House File 2380 - Introduced HOUSE FILE 2380 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HF 2088) 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 5928HV (2) 89 da/ns

H.F. 2380 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 tract of agricultural land suitable for the planting, growing, 4 or harvesting of hemp, if the parcel tract does not exceed 5 forty one hundred sixty acres subject to the limitations in 6 section 204.4 . 7 Sec. 2. Section 204.4, subsection 2, paragraphs c and d, 8 Code 2022, are amended to read as follows: 9 c. The number of crop acres to be used for hemp production , 10 including the number of acres to be used to produce hemp for 11 the purpose of extracting the compound cannabidiol . 12 d. The name of the hemp variety to be produced on each crop 13 site . 14 Sec. 3. Section 204.4, subsection 6, Code 2022, is amended 15 to read as follows: 16 6. A person may hold any number of licenses at the same 17 time. However, the person shall not hold a legal or equitable 18 interest in a licensed crop site, if the total number of acres 19 of all licensed crop sites in which the person holds all such 20 interests any such interest equals more than one hundred sixty 21 acres. Of the total number of acres in which the person holds 22 an interest as described in this subsection, not more than 23 forty acres shall be used to produce hemp for the purpose of 24 extracting the compound cannabidiol by the applicant or another 25 person . 26 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate 27 importance, takes effect upon enactment. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 ACREAGE LIMITATION —— EXCEPTION. This bill amends Code 32 chapter 204, the Iowa Hemp Act (IHA), which in part requires 33 the department of agriculture and land stewardship (DALS) to 34 regulate the production of hemp. Hemp is defined as a species 35 -1- LSB 5928HV (2) 89 da/ns 1/ 3

H.F. 2380 of cannabis (sativa L.) having a maximum concentration of 1 delta-9 tetrahydrocannabinol that does not exceed three-tenths 2 of 1 percent on a dry weight basis (Code section 204.2). The 3 IHA does not specifically address the presence in hemp of 4 the nonnarcotic compound cannabidiol. DALS is required to 5 establish and administer a process to issue and renew one-year 6 hemp licenses to qualified producers (Code section 204.4). 7 Until June 30, 2022, a qualified producer is subject to an 8 interim license fee based on the size of the licensed crop 9 site, equaling not more than a base amount plus $5 per acre. 10 The base amount is $500 for a licensed crop site that is five 11 acres or less; $750 for a licensed crop site that is more than 12 five acres but not more than 10 acres; and $1,000 for each 13 licensed crop site that is more than 10 acres. During the 14 interim period, the producer is also subject to an annual base 15 inspection and official test fee of not more than $1,000. On 16 and after June 30, 2022, permanent license and inspection fees 17 are established by rules adopted by DALS for each 12-month 18 period based on the costs of administering and enforcing the 19 IHA which may be based on the size of a licensed crop site (Code 20 section 204.5). Two compatible acreage limits apply: (1) a 21 licensed crop site must be 40 acres or less and (2) the total 22 number of acres of all licensed crop sites must be 40 acres 23 or less. The bill increases these limits to 160 acres with 24 the condition that not more than 40 total acres can be used to 25 produce hemp for the purpose of extracting cannabidiol (Code 26 sections 204.2 and 204.4). 27 BACKGROUND. The IHA must comply with the relevant sections 28 of the federal Agriculture Improvement Act of 2018, Pub. L. 29 No. 115-334, that allows states and tribes to assume primary 30 regulatory authority over the production of hemp by submitting 31 a plan for approval by the United States department of 32 agriculture (USDA). Effective April 8, 2020, the secretary of 33 agriculture published an advisory notice that the state plan 34 for the production of hemp was certified by the USDA in IAB 35 -2- LSB 5928HV (2) 89 da/ns 2/ 3

H.F. 2380 Vol. XLII, No. 21 (4/8/20), p. 2630. 1 EFFECTIVE DATE. The bill takes effect upon enactment. 2 -3- LSB 5928HV (2) 89 da/ns 3/ 3