House File 2045 - Introduced HOUSE FILE 2045 BY ISENHART A BILL FOR An Act relating to acreage limitations for the production of 1 hemp, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5133YH (3) 88 da/ns

H.F. 2045 Section 1. Section 204.2, subsection 3, Code 2020, is 1 amended to read as follows: 2 3. “Crop site” or “site” means a single contiguous parcel 3 of agricultural land suitable for the planting, growing, or 4 harvesting of hemp , if the parcel does not exceed forty acres . 5 Sec. 2. Section 204.4, subsection 6, Code 2020, is amended 6 to read as follows: 7 6. A person may hold any number of licenses at the same 8 time. However, the 9 a. Except as provided in paragraph “b” , a person shall not 10 hold a legal or equitable interest in a licensed crop site, if 11 the total number of acres of all licensed crop sites in which 12 the person holds all such interests equals more than forty 13 acres. 14 b. The department may waive the requirement described in 15 paragraph “a” , if it determines when reviewing the person’s 16 license application that all of the following apply: 17 (1) The person has entered into a contract for the sale of 18 at least ninety percent of the hemp expected to be harvested on 19 the crop site as described in the application. 20 (2) Any harvested hemp sold pursuant to the contract 21 provided in subparagraph (1) is used as follows: 22 (a) For fiber or grain. 23 (b) To produce seeds, if such seeds are used for planting 24 and any harvested hemp is used for seed production, fiber, or 25 grain. 26 c. The department may require that a person applying for 27 a license provide any supporting materials as required by the 28 department to approve the application. 29 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 30 importance, takes effect upon enactment. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 ACREAGE LIMITATION —— EXCEPTION. This bill amends Code 35 -1- LSB 5133YH (3) 88 da/ns 1/ 2

H.F. 2045 chapter 204, the Iowa Hemp Act (IHA) (Code section 204.1), 1 which in part requires the department of agriculture and land 2 stewardship (DALS) to regulate the production of hemp. Hemp is 3 defined as a species of cannabis (sativa L.) having a maximum 4 concentration of delta-9 tetrahydrocannabinol that does not 5 exceed three-tenths of 1 percent (Code section 204.2). DALS 6 is required to establish and administer a process to issue 7 and renew one-year hemp licenses to qualified producers (Code 8 section 204.4). DALS may issue any number of licenses to a 9 qualified producer so long as all licensed crop sites do not 10 exceed a total of 40 acres. The bill allows DALS to waive 11 the requirement limiting acres reserved for production, if at 12 the time of application, it determines that the applicant has 13 entered into a contract for the sale of at least 90 percent of 14 the hemp expected to be harvested at the applicant’s crop site. 15 In addition, the harvested hemp sold pursuant to the contract 16 must be used for: (1) grain or fiber, or (2) seed to grow hemp 17 for seed production, grain, or fiber. DALS may require that 18 the applicant provide any supporting materials to support the 19 application. 20 BACKGROUND. The IHA must comply with the relevant sections 21 of the federal Agriculture Improvement Act of 2018, Pub. 22 L. No. 115-334, that allows states and tribes to assume 23 primary regulatory authority over the production of hemp by 24 submitting a plan for approval by the United States department 25 of agriculture (USDA). DALS is required to prepare the state 26 plan, any amended state plan, or amendment to an approved 27 state plan, by adopting rules pursuant to Code chapter 17A 28 (Code section 204.3). The USDA has published interim rules to 29 implement the federal legislation (7 C.F.R. pt. 990). The USDA 30 has neither approved nor disapproved Iowa’s state plan. 31 EFFECTIVE DATE. The bill takes effect upon enactment. 32 -2- LSB 5133YH (3) 88 da/ns 2/ 2