House File 2070 - 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 5, Code 2022, is
2amended to read as follows:
   35.  “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 2022, 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 prohibition 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
4is defined as a species of cannabis (sativa L.)having a
5maximum concentration of tetrahydrocannabinol that does not
6exceed three-tenths of 1 percent on a dry weight basis (Code
7section 204.2). DALS is required to establish and administer a
8process to issue and renew one-year hemp licenses to qualified
9producers (Code section 204.4). DALS may issue any number of
10licenses to a qualified producer so long as all licensed crop
11sites do not exceed a total of 40 acres. The bill allows DALS
12to waive this limitation on acres reserved for production if,
13at the time of application, it determines that the applicant
14has entered into a contract for the sale of at least 90 percent
15of the hemp expected to be harvested at the applicant’s crop
16site. In addition, the harvested hemp sold pursuant to the
17contract must be used for: (1) grain or fiber, or (2) seed
18to grow hemp for seed production, grain, or fiber. DALS may
19require that the applicant provide any supporting materials
20necessary to approve the application.
   21BACKGROUND. The IHA must comply with the relevant sections
22of the federal Agriculture Improvement Act of 2018, Pub.L.
23No.115-334, that allows states and tribes to assume primary
24regulatory authority over the production of hemp by submitting
25a plan for approval by the United States department of
26agriculture (USDA). Effective April 8, 2020, the secretary of
27agriculture published an advisory notice that the state plan
28for the production of hemp was certified by the USDA in IAB
29Vol.XLII, No.21 (4/8/20), p.2630.
   30EFFECTIVE DATE. The bill takes effect upon enactment.