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House File 2380 - IntroducedA Bill ForAn Act 1relating to acreage limitations for the production of
2hemp, and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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
4 tract of agricultural land suitable for the planting, growing,
5or harvesting of hemp, if the parcel tract does not exceed
6forty one hundred sixty acres subject to the limitations in
7section 204.4.
8 Sec. 2. Section 204.4, subsection 2, paragraphs c and d,
9Code 2022, are amended to read as follows:
10c. The number of crop acres to be used for hemp production,
11including the number of acres to be used to produce hemp for
12the purpose of extracting the compound cannabidiol.
13d. The name of the hemp variety to be produced on each crop
14site.
15 Sec. 3. Section 204.4, subsection 6, Code 2022, is amended
16to read as follows:
176. A person may hold any number of licenses at the same
18time. However, the person shall not hold a legal or equitable
19interest in a licensed crop site, if the total number of acres
20of all licensed crop sites in which the person holds all such
21interests any such interest equals more than one hundred sixty
22acres. Of the total number of acres in which the person holds
23an interest as described in this subsection, not more than
24 forty acres shall be used to produce hemp for the purpose of
25extracting the compound cannabidiol by the applicant or another
26person.
27 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate
28importance, takes effect upon enactment.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32ACREAGE LIMITATION — EXCEPTION. This bill amends Code
33chapter 204, the Iowa Hemp Act (IHA), which in part requires
34the department of agriculture and land stewardship (DALS) to
35regulate the production of hemp. Hemp is defined as a species
-1-1of cannabis (sativa L.)having a maximum concentration of
2delta-9 tetrahydrocannabinol that does not exceed three-tenths
3of 1 percent on a dry weight basis (Code section 204.2). The
4IHA does not specifically address the presence in hemp of
5the nonnarcotic compound cannabidiol. DALS is required to
6establish and administer a process to issue and renew one-year
7hemp licenses to qualified producers (Code section 204.4).
8Until June 30, 2022, a qualified producer is subject to an
9interim license fee based on the size of the licensed crop
10site, equaling not more than a base amount plus $5 per acre.
11The base amount is $500 for a licensed crop site that is five
12acres or less; $750 for a licensed crop site that is more than
13five acres but not more than 10 acres; and $1,000 for each
14licensed crop site that is more than 10 acres. During the
15interim period, the producer is also subject to an annual base
16inspection and official test fee of not more than $1,000. On
17and after June 30, 2022, permanent license and inspection fees
18are established by rules adopted by DALS for each 12-month
19period based on the costs of administering and enforcing the
20IHA which may be based on the size of a licensed crop site (Code
21section 204.5). Two compatible acreage limits apply: (1) a
22licensed crop site must be 40 acres or less and (2) the total
23number of acres of all licensed crop sites must be 40 acres
24or less. The bill increases these limits to 160 acres with
25the condition that not more than 40 total acres can be used to
26produce hemp for the purpose of extracting cannabidiol (Code
27sections 204.2 and 204.4).
28BACKGROUND. The IHA must comply with the relevant sections
29of the federal Agriculture Improvement Act of 2018, Pub.L.
30No.115-334, that allows states and tribes to assume primary
31regulatory authority over the production of hemp by submitting
32a plan for approval by the United States department of
33agriculture (USDA). Effective April 8, 2020, the secretary of
34agriculture published an advisory notice that the state plan
35for the production of hemp was certified by the USDA in IAB
-2-1Vol.XLII, No.21 (4/8/20), p.2630.
2EFFECTIVE DATE. The bill takes effect upon enactment.
-3-da/ns
2hemp, and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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
4 tract of agricultural land suitable for the planting, growing,
5or harvesting of hemp, if the parcel tract does not exceed
6forty one hundred sixty acres subject to the limitations in
7section 204.4.
8 Sec. 2. Section 204.4, subsection 2, paragraphs c and d,
9Code 2022, are amended to read as follows:
10c. The number of crop acres to be used for hemp production,
11including the number of acres to be used to produce hemp for
12the purpose of extracting the compound cannabidiol.
13d. The name of the hemp variety to be produced on each crop
14site.
15 Sec. 3. Section 204.4, subsection 6, Code 2022, is amended
16to read as follows:
176. A person may hold any number of licenses at the same
18time. However, the person shall not hold a legal or equitable
19interest in a licensed crop site, if the total number of acres
20of all licensed crop sites in which the person holds all such
21interests any such interest equals more than one hundred sixty
22acres. Of the total number of acres in which the person holds
23an interest as described in this subsection, not more than
24 forty acres shall be used to produce hemp for the purpose of
25extracting the compound cannabidiol by the applicant or another
26person.
27 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate
28importance, takes effect upon enactment.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32ACREAGE LIMITATION — EXCEPTION. This bill amends Code
33chapter 204, the Iowa Hemp Act (IHA), which in part requires
34the department of agriculture and land stewardship (DALS) to
35regulate the production of hemp. Hemp is defined as a species
-1-1of cannabis (sativa L.)having a maximum concentration of
2delta-9 tetrahydrocannabinol that does not exceed three-tenths
3of 1 percent on a dry weight basis (Code section 204.2). The
4IHA does not specifically address the presence in hemp of
5the nonnarcotic compound cannabidiol. DALS is required to
6establish and administer a process to issue and renew one-year
7hemp licenses to qualified producers (Code section 204.4).
8Until June 30, 2022, a qualified producer is subject to an
9interim license fee based on the size of the licensed crop
10site, equaling not more than a base amount plus $5 per acre.
11The base amount is $500 for a licensed crop site that is five
12acres or less; $750 for a licensed crop site that is more than
13five acres but not more than 10 acres; and $1,000 for each
14licensed crop site that is more than 10 acres. During the
15interim period, the producer is also subject to an annual base
16inspection and official test fee of not more than $1,000. On
17and after June 30, 2022, permanent license and inspection fees
18are established by rules adopted by DALS for each 12-month
19period based on the costs of administering and enforcing the
20IHA which may be based on the size of a licensed crop site (Code
21section 204.5). Two compatible acreage limits apply: (1) a
22licensed crop site must be 40 acres or less and (2) the total
23number of acres of all licensed crop sites must be 40 acres
24or less. The bill increases these limits to 160 acres with
25the condition that not more than 40 total acres can be used to
26produce hemp for the purpose of extracting cannabidiol (Code
27sections 204.2 and 204.4).
28BACKGROUND. The IHA must comply with the relevant sections
29of the federal Agriculture Improvement Act of 2018, Pub.L.
30No.115-334, that allows states and tribes to assume primary
31regulatory authority over the production of hemp by submitting
32a plan for approval by the United States department of
33agriculture (USDA). Effective April 8, 2020, the secretary of
34agriculture published an advisory notice that the state plan
35for the production of hemp was certified by the USDA in IAB
-2-1Vol.XLII, No.21 (4/8/20), p.2630.
2EFFECTIVE DATE. The bill takes effect upon enactment.
-3-da/ns