as provided in chapter 204.
3. The offense arises out of a test of a sample of plants
that are part of a crop produced on the licensee’s crop site
and the test indicates that the sample does not qualify as hemp
under section 204.8 and does not exceed a maximum concentration
of two percent delta-9 tetrahydrocannabinol on a dry weight
basis.
4. The licensee is participating in or has successfully
completed the negligent violation program that applies to the
licensee’s crop site described in subsection 3 if such program
is established by the department of agriculture and land
stewardship pursuant to section 204.15.
Sec. 26. Section 124.410, Code 2019, is amended to read as
follows:
124.410 Accommodation offense.
1. In a prosecution for unlawful delivery or possession
with intent to deliver marijuana, if the prosecution proves
that the defendant violated the provisions of section 124.401,
subsection 1 , by proving that the defendant delivered or
possessed with intent to deliver one-half ounce or less of
marijuana which was not offered for sale, the defendant is
guilty of an accommodation offense and rather than being
sentenced as if convicted for a violation of section 124.401,
subsection 1 , paragraph “d” , shall be sentenced as if
convicted of a violation of section 124.401, subsection 5 . An
accommodation offense may be proved as an included offense
under a charge of delivering or possessing with the intent to

Senate File 599, p. 23
deliver marijuana in violation of section 124.401, subsection
1 . This section
2. Subsection 1 does not apply to hashish, any of the
following:
a. Hashish, hashish oil, or other derivatives of marijuana
as defined in section 124.101, subsection 20 .
b. Hemp or a hemp product excluded from schedule I
of controlled substances as provided in section 124.204,
subsection 7.
Sec. 27. Section 124.411, subsection 3, Code 2019, is
amended to read as follows:
3. This section does not apply to offenses any of the
following:
a. An offense under section 124.401, subsection 5 .
b. Hemp or a hemp product excluded from schedule I
of controlled substances as provided in section 124.204,
subsection 7.
Sec. 28. Section 124.506A, subsection 1, Code 2019, is
amended to read as follows:
1. a. Notwithstanding the provisions of section 124.506 , if
more than ten pounds of marijuana or more than one pound of any
other controlled substance is seized as a result of a violation
of this chapter , the law enforcement agency responsible for
retaining the seized controlled substance may destroy the
seized controlled substance if the law enforcement agency
retains at least ten pounds of the marijuana seized or at least
one pound of any other controlled substance seized for evidence
purposes.
b. Paragraph “a” does not apply to hemp or a hemp product
excluded from schedule I of controlled substances as provided
in section 124.204, subsection 7.
Sec. 29. Section 189.1, subsection 1, Code 2019, is amended
to read as follows:
1. “Article” means food, commercial feed, agricultural
seed, commercial fertilizer, drug, pesticide, hemp or a hemp
product, and paint, in the sense in which they are defined in
the various provisions of this subtitle.
Sec. 30. NEW SECTION . 317.1D Exemption —— Iowa hemp Act.
This chapter does not apply to a plant or any part of the

Senate File 599, p. 24
plant qualifying as hemp, if the hemp is produced on a crop
site regulated under chapter 204.
Sec. 31. NEW SECTION . 453B.17 Exemption —— Iowa hemp Act ——
hemp and hemp products.
This chapter does not apply to any of the following:
1. Hemp that is hemp seed delivered for planting at a
licensed crop site, or hemp that is or was produced at the
site, by a person operating under a hemp license issued by the
department of agriculture and land stewardship in accordance
with the provisions of chapter 204.
2. Hemp that was produced in another state in accordance
with the federal hemp law and other applicable law.
3. A hemp product as provided in chapter 204.
Sec. 32. NEW SECTION . 453B.18 Exemption —— Iowa hemp Act
—— negligent violation program.
Notwithstanding any provision of this chapter to the
contrary, a person shall not be guilty of an offense under this
chapter for producing or possessing the plant cannabis, if all
of the following apply:
1. The person holds a valid hemp license issued by the
department of agriculture and land stewardship as provided in
chapter 204.
2. The plant is or was produced on the licensee’s crop site
as provided in chapter 204.
3. The offense arises out of a test of a sample of plants
that are part of a crop produced on the licensee’s crop site
and the test indicates that the sample does not qualify as
hemp under section 204.8 and it does not exceed a maximum
concentration of two percent delta-9 tetrahydrocannabinol on a
dry weight basis.
4. The licensee is participating in or has successfully
completed the negligent violation program that applies to the
licensee’s crop site described in subsection 3 if such program
is established by the department of agriculture and land
stewardship pursuant to section 204.15.
Sec. 33. CONTINGENT EFFECTIVE DATE. The amendments to
sections 29B.107A, 80.9, 124.204, 124.401, 124.410, 124.411,
124.506A, and 189.1, and new sections 124.401H, 317.1D,
453B.17, and 453B.18, as enacted in this division of this

Senate File 599, p. 25
Act, shall become effective upon the date of implementation
of chapter 204 as described in subsection 1 of the section
providing for the contingent implementation of that chapter, as
enacted in division I of this Act.
______________________________ ______________________________
CHARLES SCHNEIDER LINDA UPMEYER
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 599, Eighty-eighth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2019 ______________________________
KIM REYNOLDS
Governor