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House File 666 - IntroducedA Bill ForAn Act 1providing for programs and regulations administered
2and enforced by the department of agriculture and land
3stewardship, providing fees, providing for the allocation of
4moneys, making penalties applicable, and including effective
5date provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2REGULATION OF COMMERCIAL ESTABLISHMENTS
3 Section 1. Section 162.2, subsection 19, Code 2023, is
4amended by striking the subsection and inserting in lieu
5thereof the following:
619. “Pet shop” means a facility where vertebrate animals,
7excluding fish, not born and reared on the facility’s premises
8are bought, sold, exchanged, or offered for sale or exchange to
9the public, at retail. “Pet shop” does not include a facility
10if one of the following applies:
11a. The facility receives less than one thousand dollars from
12the sale or exchange of vertebrate animals, excluding fish,
13during a twelve-month period.
14b. The facility sells or exchanges less than twelve
15vertebrate animals, excluding fish, during a twelve-month
16period.
17DIVISION II
18GRAIN REGULATION
19PART A
20GRAIN DEALERS
21 Sec. 2. Section 203.1, Code 2023, is amended by adding the
22following new subsection:
23 NEW SUBSECTION. 12A. “Scale weight ticket” means the same
24as defined in section 203C.1.
25 Sec. 3. Section 203.5, subsection 8, paragraph a, Code 2023,
26is amended to read as follows:
27a. The applicant has caused liability to the Iowa grain
28depositors and sellers indemnity fund in regard to a license
29issued under this chapter or chapter 203C, and the liability
30has not been discharged, settled, or satisfied.
31 Sec. 4. Section 203.11, subsection 2, paragraph a,
32subparagraph (3), Code 2023, is amended to read as follows:
33(3) Uses a scale weight ticket or credit-sale contract in
34violation of this chapter or a requirement established by the
35department under this chapter.
-1-1 Sec. 5. Section 203.15, subsection 2, paragraph f, Code
22023, is amended to read as follows:
3f. The duration of the credit-sale contract, which shall
4not exceed twelve fifteen months from the date the contract is
5executed.
6 Sec. 6. Section 203.17, Code 2023, is amended to read as
7follows:
8203.17 Documents and records.
91. The department may adopt rules specifying the form,
10content, use, and maintenance of documents issued by a grain
11dealer under this chapter including but not limited to scale
12weight tickets, settlement sheets, daily position records, and
13credit-sale contracts. The department may adopt rules for
14both printed and electronic documents, including rules for
15the transmission, receipt, authentication, and archiving of
16electronically generated or stored documents.
172. All scale weight ticket forms in the possession of a
18grain dealer shall have been permanently and consecutively
19numbered at the time of printing. A grain dealer shall
20maintain an accurate record of all scale weight ticket numbers.
21The record shall include the disposition of each numbered form,
22whether issued, destroyed, or otherwise disposed of.
23 Sec. 7. Section 203.20, Code 2023, is amended to read as
24follows:
25203.20 Shrinkage adjustments — disclosures — penalties.
261. A person who, in connection with the receipt of
27corn or soybeans grain for storage, processing, or sale,
28adjusts the scale weight of the grain to compensate for the
29moisture content of the grain shall compute the amount of
30the adjustment by multiplying the scale weight of the grain
31by that factor which results in a rate of adjustment of one
32and eighteen hundredths percent of weight per one percent of
33moisture content. The use of person who uses any rate of
34weight adjustment for moisture content other than the one
35prescribed by this subsection is commits a fraudulent practice
-2- 1as defined in section 714.8. The person shall post on the
2business premises in a conspicuous place notice of the rate
3of adjustment for moisture content that is as prescribed by
4this subsection. Failure The person who fails to make this
5disclosure is commits a simple misdemeanor.
62. A person who, in connection with the receipt of grain for
7storage, processing, or sale, adjusts the quantity of the grain
8received to compensate for losses to be incurred during the
9handling, processing, or storage of the grain shall post on the
10business premises in a conspicuous place notice of the rate of
11adjustment to be made for this shrinkage. Failure The person
12who fails to make the required this disclosure is commits a
13simple misdemeanor.
143. A person who adjusts the scale weight of corn or soybeans
15both grain for moisture content and for handling, processing,
16or storage losses may combine the two adjustment factors into
17a single factor and may use this resulting factor to compute
18the amount of weight adjustment in connection with storage,
19processing, or sale transactions, provided that the person
20shall post on the business premises in a conspicuous place a
21notice that discloses the moisture shrinkage factor prescribed
22by subsection 1, the handling shrinkage factor to be imposed,
23and the single factor that results from combining these
24factors. Failure The person who fails to make the required
25 this disclosure is commits a simple misdemeanor.
26Part b
27WAREHOUSE OPERATORS
28 Sec. 8. Section 203C.5, subsection 2, Code 2023, is amended
29to read as follows:
302. a. The department may adopt rules specifying the
31form, content, and use of documents issued by a warehouse
32operator under this chapter including but not limited to scale
33weight tickets, warehouse receipts, settlement sheets, and
34daily position records. The department may adopt rules for
35both printed and electronic documents, including rules for
-3-1the transmission, receipt, authentication, and archiving of
2electronically generated or stored documents.
3b. All scale weight ticket forms and warehouse receipt
4forms in the possession of a warehouse operator shall have been
5permanently and consecutively numbered at the time of printing.
6A warehouse operator shall maintain an accurate record of
7the numbers of these documents. The record shall include
8the disposition of each form, whether issued, destroyed, or
9otherwise disposed of. The department may by rule require this
10use of prenumbered forms and recording for documents other than
11scale weight tickets and warehouse receipts.
12 Sec. 9. Section 203C.6, subsection 8, paragraph a, Code
132023, is amended to read as follows:
14a. The applicant has caused liability to the Iowa grain
15depositors and sellers indemnity fund through operations under
16a license issued under this chapter or chapter 203, and the
17liability has not been discharged, settled, or satisfied.
18 Sec. 10. Section 203C.17, subsections 1, 2, 3, 4, and 5,
19Code 2023, are amended to read as follows:
201. Any grain which has been received at any Grain deposited
21with a licensed warehouse operator for which the actual sale
22price is has not been fixed and either proper documentation
23made has not been furnished or payment has not been made shall
24be construed to be grain held for storage within the meaning of
25this chapter. Grain may be held considered stored grain and
26may be retained in open storage or placed on under warehouse
27receipt. A warehouse receipt shall be issued for all grain
28held in open storage within one year from the date of delivery
29to the warehouse, unless the depositor has signed a statement
30that the depositor does not desire a warehouse receipt. A The
31licensed warehouse operator shall issue a warehouse receipt
32shall be issued to the depositor upon request by the depositor.
33The warehouse operator’s tariff shall apply for to any grain
34that is retained in open storage or placed under warehouse
35receipt as provided in section 203C.18.
-4- 12. Bulk grain deposited with a licensed warehouse operator
2for processing, cleaning, drying, shipping for the account of
3the depositor, or any other purpose shall be removed within
4thirty days from the date of deposit or such grain shall be
5determined as considered stored grain and the. The warehouse
6operator’s tariff charges shall apply to the bulk grain as
7provided in section 203C.28.
83. Grain received on deposited and subject to a scale weight
9 ticket which that fails to have the price fixed and properly
10documented on the records of the licensed warehouse operator
11shall be construed to be retained in open storage.
124. All bulk grain whether retained in open storage and
13deposited subject to a scale weight ticket or having been
14 placed on under warehouse receipt is covered by the grain
15depositors and sellers indemnity fund created in as provided in
16 chapter 203D.
175. Any grain which has been received at any An unlicensed
18warehouse and for which the operator shall not retain deposited
19bulk grain, if its actual sale price has not been fixed, and
20payment for the bulk grain has not been made within thirty days
21from receipt of the grain its date of deposit, unless covered
22 purchased by a credit-sale contract, shall be construed to be
23unlawful storage within the meaning of this chapter. Bulk
24grain received at any An unlicensed warehouse for any operator
25who retains deposited bulk gain under any other purpose
26 circumstance must either be returned return the bulk grain to
27the depositor, or disposed of dispose of the bulk grain by
28order of the depositor, within thirty days from date of actual
29 the deposit of the bulk grain.
30 Sec. 11. Section 203C.25, Code 2023, is amended to read as
31follows:
32203C.25 Shrinkage adjustments — disclosures — penalties.
331. A person who, in connection with the receipt of
34corn or soybeans grain for storage, processing, or sale,
35adjusts the scale weight of the grain to compensate for the
-5-1moisture content of the grain shall compute the amount of
2the adjustment by multiplying the scale weight of the grain
3by that factor which results in a rate of adjustment of one
4and eighteen hundredths percent of weight per one percent of
5moisture content. The use of person who uses any rate of
6weight adjustment for moisture content other than the one
7prescribed by this subsection is commits a fraudulent practice
8as defined in section 714.8. The person shall post on the
9business premises in a conspicuous place notice of the rate
10of adjustment for moisture content that is as prescribed by
11this subsection. Failure The person who fails to make this
12disclosure is commits a simple misdemeanor.
132. A person who, in connection with the receipt of grain for
14storage, processing, or sale, adjusts the quantity of the grain
15received to compensate for losses to be incurred during the
16handling, processing, or storage of the grain shall post on the
17business premises in a conspicuous place notice of the rate of
18adjustment to be made for this shrinkage. Failure The person
19who fails to make the required this disclosure is commits a
20simple misdemeanor.
213. A person who adjusts the scale weight of corn or soybeans
22both grain for moisture content and for handling, processing,
23or storage losses may combine the two adjustment factors into
24a single factor and may use this resulting factor to compute
25the amount of weight adjustment in connection with storage,
26processing, or sale transactions, provided that the person
27shall post on the business premises in a conspicuous place a
28notice that discloses the moisture shrinkage factor prescribed
29by subsection 1, the handling shrinkage factor to be imposed,
30and the single factor that results from combining these
31factors. Failure The person who fails to make the required
32 this disclosure is commits a simple misdemeanor.
33 Sec. 12. Section 203C.36, subsection 2, paragraph a,
34subparagraph (3), Code 2023, is amended to read as follows:
35(3) Uses a scale weight ticket, warehouse receipt, or
-6-1other document in violation of this chapter or requirements
2established by the department under this chapter.
3PART C
4INDEMNITY FUND
5 Sec. 13. Section 203D.1, Code 2023, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 14A. “Scale weight ticket” means the same
8as defined in section 203C.1.
9 Sec. 14. Section 203D.3, subsection 3, Code 2023, is amended
10to read as follows:
113. The fiscal assessment year of the fund begins July
12 September 1 and ends on June 30 August 31. Fiscal Assessment
13 quarters of the fund begin July September 1, October December
14 1, January March 1, and April June 1. The finances of the fund
15shall be calculated on an accrual basis in accordance with
16generally accepted accounting principles.
17 Sec. 15. Section 203D.3A, subsection 1, paragraph b,
18unnumbered paragraph 1, Code 2023, is amended to read as
19follows:
20A licensee shall pay a participation fee on four successive
21installment dates, with each installment date occurring on the
22last date of the fund’s fiscal assessment quarter as provided
23in section 203D.3. The licensee shall pay twenty-five percent
24of the total participation fee assessed on each installment
25date. However, nothing in this subsection prevents a licensee
26from paying the participation fee on an accelerated basis. A
27licensee shall pay the first installment on the last date of
28the fund’s fiscal assessment quarter immediately following the
29licensee’s anniversary date.
30 Sec. 16. Section 203D.5, subsection 1, Code 2023, is amended
31to read as follows:
321. The board shall annually review the debits of and credits
33to the grain depositors and sellers indemnity fund created
34in section 203D.3 and shall determine whether to impose the
35participation fee and per-bushel fee as provided in section
-7-1203D.3A, make adjustments to the fees effective on the previous
2July September 1, or waive the fees as necessary to comply with
3this section. The board shall make the determination not later
4than May 1 of each year. The board shall impose the fees or
5adjust the fees effective on the previous July September 1 in
6accordance with chapter 17A. The imposition or adjustment of
7the fees shall become effective as follows:
8a. For the participation fee, on the following July
9 September 1. However, the licensee shall continue to pay the
10participation fee at the rate in effect on the prior July
11 September 1, until the licensee has paid the amount owing.
12b. For a per-bushel fee, on the following July September 1.
13 Sec. 17. Section 203D.5, subsection 4, Code 2023, is amended
14to read as follows:
154. If on the last date of the fund’s fiscal assessment year
16as provided in section 203D.3 the assets of the fund exceed
17eight million dollars, less any encumbered balances or pending
18or unsettled claims, all of the following apply:
19a. The participation fee shall be waived and shall not be
20assessable or owing for the following fiscal assessment year
21of the fund. However, the licensee shall continue to pay any
22owing participation fee that was in effect on the prior July
23 September 1.
24b. The per-bushel fee shall be waived and shall not be
25assessable or owing.
26part D
27EFFECTIVE DATE
28 Sec. 18. EFFECTIVE DATE. This division of this Act, being
29deemed of immediate importance, takes effect upon enactment.
30DIVISION III
31WEIGHTS AND MEASURES
32PART A
33LICENSING, INSPECTIONS, AND FEES
34 Sec. 19. Section 214.2, Code 2023, is amended to read as
35follows:
-8- 1214.2 License.
21. A person who uses or displays for use any commercial
3weighing and measuring device, as defined in section 215.1,
4shall secure must be issued a license from by the department
5for that device. The department shall issue the license after
6inspecting the device.
72. a. Except as provided in paragraph “b”, a license issued
8under subsection 1 shall expire on December 31 of each year.
9b. A license issued under subsection 1 for a motor fuel pump
10shall expire on June 30 of each year.
11 Sec. 20. Section 214.3, subsection 1, Code 2023, is amended
12by striking the subsection.
13 Sec. 21. Section 214.3, subsection 2, Code 2023, is amended
14to read as follows:
152. The A license inspection fee is imposed on a person
16who uses or displays for use a commercial weighing and
17measuring device. The license fee is due the day the device
18is placed into service department issues the license. A
19license inspection fee shall be charged to the person owning
20or operating a commercial weighing and measuring device
21inspected The amount of the license fee shall be calculated in
22accordance with the class or section for devices as established
23by handbook 44 of the United States national institute of
24standards and technology.
25 Sec. 22. Section 214.11, subsection 1, Code 2023, is amended
26to read as follows:
271. The department shall provide for annual biennial
28 inspections of all motor fuel pumps, including but not limited
29to motor fuel blender pumps, licensed under this chapter.
30Inspections shall be for the purpose of determining the
31accuracy and correctness of motor fuel pumps. For that purpose
32the department’s inspectors may enter upon the premises of any
33 a wholesale dealer or a retail dealer motor fuel site.
34 Sec. 23. Section 215.2, Code 2023, is amended to read as
35follows:
-9- 1215.2 Special inspection tests — request — fees.
21. The owner or servicer of a commercial weighing and
3measuring device may request the department conduct a special
4inspection test of the device to determine its accuracy and
5correctness.
62. The fee for special tests, including but not limited to,
7using state inspection equipment, for the calibration, testing,
8certification, or repair conducting a special inspection test
9 of a commercial weighing and measuring device shall be paid
10by the owner or servicer or person requesting the special
11inspection test in accordance with the following schedule:
121. a. Class S, scales, seventy-five dollars per hour.
132. b. Class M, meters, fifty-two dollars and fifty cents
14per hour.
15 Sec. 24. REPEAL. Section 215.12, Code 2023, is repealed.
16PART B
17MOTOR FUEL STANDARDS AND CLASSIFICATIONS
18 Sec. 25. Section 159A.6, subsection 1, paragraph c, Code
192023, is amended to read as follows:
20c. Develop standards for decals required pursuant to
21section 214A.16 214A.21A, which shall be designed to promote
22the advantages of using renewable fuels. The standards may be
23incorporated within a model decal adopted by the office.
24 Sec. 26. Section 214A.1, subsection 2, Code 2023, is amended
25to read as follows:
262. “ASTM international” means a nonprofit organization,
27previously named the American society for testing and materials
28international.
29 Sec. 27. Section 214A.1, Code 2023, is amended by adding the
30following new subsections:
31 NEW SUBSECTION. 33A. a. “Renewable diesel” means a motor
32fuel for use in an internal combustion engine and ignited by
33pressure without the presence of an electric spark, which
34is produced from nonfossil renewable resources, including
35agricultural plants, animal fats, residue, and waste generated
-10-1from the production, processing, and marketing of agricultural
2products, and other renewable resources.
3b. “Renewable diesel” must meet the standards provided in
4section 214A.2.
5c. “Renewable diesel” does not include any of the following:
6(1) Biodiesel.
7(2) A fuel that has been coprocessed.
8 NEW SUBSECTION. 33B. “Renewable diesel blended fuel” means
9a blend of renewable diesel with petroleum-based diesel fuel,
10biodiesel, or a combination of petroleum-based diesel fuel and
11biodiesel, which meets the standards, including separately
12the standard for its renewable diesel component, provided in
13section 214A.2.
14 Sec. 28. Section 214A.2, subsection 4, Code 2023, is amended
15by adding the following new paragraph:
16 NEW PARAGRAPH. c. (1) If the motor fuel is advertised
17for sale or sold as renewable diesel or renewable diesel
18blended fuel, the motor fuel must meet departmental standards
19based in part or in whole on specifications adopted by ASTM
20international for renewable diesel or renewable diesel blended
21motor fuel, to every extent applicable, as determined by the
22department subject to subparagraph (2).
23(2) Renewable diesel must at least meet departmental
24standards based in whole or in part on ASTM international
25specification D975, or a successor ASTM international
26specification, established by rule. The specification shall
27apply to renewable diesel before it leaves its place of
28manufacture.
29 Sec. 29. Section 214A.2, subsection 5, Code 2023, is amended
30by adding the following new paragraph:
31 NEW PARAGRAPH. d. (1) Renewable diesel shall be classified
32RD-100.
33(2) Renewable diesel blended fuel shall be classified RD-xx
34where “xx” is the volume percent of renewable diesel.
35 Sec. 30. Section 214A.2B, Code 2023, is amended to read as
-11-1follows:
2214A.2B Laboratory for motor fuel and biofuels fuels,
3biofuels, and renewable fuels.
4A laboratory for motor fuel and biofuels is established at a
5community college which is engaged in biofuels testing on July
61, 2007, and which testing includes but is not limited to The
7Iowa central fuel testing laboratory at Iowa central community
8college shall test motor fuels, biofuels, and renewable fuels,
9including but not limited to B-20 biodiesel fuel testing for
10use by motor trucks and the ability of biofuels to meet ASTM
11international standards. The laboratory shall conduct the
12 testing of motor fuel fuels sold in this state and biofuel
13which is biofuels blended in with motor fuel fuels in this
14state to ensure that the motor fuel or fuels, biofuels, and
15renewable fuels meet the requirements departmental standards
16 in section 214A.2.
17PART C
18CODE EDITOR DIRECTIVE
19 Sec. 31. CODE EDITOR DIRECTIVE.
201. The Code editor is directed to make the following
21transfer:
22Section 214A.16 to section 214A.21A.
232. The Code editor shall correct internal references in the
24Code and in any enacted legislation as necessary due to the
25enactment of this section.
26DIVISION IV
27WATER QUALITY
28 Sec. 32. Section 466B.43, subsection 6, Code 2023, is
29amended to read as follows:
306. By October 1, 2019, and each October 1 thereafter of
31each year, the division shall submit a report to the governor
32and the general assembly itemizing expenditures, by hydrologic
33unit code 8 watershed, under the programs, if any, during the
34previous fiscal year, if any.
35 Sec. 33. Section 466B.44, subsection 5, Code 2023, is
-12-1amended to read as follows:
25. Notwithstanding any other provision in this section
3to the contrary, beginning on July 1, 2018, the division
4may use any amount available to support the water quality
5urban infrastructure program to instead extend do any of the
6following:
7a. Extendand support the three-year data collection of
8in-field agricultural practices project as enacted in 2015 Iowa
9Acts, ch.132, §18.
10b. Support water quality agriculture infrastructure programs
11created in section 466B.43, to the extent that moneys are not
12obligated or encumbered during a fiscal year to adequately
13support all urban infrastructure program projects that meet the
14division’s requirements.
15 Sec. 34. Section 466B.44, subsection 7, Code 2023, is
16amended to read as follows:
177. By October 1, 2019, and by October 1 of each year
18thereafter, the division shall submit a report to the governor
19and the general assembly itemizing expenditures under the
20program, if any, during the previous fiscal year.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24GENERAL. This bill relates to a number of regulations
25and programs administered and enforced by the department of
26agriculture and land stewardship (DALS). Specifically, the
27bill amends provisions regulating commercial establishments
28including pet shops engaged in the business of purchasing and
29transferring (by sale or exchange) vertebrate animals (animals)
30other than agricultural animals (Code chapter 162). The
31bill regulates grain transactions including by grain dealers
32(dealers) and warehouse operators (operators) (Code chapters
33203 and 203C) and the indemnification of losses by sellers or
34depositors from the grain depositors and sellers indemnity fund
35(Code chapter 203D). The bill also regulates the commercial
-13-1use of weights and measures, including motor fuel pumps (fuel
2pumps) that are part of motor fuel dispensers (dispensers),
3and types of motor fuel advertised for sale (Code chapters
4214, 214A, and 215), including diesel fuel for use in certain
5internal combustion engines. Finally, the bill provides for
6the expenditure of moneys for surface water quality initiatives
7(initiatives) in order to assess and reduce nutrients in this
8state’s watersheds (Code chapter 466B) in conformance with the
9Iowa nutrient reduction strategy (Code section 455B.171).
10COMMERCIAL ESTABLISHMENTS — PET SHOPS. Under current law,
11a business classified as a pet shop is a type of establishment
12required to be annually licensed (Code section 162.5) and pay
13an associated fee (Code section 162.2B). A business is not
14regulated as a pet shop if, during the prior 12-month period,
15the business either receives less than $500 or transfers
16less than six animals. The bill doubles the exemption
17qualifications to less than $1,000 or less than 12 animals
18(amended Code section 162.2).
19COMMERCIAL ESTABLISHMENTS — PENALTY. A person who operates
20as a pet shop in violation of licensing requirements is guilty
21of a simple misdemeanor (Code section 162.13).
22GRAIN REGULATION — BACKGROUND. As part of a grain
23transaction, an operator issues a prenumbered scale
24weight ticket to a depositor as evidence of stored grain.
25Alternatively, the operator may issue a warehouse receipt as a
26form which may be a document of title and therefore negotiable
27(Code chapter 554, Art.7). In order for a seller or depositor
28to be indemnified for a loss by the fund, the dollar value of
29a claim for transferred grain is based on either a warehouse
30receipt or scale weight ticket (Code section 203D.6).
31GRAIN REGULATION — TERMS. Currently, several different
32terms are used to describe the same item. The bill changes
33the terms to be uniform, including “scale ticket” to “scale
34weight ticket” and “Iowa grain depositors and sellers indemnity
35fund” to “grain depositors and sellers indemnity fund”, which
-14-1are both defined (amended Code sections 203.1, 203.5, 203.11,
2203.17, 203C.5, 203C.6, 203C.17, 203C.36, and 203D.1).
3GRAIN REGULATION — GRAIN MOISTURE CONTENT. A person
4receiving corn or soybeans as part of a transaction involving
5storage, processing, or sale may adjust the scale weight to
6account for moisture content (i.e., reducing the scale weight
7by a special factor calculated for each 1 percent of moisture
8content). The bill provides that the adjustment applies to all
9grain in which there are standards established by the United
10States department of agriculture (Code sections 203.1 and
11203C.1 and amended Code sections 203.20 and 203C.25).
12GRAIN REGULATION — CREDIT-SALE CONTRACT. A buyer and
13seller of grain may execute a credit-sale contract, also known
14as a price-later contract, for transfer of title, in which the
15seller delivers the grain to the buyer who pays the seller
16a price more than 30 days later (Code section 203.1). In
17order to engage in these transactions, a buyer who is a grain
18dealer must maintain a class 1 license requiring a net worth
19of at least $75,000 (Code section 203.3(4)), the parties must
20execute a contract form meeting statutory requirements (amended
21Code section 203.15(2)), and the grain is not considered as
22purchased grain covered by the grain depositors and sellers
23indemnity fund (Code section 203D.6(4)). The bill extends the
24maximum period of a credit-sale contract’s duration, requiring
25later payment for the delivered grain, from 12 to 15 months
26(amended Code section 203.15(2)).
27GRAIN REGULATION — OPEN STORAGE. An operator may retain
28delivered grain in open storage (meaning without issuing a
29warehouse receipt or making a purchase) subject to certain
30limitations. Grain subject to a scale weight ticket without
31having the price fixed and documented by the operator is
32considered to be retained in open storage. Currently, if
33grain is retained in open storage, the operator must issue the
34depositor a warehouse receipt within one year of the grain’s
35delivery date, unless the depositor signs a statement refusing
-15-1it. The bill eliminates this requirement. Upon request, the
2operator must still issue the depositor a warehouse receipt
3(amended Code section 203C.17).
4GRAIN REGULATION — PENALTIES. A person who violates Code
5chapter 203 or 203C is guilty of a simple misdemeanor (Code
6sections 203.11 and 203C.36).
7GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND. The fund
8compensates a “depositor” storing grain with a licensed
9operator who fails to return possession of the grain to
10the depositor, or a “seller” selling grain to a licensed
11dealer incurred when the dealer fails to make payment for the
12purchased grain (Code section 203D.6). The fund is supported
13by fees paid by operators and dealers. A dealer is assessed a
14participation fee and per-bushel fee based on purchased grain.
15An operator is assessed a participation fee based on warehouse
16storage capacity (Code sections 203D.3A and 203D.5). The Iowa
17grain indemnity fund board (board) acts on behalf of the fund,
18including by establishing the rate of fees to be assessed and
19owing each 12-month period beginning July 1 and ending June 30
20which are divided into 3-month quarters (subject to a floor
21of $3 million when fees must be assessed and a ceiling of $8
22million when fees can no longer be assessed). The bill changes
23the 12-month periods to begin September 1 and end August 31,
24and makes coordinating changes to when the quarterly periods
25begin and end.
26WEIGHTS AND MEASURES. A person who uses or displays a
27commercial weighing or measuring device (device) must be
28licensed. The term of the license is 12 months. Generally,
29the term is on a calendar year basis (January 1 to December
3031) but for motor fuel pumps the term is on a fiscal year
31basis (July 1 to June 30). A fee is required for the issuance
32of the license and an inspection (license inspection fee)
33first due when the device is placed into service. DALS is
34expressly required to inspect motor fuel pumps each year. The
35bill provides that the fee is for the issuance of the license
-16-1rather than the inspection, the license fee is due when the
2license is issued, and that DALS must inspect motor fuel pumps
3on a biennial basis (amended Code sections 214.2, 214.3, and
4214.11). The bill also eliminates a requirement that persons
5engaged in repairing scales must file a bond with the state
6(repealed Code section 215.12).
7WEIGHTS AND MEASURES — MOTOR FUEL STANDARDS AND
8CLASSIFICATIONS. Motor fuels include fossil (petroleum) based
9gasoline and diesel fuel as well as certain biofuel components
10derived from renewable (nonpetroleum) resources such as ethanol
11classified as E-100 and biodiesel comprised of monoalkyl esters
12of long-chain fatty acids and classified as B-100. Both types
13of substances are used to produce renewable fuels (e.g., E-15
14or B-5) subject to separate departmental standards based on
15ASTM international (ASTM) specifications. The bill regulates
16another liquid fuel referred to renewable diesel classified as
17RD-100 that may be used as a motor fuel or a blending component
18and classified as RD-xx. RD-100 is produced from nonfossil
19renewable resources but is not biodiesel due to manufacturing
20processes. Petroleum-based diesel fuel and RD-100 are subject
21to the same ASTM specification D975 while B-100 is subject to
22ASTM specification D6751 (amended Code sections 214A.1 and
23214A.2).
24WEIGHTS AND MEASURES — TESTING LABORATORY. The bill
25expressly recognizes the Iowa central fuel testing laboratory
26at Iowa central community college as the official laboratory
27for testing motor fuels, biofuels, and renewable fuels (amended
28Code section 214A.2B).
29WEIGHTS AND MEASURES — CODE EDITOR DIRECTIVE. The bill
30transfers Code section 214A.16 from subchapter I to subchapter
31II of Code chapter 214A. The Code section regulates a notice
32required to be posted for consumers purchasing renewable fuels.
33In 2022, the general assembly enacted 2022 Iowa Acts, chapter
341152, which reorganized Code chapter 214A. Subchapter I
35regulates general matters such as standards and classifications
-17-1and subchapter II regulates the advertisement, sale, and use
2of motor fuel.
3WEIGHTS AND MEASURES — PENALTY. A person who fails to allow
4for an inspection of a motor fuel pump is guilty of a simple
5misdemeanor.
6WATER QUALITY. DALS regulates two water quality
7initiatives, including water quality agriculture infrastructure
8programs (amended Code section 466B.43) and the water quality
9urban infrastructure program (amended Code section 466B.44).
10The initiative is supported by the water quality initiative
11fund (Code section 466B.45), the water quality infrastructure
12fund (Code section 8.57B), and the water quality financial
13assistance fund (Code section 16.134A). Moneys in the last
14fund (15 percent) are appropriated to support the water quality
15urban infrastructure program. The bill provides that if moneys
16remain after adequately supporting all water quality urban
17infrastructure program projects for the fiscal year, DALS may
18use those moneys to instead support water quality agriculture
19infrastructure programs. The bill also eliminates dates in
20several Code sections that are now extraneous.
21APPLICABLE PENALTIES. A simple misdemeanor is punishable by
22confinement for no more than 30 days and a fine of at least $105
23but not more than $855.
-18-da/ns
2and enforced by the department of agriculture and land
3stewardship, providing fees, providing for the allocation of
4moneys, making penalties applicable, and including effective
5date provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2REGULATION OF COMMERCIAL ESTABLISHMENTS
3 Section 1. Section 162.2, subsection 19, Code 2023, is
4amended by striking the subsection and inserting in lieu
5thereof the following:
619. “Pet shop” means a facility where vertebrate animals,
7excluding fish, not born and reared on the facility’s premises
8are bought, sold, exchanged, or offered for sale or exchange to
9the public, at retail. “Pet shop” does not include a facility
10if one of the following applies:
11a. The facility receives less than one thousand dollars from
12the sale or exchange of vertebrate animals, excluding fish,
13during a twelve-month period.
14b. The facility sells or exchanges less than twelve
15vertebrate animals, excluding fish, during a twelve-month
16period.
17DIVISION II
18GRAIN REGULATION
19PART A
20GRAIN DEALERS
21 Sec. 2. Section 203.1, Code 2023, is amended by adding the
22following new subsection:
23 NEW SUBSECTION. 12A. “Scale weight ticket” means the same
24as defined in section 203C.1.
25 Sec. 3. Section 203.5, subsection 8, paragraph a, Code 2023,
26is amended to read as follows:
27a. The applicant has caused liability to the Iowa grain
28depositors and sellers indemnity fund in regard to a license
29issued under this chapter or chapter 203C, and the liability
30has not been discharged, settled, or satisfied.
31 Sec. 4. Section 203.11, subsection 2, paragraph a,
32subparagraph (3), Code 2023, is amended to read as follows:
33(3) Uses a scale weight ticket or credit-sale contract in
34violation of this chapter or a requirement established by the
35department under this chapter.
-1-1 Sec. 5. Section 203.15, subsection 2, paragraph f, Code
22023, is amended to read as follows:
3f. The duration of the credit-sale contract, which shall
4not exceed twelve fifteen months from the date the contract is
5executed.
6 Sec. 6. Section 203.17, Code 2023, is amended to read as
7follows:
8203.17 Documents and records.
91. The department may adopt rules specifying the form,
10content, use, and maintenance of documents issued by a grain
11dealer under this chapter including but not limited to scale
12weight tickets, settlement sheets, daily position records, and
13credit-sale contracts. The department may adopt rules for
14both printed and electronic documents, including rules for
15the transmission, receipt, authentication, and archiving of
16electronically generated or stored documents.
172. All scale weight ticket forms in the possession of a
18grain dealer shall have been permanently and consecutively
19numbered at the time of printing. A grain dealer shall
20maintain an accurate record of all scale weight ticket numbers.
21The record shall include the disposition of each numbered form,
22whether issued, destroyed, or otherwise disposed of.
23 Sec. 7. Section 203.20, Code 2023, is amended to read as
24follows:
25203.20 Shrinkage adjustments — disclosures — penalties.
261. A person who, in connection with the receipt of
27corn or soybeans grain for storage, processing, or sale,
28adjusts the scale weight of the grain to compensate for the
29moisture content of the grain shall compute the amount of
30the adjustment by multiplying the scale weight of the grain
31by that factor which results in a rate of adjustment of one
32and eighteen hundredths percent of weight per one percent of
33moisture content. The use of person who uses any rate of
34weight adjustment for moisture content other than the one
35prescribed by this subsection is commits a fraudulent practice
-2- 1as defined in section 714.8. The person shall post on the
2business premises in a conspicuous place notice of the rate
3of adjustment for moisture content that is as prescribed by
4this subsection. Failure The person who fails to make this
5disclosure is commits a simple misdemeanor.
62. A person who, in connection with the receipt of grain for
7storage, processing, or sale, adjusts the quantity of the grain
8received to compensate for losses to be incurred during the
9handling, processing, or storage of the grain shall post on the
10business premises in a conspicuous place notice of the rate of
11adjustment to be made for this shrinkage. Failure The person
12who fails to make the required this disclosure is commits a
13simple misdemeanor.
143. A person who adjusts the scale weight of corn or soybeans
15both grain for moisture content and for handling, processing,
16or storage losses may combine the two adjustment factors into
17a single factor and may use this resulting factor to compute
18the amount of weight adjustment in connection with storage,
19processing, or sale transactions, provided that the person
20shall post on the business premises in a conspicuous place a
21notice that discloses the moisture shrinkage factor prescribed
22by subsection 1, the handling shrinkage factor to be imposed,
23and the single factor that results from combining these
24factors. Failure The person who fails to make the required
25 this disclosure is commits a simple misdemeanor.
26Part b
27WAREHOUSE OPERATORS
28 Sec. 8. Section 203C.5, subsection 2, Code 2023, is amended
29to read as follows:
302. a. The department may adopt rules specifying the
31form, content, and use of documents issued by a warehouse
32operator under this chapter including but not limited to scale
33weight tickets, warehouse receipts, settlement sheets, and
34daily position records. The department may adopt rules for
35both printed and electronic documents, including rules for
-3-1the transmission, receipt, authentication, and archiving of
2electronically generated or stored documents.
3b. All scale weight ticket forms and warehouse receipt
4forms in the possession of a warehouse operator shall have been
5permanently and consecutively numbered at the time of printing.
6A warehouse operator shall maintain an accurate record of
7the numbers of these documents. The record shall include
8the disposition of each form, whether issued, destroyed, or
9otherwise disposed of. The department may by rule require this
10use of prenumbered forms and recording for documents other than
11scale weight tickets and warehouse receipts.
12 Sec. 9. Section 203C.6, subsection 8, paragraph a, Code
132023, is amended to read as follows:
14a. The applicant has caused liability to the Iowa grain
15depositors and sellers indemnity fund through operations under
16a license issued under this chapter or chapter 203, and the
17liability has not been discharged, settled, or satisfied.
18 Sec. 10. Section 203C.17, subsections 1, 2, 3, 4, and 5,
19Code 2023, are amended to read as follows:
201. Any grain which has been received at any Grain deposited
21with a licensed warehouse operator for which the actual sale
22price is has not been fixed and either proper documentation
23made has not been furnished or payment has not been made shall
24be construed to be grain held for storage within the meaning of
25this chapter. Grain may be held considered stored grain and
26may be retained in open storage or placed on under warehouse
27receipt. A warehouse receipt shall be issued for all grain
28held in open storage within one year from the date of delivery
29to the warehouse, unless the depositor has signed a statement
30that the depositor does not desire a warehouse receipt. A The
31licensed warehouse operator shall issue a warehouse receipt
32shall be issued to the depositor upon request by the depositor.
33The warehouse operator’s tariff shall apply for to any grain
34that is retained in open storage or placed under warehouse
35receipt as provided in section 203C.18.
-4- 12. Bulk grain deposited with a licensed warehouse operator
2for processing, cleaning, drying, shipping for the account of
3the depositor, or any other purpose shall be removed within
4thirty days from the date of deposit or such grain shall be
5determined as considered stored grain and the. The warehouse
6operator’s tariff charges shall apply to the bulk grain as
7provided in section 203C.28.
83. Grain received on deposited and subject to a scale weight
9 ticket which that fails to have the price fixed and properly
10documented on the records of the licensed warehouse operator
11shall be construed to be retained in open storage.
124. All bulk grain whether retained in open storage and
13deposited subject to a scale weight ticket or having been
14 placed on under warehouse receipt is covered by the grain
15depositors and sellers indemnity fund created in as provided in
16 chapter 203D.
175. Any grain which has been received at any An unlicensed
18warehouse and for which the operator shall not retain deposited
19bulk grain, if its actual sale price has not been fixed, and
20payment for the bulk grain has not been made within thirty days
21from receipt of the grain its date of deposit, unless covered
22 purchased by a credit-sale contract, shall be construed to be
23unlawful storage within the meaning of this chapter. Bulk
24grain received at any An unlicensed warehouse for any operator
25who retains deposited bulk gain under any other purpose
26 circumstance must either be returned return the bulk grain to
27the depositor, or disposed of dispose of the bulk grain by
28order of the depositor, within thirty days from date of actual
29 the deposit of the bulk grain.
30 Sec. 11. Section 203C.25, Code 2023, is amended to read as
31follows:
32203C.25 Shrinkage adjustments — disclosures — penalties.
331. A person who, in connection with the receipt of
34corn or soybeans grain for storage, processing, or sale,
35adjusts the scale weight of the grain to compensate for the
-5-1moisture content of the grain shall compute the amount of
2the adjustment by multiplying the scale weight of the grain
3by that factor which results in a rate of adjustment of one
4and eighteen hundredths percent of weight per one percent of
5moisture content. The use of person who uses any rate of
6weight adjustment for moisture content other than the one
7prescribed by this subsection is commits a fraudulent practice
8as defined in section 714.8. The person shall post on the
9business premises in a conspicuous place notice of the rate
10of adjustment for moisture content that is as prescribed by
11this subsection. Failure The person who fails to make this
12disclosure is commits a simple misdemeanor.
132. A person who, in connection with the receipt of grain for
14storage, processing, or sale, adjusts the quantity of the grain
15received to compensate for losses to be incurred during the
16handling, processing, or storage of the grain shall post on the
17business premises in a conspicuous place notice of the rate of
18adjustment to be made for this shrinkage. Failure The person
19who fails to make the required this disclosure is commits a
20simple misdemeanor.
213. A person who adjusts the scale weight of corn or soybeans
22both grain for moisture content and for handling, processing,
23or storage losses may combine the two adjustment factors into
24a single factor and may use this resulting factor to compute
25the amount of weight adjustment in connection with storage,
26processing, or sale transactions, provided that the person
27shall post on the business premises in a conspicuous place a
28notice that discloses the moisture shrinkage factor prescribed
29by subsection 1, the handling shrinkage factor to be imposed,
30and the single factor that results from combining these
31factors. Failure The person who fails to make the required
32 this disclosure is commits a simple misdemeanor.
33 Sec. 12. Section 203C.36, subsection 2, paragraph a,
34subparagraph (3), Code 2023, is amended to read as follows:
35(3) Uses a scale weight ticket, warehouse receipt, or
-6-1other document in violation of this chapter or requirements
2established by the department under this chapter.
3PART C
4INDEMNITY FUND
5 Sec. 13. Section 203D.1, Code 2023, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 14A. “Scale weight ticket” means the same
8as defined in section 203C.1.
9 Sec. 14. Section 203D.3, subsection 3, Code 2023, is amended
10to read as follows:
113. The fiscal assessment year of the fund begins July
12 September 1 and ends on June 30 August 31. Fiscal Assessment
13 quarters of the fund begin July September 1, October December
14 1, January March 1, and April June 1. The finances of the fund
15shall be calculated on an accrual basis in accordance with
16generally accepted accounting principles.
17 Sec. 15. Section 203D.3A, subsection 1, paragraph b,
18unnumbered paragraph 1, Code 2023, is amended to read as
19follows:
20A licensee shall pay a participation fee on four successive
21installment dates, with each installment date occurring on the
22last date of the fund’s fiscal assessment quarter as provided
23in section 203D.3. The licensee shall pay twenty-five percent
24of the total participation fee assessed on each installment
25date. However, nothing in this subsection prevents a licensee
26from paying the participation fee on an accelerated basis. A
27licensee shall pay the first installment on the last date of
28the fund’s fiscal assessment quarter immediately following the
29licensee’s anniversary date.
30 Sec. 16. Section 203D.5, subsection 1, Code 2023, is amended
31to read as follows:
321. The board shall annually review the debits of and credits
33to the grain depositors and sellers indemnity fund created
34in section 203D.3 and shall determine whether to impose the
35participation fee and per-bushel fee as provided in section
-7-1203D.3A, make adjustments to the fees effective on the previous
2July September 1, or waive the fees as necessary to comply with
3this section. The board shall make the determination not later
4than May 1 of each year. The board shall impose the fees or
5adjust the fees effective on the previous July September 1 in
6accordance with chapter 17A. The imposition or adjustment of
7the fees shall become effective as follows:
8a. For the participation fee, on the following July
9 September 1. However, the licensee shall continue to pay the
10participation fee at the rate in effect on the prior July
11 September 1, until the licensee has paid the amount owing.
12b. For a per-bushel fee, on the following July September 1.
13 Sec. 17. Section 203D.5, subsection 4, Code 2023, is amended
14to read as follows:
154. If on the last date of the fund’s fiscal assessment year
16as provided in section 203D.3 the assets of the fund exceed
17eight million dollars, less any encumbered balances or pending
18or unsettled claims, all of the following apply:
19a. The participation fee shall be waived and shall not be
20assessable or owing for the following fiscal assessment year
21of the fund. However, the licensee shall continue to pay any
22owing participation fee that was in effect on the prior July
23 September 1.
24b. The per-bushel fee shall be waived and shall not be
25assessable or owing.
26part D
27EFFECTIVE DATE
28 Sec. 18. EFFECTIVE DATE. This division of this Act, being
29deemed of immediate importance, takes effect upon enactment.
30DIVISION III
31WEIGHTS AND MEASURES
32PART A
33LICENSING, INSPECTIONS, AND FEES
34 Sec. 19. Section 214.2, Code 2023, is amended to read as
35follows:
-8- 1214.2 License.
21. A person who uses or displays for use any commercial
3weighing and measuring device, as defined in section 215.1,
4shall secure must be issued a license from by the department
5for that device. The department shall issue the license after
6inspecting the device.
72. a. Except as provided in paragraph “b”, a license issued
8under subsection 1 shall expire on December 31 of each year.
9b. A license issued under subsection 1 for a motor fuel pump
10shall expire on June 30 of each year.
11 Sec. 20. Section 214.3, subsection 1, Code 2023, is amended
12by striking the subsection.
13 Sec. 21. Section 214.3, subsection 2, Code 2023, is amended
14to read as follows:
152. The A license inspection fee is imposed on a person
16who uses or displays for use a commercial weighing and
17measuring device. The license fee is due the day the device
18is placed into service department issues the license. A
19license inspection fee shall be charged to the person owning
20or operating a commercial weighing and measuring device
21inspected The amount of the license fee shall be calculated in
22accordance with the class or section for devices as established
23by handbook 44 of the United States national institute of
24standards and technology.
25 Sec. 22. Section 214.11, subsection 1, Code 2023, is amended
26to read as follows:
271. The department shall provide for annual biennial
28 inspections of all motor fuel pumps, including but not limited
29to motor fuel blender pumps, licensed under this chapter.
30Inspections shall be for the purpose of determining the
31accuracy and correctness of motor fuel pumps. For that purpose
32the department’s inspectors may enter upon the premises of any
33 a wholesale dealer or a retail dealer motor fuel site.
34 Sec. 23. Section 215.2, Code 2023, is amended to read as
35follows:
-9- 1215.2 Special inspection tests — request — fees.
21. The owner or servicer of a commercial weighing and
3measuring device may request the department conduct a special
4inspection test of the device to determine its accuracy and
5correctness.
62. The fee for special tests, including but not limited to,
7using state inspection equipment, for the calibration, testing,
8certification, or repair conducting a special inspection test
9 of a commercial weighing and measuring device shall be paid
10by the owner or servicer or person requesting the special
11inspection test in accordance with the following schedule:
121. a. Class S, scales, seventy-five dollars per hour.
132. b. Class M, meters, fifty-two dollars and fifty cents
14per hour.
15 Sec. 24. REPEAL. Section 215.12, Code 2023, is repealed.
16PART B
17MOTOR FUEL STANDARDS AND CLASSIFICATIONS
18 Sec. 25. Section 159A.6, subsection 1, paragraph c, Code
192023, is amended to read as follows:
20c. Develop standards for decals required pursuant to
21section 214A.16 214A.21A, which shall be designed to promote
22the advantages of using renewable fuels. The standards may be
23incorporated within a model decal adopted by the office.
24 Sec. 26. Section 214A.1, subsection 2, Code 2023, is amended
25to read as follows:
262. “ASTM international” means a nonprofit organization,
27previously named the American society for testing and materials
28international.
29 Sec. 27. Section 214A.1, Code 2023, is amended by adding the
30following new subsections:
31 NEW SUBSECTION. 33A. a. “Renewable diesel” means a motor
32fuel for use in an internal combustion engine and ignited by
33pressure without the presence of an electric spark, which
34is produced from nonfossil renewable resources, including
35agricultural plants, animal fats, residue, and waste generated
-10-1from the production, processing, and marketing of agricultural
2products, and other renewable resources.
3b. “Renewable diesel” must meet the standards provided in
4section 214A.2.
5c. “Renewable diesel” does not include any of the following:
6(1) Biodiesel.
7(2) A fuel that has been coprocessed.
8 NEW SUBSECTION. 33B. “Renewable diesel blended fuel” means
9a blend of renewable diesel with petroleum-based diesel fuel,
10biodiesel, or a combination of petroleum-based diesel fuel and
11biodiesel, which meets the standards, including separately
12the standard for its renewable diesel component, provided in
13section 214A.2.
14 Sec. 28. Section 214A.2, subsection 4, Code 2023, is amended
15by adding the following new paragraph:
16 NEW PARAGRAPH. c. (1) If the motor fuel is advertised
17for sale or sold as renewable diesel or renewable diesel
18blended fuel, the motor fuel must meet departmental standards
19based in part or in whole on specifications adopted by ASTM
20international for renewable diesel or renewable diesel blended
21motor fuel, to every extent applicable, as determined by the
22department subject to subparagraph (2).
23(2) Renewable diesel must at least meet departmental
24standards based in whole or in part on ASTM international
25specification D975, or a successor ASTM international
26specification, established by rule. The specification shall
27apply to renewable diesel before it leaves its place of
28manufacture.
29 Sec. 29. Section 214A.2, subsection 5, Code 2023, is amended
30by adding the following new paragraph:
31 NEW PARAGRAPH. d. (1) Renewable diesel shall be classified
32RD-100.
33(2) Renewable diesel blended fuel shall be classified RD-xx
34where “xx” is the volume percent of renewable diesel.
35 Sec. 30. Section 214A.2B, Code 2023, is amended to read as
-11-1follows:
2214A.2B Laboratory for motor fuel and biofuels fuels,
3biofuels, and renewable fuels.
4A laboratory for motor fuel and biofuels is established at a
5community college which is engaged in biofuels testing on July
61, 2007, and which testing includes but is not limited to The
7Iowa central fuel testing laboratory at Iowa central community
8college shall test motor fuels, biofuels, and renewable fuels,
9including but not limited to B-20 biodiesel fuel testing for
10use by motor trucks and the ability of biofuels to meet ASTM
11international standards. The laboratory shall conduct the
12 testing of motor fuel fuels sold in this state and biofuel
13which is biofuels blended in with motor fuel fuels in this
14state to ensure that the motor fuel or fuels, biofuels, and
15renewable fuels meet the requirements departmental standards
16 in section 214A.2.
17PART C
18CODE EDITOR DIRECTIVE
19 Sec. 31. CODE EDITOR DIRECTIVE.
201. The Code editor is directed to make the following
21transfer:
22Section 214A.16 to section 214A.21A.
232. The Code editor shall correct internal references in the
24Code and in any enacted legislation as necessary due to the
25enactment of this section.
26DIVISION IV
27WATER QUALITY
28 Sec. 32. Section 466B.43, subsection 6, Code 2023, is
29amended to read as follows:
306. By October 1, 2019, and each October 1 thereafter of
31each year, the division shall submit a report to the governor
32and the general assembly itemizing expenditures, by hydrologic
33unit code 8 watershed, under the programs, if any, during the
34previous fiscal year, if any.
35 Sec. 33. Section 466B.44, subsection 5, Code 2023, is
-12-1amended to read as follows:
25. Notwithstanding any other provision in this section
3to the contrary, beginning on July 1, 2018, the division
4may use any amount available to support the water quality
5urban infrastructure program to instead extend do any of the
6following:
7a. Extendand support the three-year data collection of
8in-field agricultural practices project as enacted in 2015 Iowa
9Acts, ch.132, §18.
10b. Support water quality agriculture infrastructure programs
11created in section 466B.43, to the extent that moneys are not
12obligated or encumbered during a fiscal year to adequately
13support all urban infrastructure program projects that meet the
14division’s requirements.
15 Sec. 34. Section 466B.44, subsection 7, Code 2023, is
16amended to read as follows:
177. By October 1, 2019, and by October 1 of each year
18thereafter, the division shall submit a report to the governor
19and the general assembly itemizing expenditures under the
20program, if any, during the previous fiscal year.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24GENERAL. This bill relates to a number of regulations
25and programs administered and enforced by the department of
26agriculture and land stewardship (DALS). Specifically, the
27bill amends provisions regulating commercial establishments
28including pet shops engaged in the business of purchasing and
29transferring (by sale or exchange) vertebrate animals (animals)
30other than agricultural animals (Code chapter 162). The
31bill regulates grain transactions including by grain dealers
32(dealers) and warehouse operators (operators) (Code chapters
33203 and 203C) and the indemnification of losses by sellers or
34depositors from the grain depositors and sellers indemnity fund
35(Code chapter 203D). The bill also regulates the commercial
-13-1use of weights and measures, including motor fuel pumps (fuel
2pumps) that are part of motor fuel dispensers (dispensers),
3and types of motor fuel advertised for sale (Code chapters
4214, 214A, and 215), including diesel fuel for use in certain
5internal combustion engines. Finally, the bill provides for
6the expenditure of moneys for surface water quality initiatives
7(initiatives) in order to assess and reduce nutrients in this
8state’s watersheds (Code chapter 466B) in conformance with the
9Iowa nutrient reduction strategy (Code section 455B.171).
10COMMERCIAL ESTABLISHMENTS — PET SHOPS. Under current law,
11a business classified as a pet shop is a type of establishment
12required to be annually licensed (Code section 162.5) and pay
13an associated fee (Code section 162.2B). A business is not
14regulated as a pet shop if, during the prior 12-month period,
15the business either receives less than $500 or transfers
16less than six animals. The bill doubles the exemption
17qualifications to less than $1,000 or less than 12 animals
18(amended Code section 162.2).
19COMMERCIAL ESTABLISHMENTS — PENALTY. A person who operates
20as a pet shop in violation of licensing requirements is guilty
21of a simple misdemeanor (Code section 162.13).
22GRAIN REGULATION — BACKGROUND. As part of a grain
23transaction, an operator issues a prenumbered scale
24weight ticket to a depositor as evidence of stored grain.
25Alternatively, the operator may issue a warehouse receipt as a
26form which may be a document of title and therefore negotiable
27(Code chapter 554, Art.7). In order for a seller or depositor
28to be indemnified for a loss by the fund, the dollar value of
29a claim for transferred grain is based on either a warehouse
30receipt or scale weight ticket (Code section 203D.6).
31GRAIN REGULATION — TERMS. Currently, several different
32terms are used to describe the same item. The bill changes
33the terms to be uniform, including “scale ticket” to “scale
34weight ticket” and “Iowa grain depositors and sellers indemnity
35fund” to “grain depositors and sellers indemnity fund”, which
-14-1are both defined (amended Code sections 203.1, 203.5, 203.11,
2203.17, 203C.5, 203C.6, 203C.17, 203C.36, and 203D.1).
3GRAIN REGULATION — GRAIN MOISTURE CONTENT. A person
4receiving corn or soybeans as part of a transaction involving
5storage, processing, or sale may adjust the scale weight to
6account for moisture content (i.e., reducing the scale weight
7by a special factor calculated for each 1 percent of moisture
8content). The bill provides that the adjustment applies to all
9grain in which there are standards established by the United
10States department of agriculture (Code sections 203.1 and
11203C.1 and amended Code sections 203.20 and 203C.25).
12GRAIN REGULATION — CREDIT-SALE CONTRACT. A buyer and
13seller of grain may execute a credit-sale contract, also known
14as a price-later contract, for transfer of title, in which the
15seller delivers the grain to the buyer who pays the seller
16a price more than 30 days later (Code section 203.1). In
17order to engage in these transactions, a buyer who is a grain
18dealer must maintain a class 1 license requiring a net worth
19of at least $75,000 (Code section 203.3(4)), the parties must
20execute a contract form meeting statutory requirements (amended
21Code section 203.15(2)), and the grain is not considered as
22purchased grain covered by the grain depositors and sellers
23indemnity fund (Code section 203D.6(4)). The bill extends the
24maximum period of a credit-sale contract’s duration, requiring
25later payment for the delivered grain, from 12 to 15 months
26(amended Code section 203.15(2)).
27GRAIN REGULATION — OPEN STORAGE. An operator may retain
28delivered grain in open storage (meaning without issuing a
29warehouse receipt or making a purchase) subject to certain
30limitations. Grain subject to a scale weight ticket without
31having the price fixed and documented by the operator is
32considered to be retained in open storage. Currently, if
33grain is retained in open storage, the operator must issue the
34depositor a warehouse receipt within one year of the grain’s
35delivery date, unless the depositor signs a statement refusing
-15-1it. The bill eliminates this requirement. Upon request, the
2operator must still issue the depositor a warehouse receipt
3(amended Code section 203C.17).
4GRAIN REGULATION — PENALTIES. A person who violates Code
5chapter 203 or 203C is guilty of a simple misdemeanor (Code
6sections 203.11 and 203C.36).
7GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND. The fund
8compensates a “depositor” storing grain with a licensed
9operator who fails to return possession of the grain to
10the depositor, or a “seller” selling grain to a licensed
11dealer incurred when the dealer fails to make payment for the
12purchased grain (Code section 203D.6). The fund is supported
13by fees paid by operators and dealers. A dealer is assessed a
14participation fee and per-bushel fee based on purchased grain.
15An operator is assessed a participation fee based on warehouse
16storage capacity (Code sections 203D.3A and 203D.5). The Iowa
17grain indemnity fund board (board) acts on behalf of the fund,
18including by establishing the rate of fees to be assessed and
19owing each 12-month period beginning July 1 and ending June 30
20which are divided into 3-month quarters (subject to a floor
21of $3 million when fees must be assessed and a ceiling of $8
22million when fees can no longer be assessed). The bill changes
23the 12-month periods to begin September 1 and end August 31,
24and makes coordinating changes to when the quarterly periods
25begin and end.
26WEIGHTS AND MEASURES. A person who uses or displays a
27commercial weighing or measuring device (device) must be
28licensed. The term of the license is 12 months. Generally,
29the term is on a calendar year basis (January 1 to December
3031) but for motor fuel pumps the term is on a fiscal year
31basis (July 1 to June 30). A fee is required for the issuance
32of the license and an inspection (license inspection fee)
33first due when the device is placed into service. DALS is
34expressly required to inspect motor fuel pumps each year. The
35bill provides that the fee is for the issuance of the license
-16-1rather than the inspection, the license fee is due when the
2license is issued, and that DALS must inspect motor fuel pumps
3on a biennial basis (amended Code sections 214.2, 214.3, and
4214.11). The bill also eliminates a requirement that persons
5engaged in repairing scales must file a bond with the state
6(repealed Code section 215.12).
7WEIGHTS AND MEASURES — MOTOR FUEL STANDARDS AND
8CLASSIFICATIONS. Motor fuels include fossil (petroleum) based
9gasoline and diesel fuel as well as certain biofuel components
10derived from renewable (nonpetroleum) resources such as ethanol
11classified as E-100 and biodiesel comprised of monoalkyl esters
12of long-chain fatty acids and classified as B-100. Both types
13of substances are used to produce renewable fuels (e.g., E-15
14or B-5) subject to separate departmental standards based on
15ASTM international (ASTM) specifications. The bill regulates
16another liquid fuel referred to renewable diesel classified as
17RD-100 that may be used as a motor fuel or a blending component
18and classified as RD-xx. RD-100 is produced from nonfossil
19renewable resources but is not biodiesel due to manufacturing
20processes. Petroleum-based diesel fuel and RD-100 are subject
21to the same ASTM specification D975 while B-100 is subject to
22ASTM specification D6751 (amended Code sections 214A.1 and
23214A.2).
24WEIGHTS AND MEASURES — TESTING LABORATORY. The bill
25expressly recognizes the Iowa central fuel testing laboratory
26at Iowa central community college as the official laboratory
27for testing motor fuels, biofuels, and renewable fuels (amended
28Code section 214A.2B).
29WEIGHTS AND MEASURES — CODE EDITOR DIRECTIVE. The bill
30transfers Code section 214A.16 from subchapter I to subchapter
31II of Code chapter 214A. The Code section regulates a notice
32required to be posted for consumers purchasing renewable fuels.
33In 2022, the general assembly enacted 2022 Iowa Acts, chapter
341152, which reorganized Code chapter 214A. Subchapter I
35regulates general matters such as standards and classifications
-17-1and subchapter II regulates the advertisement, sale, and use
2of motor fuel.
3WEIGHTS AND MEASURES — PENALTY. A person who fails to allow
4for an inspection of a motor fuel pump is guilty of a simple
5misdemeanor.
6WATER QUALITY. DALS regulates two water quality
7initiatives, including water quality agriculture infrastructure
8programs (amended Code section 466B.43) and the water quality
9urban infrastructure program (amended Code section 466B.44).
10The initiative is supported by the water quality initiative
11fund (Code section 466B.45), the water quality infrastructure
12fund (Code section 8.57B), and the water quality financial
13assistance fund (Code section 16.134A). Moneys in the last
14fund (15 percent) are appropriated to support the water quality
15urban infrastructure program. The bill provides that if moneys
16remain after adequately supporting all water quality urban
17infrastructure program projects for the fiscal year, DALS may
18use those moneys to instead support water quality agriculture
19infrastructure programs. The bill also eliminates dates in
20several Code sections that are now extraneous.
21APPLICABLE PENALTIES. A simple misdemeanor is punishable by
22confinement for no more than 30 days and a fine of at least $105
23but not more than $855.
-18-da/ns