HF 2334 (LSB 5547YH (2) 87)

HOUSE FILE 2334

BY  STAED

(COMPANION TO SF 2161 BY HOGG)

A BILL FOR

An Act relating to activities associated with agriculture, natural resources, and the environment, including by increasing the sales and use tax rates, transferring moneys to the natural resources and outdoor recreation trust fund, funding certain government entities and initiatives, providing for an Iowa water policy, establishing water quality and water management objectives, goals, and benchmarks, regulating confinement feeding operations, making appropriations, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
NATURAL RESOURCES AND OUTDOOR RECREATION ACT

    Section 1.  Section 423.2, subsection 1, unnumbered paragraph 1, Code 2018, is amended to read as follows:
   There is imposed a tax of six and three-eighths percent upon the sales price of all sales of tangible personal property, consisting of goods, wares, or merchandise, sold at retail in the state to consumers or users except as otherwise provided in this subchapter.
    Sec. 2.  Section 423.2, subsections 2 and 3, Code 2018, are amended to read as follows:
   2.  A tax of six and three-eighths percent is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television service, and communication service, including the sales price from such sales by any municipal corporation or joint water utility furnishing gas, electricity, water, heat, pay television service, and communication service to the public in its proprietary capacity, except as otherwise provided in this subchapter, when sold at retail in the state to consumers or users.
   3.  A tax of six and three-eighths percent is imposed upon the sales price of all sales of tickets or admissions to places of amusement, fairs, and athletic events except those of elementary and secondary educational institutions. A tax of six and three-eighths percent is imposed on the sales price of an entry fee or like charge imposed solely for the privilege of participating in an activity at a place of amusement, fair, or athletic event unless the sales price of tickets or admissions charges for observing the same activity are taxable under this subchapter. A tax of six and three-eighths percent is imposed upon that part of private club membership fees or charges paid for the privilege of participating in any athletic sports provided club members.
    Sec. 3.  Section 423.2, subsection 4, paragraph a, Code 2018, is amended to read as follows:
   a.  A tax of six and three-eighths percent is imposed upon the sales price derived from the operation of all forms of amusement devices and games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, and card game tournaments conducted under section 99B.27, that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the collection of taxes upon the sales price of tickets or admission as provided in this section. Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law.
    Sec. 4.  Section 423.2, subsection 5, Code 2018, is amended to read as follows:
   5.  There is imposed a tax of six and three-eighths percent upon the sales price from the furnishing of services as defined in section 423.1.
    Sec. 5.  Section 423.2, subsection 7, paragraph a, unnumbered paragraph 1, Code 2018, is amended to read as follows:
   A tax of six and three-eighths percent is imposed upon the sales price from the sales, furnishing, or service of solid waste collection and disposal service.
    Sec. 6.  Section 423.2, subsection 8, paragraph a, Code 2018, is amended to read as follows:
   a.  A tax of six and three-eighths percent is imposed on the sales price from sales of bundled transactions. For the purposes of this subsection, a “bundled transaction” is the retail sale of two or more distinct and identifiable products, except real property and services to real property, which are sold for one nonitemized price. A “bundled transaction” does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.
    Sec. 7.  Section 423.2, subsection 9, Code 2018, is amended to read as follows:
   9.  A tax of six and three-eighths percent is imposed upon the sales price from any mobile telecommunications service, including all paging services, that this state is allowed to tax pursuant to the provisions of the federal Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. §116 et seq. For purposes of this subsection, taxes on mobile telecommunications service, as defined under the federal Mobile Telecommunications Sourcing Act that are deemed to be provided by the customer’s home service provider, shall be paid to the taxing jurisdiction whose territorial limits encompass the customer’s place of primary use, regardless of where the mobile telecommunications service originates, terminates, or passes through and shall in all other respects be taxed in conformity with the federal Mobile Telecommunications Sourcing Act. All other provisions of the federal Mobile Telecommunications Sourcing Act are adopted by the state of Iowa and incorporated into this subsection by reference. With respect to mobile telecommunications service under the federal Mobile Telecommunications Sourcing Act, the director shall, if requested, enter into agreements consistent with the provisions of the federal Act.
    Sec. 8.  Section 423.2, subsection 11, paragraph b, subparagraph (2), Code 2018, is amended to read as follows:
   (2)  Transfer from the remaining revenues the amounts required under Article VII, section 10, of the Constitution of the State of Iowa to the natural resources and outdoor recreation trust fund created in section 461.31, if applicable.
    Sec. 9.  Section 423.2, subsection 14, Code 2018, is amended to read as follows:
   14.  The sales tax rate of six and three-eighths percent is reduced to five and three-eighths percent on January 1, 2030.
    Sec. 10.  Section 423.5, subsection 1, unnumbered paragraph 1, Code 2018, is amended to read as follows:
   Except as provided in paragraph “c”, an excise tax at the rate of six and three-eighths percent of the purchase price or installed purchase price is imposed on the following:
    Sec. 11.  Section 423.5, subsection 5, Code 2018, is amended to read as follows:
   5.  The use tax rate of six and three-eighths percent is reduced to five and three-eighths percent on January 1, 2030.
    Sec. 12.  Section 423.43, subsection 1, paragraph b, Code 2018, is amended to read as follows:
   b.  Subsequent to the deposit into the general fund of the state and after the transfer of such pursuant to paragraph “a”, the department shall do the following in the order prescribed:
   (1)  Transfer the revenues collected under chapter 423B, the department shall transfer one-sixth.
   (2)  Transfer fifteen and six thousand eight hundred sixty-three ten-thousandths percent of such remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This paragraph subparagraph (2) is repealed December 31, 2029.
    Sec. 13.  PURPOSE.  The purpose of this division is to provide for the implementation of Article VII, section 10, of the Constitution of the State of Iowa by fully funding the natural resources and outdoor recreation trust fund as created in section 461.31, pursuant to Article VII, section 10, of the Constitution of the State of Iowa.
    Sec. 14.  EFFECTIVE DATE.  This division of this Act takes effect on January 1, 2019.
DIVISION II
LEOPOLD CENTER FOR SUSTAINABLE AGRICULTURE —— APPROPRIATIONS

    Sec. 15.  NEW SECTION.  266.39D  Leopold center for sustainable agriculture —— appropriations. 
   There is appropriated from the general fund of the state to Iowa state university, for the fiscal year beginning July 1, 2018, and for each subsequent fiscal year, the sum of one million seven hundred fifty thousand dollars to be allocated to the Leopold center for sustainable agriculture established in section 266.39 to carry out the provisions described in sections 266.39 through 266.39B.
DIVISION III
IOWA FLOOD CENTER —— APPROPRIATIONS

    Sec. 16.  NEW SECTION.  466C.2  Iowa flood center —— appropriation.
   There is appropriated from the general fund of the state to the state board of regents, for the fiscal year beginning July 1, 2018, and for each subsequent fiscal year, the sum of one million five hundred thousand dollars to be allocated to the Iowa flood center established pursuant to section 466C.1.
DIVISION IV
FLOOD MITIGATION —— APPROPRIATION

    Sec. 17.  NEW SECTION.  418.10A  Flood mitigation —— appropriation.
   There is appropriated from the general fund of the state to the department of homeland security and emergency management, for the fiscal year beginning July 1, 2018, and for each subsequent fiscal year, the sum of four million dollars to be deposited in the flood mitigation fund created in section 418.10. 
DIVISION V
IOWA WATER POLICY ACT

    Sec. 18.  Section 266.39A, Code 2018, is amended to read as follows:
   266.39A  Agricultural research.
   1.  Iowa state university of science and technology shall conduct continuing agricultural research to provide information about environmental all of the following: 
   a.  Environmental and social impacts of agricultural research on the small or family farm and information about population trends and impact of the trends on Iowa agriculture, in addition to research that may include the categories specified in section 266.39B, subsection 2.
   b.  The results of research to advance the Iowa water policy, including the purposes described in the policy’s water quality category and water management category as provided in section 466D.201.
   2.  The research shall include an agricultural land tenure study conducted every five years to determine the ownership of farmland, and to analyze ownership trends, using the categories of land ownership defined in chapter 9H. The study shall be conducted on the basis of regions established by the university. A region shall be composed of not more than twenty-three contiguous counties.
    Sec. 19.  NEW SECTION.  266.39C  Leopold center for sustainable agriculture —— Iowa water policy.
   The Leopold center for sustainable agriculture shall cooperate with the Iowa water commission created in section 466D.202 in order to advance the Iowa water policy as provided in section 466D.201, including in assisting in evaluating and conducting research regarding sustainable water initiatives as provided in section 466D.303.
    Sec. 20.  Section 466B.3, subsection 4, Code 2018, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  m.  The chairperson of the Iowa water commission created in section 466D.202.
    Sec. 21.  NEW SECTION.  466C.2  Iowa water policy.
   The Iowa flood center shall cooperate with the Iowa water commission created in section 466D.202 in order to advance the Iowa water policy as provided in section 466D.201, including in assisting in evaluating and conducting research regarding sustainable water initiatives as provided in section 466D.303.
    Sec. 22.  NEW SECTION.  466D.101  Short title.
   This chapter may be known and shall be cited as the “Iowa Water Policy Act”.
    Sec. 23.  NEW SECTION.  466D.102  Definitions.
   As used in this section, unless the context otherwise requires:
   1.  “Authority” means a watershed management authority recognized pursuant to section 466B.22.
   2.  “Commission” means the Iowa water commission created in section 466D.202.
   3.  “Comprehensive state water plan” or “plan” means the document described in section 466D.302.
   4.  “Department” means the department of natural resources as created in section 455A.2.
   5.  “Flood center” means the Iowa flood center established pursuant to section 466C.1.
   6.  “High-quality water resource” means that part of a surface water source or wetland that the department has designated as any of the following:
   a.  A high-quality water (Class “HQ”) or a high-quality resource water (Class “HQR”) according to 567 IAC ch. 61, in effect on January 1, 2001.
   b.  A protected water area system, according to a state plan adopted by the department in effect on January 1, 2001. 
   7.  “Iowa water center” means the entity by that name housed within Iowa state university of science and technology that is overseen by the United States geological survey pursuant to 42 U.S.C. §10301 et seq.
   8.  “Leopold center” means the Leopold center for sustainable agriculture created in section 266.39.
   9.  “Nutrient” means nitrogen or phosphorus. 
   10.  “Sustainable water initiative” or “initiative” means any program, policy, or practice that furthers the Iowa water policy as provided in section 466D.201.
   11.  “Water resources” means surface waters, including waters of the state as defined in section 455B.381 and groundwater as defined in section 455E.2.
    Sec. 24.  NEW SECTION.  466D.201  Iowa water policy and water quality objectives.
   1.  This state hereby adopts an Iowa water policy.
   2.  As its Iowa water policy, the state declares it is in its vital interest to protect and secure water resources by advancing water sustainability as provided in this chapter. Water sustainability is divided into the following categories:
   a.  A water quality category, which includes the need to preserve, restore, and enhance the quality of surface water and groundwater in this state, protect human health, agricultural productivity, and outdoor recreation, use, and enjoyment.
   b.  A water management category, which includes the need to prepare for and confront the immediate and prolonged consequences to human health and property caused by a flood or drought, including by reducing the risk of property damages and mitigating actual damages. 
   3.  It is the objective of the state to reduce nitrogen and phosphorus loads contributed to this state’s surface water sources by the following schedule of cumulative percentages:
   a.  For the period beginning July 1, 2016, and ending June 30, 2024, twenty percent.
   b.  For the period beginning July 1, 2020, and ending June 30, 2028, thirty-two percent.
   c.  For the period beginning July 1, 2024, and ending June 30, 2033, forty-five percent. 
   4.  The commission, in cooperation with the Leopold center, shall develop methods and procedures required to measure and assess water quality for water resources, and may adopt additional objectives in the public interest. 
    Sec. 25.  NEW SECTION.  466D.202  Iowa water commission —— creation and membership.
   1.  An Iowa water commission is created in the department of natural resources. Upon request, the commission shall receive staffing assistance from the department of agriculture and land stewardship described in chapter 159 and the department of homeland security and emergency management created in section 29C.5.
   2.  The commission shall be composed of seven members who shall be appointed by the governor. The members shall have expertise and experience in areas of hydrology, engineering, agriculture, soil conservation and water quality, environmental sciences, public health, and state or local policy.
   3.  Appointments to the commission are subject to the requirements of sections 69.16 and 69.16A. A governor’s appointee must be confirmed by the senate, pursuant to section 2.32.
   4.  The members shall serve five-year terms beginning and ending as provided in section 69.19. However, the governor shall appoint initial members to serve for less than five years to ensure members serve staggered terms. A member is eligible for reappointment. A vacancy on the board shall be filled for the unexpired portion of the regular term in the same manner as regular appointments are made.
   5.  The governor shall appoint the chairperson from among the commission’s members each year. The commission shall meet on a regular basis and at the call of the chairperson or upon the written request to the chairperson of three or more members.
   6.  Members of the commission are not entitled to receive compensation but shall receive reimbursement of expenses from the department as provided in section 7E.6.
   7.  Four members of the commission constitute a quorum and the affirmative vote of a majority of the members present is necessary for any substantive action to be taken by the commission. The commission shall not include any member who has a conflict of interest and a statement by a member that the member has a conflict of interest is conclusive for this purpose. A vacancy in the membership does not impair the duties of the commission.
    Sec. 26.  NEW SECTION.  466D.204  Iowa water commission —— cooperation and assistance. 
   1.  The commission shall cooperate with the Leopold center, the flood center, and the Iowa water center in advancing the Iowa water policy as provided in section 466D.201, including by carrying out the provisions of this chapter. 
   2.  Upon request, the commission shall receive assistance from state and local governments and other entities, including but not limited to the department of natural resources as created in section 455A.2, the department of agriculture and land stewardship as described in chapter 159, the university of Iowa as described in chapter 263, Iowa state university of science and technology as described in chapter 266, the department of homeland security and emergency management as created in section 29C.5, the water resources coordinating council as established in section 466B.3, watershed management authorities recognized pursuant to section 466B.22, the Iowa nutrient research center established pursuant to section 466B.47, and the Iowa nutrient research center advisory council established pursuant to section 466B.48.
    Sec. 27.  NEW SECTION.  466D.301  Water quality —— baseline —— goals and benchmarks —— standards. 
   1.  The commission shall maintain a database of surface water quality measurements within this state based on water samples collected by federal and state government entities and private persons. The database shall be based on information prepared by the Mississippi river/gulf of Mexico watershed nutrient task force, the United States national oceanic and atmospheric administration, and the United States geological survey. 
   2.  The commission shall establish a baseline for the years 1980 to 1996, and may establish other baselines in order to measure an increase or decrease in nitrates and phosphorus in surface water sources. 
   3.  The commission shall establish goals and benchmarks to reduce nitrogen and phosphorus loads contributed to this state’s surface water sources by point and nonpoint sources. The commission shall establish and revise short-term and long-term water quality impairment reduction goals or benchmarks on a local, regional, and statewide level. The commission may establish special benchmarks for reducing nitrogen and phosphorus loads contributed to any of the following:
   a.  A priority watershed or subwatershed identified by the commission. 
   b.  A priority stream or stream segment identified by the commission.
   c.  A high-quality water resource.
    Sec. 28.  NEW SECTION.  466D.302  Comprehensive state water plan and updates.
   1.  The commission, in cooperation with the Leopold center, the flood center, and Iowa water center, shall prepare a long-range comprehensive state water plan including for each category of the Iowa water policy advancing water sustainability as described in section 466D.201. The plan shall have a minimum five-year forecast period. The plan shall provide for beneficial uses of this state’s water resources, including all of the following:
   a.  Public and private drinking water and wastewater services.
   b.  Agricultural, residential, municipal, commercial, industrial, and recreational uses.
   c.  Fish and wildlife habitat.
   d.  Recreational uses. 
   e.  Floodplain management and wetland management.
   2.  The plan shall account for factors and trends that are projected to impact the uses described in subsection 1 and current and developing methods and technologies that may assist in achieving the objective provided in section 466D.201 and goals or benchmarks established pursuant to section 466D.301. The plan shall include detailed information necessary to determine the state’s ongoing progress, and necessary adjustments to prior plans.
   3.  The commission shall prepare and submit the plan to the governor and general assembly not later than November 15, 2019.
   4.  The plan shall include information for the two categories that advance water sustainability as described in the Iowa water policy as provided in section 466D.201, including all of the following:
   a.  (1)  For the water quality category, a qualitative assessment of the state’s progress in achieving the water quality objectives as provided in section 466D.201, and related goals and benchmarks as provided in section 466D.301. The plan shall include summaries of similar assessments prepared by other entities. The plan shall compare progress measured against the baseline established by section 466D.301.
   (2)  For the water management category, a qualitative assessment of flood and drought risks for the upcoming calendar year and forecasts for short-term and long-term flood and drought risks. 
   b.  For each category, an evaluation of revenue sources and amounts received to support each category described in section 466D.201, including historical trends, current funding levels, and required future funding levels recommended by the commission. The plan shall include areas in which immediate financing is critically important to preserve water quality and reduce risks associated with flood and drought conditions. 
   c.  For the water quality category, a list of each watershed or subwatershed having the greatest or most immediate need for action necessary to reduce the contributions of nutrients to surface water sources. The plan shall include a recommendation that describes the most needed action.
   d.  (1)  For each category, an identification of research conducted in this state or other states that demonstrate potential to produce short-term or long-term future benefits. The plan shall include a recommendation to expand the research or apply the research to develop a model for sustainable water initiatives.
   (2)  For each category, an identification of priority areas for research that would assist the state in achieving water sustainability objectives as provided in section 466D.201 and related goals and benchmarks as provided in section 466D.301. 
   e.  (1)  For each category, an evaluation of initiatives being undertaken by federal, state, or local entities. 
   (2)  For each category, an identification of implemented initiatives conducted in this state or other states that demonstrate short-term or long-term future benefits. The plan shall include a recommendation to expand an initiative or use an initiative in developing a model.
   f.  For each category, a list of initiatives that are being implemented by the commission or that are planned to be implemented by the commission, including the cost or expected cost of the initiative. The list shall describe the project name identifying the initiative, the name of each county where the initiative has been or will be established, and the proposed or actual cost of establishing the initiative.
   g.  For each category, any recommendation to revise legal provisions or policies, including any statute enacted by the general assembly, rule adopted by an administrative agency, or ordinance adopted by a local government. 
   5.  a.  Not later than November 15 of each year, the commission, in cooperation with the Leopold center, the flood center, and Iowa water center, shall prepare an updated plan which shall be submitted to the governor and general assembly. An updated plan shall describe all relevant changes to the plan and previous updates to the plan. An updated plan must include an evaluation of the state’s progress in meeting its objective to reduce nitrogen and phosphorus loads contributed to this state’s surface water sources as part of the Iowa water policy as provided in section 466D.201. An updated plan shall also include the list as provided in this section that describes information regarding each type of initiative that has been or is planned to be established. 
   b.  Each four years, the commission, in cooperation with the Leopold center, the flood center, and the Iowa water center, shall prepare an extensive update of the plan that evaluates the objective of the state and determines the extent to which the state has achieved water sustainability under the Iowa water policy. The extensive update shall be submitted to the governor and general assembly not later than the following:
   (1)  November 15, 2025.
   (2)  November 15, 2029.
   (3)  November 15, 2033.
    Sec. 29.  NEW SECTION.  466D.401  Water management authorities —— allocations.
   1.  For each fiscal year that moneys are available, the commission shall allocate not more than forty thousand dollars each fiscal year to each eligible authority. 
   2.  The moneys shall be used as specified by the commission. However, the moneys may be used to support the administrative costs of an authority. 
   3.  The commission shall establish eligibility requirements under this section. However, in order to be eligible, an authority must at least demonstrate that it is actively engaged in carrying out the duties described in section 466B.23.
    Sec. 30.  NEW SECTION.  466D.402  Water management authorities —— competitive grant program.
   1.  After completing allocations to water management authorities under section 466D.401, for each fiscal year that moneys are available, the commission shall award moneys to authorities eligible under section 466D.401 to finance sustainable water initiatives. 
   2.  The commission shall select an eligible authority to be awarded moneys under this section based on criteria established by the commission to achieve water sustainability under the Iowa water policy, which must at least include any of the following:
   a.  For an authority applying under the water quality category, the initiative must substantially reduce or eliminate the contribution of a nutrient to a water resource.
   b.  For an authority applying under the Iowa water management category, the initiative must substantially reduce or mitigate the risk of damages caused by a flood or drought.
   3.  In awarding a grant, the commission may establish a preference for a sustainable water initiative based on whether it meets any of the following criteria:
   a.  Is supported by matching moneys from a person other than the state.
   b.  Is cost-effective and practical to establish and maintain. 
   c.  Is used in part to conduct research or as a demonstration model. 
   d.  Has a lifespan that extends beyond the period covered by the grant. 
    Sec. 31.  NEW SECTION.  466D.403  Iowa water commission —— appropriations.
   There is appropriated from the general fund of the state to the department of agriculture and land stewardship, for the fiscal year beginning July 1, 2018, and for each subsequent fiscal year, the sum of two million nine hundred fifteen dollars to be allocated to the Iowa water commission.
DIVISION VI
WATER MONITORING

    Sec. 32.  Section 466B.2, Code 2018, is amended by adding the following new subsections:
   NEW SUBSECTION.  5A.  “User” means a person who is the recipient of water originating from a surface water or groundwater source and who is entitled to exercise a right over such water for any lawful purpose.
   NEW SUBSECTION.  7.  “Water supply system” means a public water supply system or private water supply as defined in section 455B.171. 
    Sec. 33.  NEW SECTION.  466B.26  Water monitoring program.
   1.  The department shall administer a water monitoring program in cooperation with the Iowa flood center established in section 466C.1, the Iowa water commission created in section 466D.202, and the Iowa water center as defined in section 466D.102. The program shall provide for all of the following:
   a.  The measurement of water levels in the existing aquifer monitoring well system to allow for creating new and updating existing models utilizing groundwater level monitoring, and for the analysis and dissemination of such information using an internet-based system.
   b.  The production of enhanced mapping of groundwater sources for community, agricultural, and industrial use including alluvial and other sand and gravel aquifers, to enable community, agricultural, and industrial water users to track the status of shallow water table levels and both shallow and deep groundwater aquifers, and to provide an early warning system regarding water supply problems.
   c.  The provision of technical assistance for drought and water conservation planning for community and other water supply systems.
   (1)  The department shall obtain short-term and long-term water conservation plans for the ten-year period beginning July 1, 2018, from all permitted users, excluding storage allocations. The department shall require regular periodic updating of such plans.
   (2)  The department shall collaborate with other state agencies and appropriate statewide professional organizations. Collaboration shall include contracting for services with statewide professional organizations if deemed appropriate by the department.
   d.  The installation of a network of hydrologic monitoring stations capable of collecting weather data, multi-level soil moisture data, and shallow groundwater level information. The network shall be developed by the Iowa flood center and integrated into an internet-based hydrologic information system. The Iowa flood center shall select the sites and deploy the instruments in coordination with Iowa state university of science and technology.
   e.  The maintenance of a network of hydrologic monitoring stations and for the maintenance of an electronic system for making the information from that system available in real time. The Iowa flood center shall maintain the database and the instruments.
   2.  The department shall prepare and submit a report to the governor and general assembly prior to January 1 of each year. The report shall provide a summary of the department’s activities during the past year and its short-term and long-term statewide and regional assessments, prioritization, and planning processes, including a short-term interim program and a long-term comprehensive program. 
    Sec. 34.  NEW SECTION.  466B.27  Water monitoring —— appropriation.
   There is appropriated from the general fund of the state to the department of natural resources, for the fiscal year beginning July 1, 2018, and for each subsequent fiscal year, the sum of one million thirty-five thousand dollars to support the water monitoring program created in section 466B.26.
DIVISION VII
CONFINEMENT FEEDING OPERATIONS —— MASTER MATRIX

    Sec. 35.  Section 459.304, subsection 3, paragraph b, Code 2018, is amended to read as follows:
   b.  The board must conduct an evaluation of the application using the master matrix as provided in section 459.305.  The board shall compile and analyze the results of the comments in order to complete its evaluation and make a recommendation. The board’s recommendation may be based on the master matrix or may be based on comments under as described in this section regardless of the results of the master matrix.
    Sec. 36.  Section 459.305, subsection 2, Code 2018, is amended to read as follows:
   2.  a.  The master matrix shall include criteria valuing environmental and community impacts for use by county boards of supervisors and the department. The master matrix shall include definite point selections for all criteria provided in the master matrix. The master matrix shall provide only for scoring of positive points and shall not provide for deduction of adding and deducting points. The master matrix shall provide for a minimum threshold score required to receive a satisfactory rating. The master matrix shall be structured to ensure that it feasibly provides for a satisfactory rating.
   b.  Criteria The master matrix shall include criteria valuing environmental impacts which shall account for animal agriculture’s relationship to quality of the environment and the conservation of natural resources, and may include factors that refer to all of the following:
   a.  (1)  Topography.
   b.  (2)  Surface water drainage characteristics.
   c.  (3)  The suitability of the soils and the hydrology or hydrogeology of the site.
   d.  (4)  The proximity to public use areas and critical public areas.
   e.  (5)  The proximity to water sources, including high-quality water resources.
   c.  The master matrix shall include criteria that provide for the deduction of points, including but not limited to all of the following:
   (1)  A substantial threat that manure originating from the confinement feeding operation will impair the watershed where the confinement feeding operation is located.
   (2)  The failure of the owner of the confinement feeding operation to file or comply with a water quality improvement plan as required by the department.
   (3)  The close proximity of an existing or proposed confinement feeding operation structure to a drinking water source used for human consumption, including a well or surface water intake.
   (4)  The relatively high number of existing confinement feeding operations existing in the watershed, including qualified confinement feeding operations.
   (5)  The lack of community support for the application’s approval which may be based on the board analysis of the results of the comments received by the board pursuant to section 459.304.
    Sec. 37.  APPLICABILITY —— PENDING APPLICATIONS.  The amendments to sections 459.304 and 459.305 in this division of this Act shall not apply to an application to construct, including expand, a confinement feeding operation structure as provided in section 459.303 that is pending approval or disapproval by the department immediately prior to the effective date of this division of this Act.
    Sec. 38.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   GENERAL. This bill amends a number of provisions relating to agriculture and natural resources, including funding sources; and programs, projects, and practices (sustainable water initiatives) used to advance an Iowa water policy (policy) and the regulation of confinement feeding operations. The provisions affect a number of agencies and political subdivisions, including the department of agriculture and land stewardship (DALS), the department of natural resources (DNR), the department of homeland security and emergency management (HSEMD), watershed management authorities (authorities), the Leopold center for sustainable agriculture (Leopold center), and the Iowa flood center (flood center). The bill also refers to the Iowa water center, a federally funded entity housed within Iowa state university of science and technology. The bill creates an Iowa water commission (commission) within DNR. 
   DIVISION I —— NATURAL RESOURCES AND OUTDOOR RECREATION ACT —— INCREASE IN SALES AND USE TAX. The bill increases from 6 percent to 6.375 percent the state sales tax rate and the state use tax rate, and provides for the transfer of sales tax revenues to the natural resources and outdoor recreation trust fund (trust fund). The bill also amends the transfer of use tax revenues to the secure an advanced vision for education fund (SAVE) in Code section 423F.2 from 1/6th (approximately 16.66 percent) of the revenues to 15.6863 percent of the revenues to ensure that SAVE receives approximately the same proportion of the total use tax revenue as it did prior to the use tax rate increase provided in the bill.
   CONSTITUTIONAL AMENDMENT. The bill relates to state sales and use taxes and to an amendment to the Iowa Constitution ratified on November 2, 2010, which created the trust fund and dedicated a portion of state revenues to the trust fund for the purposes of protecting and enhancing water quality and natural areas in the state including parks, trails, and fish and wildlife habitat, and conserving agricultural soils in the state (Article VII, section 10). The trust fund and appropriations from the trust fund are codified in Code chapter 461. Pursuant to the amendment, the amount credited to the trust fund will be equal to the amount generated by an increase in the state sales tax rate occurring after the effective date of the constitutional amendment, but shall not exceed the amount that a state sales tax rate of 0.375 percent would generate. The state sales tax rate has not been increased since the effective date of the constitutional amendment, so no amounts have been credited to the fund. 
   EFFECTIVE DATE. This division of the bill would take effect January 1, 2019.
   DIVISION II —— LEOPOLD CENTER —— STANDING LIMITED APPROPRIATION. The bill appropriates moneys from the general fund to the Leopold center for each fiscal year beginning July 1, 2018. 
   DIVISION III —— FLOOD CENTER —— STANDING LIMITED APPROPRIATION. The bill appropriates moneys from the general fund to the flood center for each fiscal year beginning July 1, 2018. 
   DIVISION IV —— FLOOD MITIGATION —— STANDING LIMITED APPROPRIATION. The bill appropriates moneys from the general fund to the HSEMD for deposit in the Iowa flood mitigation fund for each fiscal year beginning July 1, 2018. 
   DIVISION V —— IOWA WATER POLICY ACT —— GENERAL. The bill provides that it is this state’s policy to advance water sustainability. The policy is divided between two categories: (1) water quality and (2) water management. The water quality category states the importance of preserving, restoring, and enhancing surface water and groundwater (water resources). The bill provides a schedule of objectives for the reduction of nutrients (nitrogen and phosphorus) in this state’s surface waters based on July 1 through June 30 fiscal years: (1) 2018 through 2024, 20 percent, (2) 2024 through 2028, 32 percent, and (3) 2028 through 2033, 45 percent. The water management category states the importance of preparing for and confronting the immediate and prolonged consequences to property caused by a flood or drought conditions.
   IOWA WATER POLICY ACT —— COMMISSION. The commission consists of members appointed by the governor who have expertise and experience in areas of hydrology, engineering, agriculture, soil conservation and water quality, environmental sciences, public health, and state or local policy. For administrative purposes, the commission is part of DNR but may seek staffing assistance from DALS and HSEMD. It must also cooperate with the Leopold center, flood center, and Iowa water center. The commission is required to establish a long-range comprehensive state water plan for each category and which accounts for factors and trends that are projected to impact water resources, including its uses. The commission must also prepare and submit annual updates to the plan. It must include an assessment regarding the state’s progress in achieving objectives, goals, and benchmarks; an evaluation of revenue used to support initiatives; a list of locations requiring immediate attention to comply with water quality objectives, goals, and benchmarks; research activities; an evaluation of sustainable water initiatives; a list of initiatives financed or to be financed by the commission; and recommendations regarding the revision of legal provisions or policies. 
   IOWA WATER POLICY ACT —— AUTHORITIES. The bill authorizes the commission to allocate moneys to support administrative costs incurred by eligible authorities. The bill also establishes a competitive grant program to finance initiatives. The bill appropriates moneys from the general fund to the commission for each fiscal year beginning July 1, 2018.
   DIVISION VI —— WATER MONITORING PROGRAM. The bill requires DNR to administer a water monitoring program in cooperation with the flood center, the commission, and the Iowa water center. Under the program, the department and participating authorities must measure water levels in existing aquifer monitoring well systems, produce enhanced mapping of groundwater sources, provide technical assistance for drought and water conservation planning, obtain short-term and long-term water conservation plans, and provide for the installation of a network of hydrologic monitoring stations capable of collecting relevant data. DNR must prepare and submit an annual report to the governor and general assembly summarizing DNR’s activities, assessments, and planning processes. 
   DIVISION VII —— ANIMAL AGRICULTURE COMPLIANCE ACT —— GENERAL. The bill amends the “Animal Agriculture Compliance Act” (Code chapter 459) which generally regulates confinement feeding operations (operations) including associated confinement feeding operation structures (structures) by DNR. The bill amends provisions requiring that an application to construct or expand a structure must be evaluated by a participating board of supervisors in the county where the structure is to be located. The evaluation process includes the scoring of criteria that is part of a master matrix (matrix). The bill revises scoring procedures and the types of criteria that must be included in the matrix.
   ANIMAL AGRICULTURE COMPLIANCE ACT —— MATRIX. The bill provides that DNR is required to provide criteria with deductible points based on a number of factors including a substantial threat to the watershed, the failure of the owner of the operation to file a water quality improvement plan as required by DNR, the close proximity of a structure to a drinking water source, the relatively higher number of operations existing in the same watershed, and the lack of community support for the application as evidenced from comments made to a board during a public hearing.
   ANIMAL AGRICULTURE COMPLIANCE ACT —— APPLICABILITY. The bill’s provisions do not apply to an application that is pending approval or disapproval by DNR immediately prior to the effective date of the division of the bill.
   ANIMAL AGRICULTURE COMPLIANCE ACT —— EFFECTIVE DATE. The division of the bill would take effect upon enactment.