House File 2334 - Introduced HOUSE FILE 2334 BY STAED (COMPANION TO SF 2161 BY HOGG) A BILL FOR An Act relating to activities associated with agriculture, 1 natural resources, and the environment, including by 2 increasing the sales and use tax rates, transferring moneys 3 to the natural resources and outdoor recreation trust 4 fund, funding certain government entities and initiatives, 5 providing for an Iowa water policy, establishing water 6 quality and water management objectives, goals, and 7 benchmarks, regulating confinement feeding operations, 8 making appropriations, and including effective date and 9 applicability provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 TLSB 5547YH (2) 87 da/rj

H.F. 2334 DIVISION I 1 NATURAL RESOURCES AND OUTDOOR RECREATION ACT 2 Section 1. Section 423.2, subsection 1, unnumbered 3 paragraph 1, Code 2018, is amended to read as follows: 4 There is imposed a tax of six and three-eighths percent upon 5 the sales price of all sales of tangible personal property, 6 consisting of goods, wares, or merchandise, sold at retail in 7 the state to consumers or users except as otherwise provided 8 in this subchapter . 9 Sec. 2. Section 423.2, subsections 2 and 3, Code 2018, are 10 amended to read as follows: 11 2. A tax of six and three-eighths percent is imposed upon 12 the sales price of the sale or furnishing of gas, electricity, 13 water, heat, pay television service, and communication service, 14 including the sales price from such sales by any municipal 15 corporation or joint water utility furnishing gas, electricity, 16 water, heat, pay television service, and communication service 17 to the public in its proprietary capacity, except as otherwise 18 provided in this subchapter , when sold at retail in the state 19 to consumers or users. 20 3. A tax of six and three-eighths percent is imposed upon 21 the sales price of all sales of tickets or admissions to places 22 of amusement, fairs, and athletic events except those of 23 elementary and secondary educational institutions. A tax of 24 six and three-eighths percent is imposed on the sales price of 25 an entry fee or like charge imposed solely for the privilege of 26 participating in an activity at a place of amusement, fair, or 27 athletic event unless the sales price of tickets or admissions 28 charges for observing the same activity are taxable under this 29 subchapter . A tax of six and three-eighths percent is imposed 30 upon that part of private club membership fees or charges paid 31 for the privilege of participating in any athletic sports 32 provided club members. 33 Sec. 3. Section 423.2, subsection 4, paragraph a, Code 2018, 34 is amended to read as follows: 35 -1- LSB 5547YH (2) 87 da/rj 1/ 23

H.F. 2334 a. A tax of six and three-eighths percent is imposed upon 1 the sales price derived from the operation of all forms of 2 amusement devices and games of skill, games of chance, raffles, 3 and bingo games as defined in chapter 99B , and card game 4 tournaments conducted under section 99B.27 , that are operated 5 or conducted within the state, the tax to be collected from 6 the operator in the same manner as for the collection of taxes 7 upon the sales price of tickets or admission as provided in 8 this section . Nothing in this subsection shall legalize any 9 games of skill or chance or slot-operated devices which are now 10 prohibited by law. 11 Sec. 4. Section 423.2, subsection 5, Code 2018, is amended 12 to read as follows: 13 5. There is imposed a tax of six and three-eighths percent 14 upon the sales price from the furnishing of services as defined 15 in section 423.1 . 16 Sec. 5. Section 423.2, subsection 7, paragraph a, 17 unnumbered paragraph 1, Code 2018, is amended to read as 18 follows: 19 A tax of six and three-eighths percent is imposed upon the 20 sales price from the sales, furnishing, or service of solid 21 waste collection and disposal service. 22 Sec. 6. Section 423.2, subsection 8, paragraph a, Code 2018, 23 is amended to read as follows: 24 a. A tax of six and three-eighths percent is imposed on 25 the sales price from sales of bundled transactions. For the 26 purposes of this subsection , a “bundled transaction” is the 27 retail sale of two or more distinct and identifiable products, 28 except real property and services to real property, which 29 are sold for one nonitemized price. A “bundled transaction” 30 does not include the sale of any products in which the sales 31 price varies, or is negotiable, based on the selection by the 32 purchaser of the products included in the transaction. 33 Sec. 7. Section 423.2, subsection 9, Code 2018, is amended 34 to read as follows: 35 -2- LSB 5547YH (2) 87 da/rj 2/ 23

H.F. 2334 9. A tax of six and three-eighths percent is imposed upon 1 the sales price from any mobile telecommunications service, 2 including all paging services, that this state is allowed 3 to tax pursuant to the provisions of the federal Mobile 4 Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. 5 §116 et seq. For purposes of this subsection , taxes on mobile 6 telecommunications service, as defined under the federal Mobile 7 Telecommunications Sourcing Act that are deemed to be provided 8 by the customer’s home service provider, shall be paid to 9 the taxing jurisdiction whose territorial limits encompass 10 the customer’s place of primary use, regardless of where the 11 mobile telecommunications service originates, terminates, 12 or passes through and shall in all other respects be taxed 13 in conformity with the federal Mobile Telecommunications 14 Sourcing Act. All other provisions of the federal Mobile 15 Telecommunications Sourcing Act are adopted by the state of 16 Iowa and incorporated into this subsection by reference. With 17 respect to mobile telecommunications service under the federal 18 Mobile Telecommunications Sourcing Act, the director shall, if 19 requested, enter into agreements consistent with the provisions 20 of the federal Act. 21 Sec. 8. Section 423.2, subsection 11, paragraph b, 22 subparagraph (2), Code 2018, is amended to read as follows: 23 (2) Transfer from the remaining revenues the amounts 24 required under Article VII, section 10, of the Constitution 25 of the State of Iowa to the natural resources and outdoor 26 recreation trust fund created in section 461.31 , if applicable . 27 Sec. 9. Section 423.2, subsection 14, Code 2018, is amended 28 to read as follows: 29 14. The sales tax rate of six and three-eighths percent is 30 reduced to five and three-eighths percent on January 1, 2030. 31 Sec. 10. Section 423.5, subsection 1, unnumbered paragraph 32 1, Code 2018, is amended to read as follows: 33 Except as provided in paragraph “c” , an excise tax at the 34 rate of six and three-eighths percent of the purchase price or 35 -3- LSB 5547YH (2) 87 da/rj 3/ 23

H.F. 2334 installed purchase price is imposed on the following: 1 Sec. 11. Section 423.5, subsection 5, Code 2018, is amended 2 to read as follows: 3 5. The use tax rate of six and three-eighths percent is 4 reduced to five and three-eighths percent on January 1, 2030. 5 Sec. 12. Section 423.43, subsection 1, paragraph b, Code 6 2018, is amended to read as follows: 7 b. Subsequent to the deposit into the general fund of the 8 state and after the transfer of such pursuant to paragraph “a” , 9 the department shall do the following in the order prescribed: 10 (1) Transfer the revenues collected under chapter 423B , the 11 department shall transfer one-sixth . 12 (2) Transfer fifteen and six thousand eight hundred 13 sixty-three ten-thousandths percent of such remaining revenues 14 to the secure an advanced vision for education fund created in 15 section 423F.2 . This paragraph subparagraph (2) is repealed 16 December 31, 2029. 17 Sec. 13. PURPOSE. The purpose of this division is to 18 provide for the implementation of Article VII, section 10, of 19 the Constitution of the State of Iowa by fully funding the 20 natural resources and outdoor recreation trust fund as created 21 in section 461.31, pursuant to Article VII, section 10, of the 22 Constitution of the State of Iowa. 23 Sec. 14. EFFECTIVE DATE. This division of this Act takes 24 effect on January 1, 2019. 25 DIVISION II 26 LEOPOLD CENTER FOR SUSTAINABLE AGRICULTURE —— APPROPRIATIONS 27 Sec. 15. NEW SECTION . 266.39D Leopold center for 28 sustainable agriculture —— appropriations. 29 There is appropriated from the general fund of the state 30 to Iowa state university, for the fiscal year beginning July 31 1, 2018, and for each subsequent fiscal year, the sum of one 32 million seven hundred fifty thousand dollars to be allocated 33 to the Leopold center for sustainable agriculture established 34 in section 266.39 to carry out the provisions described in 35 -4- LSB 5547YH (2) 87 da/rj 4/ 23

H.F. 2334 sections 266.39 through 266.39B. 1 DIVISION III 2 IOWA FLOOD CENTER —— APPROPRIATIONS 3 Sec. 16. NEW SECTION . 466C.2 Iowa flood center —— 4 appropriation. 5 There is appropriated from the general fund of the state to 6 the state board of regents, for the fiscal year beginning July 7 1, 2018, and for each subsequent fiscal year, the sum of one 8 million five hundred thousand dollars to be allocated to the 9 Iowa flood center established pursuant to section 466C.1. 10 DIVISION IV 11 FLOOD MITIGATION —— APPROPRIATION 12 Sec. 17. NEW SECTION . 418.10A Flood mitigation —— 13 appropriation. 14 There is appropriated from the general fund of the state to 15 the department of homeland security and emergency management, 16 for the fiscal year beginning July 1, 2018, and for each 17 subsequent fiscal year, the sum of four million dollars to 18 be deposited in the flood mitigation fund created in section 19 418.10. 20 DIVISION V 21 IOWA WATER POLICY ACT 22 Sec. 18. Section 266.39A, Code 2018, is amended to read as 23 follows: 24 266.39A Agricultural research. 25 1. Iowa state university of science and technology shall 26 conduct continuing agricultural research to provide information 27 about environmental all of the following: 28 a. Environmental and social impacts of agricultural research 29 on the small or family farm and information about population 30 trends and impact of the trends on Iowa agriculture , in 31 addition to research that may include the categories specified 32 in section 266.39B, subsection 2 . 33 b. The results of research to advance the Iowa water policy, 34 including the purposes described in the policy’s water quality 35 -5- LSB 5547YH (2) 87 da/rj 5/ 23

H.F. 2334 category and water management category as provided in section 1 466D.201. 2 2. The research shall include an agricultural land tenure 3 study conducted every five years to determine the ownership 4 of farmland, and to analyze ownership trends, using the 5 categories of land ownership defined in chapter 9H . The study 6 shall be conducted on the basis of regions established by 7 the university. A region shall be composed of not more than 8 twenty-three contiguous counties. 9 Sec. 19. NEW SECTION . 266.39C Leopold center for 10 sustainable agriculture —— Iowa water policy. 11 The Leopold center for sustainable agriculture shall 12 cooperate with the Iowa water commission created in section 13 466D.202 in order to advance the Iowa water policy as provided 14 in section 466D.201, including in assisting in evaluating and 15 conducting research regarding sustainable water initiatives as 16 provided in section 466D.303. 17 Sec. 20. Section 466B.3, subsection 4, Code 2018, is amended 18 by adding the following new paragraph: 19 NEW PARAGRAPH . m. The chairperson of the Iowa water 20 commission created in section 466D.202. 21 Sec. 21. NEW SECTION . 466C.2 Iowa water policy. 22 The Iowa flood center shall cooperate with the Iowa water 23 commission created in section 466D.202 in order to advance the 24 Iowa water policy as provided in section 466D.201, including 25 in assisting in evaluating and conducting research regarding 26 sustainable water initiatives as provided in section 466D.303. 27 Sec. 22. NEW SECTION . 466D.101 Short title. 28 This chapter may be known and shall be cited as the “Iowa 29 Water Policy Act” . 30 Sec. 23. NEW SECTION . 466D.102 Definitions. 31 As used in this section, unless the context otherwise 32 requires: 33 1. “Authority” means a watershed management authority 34 recognized pursuant to section 466B.22. 35 -6- LSB 5547YH (2) 87 da/rj 6/ 23

H.F. 2334 2. “Commission” means the Iowa water commission created in 1 section 466D.202. 2 3. “Comprehensive state water plan” or “plan” means the 3 document described in section 466D.302. 4 4. “Department” means the department of natural resources 5 as created in section 455A.2. 6 5. “Flood center” means the Iowa flood center established 7 pursuant to section 466C.1. 8 6. “High-quality water resource” means that part of a 9 surface water source or wetland that the department has 10 designated as any of the following: 11 a. A high-quality water (Class “HQ”) or a high-quality 12 resource water (Class “HQR”) according to 567 IAC ch. 61, in 13 effect on January 1, 2001. 14 b. A protected water area system, according to a state plan 15 adopted by the department in effect on January 1, 2001. 16 7. “Iowa water center” means the entity by that name housed 17 within Iowa state university of science and technology that is 18 overseen by the United States geological survey pursuant to 42 19 U.S.C. §10301 et seq. 20 8. “Leopold center” means the Leopold center for sustainable 21 agriculture created in section 266.39. 22 9. “Nutrient” means nitrogen or phosphorus. 23 10. “Sustainable water initiative” or “initiative” means 24 any program, policy, or practice that furthers the Iowa water 25 policy as provided in section 466D.201. 26 11. “Water resources” means surface waters, including waters 27 of the state as defined in section 455B.381 and groundwater as 28 defined in section 455E.2. 29 Sec. 24. NEW SECTION . 466D.201 Iowa water policy and water 30 quality objectives. 31 1. This state hereby adopts an Iowa water policy. 32 2. As its Iowa water policy, the state declares it is in 33 its vital interest to protect and secure water resources by 34 advancing water sustainability as provided in this chapter. 35 -7- LSB 5547YH (2) 87 da/rj 7/ 23

H.F. 2334 Water sustainability is divided into the following categories: 1 a. A water quality category, which includes the need to 2 preserve, restore, and enhance the quality of surface water and 3 groundwater in this state, protect human health, agricultural 4 productivity, and outdoor recreation, use, and enjoyment. 5 b. A water management category, which includes the need 6 to prepare for and confront the immediate and prolonged 7 consequences to human health and property caused by a flood or 8 drought, including by reducing the risk of property damages and 9 mitigating actual damages. 10 3. It is the objective of the state to reduce nitrogen and 11 phosphorus loads contributed to this state’s surface water 12 sources by the following schedule of cumulative percentages: 13 a. For the period beginning July 1, 2016, and ending June 14 30, 2024, twenty percent. 15 b. For the period beginning July 1, 2020, and ending June 16 30, 2028, thirty-two percent. 17 c. For the period beginning July 1, 2024, and ending June 18 30, 2033, forty-five percent. 19 4. The commission, in cooperation with the Leopold center, 20 shall develop methods and procedures required to measure 21 and assess water quality for water resources, and may adopt 22 additional objectives in the public interest. 23 Sec. 25. NEW SECTION . 466D.202 Iowa water commission —— 24 creation and membership. 25 1. An Iowa water commission is created in the department of 26 natural resources. Upon request, the commission shall receive 27 staffing assistance from the department of agriculture and land 28 stewardship described in chapter 159 and the department of 29 homeland security and emergency management created in section 30 29C.5. 31 2. The commission shall be composed of seven members who 32 shall be appointed by the governor. The members shall have 33 expertise and experience in areas of hydrology, engineering, 34 agriculture, soil conservation and water quality, environmental 35 -8- LSB 5547YH (2) 87 da/rj 8/ 23

H.F. 2334 sciences, public health, and state or local policy. 1 3. Appointments to the commission are subject to the 2 requirements of sections 69.16 and 69.16A. A governor’s 3 appointee must be confirmed by the senate, pursuant to section 4 2.32. 5 4. The members shall serve five-year terms beginning and 6 ending as provided in section 69.19. However, the governor 7 shall appoint initial members to serve for less than five years 8 to ensure members serve staggered terms. A member is eligible 9 for reappointment. A vacancy on the board shall be filled for 10 the unexpired portion of the regular term in the same manner as 11 regular appointments are made. 12 5. The governor shall appoint the chairperson from among the 13 commission’s members each year. The commission shall meet on 14 a regular basis and at the call of the chairperson or upon the 15 written request to the chairperson of three or more members. 16 6. Members of the commission are not entitled to receive 17 compensation but shall receive reimbursement of expenses from 18 the department as provided in section 7E.6. 19 7. Four members of the commission constitute a quorum and 20 the affirmative vote of a majority of the members present 21 is necessary for any substantive action to be taken by the 22 commission. The commission shall not include any member who 23 has a conflict of interest and a statement by a member that 24 the member has a conflict of interest is conclusive for this 25 purpose. A vacancy in the membership does not impair the 26 duties of the commission. 27 Sec. 26. NEW SECTION . 466D.204 Iowa water commission —— 28 cooperation and assistance. 29 1. The commission shall cooperate with the Leopold center, 30 the flood center, and the Iowa water center in advancing the 31 Iowa water policy as provided in section 466D.201, including by 32 carrying out the provisions of this chapter. 33 2. Upon request, the commission shall receive assistance 34 from state and local governments and other entities, including 35 -9- LSB 5547YH (2) 87 da/rj 9/ 23

H.F. 2334 but not limited to the department of natural resources as 1 created in section 455A.2, the department of agriculture and 2 land stewardship as described in chapter 159, the university 3 of Iowa as described in chapter 263, Iowa state university 4 of science and technology as described in chapter 266, the 5 department of homeland security and emergency management as 6 created in section 29C.5, the water resources coordinating 7 council as established in section 466B.3, watershed management 8 authorities recognized pursuant to section 466B.22, the Iowa 9 nutrient research center established pursuant to section 10 466B.47, and the Iowa nutrient research center advisory council 11 established pursuant to section 466B.48. 12 Sec. 27. NEW SECTION . 466D.301 Water quality —— baseline —— 13 goals and benchmarks —— standards. 14 1. The commission shall maintain a database of surface water 15 quality measurements within this state based on water samples 16 collected by federal and state government entities and private 17 persons. The database shall be based on information prepared 18 by the Mississippi river/gulf of Mexico watershed nutrient 19 task force, the United States national oceanic and atmospheric 20 administration, and the United States geological survey. 21 2. The commission shall establish a baseline for the years 22 1980 to 1996, and may establish other baselines in order to 23 measure an increase or decrease in nitrates and phosphorus in 24 surface water sources. 25 3. The commission shall establish goals and benchmarks 26 to reduce nitrogen and phosphorus loads contributed to 27 this state’s surface water sources by point and nonpoint 28 sources. The commission shall establish and revise short-term 29 and long-term water quality impairment reduction goals or 30 benchmarks on a local, regional, and statewide level. The 31 commission may establish special benchmarks for reducing 32 nitrogen and phosphorus loads contributed to any of the 33 following: 34 a. A priority watershed or subwatershed identified by the 35 -10- LSB 5547YH (2) 87 da/rj 10/ 23

H.F. 2334 commission. 1 b. A priority stream or stream segment identified by the 2 commission. 3 c. A high-quality water resource. 4 Sec. 28. NEW SECTION . 466D.302 Comprehensive state water 5 plan and updates. 6 1. The commission, in cooperation with the Leopold center, 7 the flood center, and Iowa water center, shall prepare a 8 long-range comprehensive state water plan including for 9 each category of the Iowa water policy advancing water 10 sustainability as described in section 466D.201. The plan 11 shall have a minimum five-year forecast period. The plan shall 12 provide for beneficial uses of this state’s water resources, 13 including all of the following: 14 a. Public and private drinking water and wastewater 15 services. 16 b. Agricultural, residential, municipal, commercial, 17 industrial, and recreational uses. 18 c. Fish and wildlife habitat. 19 d. Recreational uses. 20 e. Floodplain management and wetland management. 21 2. The plan shall account for factors and trends that are 22 projected to impact the uses described in subsection 1 and 23 current and developing methods and technologies that may assist 24 in achieving the objective provided in section 466D.201 and 25 goals or benchmarks established pursuant to section 466D.301. 26 The plan shall include detailed information necessary 27 to determine the state’s ongoing progress, and necessary 28 adjustments to prior plans. 29 3. The commission shall prepare and submit the plan to the 30 governor and general assembly not later than November 15, 2019. 31 4. The plan shall include information for the two categories 32 that advance water sustainability as described in the Iowa 33 water policy as provided in section 466D.201, including all of 34 the following: 35 -11- LSB 5547YH (2) 87 da/rj 11/ 23

H.F. 2334 a. (1) For the water quality category, a qualitative 1 assessment of the state’s progress in achieving the water 2 quality objectives as provided in section 466D.201, and related 3 goals and benchmarks as provided in section 466D.301. The 4 plan shall include summaries of similar assessments prepared 5 by other entities. The plan shall compare progress measured 6 against the baseline established by section 466D.301. 7 (2) For the water management category, a qualitative 8 assessment of flood and drought risks for the upcoming calendar 9 year and forecasts for short-term and long-term flood and 10 drought risks. 11 b. For each category, an evaluation of revenue sources 12 and amounts received to support each category described in 13 section 466D.201, including historical trends, current funding 14 levels, and required future funding levels recommended by the 15 commission. The plan shall include areas in which immediate 16 financing is critically important to preserve water quality and 17 reduce risks associated with flood and drought conditions. 18 c. For the water quality category, a list of each watershed 19 or subwatershed having the greatest or most immediate need for 20 action necessary to reduce the contributions of nutrients to 21 surface water sources. The plan shall include a recommendation 22 that describes the most needed action. 23 d. (1) For each category, an identification of research 24 conducted in this state or other states that demonstrate 25 potential to produce short-term or long-term future benefits. 26 The plan shall include a recommendation to expand the research 27 or apply the research to develop a model for sustainable water 28 initiatives. 29 (2) For each category, an identification of priority areas 30 for research that would assist the state in achieving water 31 sustainability objectives as provided in section 466D.201 and 32 related goals and benchmarks as provided in section 466D.301. 33 e. (1) For each category, an evaluation of initiatives 34 being undertaken by federal, state, or local entities. 35 -12- LSB 5547YH (2) 87 da/rj 12/ 23

H.F. 2334 (2) For each category, an identification of implemented 1 initiatives conducted in this state or other states that 2 demonstrate short-term or long-term future benefits. The plan 3 shall include a recommendation to expand an initiative or use 4 an initiative in developing a model. 5 f. For each category, a list of initiatives that are 6 being implemented by the commission or that are planned to be 7 implemented by the commission, including the cost or expected 8 cost of the initiative. The list shall describe the project 9 name identifying the initiative, the name of each county 10 where the initiative has been or will be established, and the 11 proposed or actual cost of establishing the initiative. 12 g. For each category, any recommendation to revise legal 13 provisions or policies, including any statute enacted by the 14 general assembly, rule adopted by an administrative agency, or 15 ordinance adopted by a local government. 16 5. a. Not later than November 15 of each year, the 17 commission, in cooperation with the Leopold center, the flood 18 center, and Iowa water center, shall prepare an updated plan 19 which shall be submitted to the governor and general assembly. 20 An updated plan shall describe all relevant changes to the plan 21 and previous updates to the plan. An updated plan must include 22 an evaluation of the state’s progress in meeting its objective 23 to reduce nitrogen and phosphorus loads contributed to this 24 state’s surface water sources as part of the Iowa water policy 25 as provided in section 466D.201. An updated plan shall also 26 include the list as provided in this section that describes 27 information regarding each type of initiative that has been or 28 is planned to be established. 29 b. Each four years, the commission, in cooperation with the 30 Leopold center, the flood center, and the Iowa water center, 31 shall prepare an extensive update of the plan that evaluates 32 the objective of the state and determines the extent to which 33 the state has achieved water sustainability under the Iowa 34 water policy. The extensive update shall be submitted to the 35 -13- LSB 5547YH (2) 87 da/rj 13/ 23

H.F. 2334 governor and general assembly not later than the following: 1 (1) November 15, 2025. 2 (2) November 15, 2029. 3 (3) November 15, 2033. 4 Sec. 29. NEW SECTION . 466D.401 Water management authorities 5 —— allocations. 6 1. For each fiscal year that moneys are available, the 7 commission shall allocate not more than forty thousand dollars 8 each fiscal year to each eligible authority. 9 2. The moneys shall be used as specified by the commission. 10 However, the moneys may be used to support the administrative 11 costs of an authority. 12 3. The commission shall establish eligibility requirements 13 under this section. However, in order to be eligible, an 14 authority must at least demonstrate that it is actively engaged 15 in carrying out the duties described in section 466B.23. 16 Sec. 30. NEW SECTION . 466D.402 Water management authorities 17 —— competitive grant program. 18 1. After completing allocations to water management 19 authorities under section 466D.401, for each fiscal year 20 that moneys are available, the commission shall award moneys 21 to authorities eligible under section 466D.401 to finance 22 sustainable water initiatives. 23 2. The commission shall select an eligible authority to be 24 awarded moneys under this section based on criteria established 25 by the commission to achieve water sustainability under the 26 Iowa water policy, which must at least include any of the 27 following: 28 a. For an authority applying under the water quality 29 category, the initiative must substantially reduce or eliminate 30 the contribution of a nutrient to a water resource. 31 b. For an authority applying under the Iowa water management 32 category, the initiative must substantially reduce or mitigate 33 the risk of damages caused by a flood or drought. 34 3. In awarding a grant, the commission may establish a 35 -14- LSB 5547YH (2) 87 da/rj 14/ 23

H.F. 2334 preference for a sustainable water initiative based on whether 1 it meets any of the following criteria: 2 a. Is supported by matching moneys from a person other than 3 the state. 4 b. Is cost-effective and practical to establish and 5 maintain. 6 c. Is used in part to conduct research or as a demonstration 7 model. 8 d. Has a lifespan that extends beyond the period covered by 9 the grant. 10 Sec. 31. NEW SECTION . 466D.403 Iowa water commission —— 11 appropriations. 12 There is appropriated from the general fund of the state to 13 the department of agriculture and land stewardship, for the 14 fiscal year beginning July 1, 2018, and for each subsequent 15 fiscal year, the sum of two million nine hundred fifteen 16 dollars to be allocated to the Iowa water commission. 17 DIVISION VI 18 WATER MONITORING 19 Sec. 32. Section 466B.2, Code 2018, is amended by adding the 20 following new subsections: 21 NEW SUBSECTION . 5A. “User” means a person who is the 22 recipient of water originating from a surface water or 23 groundwater source and who is entitled to exercise a right over 24 such water for any lawful purpose. 25 NEW SUBSECTION . 7. “Water supply system” means a public 26 water supply system or private water supply as defined in 27 section 455B.171. 28 Sec. 33. NEW SECTION . 466B.26 Water monitoring program. 29 1. The department shall administer a water monitoring 30 program in cooperation with the Iowa flood center established 31 in section 466C.1, the Iowa water commission created in section 32 466D.202, and the Iowa water center as defined in section 33 466D.102. The program shall provide for all of the following: 34 a. The measurement of water levels in the existing aquifer 35 -15- LSB 5547YH (2) 87 da/rj 15/ 23

H.F. 2334 monitoring well system to allow for creating new and updating 1 existing models utilizing groundwater level monitoring, and for 2 the analysis and dissemination of such information using an 3 internet-based system. 4 b. The production of enhanced mapping of groundwater 5 sources for community, agricultural, and industrial use 6 including alluvial and other sand and gravel aquifers, to 7 enable community, agricultural, and industrial water users to 8 track the status of shallow water table levels and both shallow 9 and deep groundwater aquifers, and to provide an early warning 10 system regarding water supply problems. 11 c. The provision of technical assistance for drought and 12 water conservation planning for community and other water 13 supply systems. 14 (1) The department shall obtain short-term and long-term 15 water conservation plans for the ten-year period beginning 16 July 1, 2018, from all permitted users, excluding storage 17 allocations. The department shall require regular periodic 18 updating of such plans. 19 (2) The department shall collaborate with other state 20 agencies and appropriate statewide professional organizations. 21 Collaboration shall include contracting for services with 22 statewide professional organizations if deemed appropriate by 23 the department. 24 d. The installation of a network of hydrologic monitoring 25 stations capable of collecting weather data, multi-level soil 26 moisture data, and shallow groundwater level information. 27 The network shall be developed by the Iowa flood center and 28 integrated into an internet-based hydrologic information 29 system. The Iowa flood center shall select the sites and 30 deploy the instruments in coordination with Iowa state 31 university of science and technology. 32 e. The maintenance of a network of hydrologic monitoring 33 stations and for the maintenance of an electronic system for 34 making the information from that system available in real 35 -16- LSB 5547YH (2) 87 da/rj 16/ 23

H.F. 2334 time. The Iowa flood center shall maintain the database and 1 the instruments. 2 2. The department shall prepare and submit a report to 3 the governor and general assembly prior to January 1 of each 4 year. The report shall provide a summary of the department’s 5 activities during the past year and its short-term and 6 long-term statewide and regional assessments, prioritization, 7 and planning processes, including a short-term interim program 8 and a long-term comprehensive program. 9 Sec. 34. NEW SECTION . 466B.27 Water monitoring —— 10 appropriation. 11 There is appropriated from the general fund of the state 12 to the department of natural resources, for the fiscal year 13 beginning July 1, 2018, and for each subsequent fiscal year, 14 the sum of one million thirty-five thousand dollars to support 15 the water monitoring program created in section 466B.26. 16 DIVISION VII 17 CONFINEMENT FEEDING OPERATIONS —— MASTER MATRIX 18 Sec. 35. Section 459.304, subsection 3, paragraph b, Code 19 2018, is amended to read as follows: 20 b. The board must conduct an evaluation of the application 21 using the master matrix as provided in section 459.305 . The 22 board shall compile and analyze the results of the comments in 23 order to complete its evaluation and make a recommendation. 24 The board’s recommendation may be based on the master matrix 25 or may be based on comments under as described in this section 26 regardless of the results of the master matrix. 27 Sec. 36. Section 459.305, subsection 2, Code 2018, is 28 amended to read as follows: 29 2. a. The master matrix shall include criteria valuing 30 environmental and community impacts for use by county boards 31 of supervisors and the department. The master matrix shall 32 include definite point selections for all criteria provided in 33 the master matrix. The master matrix shall provide only for 34 scoring of positive points and shall not provide for deduction 35 -17- LSB 5547YH (2) 87 da/rj 17/ 23

H.F. 2334 of adding and deducting points. The master matrix shall 1 provide for a minimum threshold score required to receive a 2 satisfactory rating. The master matrix shall be structured to 3 ensure that it feasibly provides for a satisfactory rating. 4 b. Criteria The master matrix shall include criteria 5 valuing environmental impacts which shall account for animal 6 agriculture’s relationship to quality of the environment and 7 the conservation of natural resources, and may include factors 8 that refer to all of the following: 9 a. (1) Topography. 10 b. (2) Surface water drainage characteristics. 11 c. (3) The suitability of the soils and the hydrology or 12 hydrogeology of the site. 13 d. (4) The proximity to public use areas and critical 14 public areas. 15 e. (5) The proximity to water sources, including 16 high-quality water resources. 17 c. The master matrix shall include criteria that provide for 18 the deduction of points, including but not limited to all of 19 the following: 20 (1) A substantial threat that manure originating from the 21 confinement feeding operation will impair the watershed where 22 the confinement feeding operation is located. 23 (2) The failure of the owner of the confinement feeding 24 operation to file or comply with a water quality improvement 25 plan as required by the department. 26 (3) The close proximity of an existing or proposed 27 confinement feeding operation structure to a drinking water 28 source used for human consumption, including a well or surface 29 water intake. 30 (4) The relatively high number of existing confinement 31 feeding operations existing in the watershed, including 32 qualified confinement feeding operations. 33 (5) The lack of community support for the application’s 34 approval which may be based on the board analysis of the 35 -18- LSB 5547YH (2) 87 da/rj 18/ 23

H.F. 2334 results of the comments received by the board pursuant to 1 section 459.304. 2 Sec. 37. APPLICABILITY —— PENDING APPLICATIONS. The 3 amendments to sections 459.304 and 459.305 in this division 4 of this Act shall not apply to an application to construct, 5 including expand, a confinement feeding operation structure 6 as provided in section 459.303 that is pending approval 7 or disapproval by the department immediately prior to the 8 effective date of this division of this Act. 9 Sec. 38. EFFECTIVE DATE. This division of this Act, being 10 deemed of immediate importance, takes effect upon enactment. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 GENERAL. This bill amends a number of provisions relating 15 to agriculture and natural resources, including funding 16 sources; and programs, projects, and practices (sustainable 17 water initiatives) used to advance an Iowa water policy 18 (policy) and the regulation of confinement feeding operations. 19 The provisions affect a number of agencies and political 20 subdivisions, including the department of agriculture and land 21 stewardship (DALS), the department of natural resources (DNR), 22 the department of homeland security and emergency management 23 (HSEMD), watershed management authorities (authorities), the 24 Leopold center for sustainable agriculture (Leopold center), 25 and the Iowa flood center (flood center). The bill also refers 26 to the Iowa water center, a federally funded entity housed 27 within Iowa state university of science and technology. The 28 bill creates an Iowa water commission (commission) within DNR. 29 DIVISION I —— NATURAL RESOURCES AND OUTDOOR RECREATION ACT 30 —— INCREASE IN SALES AND USE TAX. The bill increases from 31 6 percent to 6.375 percent the state sales tax rate and the 32 state use tax rate, and provides for the transfer of sales tax 33 revenues to the natural resources and outdoor recreation trust 34 fund (trust fund). The bill also amends the transfer of use 35 -19- LSB 5547YH (2) 87 da/rj 19/ 23