1998 Summary of Legislation Published by the Iowa General Assembly -- Legislative Service Bureau

AGRICULTURE

AGRICULTURE LEGISLATION

SENATE FILE 2119 - Corn Promotion Board and Fund -- State Assessment on Corn (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 185C, which establishes the Iowa Corn Promotion Board and provides for a state excise tax (referred to as a "state assessment") on each bushel of corn marketed in this state which is paid by producers to support the board's efforts to increase markets for corn and corn products. Upon request of the board, the Secretary of Agriculture must call a special referendum for producers to vote on whether to authorize an increase in the state assessment. This Act allows producers to increase the assessment from one-half cent to one cent per bushel of corn. The state assessment is collected by the board and deposited into a special fund known as the Corn Promotion Fund. This Act also allows the board to accept rents, royalties and license fees for deposit into the fund.

SENATE FILE 2174 - Agricultural Code Provisions Update (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act makes a number of statutory changes relating to agriculture and the Department of Agriculture and Land Stewardship.

The Act strikes provisions requiring the department to establish an agricultural commodity informational database and publish an annual report involving inspection fees for commercial feed. The Act requires that standards for foods adopted by the department must comply with standards adopted by federal agencies including, but not limited to, the U.S. Department of Agriculture.

The Act repeals Code sections and chapters that do the following:

• Regulate cold storage plants by providing for licensure, examination of plants, reporting, and penalties.
• Authorize the Iowa State Dairy Association to hold an exposition of 4-H dairy calves and contests.
• Memorialize the Interstate Compact on Agricultural Grain Marketing.
• Regulate frozen desserts by regulating fruit flavoring, providing labeling requirements, prohibiting false advertising, requiring the posting of signs, and providing for dry powder mixes.
• Allow the department to hold a state farmers institute for the discussion of practical and scientific topics relating to the various branches of agriculture.
• Require persons answering departmental inquiries regarding agricultural statistics to summarize and footnote their responses.
• Authorize the department to establish standards for apples and allow for departmental inspections and certification of apples.
• Provide that regulations and orders adopted by the department in regulating bee colonies have the full force and effect of law.
• Require that each bee colony moved into Iowa from another state by a nonresident be assessed a $1 entry fee.
• Provide for the sealing of bottles for milk or cream, the authority of a city to appoint a sealer of weights and measures, and the duty of a city sealer to provide for the safekeeping of city standards.
• Establish the State Interagency Resource Council, charging it to receive and distribute information regarding land use statistics by counties.

SENATE FILE 2324 - Soil and Water Conservation Practices -- Financial Incentives -- Cost-Share Moneys (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends a provision in Code Chapter 161A that provides for the administration of soil and water conservation practices by district commissioners. Code Section 161A.73 provides that the commissioners of a district may establish voluntary financial incentive programs that provide for the allocation of cost-share moneys to encourage summer construction of permanent soil and water conservation practices. The Code section provides that the practices must be constructed on or after June 1, but not later than August 15. This Act extends the deadline to September 15.

SENATE FILE 2332 - Organic Agricultural Products (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act establishes a new Code chapter which imposes requirements for the production, handling, processing, and sale of organic agricultural products, including commodities and processed products. The Act replaces provisions in Code Chapter 190B, which currently governs the sale of organic food.

The requirements under the Act are administered and enforced by the Department of Agriculture and Land Stewardship under the direction of an Organic Standards Board composed of members appointed by the Governor and Secretary of Agriculture. The requirements provide standards governing the production, handling, processing, and selling of agricultural products advertised as organic. The board has a number of powers, including approving applications for certification and establishing procedures governing appeals of decisions made by the department or board. The department is responsible for adopting a number of rules to administer the Act, including rules for standards, certification, inspections, testing, the assessment and collection of fees, the maintenance of records, disciplinary action, and the issuance of stop sale orders. The board must establish a schedule of fees for persons required to be certified as producers, handlers and processors. Upon approval by the board, the department may authorize a regional organic association to assist the board in certification.

The Act contains specific provisions governing standards. The agricultural product must be produced and handled without the use of synthetic chemicals, must not be produced on land to which prohibited substances have been recently applied, and must be produced and handled in compliance with an organic plan agreed to by the producer, handler and certifying agent. The Act contains specific provisions governing the certification process, requirements for labeling including the establishment of a seal, and recordkeeping.

The provisions of the Act are enforceable by the department and the Attorney General. The Act authorizes the department to conduct investigations and inspections, including examining agricultural products, in order to determine compliance with the requirements of this Act. The Act provides that the board may take disciplinary action against persons violating the provisions of the Act, including suspending or terminating certification. The Act authorizes the department to issue stop sale orders. It authorizes the Attorney General, the department or any other person to seek an injunction in district court in order to prevent false or misleading advertising. A person who violates the Act is subject to a civil penalty of not more than $5,000.

The Act takes effect May 20, 1998.

SENATE FILE 2340 - Iowa Egg Council -- Assessment on Eggs Sold (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends a number of provisions in Code Chapter 196A, which provides for the establishment and administration of the Iowa Egg Council and the assessment of an excise tax on eggs used to support the council's activities. The Act eliminates requirements that the council perform a number of specific functions, and requires that the council promote the increased utilization of eggs and egg products.

The Act amends provisions establishing the council and a state excise tax (referred to as an assessment) deducted from the sales price paid to producers. The Act changes requirements necessary in order for producers to call a referendum to abolish the council and terminate the assessment. The Act eliminates a provision that requires the assessment to expire every five years. The Act amends procedures for conducting a referendum, allowing a referendum to be conducted by mail, electronic means or a general meeting of eligible voters. The Act provides that in order to be eligible to vote in the referendum, a producer must have paid an assessment in the year of the referendum. The Act also eliminates the ceiling on the assessment amount that may be established by the council.

The Act provides that a member of the council must be a resident of the state. The Act eliminates requirements relating to the composition of a committee that nominates candidates to stand for election to the council. The Act also eliminates a requirement that notice of an election must be published in a newspaper. The Act permits the council to receive gifts, rents, royalties, license fees, or other moneys for deposit in the Iowa Egg Fund, which is used to support council activities.

The Act eliminates a provision requiring the council to annually prepare and submit a report summarizing council activities to the Auditor of State and the Secretary of Agriculture showing all council income and expenses.

SENATE FILE 2371 - Infectious and Contagious Diseases Among Livestock (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends several provisions regulating infectious diseases among livestock, including Code Chapter 163, which regulates contagious diseases generally, and Code Chapter 166D, which regulates pseudorabies affecting swine under the authority of the Department of Agriculture and Land Stewardship.

The Act amends Code Chapter 163 by providing for the collection and analysis of blood from livestock at slaughtering establishments. The collection may be performed by the department, a slaughtering establishment under an agreement with the department, or a person authorized by the department.

The Act amends Code Chapter 166D by providing all of the following:

• Requires an owner transferring possession of feeder pigs to execute a written agreement with the person taking possession providing that the feeder pigs shall not be commingled with other swine for 30 days.
• Amends a provision placing special conditions upon an area when the department determines that a majority of herds within the area have been tested and a majority of herds reveal a noninfection rate of 90 percent or greater. The Act reduces this percentage to 80 percent.
• Amends a provision that requires herds to be periodically recertified by the department. The provision allows a herd to retain certification when at least 25 percent of the herd's breeding swine react negatively to a test every 80 to 105 days or at least 10 percent of the herd's breeding swine react negatively to a test each month. This Act eliminates the 25 percent requirement. It requires that the 10 percent rule does not apply if less than five head of swine react positively to a test.
• Provides that herd cleanup plans may include the segregation of progeny with restricted movement, the test and removal of infected swine from a herd, or depopulation. The Act provides that in the case of progeny segregation, the herd cleanup plan must include the location of the premises that will receive the progeny. The premises must be quarantined. However, breeding swine in an infected herd must be tested and the infected breeding swine must be removed from the infected herd in accordance with procedures and dates established by the department.
• Changes a requirement providing that a feeder pig cooperator herd plan may be adopted if there have been no clinical signs of pseudorabies during the past six months. The Act changes the requirement to provide that no clinical signs of pseudorabies must have been detected for 30 days and eliminates a requirement that a feeder pig cooperator herd may be moved within Iowa without individual tests as feeder pigs of unknown origin.
• Eliminates a requirement that provides that moved or relocated swine must be accompanied by a certificate of inspection or an official health certificate or veterinarian certificate.
• Amends a provision that applies to feeder swine moved from a location outside of this state to a location within this state. The Act provides that the feeder swine are not required to be vaccinated if the feeder swine originate from a qualified negative herd and are introduced to a qualified negative herd or the feeder swine originate from a qualified differentiable negative herd and are introduced to a qualified differentiable negative herd.
• Amends a provision permitting swine from known infected herds to be moved through a concentration point if other species of livestock are not to be held at the concentration point. This Act amends that restriction by providing that the other species must be kept separate and apart from the swine.

SENATE FILE 2404 - Cooperatives (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 501, which provides for cooperative corporations that hold agricultural land in this state. This type of entity is a hybrid between a cooperative association organized under Code Chapter 499 and a corporation organized under Code Chapter 490.

The Act changes a number of terms used in the chapter. The Act changes "cooperative corporations" to "cooperatives." It changes a number of other terms to more closely resemble terms describing the business activities of cooperative associations rather than corporations. For example, a cooperative must be organized as an association rather than a corporation. The Act changes "articles of incorporation" to "articles of association"; "shareholders" to "interest holders" or "members" in the cooperatives; and "voting stock" to "voting interest." An "interest holder" is defined to mean a person who holds a voting or nonvoting interest in a cooperative. A "member" is a person who holds a voting interest in the cooperative. References to "dividends" are changed to "distributions."

The Act also provides that a general partner authorized to hold an interest in a cooperative must include all natural persons.

The Act amends Code Section 501.106, which provides for maintaining a registered office or registered agent in this state for purpose of service. The Act adds provisions taken from Code Sections 490.503 and 490.504, which provide procedures for the resignation of a registered agent and delivery of service when a registered agent is not available. The Act changes the term "corporation" to "cooperative."

The Act incorporates a number of provisions that were included by reference in the chapter. These sections refer to provisions in both Code Chapter 490, governing corporations, and Code Chapter 499, governing cooperative associations. The Act redrafts these provisions expressly as part of Code Chapter 501 and changes references to "corporation" or "association" to "cooperative" and corrects internal references.

Code Section 501.102 provides that a cooperative has the same powers as Code Sections 490.302 and 490.303 provide a corporation. Those powers include the power to sue and be sued, have a seal, make and amend bylaws, acquire property, sell or dispose of property, enter into purchase security arrangements, make contracts, incur liabilities, issue notes and bonds, lend money, invest money, become an investor in another enterprise, conduct business, elect directors, appoint officers and hire employees, pay pensions, and make donations. This Act repeals Code Section 501.102 and provides those same powers expressly to cooperatives.

Code Section 501.107 provides that Code Sections 490.1601 through 490.1622 apply to cooperatives organized under Code Chapter 501. The sections provide for keeping corporate records, the right of shareholders to inspect those records, the authority of courts to order inspections, the preparation of financial statements for shareholders, and the submission of reports to the Secretary of State. This Act repeals Code Section 501.107 and rewrites those provisions into new Code sections in Code Chapter 501.

Code Section 501.408 provides that a cooperative may indemnify an officer, employee or agent who is a party to a legal proceeding in the same way that a corporation may indemnify a director in the same circumstances. The section provides for definitions, grants authority to a corporation to indemnify a director under circumstances, requires indemnification in certain circumstances, allows for advancing a director moneys for legal expenses, allows for indemnification pursuant to court order, provides procedures for indemnification, provides for indemnification of officers, employees and agents, and allows a corporation to purchase insurance. The Act repeals Code Section 501.408 and expressly drafts those provisions into Code Chapter 501.

Code Section 501.602 provides for mergers and consolidations among cooperatives organized under Code Chapter 501. The section provides that Code Sections 499.61 through 499.70 apply to the mergers or consolidations. Those sections provide for definitions, allow for merger and consolidation, require a vote of the membership, provide for objections by members and the payment of fair market value to dissenters, provide for articles of merger or consolidation and the issuance of a certificate of merger or consolidation, and authorize abandonment prior to filing the articles of merger or consolidation. This Act repeals Code Section 501.602 and, with some exceptions, rewrites the same provisions in Code Chapter 501.

Code Section 501.604 provides for the dissolution of a cooperative based on the same provisions that apply to corporations under Code Sections 490.1401 through 490.1440. Those sections provide for dissolution by incorporators, initial directors who have not issued stock, or a board of directors operating a functioning corporation; the filing of articles of dissolution, a revocation of a dissolution, and the effect of the dissolution; procedures for disposing of known and unknown claims against the corporation; grounds for administrative dissolution, procedures for and the effect of an administrative dissolution, and reinstatement, including appeal from a denial of reinstatement; grounds for judicial dissolution, procedures for judicial dissolution, and procedures for appointing a receiver or custodian; entering a decree of dissolution; and depositing creditor assets with the Treasurer of State. This Act repeals Code Section 501.604 and rewrites those provisions expressly for cooperatives as part of Code Chapter 501 with limited exceptions. The Act does not include a provision requiring information in the articles to be separately provided for each voting group entitled to vote separately on the plan to dissolve.

The Act takes effect April 23, 1998.

HOUSE FILE 2136 - Compliance With Requirements for Agricultural Drainage Wells (full text of act)

BY MERTZ. This Act extends the deadline by which an owner of land that contains an agricultural drainage well must comply with requirements for preventing surface water from draining into the agricultural drainage well. The requirements include removing a surface water intake if it empties into the well, constructing and maintaining sidewalls surrounding the well's cistern, ensuring that the well and related drainage system are adequately ventilated, and installing a locked cover over the well or its cistern. This Act extends the deadline from December 31, 1998, to December 31, 2001.

HOUSE FILE 2317 - Drainage District Improvements in Protected Wetlands (full text of act)

BY MERTZ. This Act amends Code Chapter 456B, which provides for restrictions on the use of a protected wetland. Code Section 456B.13 prohibits a person from draining a protected wetland without first obtaining a permit from the Department of Natural Resources. The department may issue a permit if the protected wetland is replaced with another wetland or the wetland does not meet the qualifications for continued protection.

This Act provides that the drainage prohibition does not apply to a person maintaining, repairing or replacing an improvement to a drainage district as long as the improvement continues to serve the drainage district and the functions of the improvement are not expanded beyond the scope of functions as designed prior to the maintenance, repair or replacement.

HOUSE FILE 2335 - Agricultural Landholding Restrictions and Reporting Requirements (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act allows several types of business entities to hold agricultural land in this state. Generally, Code Section 9H.5 prohibits entities such as corporations, limited liability companies, limited partnerships, and cooperative associations from holding agricultural land. Code Chapter 9H provides several exceptions to this prohibition. Code Chapter 567 prohibits foreign entities such as nonresident aliens from holding agricultural land. A corporate entity, such as a corporation, can be organized on a "family" basis or on an "authorized basis."

An entity organized on a family basis can be a family farm corporation, family farm limited liability company, family farm limited partnership, or family trust. However, a number of restrictions apply. For example, a family farm corporation must be founded for the purpose of farming and the ownership of agricultural land; a majority of the voting stock must be held by, and a majority of the voting stockholders must be, relatives; all of the stockholders must be natural persons; and 60 percent of the corporation's gross revenues over the last consecutive three-year period must come from farming. Similar requirements apply to other types of business qualifying on a family basis. There is no restriction on the amount of agricultural land that a family farm entity may hold or the number of family farm entities that a person can join.

In the same way, an entity can be organized on an authorized basis as an authorized corporation, authorized limited liability company, authorized trust, or limited partnership. An authorized entity, such as an authorized corporation, must also meet certain qualifications. An authorized corporation must be founded for the purpose of farming and the ownership of agricultural land, it must be composed of 25 or fewer stockholders, and the stockholders must be natural persons. These same types of qualifications apply to other authorized entities, other than limited partnerships. However, an authorized entity, including a limited partnership, is prohibited from holding more than 1,500 acres of agricultural land. A person cannot hold an interest in two or more authorized entities.

This Act creates a new Code chapter providing additional ways for entities to acquire and hold agricultural land, including corporations, limited liability companies and cooperative associations. Under the Act, a business can hold agricultural land if it qualifies as a farmers entity. A farmers entity can be either a networking farmers entity, a farmers cooperative association or a farmers cooperative limited liability company. A farmers networking entity may be organized as a networking farmers corporation or a networking farmers limited liability company. A farmers cooperative association is a cooperative association organized under Iowa law (specifically Code Chapter 490 or 499). A farmers cooperative limited liability company is a limited liability company organized under Code Chapter 490A and composed of cooperative associations.

A number of restrictions apply in common to all of these entities:

• A farmers entity cannot hold more than 640 acres. In addition, an interest in agricultural land held by a farmers entity is attributable as an interest in agricultural land held by the person holding the interest in the entity. This means that a person cannot be a shareholder of a networking farmers corporation if the person could not hold agricultural land directly. There is an exception for cooperative associations which can hold an interest in any number of farmers entities, if the total number of acres held by the farmers entities and attributable to the cooperative association is 640 acres or less. A special exception also exists for temporary transfers of an interest by operation of law.
• Only certain persons can own an interest in farmers entities.

In the case of a networking farmers entity or a farmers cooperative association, the following requirements apply:

• A person cannot hold an interest in an entity if the person holds a 25 percent or greater interest in another entity having six or fewer interest holders or the person holds a 15 percent or greater interest in an entity having seven or more stockholders.
• A person who holds a majority interest in an authorized entity cannot hold a majority interest in another entity.
• Qualified farmers must hold at least 51 percent of the entity (e.g., 51 percent of the stock of a networking farmers corporation). A qualified farmer is restricted to individuals actively engaged in farming, general partnerships in which all partners are individuals actively engaged in farming, or farm estates. In addition, qualified persons must hold at least 70 percent of the entity. A qualified person is limited to qualified farmers, family farm entities like family farm corporations, or certain landlords.
• In the case of farmers cooperative limited liability companies, cooperative associations must hold 100 percent of the entity and farmers cooperative associations must hold at least 70 percent of the entity. In addition, less than 50 percent of the interest in the entity can be held by members which are parties to loan agreements involving regional cooperative associations.
• There are restrictions on farming activities. At least 75 percent of the networking farmers entity's gross receipts must come from the sale of livestock or livestock products. A farmers cooperative association or a farmers cooperative limited liability company cannot produce forage or grain on its own land unless it is under a contract on a cash-lease basis. In addition, a farmers cooperative limited liability company cannot own or contract for the care and feeding of swine if a member of the entity is a regional cooperative association.
• Special rights are provided to members of farmers cooperative associations. If the association adopts a resolution to acquire an interest in agricultural land or in a farmers entity, the members may petition the association's board of directors to demand a referendum on the question. If a valid petition is filed, the resolution cannot become effective until the resolution is approved by a majority vote of the voting members of the association casting ballots. In addition, the holders of members' equity may dissent by filing a dissent with the board of directors members for the fair value of that member's interest.
• A number of penalties apply to persons violating the Act. A person violating landholding restrictions is subject to a civil penalty of not more than $10,000 and must divest itself of any land held in violation of the Act within one year after judgment is entered ordering the entity to comply with the Act. A person who holds an interest in a farmers entity in violation of the Act is subject to a civil penalty of $1,000 and must divest interest. A court may determine the method for divesting an interest, and any financial gain is forfeited to the state. The courts may issue injunctions in order to enforce the Act.

The Act also provides for a number of reporting requirements for all corporate entities holding agricultural land in this state, including entities holding land under this Act, and entities holding land under other Code Chapters 9H and 567. The entity must file an annual report with the Secretary of State on or before March 31 of each year. The report must contain information for the last year regarding the entity, including information about the activities of the entity, the entity's landholdings, and agricultural commodities produced on the land. The Act excuses an entity from filing a report during any year in which the entity holds an interest in less than 20 acres of agricultural land or the entity files a duplicate report as an authorized entity. The Act provides that failure to timely file a report or filing false information is punishable by a civil penalty not to exceed $1,000. The Act suspends reporting requirements under other Code chapters. The suspension is repealed on July 1, 2000.

The Act takes effect April 16, 1998.

HOUSE FILE 2382 - Identification of Animals (full text of act)

BY GREIG. This Act amends Code Chapter 169A, which provides for the regulation of livestock brands. A brand properly recorded with the Department of Agriculture and Land Stewardship is prima facie evidence of the livestock's ownership. "Livestock" is defined to mean horses, cattle, sheep, mules, or asses.

This Act amends Code Section 169A.10 to provide that information accessed from an electronic identification device fixed onto or implanted beneath the skin or hide of an animal is prima facie evidence of the identity of the animal and the owner. An "animal" is defined to mean a creature belonging to the bovine, caprine, equine, ovine, or porcine species; ostriches, rheas or emus; farm deer; or poultry. The Act requires that the device meet certain design standards and be installed consistent with the manufacturer's requirements. The Act also provides that if information from the device is not consistent with a brand record, the brand record controls.

The Act provides for investigations involving the custody and ownership of animals subject to an electronic identification by the sheriff in the same manner as provided for brands. The results of the investigation are also admissible as evidence.

The Act also amends provisions that prohibit a person from tampering with a brand. The Code provides that a person who tampers with a brand is guilty of a fraudulent practice. This Act provides that a person who installs an electronic device or removes or damages an installed electronic device without authorization from the owner of an animal is also guilty of a fraudulent practice. The penalty for committing a fraudulent practice ranges from a simple misdemeanor to a class "C" felony, depending upon the amount of money involved in the offense.

HOUSE FILE 2438 - Regulation of Commercial Feed (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 198, the "Iowa Commercial Feed Law." The Act amends Code Section 198.3, which provides that commercial feed does not include certain seeds, but permits the Secretary of Agriculture to exempt certain commodities from the definition of "commercial feed." This Act permits the exemption of unmixed whole seeds and physically altered entire unmixed seeds if the seeds are not adulterated and have not been chemically changed.

The Act also amends Code Section 198.4, which requires that a person must be licensed if they manufacture a commercial feed, if the person's name appears on the label of a commercial feed, or if the person is a broker of commercial feed. This Act provides that the manufacturer, distributor and broker must still receive a license, and further provides that a person whose name appears on the commercial feed label as a guarantor must also be licensed. However, the Act exempts a person from licensure requirements if the person makes only retail sales of commercial feed and the commercial feed bears a label providing that the commercial feed comes from a licensed manufacturer, guarantor or distributor who is responsible for paying an inspection fee imposed under the chapter.

HOUSE FILE 2473 - Farm Mediation (full text of act)

BY COMMITTEE ON JUDICIARY. This Act amends Code Chapters 654A, 654B and 654C, which provide for mediation affecting agricultural producers. Code Chapter 654A requires mediation between creditors and farmers who are borrowers prior to the enforcement of a legal action to collect the debt. Code Chapter 654B requires mediation in disputes involving farmers who provide care and feeding to livestock under contract. Code Chapter 654C allows for mediation between producers and neighbors negotiating to allow the construction of animal feeding operation structures closer than otherwise legally required to the neighbor's property.

The Act requires greater participation by the parties attending the mediation meetings. It provides for the types of corporate entities that must be involved as parties to a mediation, and requires personal participation by the parties subject to mediation. If the party is a corporate entity, attendance and participation are required by an officer, director, employee, or partner of the party. If a person acts in a fiduciary capacity for the party, the fiduciary may represent the party. Another representative may attend if a party cannot otherwise be represented. Any representative must be able to execute documents required under the chapter, including a mediation agreement or waiver.

Current law requires participation at only one mediation meeting by a party or a party's representative. The Act is partly in response to Arends v. Iowa Select Farms, 556 N.W.2d 812, a case in which the Iowa Supreme Court held that mediation requirements were satisfied when an attorney for one party attended and participated in a mediation meeting, even though the attorney did not have the authority to enter into an agreement on behalf of the party.

HOUSE FILE 2492 - Drainage District Repairs and Improvements -- Period for Financing (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 468, which provides for drainage districts. Currently, drainage repairs and improvements may be financed by an assessment payable by landowners over a number of years. The assessments must be collected in fewer than 10 installments. The Act provides that the installments may be collected in not more than 20 installments.

HOUSE FILE 2494 - Regulation of Animal Feeding Operations and Related Provisions (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends a number of provisions which apply to the regulation of animal feeding operations as administered by the Department of Natural Resources. The Act does all of the following:

• Amends provisions relating to the Manure Storage Indemnity Fund, which was established in order to reimburse the expenses incurred by counties in cleaning up manure storage structures on a site the county received due to nonpayment of back taxes. The fund is supported by fees paid by persons obtaining construction permits from the Department of Natural Resources for confinement feeding operations. The Act provides that if moneys are not sufficient to support the fund, the Executive Council may allocate up to $3 million from the State General Fund in order to help satisfy claims by counties. The Act doubles the fees paid by permittees, and requires that persons submitting manure management plans also pay an indemnity fee. The Act allows the department or a county to clean up the site of a confinement feeding operation and obtain reimbursement from the fund if the confinement feeding operation has caused a clear, present and impending danger to the public health or the environment. The Act provides that the indemnity fee is not assessable against a person who received a construction permit within 10 years prior to May 31, 1995, if the confinement feeding operation was not constructed under the construction permit and the permit has expired. The Act also provides that a person who has not paid an indemnity fee is not subject to a delinquency penalty if the person pays the full amount of the indemnity fee.
• Prohibits a county from adopting or enforcing county legislation regulating an agricultural operation involving the production, care, feeding, or housing of livestock, unless expressly authorized by state law.
• Provides for determining when adjacent confinement feeding operations are considered as a single operation. The calculations are different for determining separation distance requirements and threshold requirements for issuing permits.
• Amends separation distance requirements between animal feeding operation structures and homes, schools, businesses, churches, and public use areas by increasing several of those separation distance requirements. The Act imposes additional separation distances required between animal feeding operation structures and cemeteries and thoroughfares. The Act prohibits a person from applying liquid manure from a confinement feeding operation on land located within a distance from a protected area. The Act creates several exceptions to new separation distance requirements, including an exception for the replacement of an unformed manure storage structure with formed manure storage structures. The Act also allows for persons benefiting from a separation distance to execute a waiver of their rights. The separation distance applicable between a thoroughfare and an animal feeding operation does not apply if permanent vegetation stands between the structure and the thoroughfare. The separation distance requirements applying to the application of liquid manure do not apply if the manure is injected or incorporated, originates from a small animal feeding operation, or is applied by spray irrigation equipment under departmental regulation.
• Increases special separation distance requirements in order to protect surface and subsurface water sources, including major water sources. An exception is created for structures constructed with secondary containment barriers.
• Amends Code Section 455B.173, subsection 13, providing for the issuance of permits by the department for animal feeding operations. The Act transfers the provision to a new Code section. The Act provides that a county board of supervisors may hold a public hearing to receive public comments regarding an application for a construction permit. The county board of supervisors may submit comments by the board and the public to the department. The Act provides that the county board of supervisors may designate a county employee to accompany a departmental official during any site inspection. The Act provides that a county board of supervisors may contest the decision as provided by rules adopted by the Environmental Protection Commission in conformance with Code Chapter 17A.
• Requires the owner of a confinement feeding operation, other than a small animal feeding operation, to submit a manure management plan, regardless of whether a permit is required for the operation, or whether the confinement feeding operation is located outside the state.
• Provides for the certification of commercial manure applicators and persons who apply manure originating from a confinement feeding operation other than a small animal feeding operation. The Act provides that a manure applicator is prohibited from applying manure unless the person is certified by the department. The requirements involve passing an examination and taking continuing instructional courses. The requirements are similar to requirements imposed upon commercial pesticide applicators. The Act assesses fees for certification.
• Requires the department to adopt rules governing the construction of manure storage structures constructed pursuant to a construction permit, including design characteristics such as the lining of structures. The Act also provides for conducting routine inspections of unformed manure structures.
• Creates special exceptions from water quality regulations which would otherwise apply to research colleges.
• Provides special enforcement measures. The Act permits a county to receive and review complaints regarding animal feeding operations, report the complaint to the department, and designate an employee to accompany the departmental official during an investigation of the site.
• Amends provisions which currently prohibit a habitual violator from obtaining a permit from the department for the construction or operation of an animal feeding operation. This Act allows the department to deny or revoke all environmental permits issued by the department under Code Chapter 455B. The Act also provides that a person who receives a controlling interest in a suspect site controlled by a habitual violator may be subject to the same conditions and enhanced penalties as applied to the habitual violator. The Act provides that a transaction involving a habitual violator may be considered suspect if the transaction involves transferring a controlling interest in the operation or land where an operation may be constructed to a person who is financially close or family-related; or financing the construction or operation of a confinement feeding operation.
• Requires that the department consult with members of organizations representing various interests collectively known as the Animal Agriculture Consulting Organization.
• Amends provisions regarding nuisance suit protection for owners of animal feeding operations, by eliminating a provision granting an animal feeding operation a rebuttable presumption that the operation is not a nuisance, unless there is proof by clear and convincing evidence that the operation unreasonably and continuously interferes with another person's comfortable use and enjoyment of life and property and the injury or damage is proximately caused by negligent operation. This Act provides that in order to prove a nuisance, the animal feeding operation must unreasonably and for substantial periods of time interfere with the person's comfortable use and enjoyment of life or property and that the owner must fail to use existing prudent generally accepted management practices reasonable for the operation.

The Act has a number of special effective dates. Provisions governing preemption of county authority, regulating habitual violators, providing definitions for "adjacency" and "nuisance suit protection," relating to the functioning of the Animal Agriculture Consulting Organization, and providing for the payment of outstanding indemnity fees take effect May 21, 1998. Provisions governing enforcement actions, separation distance requirements, permit requirements, manure management plan requirements, manure applicator certification requirements, and application requirements take effect January 1, 1999.

HOUSE FILE 2542 - Bulk Dry Animal Nutrient Products (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act creates a new Code Chapter 200A titled the "Bulk Dry Animal Nutrient Products Law." The Act regulates certain bulk dry animal manure for use as a fertilizer or soil conditioner and especially the distribution of the manure, which is unmanipulated and therefore not subject to regulation under Code Chapter 200 (regulating processed fertilizers and soil conditioners). The Act authorizes the Department of Agriculture and Land Stewardship to adopt rules to administer the chapter.

The Act provides that a person who distributes a bulk dry animal nutrient product in this state must first obtain a license from the department. It provides that a person cannot distribute the bulk product unless the bulk product is registered with the department. It requires that a product be labeled or accompanied with a statement setting forth information regarding the contents of the product and its application. It also requires a licensee to file reports with the department. The Act imposes a fee upon licensees and a fee for the inspection of the product by the department.

The Act includes a number of enforcement mechanisms that allow the department to take disciplinary action against a person acting in violation of the Act's provisions, including license suspension or revocation. It provides for the examination of samples to ensure compliance with the provisions of the Act, procedures for collecting and examining samples, and the use of samples in legal proceedings. It permits the seizure, condemnation or disposal of a product not in compliance with, or in violation of, the Act's provisions. It regulates the content and the advertisement of a bulk dry animal nutrient product. It also regulates the storage of the product in order to protect water quality. The Act also provides that a person in violation of the chapter's provisions is subject to prosecution by a county attorney.

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© 1998 Cornell College and League of Women Voters of Iowa

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Last update: THU July 30 1998
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