Text: HSB00643 Text: HSB00645 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 AGRICULTURAL FINANCE 1 3 SUBDIVISION 1 1 4 STATE PRIVATE ACTIVITY BOND CEILING 1 5 Section 101. Section 7C.4A, subsection 4, Code 1997, is 1 6 amended to read as follows: 1 7 4.SixteenTwenty percent of the state ceiling shall be 1 8 allocated to qualified small issue bonds issued for first-time 1 9 farmers. However, at any time during the calendar year the 1 10 governor's designee, with the approval of the Iowa 1 11 agricultural development authority, may determine that a 1 12 lesser amount need be allocated to qualified small issue bonds 1 13 for first-time farmers and on that date this lesser amount 1 14 shall be the amount allocated for those bonds and the excess 1 15 shall be allocated under subsection 6. 1 16 Sec. 102. Section 7C.4A, subsection 5, Code 1997, is 1 17 amended by striking the subsection. 1 18 Sec. 103. Section 7C.4A, subsection 6, paragraph a, Code 1 19 1997, is amended to read as follows: 1 20 a. The amount of the state ceiling not allocated under 1 21 subsections 1 through 4,and after October 25, the amount of1 22the state ceiling reserved under subsection 5 and not1 23allocated,shall be allocated to all bonds requiring an 1 24 allocation under section 146 of the Internal Revenue Code 1 25 without priority for any type of bond over another, except as 1 26 otherwise provided in sections 7C.5 and 7C.11. 1 27 Sec. 104. Section 7C.5, Code 1997, is amended to read as 1 28 follows: 1 29 7C.5 FORMULA FOR ALLOCATION. 1 30 Except as provided in section 7C.4A, subsections 1 through 1 31 4, the state ceiling shall be allocated among all political 1 32 subdivisions on a statewide basis on the basis of the 1 33 chronological orders of receipt by the governor's designee of 1 34 the applications described in section 7C.6 with respect to a 1 35 definitive issue of bonds, as determined by the day, hour, and 2 1 minute time-stamped on the application immediately upon 2 2 receipt by the governor's designee.However, for the period2 3January 1 through October 25 of each year, allocations to2 4bonds for which an amount of the state ceiling has been2 5reserved pursuant to section 7C.4A, subsection 5, shall be2 6made to the political subdivisions submitting the applications2 7first from the reserved amount until the reserved amount has2 8been fully allocated and then from the amount specified in2 9section 7C.4A, subsection 6.2 10 SUBDIVISION 2 2 11 LINKED INVESTMENT DEPOSITS 2 12 Sec. 105. Section 12.32, Code Supplement 1997, is amended 2 13 by adding the following new subsections: 2 14 NEW SUBSECTION. 0. "Agrifutures loan board" means the 2 15 agrifutures loan board created in section 15.361. 2 16 NEW SUBSECTION. 4. "Qualified linked investment" means a 2 17 linked investment in which a certificate of deposit is placed 2 18 by the treasurer of state with an eligible lending institution 2 19 under the value-added agricultural linked investment program 2 20 established under section 12.42. 2 21 Sec. 106. Section 12.34, Code Supplement 1997, is amended 2 22 to read as follows: 2 23 12.34 LINKED INVESTMENTS – LIMITATIONS – RULES – 2 24 MATURITY AND RENEWAL OF CERTIFICATES. 2 25 1. The treasurer of state may invest up to the lesser of 2 26sixty-eightone hundred eight million dollars or ten percent 2 27 of the balance of the state pooled money fund in certificates 2 28 of deposit in eligible lending institutions pursuant to this 2 29 division. The treasurer of state shall allocate forty million 2 30 dollars of the amount authorized for investment under this 2 31 subsection for purposes of supporting the value-added 2 32 agricultural linked investment program established in section 2 33 12.42. The treasurer of state shall provide for the security 2 34 of the deposits made to eligible lending institutions as 2 35 provided in chapter 12C. 3 1 2. The treasurer of state shall adopt rules pursuant to 3 2 chapter 17A to administer this division. 3 3 3. The following shall apply to a certificate of deposit, 3 4 which is placed with an eligible lending institution by the 3 5 treasurer of state pursuant to this division: 3 6 a.CertificatesA certificate of deposit, which is not 3 7 part of a qualified linked investment, placed by the treasurer 3 8 of state with an eligible lending institution on or after July 3 9 1, 1996,pursuant to this divisionmay be renewed at the 3 10 option of the treasurer. The initial certificate of deposit 3 11 for a given borrower shall have a maturity of one year and may 3 12 be renewed for eight additional one-year periods. 3 13 b. A certificate of deposit which is part of a qualified 3 14 linked investment placed by the treasurer of state with an 3 15 eligible lending institution shall have a maturity of up to 3 16 eighteen months. The certificate of deposit may be renewed at 3 17 the option of the treasurer on an annual basis for a total 3 18 term not to exceed nine years. 3 19 Sec. 107. NEW SECTION. 12.42 VALUE-ADDED AGRICULTURAL 3 20 LINKED INVESTMENT PROGRAM. 3 21 1. The treasurer of state shall establish and administer, 3 22 and adopt rules as necessary to establish and administer, a 3 23 value-added agricultural linked investment program. The 3 24 purpose of the program is to provide capital in the form of 3 25 low-interest loans in order to do any of the following: 3 26 a. Stimulate existing businesses or encourage the 3 27 establishment of new business that add value through the 3 28 processing of agricultural commodities. 3 29 b. Encourage the production of agricultural commodities, 3 30 if a shortage in production exists. 3 31 2. A borrower shall be eligible to participate in the 3 32 value-added agricultural linked investment program, to the 3 33 extent that the borrower meets eligibility requirements 3 34 established by the agrifutures loan board created in section 3 35 15.361. 4 1 3. A borrower shall not receive a loan of more than one 4 2 million dollars under this program. 4 3 SUBDIVISION 3 4 4 AGRIFUTURES 4 5 Sec. 108. NEW SECTION. 15.361 AGRIFUTURES LOAN BOARD. 4 6 1. An agrifutures loan board is created within the 4 7 department of economic development. The powers of the board 4 8 are vested in and shall be exercised by seventeen members 4 9 including nine members appointed by the governor and eight ex 4 10 officio nonvoting members. 4 11 2. a. Members appointed by the governor shall serve 4 12 staggered terms of three years beginning and ending as 4 13 provided in section 69.19. However, the governor shall 4 14 appoint initial members to serve for less than three years to 4 15 ensure members serve staggered terms. Members appointed by 4 16 the governor shall be knowledgeable regarding value-added 4 17 agricultural production and processing. The governor shall 4 18 appoint all of the following: 4 19 (1) One person representing financial institutions who is 4 20 actively engaged in financing agricultural businesses. 4 21 (2) One person representing agribusiness who is actively 4 22 engaged in an agribusiness. 4 23 (3) One person representing agricultural cooperative 4 24 associations who is a member of an agricultural cooperative 4 25 association as defined in section 502.102. 4 26 (4) One person representing processors of agricultural 4 27 products who is actively engaged in processing such products. 4 28 (5) One person representing marketers of agricultural 4 29 commodities or products who is actively engaged in marketing 4 30 agricultural commodities or products. 4 31 (6) One person representing an organization promoting 4 32 producers of agricultural commodities generally rather than a 4 33 specific commodity, who is a member of such an organization. 4 34 (7) Two persons representing organizations promoting 4 35 producers of specific commodities who are members of the 5 1 organizations. The governor shall appoint persons from among 5 2 the state's commodity organizations on a rotating basis. 5 3 (8) One person representing the economic development board 5 4 as created in section 15.103 who is a member of the board. 5 5 b. The nonvoting ex officio members shall include all of 5 6 the following: 5 7 (1) A person appointed by the governor representing the 5 8 governor's office. 5 9 (2) The treasurer of state. 5 10 (3) The secretary of agriculture. 5 11 (4) The director of the department of economic 5 12 development. 5 13 (5) Four members of the general assembly. The members are 5 14 two state senators, appointed by the president of the senate, 5 15 after consultation with the majority leader of the senate and 5 16 the minority leader of the senate from their respective 5 17 parties; and two state representatives, appointed by the 5 18 speaker of the house of representatives, after consultation 5 19 with the majority leader of the house of representatives and 5 20 the minority leader of the house of representatives from their 5 21 respective parties. 5 22 3. A vacancy on the board of directors shall be filled in 5 23 the same manner as an original appointment. A person 5 24 appointed to fill a vacancy shall serve only for the unexpired 5 25 portion of the term. A member is eligible for reappointment. 5 26 An appointed member may be removed from office by the governor 5 27 for misfeasance, malfeasance, or willful neglect of duty or 5 28 other just cause, after notice and hearing, unless the notice 5 29 and hearing is expressly waived in writing. 5 30 4. Five voting members of the board constitute a quorum 5 31 and the affirmative vote of a majority of the members eligible 5 32 to vote is necessary for any substantive action taken by the 5 33 board. The majority shall not include any member who has a 5 34 conflict of interest and a statement by a member that the 5 35 member has a conflict of interest is conclusive for this 6 1 purpose. A vacancy in the membership does not impair the 6 2 right of a quorum to exercise all rights and perform all 6 3 duties of the board. 6 4 5. The appointed members are entitled to receive a per 6 5 diem as specified in section 7E.6 for each day spent in 6 6 performance of duties as members, and shall be reimbursed for 6 7 all actual and necessary expenses incurred in the performance 6 8 of duties as members. 6 9 6. If a member has a interest, either direct or indirect, 6 10 in a contract to which the board is or is to be a party, the 6 11 member shall disclose the interest to the board in writing. 6 12 The writing stating the conflict shall be set forth in the 6 13 minutes of the board. The member having the interest shall 6 14 not participate in any action by the board relating to the 6 15 contract. 6 16 7. The department shall provide appropriate staff support 6 17 to the board. 6 18 Sec. 109. NEW SECTION. 15.362 POWERS AND DUTIES. 6 19 The agrifutures loan board shall have the following powers 6 20 and duties: 6 21 1. Review and approve business projects for support under 6 22 the value-added agricultural products and processes financial 6 23 assistance program as provided in section 15E.111. 6 24 2. Review and approve business projects for support under 6 25 the agrifutures revolving loan program established in section 6 26 15E.114. 6 27 3. Establish requirements for borrowers to be eligible to 6 28 participate in the value-added agricultural linked investment 6 29 program established in section 12.42. The requirements shall 6 30 be established by rule adopted pursuant to chapter 17A in 6 31 cooperation with the treasurer of state as provided in section 6 32 12.42. 6 33 Sec. 110. Section 15E.111, subsection 3, Code 1997, is 6 34 amended to read as follows: 6 35 3. The department of economic development shall grant 7 1 financial assistance to a person determinedby the department7 2 to be eligible to receive assistance under this section,upon 7 3 review andevaluationapproval of the person's application by 7 4 theagricultural products advisory councilagrifutures loan 7 5 board as established in section15.20315.361.The department7 6shall consider the council's evaluation in granting or denying7 7assistance.Thedepartmentboard shall not approve an 7 8 application for assistance under this section to refinance an 7 9 existing loan. Thedepartmentboard shall not directly award 7 10 financial assistance to support an activity directly related 7 11 to farming as defined in section 9H.1, including the 7 12 establishment or operation of a livestock production 7 13 operation, regardless of whether the activity is related to a 7 14 renewable fuel production facility. 7 15 Sec. 111. Section 15E.111, subsection 6, paragraph c, Code 7 16 1997, is amended to read as follows: 7 17 c. The department shall cooperate with the office of 7 18 renewable fuels and coproducts in order to carry out this 7 19 subsection, as provided in section 159A.6B. The office shall 7 20 be primarily responsible for providing technical expertise 7 21 regarding the operation of a renewable fuel production 7 22 facility, and specifically a facility which supports livestock 7 23 production operations. The department shall cooperate with 7 24 any contract consultant supported by the office as provided in 7 25 section 159A.6B. Theagricultural products advisory council7 26 agrifutures loan board as established in section15.20315.361 7 27 shall coordinate the activities of the department and the 7 28 office. In administering this part of the program, the 7 29 department and the office shall cooperate with the department 7 30 of natural resources which shall assist an applicant in 7 31 complying with all applicable environmental regulations. The 7 32 department of natural resources shall acknowledge receipt of a 7 33 completed application for a permit not later than two weeks 7 34 following receipt of a completed application by the 7 35 department. Within twelve weeks following receipt of the 8 1 application, the department shall issue the permit or reply to 8 2 the applicant describing reasons why the permit cannot be 8 3 issued. 8 4 Sec. 112. NEW SECTION. 15E.113 AGRIFUTURES REVOLVING 8 5 LOAN FUND. 8 6 1. An agrifutures revolving loan fund is created in the 8 7 state treasury under the control of the department of economic 8 8 development. The fund is composed of moneys appropriated by 8 9 the general assembly, and moneys available to and obtained or 8 10 accepted by the department or the agrifutures loan board 8 11 created in section 15.361 from the United States or private 8 12 sources for placement in the fund. The fund shall include 8 13 moneys deposited into the fund pursuant to section 423.24, the 8 14 repayment of moneys, moneys obtained by the collection of 8 15 assets, and the recapture of awards, as provided under section 8 16 15E.114. 8 17 2. The agrifutures revolving loan fund is subject to 8 18 warrants written by the director of revenue and finance, drawn 8 19 upon the written requisition of the director of the department 8 20 of economic development or a person authorized by the 8 21 director. The agrifutures loan board shall review the 8 22 administration of the fund. 8 23 3. The agrifutures revolving loan fund shall be used to 8 24 support the agrifutures revolving loan program as provided in 8 25 section 15E.114. 8 26 4. In administering the agrifutures revolving loan fund, 8 27 the department may contract, sue, and be sued. However, the 8 28 department shall not in any manner directly or indirectly 8 29 pledge the credit of the state. The department shall 8 30 periodically report to the agrifutures loan board about the 8 31 administration of the fund. 8 32 5. The department shall adopt rules pursuant to chapter 8 33 17A to administer this section. 8 34 6. Section 8.33 shall not apply to moneys in the fund. 8 35 Notwithstanding section 12C.7, moneys earned as income, 9 1 including interest from the fund shall remain in the fund 9 2 until expended as provided in this section. 9 3 Sec. 113. NEW SECTION. 15E.114 AGRIFUTURES REVOLVING 9 4 LOAN PROGRAM. 9 5 1. The department shall establish an agrifutures revolving 9 6 loan program. The program shall be supported from moneys 9 7 deposited in the agrifutures revolving loan fund created in 9 8 section 15E.113. 9 9 2. The department shall administer the agrifutures 9 10 revolving loan fund as provided in this section. The 9 11 department shall periodically report to the agrifutures loan 9 12 board about the administration of the program. 9 13 3. To the extent that moneys are available to support the 9 14 program, the department shall provide program assistance to 9 15 qualified applicants for purposes of financing business 9 16 projects which enhance value-added agricultural production and 9 17 processing in this state. 9 18 a. Program assistance shall be limited to nonforgivable 9 19 loans or loan guarantees. 9 20 b. A loan or a guarantee made by the department shall not 9 21 be outstanding for more than three years from the date that 9 22 the loan or guarantee has been made. 9 23 c. In order to qualify for program assistance under this 9 24 section, an applicant must comply with procedures required by 9 25 the department. 9 26 d. Program assistance shall be provided to qualified 9 27 applicants as authorized and approved by the agrifutures loan 9 28 board. 9 29 4. The department shall adopt rules in cooperation with 9 30 the agrifutures loan board pursuant to chapter 17A necessary 9 31 in order to administer this section, including rules relating 9 32 to application requirements, the terms and conditions of 9 33 providing program assistance, criteria used by the agrifutures 9 34 loan board to make decisions regarding qualified applicants, 9 35 the collection of debts and for the recovery of loaned or 10 1 guaranteed moneys, and the management of property acquired in 10 2 connection with such loans or guarantees. The rules may be 10 3 based on recommendations made to the department by the 10 4 agrifutures loan board. The department may receive rules 10 5 proposed by the agrifutures loan board and provide rules to 10 6 the agrifutures loan board for review and comment prior to the 10 7 rules being filed as provided in section 17A.5. The 10 8 department shall consider any rules proposed or comments made 10 9 by the board. 10 10 Sec. 114. Section 423.24, subsection 1, paragraph a, 10 11 subparagraph (2), Code Supplement 1997, is amended to read as 10 12 follows: 10 13 (2)Beginning January 1, 1996, through December 31, 1997,10 14two million five hundred thousand dollars per quarter shall be10 15deposited into and credited to the Iowa comprehensive10 16petroleum underground storage tank marketability fund created10 17in section 455G.21.Beginning January 1, 1998, through 10 18December 31, 2002June 30, 1999, four million two hundred 10 19 fifty thousand dollars per quarter shall be deposited into and 10 20 credited to theIowa comprehensive petroleum underground10 21storage tank marketabilityagrifutures revolving loan fund 10 22 created in section455G.2115E.113. However, not more than 10 23 twenty-five million dollars shall be deposited into the 10 24 agrifutures revolving loan fund. The moneys so deposited are 10 25 a continuing appropriation to be expendedin accordance with10 26 to support the agrifutures revolving loan program as 10 27 established pursuant to section455G.2115E.114, and the 10 28 moneys shall not be used for other purposes. 10 29 Sec. 115. 1995 Iowa Acts, chapter 215, section 29, 10 30 subsection 1, is amended to read as follows: 10 31 SEC. 29. Section 423.24, subsection 1, paragraph a, 10 32 subparagraph (2), is repealed onJanuary 1, 2003July 1, 2000. 10 33 Sec. 116. TRANSFER. Moneys deposited in the Iowa 10 34 comprehensive petroleum underground storage tank marketability 10 35 fund created in section 455G.21 derived from the use tax as 11 1 provided in section 423.24, Code 1997, from January 1, 1998, 11 2 until the effective date of this section of this Act shall be 11 3 transferred to the agrifutures revolving loan fund created in 11 4 section 15E.113, as enacted by this Act. 11 5 Sec. 117. Section 15.203, Code 1997, is repealed. 11 6 Sec. 118. Section 116 of this Act shall be retroactively 11 7 applicable on and after January 1, 1998. 11 8 DIVISION II 11 9 ORGANIC FARMING 11 10 Sec. 201. Section 22.7, Code Supplement 1997, is amended 11 11 by adding the following new subsection: 11 12 NEW SUBSECTION. 38. Business information submitted to the 11 13 department or records maintained by persons required to be 11 14 certified as producers, processors, or handlers of organic 11 15 agricultural products as provided in chapter 190C. 11 16 SUBCHAPTER 1 11 17 DEFINITIONS 11 18 Sec. 202. NEW SECTION. 190C.1 DEFINITIONS. 11 19 For purposes of this chapter, unless the context otherwise 11 20 requires: 11 21 1. "Advertise" means to present a commercial message in 11 22 any medium, including but not limited to print, radio, 11 23 television, sign, display, label, tag, or articulation. 11 24 2. "Agricultural commodity" includes but is not limited to 11 25 livestock, crops, or food, such as vegetables, nuts, seeds, 11 26 honey, eggs, or milk existing in an unprocessed state, which 11 27 is produced on a farm and marketed in the United States for 11 28 human or livestock consumption. 11 29 3. "Agricultural product" means an agricultural commodity 11 30 or an agricultural processed product. 11 31 4. "Agricultural processed product" means an agricultural 11 32 commodity that has been processed. 11 33 5. "Board" means the organic standards review and appeals 11 34 board established in section 190C.2. 11 35 6. "Claim of genuineness" means a claim made in an 12 1 advertisement that refers to an agricultural product as 12 2 "organic", "organically produced", "certified organic", 12 3 "certified organically grown", or a derivative of any of these 12 4 terms. 12 5 7. "Department" means the department of agriculture and 12 6 land stewardship. 12 7 8. "Farm" means a site where the agricultural commodities 12 8 are produced. 12 9 9. "Food" means an agricultural product or an agricultural 12 10 product ingredient which is used or intended for use in whole 12 11 or in part for human consumption. 12 12 10. "Handler" means a person engaged in the business of 12 13 handling agricultural products, including but not limited to 12 14 distributors, wholesalers, brokers, and repackers. "Handler" 12 15 does not include a person selling agricultural products to 12 16 consumers on a retail basis, including a food service 12 17 establishment as defined in section 137B.2, retail grocery, 12 18 meat market, or bakery, if the person does not process the 12 19 agricultural product. 12 20 11. "Label" means a commercial message in a printed medium 12 21 which is affixed by any method to a product or to a receptacle 12 22 including a container or package. 12 23 12. "Livestock" means an animal belonging to the bovine, 12 24 caprine, equine, ovine, or porcine species; ostriches, rheas, 12 25 or emus; farm deer as defined in section 481A.1; or poultry. 12 26 13. "Organic agricultural product" means food that is one 12 27 of the following: 12 28 a. If the food is an agricultural commodity, it is 12 29 produced and handled according to the requirements of this 12 30 chapter, including the requirements provided pursuant to 12 31 section 190C.11 by a person who is certified pursuant to 12 32 section 190C.13 or registered as required pursuant to section 12 33 190C.14. 12 34 b. If the food is an agricultural processed product, it is 12 35 produced, handled, and processed according to the requirements 13 1 of this chapter, including the requirements provided pursuant 13 2 to section 190C.11 by a person who is certified pursuant to 13 3 section 190C.13 or registered pursuant to section 190C.14. 13 4 14. "Processing" means turning an agricultural commodity 13 5 into an agricultural processed product by physical or chemical 13 6 modification, including but not limited to canning, freezing, 13 7 drying, dehydrating, cooking, pressing, powdering, packaging, 13 8 repacking, baking, heating, mixing, grinding, churning, 13 9 separating, extracting, cutting, fermenting, eviscerating, 13 10 preserving, jarring, brewing, or slaughtering. 13 11 15. "Produce" means to grow, raise, collect, or harvest an 13 12 agricultural commodity. 13 13 16. "Producer" means a person who produces an agricultural 13 14 commodity. 13 15 17. "Processor" means a person who processes an 13 16 agricultural commodity. 13 17 18. "Retailer" means a person, other than an operator of a 13 18 food service establishment, who is engaged in the business of 13 19 selling food at retail to the ultimate customer. 13 20 19. "Sale" or "sell" means a commercial transfer or offer 13 21 for sale and distribution in any manner. 13 22 SUBCHAPTER 2 13 23 ADMINISTRATION 13 24 Sec. 203. NEW SECTION. 190C.2 ORGANIC STANDARDS REVIEW 13 25 AND APPEALS BOARD. 13 26 1. A certification standards and appeals board is 13 27 established within the department. The powers of the board 13 28 are vested in and shall be exercised by eleven members 13 29 appointed by the governor. The governor shall accept 13 30 nominations from organizations representing persons who serve 13 31 on the board, as determined by the governor. 13 32 2. The members shall serve staggered terms of four years 13 33 beginning and ending as provided in section 69.19. However, 13 34 the governor shall appoint initial members to serve for less 13 35 than four years to ensure members serve staggered terms. 14 1 Members appointed by the governor shall be persons 14 2 knowledgeable regarding the production, handling, processing, 14 3 and retailing of organic agricultural products. The governor 14 4 shall appoint all of the following: 14 5 a. Five persons who operate farms producing organic 14 6 agricultural products. At least one of the persons must be a 14 7 producer of livestock, who may be a dairy or egg producer. At 14 8 least one person shall be a producer of an agricultural 14 9 commodity other than livestock. To qualify for appointment, a 14 10 person must have derived a substantial portion of the person's 14 11 income, wages, or salary from the production of organic 14 12 agricultural products for three years prior to appointment. 14 13 b. Two persons who operate businesses processing organic 14 14 agricultural products. To qualify for appointment, a person 14 15 must have derived a substantial portion of the person's 14 16 income, wages, or salary from processing organic agricultural 14 17 products for three years prior to appointment. 14 18 c. One of the following: 14 19 (1) A person who operates a business handling organic 14 20 agricultural products. To qualify for appointment, a person 14 21 must have derived a substantial portion of the person's 14 22 income, wages, or salary from handling organic agricultural 14 23 products for three years prior to appointment. 14 24 (2) A person who operates a business selling organic 14 25 agricultural products. To qualify for appointment, a person 14 26 must have derived a substantial portion of the person's 14 27 income, wages, or salary from selling organic agricultural 14 28 products on a retail basis for three years prior to 14 29 appointment. 14 30 d. Two persons who have an educational degree and 14 31 experience in agricultural or food science. To qualify for 14 32 appointment, a person must not have a financial interest in 14 33 the production, handling, processing, or selling of organic 14 34 agricultural products. 14 35 e. One person who represents the public interest, the 15 1 natural environment, or consumers. To qualify for 15 2 appointment, the person must be a member of an organization 15 3 representing the public interest, consumers, or the natural 15 4 environment. The person must not have a financial interest in 15 5 the production, handling, processing, or selling of organic 15 6 agricultural products. 15 7 3. A vacancy on the board shall be filled in the same 15 8 manner as an original appointment. A person appointed to fill 15 9 a vacancy shall serve only for the unexpired portion of the 15 10 term. A member is eligible for reappointment. A member may 15 11 be removed from office by the governor for misfeasance, 15 12 malfeasance, or willful neglect of duty or other just cause, 15 13 after notice and hearing, unless the notice and hearing is 15 14 expressly waived in writing. 15 15 4. Six members of the board constitute a quorum and the 15 16 affirmative vote of a majority of the members present is 15 17 necessary for any substantive action to be taken by the board. 15 18 The majority shall not include any member who has a conflict 15 19 of interest and a statement by a member that the member has a 15 20 conflict of interest is conclusive for this purpose. A 15 21 vacancy in the membership does not impair the right of a 15 22 quorum to exercise all rights and perform all duties of the 15 23 board. 15 24 5. The members are entitled to receive a per diem as 15 25 specified in section 7E.6 for each day spent in performance of 15 26 duties as members, and shall be reimbursed for all actual and 15 27 necessary expenses incurred in the performance of duties as 15 28 members. 15 29 6. If a member has a interest, either direct or indirect, 15 30 in a contract to which the board is or is to be a party, the 15 31 member shall disclose the interest to the board in writing. 15 32 The writing stating the conflict shall be set forth in the 15 33 minutes of the board. The member having the interest shall 15 34 not participate in any action by the board relating to the 15 35 contract. 16 1 7. The board shall meet on a regular basis and at the call 16 2 of the chairperson or upon the written request to the 16 3 chairperson of two or more members. The department shall 16 4 provide administrative support to the board. 16 5 Sec. 204. NEW SECTION. 190C.3 BOARD POWERS AND DUTIES. 16 6 The organic standards review and appeals board shall have 16 7 powers and duties to do all of the following: 16 8 1. Monitor conditions, practices, policies, programs, and 16 9 procedures affecting the production, handling, processing, and 16 10 sale of organic agricultural products. 16 11 2. Compile materials or a list of materials which may 16 12 assist producers, handlers, processors, and sellers of organic 16 13 agricultural products, in complying with this chapter. 16 14 3. Assist the department in the development and 16 15 interpretation of requirements of this chapter, including 16 16 requirements established pursuant to section 190C.11 and 16 17 standards regarding the production, processing, handling, and 16 18 selling of organic agricultural products and other matters of 16 19 concern to the producers, handlers, processors, and retailers 16 20 of organic agricultural products. 16 21 4. Provide recommendations to the department regarding the 16 22 administration and enforcement of this chapter, including 16 23 rules adopted by the department pursuant to this chapter. 16 24 5. Hear appeals of contested cases involving disciplinary 16 25 action brought by the department against a person pursuant to 16 26 section 190C.23. The board may approve, disapprove, or modify 16 27 a departmental decision, including a decision proposed by an 16 28 administrative law judge under chapter 17A. The board's 16 29 decision shall be final agency action as provided in chapter 16 30 17A. 16 31 Sec. 205. NEW SECTION. 190C.4 ADMINISTRATIVE AUTHORITY. 16 32 1. The department shall adopt all rules necessary to 16 33 administer this chapter. 16 34 a. The rules may include regulations governing the 16 35 production, handling, processing, and selling of agricultural 17 1 products by persons advertising a claim of genuineness. These 17 2 rules may provide for standards, certification, registration, 17 3 inspections, testing, the assessment and collection of fees, 17 4 the maintenance of records, disciplinary action, and the 17 5 issuance of stop sale orders as provided in this chapter. 17 6 b. The rules adopted under this section shall be 17 7 consistent with federal regulations adopted pursuant to the 17 8 federal Organic Food Production Act of 1990. The department 17 9 may adopt rules which are stricter than federal regulations to 17 10 the extent allowed by federal law. 17 11 2. The department may appoint or contract with qualified 17 12 persons to serve as certifying agencies on behalf of the 17 13 department. A certifying agency shall certify persons as 17 14 provided by section 190C.13 and inspect the operations of 17 15 persons who are certified as provided in section 190C.22, 17 16 according to rules adopted by the department. 17 17 3. A violation of this chapter includes a violation of any 17 18 rule adopted or issue ordered pursuant to this chapter as 17 19 provided in this chapter and under chapter 17A. 17 20 Sec. 206. NEW SECTION. 190C.5 FEES AND APPROPRIATION. 17 21 The department shall establish a schedule of fees required 17 22 for certification as provided in section 190C.13 and 17 23 registration as provided in section 190C.14. 17 24 1. Beginning in the fiscal year that starts on July 1, 17 25 2000, the amount of the fees shall be based on the amount of 17 26 revenues required by the department to administer and enforce 17 27 this chapter. However, a person required to be certified or 17 28 registered as a producer, handler, processor, or retailer 17 29 shall not pay more than one hundred dollars for each year that 17 30 the person is certified or registered. 17 31 2. The fees shall be deposited into the general fund of 17 32 the state. 17 33 SUBCHAPTER 3 17 34 REQUIREMENTS 17 35 Sec. 207. NEW SECTION. 190C.11 REQUIREMENTS APPLICABLE 18 1 TO ORGANIC AGRICULTURAL PRODUCTS. 18 2 1. Only the following persons may make a claim of 18 3 genuineness regarding an agricultural product sold in this 18 4 state: 18 5 a. A person certified by the department pursuant to 18 6 section 190C.13. 18 7 b. A person registered with the department pursuant to 18 8 section 190C.14. 18 9 2. In advertising a product produced, handled, or 18 10 processed for sale in this state, the following shall apply: 18 11 a. If the agricultural product was produced, handled, or 18 12 processed in this state a person shall not make a claim of 18 13 genuineness, unless the following applies: 18 14 (1) An agricultural commodity must be produced and handled 18 15 in accordance with the provisions of section 190C.13. 18 16 (2) An agricultural processed product and each 18 17 agricultural commodity that is part of the agricultural 18 18 processed product must comply with the provisions of 18 19 subparagraph (1) and the agricultural processed product must 18 20 be processed or handled in accordance with the provisions of 18 21 section 190C.13. 18 22 b. If the agricultural product was not produced, handled, 18 23 or processed in this state, a person shall not make a claim of 18 24 genuineness, unless the following applies: 18 25 (1) An agricultural commodity must be produced and handled 18 26 in accordance with the provisions of the state or nation where 18 27 the agricultural product is produced and handled, and the 18 28 department must find that those provisions are at least as 18 29 stringent as those required in this chapter. 18 30 (2) An agricultural processed product and each 18 31 agricultural commodity that is part of the agricultural 18 32 processed product must comply with the provisions of 18 33 subparagraph (1), the agricultural processed product must be 18 34 processed and handled in accordance with the provisions of the 18 35 state or nation where the agricultural processed product is 19 1 processed and handled, and the department must find that those 19 2 provisions are at least as stringent as those required in this 19 3 chapter. 19 4 Sec. 208. NEW SECTION. 190C.12 STANDARDS. 19 5 A person shall not sell an agricultural commodity by making 19 6 a claim of genuineness, unless the agricultural commodity is 19 7 produced, handled, and processed in accordance with standards 19 8 established by rules adopted by the department as provided in 19 9 this chapter. An agricultural product must be produced, 19 10 handled, and processed in a manner that maintains the 19 11 integrity of the agricultural product until it is sold to the 19 12 consumer. The integrity of the agricultural product shall be 19 13 maintained without the use of synthetic additives or 19 14 materials. The rules shall provide for the production, 19 15 handling, and processing of organic agricultural products by 19 16 using cultural, biological, and mechanical methods. 19 17 Sec. 209. NEW SECTION. 190C.13 CERTIFICATION. 19 18 1. The department shall establish and administer a program 19 19 to certify producers, handlers, and processors of agricultural 19 20 products who make a claim of genuineness about the production, 19 21 handling, and processing of agricultural products which are 19 22 sold in this state. 19 23 a. A certification shall expire one year from the date of 19 24 issuance. 19 25 b. In order to be certified, a producer, handler, or 19 26 processor must submit to the department an organic plan as 19 27 prescribed by rules adopted by the department. The plan shall 19 28 include methods used to ensure that the agricultural products 19 29 are produced, handled, and processed according to requirements 19 30 established by the department pursuant to section 190C.11. 19 31 However, this section shall not require that any of the 19 32 following persons be certified: 19 33 (1) A retailer to the extent that the retailer sells food 19 34 unsealed, unpacked, repacked, or nonrepackaged. 19 35 (2) A person who receives five thousand dollars or less in 20 1 gross income from the sale of agricultural products. 20 2 Any person exempted from certification under this 20 3 subsection, who makes a claim of genuineness, register 20 4 pursuant to section 190C.14. 20 5 2. The department shall adopt rules establishing a 20 6 certification procedure. The procedure shall provide that a 20 7 decision to certify an applicant must be made by more than one 20 8 person authorized by the department. 20 9 Sec. 210. NEW SECTION. 190C.14 REGISTRATION. 20 10 The department shall establish and administer a program to 20 11 register producers, handlers, processors, and retailers of 20 12 agricultural products who make a claim of genuineness about 20 13 the production, handling, or processing of an agricultural 20 14 product. A registration shall expire one year from the date 20 15 of issuance. A person is not required to be registered 20 16 pursuant to this section, if the person is certified pursuant 20 17 to section 190C.13. The department shall adopt rules 20 18 establishing registration procedures. 20 19 Sec. 211. NEW SECTION. 190C.15 LABELING AND ORGANIC 20 20 CERTIFICATION SEAL. 20 21 1. A label advertising a claim of genuineness regarding an 20 22 agricultural product sold in this state shall conform with the 20 23 requirements of this chapter including requirements 20 24 established in rules adopted by the department pursuant to 20 25 section 190C.11. The department shall adopt rules specifying 20 26 the content of the label. 20 27 2. The department may establish a seal certifying that a 20 28 claim of genuineness is valid, or that an agricultural product 20 29 has been produced, handled, and processed in accordance with 20 30 this chapter. A person shall not use a seal provided in this 20 31 section to advertise an agricultural product, unless the 20 32 person is authorized to use the seal by the department in 20 33 accordance with requirements established by the department 20 34 pursuant to rules adopted under chapter 17A. The seal may be 20 35 used in addition to or in lieu of a label provided in 21 1 subsection 1, as provided by the department. 21 2 Sec. 212. NEW SECTION. 190C.16 RECORDS. 21 3 A person required to be certified as provided in section 21 4 190C.13 shall maintain records regarding the production, 21 5 processing, and handling of an organic agricultural product. 21 6 The records shall demonstrate that agricultural products 21 7 subject to a claim of genuineness have been produced, 21 8 processed, and handled in conformance with this chapter. A 21 9 record is not required to be maintained for more than five 21 10 years. 21 11 SUBCHAPTER 4 21 12 ENFORCEMENT 21 13 Sec. 213. NEW SECTION. 190C.21 GENERAL ENFORCEMENT. 21 14 The department and the attorney general shall enforce this 21 15 chapter. The attorney general may commence legal proceedings 21 16 in district court at the request of the department or upon the 21 17 attorney general's own initiative in order to enforce this 21 18 chapter, including rules adopted and orders issued by the 21 19 department pursuant to this chapter. This chapter does not 21 20 require the attorney general or the department to institute a 21 21 proceeding for a minor violation, if the attorney general or 21 22 department concludes that the public interest will be best 21 23 served by a suitable notice of warning in writing. 21 24 Sec. 214. NEW SECTION. 190C.22 INVESTIGATIONS – 21 25 COMPLAINTS – INSPECTIONS-EXAMINATIONS. 21 26 1. The department may conduct an investigation to 21 27 determine if a person is complying with the requirements of 21 28 this chapter. 21 29 2. Any person may file a complaint with the department 21 30 regarding a violation of this chapter. The department shall 21 31 adopt procedures for persons filing complaints. The 21 32 department shall establish procedures for processing 21 33 complaints including requiring minimum information to 21 34 determine the verifiability of a complaint. 21 35 3. The department may conduct inspections at times and 22 1 places, and to an extent that the department determines 22 2 necessary in order to conclude whether an agricultural product 22 3 is being produced, handled, processed, or sold in accordance 22 4 with the provisions of this chapter. The department may 22 5 inspect records required to be maintained pursuant to section 22 6 190C.16. The department may enter upon any public or private 22 7 premises during regular business hours in a manner consistent 22 8 with the laws of this state and the United States, including 22 9 Article I, section 8, of the Constitution of the State of 22 10 Iowa, or the fourth amendment to the Constitution of the 22 11 United States for purposes of carrying out an inspection. 22 12 4. The department may conduct examinations of agricultural 22 13 products in order to determine if the products are produced, 22 14 handled, processed, and sold in compliance with this chapter. 22 15 a. The methods for examination shall be the official 22 16 methods of the association of official agricultural chemists 22 17 in all cases where methods have been adopted by the 22 18 association. 22 19 b. A sworn statement by the state chemist or the state 22 20 chemist's deputy stating the results of an analysis of a 22 21 sample taken from a lot of agricultural products shall 22 22 constitute prima facie evidence of the correctness of the 22 23 analysis of that lot in an administrative hearing or court of 22 24 this state. 22 25 Sec. 215. NEW SECTION. 190C.23 DISCIPLINARY ACTION. 22 26 1. The department may take disciplinary action concerning 22 27 a person who is certified or registered pursuant to this 22 28 chapter by doing any of the following: 22 29 a. Issuing a letter of warning or reprimand. 22 30 b. Suspending or terminating a certification or denying an 22 31 application for certification required pursuant to section 22 32 190C.13. 22 33 c. Suspending or canceling a registration or denying an 22 34 application for registration as required pursuant to section 22 35 190C.14. 23 1 2. The disciplinary action must be based upon evidence 23 2 satisfactory to the department that the person has used 23 3 fraudulent or deceptive practices in violation of this chapter 23 4 or has willfully disregarded the requirements of this chapter. 23 5 Sec. 216. NEW SECTION. 190C.24 STOP SALE ORDER. 23 6 1. If a person sells an agricultural product in violation 23 7 of this chapter, including a rule adopted or an order issued 23 8 under this chapter, the department may issue a written order 23 9 to stop the sale of the agricultural product by a person in 23 10 control of the agricultural product. The person named in the 23 11 order shall not sell the item until the department determines 23 12 that the sale of the agricultural product is in compliance 23 13 with this chapter. 23 14 2. The department may require that the product be held at 23 15 a designated place until released by the department. 23 16 3. The department or the attorney general may enforce the 23 17 order by petitioning the district court in the county where 23 18 the agricultural product is being sold. 23 19 4. The department shall release the agricultural product 23 20 when the department issues a release order upon satisfaction 23 21 that legal requirements compelling the issuance of the stop 23 22 sale order are satisfied, and all expenses incurred by the 23 23 department in connection with the agricultural product's 23 24 removal have been paid to the department. 23 25 Sec. 217. NEW SECTION. 190C.25 INJUNCTIONS. 23 26 The attorney general, the department, or an individual, 23 27 private organization or association, county, or city may bring 23 28 an action in district court to restrain a producer, processor, 23 29 handler, or retailer from selling agricultural products by 23 30 making claims of genuineness which are false or misleading. A 23 31 petitioner shall not be required to allege facts necessary to 23 32 show, or tending to show, a lack of adequate remedy at law, or 23 33 that irreparable damage or loss will result if the action is 23 34 brought at law or that unique or special circumstances exist. 23 35 Sec. 218. NEW SECTION. 190C.26 PENALTIES. 24 1 A person who violates this chapter is subject to a civil 24 2 penalty of not more than five thousand dollars. Civil 24 3 penalties shall be assessed by the district court in an action 24 4 initiated by the attorney general. Each day that the offense 24 5 continues constitutes a separate offense. However, a person 24 6 shall not be subject to a civil penalty of more than twenty- 24 7 five thousand dollars for a continuing offense. Civil 24 8 penalties collected under this section shall be deposited in 24 9 the general fund of the state. 24 10 Sec. 219. Chapter 190B, Code 1997, is repealed. 24 11 Sec. 220. IMPLEMENTATION. 24 12 1. The department of agriculture and land stewardship 24 13 shall present proposed rules required to implement this part 24 14 of this Act to the organic standards review and appeals board 24 15 for approval prior to filing the rules pursuant to section 24 16 17A.5. 24 17 2. Not later than ninety days after the effective date of 24 18 this part of this Act, the governor shall appoint the members 24 19 of the organic standards review and appeals board as 24 20 established pursuant to section 190C.2. The governor shall 24 21 make the appointments from nominations received by the 24 22 governor from interested persons and organizations as 24 23 recognized by the governor. Members initially appointed to 24 24 the board are not required to be certified as provided in 24 25 section 190C.13. 24 26 Sec. 221. EFFECTIVE AND APPLICABILITY DATES. This part of 24 27 this Act, being deemed of immediate importance, takes effect 24 28 upon enactment. However, the department shall not be required 24 29 to implement all of the provisions of this part of this Act 24 30 until it receives necessary certification or approval by the 24 31 United States department of agriculture. 24 32 EXPLANATION 24 33 DIVISION I 24 34 This division of the bill relates to agricultural finance 24 35 by providing for a number of programs to assist agricultural 25 1 producers and businesses involved in value-added agricultural 25 2 products and processes. 25 3 Code section 7C.4A allocates a ceiling among the various 25 4 governmental units which are authorized to issue private 25 5 activity bonds under the laws of this state. The section 25 6 allocates a percentage of the state ceiling for a number of 25 7 public purposes, including housing, job training, and 25 8 education. Sixteen percent of the state ceiling is allocated 25 9 to qualified small issue bonds issued for first-time farmers, 25 10 under programs administered by the agricultural development 25 11 authority. This bill increases the allocation to 20 percent 25 12 of the state ceiling. The bill eliminates a provision 25 13 allocating five percent of the state ceiling for the issuance 25 14 of private activity bonds by political subdivisions authorized 25 15 to issue such bonds. 25 16 This division of the bill establishes an agrifutures loan 25 17 board created within the department of economic development. 25 18 This division provides that the board is composed of voting 25 19 members appointed by the governor and nonvoting ex officio 25 20 members including officials in the executive branch and 25 21 legislative members. This division provides procedures for 25 22 the operation of the board. The board is charged to review 25 23 and recommend to the department business projects for support 25 24 under the value-added agricultural products and processes 25 25 financial assistance program. This division provides that the 25 26 board must review and approve business projects for support 25 27 under the agrifutures revolving loan program created in this 25 28 division. This division abolishes the agricultural products 25 29 advisory council which evaluated applications for the value- 25 30 added agricultural products and processes financial assistance 25 31 program. The bill also requires the board to establish 25 32 eligibility requirements for borrowers participating in a 25 33 value-added agricultural linked investment program established 25 34 in the bill. 25 35 This division of the bill amends the "Linked Investments 26 1 for Tomorrow Act", by providing for qualified linked 26 2 investments in which the treasurer of state places a 26 3 certificate of deposit with an eligible lending institution at 26 4 a certain interest rate on the condition that the institution 26 5 agrees to lend the value of the deposit to an eligible 26 6 borrower at a special rate. The moneys must be used to 26 7 support a value-added agricultural linked investment program 26 8 administered by the treasurer of state. 26 9 The purpose of the program is to provide capital in the 26 10 form of low-interest loans in order to stimulate existing or 26 11 to encourage new businesses that add value through the 26 12 processing of agricultural commodities and to encourage the 26 13 production of agricultural commodities, if there is a shortage 26 14 in production. 26 15 This division of the bill increases the amount of moneys 26 16 that the treasurer of state may invest in the linked 26 17 investment program from sixty-eight million to one hundred 26 18 eight million. The treasurer of state is prohibited from 26 19 depositing more than 10 percent of the balance of the state 26 20 pooled money fund in certificates of deposit in eligible 26 21 lending institutions pursuant to this division of Code chapter 26 22 12. This division provides that the treasurer of state must 26 23 allocate $40 million for purposes of supporting the value- 26 24 added agricultural linked investment program. A borrower is 26 25 not eligible to receive more than $1 million in program 26 26 assistance. This division provides that an initial 26 27 certificate of deposit which is part of a qualified linked 26 28 investment placed with an eligible lending institution has a 26 29 maturity of up to 18 months. It may be renewed at the option 26 30 of the treasurer of state each year for nine years. 26 31 This division of the bill also establishes an agrifutures 26 32 revolving loan program administered by the department of 26 33 economic development. This division requires the department 26 34 to provide program assistance to qualified applicants for 26 35 purposes of financing business projects which enhance value- 27 1 added agricultural production and processing in this state. 27 2 According to this division, assistance is limited to 27 3 nonforgivable loans or loan guarantees. It also provides that 27 4 a loan or guarantee cannot be outstanding for more than three 27 5 years. This division provides that program assistance must be 27 6 provided to qualified applicants as approved by the 27 7 agrifutures loan board. The department in cooperation with 27 8 the board is required to adopt rules necessary in order to 27 9 administer the program, including rules relating to 27 10 application requirements, and the terms and conditions of 27 11 providing assistance, the collection of debts and for the 27 12 recovery of loaned or guaranteed moneys, and the management of 27 13 property acquired in connection with such loans or guarantees. 27 14 This division of the bill creates an agrifutures revolving 27 15 loan fund to support the program. This division provides 27 16 procedures for administration of the fund by the department. 27 17 This division amends Code section 423.24 which allocates use 27 18 tax moneys to the Iowa comprehensive petroleum underground 27 19 storage tank marketability fund through December 31, 2002. 27 20 This division provides that $4,250,000 per quarter from the 27 21 use tax shall be deposited in the agrifutures revolving loan 27 22 fund beginning January 1, 1998, and ending June 30, 1999, to a 27 23 maximum of $25 million. This division also provides that 27 24 moneys deposited in the Iowa comprehensive petroleum 27 25 underground storage tank marketability fund from January 1, 27 26 1998, until the effective date of this portion of the bill 27 27 must be transferred to the new fund. 27 28 DIVISION II 27 29 Division II of this bill establishes requirements for the 27 30 production, handling, processing, and sale of organic 27 31 agricultural products, including commodities and processed 27 32 products. The requirements are administered by the department 27 33 of agriculture and land stewardship. This division of the 27 34 bill replaces provisions in chapter 190B which currently 27 35 governs the sale of organic food. 28 1 This division of the bill establishes a certification 28 2 standards and appeals board within the department. The 28 3 members of the board appointed by the governor represent 28 4 persons involved in the production, handling, processing, and 28 5 sale of organic agricultural products. The board also 28 6 includes a member with an educational background in 28 7 agricultural or food science and a person representing public 28 8 interest, consumer, or environmental organizations. The board 28 9 is responsible for a number of issues, including monitoring 28 10 the industry, compiling and distributing materials designed to 28 11 assist interested persons, assisting the department in 28 12 developing and interpreting the requirements of the new 28 13 chapter, providing recommendations to the department regarding 28 14 the administration and enforcement of the chapter, and hearing 28 15 appeals of contested cases involving disciplinary action 28 16 brought by the department against persons violating the 28 17 requirement of this division of the bill. 28 18 This division of the bill provides a number of requirements 28 19 which must be satisfied in order to sell an agricultural 28 20 product as organic, regardless of whether the product was 28 21 produced, handled, or processed in the state or outside of the 28 22 state. The requirements include standards which the 28 23 department is required to establish by rulemaking. This 28 24 division of the bill requires that the agricultural product 28 25 must be produced, handled, and processed without the use of 28 26 synthetic additives or materials. 28 27 This division of the bill requires the department to 28 28 establish and administer a program to certify producers, 28 29 handlers, and processors of agricultural products who make 28 30 claims of genuineness about the production, handling, and 28 31 processing of organic agricultural products. In order to be 28 32 certified, a producer, handler, and processor must submit to 28 33 the department an organic plan which includes methods used to 28 34 ensure that the agricultural products are produced, handled, 28 35 and processed according to this division of the bill's 29 1 standards. Persons required to be certified are also required 29 2 to maintain records regarding business operations. Retailers 29 3 and persons receiving limited income from the sale of 29 4 agricultural products are excused from certification 29 5 requirements. However, these persons are required to register 29 6 with the department. This division of the bill provides that 29 7 a person is not required to both be certified and registered. 29 8 This division of the bill imposes fees upon persons required 29 9 to be certified or registered. The fees are established at an 29 10 amount required to support administration and enforcement of 29 11 this division of the bill. This division of the bill 29 12 appropriates an amount of money equal to the moneys raised in 29 13 fees in order to support departmental operations. 29 14 This division of the bill authorizes the department to 29 15 regulate the labeling of agricultural products claimed as 29 16 being organic. The department is also authorized to establish 29 17 a seal certifying that an agricultural product does comply 29 18 with the requirements of this division of the bill. 29 19 This division of the bill contains a number of provisions 29 20 regarding enforcement. Generally, the department and the 29 21 attorney general are required to enforce this division of the 29 22 bill's provisions. The department is authorized to conduct 29 23 investigations, including investigations based on complaints 29 24 received by the department. The department is also authorized 29 25 to conduct inspections of premises where production, handling, 29 26 processing, and sales occur. The department may examine 29 27 agricultural products to ensure compliance with this division 29 28 of the bill's provisions. The department may take 29 29 disciplinary action concerning a person who is certified or 29 30 registered, by issuing a letter of warning or reprimand, 29 31 suspending or terminating a certification or denying an 29 32 application for certification, or suspending or canceling a 29 33 registration or denying an application for registration. The 29 34 department may issue a stop sale order to prevent the sale of 29 35 that agricultural product which may be sold in violation of 30 1 this division of the bill's provisions. This division of the 30 2 bill grants a right of a private attorney general to persons, 30 3 by allowing anyone to bring an action in district court to 30 4 restrain a producer, processor, handler, or retailer from 30 5 selling agricultural products in violation of this division. 30 6 A person who violates this division of the bill's 30 7 provisions is subject to a civil penalty of not more than 30 8 $5,000. Civil penalties must be assessed by a district court 30 9 in an action initiated by the attorney general. 30 10 This division of the bill provides for implementation of 30 11 this division of the bill's provisions, including the adoption 30 12 of rules and the appointment of members to the organic 30 13 standards review and appeals board. 30 14 This division of the bill takes effect upon enactment. 30 15 However, the department is not required to implement all of 30 16 the provisions of this bill until certified or approved by the 30 17 United States department of agriculture. 30 18 LSB 4328HC 77 30 19 da/sc/14
Text: HSB00643 Text: HSB00645 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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