House File 2088 - 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 one
7   Sec. 2.  Section 204.4, subsection 6, Code 2022, is amended
8to read as follows:
   96.  A person may hold any number of licenses at the same
10time. However, the person shall not hold a legal or equitable
11interest in a licensed crop site, if the total number of acres
12of all licensed crop sites in which the person holds all such
13interests equals more than forty one hundred acres.
14   Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate
15importance, takes effect upon enactment.
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
   19ACREAGE LIMITATION — EXCEPTION. This bill amends Code
20chapter 204, the Iowa Hemp Act (IHA), which in part requires
21the department of agriculture and land stewardship (DALS) to
22regulate the production of hemp. Hemp is defined as a species
23of cannabis (sativa L.)having a maximum concentration of
24delta-9 tetrahydrocannabinol that does not exceed three-tenths
25of 1 percent on a dry weight basis (Code section 204.2). DALS
26is required to establish and administer a process to issue
27and renew one-year hemp licenses to qualified producers (Code
28section 204.4). Until June 30, 2022, a qualified producer is
29subject to an interim license fee based on the size of the
30licensed crop site, equaling not more than a base amount plus
31$5 per acre. The base amount is $500 for a licensed crop site
32that is five acres or less; $750 for a licensed crop site that
33is more than five acres but not more than 10 acres; and $1,000
34for each licensed crop site that is more than 10 acres. During
35the interim period, the producer is also subject to an annual
-1-1base inspection and official test fee of not more than $1,000.
2On and after June 30, 2022, permanent license and inspection
3fees are established by rules adopted by DALS for each 12-month
4period based on the costs of administering and enforcing the
5IHA which may be based on the size of a licensed crop site (Code
6section 204.5). Two compatible acreage limits apply: (1) a
7licensed crop site must be 40 acres or less and (2) the total
8number of acres of all licensed crop sites must be 40 acres or
9less. The bill increases these limits to 100 acres (amended
10Code sections 204.2 and 204.4).
   11BACKGROUND. The IHA must comply with the relevant sections
12of the federal Agriculture Improvement Act of 2018, Pub.L.
13No.115-334, that allows states and tribes to assume primary
14regulatory authority over the production of hemp by submitting
15a plan for approval by the United States department of
16agriculture (USDA). Effective April 8, 2020, the secretary of
17agriculture published an advisory notice that the state plan
18for the production of hemp was certified by the United States
19department of agriculture in IAB Vol.XLII, No.21 (4/8/20),
   21EFFECTIVE DATE. The bill takes effect upon enactment.