House File 2045 - IntroducedA Bill ForAn Act 1relating to acreage limitations for the production of
2hemp, and including effective date provisions.
1   Section 1.  Section 204.2, subsection 3, Code 2020, is
2amended to read as follows:
   33.  “Crop site” or “site” means a single contiguous parcel
4of agricultural land suitable for the planting, growing, or
5harvesting of hemp, if the parcel does not exceed forty acres.
6   Sec. 2.  Section 204.4, subsection 6, Code 2020, is amended
7to read as follows:
   86.  A person may hold any number of licenses at the same
9time. However, the
   10a.   Except as provided in paragraph “b”, aperson shall not
11hold a legal or equitable interest in a licensed crop site, if
12the total number of acres of all licensed crop sites in which
13the person holds all such interests equals more than forty
   15b.  The department may waive the requirement described in
16paragraph “a”, if it determines when reviewing the person’s
17license application that all of the following apply:
   18(1)  The person has entered into a contract for the sale of
19at least ninety percent of the hemp expected to be harvested on
20the crop site as described in the application.
   21(2)  Any harvested hemp sold pursuant to the contract
22provided in subparagraph (1) is used as follows:
   23(a)  For fiber or grain.
   24(b)  To produce seeds, if such seeds are used for planting
25and any harvested hemp is used for seed production, fiber, or
   27c.  The department may require that a person applying for
28a license provide any supporting materials as required by the
29department to approve the application.
30   Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate
31importance, takes effect upon enactment.
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
   35ACREAGE LIMITATION — EXCEPTION. This bill amends Code
-1-1chapter 204, the Iowa Hemp Act (IHA) (Code section 204.1),
2which in part requires the department of agriculture and land
3stewardship (DALS) to regulate the production of hemp. Hemp is
4defined as a species of cannabis (sativa L.)having a maximum
5concentration of delta-9 tetrahydrocannabinol that does not
6exceed three-tenths of 1 percent (Code section 204.2). DALS
7is required to establish and administer a process to issue
8and renew one-year hemp licenses to qualified producers (Code
9section 204.4). DALS may issue any number of licenses to a
10qualified producer so long as all licensed crop sites do not
11exceed a total of 40 acres. The bill allows DALS to waive
12the requirement limiting acres reserved for production, if at
13the time of application, it determines that the applicant has
14entered into a contract for the sale of at least 90 percent of
15the hemp expected to be harvested at the applicant’s crop site.
16In addition, the harvested hemp sold pursuant to the contract
17must be used for: (1) grain or fiber, or (2) seed to grow hemp
18for seed production, grain, or fiber. DALS may require that
19the applicant provide any supporting materials to support the
   21BACKGROUND. The IHA must comply with the relevant sections
22of the federal Agriculture Improvement Act of 2018, Pub.
23L.No.115-334, that allows states and tribes to assume
24primary regulatory authority over the production of hemp by
25submitting a plan for approval by the United States department
26of agriculture (USDA). DALS is required to prepare the state
27plan, any amended state plan, or amendment to an approved
28state plan, by adopting rules pursuant to Code chapter 17A
29(Code section 204.3). The USDA has published interim rules to
30implement the federal legislation (7 The USDA
31has neither approved nor disapproved Iowa’s state plan.
   32EFFECTIVE DATE. The bill takes effect upon enactment.