2001 Summary of Legislation AGRICULTURE Published by the Iowa General Assembly -- Legislative Service Bureau

AGRICULTURE LEGISLATION

SENATE FILE 62 - Processing, Storage, and Distribution of Honey -- Residences (full text of act)

   BY COMMITTEE ON AGRICULTURE. Code chapter 137F provides for the regulation of food establishments and food processing plants by the Department of Inspections and Appeals, including the inspection and licensing of premises where food products are prepared and distributed. This Act amends provisions in the chapter to exempt from regulation the premises of a residence in which honey is stored; prepared; packaged, including by placement in a container; labeled; or from which honey is distributed.

SENATE FILE 209 - Control of Infectious or Contagious Diseases in Cattle and Other Animals -- Paratuberculosis (full text of act)

   BY JENSEN. This Act provides for the regulation of livestock, including by providing for the control of paratuberculosis and the marketing of dairy cattle.

   PARATUBERCULOSIS. Sometimes referred to "Johne’s disease," paratuberculosis affects livestock, but most often cattle and especially dairy cattle. The Act creates a new chapter requiring the Department of Agriculture and Land Stewardship to establish procedures to determine whether cattle are infected with the disease. The Act requires the owner of infected cattle to mark the right ears of the cattle with the letter "C" as required by the department. The Act prohibits a person from selling infected cattle other than directly to a slaughtering establishment or to a concentration point for sale directly to a slaughtering establishment.

   The Act also establishes a paratuberculosis task force for the purposes of studying the prevalence of paratuberculosis in this state and advising the department regarding methods required to control it. The task force is composed of persons representing the department, Iowa State University, the Iowa Veterinary Medical Association, the Iowa Dairy Products Association, the Iowa Cattlemen’s Association, and the Livestock Marketing Association. The task force must submit a report containing findings and recommendations to the Governor and General Assembly by January 10, 2002.

   MARKETING OF DAIRY CATTLE. The Act creates a new chapter regulating the marketing of dairy cattle. The Act requires that if a livestock market accepts dairy cattle upon express written condition that the dairy cattle are to be moved directly to slaughter, the dairy cattle must be segregated with other livestock to be moved directly to slaughter until sold to a slaughtering establishment. This requirement does not supersede requirements relating to the movement or marketing of livestock infected with an infectious or contagious disease.

   PENALTIES. In cases where a person violates provisions regulating paratuberculosis or the marketing of diary cattle, the person is subject to a civil penalty of at least $100 but not more than $1,000. In addition, the Act authorizes the department to file a petition in district court seeking injunctive relief.

SENATE FILE 211 - Department of Agriculture and Land Stewardship -- Miscellaneous Changes (full text of act)

   BY COMMITTEE ON AGRICULTURE. This Act amends and eliminates a number of provisions related to the powers and duties of the Department of Agriculture and Land Stewardship.

   Code Section 7A.3 requires a number of agencies, including the department, to file financial and operational reports on a biennial basis with the Governor and General Assembly. This Act strikes the requirement for the department and provides conforming changes to Code Section 455E.11 relating to the expenditure of moneys from the Groundwater Protection Fund.

   Code Section 99D.22 provides for a special day of parimutuel racing limited to Iowafoaled horses or Iowawhelped dogs in which a percentage of the purse is used to promote the horse and dog breeding industries. The amount is required to be paid to the department, which in turn must pay it by December 31 to the breeder of the winning Iowafoaled horse or Iowawhelped dog. This Act changes the December 31 date to March 31. It also provides that the breeder of a quarter horse or standardbred horse is considered to be the owner of a brood mare at the time the foal is dropped rather than at the time of breeding.

   Code Chapter 192 is amended to change the dates of publications used in regulating milk production, including those entitled "Grade ‘A’ Pasteurized Milk Ordinance, 1995 Revision"; "Procedures Governing the Cooperative StatePublic Health Service/Food and Drug Administration Program for Certification of Interstate Milk Shippers 1995"; and "Method of Making Sanitation Ratings of Milk Supplies, 1995 Revision." This Act amends the chapter to refer to the 1999 updated editions of those publications. The Act authorizes the Code Editor to eliminate a number of references appearing at the beginning of the chapter that have been repealed or transferred to other sections in order to enhance the chapter’s readability.

   The Act repeals Code Section 159.10, which requires the department to publish "the Iowa book of agriculture"; Code Section 159.15, which requires the department to make a biennial report to the Governor regarding the finances and administration of the department; Code Section 159.30, which requires the department to designate, promote and market packaging products which are degradable; and Code Section 159.37, which requires the department to establish a special quality grains electronic bulletin board system.

SENATE FILE 470 - Infectious and Contagious Diseases in Animals -- Regulation and Remedies (full text of act)

   BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 163, which provides for the general regulation of infectious and contagious diseases in animals (livestock) by the Department of Agriculture and Land Stewardship. The chapter regulates a number of practices including the shipment or movement of livestock; the sale of infected livestock; the issuance of certificates related to movement, such as a certificate of health or certificate of inspection; feeding garbage to livestock; the identification of swine consigned to slaughter; and licenses required to breed bulls.

   A number of penalties apply to violations of these provisions, including both criminal and civil penalties. The criminal penalty is generally a simple misdemeanor. Several provisions provide that a violation is a fraudulent practice under Code Chapter 714. Penalties range from a simple misdemeanor to a class "C" felony, based on the value of the property involved in the commission of the offense. This Act eliminates those penalties and authorizes the department to establish, by rule, civil penalties. The Act provides that a person violating a provision of Code Chapter 163, or a rule adopted pursuant to the Code chapter, is subject to a civil penalty of at least $100 but not more than $1,000. In the case of a continuing violation, each day of the continuing violation is a separate violation. The Act provides that a person shall not be subject to a civil penalty totaling more than $25,000. The Act also carves out one area where higher penalties are applicable. The Act provides that a person who falsifies a health certificate, veterinarian inspection certificate, or certificate of inspection is subject to a civil penalty of not more than $5,000 for each reference to an animal falsified on the certificate, with a maximum civil penalty of $25,000.

   The Act authorizes the department or the Attorney General acting on behalf of the department to apply to the district court for injunctive relief in order to restrain a person from acting in violation of the Code chapter.

   The Act repeals current provisions that refer to penalties and directs the Code Editor to reorganize the chapter into subchapters as appropriate.

SENATE FILE 524 - Grape and Wine Development (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act creates a new Code chapter that provides for grapes and wine development. The Act establishes a Grape and Wine Development Commission within the Department of Agriculture and Land Stewardship. The commission is composed of four nonvoting, ex officio members, including the Secretary of Agriculture, the Dean of the College of Agriculture of Iowa State University, the Director of the Department of Economic Development, and the Director of the Department of Natural Resources, or their designees. The commission includes five voting members appointed by the Secretary of Agriculture based on a list of nominations submitted by organizations representing growers and winemakers (with two appointees each) and retail sellers (with one appointee), with Senate confirmation.

   The Act provides for the operation of the commission and the powers and duties of both the department and the commission. The department is responsible for administering the provisions of the chapter, including establishing grape and wine development programs, reporting to the commission regarding the status of grape and wine production, providing facilities for the commission to meet and carry out its functions, and adopting rules as required. The commission is responsible for monitoring the grape and wine industries and establishing relationships with governmental agencies and interested associations. The commission may also contract with a viticulturist or oenologist to provide technical assistance under grape and wine development programs as provided in the Act, and approve or disapprove applications for financial assistance under those programs.

   The Act requires that the department, in cooperation with the commission, establish grape and wine development programs by assisting persons in establishing, improving or expanding vineyards or winemaking operations, including wineries. The programs may provide for technical assistance, including viticultural assistance to increase the size of vineyards, improve yield, and enhance the character, composition and condition of grapes. It also provides for oenological assistance to produce, preserve and transport commercially viable wines. The Act provides for financial assistance programs to assist persons beginning or engaged in grape growing or winemaking.

   The Act establishes a Grape and Wine Development Fund in the State Treasury under the control of the department. The fund includes moneys deposited in the fund derived from the wine gallonage tax as provided in Code Section 123.183. The Act amends the section by providing that of the revenue collected from the tax on wine imported into this state for sale at wholesale and sold in this state at wholesale, which is in excess of the revenue estimated to be collected from such tax as last agreed to by the state Revenue Estimating Conference during the previous fiscal year, not more than $75,000 must be deposited into the fund each year.

HOUSE FILE 225 - Election of State Fair Board Directors (full text of act)

   BY BRAUNS. This Act amends Code Chapter 173, which provides for the Iowa State Fair, including its administration by the Iowa State Fair Board. The board is vested with authority over the Iowa State Fair and other events held on the Iowa state fairgrounds, and is also responsible for the fairgrounds.

   The Iowa State Fair Board is composed of the Governor, the Secretary of Agriculture, and the President of Iowa State University (or their designees), and elected members referred to as "congressional directors" because two members are elected from each of Iowa’s five congressional districts. A congressional district director serves a term of two years, and each year, one successor from each congressional district is elected at a convention to serve on the board.

   The Act abolishes the congressional districts in favor of six districts modeled after regions used to select the State Soil Conservation Committee (see 27 IAC 1.20), including northwest, north central, northeast, southwest, south central, and southeast regions of the state.

   The Act provides that the current State Fair Board retains all its powers and is required to discharge its responsibilities as required in Code Chapter 173 as it did immediately prior to July 1, 2001. It requires the board to organize an election of all district directors and requires the convention held in 2001 to elect 12 district directors to the board. The board may propose and the convention must establish staggered terms of office for the elected directors as provided in Code Section 173.5.

HOUSE FILE 469 - Termination of Agricultural Equipment Dealership Agreements -- Repurchases Required of Supplier (full text of act)

   BY COMMITTEE ON AGRICULTURE. This Act requires a supplier of agricultural equipment who has an agricultural equipment dealership agreement with a dealer of agricultural equipment to repurchase certain unencumbered items from the dealer upon termination of the agreement by cancellation or nonrenewal. The Act requires the supplier to repurchase at its amortized value any specific computer hardware or software that the supplier required the dealer to purchase within the last five years.

   The Act also requires the supplier to repurchase special repair tools that were unique to the supplier’s product line and that are in complete and resalable condition. The supplier must pay the dealer 75 percent of the net cost of such tools if purchased within the last three years and 50 percent of the net cost if purchased within the last four to six years.

HOUSE FILE 502 - Offenses Against Animal Facilities or Crop Operations (full text of act)

   BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 717A, which prohibits a person from injuring animals or interfering with animal facilities. The chapter specifically prohibits a person, without the consent of the owner, from willfully destroying the property of an animal facility or injuring an animal maintained there. It prohibits such a person from exercising control over an animal facility or an animal maintained there with intent to deprive the animal facility of an animal or property. It also prohibits a person from entering onto or into an animal facility related to agricultural production, educational or scientific purposes, or veterinary care, or from remaining there if the person has notice that the facility is not open to the public and the person has an intent to disrupt its operations. A person convicted under the chapter is subject to criminal penalties ranging from a class "C" felony to a simple misdemeanor in part based on the amount of loss caused by the violation. A person suffering damages resulting from the loss has a cause of action against the violator for an amount equaling three times all actual and consequential damages plus court costs and reasonable attorney fees.

   The Act makes three fundamental changes to the chapter. It amends a number of definitions, including by providing that an animal specifically includes pelt-bearing mammals and honey bees. It also provides a definition for "agricultural production" that refers to the maintenance of an agricultural animal, which the Act defines as an animal maintained for its parts or products having commercial value or any animal classified as part of the equine species. Secondly, the Act provides that the willful injury of an animal includes the transmission of a disease, including a contagious or infectious disease as provided under Code Chapter 163.

   Finally, the Act prohibits persons from destroying crops and disrupting crop operations. The provisions are similar to those applying to animal facilities. The Act defines "crop" to mean grain and forage crops, but also includes trees, shrubs, vines, berry plants, and greenhouse plants. "Crop operation property" is defined to mean a crop field, orchard, nursery, greenhouse, garden, elevator, seedhouse, barn, warehouse, or a vehicle used to transport a crop. The Act provides a special definition for a "research crop" that is maintained for scientific research.

   The Act allows a person suffering damages to recover in the same manner as a person suffering damages resulting from the injury to an animal or destruction of property associated with an animal facility. The Act also provides special damages for losses related to a research crop, including damages accounting for loss of the crop’s expected scientific value. The criminal penalties are different for crops and crop operation property than for animals and animal facilities. For the destruction or damage to a crop or crop operation property, the penalties are the same as under Code Chapter 716 (criminal mischief), ranging from a class "C" felony to a simple misdemeanor based on the dollar amount of the loss. For exercising control over a crop or crop operation property, the penalty is an aggravated misdemeanor unless a research crop is involved and then it is a class "D" felony. For entering onto or remaining on crop operation property, the penalty is a serious misdemeanor unless a research crop is involved and then it is an aggravated misdemeanor.

HOUSE FILE 564 - Cooperative Associations -- Reversion of Disbursements (full text of act)

   BY COMMITTEE ON AGRICULTURE. This Act creates an exception to requirements that property considered abandoned must be turned over to the Treasurer of State.

   Generally under Code Chapter 556, the Treasurer of State takes custody of any stock, shareholding, or other intangible ownership interests in a business association such as a corporation or cooperative association (cooperative) that is considered abandoned. Custody extends to any dividend or other distribution (e.g., dividends from common stock, patronage dividends, earnings, or other sum accruing from that equity interest). If unclaimed, this property is marketed, if necessary, and the property or proceeds are forfeited to the General Fund of the State. This Act provides that a cooperative association (cooperative) organized under Code Chapter 490 or 499 may retain the dividend or other distribution (referred to as a "disbursement").

   The Act provides that once a person’s membership or stock, subscription, or other ownership interest in a cooperative association is deemed abandoned under Code Chapter 556, the cooperative may retain the disbursement held by the cooperative for or owing to the person. The cooperative may also deliver the disbursement to the Treasurer of State as abandoned property. If the cooperative elects to retain the disbursement, it must deposit it into a reversion fund. Any disbursement that is retained by the cooperative is forfeited to the cooperative if the cooperative publishes at least one notice in a publication designed to reach the cooperative’s membership and the disbursement is not claimed according to procedures required by the cooperative within six months from the first publication date. The cooperative retains the discretion to pay a claimant even after forfeiture. Otherwise, the disbursement must be used by the cooperative for purposes related to education or economic development.

HOUSE FILE 581 - Drainage or Levee District Election Districts -- Size (full text of act)

   BY COMMITTEE ON AGRICULTURE. This Act increases the size of a drainage or levee district required to have election districts from 3,000 acres or more to 20,000 acres or more.

HOUSE FILE 628 - Grain Dealer Regulation -- Exceptions (full text of act)

   BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 203, which provides for the regulation of grain dealers by the Department of Agriculture and Land Stewardship. The Act amends Code Section 203.1, to add an exception to the definition of "grain dealer." The Act provides that a grain dealer does not include a limited liability company if it meets certain requirements: (1) a majority of voting rights in the limited liability company must be held by producers; (2) the purpose of the limited liability company is to produce renewable fuel; (3) the limited liability company only purchases grain from its member producers; and (4) the limited liability company does not resell grain that it purchases.

HOUSE FILE 745 - Regulation of Foot and Mouth Disease (full text of act)

   BY RANTS. This Act authorizes the Department of Agriculture and Land Stewardship to establish security measures to control outbreaks of foot and mouth disease in this state. The department may provide for the prevention, suppression and eradication of the disease. In exercising its authority, the department may provide for the quarantine, condemnation or destruction of the animal. The department may establish quarantined areas and regulate activities in the quarantined areas; inspect or examine animal premises; test animals; compel persons who own or control animals to provide information regarding the animals, including information regarding its movement or vaccination status; and provide for cleaning and disinfection of real or personal property.

   The Act provides that if the department determines that there is a suspected outbreak, it must immediately notify the Governor or the Governor’s designee and the administrative unit of the U.S. Department of Agriculture responsible for controlling outbreaks in this state. If an outbreak is confirmed, the department must cooperate with the Governor, federal agencies such as the U.S. Department of Agriculture, and other state agencies such as the Department of Public Defense in order to provide the public with timely and accurate information regarding the outbreak.

   Finally, the Act provides for the compensation of owners for the loss of animals condemned and destroyed under its provisions in the same manner as owners are compensated under Code Section 163.15. That section authorizes the Executive Council to compensate owners for losses resulting from the condemnation and destruction of animals infected with other contagious or infectious diseases. The Act provides that upon the request of the Executive Council, the department is required to develop and submit a plan for the compensation of owners of property other than animals who inadvertently incur a loss as a result of the department’s regulation of activities in a quarantined area. The Act provides for the approval of the plan and allows implementation retroactively, but not earlier than May 1, 2001, which is the Act’s effective date.

RELATED LEGISLATION

SENATE FILE 84 -- Purple Loosestrife -- Ban on Import, Sale, or Distribution (Complete summary under NATURAL RESOURCES & OUTDOOR RECREATION)

   This Act prohibits the importation, sale or distribution of purple loosestrife (lythrum virgatum).

SENATE FILE 267 -- Supplemental Appropriations and Reductions (Complete summary under APPROPRIATIONS.)

   This Act relates to state budgetary matters by making reductions to appropriations made for FY 2000-2001 from the General Fund of the State and includes replacement of a State General Fund appropriation for soil conservation with an appropriation for this purpose made from the Environment First Fund.

HOUSE FILE 286 -- Cooperative Associations -- Members, Nonmembers, and Memberships -- Fictitious Names (Complete summary under BUSINESS, BANKING & INSURANCE.)

   This Act amends a number of Code provisions providing for business associations, including cooperative associations. The Act provides for nonmembers, the use of fictitious names, and subscriptions for common stock or membership.

HOUSE FILE 324 -- Transportation -- Miscellaneous Provisions (Complete summary under TRANSPORTATION.)

   This Act makes several changes relating to the transportation of tracked implements of husbandry.

HOUSE FILE 549 -- Agricultural Liens (Complete summary under BUSINESS, BANKING & INSURANCE.)

   This Act amends provisions in Code Chapters 579A and 579B providing for agricultural liens upon commodities produced under contract at an agricultural operation, including a feedlot as specifically provided in Code Chapter 579A, by eliminating requirements for perfecting security interests that are inconsistent with the requirements contained in revised Article 9 of the Uniform Commercial Code under Code Chapter 554, and providing for the super priority status of liens perfected under those chapters.

HOUSE FILE 716 -- Ethanol Blended Gasoline -- Related Taxes (Complete summary under TAXATION.)

   This Act promotes the production and consumption of ethanol. The Act provides for the refund of investment tax credits provided to cooperatives producing ethanol. It provides an income tax credit for retail dealers of gasoline. The tax credit is available to a dealer if 60 percent of all gasoline sold at a service station is ethanol blended gasoline. The tax credit equals 2.5 cents for each gallon that is more than the 60 percent threshold requirement. The Act also amends provisions providing an excise tax for motor fuel by adjusting the general rate and the rate for ethanol blended motor fuel based on the consumption of ethanol blended motor fuel.

HOUSE FILE 723 -- Sales and Use Taxes on Irrigation Equipment (Complete summary under TAXATION.)

   This Act exempts irrigation equipment from sales and use taxes when purchased by a contractor or farmer if the equipment will be primarily used in agricultural operations. The Act takes effect May 18, 2001, and applies retroactively to April 1, 1995. Because of the retroactive application, any claims for refunds of taxes paid are limited to $25,000 in the aggregate.

HOUSE FILE 725 -- Appropriations -- Agriculture and Natural Resources (Complete summary under APPROPRIATIONS.)

   This Act relates to agriculture and natural resources by making appropriations to support related entities. The Act also makes statutory changes. The Act appropriates moneys from the Brucellosis and Tuberculosis Fund to the Department of Agriculture and Land Stewardship to be used as is necessary to implement security measures for outbreaks of foreign agricultural animal diseases such as foot and mouth disease. The Act amends Code Chapter 169, regulating of livestock brands by the department, including by providing a $25 fee for recording and renewing a brand, establishing a Branding Administration Fund for use by the department in administering and enforcing the Code chapter, and providing for the deposit of the fees into the fund.

HOUSE FILE 755 -- Miscellaneous Appropriations, Reductions, and Other Provisions (Complete summary under APPROPRIATIONS.)

   Division II of this Act eliminates the $500 standing appropriation for the poultry show exhibition reimbursement beginning with FY 2001-2002.

© 1998 Cornell College and League of Women Voters of Iowa

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