House File 2070 - Introduced HOUSE FILE 2070 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 5206YH (2) 89 da/ns
H.F. 2070 Section 1. Section 204.2, subsection 5, Code 2022, is 1 amended to read as follows: 2 5. “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 2022, 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 prohibition 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 5206YH (2) 89 da/ns 1/ 2
H.F. 2070 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 3 is defined as a species of cannabis (sativa L.) having a 4 maximum concentration of tetrahydrocannabinol that does not 5 exceed three-tenths of 1 percent on a dry weight basis (Code 6 section 204.2). DALS is required to establish and administer a 7 process to issue and renew one-year hemp licenses to qualified 8 producers (Code section 204.4). DALS may issue any number of 9 licenses to a qualified producer so long as all licensed crop 10 sites do not exceed a total of 40 acres. The bill allows DALS 11 to waive this limitation on acres reserved for production if, 12 at the time of application, it determines that the applicant 13 has entered into a contract for the sale of at least 90 percent 14 of the hemp expected to be harvested at the applicant’s crop 15 site. In addition, the harvested hemp sold pursuant to the 16 contract must be used for: (1) grain or fiber, or (2) seed 17 to grow hemp for seed production, grain, or fiber. DALS may 18 require that the applicant provide any supporting materials 19 necessary to approve the application. 20 BACKGROUND. The IHA must comply with the relevant sections 21 of the federal Agriculture Improvement Act of 2018, Pub. L. 22 No. 115-334, that allows states and tribes to assume primary 23 regulatory authority over the production of hemp by submitting 24 a plan for approval by the United States department of 25 agriculture (USDA). Effective April 8, 2020, the secretary of 26 agriculture published an advisory notice that the state plan 27 for the production of hemp was certified by the USDA in IAB 28 Vol. XLII, No. 21 (4/8/20), p. 2630. 29 EFFECTIVE DATE. The bill takes effect upon enactment. 30 -2- LSB 5206YH (2) 89 da/ns 2/ 2