Text: HF00730 Text: HF00732 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 PACKER FEEDING 1 3 Section 1. Section 9H.1, Code 1999, is amended by adding 1 4 the following new subsection: 1 5 NEW SUBSECTION. 2A. "Animal feeding operation" means the 1 6 same as defined in section 455B.161. 1 7 Sec. 2. Section 9H.1, subsection 19, Code 1999, is amended 1 8 by striking the subsection and inserting in lieu thereof the 1 9 following: 1 10 19. a. "Packer" means a person doing business in this 1 11 state, as follows: 1 12 (1) The person is engaged in slaughtering livestock; 1 13 receiving, purchasing, or soliciting livestock for slaughter; 1 14 or processing meat products from slaughtered livestock. 1 15 (2) The meat products of the slaughtered livestock are 1 16 directly or indirectly offered for resale or for public 1 17 consumption, and the meat products have a total annual 1 18 wholesale value of ten million dollars or more. 1 19 b. A "packer" includes all of the following persons: 1 20 (1) A dealer or broker as defined in section 172A.1 who is 1 21 engaged in buying or soliciting livestock for slaughter on 1 22 behalf of a packer. 1 23 (2) A person with a ten percent or greater equity interest 1 24 in an entity which is a packer. 1 25 c. A "packer" does not include any of the following: 1 26 (1) A frozen food locker plant regulated under chapter 1 27 172. 1 28 (2) A livestock market as defined in section 455B.161. 1 29 (3) A food establishment regulated pursuant to chapter 1 30 137F. 1 31 Sec. 3. Section 9H.2, Code 1999, is amended to read as 1 32 follows: 1 33 9H.2 PROHIBITED OPERATIONS EXCEPTIONS. 1 34 1. In order to preserve free and private enterprise, 1 35 prevent monopoly, and protect consumers,it is unlawful for2 1any processor of beef or pork or limited partnership in which2 2a processor holds partnership shares as a general partner or2 3partnership shares as a limited partner, or limited liability2 4company in which a processor is a member, toall of the 2 5 following shall apply: 2 6 a. A packer shall not directly or indirectly own, control, 2 7 or operate afeedlot in Iowa in which hogs or cattle are fed2 8for slaughterfacility for the care and feeding of swine or 2 9 cattle in this state, including an animal feeding operation or 2 10 a feedlot.In addition, a processor2 11 b. A packer shall not directly or indirectlycontrol the2 12manufacturing, processing, or preparation for sale of pork2 13products derived from swine if the processor contracted2 14 contract for the care and feeding of the swine in this state.2 15However, this section does not apply to a cooperative2 16association organized under chapter 497, 498, or 499, if the2 17cooperative association contracts for the care and feeding of2 18swine with a member of the cooperative association who is2 19actively engaged in farming. This section does not apply to2 20an association organized as a cooperative in which another2 21cooperative association organized under chapter 497, 498, or2 22499 is a member, if the association contracts with a member2 23which is a cooperative association organized under chapter2 24497, 498, or 499, which contracts for the care and feeding of2 25swine with a member of the cooperative who is actively engaged2 26in farming.or another state, if the packer does any of the 2 27 following: 2 28 (1) Slaughters swine in this state. 2 29 (2) Receives, purchases, or solicits swine for slaughter 2 30 in this state. 2 31 (3) Processes swine in this state. 2 32 2. This section shall notpreclude a processor, limited2 33partnership, or limited liability company from contracting2 34 prohibit a packer from doing any of the following: 2 35 a. Contracting for the purchase ofhogsswine or cattle,3 1provided that where the. However, if the contract sets a date 3 2 for delivery which is more than twenty days after the making 3 3 of the contractitthe contract shall provide all of the 3 4 following: 3 51.(1)Specify aA calendar day for delivery of the 3 6 livestock; or. 3 72.(2)Specify theThe month for the delivery, and shall. 3 8 The contract shall allow thefarmerseller to set the week for 3 9 the delivery within such month and theprocessor, limited3 10partnership, or limited liability companypacker to set the 3 11 date for delivery within such week.This section shall not3 12prevent processors or educational institutions from carrying3 13 b. Carrying on legitimate research, educational, or 3 14 demonstration activities, nor shall it prevent processors from3 15owning and operating facilities to provide normal. 3 16 c. Owning or operating a facility that provides for the 3 17 care and feeding ofanimalsswine or cattle for a period not 3 18 to exceed ten days immediately prior to slaughter, or for a 3 19 longer period in an emergency.Any processor or limited3 20partnership which owns, controls, or operates a feedlot on3 21August 15, 1975 shall have until July 1, 1985 to dispose of3 22the property.3 23 Sec. 4. Section 9H.3, Code 1999, is amended to read as 3 24 follows: 3 25 9H.3 PENALTIES FOR PROHIBITED OPERATION INJUNCTIVE 3 26 RELIEF. 3 27 Aprocessorpacker violating section 9H.2 shall be assessed 3 28 a civil penalty of not more than twenty-five thousand dollars. 3 29 The courts of this state may prevent and restrain violations 3 30 of this chapter through the issuance of an injunction. The 3 31 attorney general or a county attorney shall institute suits on 3 32 behalf of the state to prevent and restrain violations of this 3 33 chapter. 3 34 Sec. 5. Section 9H.9, Code 1999, is amended to read as 3 35 follows: 4 1 9H.9 REPORTS BYPROCESSORSPACKERS. 4 2Any processor of beef or pork in this stateA packer of 4 3 cattle or swine shall file with the secretary of state on or 4 4 before March 31 of each year, a report setting forth all of 4 5 the following: 4 6 1. The number ofhogsswine and the number of cattle owned 4 7 and fed more than thirty days by theprocessorpacker inIowa4 8 this state during the preceding calendar or fiscal year. 4 9 2. The total number ofhogsswine and the total number of 4 10 cattle owned and fed more than thirty days by theprocessor4 11 packer during the preceding calendar year. 4 12 3. The number ofhogsswine and the number of cattle 4 13 slaughtered inIowathis state by theprocessorpacker during 4 14 the preceding calendar or fiscal year. 4 15 4. The total number ofhogsswine and the total number of 4 16 cattle slaughtered by theprocessorpacker during the 4 17 preceding calendar or fiscal year. 4 18 5. The total number ofhogsswine for which theprocessor4 19 packer has contracted for feeding as provided in section 9H.2. 4 20 Sec. 6. Section 579A.1, subsection 5, Code 1999, is 4 21 amended to read as follows: 4 22 5."Processor""Packer" means the same as defined in 4 23 section 9H.1. 4 24 Sec. 7. Section 579A.3, subsection 2, Code 1999, is 4 25 amended to read as follows: 4 26 2. Theprocessorpacker who has purchased the cattle 4 27 within three days after the cattle have left the custom cattle 4 28 feedlot. 4 29 Sec. 8. APPLICABILITY. This division of this Act shall 4 30 not apply to contracts for the care and feeding of swine 4 31 executed by a cooperative association under section 9H.2 prior 4 32 to the effective date of this division of this Act. However, 4 33 a cooperative association shall not execute a new contract or 4 34 extend an existing contract except as provided in this Act. 4 35 DIVISION II 5 1 PRODUCER MARKETING 5 2 Sec. 9. NEW SECTION. 7.23 SWINE CONFINEMENT FEEDING 5 3 OPERATIONS MORATORIUM. 5 4 The governor may issue an executive order declaring a 5 5 moratorium on the construction of confinement feeding 5 6 operation buildings which are part of confinement feeding 5 7 operations associated with the care and feeding of swine. 5 8 1. The governor shall issue the executive order only if 5 9 the governor finds that prices paid to swine producers have 5 10 created an economic emergency that threatens the viability of 5 11 the pork industry. 5 12 2. The moratorium may apply to the construction of 5 13 confinement buildings as provided in chapter 455B. The 5 14 moratorium may direct the department of natural resources to 5 15 suspend approving any permit for the construction of 5 16 confinement buildings pursuant to section 455B.200. 5 17 3. The moratorium shall become effective on the date that 5 18 the executive order is filed with the secretary of state. 5 19 4. The moratorium may exempt any of the following: 5 20 a. The completion of a confinement building, if 5 21 construction began prior to the effective date of the 5 22 moratorium. 5 23 b. The approval of an application for a construction 5 24 permit by the department, if a complete permit was submitted 5 25 prior to the effective date of the application. 5 26 5. The governor may cooperate with governors in other 5 27 leading swine-producing states, including Illinois and North 5 28 Carolina, in declaring a moratorium under this section. 5 29 6. The moratorium shall expire within two years from its 5 30 effective date, unless the executive order provides for an 5 31 earlier date. 5 32 Sec. 10. NEW SECTION. 172C.1 DEFINITIONS. 5 33 As used in this chapter, unless the context otherwise 5 34 requires: 5 35 1. "Marketing contract" means a contract executed between 6 1 a swine producer and a swine purchaser, for the purchase of 6 2 swine raised or fed by the swine producer, for slaughter by 6 3 the swine purchaser or a subsequent purchaser. 6 4 2. "Packing" means to be engaged in the business of 6 5 slaughtering swine or receiving, purchasing, or soliciting 6 6 swine for slaughter. 6 7 3. "Swine market" means any place where swine are 6 8 assembled from two or more sources for public auction, private 6 9 sale, or on a commission basis, which is under state or 6 10 federal supervision, including a livestock sale barn, auction 6 11 market, street market, buying station, livestock dealer's 6 12 yard, or packing facility. 6 13 4. "Swine producer" means a person who provides for the 6 14 care and feeding of swine for more than thirty consecutive 6 15 days. 6 16 5. "Swine purchaser" means a person purchasing swine at a 6 17 swine market or by a marketing contract. 6 18 Sec. 11. NEW SECTION. 172C.2 PROVISIONS OF 6 19 CONFIDENTIALITY PROHIBITED. 6 20 1. Except as provided in this section, a provision of a 6 21 marketing contract is void, if the provision requires that 6 22 information in the contract, including but not limited to any 6 23 term or condition, be confidential. 6 24 2. This section does not affect other provisions of the 6 25 contract which can be given effect without the voided 6 26 provision. 6 27 3. The secretary of state, in consultation with the 6 28 attorney general, may provide by rule that the requirements of 6 29 subsection 1 do not require either party to divulge the 6 30 contract information to another person. 6 31 4. This section does not apply to a provision or 6 32 information that is a trade secret as provided in chapter 550. 6 33 Sec. 12. NEW SECTION. 172C.3 REPORTING REQUIREMENTS. 6 34 1. A swine purchaser shall report the price paid for swine 6 35 purchased by the person at a swine market or by a marketing 7 1 contract. The swine purchaser shall report the price paid at 7 2 the close of the business day that the swine were purchased at 7 3 a swine market or the date the marketing contract is executed 7 4 by the swine producer and the swine purchaser. This section 7 5 shall not apply if the prices paid for swine were reported to 7 6 the agricultural marketing service of the United States 7 7 department of agriculture. 7 8 2. A report required by this section shall be completed on 7 9 forms developed by the department for comparison of the 7 10 reported price information with cash market prices reported 7 11 for other swine to the agricultural marketing service of the 7 12 United States department of agriculture. The swine purchaser 7 13 shall complete and submit the forms to the department as 7 14 required by the department. However, the report shall not 7 15 include information regarding the identity of a swine 7 16 producer. 7 17 Sec. 13. NEW SECTION. 172C.4 PENALTIES. 7 18 The failure of a swine purchaser to report as required by 7 19 section 172C.3 is punishable by a civil penalty not to exceed 7 20 one thousand dollars for each day that a timely or accurate 7 21 report is not submitted. The department shall refer to the 7 22 attorney general any swine purchaser whom the department 7 23 believes is in violation of this section. The attorney 7 24 general may, upon referral from the department, file an action 7 25 in district court to enforce this section and section 172C.3. 7 26 Sec. 14. NEW SECTION. 191A.1 PURPOSE. 7 27 The purpose of this chapter is to promote this state's 7 28 economy, by providing for the promotion of pork products that 7 29 have been processed in this state and offered for sale to 7 30 consumers in this state, other states, and other nations. 7 31 Sec. 15. NEW SECTION. 191A.2 DEFINITIONS. 7 32 As used in this chapter, unless the context otherwise 7 33 requires: 7 34 1. "Department" means the department of inspections and 7 35 appeals. 8 1 2. "Food product" means any product capable of use as 8 2 human food. 8 3 3. "Identify" means to identify pork products as having 8 4 been processed in this state, as provided in section 191A.3. 8 5 4. "Packer" means a person engaged in the business of 8 6 slaughtering swine in this state, if the carcasses of the 8 7 swine are processed or sold for processing into pork products. 8 8 5. "Pork product" means any fresh or frozen raw pork 8 9 derived from the carcass of swine, if the product is sold for 8 10 use as human food in this state or outside this state. 8 11 6. "Processor" means a person engaged in the business of 8 12 manufacturing pork products derived from the carcasses of 8 13 swine for sale, including selling cuts of pork or ground pork 8 14 manufactured by the person, if both of the following apply: 8 15 a. The processing occurs in this state. 8 16 b. The person's total annual sales of the pork products is 8 17 five million dollars or more. 8 18 7. "Retailer" means a person engaged in the business of 8 19 selling food products on a retail basis for off-premises 8 20 consumption, if any of the following applies: 8 21 a. The person has gross annual sales of food products of 8 22 ten million dollars or more. 8 23 b. The person has gross annual sales of pork products of 8 24 one million dollars or more. 8 25 8. "Sale" means any transfer, exchange, or barter, in any 8 26 manner or by any means, for consideration, and includes an 8 27 offer for sale. 8 28 9. "Wholesaler" means a person engaged in the business of 8 29 packaging and selling pork products on a wholesale basis, if 8 30 any of the following applies: 8 31 a. The person has gross annual sales of food products of 8 32 three million dollars or more. 8 33 b. The person has gross annual sales of pork products of 8 34 three million dollars or more. 8 35 Sec. 16. NEW SECTION. 191A.3 IDENTIFICATION 9 1 REQUIREMENTS. 9 2 1. a. A processor shall not sell a pork product to the 9 3 purchaser of the pork product, unless the pork product is 9 4 identified. 9 5 b. A wholesaler who receives a pork product that has been 9 6 identified shall not sell the pork product to the purchaser of 9 7 the pork product, unless the pork product is identified. 9 8 c. A retailer who receives a pork product that has been 9 9 identified shall not sell the pork product to the consumer of 9 10 the pork product, unless the pork product is identified. The 9 11 identification shall be in the form of the following 9 12 statement: "PRIDE OF IOWA". The statement shall appear in a 9 13 conspicuous manner. If the pork product is offered for sale 9 14 in a packaged form, the package shall be labeled with the 9 15 statement. If the pork product is offered for sale in 9 16 unpackaged form, the statement shall appear on a placard in 9 17 close proximity to the pork product. 9 18 2. This section does not require any of the following: 9 19 a. That a packer designate the origin of swine or swine 9 20 carcasses. 9 21 b. The identification of a pork product that is cooked 9 22 prior to sale on a retail basis. 9 23 c. That a person maintain identification records. 9 24 Sec. 17. NEW SECTION. 191A.4 DEPARTMENTAL DUTIES 9 25 ADMINISTRATION AND MARKETING. 9 26 1. The department shall adopt rules pursuant to chapter 9 27 17A which are necessary in order to administer and enforce 9 28 this chapter, including rules required for the identification 9 29 of pork products by processors, wholesalers, and retailers as 9 30 provided in section 191A.3. 9 31 a. The rules shall require practices and procedures 9 32 necessary in order to provide a practicable, simple, and cost- 9 33 effective system for the identification. 9 34 b. The department shall provide rules for the labeling of 9 35 pork products offered for sale by retailers, including the 10 1 size and shape of labels or placards and the font and point 10 2 size of the print. The department may require identification 10 3 information in addition to the statement required pursuant to 10 4 section 191A.3. 10 5 2. The department of agriculture and land stewardship 10 6 shall promote the use of labels by retailers outside this 10 7 state to identify pork products processed in this state. 10 8 Sec. 18. NEW SECTION. 191A.5 PENALTIES EVIDENCE OF A 10 9 VIOLATION. 10 10 1. A person who violates section 191A.3 or 191A.4 is 10 11 subject to a civil penalty of not more than one thousand 10 12 dollars for each illegal sale. The department shall establish 10 13 a schedule of civil penalties based on the dollar amount of 10 14 pork products sold in violation of section 191A.3 or 191A.4. 10 15 2. A person shall not be subject to a civil penalty for 10 16 selling a pork product without an identification or with a 10 17 wrong identification, if the person sells the pork product in 10 18 good faith. Evidence of good faith includes compliance with 10 19 established practices and routine procedures which reasonably 10 20 provides identification consistent with sections 191A.3 and 10 21 191A.4. 10 22 Sec. 19. Section 714.8, Code 1999, is amended by adding 10 23 the following new subsection: 10 24 NEW SUBSECTION. 17. A swine purchaser who includes a 10 25 confidentiality provision in a marketing contract in violation 10 26 of section 172C.2. 10 27 Sec. 20. DEPARTMENTAL RULEMAKING. In adopting rules 10 28 required to administer chapter 191A, as enacted by this 10 29 division of this Act, the department of inspections and 10 30 appeals shall consult with interested parties, including the 10 31 industries affected, the department of economic development, 10 32 and the department of agriculture and land stewardship. 10 33 Sec. 21. STATE PORK PROMOTION. The governor, in 10 34 cooperation with the secretary of agriculture and the Iowa 10 35 pork producers council, shall designate a month to promote the 11 1 consumption of pork products and the contributions of the pork 11 2 producers in this state, including the nutritional and health 11 3 benefits associated with consuming pork products, and the 11 4 positive benefit of pork producers to this state's economic 11 5 vitality. 11 6 Sec. 22. INVESTIGATION OF LARGE PORK PRODUCERS AND 11 7 PROCESSORS. 11 8 1. As used in this section: 11 9 a. "Large pork producer" means a person who owns or 11 10 controls one or more confinement feeding operations, if the 11 11 animal weight capacity of all confinement feeding operations 11 12 owned or controlled by the person is one million two hundred 11 13 fifty thousand pounds or more. 11 14 b. "Processor" means a person engaged in slaughtering 11 15 swine for sale of carcasses or the manufacture of meat 11 16 products from carcasses, including a dealer or broker or an 11 17 agent licensed pursuant to chapter 172A. 11 18 2. The office of attorney general, in cooperation with the 11 19 department of agriculture and land stewardship, shall conduct 11 20 an investigation of large producers and processors to 11 21 determine the extent that large pork producers receive 11 22 differential pricing for swine produced for or delivered to 11 23 processors, including the extent to which differential pricing 11 24 is based on volume of swine marketed to processors. 11 25 3. In carrying out the investigation, the attorney general 11 26 may inspect the premises used by any large producer or 11 27 processor in conducting its business, and may examine the 11 28 books, accounts, records, and papers of the large producer or 11 29 processor which pertain to swine purchases. The inspections 11 30 and examinations shall be conducted during ordinary business 11 31 hours. 11 32 4. In conducting the investigation, an official of the 11 33 attorney general's office or the department shall enter the 11 34 premises of a large producer or a processor in the same manner 11 35 as in investigations by an official of the department of 12 1 natural resources pursuant to section 455B.103. The person 12 2 shall also comply with standard biosecurity or health and 12 3 safety requirements customarily required by the large producer 12 4 or processor. 12 5 5. The attorney general shall submit a report to the 12 6 general assembly not later than January 10, 2000, providing 12 7 findings and recommendations, including any proposed 12 8 legislation. 12 9 Sec. 23. EDUCATIONAL SEMINARS FOR PORK PRODUCERS 12 10 ECONOMIC RISKS AND BENEFITS ASSOCIATED WITH PRODUCTION AND 12 11 MARKETING OPPORTUNITIES. 12 12 1. The Iowa cooperative extension service in agriculture 12 13 and home economics of Iowa state university of science and 12 14 technology shall conduct educational seminars regarding all of 12 15 the following: 12 16 a. The terms and conditions of production and marketing 12 17 contracts. 12 18 b. Corporate farming statutes, including statutes 12 19 providing for farmers entities as provided in chapter 10, 12 20 cooperative associations organized under chapter 501, and Iowa 12 21 agricultural industry finance corporations as provided in 12 22 chapter 15E. 12 23 2. The Iowa cooperative extension service shall cooperate 12 24 to every extent practicable with all of the following in 12 25 conducting the seminars: 12 26 a. Other colleges of the university as designated by the 12 27 president of the university. 12 28 b. The office of attorney general. 12 29 c. The Iowa pork producers association and the Iowa farm 12 30 bureau federation. 12 31 3. The seminars shall be conducted around the state in 12 32 person or through use of the Iowa telecommunications network 12 33 created in chapter 8D. 12 34 4. The seminars shall provide answers to commonly asked 12 35 questions regarding executing contracts and participating in 13 1 entities under chapters 10, 15E, and 501, including associated 13 2 risks and benefits. 13 3 DIVISION III 13 4 SWINE HEALTH 13 5 Sec. 24. Section 163.30, subsections 4 and 5, Code 1999, 13 6 are amended to read as follows: 13 7 4. a.All swineExcept as otherwise provided in this 13 8 subsection, all of the following shall apply: 13 9 (1) Swine moved shall be individually identified with a 13 10 distinctive and easily discernible ear tag affixed in either 13 11 ear of the animal or other identification acceptable to the 13 12 department, which has been specified by rule promulgated under 13 13 the department's rulemaking authority. The department shall 13 14 make ear tags available at convenient locations within each 13 15 county and shall sell such tags at a price not exceeding the 13 16 cost to producers and others to comply with this section. 13 17 Every seller, dealer and market operator shall keep a 13 18 record of the ear tag numbers, or other approved 13 19 identification, and the farm of origin of swine moved by or 13 20 through that person, which records shall be made available by 13 21 that person to any appropriate representative of the 13 22 department or the United States department of agriculture. 13 235.(2)All swineSwine moved shall be accompanied by an 13 24 official health certificate or veterinarian inspection 13 25 certificate issued by the state of origin and prepared and 13 26 signed by a veterinarian. The health certificate or 13 27 veterinarian inspection certificate shall show the point of 13 28 origin, the point of destination, individual identification, 13 29 immunization status, and, when required, any movement permit 13 30 number assigned to the shipment by the department. All such 13 31 movement of swine shall be completed within seventy-two hours 13 32 unless an extension of time for movement is granted by the 13 33 department. 13 34 b. This subsection does not require an identification or 13 35 certification as follows: 14 1 (1)However, swineSwine may be moved intrastate directly 14 2 to an approved state, federal or auction market withoutsuch14 3 an identification or certification, there to be identified and 14 4 certificated. 14 5 (2)However, registeredRegistered swine for exhibition or 14 6 breeding purposes whichcan beare individually identified by 14 7 an ear notch or tattoo or other method approved by the 14 8 department are excepted fromthisthe identification 14 9 requirement. In addition, native Iowa swine moved from farm 14 10 to farmshall beare excepted from the identification 14 11 requirement if the owner transferring possession of the feeder 14 12 pigs executes a written agreement with the person taking 14 13 possession of the feeder pigs. The agreement shall provide 14 14 that the feeder pigs shall not be commingled with other swine 14 15 for a period of thirty days. The owner transferring 14 16 possession shall be responsible for making certain that the 14 17 agreement is executed and for providing a copy of the 14 18 agreement to the person taking possession. 14 19 c. Feeder pigs must be inspected for pseudorabies by a 14 20 veterinarian licensed or certified as provided in chapter 169 14 21 prior to entering this state as provided in section 166D.10. 14 22 d. The department may combine an official health 14 23 certificate or a veterinarian inspection certificate with a 14 24 certificate of inspection required under chapter 166D. 14 25 Sec. 25. Section 166D.10, subsection 6, Code 1999, is 14 26 amended to read as follows: 14 27 6. In addition to other applicable requirements of this 14 28 section, all of the following shall apply to feederswinepigs 14 29 moved from a location outside of this state to a location 14 30 within this stateshall: 14 31 a. The feeder pigs must be inspected by a veterinarian 14 32 licensed or certified as provided in chapter 169 prior to 14 33 entering this state. 14 34 b. The feeder pigs must be vaccinated if the feeder swine 14 35 are moved into a county where the department determines that 15 1 more than three percent of all herds in the county are 15 2 infected herds. The feeder swine shall be vaccinated with a 15 3 differentiable vaccine according to procedures established by 15 4 rules adopted by the department. However, thissubsection15 5 paragraph shall not require vaccination if the feeder swine 15 6 originate from a qualified negative herd or a qualified 15 7 differentiable negative herd and are introduced to a qualified 15 8 negative herd or a qualified differentiable negative herd. 15 9 Sec. 26. Section 267.8, Code 1999, is amended to read as 15 10 follows: 15 11 267.8 LIVESTOCK DISEASE RESEARCH FUND. 15 12 There is created in the office of the treasurer of state a 15 13 fund to be known as the livestock disease research fund. For 15 14 each fiscal year, there is appropriated from the general fund, 15 15 to the livestock disease research fund, the amount of seven 15 16 hundred fifty thousand dollars. Any balance insaidthe fund 15 17 onJune 30the close of each fiscal year shall revert to the 15 18 general fund as provided in section 8.33. 15 19 DIVISION IV 15 20 EFFECTIVE DATES 15 21 Sec. 27. EFFECTIVE DATES. 15 22 1. Except as provided in subsection 2, this Act, being 15 23 deemed of immediate importance, takes effect upon enactment. 15 24 2. The amendment to section 267.8 in this Act takes effect 15 25 July 1, 1999. 15 26 EXPLANATION 15 27 This bill relates to the care, feeding, and marketing of 15 28 swine, by providing for packer feeding of swine, the marketing 15 29 of swine, and the movement of swine into this state. 15 30 DIVISION I 15 31 PACKER FEEDING 15 32 This division amends provisions in Code chapter 9H that 15 33 currently prohibit processors from owning, controlling, and 15 34 operating feedlots in this state and from contracting for the 15 35 care and feeding of swine in this state. There is an 16 1 exception for cooperative associations organized in this state 16 2 that enter into contracts for the care and feeding of swine 16 3 with its members. 16 4 This division provides that the prohibition applies to 16 5 packers. This division in part defines a "packer" as a person 16 6 engaged in slaughtering livestock; receiving, purchasing, or 16 7 soliciting livestock for slaughter; or processing meat 16 8 products from slaughtered livestock. 16 9 This division provides that a packer is prohibited from 16 10 directly or indirectly owning, controlling, or operating any 16 11 livestock facility in this state including an animal feeding 16 12 operation or feedlot. 16 13 This division prohibits a packer from contracting for the 16 14 care and feeding of the swine in this state or another state, 16 15 if the packer slaughters swine in this state, receives, 16 16 purchases, or solicits swine for slaughter in this state, or 16 17 processes swine in this state. This division eliminates the 16 18 exception for cooperative associations. 16 19 The division states that its provisions do not interfere 16 20 with contracts for the care and feeding of swine executed by a 16 21 packer under Code section 9H.2 prior to the effective date of 16 22 this division. However, this division prohibits a packer from 16 23 executing a new contract or extending an existing contract 16 24 except as provided in this division of the bill. 16 25 A packer who violates this division's provisions is subject 16 26 to a civil penalty of not more than $25,000. 16 27 DIVISION II 16 28 PRODUCER MARKETING 16 29 This division authorizes the governor to issue an executive 16 30 order declaring a moratorium on the construction of structures 16 31 which are part of confinement feeding operations associated 16 32 with the care and feeding of swine. The governor shall issue 16 33 the executive order only if the governor finds that prices 16 34 paid to swine producers have created an economic emergency 16 35 that threatens the viability of the pork industry. The 17 1 moratorium becomes effective on the date that the executive 17 2 order is filed with the secretary of state and may last for 17 3 two years. 17 4 This division requires a swine purchaser to report the 17 5 price paid for swine purchased by the person at a swine market 17 6 or by a marketing contract. This division requires the swine 17 7 purchaser to complete the report at the close of the business 17 8 day that the swine are purchased at a swine market or on the 17 9 date the marketing contract is executed by the swine producer 17 10 and the swine purchaser. 17 11 This division provides that any provision of a marketing 17 12 contract that requires the contract information to be 17 13 confidential is void. 17 14 This division provides that a failure of a swine purchaser 17 15 to submit a report as required in this division is punishable 17 16 by a civil penalty not to exceed $1,000 for each day that a 17 17 timely or accurate report is not submitted. 17 18 This bill creates a new Code chapter 191A intended to 17 19 promote this state's economy, by providing for the promotion 17 20 of meat products that have been processed in this state. 17 21 The bill provides that a processor who manufactures raw 17 22 meat in this state shall not sell the meat, unless the meat is 17 23 identified to the purchaser of the meat. The same requirement 17 24 applies to a wholesaler of the meat. A retailer who receives 17 25 the meat must label it with the statement "PRIDE OF IOWA". If 17 26 the meat is offered for sale in a packaged form, the package 17 27 must be labeled with the statement. If the meat product is 17 28 offered for sale unpackaged, the statement must appear on a 17 29 placard in close proximity to the meat. 17 30 The department of inspections and appeals is responsible 17 31 for administering and enforcing the chapter. The department 17 32 must adopt rules that require practices and procedures 17 33 necessary in order to provide identification, including 17 34 labeling. The department of agriculture and land stewardship 17 35 is required to promote the use of labels identifying meat 18 1 processed in this state, directed at persons selling meat 18 2 products to consumers outside this state. 18 3 A person who violates this bill is subject to a civil 18 4 penalty of not more than $1,000 for each illegal sale. The 18 5 department of inspections and appeals is required to establish 18 6 a schedule of penalties based on the dollar amount of sales 18 7 made in violation of the bill's provisions. The bill provides 18 8 that a person is not subject to a civil penalty for selling 18 9 meat without proper identification if the person sells the 18 10 meat in good faith. 18 11 This division allows the governor, in cooperation with the 18 12 secretary of agriculture and the Iowa pork producers council, 18 13 to designate a month to promote the consumption of pork 18 14 products. 18 15 This division requires that the office of attorney general, 18 16 in cooperation with the department of agriculture and land 18 17 stewardship, conduct an investigation of large producers and 18 18 processors to determine the extent that large pork producers 18 19 receive differential pricing for swine produced for or 18 20 delivered to processors. 18 21 This division requires the Iowa cooperative extension 18 22 service in agriculture and home economics of Iowa state 18 23 university of science and technology to conduct educational 18 24 seminars on the terms and conditions of production and 18 25 marketing contracts, and Iowa's corporate farming statutes. 18 26 DIVISION III 18 27 SWINE HEALTH 18 28 This division requires that feeder swine must be inspected 18 29 for pseudorabies by a veterinarian licensed or certified as 18 30 provided in Code chapter 169 prior to entering this state. A 18 31 person who violates the requirement is subject to a civil 18 32 penalty of at least $100 but not more than $1,000. 18 33 The division appropriates from the general fund, to the 18 34 livestock disease research fund, the amount of $750,000 for 18 35 each fiscal year. 19 1 DIVISION IV 19 2 EFFECTIVE DATE 19 3 Generally, the bill takes effect upon enactment. However, 19 4 the provision that appropriates moneys to the livestock 19 5 disease research fund takes effect on July 1, 1999. 19 6 LSB 2177YH 78 19 7 da/jw/5
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