HF 2380 (LSB 5928HV (2) 89)

HOUSE FILE 2380

BY  COMMITTEE ON AGRICULTURE

(SUCCESSOR TO HF 2088)

A BILL FOR

An Act relating to acreage limitations for the production of hemp, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 204.2, subsection 5, Code 2022, is amended to read as follows:
   5.  “Crop site” or “site” means a single contiguous parcel tract of agricultural land suitable for the planting, growing, or harvesting of hemp, if the parcel tract does not exceed forty one hundred sixty acres subject to the limitations in section 204.4.
    Sec. 2.  Section 204.4, subsection 2, paragraphs c and d, Code 2022, are amended to read as follows:
   c.  The number of crop acres to be used for hemp production, including the number of acres to be used to produce hemp for the purpose of extracting the compound cannabidiol.
   d.  The name of the hemp variety to be produced on each crop site.
    Sec. 3.  Section 204.4, subsection 6, Code 2022, is amended to read as follows:
   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 any such interest equals more than one hundred sixty acres. Of the total number of acres in which the person holds an interest as described in this subsection, not more than forty acres shall be used to produce hemp for the purpose of extracting the compound cannabidiol by the applicant or another person.
    Sec. 4.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   ACREAGE LIMITATION —— EXCEPTION. This bill amends Code chapter 204, the Iowa Hemp Act (IHA), which in part requires the department of agriculture and land stewardship (DALS) to regulate the production of hemp. Hemp is defined as a species of cannabis (sativa L.) having a maximum concentration of delta-9 tetrahydrocannabinol that does not exceed three-tenths of 1 percent on a dry weight basis (Code section 204.2). The IHA does not specifically address the presence in hemp of the nonnarcotic compound cannabidiol. DALS is required to establish and administer a process to issue and renew one-year hemp licenses to qualified producers (Code section 204.4). Until June 30, 2022, a qualified producer is subject to an interim license fee based on the size of the licensed crop site, equaling not more than a base amount plus $5 per acre. The base amount is $500 for a licensed crop site that is five acres or less; $750 for a licensed crop site that is more than five acres but not more than 10 acres; and $1,000 for each licensed crop site that is more than 10 acres. During the interim period, the producer is also subject to an annual base inspection and official test fee of not more than $1,000. On and after June 30, 2022, permanent license and inspection fees are established by rules adopted by DALS for each 12-month period based on the costs of administering and enforcing the IHA which may be based on the size of a licensed crop site (Code section 204.5). Two compatible acreage limits apply: (1) a licensed crop site must be 40 acres or less and (2) the total number of acres of all licensed crop sites must be 40 acres or less. The bill increases these limits to 160 acres with the condition that not more than 40 total acres can be used to produce hemp for the purpose of extracting cannabidiol (Code sections 204.2 and 204.4).
   BACKGROUND. The IHA must comply with the relevant sections of the federal Agriculture Improvement Act of 2018, Pub. L. No. 115-334, that allows states and tribes to assume primary regulatory authority over the production of hemp by submitting a plan for approval by the United States department of agriculture (USDA). Effective April 8, 2020, the secretary of agriculture published an advisory notice that the state plan for the production of hemp was certified by the USDA in IAB Vol. XLII, No. 21 (4/8/20), p. 2630. 
   EFFECTIVE DATE. The bill takes effect upon enactment.