1999 Summary of Legislation Published by the Iowa General Assembly -- Legislative Service Bureau

AGRICULTURE

AGRICULTURE LEGISLATION

SENATE FILE 436 - Livestock Marketing Practices - Packers (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act regulates practices engaged in by meatpackers ("packers") when purchasing livestock.

The Act provides for price reporting, by requiring a packer to file purchase reports with the Department of Agriculture and Land Stewardship that include information relating to the purchase of livestock as required by the department. A packer must file purchase reports at times determined practicable by the department, but not later than two business days following the event being reported. The information required to be reported may include, but is not limited to, livestock purchased, committed for delivery, or slaughtered. The information may also include the volume of daily purchases and the weight, grade and price paid for livestock, including all premiums, discounts or adjustments. If livestock is purchased pursuant to contract, the department may require that information in the purchase report be categorized by the type of contract. The purchase reports must allow the department to compare prices paid under contract with cash market prices. The Act also requires a packer to post a notice that includes information relating to the purchase of livestock as required by the department. The information contained in the purchase notice must include a summary of information required to be filed in purchase reports.

The Act also prohibits a packer from including in a contract for the purchase of livestock a provision making information contained in the contract confidential. If a contract executed on or after April 29, 1999, contains such a provision, the Act voids the provision. A packer who includes a confidentiality provision in a contract with a livestock seller is guilty of a fraudulent practice.

The Act requires that the department, in consultation with the Attorney General, adopt rules necessary in order to administer the Act. The department may establish different rules according to the species of livestock governing purchase reporting and purchase notice requirements.

The Act provides for enforcement by the Attorney General, including authorizing the Attorney General to seek injunctive relief or subpoenas and enforce civil penalties. The Act provides that a packer who fails to file a timely, accurate or complete purchase report is subject to a civil penalty of not more than $5,000 for each offense. A packer who fails to post a timely, accurate or complete purchase notice is subject to a civil penalty of not more than $1,000 for each offense.

The Act provides for the repeal of provisions relating to purchase reporting and purchase notice posting if the federal government implements a statute or regulation that is substantially similar to or more stringent than state requirements and penalties.

The Act takes effect April 29, 1999. However, provisions providing for purchase reporting and purchase notice posting take effect on July 1, 2000.

SENATE FILE 436 - Livestock Marketing Practices - Packers(full text of act)

BY COMMITTEE ON AGRICULTURE. This Act regulates practices engaged in by meatpackers ("packers") when purchasing livestock.

The Act provides for price reporting, by requiring a packer to file purchase reports with the Department of Agriculture and Land Stewardship that include information relating to the purchase of livestock as required by the department. A packer must file purchase reports at times determined practicable by the department, but not later than two business days following the event being reported. The information required to be reported may include, but is not limited to, livestock purchased, committed for delivery, or slaughtered. The information may also include the volume of daily purchases and the weight, grade and price paid for livestock, including all premiums, discounts or adjustments. If livestock is purchased pursuant to contract, the department may require that information in the purchase report be categorized by the type of contract. The purchase reports must allow the department to compare prices paid under contract with cash market prices. The Act also requires a packer to post a notice that includes information relating to the purchase of livestock as required by the department. The information contained in the purchase notice must include a summary of information required to be filed in purchase reports.

The Act also prohibits a packer from including in a contract for the purchase of livestock a provision making information contained in the contract confidential. If a contract executed on or after April 29, 1999, contains such a provision, the Act voids the provision. A packer who includes a confidentiality provision in a contract with a livestock seller is guilty of a fraudulent practice.

The Act requires that the department, in consultation with the Attorney General, adopt rules necessary in order to administer the Act. The department may establish different rules according to the species of livestock governing purchase reporting and purchase notice requirements.

The Act provides for enforcement by the Attorney General, including authorizing the Attorney General to seek injunctive relief or subpoenas and enforce civil penalties. The Act provides that a packer who fails to file a timely, accurate or complete purchase report is subject to a civil penalty of not more than $5,000 for each offense. A packer who fails to post a timely, accurate or complete purchase notice is subject to a civil penalty of not more than $1,000 for each offense.

The Act provides for the repeal of provisions relating to purchase reporting and purchase notice posting if the federal government implements a statute or regulation that is substantially similar to or more stringent than state requirements and penalties.

The Act takes effect April 29, 1999. However, provisions providing for purchase reporting and purchase notice posting take effect on July 1, 2000.

HOUSE FILE 208 - Southern Iowa Development and Conservation Authority(full text of act)

BY ARNOLD, DOLECHECK, REYNOLDS, KREIMAN, AND DAVIS. This Act establishes a Southern Iowa Development and Conservation Authority that includes the counties of Appanoose, Clarke, Davis, Decatur, Jefferson, Lucas, Monroe, Van Buren, Wappelo, and Wayne. Each county is entitled to a voting member on the authority, but membership or participation in projects of the authority is not required. The mission of the authority is to develop and coordinate plans for projects related to the unique natural resources, rural development, and infrastructure problems of counties in the most fragile areas of the southern Iowa drift plain. The Act requires the authority to cooperate with various local, state and federal entities in carrying out its duties. The authority of the Department of Natural Resources to acquire, develop and manage public lands within the counties represented by the Southern Iowa Development and Conservation Authority is not affected by this legislation.

The Act creates a Southern Iowa Development and Conservation Fund, which is to be administered by the authority. The proceeds of the fund shall be used for planning, development and implementation of development and conservation activities or measures in the member counties.

HOUSE FILE 293 - Iowa Sheep and Wool Promotion Board Assessments(full text of act)

BY BOGGESS. This Act amends Code Chapter 182, which provides for the assessment (commonly referred to as a checkoff) of sheep and wool imposed on the first purchaser. The Act provides for the imposition of the assessment on sales of sheep, regardless of whether the sheep are sold for slaughter. According to the Act, the assessment is imposed when the sheep are sold at a concentration point, which includes a public market. However, the Act also provides for the imposition of the assessment when the sheep are not sold at a concentration point, such as a private sale. The Act also amends the chapter in order to enhance its readability.

HOUSE FILE 312 - Grain Industry Regulation(full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapters 203 and 203C, providing for the regulation of grain dealers and warehouse operators required to be licensed by the Department of Agriculture and Land Stewardship, and providing for the Grain Depositors and Sellers Indemnity Fund as established in Code Chapter 203D.

The Act increases the amount of grain a person may purchase during a calendar year for resale, milling or processing, from less than 500 to less than 1,000 bushels, without being regulated as a grain dealer. The Act requires that persons who are not licensed grain dealers must notify a producer if the person purchases 50,000 or more bushels of grain in the previous 12 months. The notice must warn the producer that the grain is not covered by the Grain Depositors and Sellers Indemnity Fund.

The Act eliminates references to "registered feed," which is no longer regulated.

The Act amends a provision requiring a grain dealer to file and maintain a bond with the department. The Act prohibits cancellation of the bond by the issuer without providing the department with 90 days' notice. The Act permits the department to authorize the cancellation of the original bond if an adequate replacement bond is filed with the department.

The Act requires the department to establish, by rule, civil penalties that may be administratively or judicially assessed against a grain dealer or warehouse operator for a violation of the chapters regulating those persons. The amount of the civil penalty cannot exceed $1,500. The Act provides procedures for administratively assessing the civil penalties. The amount of the civil penalty cannot exceed the amount recommended by the Grain Industry Peer Review Panel as established by the Act. The Act provides that moneys collected in civil penalties by the department or the Attorney General must be deposited in the General Fund of the State.

The Act establishes a Grain Industry Peer Review Panel to assist the department in establishing and assessing civil penalties. The Act requires the Secretary of Agriculture to appoint members to the panel who represent grain dealers, warehouse operators and grain producers. The Act provides procedures for the operation of the panel and reimbursement of member expenses. The Act provides that the panel may propose a schedule of penalties for minor and serious violations, and may review cases of persons required to be licensed as grain dealers or warehouse operators and who are subject to civil penalties.

The Act increases, from six months to one year from the date of delivery to the warehouse, the amount of time allowed before a warehouse receipt must be issued for grain held in open storage (i.e., unpurchased grain).

Finally, the Act provides that incidental warehouse operators must have sufficient quantity and quality of grain to cover obligations to depositors.

HOUSE FILE 322 - Production of Agricultural Commodities (full text of act)

BY COMMITTEE ON AGRICULTURE. This Act provides for the production and purchasing of agricultural commodities, by regulating the ownership of facilities used in livestock production and contracting for the production of agricultural commodities.

Code Section 9H.2 prohibits a processor from owning, controlling or operating a feedlot in Iowa in which hogs or cattle are fed for slaughter. Code Section 9H.1 defines "feedlot" to mean a lot, yard, corral, or other area in which hogs or cattle fed for slaughter are confined. This Act provides that a "feedlot" also includes a building.

The Act regulates the relationship between a contractor and a contract producer under new Code Chapter 8E. A contractor is a person who contracts with an agricultural producer to produce a commodity on property held by the agricultural producer. The agricultural producer is referred to as a contract producer. The contract is referred to as a production contract. A commodity means crops, raw milk and livestock.

The Act provides that a contractor is prohibited from enforcing a provision in a production contract if the provision provides that information contained in the production contract is confidential. A provision contained in a production contract is void if the provision states that information contained in the production contract is confidential. The Attorney General is responsible for enforcing the chapter, and is authorized to apply to district court to obtain injunctions or subpoenas. A person who enforces a confidentiality provision is guilty of a fraudulent practice.

The Act establishes a new Code Chapter 579B, which creates a lien upon commodities produced at the contract producer's contract operation under a production contract in favor of the contract producer. The chapter is based on existing Code Chapter 579A, which allows a custom cattle feedlot operator to file a lien on cattle produced at a custom cattle feedlot. The lien under new Code Chapter 579B is created when a production contact is executed in writing or orally.

The Act provides that the lien is on the commodity. However, if the commodity is sold, the lien is on the cash proceeds from the sale. If the commodity is processed, the lien is on any property of the contractor that is subject to a security interest under the Uniform Commercial Code (Code Chapter 554). The lien continues for one year after the commodity is no longer under the authority of the contract producer.

The Act requires the contract producer to file a lien statement with the Secretary of State within 45 days after the date that the livestock arrive at the contract facility or the crop is first planted.

Generally, the lien is superior to and has priority over conflicting liens or security interest in the commodity. A contract producer may provide for the enforcement of the lien in the same manner as provided for other security interests under the Uniform Commercial Code.

The Act also amends Code Chapter 579A, which establishes a lien on cattle maintained at a custom cattle feedlot in favor of the custom cattle feedlot operator. Generally, the amendments are consistent with provisions contained in new Code Chapter 579B. The Act amends the definition of "feedlot" in Code Chapter 579A to include buildings in which cattle are confined and fed. The Act provides that a lien may be created by the personal representative of the custom cattle feedlot. The Act provides that the lien may be created pursuant to a written or oral agreement.

Finally, the Act provides that a waiver of a right created under Code Chapter 579A or 579B is void and unenforceable. The Act provides that a custom cattle feedlot operator may file and enforce a lien under one chapter or another, but not both.

The Act takes effect May 24, 1999.

HOUSE FILE 343 - Costs of Drainage Improvements in Railroad Rights-of-Way(full text of act)

BY MERTZ AND KLEMME. This Act amends Code Chapter 468, which provides that when a board of supervisors requires the construction of a drainage improvement across a railroad right-of-way within a levee or drainage district, the railroad company must construct the improvement after receiving a notice from the county. Code Section 468.112 provides that if the railroad company does not construct the improvement, the board may order the construction and charge the costs to the railroad company. The Act provides that in a collection proceeding brought by the county to collect the moneys on behalf of the district, the court may award the prevailing county reasonable attorney fees incurred by the county, to be paid by the railroad company and taxed as part of the costs of the action.

HOUSE FILE 412 - Leopold Center Advisory Board Membership(full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Section 266.39, which establishes the Leopold Center for Sustainable Agriculture in the Iowa Agricultural and Home Economics Experiment Station at Iowa State University of Science and Technology. The center is responsible for conducting and sponsoring research to identify and reduce negative environmental and socioeconomic impacts of agricultural practices. The Code section also establishes an advisory board responsible for advising the center's director in the development of a budget and on the policies and procedures of the center. This Act increases the membership of the board to 17 to include four representatives of agricultural organizations. The Act provides for reimbursing the members for necessary and actual expenses.

HOUSE FILE 570 - Marketing of Turkeys and Turkey Products - Council - Producer Assessment(full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 184A, which provides for the establishment of the Iowa Turkey Marketing Council, the imposition of an assessment (commonly referred to as a checkoff) on turkeys sold to processors, and the use of those moneys.

Currently, turkey producers are subject to a checkoff based on the weight of the bird. The rate is to be not more than 1 cent for each turkey weighing less than 10 pounds live weight and not more than 2 cents for each turkey weighing 10 or more pounds live weight. This Act authorizes the council to establish different rates with a 3-cent maximum. Currently, producers raising more than 200 turkeys are subject to the assessment. The Act provides that producers raising more than 5,000 turkeys are subject to the assessment.

Currently, turkey producers must vote in a referendum to establish the council and checkoff. In addition, the producers must continue the council and the checkoff every five years by voting in a referendum. The Act rewrites procedures for establishing the council and instituting the checkoff, and abolishing the council and terminating the checkoff, based on provisions in Code Chapter 184 governing the Iowa Egg Council. The Act rewrites provisions necessary to conduct a referendum required to continue the council and assessment. The procedures for conducting this referendum are based on the procedures for establishing or abolishing the council and assessment.

Currently, a producer may apply for a refund of checkoff moneys. This Act provides that the council must provide for a refund according to rules adopted by the council.

Currently, the council is composed, in part, of five representatives nominated by the Iowa Turkey Federation and appointed by the Department of Agriculture and Land Stewardship. This Act provides for direct appointment to the council by the federation's board of directors. The Act provides that members of the council appointed to the council serve at the pleasure of the board.

The Act rewrites and reorganizes a number of provisions in the chapter in order to enhance its readability and conform its provisions with practice or to chapters providing checkoffs for other commodities. Many of the changes are nonsubstantive. For example, the Act replaces the term "fee" with the term "assessment." The Act eliminates language regarding officers of the council. It moves and consolidates provisions. The Act also includes a number of substantive provisions. The Act includes provisions expressly setting forth the powers of the council, and procedures for the conduct of its meetings. The Act forbids the council from expending moneys in the turkey council account in a manner inconsistent with the administration of the chapter, including supporting political campaigns or candidates.

The Act takes effect May 20, 1999.

HOUSE FILE 721 - Iowa Egg Council - Membership and Administration(full text of act)

BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 184, which establishes the Iowa Egg Council. The Act eliminates a number of requirements relating to the administration of the council. It eliminates a provision prohibiting a member of the council from serving more than two complete consecutive terms. It eliminates a requirement that the chairperson or other officer of the council serve a one-year term. The Act provides for the powers and duties of the council. It authorizes the council to become a member of organizations involving egg consumption and utilization and authorizes the council to fund research and education programs. The Act rewrites a provision prohibiting the council from selling eggs or egg machinery. It amends a provision that prohibits a member of the council from being a salaried employee of an organization or agency receiving moneys from the council. The Act provides that the prohibition applies to voting members of the council. Finally, the Act eliminates a provision providing that council expenses and bond premiums must be paid from assessments.

The Act takes effect May 10, 1999.

HOUSE FILE 779 - Linked Investment Programs(full text of act)

BY COMMITTEE ON APPROPRIATIONS. This Act amends provisions in Code Chapter 12 that allow the Treasurer of State to invest up to $68 million, or 10 percent of the balance, of the State Pooled Money Fund in certificates of deposit in eligible lending institutions. The state receives a lower interest rate as part of an agreement in which the lending institution loans moneys to eligible persons, under programs specified in the chapter, at a reduced rate of interest. Persons eligible to receive these loans include rural small businesses; persons involved in producing, processing or marketing horticultural or nontraditional crops; and businesses owned by minorities, women or disabled persons.

The Act provides that the gross income earned by the borrower's business of producing, processing or marketing horticultural or nontraditional crops cannot be more than $300,000 for the borrower's last tax year.

The Act increases the amount that the Treasurer of State may invest to $108 million, but provides that the additional moneys must be used to support two new programs: $20 million must be invested in order to support a program for traditional livestock producers and at least $20 million must be loaned to support a program for value-added agricultural projects.

In order to qualify as a traditional livestock producer, the borrower must hold a legal interest in a livestock operation in which cattle or swine are raised, own the livestock, be a resident of this state, not be subject to a legal action involving environmental violation or be classified as a habitual violator of environmental regulations, have a gross income earned from farming operations of more than $50,000 but not more than $300,000, and earn at least 50 percent of the income from livestock production. A program loan cannot be for more than $100,000.

In order to receive a loan for a value-added agricultural project, a borrower must meet eligibility requirements established by the Treasurer of State. The purpose of providing the loans is to stimulate existing businesses, or encourage the establishment of new businesses, that add value through the processing of agricultural commodities. Another purpose is to encourage the production of agricultural commodities, if a shortage in production exists. A program loan cannot be for more than $250,000.

The Department of Economic Development and the Department of Agriculture and Land Stewardship are required to conduct a review of programs under Code Chapter 12, and submit a report to the General Assembly on or before February 1, 2000.

The Act takes effect on May 24, 1999.

RELATED LEGISLATION

SENATE FILE 41 -- County Agricultural Extension Council - Duties and Meetings (Complete summary under LOCAL GOVERNMENT.)

This Act requires each county agricultural extension council to meet at least twice during a calendar year, and strikes a requirement that the council publish the date, time and place of election of its members, because the county commissioner of elections is required to publish similar information and a sample ballot before elections. Other January dates are changed to reference the budget certification date, March 15.

SENATE FILE 136 -- Tax Administration and Related Matters (Complete summary under TAXATION.)

This Act amends various provisions of state and local tax law. This Act specifies the method for calculating the livestock production tax credit for cow-calf operations effective beginning with the 1997 tax year. This provision applies retroactively to January 1, 1997, for tax years beginning on or after that date.

SENATE FILE 146 -- Regulation of Worker and Public Safety and Protection (Complete summary under LABOR & EMPLOYMENT.)

This Act makes a number of changes to Code provisions administered by the Labor Services Division of the Department of Workforce Development, including eliminating a requirement that farm labor contractors who contract with persons engaged in the production of seed or feed grains obtain a minimum bond of $20,000 on the person's behalf. The Act preserves the provision making both the producer and the farm labor contractor liable for the wages to employees.

SENATE FILE 230 -- Internal Revenue Code References and Income Tax Provisions (Complete summary under TAXATION.)

This Act updates the references to the Internal Revenue Code to make the federal income tax revisions enacted by Congress in 1998 applicable for Iowa income tax purposes. The Act extends the net operating loss carryback period to five years for net operating losses from farming businesses arising in taxable years beginning after December 31, 1997. The Act takes effect May 6, 1999, and applies retroactively to January 1, 1998, for tax years beginning on or after that date.

HOUSE FILE 242 -- Substantive Code Corrections (Complete summary under STATE GOVERNMENT.)

This Act contains statutory corrections that adjust language to reflect current practices, insert earlier omissions, delete redundancies and inaccuracies, delete temporary language, resolve inconsistencies and conflicts, update ongoing provisions, or remove ambiguities. The Act provides a uniform bond amount for each place of business of a dealer in biological products, amends the definition of "distribute" within the chapter pertaining to bulk dry animal nutrient products, conforms the usage of the term "board of supervisors" within provisions relating to the detachment and attachment of areas to rural water districts, amends animal feeding operation provisions to specify which persons are restricted from constructing or expanding animal feeding operations structures, and amends the exemption to certification of confinement site manure applicators to specify that it applies to persons who are acting under the instructions and control of a certified confinement site manure applicator.

HOUSE FILE 339 -- Agricultural Drainage Wells - Closing Deadline (Complete summary under ENVIRONMENTAL PROTECTION.)

This Act extends the deadline for closing agricultural drainage wells located in designated agricultural drainage well areas from December 31, 1999, to December 31, 2001.

HOUSE FILE 476 -- Eminent Domain and Condemnation Proceedings (Complete summary under LOCAL GOVERNMENT.)

This Act makes several changes to the law relating to the power of eminent domain and the procedures by which the State of Iowa and other entities and persons are allowed to condemn private property. The Act contains a number of provisions relating to the condemnation of agricultural land.

HOUSE FILE 531 -- Manure Applicator Certification - Deadline Extension (Complete summary under ENVIRONMENTAL PROTECTION.)

This Act delays the date by which manure applicators must be certified by the Department of Natural Resources. The Act takes effect on April 28, 1999.

HOUSE FILE 573 -- Controlled Substances - Methamphetamine - Penalties (Complete summary under CRIMINAL LAW, PROCEDURE & CORRECTIONS.)

This Act makes various changes to methamphetamine or controlled substance-related crimes. The Act amends Code Chapter 189, which applies to a number of chapters regulating agricultural-related products and activities. The Act provides that Code Section 189.16, relating to possession or control of an article which is adulterated or which is improperly labeled, does not apply to the possession or control of grain or mining materials by persons in the respective grain trade or mining industry, or to a controlled substance as provided in Code Chapter 124. The Act also increases the penalty applicable to tampering with anhydrous ammonia equipment and illegal possession of anhydrous ammonia, from a simple misdemeanor to a serious misdemeanor.

HOUSE FILE 651 -- Implements of Husbandry and Other Vehicles - Movement Restrictions - Product Identification Numbers (Complete summary under TRANSPORTATION.)

This Act makes several changes relating to the transportation of implements of husbandry on the highways of this state, including modification of the definition of an "implement of husbandry" and imposition of size, weight and load restrictions for certain implements of husbandry operated on highways.

HOUSE FILE 676 -- Iowa Agricultural Industry Finance Act - Miscellaneous Provisions (Complete summary under ECONOMIC DEVELOPMENT.)

This Act makes several changes to the Iowa Agricultural Industry Finance Act, relating to ownership in the corporation by agricultural producers.

HOUSE FILE 746 -- Appropriations - Agriculture and Natural Resources (Complete summary under APPROPRIATIONS.)

This Act relates to agriculture and natural resources by making appropriations to support related entities, including the Department of Agriculture and Land Stewardship, the Department of Natural Resources, and Iowa State University of Science and Technology.

HOUSE FILE 772 -- Appropriations - Infrastructure and Capital Projects (Complete summary under APPROPRIATIONS.)

This Act makes appropriations from and to the Rebuild Iowa Infrastructure Fund for various capital and other projects. The Act creates new Code Section 161C.7, relating to watershed protection. The Department of Agriculture and Land Stewardship is directed to establish a Watershed Protection Task Force, and to implement and administer a Watershed Protection Program. The Act creates a Watershed Protection Account within the Water Protection Fund to be used for purposes of the program. The Act also makes several changes relating to county fairs, including modifying the method of providing state aid to county fairs and providing revenue bonding authority to societies conducting county fairs which meet certain requirements, with an option for a county to issue a standby tax levy to back such bonds.

© 1998 Cornell College and League of Women Voters of Iowa

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Last update: WED July 7 1999
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