Senate File 2110 - Introduced SENATE FILE 2110 BY SHIPLEY 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 5663XS (2) 89 da/ns
S.F. 2110 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 person shall not hold a legal or equitable 9 interest in a licensed crop site, if the total number of acres 10 of all licensed crop sites in which the person holds all such 11 interests equals more than forty acres. 12 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 13 importance, takes effect upon enactment. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 ACREAGE LIMITATION —— EXCEPTION. This bill amends Code 18 chapter 204, the Iowa Hemp Act (IHA), which in part requires 19 the department of agriculture and land stewardship (DALS) to 20 regulate the production of hemp. Hemp is defined as a species 21 of cannabis (sativa L.) having a maximum concentration of 22 delta-9 tetrahydrocannabinol that does not exceed three-tenths 23 of 1 percent on a dry weight basis (Code section 204.2). DALS 24 is required to establish and administer a process to issue 25 and renew one-year hemp licenses to qualified producers (Code 26 section 204.4). DALS may issue any number of licenses to a 27 qualified producer so long as all licensed crop sites do not 28 exceed a total of 40 acres. Until June 30, 2022, a qualified 29 producer is subject to an interim license fee based on the 30 size of the licensed crop site, equaling not more than a base 31 amount plus $5 per acre. The base amount is $500 for a licensed 32 crop site that is five acres or less; $750 for a licensed crop 33 site that is more than five acres but not more than 10 acres; 34 and $1,000 for each licensed crop site that is more than 10 35 -1- LSB 5663XS (2) 89 da/ns 1/ 2
S.F. 2110 acres. During the interim period, the producer is also subject 1 to an annual base inspection and official test fee of not more 2 than $1,000. On and after June 30, 2022, permanent license 3 and inspection fees are established by rules adopted by DALS 4 for each 12-month period based on the costs of administering 5 and enforcing the IHA which may be based on the size of a 6 licensed crop site (Code section 204.5). The bill eliminates 7 the requirements that (1) a licensed crop site must be 40 acres 8 or less and (2) the total number of acres of all licensed crop 9 sites must be 40 acres or less. 10 BACKGROUND. The IHA must comply with the relevant sections 11 of the federal Agriculture Improvement Act of 2018, Pub. L. 12 No. 115-334, that allows states and tribes to assume primary 13 regulatory authority over the production of hemp by submitting 14 a plan for approval by the United States department of 15 agriculture (USDA). Effective April 8, 2020, the secretary of 16 agriculture published an advisory notice that the state plan 17 for the production of hemp was certified by the United States 18 department of agriculture in IAB Vol. XLII, No. 21 (4/8/20), 19 p. 2630. 20 EFFECTIVE DATE. The bill takes effect upon enactment. 21 -2- LSB 5663XS (2) 89 da/ns 2/ 2