Agriculture Legislation

SENATE FILE 335 - Sales and Use Taxes on Livestock — Feed, Feed Supplements, and Additives for Farm Deer and Bison

SENATE FILE 503 - Open Feedlots

SENATE FILE 2210 - Interests in Agricultural Land — Qualified Enterprises

SENATE FILE 2212 - Secured Transactions — Landlord Liens

SENATE FILE 2268 - Regulation, Protection, and Disposition of Animals

SENATE FILE 2272 - Acquisition or Holding of Agricultural Land — Permanent Residents

SENATE FILE 2293 - Animal Feeding Operations and Environmental Regulation

SENATE FILE 2309 - Regulation of Beef and Pork Processors

HOUSE FILE 2492 - Farm Aid Associations — Termination or Conversion to Nonprofit Corporations

HOUSE FILE 2510 - Movement of Dairy Cattle From Livestock Markets

HOUSE FILE 2514 - Eradication of Animals With Contagious Diseases — Owner Indemnification

HOUSE FILE 2530 - Pseudorabies Control

HOUSE FILE 2617 - Regulation of Milk and Milk Products

HOUSE FILE 2620 - Farmers Markets

Related Legislation

SENATE FILE 437 - Snowmobiles and All-Terrain Vehicles — Titling, Registration, and Use

SENATE FILE 2051 - State Interagency Missouri River Authority

SENATE FILE 2057 - Dr. Norman E. Borlaug World Food Prize Day

SENATE FILE 2084 - Farm Implement, Motorcycle, and All-Terrain Vehicle Franchises or Dealerships

SENATE FILE 2160 - Dry Fire Hydrant and Rural Water Supply Education and Demonstration Project

SENATE FILE 2207 - Conservation Easements

SENATE FILE 2275 - Substantive Code Corrections

SENATE FILE 2304 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions

SENATE FILE 2316 - Sale of Iowa State University of Science and Technology Dairy Research Farm — Use of Proceeds

SENATE FILE 2325 - State Agency Regulatory Functions — Miscellaneous Reorganizations, Transfers, and Revisions

HOUSE FILE 2584 - Property Taxation — Vineyard Real Estate and Buildings

HOUSE FILE 2623 - Compensation for Public Employees and Additional Provisions

HOUSE FILE 2625 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions — Fiscal Year 2001-2002 — SECOND EXTRAORDINARY SESSION

HOUSE FILE 2627 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions — 2002-2003 and Prior Fiscal Years — SECOND EXTRAORDINARY SESSION

SENATE FILE 335 - Sales and Use Taxes on Livestock — Feed, Feed Supplements, and Additives for Farm Deer and Bison Full text of Bill
By Committee on Agriculture.

Code Chapter 422, Division IV, provides for retail sales tax and exemptions. Code Section 422.45 contains exemptions for items related to livestock production (e.g., the sale of equipment and machinery or replacement parts for equipment or machinery associated with livestock production, and the sale of bedding materials). This Act amends the definition of "livestock" contained in Code Section 422.42 to include farm deer and bison, as well as ostriches, rheas and emus (already considered livestock under Code Section 4.1). "Farm deer" in several Code sections, including Code Section 189A.2, means an animal belonging to the cervidae family and classified as part of the dama species of the dama genus, commonly referred to as fallow deer; part of the elaphus species of the cervus genus, commonly referred to as red deer or elk; or part of the nippon species of the cervus genus, commonly referred to as sika. However, a farm deer does not include any unmarked free-ranging elk. In addition, the Act exempts from the sales and use taxes the sale of feed to be used for consumption by farm deer and bison. The Act also exempts sales of feed supplements and additives used for the same purpose.

The Act provides that refunds of taxes, interest or penalties that arise from claims resulting from the Act’s enactment for sales occurring between April 1, 1995, and March 6, 2002, are limited to $50,000 and may only be paid based on claims filed prior to October 1, 2002.

The Act takes effect March 6, 2002, and is retroactively applicable to April 1, 1995.

SENATE FILE 503 - Open Feedlots Full text of Bill
By Committee on Natural Resources and Environment.

This Act provides for the regulation of open feedlots by the Department of Natural Resources (DNR), and establishes standards of construction for pollution control structures. Specifically, the Act amends Code Chapter 455B to establish design standards for the construction of settled open feedlot effluent basins. The Act defines "open feedlot" in a manner similar to that defined by the DNR under 567 IAC, Chapter 65, to mean an unroofed or partially roofed animal feeding operation if crop, vegetation or forage growth or residue cover is not maintained as part of the animal feeding operation during the period that animals are confined there. The Act defines a "settled open feedlot effluent basin" as an impoundment that collects and stores settled open feedlot effluent (a combination of manure, precipitation-induced runoff, or other runoff originating from an open feedlot after its settleable solids have been removed).

The Act provides that if the DNR requires that a settled open feedlot effluent basin be constructed according to design standards, regardless of whether the DNR requires the owner to be issued a construction permit, any design standards for the basin must be established by administrative rule that exclusively accounts for special design characteristics of open feedlots and related basins, including but not limited to the dilute composition of settled open feedlot effluent as collected and stored in the basins.

The Act also directs the Code Editor to transfer provisions of the Act to any new Code chapter required to conform with S.F. 2293, which transfers provisions regulating animal feeding operations to a new Code chapter.

SENATE FILE 2210 - Interests in Agricultural Land — Qualified Enterprises Full text of Bill
By Committee on Agriculture.

This Act provides that a qualified entity involved in baby chick and fertilized egg production may hold agricultural land for purposes of farming. Code Chapter 9H generally prohibits corporate entities from holding an interest in agricultural land used in farming. Code Chapter 567 also prohibits nonalien residents, foreign businesses, and foreign governments from holding such an interest.

The Act creates new Code Chapter 10D. It provides that notwithstanding any other provision of law (including provisions in Code Chapters 9H and 567), a qualified enterprise may hold an interest in agricultural land for a designated or incidental use. According to the Act, a qualified enterprise is a domestic or foreign corporation, a nonprofit corporation, a limited liability company, a cooperative association, or a foreign business. Code Section 567.1 defines a foreign business as a corporation incorporated under the laws of a foreign country, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens.

The Act provides that a qualified enterprise must comply with certain requirements in order to hold agricultural land in this state. It must file a notice with the Office of Secretary of State by June 30, 2002, declaring an intention to acquire or hold agricultural land under the Code chapter. It can hold a total of not more than 1,280 acres of agricultural land, but not more than 800 acres in any one county. In addition, it can only hold the agricultural land for a designated or incidental use. A designated use must relate to producing baby chicks or fertile chicken eggs for sale or resale as breeding stock or breeding stock progeny; research related to the genetic characteristics of chickens; or the production and sale of products using biotechnological systems or techniques for use in the manufacture of animal vaccine, pharmaceutical, or nutriceutical products. An incidental use must be for a purpose related to the sale of a surplus commodity that is produced or kept on the agricultural land, or the sale of any by-product that is produced as part of a designated use.

The Act provides that the Attorney General or a county attorney is responsible for enforcing the provisions of the new Code chapter. A person violating the provisions of Code Chapter 10D is subject to a civil penalty of not more than $25,000 and must be divested of any land held in violation of the new Code chapter. Each day that a violation exists constitutes a separate violation. The person must pay all court costs and fees. The Act provides that a court may grant an injunction in order to restrain violations of the Code chapter’s provisions.

The Act also amends Code Chapter 10B, which provides for reporting of agricultural land holdings. The Act provides that a person required to file a report pursuant to Code Chapter 10D is not required to register with the Office of Secretary of State under Code Chapter 567.

The Act takes effect March 28, 2002.

SENATE FILE 2212 - Secured Transactions — Landlord Liens Full Text of Bill
By Committee on Commerce.

This Act amends provisions in Code Chapter 570 providing for a landlord’s lien. Code Chapter 570 protects the credit interests of landlords who lease their premises to farmers, by providing landlords a lien for the rent upon crops grown on the leased land and on other personal property of the tenant.

In 2000, the General Assembly enacted, effective July 1, 2001, H.F. 2513 (2000 Iowa Acts, Chapter 1149), adopting revised Article 9 of the Uniform Commercial Code as proposed by the American Law Institute and the National Conference of Commissioners on Uniform State Laws, and conforming amendments to a number of articles within Code Chapter 554 as well as other Code chapters providing for security interests and liens, including Code Chapter 570. Under Code Sections 554.9308, 554.9310, and 554.9501, in order to perfect a security interest or agricultural lien, the secured party must file a financing statement in the Office of the Secretary of State. According to Code Section 554.9515, the financing statement is effective for five years unless the secured party files a continuation statement. Code Section 554.9513 provides that a debtor may require that the secured party who had a perfected position file a termination statement with the Office of Secretary of State in order to alert other creditors that the secured party no longer has a perfected interest in the collateral.

Prior to the revision of Article 9, liens created in statutes outside Code Chapter 554 were not affected by its provisions. These liens include types of statutory liens involving agricultural producers, such as the landlord’s lien created in Code Chapter 570. Revised Article 9 provides filing requirements for perfecting these statutory liens referred to under revised Article 9 as "agricultural liens" and controls issues relating to priority of conflicting security interests and agricultural liens. In 2000, H.F. 2513 amended Code Chapter 570 to require a landlord to file a financing statement in order to perfect a lien in farm products, e.g., crops. House File 2513 provided for the contents of the financing statement, and provided that if perfected, it would enjoy priority over conflicting security interests or liens even if they were perfected earlier.

The Act amends Code Section 570.1, which in part provides for the filing of financing statements. The Act provides that, notwithstanding Code Section 554.9515, a financing statement continues to be effective until a termination statement is filed. Current Code Section 570.2 provides that the lien continues for one year after a year’s rent falls due, but in no case more than six months after the term of the lease expires.

SENATE FILE 2268 - Regulation, Protection, and Disposition of Animals Full Text of Bill
By Committee on Judiciary.

This Act amends a number of Code chapters providing for the treatment and disposition of animals. The Act amends provisions in Code Chapter 351, providing for the regulation of stray dogs, and Code Chapter 717B, providing for offenses involving nonlivestock. The Act creates a new Code Chapter 717D, prohibiting certain animal contests.

The Act amends Code Section 351.37, providing that a dog may be apprehended and impounded if the dog is running at large and there is no proof that the dog has a valid rabies vaccination. The Code section provides that once a dog has been impounded, a local board of health or law enforcement official is required to send a notice to the dog’s owner within two days providing that the owner may redeem the dog before the local board of health or law enforcement official provides for its disposition, including destruction. The owner must redeem the dog within seven days from the delivery of the notice. The Act provides that the notice must be sent within two days after the dog has been impounded, and that notice is delivered when the local board of health or law enforcement official mails the notice. According to the Act, delivery of the notice is conditioned on the board or official being able to reasonably determine the owner’s name and current address by accessing a tag or other device that is on or a part of the dog.

Code Chapter 717B prohibits a person from abusing, neglecting or torturing animals (other than livestock which are subject to Code Chapter 717, or wild animals, including game), with certain exceptions, and imposes criminal penalties upon violators. Abuse occurs when a person other than the animal’s owner acts to injure or destroy the animal. Neglect occurs when the owner injures, destroys, or otherwise fails to care properly for an animal. Torture occurs when any person inflicts upon an animal severe physical pain with a depraved or sadistic intent to cause prolonged suffering or death. The Code chapter authorizes a local authority (i.e., a county or city) to rescue an animal in cases of neglect. The rescue must be performed by a peace officer after consulting with a licensed veterinarian. The local authority must post a notice of the rescue at the rescue site. The Code chapter also provides for the maintenance of rescued animals. The disposition of the animals must be determined by a court in a civil proceeding on an expedited basis. The Code chapter provides for the payment by the owner of the costs of maintaining the animal by the local authority. It also provides for the disposition of the animal, including by sale or humane destruction.

The Act makes a number of changes to Code Section 717B.4, providing for the disposition of neglected animals, and Code Section 717B.5, providing for the rescue of those animals. Many of the changes are made to enhance the readability of the sections. There are also a number of substantive changes. The Act provides that the local authority may rescue and a court may provide for the disposition of a "threatened animal," which is defined to mean an animal that is abused, neglected or tortured. The Act provides that both the owner of the animal and a person who is not the owner, but who maintains the animal, are responsible parties in a dispositional proceeding. Thus, a nonowner may be liable for the maintenance of the animal under the custody or supervision of a local authority. The Act provides that the responsible party is liable for dispositional expenses, which include expenses incurred by a local authority in rescuing an animal, maintaining the animal until the conclusion of a dispositional proceeding, and disposing of the animal. The Act also reduces the time that the responsible party may be granted a continuance from 40 to 30 days. It provides that the local authority may provide notice of a rescue by mail or personal service. The Act also requires that following a rescue, a local authority must petition a court for disposition of the animal within 10 days of the rescue.

The Act creates a new Code Chapter 717D, which prohibits activities associated with a contest event which is a function organized for the entertainment or profit of spectators where an animal is injured, tormented or killed. The event must involve a contest animal, which is defined to mean a bull involved in bullfighting or bull baiting, a bear involved in bear baiting, a chicken involved in cock fighting, or a dog involved in dog fighting.

The Act prohibits a person from owning or operating an establishment located in this state in which a contest event occurs or is to occur; acting as a promoter of a contest event, regardless of whether the contest event occurs in this state or another state; acting as a trainer of a contest animal engaged or to be engaged in a contest event conducted in this state or another state; acting as a transporter moving a contest animal in this state; or acting as a spectator of a contest event conducted in this state, regardless of whether the person paid admission to witness the contest event.

The Act provides a number of exceptions that reiterate the Act only applies to contest events, and also does not apply to an action to be carried out under authority of state law.

The Act provides that a person who violates a provision of Code Chapter 717D is guilty of a serious misdemeanor. In addition, a local authority may confiscate a contest animal that is trained with a contest device or is part of a contest event. The contest animal may be rescued and disposed of as neglected livestock or other animal pursuant to Code Section 717.5 (applying to livestock) or 717B.4 (applying to animals other than livestock). The Act provides that if a contest animal is not rescued and disposed of pursuant to Code Section 717.5 or 717B.4, it shall be forfeited to the state and subject to disposition as ordered by the court. In addition, the Act provides that a court must order the owner of the contest animal to pay an amount that shall not be more than the expenses incurred in maintaining or disposing of the contest animal. The court may also order that the person pay reasonable attorney fees and expenses related to the investigation of the case to be taxed as other court costs. If more than one person has a divisible interest in the contest animal, the amount required to be paid must be prorated based on the percentage of interest in the contest animal owned by each person. The moneys are to be paid to the local authority incurring the expense.

The Act repeals Code Section 717B.7, which also prohibits a person from arranging, promoting or staging an exhibition at which an animal is tormented.

SENATE FILE 2272 - Acquisition or Holding of Agricultural Land — Permanent Residents Full Text of Bill
By Committee on Judiciary.

This Act amends Code Chapter 567, which in part prohibits a nonresident alien, foreign business, or foreign government from acquiring or holding agricultural land in this state. The prohibition is provided in Code Section 567.3.

Code Section 567.1 provides a number of definitions for the chapter. "Agricultural land" is defined to mean land suitable for use in farming. The term "farming" includes cultivating the land, raising livestock, and producing timber and nursery products. The term "nonresident alien" is defined to mean an individual who is not a citizen of the United States and has not been classified as a permanent resident alien by the U. S. Immigration and Naturalization Service (INS).

The Act addresses a specific provision that refers to the status of permanent resident aliens. The Act provides that the term "nonresident alien" does not include an individual who is lawfully admitted for permanent residence by the INS, regardless of whether the individual’s lawful permanent resident status is conditional.

Code of Federal Regulations, Title 8, § 216.1, provides that within 90 days immediately preceding the second anniversary of the date on which an alien obtained permanent residence, the alien must file a petition to remove conditions on residence with the INS. Section 216.3 of Title 8 provides that during the two-year conditional period, the INS may terminate the alien’s conditional permanent resident status upon cause. Section 216.4 of Title 8 provides for the filing of a joint petition by spouses that may include dependent children.

Code Section 567.6 provides that a person who acquires an interest in agricultural land, and whose resident status changes, must divest the interest within two years.

SENATE FILE 2293 - Animal Feeding Operations and Environmental Regulation Full Text of Bill
By Committee on Agriculture.

This Act amends provisions in several Code chapters, and principally Code Chapter 455B, regulating animal feeding operations by the Department of Natural Resources (DNR), including confinement feeding operations, originally enacted in 1995 by H.F. 519 (1995 Iowa Acts, Chapter 195) and amended in 1998 by H.F. 2494 (1998 Iowa Acts, Chapter 1209). Provisions relating to animal feeding operation statutes are divided in three places in Code Chapter 455B: Division I, which provides for departmental administration and enforcement; Division II, which regulates air quality regulations (e.g., separation distance requirements); and Division III, which regulates water quality (e.g., construction permit requirements, manure management plan requirements, and manure storage and application requirements). This Act also amends Code Chapter 455J, which provides for a Manure Storage Indemnity Fund established in order to reimburse expenses incurred by a county or, in some cases, the DNR, for cleaning up the site.

CONFINEMENT FEEDING OPERATIONS

The Act generally regulates confinement feeding operations and the application of manure originating from confinement feeding operations. The Act specifically regulates confinement feeding operation structures, including confinement feeding operation buildings; manure storage structures, including formed (e.g., concrete) and unformed (i.e., earthen) structures; and egg washwater storage structures.

ANIMAL UNITS

Regulations affecting confinement feeding operations are often based on size. Prior to the enactment of this Act, the size of a confinement feeding operation was determined generally according to its animal weight capacity. The Act uses animal unit capacity in lieu of animal weight capacity and generally converts animal weight capacity to animal unit capacity throughout the affected Code sections. An animal unit is based on the species of animals being regulated. Slaughter or feeder cattle equal 1 animal unit, immature dairy cattle equal 1 animal unit, mature dairy cattle equal 1.4 animal units, butcher or breeding swine weighing more than 55 pounds equal 0.4 animal unit, swine weighing between 15 and 55 pounds equal 0.1 animal unit, sheep or lambs equal 0.1 animal unit, horses equal 2 animal units, turkeys equal 0.018 animal unit, and broiler or layer chickens equal 0.01 animal unit. The Act continues to exempt small animal feeding operations from many requirements of Code Chapter 455B. Prior to the enactment of this Act, a small animal feeding operation had an animal weight capacity of 200,000 pounds or less for animals other than cattle operations and 400,000 pounds or less for cattle operations. The Act provides that a small animal feeding operation has 500 animal units or less, regardless of species.

FEES AND APPROPRIATIONS

Limitation on County Fees. The Act expressly prohibits a county from imposing fees for the regulation of animal feeding operations under Code Chapter 455B.

Animal Agriculture Compliance Fund. The Act amends Code Chapter 455B, Division I, to establish a funding source for the administration and enforcement of provisions regulating animal feeding operations. The Act establishes a variable annual compliance fee (that cannot exceed 15 cents per animal unit), paid annually by owners of confinement feeding operations required to submit updated manure management plans as required in the Act. If the person submitting a manure management plan update is a contract producer, the contractor is assessed the annual compliance fee. The fee revenue is deposited into the Assessment Account of an Animal Agriculture Compliance Fund as established in the Act. The account is capped at $1 million. The department must decrease the compliance fee to meet the $1 million cap before the beginning of the next fiscal year. However, a person is not required to submit a manure management plan update earlier than March 1, 2003.

In addition to the annual compliance fee, the Act also establishes a number of one-time filing fees. A construction permit application filing fee of $500 is established, which includes an application fee and an original manure management plan fee. For owners of confinement feeding operations who are not required to apply for a construction permit, but must submit an original manure management plan, the owner must pay a $250 fee. These fees are deposited into the General Account of the Animal Agriculture Compliance Fund.

Manure Storage Indemnity Fund. The Act restructures the method of calculating the amount of fees required to be paid into the Manure Storage Indemnity Fund established in Code Chapter 455J. This fund is made up of one-time fees imposed on owners of confinement feeding operations that support the cleanup of abandoned sites. The Code chapter provides for a progressive rate based on the size of the confinement feeding operation. A person required to apply for a construction permit or submit a manure management plan is required to submit a fee to be paid into the fund. The Act generally converts animal weight capacity to animal unit capacity. The Act first provides for confinement feeding operations required to be constructed pursuant to a permit. For a confinement feeding operation with an animal unit capacity of less than 1,000 animal units, the rate is 10 cents for animals other than poultry and 4 cents for poultry; for a confinement feeding operation with an animal unit capacity of 1,000 or more animal units but less than 3,000 animal units, the rate is 15 cents for animals other than poultry and 6 cents for poultry; and for a confinement feeding operation with an animal unit capacity of 3,000 or more animal units, the rate is 20 cents for animals other than poultry and 8 cents for poultry. For a person required to submit a manure management plan but not required to apply for a construction permit, the fee is 10 cents per animal unit.

Transfer. Since the Act provides that the annual compliance fees required to be deposited into the new Animal Agriculture Compliance Fund are effective on and after March 1, 2003, the Act authorizes the DNR to temporarily transfer moneys from the Manure Storage Indemnity Fund into the General Account of the Animal Agriculture Compliance Fund. The DNR must return the amount transferred according to a schedule established by the department, upon collection of all the new fees established in the Act. The DNR may return moneys from the assessment account if at any time moneys are not sufficiently available to make the return from the general account.

AIR QUALITY REGULATIONS

Separation Distance Requirements. Prior to enactment of this Act, various separation distance requirements were established between confinement feeding operation structures and homes, schools, businesses, churches, public use areas (portions of parks and cemeteries), and public thoroughfares. The law also provided various separation distance requirements between those structures and homes, schools, businesses, and churches located within the corporate limits of a city. Beginning March 1, 2003, the Act increases separation distances by 500 feet for new construction of confinement feeding operation structures and the expansion of those structures.

Prior to the enactment of this Act, confinement feeding operations could expand by constructing new structures subject to a number of factors, including the separation distance requirements according to animal weight capacity. Under this Act, the expansion of confinement feeding operations constructed prior to the enactment of the Act is still based on those factors according to animal weight capacities. The Act provides the same type of exceptions for expansion of confinement feeding operations constructed on and after March 1, 2003, based on animal unit capacity. However, the Act also provides that a confinement feeding operation may be expanded based on separation distances that applied when the confinement feeding operation was constructed rather than increased separation distance requirements established after the confinement feeding operation was constructed.

Several exceptions that applied to the separation distance requirements have been repealed. The Act eliminates an exception for a confinement feeding operation that stores manure exclusively on a dry matter basis (usually applicable to poultry operations). It also eliminates an exception for a confinement feeding operation structure constructed in proximity to a public thoroughfare that is shielded by a permanent vegetation barrier.

Air Quality Monitoring. The Act requires the DNR to conduct a comprehensive field study to monitor the level of airborne pollutants (defined as hydrogen sulfide, ammonia, or odor) emitted from animal feeding operations. The Act provides that plans and programs shall not provide for the enforcement of an air quality standard prior to December 1, 2004. Any air quality standard established by the DNR must be based on, and enforced at, distances measured from a confinement feeding operation structure to a separated location defined as a residence, school, church, business, or public use area (but not public thoroughfare). In providing for enforcement, the DNR must take all initial measurements at the separated location. If the DNR determines that a violation of a standard exists, it may conduct an investigation to trace the source of the airborne pollutant.

PERMIT AND WATER QUALITY REQUIREMENTS

Electronic Filing. The Act requires the DNR to adopt and promulgate forms for construction permits and manure management plans that must be made available on the Internet. The Act authorizes the DNR to adopt procedures for the electronic submission and approval of documents, such as permits, manure management plans, notices, and certifications.

Construction Permit Requirements. The Act decreases the threshold size of a confinement feeding operation required to be issued a construction permit. Prior to the enactment of this Act, the DNR was authorized to establish the threshold requirement. Under the Act, the construction of an unformed manure storage structure requires a permit, as does any confinement feeding operation of at least 1,000 animal units. As an example, prior to the enactment of this Act, a construction permit was required for a finishing swine operation with an animal weight capacity of 625,000 pounds (4,167 animals). Under the Act, a confinement feeding operation with 2,500 finishing swine is required to be constructed under a permit. A small animal feeding operation continues to be largely exempt from permit requirements. However, the Act now requires a small animal feeding operation to obtain a construction permit if an unformed manure storage structure is being constructed.

According to the Act, the DNR’s decision to approve or disapprove an application for a construction permit must be based on whether the application is submitted according to procedures required by the DNR and the application meets standards established by the DNR. Under certain conditions, an applicant must submit a statement by a professional engineer certifying that the construction of a manure storage structure complies with the requirements of state law. The statement is required if the confinement feeding operation structure is an unformed manure storage structure. It is also required for the construction of three or more confinement feeding operation structures that disrupt drainage if the confinement feeding operation meets threshold requirements (3,000 animal units for animals other than swine maintained as part of a swine farrowing and gestating operation or farrow-to-finish operation or cattle maintained as part of a cattle operation; 1,250 animal units for swine maintained as part of a swine farrowing and gestating operation; 2,750 animal units for swine maintained as part of a farrow-to-finish operation; and 4,000 animal units for cattle maintained as part of a cattle operation). The DNR must approve the lowering of the groundwater table for an unformed manure storage structure as part of a construction permit application.

Matrix. The Act establishes a new procedure for approving or disapproving applications for construction permits applicable on and after March 1, 2003. The new procedure is based on the scoring of a master matrix. The purpose of the master matrix is to provide a comprehensive assessment mechanism in order to produce a statistically verifiable basis for determining whether to approve or disapprove an application. The master matrix must include criteria valuing environmental and community impacts for use by county boards of supervisors and the DNR. The master matrix must be used to establish conditions for the construction of a confinement feeding operation structure and for the implementation of manure management practices, which conditions must be included in the approval of the construction permit or the original manure management plan. The Act specifically requires the master matrix to account for "critical public areas," which are parks, preserves, or recreation areas owned or managed by the federal, state or local government, if the land has a unique scenic, cultural, archeological, scientific, or historic significance or has a rare or valuable ecological system. The master matrix must also take into consideration currently defined high-quality water resources and protected water area systems.

The Act establishes a 10-member technical advisory committee to develop the master matrix, which is to be adopted by rule by March 1, 2003. From April 29, 2002, until March 1, 2003, the DNR must use an interim matrix that is specified in the Act in order to approve or disapprove applications for construction permits. The application must achieve a score of 100 points. Points are awarded based on the design and location of a confinement feeding operation structure as well as manure management practices.

A county board of supervisors must adopt a construction evaluation resolution in order to use a master matrix beginning March 1, 2003. Regardless of the use of a master matrix, a county board of supervisors may provide comments to the DNR regarding a construction permit application in the same manner as it did prior to the enactment of the Act. If the board submits a resolution, the board may evaluate a construction permit application and submit an adopted recommendation to the DNR to approve or disapprove the application. However, the board is prohibited from making a recommendation regarding the construction of a confinement feeding operation structure that is part of a confinement feeding operation constructed prior to April 1, 2002, and which has an animal unit capacity of 1,666 animal units or less (i.e., 4,165 finishing hogs or 4,165 sows, 1,666 beef cattle, or 166,600 chickens).

In completing the master matrix, a county board of supervisors must score all criteria according to the terms and conditions relating to construction as specified in the application or commitments for manure management that are to be incorporated into a manure management plan. The DNR must receive the county’s comments or evaluation within 30 days following the applicant’s delivery of the application to the department. Regardless of whether the DNR receives comments or an evaluation by a board, it must approve or disapprove the application within 60 days following the applicant’s delivery of the application. The applicant may request or the DNR may require a continuance. The DNR must approve an application if the board, which has filed a construction evaluation resolution, submits an adopted recommendation to approve the application, which may be based on a satisfactory rating produced by the master matrix, and the DNR determines that the application meets the requirements of Code Chapter 455B. The DNR must disapprove an application that does not satisfy the requirements of Code Chapter 455B regardless of the adopted recommendation from the board or any result produced by using the master matrix. If the board submits an adopted recommendation to disapprove the application that is based on a rating produced by the master matrix, the DNR must first determine if the application meets the requirements of Code Chapter 455B. If the application meets the requirements of the chapter but is disapproved by the board, the DNR must conduct an independent evaluation of the application using the master matrix. The DNR must approve the application if it achieves a satisfactory rating according to the department’s evaluation. The DNR must disapprove the application if it produces an unsatisfactory rating regardless of whether the application satisfies the requirements of Code Chapter 455B. If the board submits only comments and not a construction evaluation resolution, the DNR must approve the application if it meets the requirements of Code Chapter 455B. Both the applicant and the board may contest the department’s decision to the Environmental Protection Commission. The applicant may still contest the decision as a contested case proceeding before an administrative law judge.

Construction Design Standards — Formed Manure Storage Structures. The Act requires that beginning March 1, 2003, a person responsible for constructing a formed manure storage structure not constructed pursuant to a construction permit must state that the formed manure storage structure will be constructed according to the requirements of state law. The DNR must notify the owner that the construction design statement has been filed. The DNR may request information from the person submitting the construction design statement if the department determines it is incorrect or incomplete.

The Act requires the DNR to adopt rules establishing construction design standards for formed manure storage structures other than small animal feeding operations. The standards must be based, to every extent possible, on uniform standards, such as available standards promulgated by the American Society for Testing and Materials. The DNR may require that all or any part of the formed manure storage structure be constructed of concrete. The concrete standards for manure storage structures storing manure on a dry matter basis become effective upon the effective date of the new rules.

Karst Terrain. The Act prohibits a person from constructing an unformed manure storage structure on karst terrain or an area that drains into a known sinkhole. A person may only construct a formed manure storage structure on karst terrain, or an area that drains into a known sinkhole, if the structure meets upgraded construction design standards necessary to ensure that the structure does not pollute groundwater sources.

Installation of Monitoring Wells. The Act authorizes the DNR to require that the owner of a confinement feeding operation install and operate monitoring wells as part of an unformed manure storage structure.

Manure Management Plans. Prior law required an owner of a confinement feeding operation, or a person taking manure from an out-of-state confinement feeding operation for application on land in this state, to submit a manure management plan to the DNR for approval. This Act requires that the owner of a confinement feeding operation submit an updated manure management plan to the DNR on an annual basis. However, a person is not required to submit an updated manure management plan earlier than March 1, 2003.

The Act requires the DNR to develop a phosphorus index by rule. Phosphorus rules become effective on July 1, 2003. The index is to be used to determine application rates, based on the number of pounds of phosphorus that may be applied per acre and application practices, as stated in the manure management plan. According to the Act, the index must be based on the U.S. Department of Agriculture Natural Resources Conservation Service technical guide for Iowa. The Act requires the DNR to develop a state comprehensive nutrient management strategy. The Act establishes a staggered system for implementation of the phosphorus rules. All persons must include a phosphorus index within a manure management plan by July 1, 2005. The Act also requires the DNR to conduct a study of the phosphorus contamination in waters of the state.

Separation Distance Requirements. According to the Act, beginning March 1, 2003, a confinement feeding operation structure cannot be constructed closer than 500 feet from the surface intake of an agricultural drainage well (with departmental discretion to increase the separation distance requirements to 2,000 feet) and closer than 1,000 feet from a wellhead, cistern of an agricultural drainage well, or known sinkhole (with departmental discretion to increase the separation distance requirements to 2,000 feet). Beginning March 1, 2003, a confinement feeding operation structure cannot be constructed closer than 2,500 feet from a federal or state designated wetland, 1,000 feet from a major water source, or 500 feet from a water source other than a major water source. A water source is defined as a lake, river, reservoir, creek, stream, ditch, or other body of water or channel having definite banks and a bed with water flow, except lakes or ponds without outlet to which only one landowner is riparian. However, these separation distance requirements do not apply to farm ponds or privately owned lakes, or to a confinement feeding operation structure other than a manure storage structure or a manure storage structure constructed with a secondary containment barrier.

The Act prohibits a confinement feeding operation structure from being constructed on land that is part of a 100-year floodplain. The DNR is required to develop by rule the location of each 100-year floodplain in the state. The Act provides that a person cannot be prohibited from constructing a confinement feeding operation on a 100-year floodplain unless designated by departmental rule. The Act provides special requirements until the effective date of the rules. A person cannot construct a confinement feeding operation structure on land containing alluvial soils unless the person satisfies certain conditions. If the person is not required to apply for a construction permit, the person must petition the DNR to determine whether the confinement feeding operation structure is located on a 100-year floodplain. If the person is required to apply for a construction permit, the person must identify that the land contains alluvial soils and the DNR must determine whether the land is located on a 100-year floodplain.

Beginning March 1, 2003, new separation distances apply to the application of manure in proximity to water sources. Prior to the enactment of this Act, Code Section 455B.204A prohibited the application of manure within 200 feet from a "designated area," which includes a known sinkhole, or a cistern, abandoned well, unplugged agricultural drainage well surface inlet, or drinking water well (but does not include a terrace tile inlet). The Act adds water source and designated protected wetland to this list. The Act retains an exception that allows a person to apply manure by incorporation within the 200-foot separation distance. The manure must be injected or incorporated on the same date as it is applied. The Act also retains an exception providing that manure may be applied within a 50-foot foot separation distance if an area of permanent vegetation is established. The Act provides that this includes filter strips and riparian forest buffers. The exception does not apply to an unplugged agricultural drainage well or surface intake to an unplugged agricultural drainage well. The Act authorizes the DNR to quadruple this land separation distance requirement on land located in proximity to a defined high-quality water resource as designated by departmental rule.

Restitution for Water Pollution. The Act creates a new Code Section 481A.151, providing that a person who is liable for pollution of state waters is also liable to pay restitution to the DNR for deposit into the State Fish and Game Protection Fund for injury to fish, wildlife, and other species injured by pollution. The DNR cannot duplicate damages collected under other applicable provisions of law and specifically provisions in Code Section 455B.392. The DNR is authorized to assess restitution amounts, including administrative costs to investigate pollution injuries pursuant to departmental rules. The rules must describe methods for investigation, methods of calculating values, and may establish liquidated damages for certain species within specified limits. Restitution amounts, except amounts for investigative costs, must be used to fund restoration or improvement of fisheries.

MISCELLANEOUS PROVISIONS

AACO Repealed. The Act repeals provisions establishing the Animal Agriculture Consulting Organization (AACO). The industry and government group was established in 1995 to consult with the DNR in establishing rules and implementing the law.

Technical Changes. The Act makes a number of technical changes necessary to enhance the readability of the provisions when codified. The Act changes the term "animal feeding operation structure" to "confinement feeding operation structure" when referring to buildings, manure storage structures, and egg washwater storage structures associated with confinement feeding operations. The Act also provides that the provisions of Code Chapter 455B affecting animal agriculture are to be transferred to a new Code chapter. The provisions are currently spread over several divisions of Code Chapter 455B and other Code chapters. The Act provides for the transfer and consolidation of provisions in other chapters providing for agricultural drainage wells.

Effective Dates. The Act was enacted on April 29, 2002, and generally provisions of the Act take effect on that date. However, a number of provisions take effect March 1, 2003, including Code Sections 455B.162 and 455B.163 (providing increased separation distance requirements between confinement feeding operation structures and residences, religious institutions, businesses, public use areas, and public thoroughfares); Code Section 455B.204 (providing increased separation distance requirements between confinement feeding operation structures and surface intakes of an agricultural drainage well, a wellhead, cistern or an agricultural drainage well, or known sinkhole, water source, and designated wetlands); Code Section 455B.204A (providing increased separation distance requirements for the application of manure and a designated area or high-quality water resource); Code Section 455B.200C (requiring construction design statements for formed manure storage structures); and Code Section 455B.200E (providing for construction permit application procedures, including county comments, and the use of the master matrix). In addition, concrete standards for manure storage structures storing manure exclusively on a dry matter basis take effect when new departmental rules are effective. A person is not required to file an updated manure management plan as required in Code Section 455B.203 earlier than March 1, 2003. Until March 1, 2003, the DNR must use an interim matrix and accept county comments in lieu of results produced from the master matrix. The DNR is authorized to adopt rules necessary to administer the Act.

Applicability Dates. Some provisions of this Act apply retroactively to require that a person obtain a construction permit and that the construction permit application be approved using an interim matrix under certain conditions. The application must be submitted to the DNR on or after April 1, 2002, but prior to April 29, 2002, regardless of whether the DNR has approved the application; a manure management plan must have been submitted to the DNR without a construction permit on or after April 1, 2002, but prior to April 29, 2002, regardless of whether the DNR has approved the plan; or construction of the confinement feeding operation structure did not begin on April 29, 2002, and the person would otherwise be required to submit a manure management plan prior to construction of the structure under the Act. In addition, for the Act to apply retroactively, the applicant must have incurred legal commitments based on the law as it existed on March 31, 2002. The evidence of a legal commitment must be submitted no later than 21 days after enactment.

Division XII of H.F. 2627 (see Appropriations) makes a number of corrective amendments to this Act.

SENATE FILE 2309 - Regulation of Beef and Pork Processors Full Text of Bill
By Iverson and Gronstal.

This Act amends Code Chapter 9H (Iowa’s Corporate Farming Law), which in part provides for the regulation of beef and pork processors that exercise control over cattle or swine operations. Specifically, the Act amends Code Section 9H.1, which provides a number of definitions. The Act amends the definition for the term "processor" and creates a new definition, "qualified processor." The Act also amends Code Section 9H.2, which prohibits a processor of beef or pork from owning, controlling or operating a feedlot in this state. It also provides, with some exceptions, that a processor cannot enter into a contract feeding arrangement with a swine producer in this state.

Code Section 9H.1 defines "feedlot" to include a confinement building as well as any other area where livestock are maintained. The Act eliminates the term "feedlot" and replaces it with "cattle operation" and "swine operation."

The Act strikes references to specific business organizations that have been added to Code Sections 9H.1 and 9H.2 (e.g., limited partnerships and limited liability companies), but retains the term "person," which, under Code Section 4.1, includes a variety of legal entities, including limited partnerships and limited liability companies. The Act strikes other language that is currently inapplicable because a deadline has expired and makes other changes in order to improve the organization of the provisions and readability of the language, including changes that conform to bill drafting style practices.

The Act also makes substantive changes to Code Sections 9H.1 and 9H.2. It amends the definition of "processor." Currently, Code Section 9H.1 provides that a "processor" means a person who prepares beef or pork products having a total annual wholesale value of $10 million or more. The Act increases that amount to $80 million. In addition, the Act provides that a person is considered to be a processor if the person holds a "threshold interest" in a business association that directly or indirectly controls the processing of beef or pork products. For processors of beef products the threshold interest begins at 10 percent. For processors of pork products the threshold interest begins at 10 percent interest for a business association that directly or indirectly controls the processing of pork products having a total annual wholesale value of at least $80 million, and decreases to 1 percent for a business association that directly or indirectly controls the processing of pork products having a total annual wholesale value of at least $260 million.

A person is also considered a processor if the person holds an executive position in a processor, or the person owes a fiduciary duty to the processor. A person who held such a position or owed such a duty is deemed to still hold the position or owe the duty for two years following the date that the person relinquishes the position or duty.

The Act amends Code Section 9H.2 to prohibit a processor from directly or indirectly owning a swine operation in this state, controlling or operating a swine operation in this state, or directly or indirectly financing a swine operation in this state. The term "finance" is defined to mean to directly or indirectly loan moneys or to guarantee or otherwise act as a surety. "Finance" or "control" does not include executing a contract for the purchase of swine by a processor, including but not limited to a contract that contains an unsecured ledger balance or other price risk-sharing arrangement. The Act provides that "finance" also does not include providing an unsecured open account or an unsecured loan within certain limits. The Act prohibits a processor from obtaining a benefit of production associated with feeding or otherwise maintaining swine, by directly or indirectly assuming a morbidity or mortality production risk if the swine are fed or otherwise maintained as part of a swine operation in the state or by a person who contracts for the care and feeding of swine in the state. The Act also prohibits a processor from directly or indirectly receiving the net revenue derived from a swine operation in this state or from a person who contracts for the care and feeding of swine in this state.

The Act creates a definition of a "qualified processor," which is a processor of pork products. Swine producers must hold at least a 60 percent interest, including a voting interest, and all retailers cannot hold an interest of more than 20 percent in the processor. In addition, not less than 25 percent of the swine slaughtered by the processor each day must be purchased through cash or spot market purchases. The Act provides a special exception for swine producers who hold a threshold interest in a qualified processor, as long as the swine producer’s threshold interest is not more than 10 percent and the swine producer is not engaged in processing.

The Act amends Code Section 9H.9 requiring processors to report information regarding the number of swine and cattle controlled by the processor. The Act requires that the information be based on the processor’s tax year. It requires the processor to report the total wholesale value of beef or pork products that have been processed during the preceding tax year. Finally, it provides that for a qualified processor, the report must include the total number of swine slaughtered each day and the total number of swine slaughtered each day that are purchased through cash or spot market purchases.

The Act provides that a processor that is in compliance with the law prior to January 1, 2002, and is in violation of the Act, has until June 30, 2004, to comply with the Act’s provisions. However, the Act prohibits a processor from taking an action on or after January 1, 2002, that would be in violation of its provisions. The Act provides that the two-year period that a person who holds an executive position in a processor or owes a processor a fiduciary duty and thus is deemed to be a processor does not apply if the person held the position or owed the duty on January 1, 2002, and relinquishes the position or duty on or before June 30, 2004.

Under current law, a processor who violates Code Section 9H.2 is subject to a civil penalty of not more than $25,000. The Act provides that each day a violation continues is considered a separate offense. The Act provides that if the Attorney General or a county attorney is the prevailing party in an action for a violation of Code Section 9H.2, the prevailing party shall be awarded court costs and reasonable attorney fees. The moneys are to be deposited in either the General Fund of the State or the general fund of the county, depending upon who prosecutes the case.

The Act provides a number of directions to the Code Editor in order to enhance the readability of the Code.

The Act takes effect April 9, 2002, and is retroactively applicable to January 1, 2002.

HOUSE FILE 2492 - Farm Aid Associations — Termination or Conversion to Nonprofit Corporations Full Text of Bill
By Committee on Commerce and Regulation.

This Act relates to farm aid associations organized under Code Chapter 176 as nonprofit corporations within each county affiliated with the Iowa Farm Bureau Federation for purposes of improving and advancing agriculture, domestic science, animal husbandry, and horticulture.

Each association’s articles of incorporation are filed and recorded with the county recorder in the county where the association is organized. The Act provides that a farm aid association is terminated on July 1, 2005, unless it elects to be organized under Code Chapter 504A, the Iowa Nonprofit Corporation Act, on or before June 30, 2005. An entity organizing under Code Chapter 504A must file articles of incorporation and other documents such as a biennial report with the Office of Secretary of State.

The Act provides a number of procedural requirements for such election. These requirements include the adoption of a resolution by the association and any amendments to its articles of incorporation required to conform to Code Chapter 504A, and the execution of an instrument of verification that certifies that the association is becoming a Code Chapter 504A corporation. The Act provides for the filing of the documents with the Office of Secretary of State. The Act requires the Office of Secretary of State, upon filing of the documents, to deliver a certificate of incorporation to the corporation in the same manner as other corporations filing under Code Chapter 504A.

The Act also provides that reorganization under Code Chapter 504A does not affect any right accrued or established, or any liability or penalty incurred, under the provisions of Code Chapter 176, prior to the filing of the necessary documents.

The Act makes a number of conforming amendments and repeals Code Chapter 176, all effective July 1, 2005.

HOUSE FILE 2510 - Movement of Dairy Cattle From Livestock Markets Full Text of Bill
By Committee on Agriculture.

In 2001, the 79th General Assembly enacted S.F. 209 (2000 Iowa Acts, Regular Session, Chapter 101) creating new Code Chapter 172E regulating the marketing of dairy cattle. Senate File 209 required 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 Act eliminates the requirement that the condition must be expressly stated in writing.

HOUSE FILE 2514 - Eradication of Animals With Contagious Diseases — Owner Indemnification Full Text of Bill
By Committee on Agriculture.

This Act amends Code Section 163.15, which provides for the indemnification of owners of livestock referred to as "animals" that are condemned and destroyed under the authority of the Department of Agriculture and Land Stewardship upon approval by the Executive Council. An animal is subject to condemnation and destruction if it is infected with a contagious disease (e.g., glanders, farcy, maladie du coit, anthrax, foot and mouth disease, scabies, hog cholera, swine dysentery, tuberculosis, brucellosis, vesicular exanthema, scrapie, rinderpest, or ovine foot rot). Moneys available for indemnification are paid from the General Fund of the State.

Code Section 163.15 establishes a method for indemnifying owners based on an appraisal by three qualified and disinterested persons appointed by the department and an animal’s owner. The Act makes changes in the language of that provision in order to enhance its readability.

The Act also establishes an alternative method of compensation. It authorizes the department to establish a formula for indemnifying owners. The formula is established by rule and becomes applicable when the plan of eradication is approved by the Executive Council. In addition, in order for the formula to be available, the Executive Council, upon recommendation by the Secretary of Agriculture, must determine that an animal population in this state is threatened with infection from an exceptionally contagious disease.

Under the Act, an owner is paid an indemnity amount based on the formula only if the owner elects to be paid under the formula in lieu of the determination by the appointed appraisers. The formula must provide for the payment of the fair market value of an animal based on market prices paid for similar animals according to categories or criteria established by the department.

If an owner elects to be paid an indemnity amount based on a method that provides either a determination by appointed appraisers or a formula, the owner is not entitled to revoke the election unless otherwise provided by the department. An owner’s decision to delay or refuse to make an election does not affect the condemnation and destruction of the infected animal.

HOUSE FILE 2530 - Pseudorabies Control Full Text of Bill
By Committee on Agriculture.

This Act amends provisions in Code Chapter 166D providing for pseudorabies control in swine herds. The Department of Agriculture and Land Stewardship administers the Code chapter in conjunction with regulations promulgated by the U. S. Department of Agriculture.

In 2000, the General Assembly enacted S.F. 2312 (2000 Iowa Acts, Chapter 1110) providing comprehensive changes to the Code chapter, including providing for the movement of swine and the testing and vaccination of swine. These changes included vaccination requirements for swine in a county designated by the department as in Stage II of the National Pseudorabies Eradication Program. The changes enacted by S.F. 2312 also provided that unless a fixed concentration point belongs to a slaughtering establishment (i.e., a buying station), the swine subject to restricted movement must be moved to and from a fixed concentration point according to strict requirements. For example, swine required to be moved by restricted movement must be accompanied by a permit. Code Section 166D.12 provides that a fixed concentration point cannot be used for the movement of swine other than to a slaughtering establishment. A person who is required to move swine by restricted movement must transport the swine to either a fixed concentration point or slaughtering establishment or move or relocate the swine to an approved premises.

The Act amends Code Section 166D.10, which regulates the movement of swine. The Code section provides that swine may always be moved to a fixed concentration point or slaughtering establishment. Swine originating from a noninfected herd outside this state may be moved into a Stage II county if the swine are vaccinated prior to movement or, in some instances (such as for isowean feeder pigs), after movement. The Code section requires that for swine moved into a Stage II county, a test based on a statistical sampling of the swine moved into a herd within a Stage II county must be conducted. The Act eliminates the testing requirement.

Code Section 166D.10 also provides that known infected swine moved through a fixed concentration point must be moved by restricted movement to a slaughtering establishment. The Code section provides one exception for buying stations controlled by slaughtering establishments. The Act eliminates this exception.

The Act amends Code Sections 166D.10 and 166D.12, which prohibit a person from moving swine subject to restricted movement to or from a fixed concentration point unless the swine are moved in compliance with the requirements for restricted movement under Code Section 166D.10A. The Act permits a person to move swine from a fixed concentration point absent requirements of restricted movement if the swine are moved directly to another fixed concentration point or to a slaughtering establishment.

Under Code Section 166D.16, a person who violates a provision of the Code chapter is subject to a civil penalty of at least $100 but not more than $1,000. A person who owns swine when the swine are required to be vaccinated is subject to a civil penalty of $2 for each swine that is not vaccinated as required.

The Act takes effect April 8, 2002.

HOUSE FILE 2617 - Regulation of Milk and Milk Products Full Text of Bill
By Committee on Ways and Means.

This Act amends a number of provisions relating to the regulation of milk and milk products, including providing for fees, found in Code Chapter 192, referred to as the "Iowa Grade ‘A’ Milk Inspection Law," and Code Chapter 194 regulating grades of milk other than grade "A" milk. The Code chapters are administered by the Department of Agriculture and Land Stewardship.

The Act amends Code Section 192.111 and related sections referring to annual licenses issued by the department to milk plants, transfer stations, receiving stations, milk haulers, milk graders, and bulk milk tankers. The Code section also authorizes the department to collect license fees. The Act changes the term "license" to "permit," provides that the permits are valid for two years, and doubles the rate of current fees. The Act provides for staggered implementation of the revised fee system.

The Act provides for additional fees, including a reinspection fee for a current permit holder, a resealing fee that must be paid by a person holding a milk plant permit for resealing a milk plant’s pasteurizer by a department official, and a late fee for a person who renews a permit and submits any accompanying renewal fee more than 30 days after the date that the renewal period expires.

The Act creates new Code Section 194.3A, which requires the department to issue and renew permits under Code Chapter 194 for milk haulers, milk graders, and operators of bulk milk tankers. The section requires the issuance and renewal of the permits in the same manner as those issued under Code Section 192.111. A person is not required to obtain a permit under Code Chapter 194 if the person has obtained the same permit under Code Chapter 192.

The Act repeals a number of sections in both Code Chapters 192 and 194. These include provisions in Code Sections 192.131 through 192.137 that provide regulations relating to testing for milk fat, including examination requirements, licensing and fees, milk and cream testing procedures, tests conducted by unlicensed persons, and the use of evidence in legal actions; and Code Sections 194.12 through 194.16, providing for a milk hauler’s license and a milk grader’s license, the duty of graders, and the revocation or suspension of licenses. The Act also repeals Code Section 194.19, providing for the licensure of vehicles used for the collection of milk.

Code Section 192.113 provides that a person who violates the chapter’s permitting provisions is subject to a civil penalty of at least $100 but not more than $1,000 for each violation. The Act amends Code Section 194.25 and provides that a person who acts as a milk hauler or milk grader or operates a bulk milk tanker without holding a valid permit in violation of new Code Section 194.3A is subject to the same civil penalties as provided in Code Section 192.113.

The department is authorized to adopt rules in preparation of the Act’s applicability on and after its effective date.

The Act takes effect May 2, 2002, although its provisions become applicable on and after July 1, 2002.

HOUSE FILE 2620 - Farmers Markets Full Text of Bill
By Committee on Ways and Means.

This Act amends Code Chapter 137F, which provides for the regulation, including the licensure, of food establishments and food processing plants. The Code chapter is administered by a regulatory authority, which is defined as the Department of Inspections and Appeals or a political subdivision (referred to as a "municipal corporation") that has entered into an agreement with the department for authority to administer the chapter in its jurisdiction. Pursuant to Code Section 137F.1, a food establishment (a place where food is stored, prepared, packaged, or served for human consumption) does not include a farmers market. This Act amends Code Chapter 137F to specifically provide for the regulation of a farmers market as a food establishment if the farmers market sells or distributes potentially hazardous food (a food that is natural or synthetic and is in a form capable of supporting the rapid and progressive growth of infectious or toxigenic microorganisms, or the growth and toxin production of clostridium botulinum). The Act amends Code Section 137F.6, authorizing the collection of license fees by a regulatory authority, to provide that a farmers market where potentially hazardous food is sold or distributed is subject to one seasonal license fee of $100 for each vendor on a countywide basis.

The Act takes effect May 2, 2002.

SENATE FILE 437 - Snowmobiles and All-Terrain Vehicles — Titling, Registration, and Use
SEE NATURAL RESOURCES & OUTDOOR RECREATION.
   This Act amends various sections of the Code Chapter 321G relating to the operation, registration and titling of all-terrain vehicles and snowmobiles, and exempts snowmobiles and all-terrain vehicles used exclusively as farm implements from the registration requirements.

SENATE FILE 2051 - State Interagency Missouri River Authority
SEE NATURAL RESOURCES & OUTDOOR RECREATION.
   This Act creates a State Interagency Missouri River Authority to represent the State of Iowa as a member of the Missouri River Basin Association. The Secretary of Agriculture is a member of the authority.

SENATE FILE 2057 - Dr. Norman E. Borlaug World Food Prize Day
SEE STATE GOVERNMENT.
   This Act authorizes and requests the Governor to issue annually a proclamation designating October 16 as Dr. Norman E. Borlaug World Food Prize Day.

SENATE FILE 2084 - Farm Implement, Motorcycle, and All-Terrain Vehicle Franchises or Dealerships
SEE BUSINESS, BANKING & INSURANCE.
   This Act regulates the business relationship between persons merchandising all-terrain vehicles and persons supplying the all-terrain vehicles to those merchandisers under two Code chapters. Code Chapter 322D governs agreements involving the merchandising of motorcycles and certain agreements for agricultural equipment. Code Chapter 322F is the Code chapter governing agreements involving the merchandising of agricultural equipment. The Act provides that the same terms and conditions that apply under those Code chapters for motorcycles and agricultural equipment also apply to agreements involving all-terrain vehicles.

SENATE FILE 2160 - Dry Fire Hydrant and Rural Water Supply Education and Demonstration Project
SEE ECONOMIC DEVELOPMENT.
   This Act defines the term "dry fire hydrant" for purposes of the Dry Fire Hydrant and Rural Water Supply Education and Demonstration Project administered by the Department of Economic Development.

SENATE FILE 2207 - Conservation Easements
SEE NATURAL RESOURCES & OUTDOOR RECREATION.
   This Act provides that a conservation easement may be acquired to promote agriculture.

SENATE FILE 2275 - Substantive Code Corrections
SEE 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. Changes made in the area of agriculture include striking obsolete references to the Book of Agriculture, the Agricultural Energy Management Advisory Council, farmers institutes, and the repealed chapter on frozen food locker plants. The definition of "department" is clarified in a provision relating to the collection of samples of blood in slaughter facilities. A variety of changes and corrections are made in the Agrichemical Remediation chapter. A reference to the Agrichemical Reimbursement Board is corrected. In a provision relating to various infectious and contagious diseases among animals, changes are made in language regarding the compensation of owners for property inadvertently destroyed due to regulation of activities in a quarantined area, in language relating to separating cattle infected with paratuberculosis, and in various provisions relating to pseudorabies control. Clarifications are also made in the following: language describing the renewal of recording of livestock brands, the definitions section of the State Fair chapter, and language relating to the Grape and Wine Development Commission. A reference to the National Livestock and Meat Board and the Pork Industry Group is eliminated from language relating to distribution of funds from the assessment on pork producers to various agriculture industry organizations. An examination requirement applicable to milk tester’s license applicants is repealed. In provisions governing various agricultural liens, changes are made in language relating to the enforcement of custom cattle feedlot liens, in language defining the term "personal representative" in the Commodity Production Contract Lien chapter, and by replacing the term "owner of the commodity" with "contractor" in the chapter. A change is made in language relating to a list compiled by the county auditor of all tracts of agricultural land entitled to tax credit. The language describing sweepings of tobacco in the definition of "tobacco product" is conformed in two Code sections in Code Chapter 453A.

SENATE FILE 2304 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions
SEE APPROPRIATIONS.
   This Act makes, reduces and transfers appropriations for FY 2001-2002 and includes transfers to the General Fund of the State from the Value-Added Agricultural Products and Processes Financial Assistance Fund, the Environment First Fund, and the Brucellosis and Tuberculosis Eradication Fund. The Act takes effect March 1, 2002.

SENATE FILE 2316 - Sale of Iowa State University of Science and Technology Dairy Research Farm — Use of Proceeds
SEE EDUCATION.
   This Act directs Iowa State University of Science and Technology to develop, immediately after the effective date of the Act, a plan to sell the university’s 1,100-acre Ankeny dairy breeding research farm and use the proceeds to establish a new dairy research and dairy teaching facility or for its Plant Sciences Institute. The Act takes effect May 2, 2002.

SENATE FILE 2325 - State Agency Regulatory Functions — Miscellaneous Reorganizations, Transfers, and Revisions
SEE STATE GOVERNMENT.
   This Act relates to certain regulatory functions. The Act reorganizes duties of the Department of Inspections and Appeals (DIA), transfers the Court Appointed Special Advocate Program from the judicial branch to the DIA, reorganizes the structure of the Department of Natural Resources (DNR), provides for legislative review of agencies, and addresses regulation of birth centers. The Act includes a transfer of the responsibilities for oversight and testing of rural wells and water supplies from the DNR to the Iowa Department of Public Health.

HOUSE FILE 2584 - Property Taxation — Vineyard Real Estate and Buildings
SEE TAXATION.
   This Act provides that a vineyard and buildings used in connection with a vineyard are agricultural property for purposes of property taxation.

HOUSE FILE 2623 - Compensation for Public Employees and Additional Provisions
SEE APPROPRIATIONS.
   This Act relates to compensation and benefits for public officials and employees, county mental health allowed growth, regulatory and other related matters of the state, and makes and reduces appropriations. The Act also allows moneys in the Value-Added Agricultural Products and Process Financial Assistance Fund to be used for administration of the fund.

HOUSE FILE 2625 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions — Fiscal Year 2001-2002 — SECOND EXTRAORDINARY SESSION
SEE APPROPRIATIONS.
   This Act addresses public funding provisions and related matters by making, transferring and reducing appropriations in order to balance the State General Fund budget for FY 2001-2002. The Act includes transfers and reductions that affect agricultural interests and affects distribution of tax credits under the New Jobs and Income Program and the Enterprise Zone Program to members of a farmers’ cooperative that owns an ethanol-producing facility.

HOUSE FILE 2627 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions — 2002-2003 and Prior Fiscal Years - SECOND EXTRAORDINARY SESSION
SEE APPROPRIATIONS.
   This Act provides FY 2002-2003 appropriations from the General Fund of the State to the executive and judicial branches of state government, reduces or limits standing appropriations, and transfers appropriations. The Act is organized into divisions corresponding to the General Assembly’s joint appropriations subcommittees and includes appropriations for the Department of Agriculture and Land Stewardship and the Department of Natural Resources and agencies and programs connected to those departments. The Act also provides corrective amendments to provisions of S.F. 2293.