Text: HSB00288 Text: HSB00290 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 FINANCING FOR ECONOMIC GROWTH 1 3 Section 1. NEW SECTION. 15E.113 PRECISION-USE CROP 1 4 UTILIZATION FINANCIAL ASSISTANCE PROGRAM. 1 5 1. The department shall establish a precision-use crop 1 6 utilization financial assistance program. The department 1 7 shall consult with the Iowa corn growers association and the 1 8 Iowa soybean association. The purpose of the program is to 1 9 encourage the increased production and utilization of 1 10 precision-use crops, including grain produced from such crops 1 11 in this state as provided in chapter 199A. In awarding 1 12 financial assistance, the department shall commit resources to 1 13 assist facilities which are involved in the development of new 1 14 innovative products and processes related to the utilization 1 15 of precision-use crops. In establishing and administering the 1 16 program, the department shall consult with the Iowa corn 1 17 growers association and the Iowa soybean association. 1 18 2. A person is eligible to receive assistance under the 1 19 program if the person satisfies the following requirements: 1 20 a. The person owns an established business, including a 1 21 constructed facility or is proposing to establish a business, 1 22 including by constructing a facility. The business operation, 1 23 including the facility must be located in this state. The 1 24 business, including the facility, must do any of the 1 25 following: 1 26 (1) Produce a good derived from a precision-use crop if 1 27 the good is not commonly produced from a precision-use crop. 1 28 (2) Use a process to produce a good derived from a 1 29 precision-use crop if the process is not commonly used to 1 30 produce the good. 1 31 b. The person applies to the department in a manner and 1 32 according to procedures required by the department. 1 33 c. The person submits a business plan which demonstrates 1 34 managerial and technical expertise. The business plan must 1 35 include a marketing plan, a budget, and a statement of purpose 2 1 stating how the financial assistance will be used. 2 2 3. The department may provide financial assistance to an 2 3 eligible person upon review and evaluation of the person's 2 4 application by the crop bio-integrity council as established 2 5 in section 199A.3. The department shall consider the 2 6 council's evaluation in approving or disapproving the 2 7 application. Financial assistance shall be in the form of a 2 8 loan, forgivable loan, loan guarantee, cost share, 2 9 indemnification of costs, or any combination of such financing 2 10 as deemed appropriate by the department. The department shall 2 11 not approve an application to refinance an existing loan. 2 12 4. The department shall approve an application for 2 13 financial assistance based on a point system which accounts 2 14 for all of the following criteria: 2 15 a. The feasibility of the existing or proposed business to 2 16 remain a viable enterprise in this state for a minimum of six 2 17 years. 2 18 b. The degree to which the business will increase the 2 19 utilization of precision-use crops produced in this state. 2 20 c. The degree to which the business requires financial 2 21 assistance from a governmental source. 2 22 d. The extent to which the existing or proposed business 2 23 is located in a rural region of the state. 2 24 e. The proportion of a local or private funding match to 2 25 be contributed to the project. 2 26 f. The level of need of the region where the existing 2 27 facility is located or the proposed facility is to be located. 2 28 g. The degree to which the facility produces a coproduct 2 29 which is marketed in the same locality where the facility is 2 30 located. 2 31 h. The quality of the jobs to be created. In rating the 2 32 quality of the jobs, the department shall award more points to 2 33 those jobs that have a higher wage scale, have a lower 2 34 turnover rate, are full-time or career-type positions, provide 2 35 comprehensive health benefits, or have other related factors 3 1 which could be considered to be higher in quality than to 3 2 other jobs. Businesses that have wage scales substantially 3 3 below that of existing Iowa businesses in that area should be 3 4 rated as providing the lowest quality of jobs and should be 3 5 given the lowest ranking for providing such assistance. 3 6 i. Whether all known required environmental permits have 3 7 been issued and regulations met. 3 8 5. The university of Iowa, Iowa state university, and the 3 9 university of northern Iowa shall cooperate in assisting 3 10 facilities receiving financial assistance under this section. 3 11 Community colleges and private universities and colleges are 3 12 not precluded from providing this assistance. 3 13 Sec. 2. NEW SECTION. 15E.114 PRECISION-USE CROP 3 14 UTILIZATION FINANCIAL ASSISTANCE FUND. 3 15 1. A precision-use crop utilization financial assistance 3 16 fund is created in the state treasury under the control of the 3 17 department. 3 18 2. The fund shall include any moneys appropriated to the 3 19 fund by the general assembly, payments of interest earned, 3 20 recaptures of awards, repayments of moneys loaned or expended 3 21 by the precision-use crop utilization financial assistance 3 22 program as provided in section 15E.113, the repossession and 3 23 sale of assets securing a loan made under the precision-use 3 24 crop utilization financial assistance program, moneys 3 25 allocated from the Iowa strategic investment fund created in 3 26 section 15.313, and any other moneys available to and obtained 3 27 or accepted by the department from the federal government or 3 28 private sources for placement in the fund. 3 29 3. Moneys in the fund are appropriated to the department 3 30 exclusively to pay the expenses of the department in 3 31 administering the precision-use crop utilization financial 3 32 assistance program as provided in section 15E.113. The moneys 3 33 shall not be transferred, used, obligated, appropriated, or 3 34 otherwise encumbered except as provided in this section and 3 35 section 15E.113. 4 1 4. In administering the fund, the department may do any of 4 2 the following: 4 3 a. Contract, sue and be sued, and adopt administrative 4 4 rules necessary to carry out the provisions of this section 4 5 and section 15E.113. However, the department shall not in any 4 6 manner directly or indirectly pledge the credit of the state. 4 7 b. Authorize payment from the fund for costs, commissions, 4 8 attorney fees, consultant fees, and other reasonable expenses, 4 9 including expenses related to carrying out duties necessary 4 10 for awarding financial assistance under precision-use crop 4 11 utilization financial assistance program, and for the recovery 4 12 of loan moneys insured or guaranteed or the management of 4 13 property acquired in connection with such loans. 4 14 5. Section 8.33 does not apply to any moneys in the fund. 4 15 Notwithstanding section 12C.7, interest earned on moneys in 4 16 the fund shall be credited to the fund. 4 17 6. The fund is subject to an annual audit by the auditor 4 18 of state. Moneys in the fund, which may be subject to 4 19 warrants written by the director of revenue and finance, shall 4 20 be drawn upon the written requisition of the director of the 4 21 department of economic development or an authorized 4 22 representative of the director. 4 23 DIVISION II 4 24 STATE PURCHASING POLICIES 4 25 Sec. 3. Section 18.6, subsection 12, Code 2003, is amended 4 26 by adding the following new paragraph: 4 27 NEW PARAGRAPH. c. The procurement by state agencies of 4 28 pharmaceutical products manufactured from plants in accordance 4 29 with the requirements of section 18.23. 4 30 Sec. 4. NEW SECTION. 18.23 PLANT-BASED PHARMACEUTICALS 4 31 – PREFERENCES. 4 32 When purchasing pharmaceutical products, the department or 4 33 a state agency authorized by the department to directly 4 34 purchase pharmaceuticals shall give preference to purchasing 4 35 pharmaceutical products manufactured from plants. The 5 1 department shall provide for the implementation of 5 2 requirements necessary in order to administer this section by 5 3 the department or state agency making the purchase, which 5 4 shall include all of the following: 5 5 1. Including the preference requirements in publications 5 6 used to solicit bids for pharmaceutical products. 5 7 2. Describing the preference requirements at bidders' 5 8 conferences in which bids for the sale of pharmaceutical 5 9 products are sought by the department or authorized state 5 10 agency. 5 11 3. Discussing the preference requirements in procurement 5 12 solicitations or invitations to bid for pharmaceutical 5 13 products. 5 14 4. Informing industry trade associations about the 5 15 preference requirements. 5 16 Sec. 5. NEW SECTION. 29A.19A PURCHASE OF BIO-BASED 5 17 PRODUCTS. 5 18 The quartermaster shall provide a preference for bio-based 5 19 products as provided in this section: 5 20 1. Lubricating oils, industrial oils, greases, hydraulic 5 21 fluids, greases, and other industrial lubricants shall be 5 22 purchased in compliance with the preference requirements for 5 23 purchasing bio-based products pursuant to section 18.22. 5 24 2. Pharmaceutical products shall be purchased in 5 25 compliance with the preference requirements for purchasing 5 26 plant-based pharmaceutical products as provided pursuant to 5 27 section 18.23. 5 28 Sec. 6. Section 216B.3, subsection 17, Code 2003, is 5 29 amended to read as follows: 5 30 17. Comply with the requirements for the purchase of 5 31lubricatingbio-based products which are: 5 32 a. Lubricating oils, industrial oils, greases,and5 33 hydraulic fluids, and other industrial lubricants as 5 34 established pursuant to section 18.22. 5 35 b. Pharmaceutical products as established pursuant to 6 1 section 18.23. 6 2 Sec. 7. Section 260C.19B, Code 2003, is amended to read as 6 3 follows: 6 4 260C.19B PURCHASE OF BIO-BASEDHYDRAULIC FLUIDS, GREASES,6 5AND OTHER INDUSTRIAL LUBRICANTSPRODUCTS. 6 6Hydraulic fluids, greases, and other industrial lubricants6 7 The board of directors shall provide a preference for bio- 6 8 based products as provided in this section when products are 6 9 purchased by or used under the direction of the boardof6 10directorsto provide services to a merged area. 6 11 1. Lubricating oils, industrial oils, greases, hydraulic 6 12 fluids, and other industrial lubricants shall be purchased in 6 13 compliance with the preference requirements for purchasing 6 14 bio-basedhydraulic fluids, greases, and other industrial6 15lubricants as providedproducts pursuant to section 18.22. 6 16 2. Pharmaceutical products shall be purchased in 6 17 compliance with the preference requirements for purchasing 6 18 plant-based pharmaceutical products as provided pursuant to 6 19 section 18.23. 6 20 Sec. 8. Section 262.9, subsection 6, Code 2003, is amended 6 21 to read as follows: 6 22 6. Purchase and use recycled printing and writing paper, 6 23 with the exception of specialized paper when no recyclable 6 24 product is available, in accordance with the schedule 6 25 established in section 18.18; establish a wastepaper recycling 6 26 program for all institutions governed by the board in 6 27 accordance with recommendations made by the department of 6 28 natural resources and the requirements of section 18.20; 6 29 shall, in accordance with the requirements of section 18.6, 6 30 and require product content statements and compliance with 6 31 requirements regarding procurement specifications; and shall6 32comply with the requirements for the purchase of lubricating6 33oils and industrial oils as established pursuant to section6 3418.22. 6 35 Sec. 9. Section 262.25B, Code 2003, is amended to read as 7 1 follows: 7 2 262.25B PURCHASE OF BIO-BASEDHYDRAULIC FLUIDS, GREASES,7 3AND OTHER INDUSTRIAL LUBRICANTSPRODUCTS. 7 4 The state board of regents and institutions under the 7 5 control of the boardpurchasing hydraulic fluids, greases, and7 6other industrial lubricantsshallgiveprovide a preference to 7 7 purchasing bio-based products as provided in this section. 7 8 1. Lubricating oils, industrial oils, greases, hydraulic 7 9 fluids, greases, and other industrial lubricantsas provided7 10inshall be purchased in compliance with the preference 7 11 requirements for purchasing bio-based products pursuant to 7 12 section 18.22. 7 13 2. Pharmaceutical products shall be purchased in 7 14 compliance with the preference requirements for purchasing 7 15 plant-based pharmaceutical products as provided pursuant to 7 16 section 18.23. 7 17 Sec. 10. Section 307.21, subsection 4, paragraph b, 7 18 subparagraph (4), Code 2003, is amended to read as follows: 7 19 (4) Comply with the requirements for the purchase of 7 20lubricatingbio-based products which are: 7 21 (a) Lubricating oils, industrial oils, greases,and7 22 hydraulic fluids, and other industrial lubricants as 7 23establishedprovided pursuant to section 18.22. 7 24 (b) Pharmaceutical products as provided pursuant to 7 25 section 18.23. 7 26 Sec. 11. Section 904.312B, Code 2003, is amended to read 7 27 as follows: 7 28 904.312B PURCHASE OF BIO-BASEDHYDRAULIC FLUIDS, GREASES,7 29AND OTHER INDUSTRIAL LUBRICANTSPRODUCTS. 7 30 The departmentwhen purchasingshall provide a preference 7 31 to purchasing bio-based products as provided in this section. 7 32 1. Lubricating oils, industrial oils, greases, hydraulic 7 33 fluids,greases,and other industrial lubricants shallgive7 34preference to purchasing bio-based hydraulic fluids, greases,7 35and other industrial lubricants as provided inbe purchased in 8 1 compliance with the preference requirements for purchasing 8 2 bio-based products as provided pursuant to section 18.22. 8 3 2. Pharmaceutical products shall be purchased in 8 4 compliance with the preference requirements for purchasing 8 5 plant-based pharmaceutical products as provided pursuant to 8 6 section 18.23. 8 7 DIVISION III 8 8 CROP BIO-INTEGRITY 8 9 Sec. 12. Section 199.8, Code 2003, is amended by adding by 8 10 adding the following new subsection: 8 11 NEW SUBSECTION. 4. It is unlawful for a person to do any 8 12 of the following: 8 13 a. Purchase agricultural seed that produces a precision- 8 14 use crop, unless the person is certified pursuant to section 8 15 199A.6. 8 16 b. Grow a precision-use crop unless the person growing the 8 17 crop is certified pursuant to section 199A.6. 8 18 Sec. 13. NEW SECTION. 199A.1 DEFINITIONS. 8 19 As used in this chapter, unless the context otherwise 8 20 requires: 8 21 1. "Conventional crop" means a crop other than a 8 22 precision-use crop. 8 23 2. "Council" means the crop bio-integrity council as 8 24 established pursuant to section 199A.3. 8 25 3. "Crop" means a plant producing grain as defined in 8 26 section 203.1. 8 27 4. "Crop seed" means an agricultural seed as defined in 8 28 section 199.1 that may be used to produce a crop. 8 29 5. "Department" means the department of agriculture and 8 30 land stewardship. 8 31 6. "Genetic modification" means a scientific process that 8 32 involves changing an organism's original genetic code or 8 33 modifying enzymes in living cells to cause a specific 8 34 biochemical reaction, other than by breeding or pollination. 8 35 7. "Precision-use crop" means a crop originating from 9 1 genetically modified crop seeds if the crop is designed to be 9 2 produced for a specific purpose other than for human 9 3 consumption as food or animal consumption as feed as 9 4 designated by the United States food and drug administration, 9 5 or the United States department of agriculture. 9 6 8. "Precision-use crop farmer" means any of the following: 9 7 a. A person who regularly and frequently makes or takes an 9 8 important part in making management decisions substantially 9 9 contributing to or affecting the success of the farm operation 9 10 where precision-use crops are produced. 9 11 b. A person who performs physical work which significantly 9 12 contributes to the production of precision-use crops. 9 13 9. "Secretary" means the secretary of agriculture. 9 14 10. "Transgenic process" means a form of genetic 9 15 modification that alters the genetic structure of an organism 9 16 by inserting a foreign gene into the organism's original 9 17 genetic code. 9 18 Sec. 14. NEW SECTION. 199A.2 OFFICE OF CROP BIO- 9 19 INTEGRITY. 9 20 The department may establish an office of crop bio- 9 21 integrity which shall be staffed by personnel as designated by 9 22 the secretary. If an office is established, the secretary 9 23 shall appoint a coordinator to head the office. The 9 24 coordinator may also serve another position in the department. 9 25 If created, the office shall be the chief administrative unit 9 26 of the department responsible for the enforcement of this 9 27 chapter. 9 28 Sec. 15. NEW SECTION. 199A.3 CROP BIO-INTEGRITY COUNCIL 9 29 – ESTABLISHMENT. 9 30 A crop bio-integrity council is established within the 9 31 department. 9 32 1. The council shall be composed of the following persons: 9 33 a. The dean of the college of agriculture, Iowa state 9 34 university of science and technology, or the dean's designee 9 35 who shall be a specialist in crop science knowledgeable about 10 1 microbiology. 10 2 b. The dean of college of pharmacy, university of Iowa, or 10 3 the dean's designee who possesses a doctoral degree recognized 10 4 by the American council of pharmaceutical education from a 10 5 college of pharmacy approved by the board of pharmacy 10 6 examiners. 10 7 c. The state entomologist appointed pursuant to section 10 8 177A.3. 10 9 d. The administrator of the department's grain warehouse 10 10 bureau. 10 11 e. Eleven persons appointed by the secretary, who shall 10 12 include all of the following: 10 13 (1) Four persons who represent a scientific field of study 10 14 which relates to the following: 10 15 (a) Plant genetics. The person shall have a sound 10 16 scientific background in transgenic processes. 10 17 (b) Plant toxicology. 10 18 (c) Statistics. 10 19 (d) Pollination and conventional plant breeding techniques 10 20 and breeding populations. 10 21 (2) Seven farmers who are actively engaged in producing 10 22 crops. Five farmers shall be producers of genetically 10 23 modified crops and two farmers shall be producers of 10 24 conventional crops. 10 25 2. a. The secretary shall accept nominations from 10 26 organizations representing persons who serve on the council, 10 27 as determined by the secretary making appointments under this 10 28 section. The organizations shall at least include the Iowa 10 29 corn growers association, the Iowa soybean association, the 10 30 Iowa farm bureau, and the agribusiness association of Iowa. 10 31 The secretary shall strive to include persons responsible for 10 32 labeling packages of agricultural seeds as provided in chapter 10 33 199. 10 34 b. The appointed members of the council shall serve 10 35 staggered terms of four years, except that the initial council 11 1 members shall serve unequal terms as designated by the 11 2 secretary. A person appointed to fill a vacancy for an 11 3 appointed member shall serve only for the unexpired portion of 11 4 the term. An appointed member is eligible for reappointment 11 5 for three successive terms. 11 6 c. Appointments of members are subject to the requirements 11 7 of sections 69.16 and 69.16A. In addition, the appointments 11 8 shall be geographically balanced, unless the secretary 11 9 determines that this requirement is not feasible. 11 10 d. The secretary may remove an appointed member, if the 11 11 removal is based on the member's misfeasance, malfeasance, or 11 12 willful neglect of duty or other just cause, after notice and 11 13 hearing, unless the notice and hearing is expressly waived in 11 14 writing. 11 15 4. The council shall meet and elect a chairperson from 11 16 among its members for a term of one year. The council shall 11 17 meet on a regular basis and at the call of the chairperson or 11 18 upon the written request to the chairperson of three or more 11 19 members. The department shall provide administrative support 11 20 to the council. The coordinator of the crop bio-integrity 11 21 office, if appointed, shall serve as secretary to the council. 11 22 5. A majority of the council constitutes a quorum and an 11 23 affirmative vote of the majority of members is necessary for 11 24 substantive action taken by the council. The majority shall 11 25 not include any member who has a conflict of interest and a 11 26 statement by a member of a conflict of interest shall be 11 27 conclusive for this purpose. A vacancy in the membership does 11 28 not impair the right of a quorum to exercise all rights and 11 29 perform all duties of the council. 11 30 Sec. 16. NEW SECTION. 199A.4 CROP BIO-INTEGRITY COUNCIL 11 31 – DUTIES. 11 32 The crop bio-integrity council shall assist the department 11 33 in implementing and administering the provisions of this 11 34 chapter. The council shall do all of the following: 11 35 1. a. Develop and propose a precision-use crop 12 1 certification program as provided in section 199A.6 as a 12 2 recommendation to the department. The department shall 12 3 consider the proposed program and respond to the council in 12 4 writing if the department fails to accept any significant part 12 5 of the proposed program. The department shall adopt rules to 12 6 implement or administer the program only after consultation 12 7 with the council. The council may provide a short statement 12 8 providing its opinion regarding a proposed rule in the 12 9 preamble to the notice of intended action published in the 12 10 Iowa administrative bulletin pursuant to section 17A.4. 12 11 b. Receive and evaluate applications from persons seeking 12 12 to be designated as an instructional service as provided in 12 13 section 199A.5. The council shall periodically review the 12 14 performance of the instructional service and make 12 15 recommendations to the department as required to improve the 12 16 precision-use crop certification program. 12 17 2. Develop and propose sound management practices for 12 18 precision-use crop production as provided in section 199A.7 as 12 19 a recommendation to the department. The department shall 12 20 consider the proposed sound management practices and respond 12 21 to the council in writing if the department fails to accept 12 22 any significant part of the proposed management practices. 12 23 The department shall adopt rules to implement or administer 12 24 sound management practices only after consultation with the 12 25 council. The council may provide a short statement providing 12 26 its opinion regarding a proposed rule in the preamble to the 12 27 notice of intended action published in the Iowa administrative 12 28 bulletin pursuant to section 17A.4. 12 29 3. Develop and propose a schedule for civil penalties as 12 30 provided in section 199A.12 as a recommendation to the 12 31 department. The council may propose a schedule of penalties 12 32 for minor and serious violations. The department shall 12 33 consider the proposed schedule and respond to the council in 12 34 writing if the department fails to accept any significant part 12 35 of the proposed schedule. The department shall adopt rules to 13 1 establish a schedule of civil penalties only after 13 2 consultation with the council. The council may provide a 13 3 short statement providing its opinion regarding a proposed 13 4 rule in the preamble to the notice of intended action 13 5 published in the Iowa administrative bulletin pursuant to 13 6 section 17A.4. 13 7 4. Review and evaluate applications submitted to the 13 8 department of economic development for financial assistance 13 9 under the precision-use crop utilization financial assistance 13 10 program as provided in section 15E.113 13 11 5. Monitor developments in areas related to genetic 13 12 modifications in crops and especially transgenic processes. 13 13 The council shall inform and advise the department, other 13 14 state agencies, and the committees of the general assembly 13 15 regarding scientific research and proposed or adopted 13 16 regulatory systems. The council shall cooperate with 13 17 administrative units of the United States government, 13 18 business, and educational institutions in carrying out this 13 19 subsection. 13 20 Sec. 17. NEW SECTION. 199A.5 PRECISION-USE CROP 13 21 CERTIFICATION PROGRAM – DESIGNATION OF AN INSTRUCTIONAL 13 22 SERVICE. 13 23 The department may designate one or more persons as 13 24 instructional services which are authorized to administer the 13 25 precision-use crop certification program as provided in 13 26 section 199A.6. The person may be a public agency or a 13 27 private organization. A person shall not be designated as an 13 28 instructional service unless the person meets qualifications 13 29 established by the department after consultation with the 13 30 council as provided in section 199A.4. The person must at 13 31 least demonstrate that the person has access to facilities 13 32 necessary in order to provide for the instruction and is 13 33 managed by individuals who have knowledge of crop production 13 34 and transgenic processes. The department may immediately 13 35 cancel a contract with a person who fails to comply with the 14 1 requirements of the department. 14 2 Sec. 18. NEW SECTION. 199A.6 PRECISION-USE CROP 14 3 CERTIFICATION PROGRAM – REQUIREMENTS. 14 4 1. The department shall establish and administer a 14 5 precision-use crop certification program as provided in this 14 6 section and section 199A.4. A person shall not act as a 14 7 precision-use crop farmer, unless the person is certified 14 8 pursuant to the program as administered by the department or 14 9 an instructional service as provided in section 199A.5. A 14 10 certification shall expire each two years as provided by the 14 11 department. 14 12 2. The person shall be certified after completing an 14 13 educational program and demonstrating competency in a manner 14 14 determined by the department in consultation with the council. 14 15 Continuing educational courses shall be required as determined 14 16 by the department in consultation with the council. 14 17 3. The educational program must at least provide 14 18 instruction or an examination regarding sound management 14 19 practices associated with producing precision-use crops, 14 20 including sound management practices as provided in section 14 21 199A.7. The department may adopt rules providing exceptions 14 22 from these requirements when the requirements are 14 23 impracticable or do not achieve a substantial benefit when 14 24 balanced against the cost. 14 25 4. The department may charge a fee for certifying a person 14 26 under this section. The fee for certification shall be based 14 27 on the costs of administering and enforcing the program and 14 28 paying the expenses of the department relating to 14 29 certification. 14 30 Sec. 19. NEW SECTION. 199A.7 PRECISION-USE CROP 14 31 PRODUCTION – SOUND MANAGEMENT PRACTICES. 14 32 1. The department shall establish and enforce sound 14 33 management practices for precision-use crop production. The 14 34 practices shall meet applicable standards of the federal 14 35 government which may include those promulgated by the United 15 1 States food and drug administration and the United States 15 2 department of agriculture. The sound management practices 15 3 shall at least provide methods to reduce risks associated with 15 4 all of the following: 15 5 a. Commingling crop seed that may be used to produce a 15 6 precision-use crop with crop seed that may produce a 15 7 conventional crop. 15 8 b. Commingling grain produced from a precision-use crop 15 9 with grain produced from a conventional crop. 15 10 c. Contamination caused by the unintended transfer and 15 11 incorporation of genetic material between a precision-use crop 15 12 and a conventional crop during production. 15 13 2. A person shall not do any of the following: 15 14 a. Sell crop seed that may be used to produce a 15 15 conventional crop if the crop seed is commingled with crop 15 16 seed that may be used to produce a precision-use crop. 15 17 b. Sell crop grain that was produced from a conventional 15 18 crop if the crop grain is commingled with the crop grain 15 19 produced from a precision-use crop. 15 20 Sec. 20. NEW SECTION. 199A.8 LIABILITY. 15 21 1. A person who sells crop seed to a purchaser is liable 15 22 for damages as provided in this subsection. 15 23 a. The damages must be the result of any of the following: 15 24 (1) Commingling of crop seed that may be used to produce a 15 25 precision-use crop with crop seed that may produce a 15 26 conventional crop. 15 27 (2) Commingling grain produced from a precision-use crop 15 28 with grain produced from a conventional crop. 15 29 (3) Contamination caused by the transfer and incorporation 15 30 of genetic material between a precision-use crop and a 15 31 conventional crop during production. 15 32 b. The person must have failed to provide notice to the 15 33 purchaser of management practices required to provide methods 15 34 to reduce risks associated with commingling or contamination 15 35 which are in addition to sound management practices as 16 1 provided in section 199A.7. The notification must be in 16 2 writing and provided to the purchaser at the time of sale. 16 3 c. The purchaser must be certified pursuant to section 16 4 199A.6. 16 5 d. The precision-use crop must have produced in compliance 16 6 with sound management practices to reduce risks associated 16 7 with commingling or contamination as provided in section 16 8 199A.7. 16 9 2. A person who contracts with a precision-use crop farmer 16 10 to produce a precision-use crop is liable for damages as 16 11 provided in this subsection. 16 12 a. The damages must be the result of any of the following: 16 13 (1) Commingling of crop seed that may be used to produce a 16 14 precision-use crop with crop seed that may produce a 16 15 conventional crop. 16 16 (2) Commingling grain produced from a precision-use crop 16 17 with grain produced from a conventional crop. 16 18 (3) Contamination caused by the transfer and incorporation 16 19 of genetic material between a precision-use crop and a 16 20 conventional crop during production. 16 21 b. The person must have failed to provide notice to the 16 22 precision-use crop farmer of management practices required to 16 23 provide methods to reduce risks associated with commingling or 16 24 contamination which are in addition to sound management 16 25 practices as provided in section 199A.7. The notification 16 26 must be in writing and provided to the precision-use farmer at 16 27 the time that the contract to produce the precision-use crop 16 28 is executed. 16 29 c. The precision-use farmer must be certified pursuant to 16 30 section 199A.6. 16 31 d. The precision-use crop must have produced in compliance 16 32 with sound management practices to reduce risks associated 16 33 with commingling or contamination as provided in section 16 34 199A.7. 16 35 Sec. 21. NEW SECTION. 199A.9 PRECISION-USE CROP 17 1 PRODUCTION – GENERAL ENFORCEMENT INVESTIGATIONS AND 17 2 COMPLIANCE AUDITS. 17 3 1. The department and the attorney general shall enforce 17 4 this chapter. The attorney general may commence legal 17 5 proceedings in district court at the request of the department 17 6 or upon the attorney general's own initiative in order to 17 7 enforce this chapter, including rules adopted and orders 17 8 issued by the department pursuant to this chapter. This 17 9 chapter does not require the attorney general or the 17 10 department to institute a proceeding for a minor violation if 17 11 the department or attorney general concludes that the public 17 12 interest will be best served by a suitable notice of warning 17 13 in writing. 17 14 2. The department may conduct an investigation to 17 15 determine if a person is complying with the requirements of 17 16 this chapter. 17 17 3. The department shall conduct compliance audits of 17 18 precision-use crop farmers to ensure adoption of and 17 19 compliance with certification requirements of section 199A.7 17 20 and sound management practices of section 199A.8. 17 21 4. The department may enter upon any public or private 17 22 premises during regular business hours in a manner consistent 17 23 with the laws of this state and the United States, including 17 24 Article I, section 8, of the Constitution of the State of 17 25 Iowa, or the fourth amendment to the Constitution of the 17 26 United States for purposes of carrying out an investigation. 17 27 Sec. 22. NEW SECTION. 199A.10 DISCIPLINARY ACTION. 17 28 1. The department may take disciplinary action concerning 17 29 a person who is required to be certified pursuant to section 17 30 199A.6 by doing any of the following: 17 31 a. Issuing a letter of warning or reprimand. 17 32 b. Suspending or revoking a certification or denying the 17 33 renewal of certification. 17 34 2. The disciplinary action must be based upon evidence 17 35 satisfactory to the department that the person has used 18 1 fraudulent or deceptive practices in violation of this chapter 18 2 or has willfully disregarded the requirements of this chapter. 18 3 Sec. 23. NEW SECTION. 199A.11 STOP SALE ORDER. 18 4 1. If a person sells commingled crop seed or commingled 18 5 crop grain in violation of section 199A.7, the department may 18 6 issue a written order to stop the sale of the crop seed or 18 7 crop grain. The person named in the order shall not sell the 18 8 crop seed or crop grain until the department determines that 18 9 section 199A.7 has not been violated. 18 10 2. The department may require that the crop seed or crop 18 11 grain be held at a designated place until released by the 18 12 department. 18 13 3. The department or the attorney general may enforce the 18 14 order by petitioning the district court in the county where 18 15 the crop seed or crop grain is being sold. 18 16 4. The department shall release the crop seed or crop 18 17 grain when the department issues a release order upon 18 18 satisfaction that legal requirements compelling the issuance 18 19 of the stop sale order are no longer applicable. 18 20 Sec. 24. NEW SECTION. 199A.12 PENALTIES. 18 21 A person who violates this chapter is subject to a civil 18 22 penalty of not more than five hundred dollars. Civil 18 23 penalties shall be assessed by the department pursuant to a 18 24 contested case proceeding or in district court in an action 18 25 initiated by the attorney general. Each day that the offense 18 26 continues constitutes a separate offense. However, a person 18 27 shall not be subject to a civil penalty of more than five 18 28 thousand dollars for a continuing offense. Civil penalties 18 29 collected under this section shall be deposited in the general 18 30 fund of the state. 18 31 EXPLANATION 18 32 This bill provides for the development of crop 18 33 biotechnology. The bill amends or creates a number of 18 34 provisions relating to financing businesses associated with 18 35 crop biotechnology and specifically precision-use crops. It 19 1 requires the purchase of bio-based products by state 19 2 government. It also provides for the regulation of precision- 19 3 use crop production. 19 4 The bill defines a precision-use crop as a grain crop 19 5 originating from genetically modified seed, if the crop is 19 6 designed to be produced for a specific purpose other than for 19 7 human consumption as food or animal consumption as feed as 19 8 designated by the federal government. 19 9 DIVISION I – FINANCING FOR ECONOMIC GROWTH. The bill 19 10 creates two new Code sections providing programs to assist 19 11 businesses involved in processing precision-use crops, and 19 12 specifically grains from such crops. The bill also 19 13 establishes a fund to support the program but does not provide 19 14 for a specific appropriation. The program is administered by 19 15 the department of economic development and the program and 19 16 fund are based on the value-added agricultural products and 19 17 processes financial assistance program (VAPPFAP) and its 19 18 related fund created in Code sections 15E.111 and 15E.112. 19 19 The purpose of the program is to assist businesses involved 19 20 in the production of goods derived from a precision-use crop 19 21 if the good is not commonly produced from a precision-use 19 22 crop, or uses a process to produce a good derived from a 19 23 precision-use crop if the process is not commonly used to 19 24 produce the good. The bill provides for procedures required 19 25 to consider and approve applications for assistance which 19 26 include a review and evaluation of applications by a crop bio- 19 27 integrity council as established in the bill. The department 19 28 provides a list of criteria that the department must consider 19 29 when considering an application which relates to the viability 19 30 of the business to process precision-use crops, its potential 19 31 to increase local revenue, the quality of jobs to be created, 19 32 and its environmental impact. 19 33 DIVISION II – STATE PURCHASING POLICIES. The Code of Iowa 19 34 requires state agencies to purchase various bio-based 19 35 products, including ethanol, degradable loose foam packing 20 1 material manufactured from grain starches, and industrial 20 2 lubricants manufactured from soybeans. The bill requires 20 3 state agencies to provide a preference when purchasing 20 4 pharmaceutical products to purchase those products which are 20 5 manufactured from plants. It provides for a number of 20 6 requirements for bidding, including by notifying bidders of 20 7 the preference requirement. It amends provisions which 20 8 currently provide a preference when purchasing industrial 20 9 lubricants by standardizing the Code language. 20 10 The state agencies affected include the department of 20 11 general services, the Iowa national guard, the department for 20 12 the blind, community colleges, the state board of regents, the 20 13 state department of transportation, and the department of 20 14 corrections. 20 15 DIVISION III – CROP BIO-INTEGRITY. The bill amends Iowa's 20 16 seed law in Code chapter 199 and creates a new Code chapter 20 17 199A which regulates the production of precision-use crops 20 18 under the authority of the department of agriculture and land 20 19 stewardship. It amends Code section 199.8 which prohibits a 20 20 number of practices by persons involved in the business of 20 21 selling agricultural seeds. The bill prohibits a person from 20 22 purchasing or growing agricultural seed that produces a 20 23 precision-use crop, unless the person is certified as required 20 24 under the bill. A violation of this Code chapter is a simple 20 25 misdemeanor. A simple misdemeanor is punishable by 20 26 confinement for no more than 30 days or a fine of at least $50 20 27 but not more than $500 or by both. 20 28 The bill creates a new Code chapter 199A which regulates 20 29 the production of precision-use crops. It provides that the 20 30 department may establish an office of bio-integrity, and 20 31 authorizes the secretary of agriculture to appoint a 20 32 coordinator to head the office. The office, if created, is 20 33 responsible for the enforcement of the chapter. It also 20 34 establishes a crop bio-integrity council within the 20 35 department. The council is composed of persons involved in 21 1 education, science, and production. The bill provides for 21 2 procedures related to appointment, its internal organization, 21 3 and voting requirements. 21 4 The council is responsible for assisting the department in 21 5 implementing and administering the provisions of the new Code 21 6 chapter. As part of its specific duties, the council must 21 7 develop a precision-use crop certification program, review 21 8 applications from persons seeking to be designated as an 21 9 instructional service to administer the program, develop and 21 10 propose sound management practices for precision-use crop 21 11 production, and develop and propose a schedule for civil 21 12 penalties for persons in violation of the Code chapter. The 21 13 council must also review and evaluate applications submitted 21 14 to the department of economic development for financial 21 15 assistance under the precision-use crop utilization financial 21 16 assistance program as provided in the bill. Finally, it must 21 17 monitor developments in areas to genetic modifications in 21 18 crops and especially transgenic processes. 21 19 The bill requires the department to establish and 21 20 administer a precision-use crop certification program. 21 21 According to the bill, a person cannot act as a precision-use 21 22 crop farmer, unless the person is certified. The program may 21 23 be administered by an instructional service which contracts 21 24 with the department. A certification shall expire every two 21 25 years. The program requires farmers to attend instructional 21 26 courses. The educational program must at least provide 21 27 instruction or an examination regarding sound management 21 28 practices associated with producing precision-use crops, 21 29 including sound management practices. The department may 21 30 adopt rules providing exceptions from the requirements. 21 31 The bill requires the department to establish and enforce 21 32 sound management practices for precision-use crop production. 21 33 The practices shall meet applicable standards of the federal 21 34 government which may include those promulgated by the United 21 35 States government. They must relate to methods to reduce 22 1 risks associated with commingling crop seed that may be used 22 2 to produce a precision-use crop with crop seed that may 22 3 produce a conventional crop; commingling grain produced from a 22 4 precision-use crop with grain produced from a conventional 22 5 crop; and contamination caused by the unintended transfer and 22 6 incorporation of genetic material between a precision-use crop 22 7 and a conventional crop during production. 22 8 The bill provides that a person who sells crop seed to a 22 9 purchaser or a person who contracts to produce a precision-use 22 10 crop with a farmer is liable for damages caused by commingling 22 11 or contamination. According to the bill, the person must have 22 12 failed to provide notice of additional management practices 22 13 required to reduce risks associated with commingling or 22 14 contamination which are in addition to sound management 22 15 practices as provided in the bill. The purchaser or farmer 22 16 must be certified, and the crop must have been produced in 22 17 compliance with sound management practices as provided in the 22 18 bill. 22 19 The bill prohibits a person from selling crop seed that may 22 20 be used to produce a conventional crop if the crop seed is 22 21 commingled with crop seed that may be used to produce a 22 22 precision-use crop. It also prohibits a person from selling a 22 23 crop grain that was produced from a conventional crop if the 22 24 crop grain is commingled with crop grain produced from a 22 25 precision-use crop. 22 26 The bill authorizes the department and the attorney general 22 27 to enforce the provisions of the Code chapter. It also 22 28 authorizes the department to conduct an investigation to 22 29 determine if a person is complying with the requirements of 22 30 the chapter. 22 31 The bill authorizes the department to take disciplinary 22 32 action concerning a person who is required to be certified 22 33 based upon evidence that the person has used fraudulent or 22 34 deceptive practices or has willfully disregarded the 22 35 requirements of the chapter. 23 1 The bill authorizes the department to issue stop sale 23 2 orders to persons who are violating a provision in the new 23 3 Code chapter. According to the bill, the department may 23 4 require that crop seed or crop grain be held at a designated 23 5 place until released by the department. The department or 23 6 attorney general may enforce the order by petitioning the 23 7 district court. 23 8 The bill provides for penalties. A person who violates the 23 9 provisions of the new chapter is subject to a civil penalty of 23 10 not more than $500. Each day that the offense continues 23 11 constitutes a separate offense. However, a person cannot be 23 12 subject to a civil penalty of more than $5,000 for a 23 13 continuing offense. 23 14 LSB 3119HC 80 23 15 da/pj/5.1
Text: HSB00288 Text: HSB00290 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Mar 13 02:30:32 CST 2003
URL: /DOCS/GA/80GA/Legislation/HSB/00200/HSB00289/030312.html
jhf