AGRICULTURE

SENATE FILE 341 - Regulation of Farming and Beef and Pork Production
SENATE FILE 392 - Animal Feeding Operations - Construction Standards
SENATE FILE 393 - Agricultural Development Authority
SENATE FILE 394 - Regulation of Agricultural Products - Grain Dealers and Bargaining Agents - Warehouses
SENATE FILE 395 - Department of Agriculture and Land Stewardship - Third-Party Receipt of Funds and Documents
SENATE FILE 396 - Animal Feeding Operations Animal Unit Capacity - Turkeys and Chickens
HOUSE FILE 240 - Iowa Egg Council - Composition
HOUSE FILE 380 - Manure Storage Indemnity Fund - Fees and Charges
HOUSE FILE 492 - Soil and Water Conservation Districts
HOUSE FILE 493 - Department of Agriculture and Land Stewardship - Administrative Duties
HOUSE FILE 509 - Deer and Elk Chronic Wasting Disease
HOUSE FILE 547 - Commercial Pesticide Applicators - Financial Responsibility
HOUSE FILE 600 - Organic Agricultural Products
HOUSE FILE 617 - Swine Dealers - Financial Responsibility
HOUSE FILE 624 - Regulation of Farm Deer
HOUSE FILE 634 - Regulation of Cooperative Associations
HOUSE FILE 644 - Manure Application Requirements
HOUSE FILE 681 - Cooperatives - Tax Credits and Credit Refunds

RELATED LEGISLATION

SENATE FILE 97 - Transportation and Transportation-Related Regulation

SEE TRANSPORTATION. This Act creates an exemption from state motor carrier safety rules for certain drivers operating intrastate for farm operations or agricultural interests. The Act subjects farmers transporting Class 2 agricultural hazardous materials to rules implementing federal regulations for transportation of hazardous materials.

SENATE FILE 134 - Treasurers - Funds, Records, and Other Responsibilities - Miscellaneous Provisions

SEE LOCAL GOVERNMENT. This Act amends provisions relating to various duties of county treasurers. The Act allows the payment of installments of special assessments for a public improvement against property assessed as agricultural property to be deferred for as long as the assessor continues to classify the property as agricultural land on January 1 of each assessment year and for six months following any January 1 assessment date in which property is no longer classified as agricultural land.

SENATE FILE 155 - Substantive Code Corrections

SEE STATE GOVERNMENT. This Act contains statutory corrections that include changes relating to filing requirements for foreign agricultural landholders, regulation of farmers markets, county agricultural extension references, the Office of Renewable Fuels and Coproducts, grade "A" milk inspection, animal feeding operations, cooperatives, and the killing of animals.

SENATE FILE 340 - Business Entities - Miscellaneous Provisions

SEE BUSINESS, BANKING & INSURANCE. This Act applies changes made to provisions in Code Chapter 490, the Iowa Business Corporation Act, regarding director and officer duties, liability and indemnification during the 2002 Legislative Session to similar provisions in Code Chapter 491, which is the older corporation law in Iowa under which Iowa mutual insurance companies and mutual insurance holding companies are organized; Code Chapter 490A, Limited Liability Companies; Code Chapter 496C, Professional Corporations; and Code Chapters 497, 498, 499, and 501, regarding various types of cooperatives. For a cooperative organized under Code Chapter 501, the Act provides that a cooperative may indemnify a director against liability if such indemnification is provided in the articles of organization. The Act also amends provisions allowing the board of directors to advance expenses to a director.

SENATE FILE 379 - Agricultural Liens

SEE BUSINESS, BANKING & INSURANCE. This Act amends provisions relating to agricultural liens by providing that they must be perfected under Revised Article 9 of the Uniform Commercial Code (Code Chapter 554).

SENATE FILE 444 - Open Prairie or Wildlife Habitat Restoration Property Tax Credits - Inspection and Certification

SEE TAXATION. This Act specifies requirements to be met before restored and reestablished prairies or wildlife habitats may receive a property tax exemption. The Act applies to assessment years beginning on or after January 1, 2004.

SENATE FILE 459 - Iowa Agricultural Industry Finance Loans - Assignment

SEE ECONOMIC DEVELOPMENT. This Act provides that the Iowa Department of Economic Development may accept an assignment of a loan made by a corporation providing financing to an eligible person under the Iowa Agricultural Industry Finance Act in Code Chapter 15E.

S.J.R. 5 - Nullification of Administrative Rule - Ammonia and Hydrogen Sulfide Ambient Air Standards

SEE ENVIRONMENTAL PROTECTION. This Joint Resolution nullifies the amendments to an administrative rule and nullifies a new administrative rule adopted by the Environmental Protection Commission of the Department of Natural Resources on April 21, 2003, to prevent the adoption of certain new ambient air quality standards that regulate ammonia and hydrogen sulfide levels in the air. The Joint Resolution takes effect April 30, 2003.

HOUSE FILE 304 - Agricultural Land Tax Credits

SEE TAXATION. This Act provides for the reimbursement of a county, from the appropriation made to the Agricultural Land Credit Fund to pay for credits during FY 2003-2004, for the amount paid by a county to those qualifying for the agricultural land tax credit payable during FY 2002-2003 who, due to an error in the certification of the total amount of agricultural land tax credits, received a reduced amount. The Act takes effect April 15, 2003.

HOUSE FILE 446 - Equipment Dealership Agreements

SEE BUSINESS, BANKING & INSURANCE. This Act expands the scope of Code Chapter 322F, providing for agricultural equipment dealership agreements, to cover construction, industrial and utility equipment.

HOUSE FILE 472 - Federal Block Grant Appropriations

SEE APPROPRIATIONS. This Act appropriates federal block grant and other nonstate moneys to state agencies for the federal fiscal year beginning October 1, 2003, and ending September 30, 2004. The Act includes funding for various programs involving agriculture.

HOUSE FILE 612 - New Jobs and Income Program - Agricultural Land Ownership by Nonresident Aliens

SEE ECONOMIC DEVELOPMENT. This Act relates to the exemption from land ownership restrictions for nonresident aliens under the New Jobs and Income Program.

HOUSE FILE 682 - Wine Manufacturing, Sale, and Distribution

SEE ALCOHOL REGULATION & SUBSTANCE ABUSE. This Act is concerned with the funding of grape and wine development programs in the state, and with the establishment of new wine permit classifications and fees for native wines.

HOUSE FILE 689 - Ethanol Blended Gasoline Tax Credits

SEE TAXATION. This Act amends provisions providing a tax credit for retail dealers of gasoline who sell ethanol blended gasoline by allowing retail dealers whose fiscal years begin after January 1, 2002, to qualify for the tax credit.

AGRICULTURE

SENATE FILE 341 - Regulation of Farming and Beef and Pork Production (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act amends provisions in Code Chapter 9H (Corporate or Partnership Farming), which in part provides for the regulation of beef and pork processors that exercise control over cattle or swine operations.

During the 2002 Legislative Session, the General Assembly enacted S.F. 2309 (2002 Iowa Acts, Chapter 1095), which amended a number of Code provisions, including Code Section 9H.2. The stated purpose of that section is to preserve free and private enterprise, prevent monopoly, and protect consumers. The 2002 legislation expanded the section's provisions which, with some exceptions, prohibit a processor from owning, controlling or operating cattle and swine operations, and from contracting for the care and feeding of swine.

The Act defines "person" to specifically include business associations. In other respects the definition is similar to the definition found in Code Section 4.1, which provides for general definitions of words used throughout the Code.

The Act amends a number of provisions created in S.F. 2309 that refer to retailers and swine producers engaged in business operations. The Act strikes references to business being carried out "in this state." The Act amends the purposes language of Code Section 9H.2. The Act strikes a provision that allows cooperative associations to directly and indirectly contract for the care and feeding of swine in this state.

The Act amends a provision enacted in S.F. 2309 creating a definition of a "qualified processor." Senate File 2309 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. One requirement for a processor to be qualified is that 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 reduces the percentage of required cash or spot market purchases to 10 percent. The Act provides that cash or spot market purchases must be made, under the same terms and conditions, from both sellers of swine who hold a direct or indirect interest in the processor and sellers of swine who do not hold a direct or indirect interest in the processor. The Act provides that the qualified processor cannot provide sellers of swine who hold a direct or indirect interest in the processor with a preference over sellers of swine who do not hold a direct or indirect interest in the processor.

The Act extends a period that a processor has to comply with requirements adopted in 2000 (2000 Iowa Acts, Chapter 1048) from 2004 to 2006. It provides that a processor also has until June 30, 2006, to comply with the requirements of S.F. 2309. A cooperative association that has executed a contract for the care and feeding of swine has until June 30, 2007, to comply with the Act.

The Act directs the Code Editor to transfer provisions of the Act, along with other provisions of Code Chapter 9H, into a new Code chapter. As part of this process, the Act creates new sections that repeat current provisions providing for penalties and injunctive relief, which will be transferred to the new chapter.

The Act repeals Code Section 9H.5A, which has been replaced by Code Section 10B.4, enacted in 1998. Code Section 9H.5A has been suspended since that time.

The Act includes a severability clause that is redundant to Code Section 4.12.

The Act takes effect May 9, 2003.

SENATE FILE 392 - Animal Feeding Operations - Construction Standards (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act amends provisions established under the Animal Agriculture Compliance Act (Code Chapter 459), which provides for the regulation of animal feeding operations by the Department of Natural Resources. The Act generally amends provisions regulating where confinement feeding operation structures may be constructed.

Code Section 459.307 prohibits the construction of an unformed manure storage structure on karst terrain or an area that drains into a known sinkhole. The Act provides that a person may construct such a structure if there is a 25-foot separation distance between the bottom of the structure and soluble rock.

Code Section 459.310 prohibits manure storage structures being constructed on land that is part of a 100-year floodplain. The Act creates an exception for the replacement of a structure originally constructed prior to March 1, 2003, if the capacity of the structure is not increased and it is not located closer than the old structure was to a source for surface water or groundwater. The Act also allows the department to grant a variance for the construction of such a structure which replaces existing manure storage and handling facilities. In any case, a formed manure storage structure must meet construction design standards established under statute and associated rules. Any existing structure which is replaced must be closed.

The Act takes effect April 28, 2003.

SENATE FILE 393 - Agricultural Development Authority (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act amends provisions affecting the Agricultural Development Authority, which is organized as an independent self-funding agency charged to provide economic assistance to farmers. The Act provides that the authority is to be housed in the Office of Treasurer of State rather than the Department of Agriculture and Land Stewardship.

SENATE FILE 394 - Regulation of Agricultural Products - Grain Dealers and Bargaining Agents - Warehouses (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act relates to provisions regulating the grain industry, including grain dealers (Code Chapter 203), grain bargaining agents (Code Chapter 203A), and warehouse operators (Code Chapter 203C), by the Department of Agriculture and Land Stewardship.

Division I - Regulation of Grain Dealers and Warehouse Operators
Division I provides a definition of "person" in Code Section 203.1, governing grain dealers, and rewrites a definition of the term in Code Section 203C.1, governing warehouse operators. The Act amends the section by referencing Code Section 4.1, which provides a general definition of the term throughout the Code. The Act also provides definitions for the terms "check" and "electronic funds transfer."

The Act makes a number of changes to the structure and terminology that do not affect legal requirements in order to enhance their readability. For example, the Act strikes references to books and accounts in provisions which refer generally to a grain dealer's records. The Act amends provisions in Code Section 203.8, which provides for payment by grain dealers to owners of grain. The Act provides that a grain dealer must deliver a check for the purchase of grain to the seller by a date certain. The Act authorizes the department to regulate payment by check or electronic funds transfer.

The Act amends Code Section 203.9, providing for inspections of grain dealers. It also allows the department to reconstruct a grain dealer's records in order to determine whether the grain dealer is in compliance with legal requirements and may charge the grain dealer the actual cost for reconstructing the records. Similarly, the Act amends Code Section 203C.2, which provides for the powers and duties of the department. It provides that the department may charge the licensed warehouse operator the actual cost for reconstructing the warehouse operator's records and keep various payments made to the department.

The Act rewrites Code Sections 203.10 and 203C.10, relating to the suspension or revocation of licenses. It removes a number of departmental procedural requirements, including the filing of information with the department by the administrator of the warehouse bureau prior to taking an administrative action.

The Act amends Code Sections 203.11 and 203C.36, referring to penalties by making language uniform, and enhances the readability of the provisions.

The Act amends Code Section 203.15, which provides for credit sale contracts. Under current law, contracts must be signed by both parties. The Act also requires the contracts to be dated.

The Act amends Code Section 203C.39 by allowing a licensed warehouse operator to accept grain for storage from another licensed warehouse operator while the accepting warehouse operator has grain stored elsewhere.

The Act repeals Code Section 203.13, authorizing the department to designate an employee as an enforcement officer.

Division II - Elimination of Grain Bargaining Agent Regulations
Division II repeals Code Chapter 203A, which regulates grain bargaining agents. A grain bargaining agent bargains with buyers for the sale of grain for agricultural producers. Code Chapter 203A provides requirements for permits, bonds, recordkeeping, inspections, and disciplinary proceedings. The Act makes conforming amendments.

SENATE FILE 395 - Department of Agriculture and Land Stewardship - Third-Party Receipt of Funds and Documents (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 159, which provides for the general administrative and regulatory authority of the Department of Agriculture and Land Stewardship. Generally, provisions relating to the powers and duties of the department are contained in Title V of the Code. Many Code chapters in this title provide for regulation, including the application for and the approval of licenses, permits and certifications. Some Code chapters contain registration requirements. Code chapters of note include those regulating the care of animals in commercial establishments; infectious and contagious diseases among animals; the disposal of dead animals; veterinary practice; the marking and branding of livestock; slaughterhouse operations; meat and poultry inspection; organic food production; dairy food production; the labeling and sale of regulation of commercial feed, agricultural seeds, fertilizers and soil conditioners, and agricultural lime; the regulation of grain dealers and grain warehouse operators; the regulation of pesticides and their use; and the inspection of weights and measures, including gas pumps.

The Act provides that the department may execute a contract with a person qualified to provide assistance services. The person is referred to as a depositary. The services are limited to the receipt, acceptance and storage of applications for licenses, permits and certifications and for registrations (referred to as filing documents). According to the Act, the depositary must send filing documents that it receives to the department for processing, including for the approval or disapproval of an application or the acknowledgement of a registration.

The Act also provides that the department may execute a contract with a depositary to collect moneys owed to the department by a person in order to satisfy a liability arising from the operation of law which is limited to filing document fees and civil penalties. The Act authorizes the depositary to commit its assets to lines of credit and may accept forms of payment, including credit cards, debit cards, or electronic funds transfer. Moneys collected by the depositary must be transmitted to the department for deposit into the General Fund of the State. The Act provides for audits of the system by the Auditor of State.

SENATE FILE 396 - Animal Feeding Operations Animal Unit Capacity - Turkeys and Chickens (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act relates to provisions under the Animal Agriculture Compliance Act, relating to the regulation of confinement feeding operations by the Department of Natural Resources.

Under the chapter, regulations affecting confinement feeding operations are often based on size and specifically animal unit capacity. An animal unit is a number based upon the product of multiplying the number of animals of a designated category by a special equivalency factor. Categories are established based on species (e.g., slaughter or feeder cattle equal one animal unit). However, the section sometimes divides categories for a single species based on maturity or weight. This Act eliminates the current equivalency factor for poultry and creates new distinctions for turkeys and chickens based on weight. The new equivalency factor for turkeys weighing 112 ounces or more is 0.018, for turkeys weighing less than 112 ounces is 0.0085, for chickens weighing 48 ounces or more is 0.010, and for chickens weighing less than 48 ounces is 0.0025.

The Act takes effect May 21, 2003.

HOUSE FILE 240 - Iowa Egg Council - Composition (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act changes the composition of the Iowa Egg Council established under Code Chapter 184, which is charged to promote the increased utilization of eggs and egg products, and which administers an assessment (or "checkoff") on producers of chickens kept as layers. Currently, Code Section 184.6 provides that voting members of the council include persons representing producers. However, a producer cannot be represented more than once on the council. The Act changes that requirement by providing that a single producer can be represented by up to two members of the council.

HOUSE FILE 380 - Manure Storage Indemnity Fund - Fees and Charges
BY COMMITTEE ON AGRICULTURE. This Act amends provisions in Code Chapter 459 regulating confinement feeding operations, including provisions establishing a Manure Storage Indemnity Fund administered by the Department of Natural Resources. The Act eliminates the department's authority to transfer moneys from the fund for placement in the Animal Agriculture Compliance Fund and provides for the waiver of fees deposited into the fund. The Animal Agriculture Compliance Fund provides a funding source for the administration and enforcement of provisions regulating animal feeding operations under Code Chapter 459.

Under Code Section 459.506, moneys in the Manure Storage Indemnity Fund are dedicated for the purpose of reimbursing expenses incurred by a county or the department in cleaning up contamination which originates from a confinement feeding operation. Moneys in the fund originate from indemnity fees paid by owners of confinement feeding operations.

The Act eliminates a provision in Code Section 459.501 that requires that moneys in the Manure Storage Indemnity Fund in excess of $3 million be deposited in the Organic Nutrient Management Fund created in Code Section 161C.5 for purposes of supporting the Organic Nutrient Management Program. The Act also provides that if moneys in the fund exceed $3 million, the indemnity fees are waived. The department must reinstate the fees if the balance of the fund is $2 million or less.

The Act takes effect on April 21, 2003.

HOUSE FILE 492 - Soil and Water Conservation Districts (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act amends Code Section 457A.1, which provides that a number of governmental entities may acquire conservation easements, other than by eminent domain, in land for purposes of preservation. The Act adds soil and water conservation districts to the governmental entities that are entitled to acquire land under a conservation easement.

The Act also repeals Code Section 161A.11, which requires the Soil Conservation Division to report information to the Governor relating to the acreage of soil and water conservation districts.

HOUSE FILE 493 - Department of Agriculture and Land Stewardship - Administrative Duties (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act eliminates certain administrative requirements performed by the Department of Agriculture and Land Stewardship under Code Chapters 159 and 161A.

Code Section 159.5 establishes the department's general powers and duties. The Act strikes a provision that requires the department to establish and maintain a Sheep Promotion Bureau. The Act also strikes a provision authorizing the department to administer a program regulating the sale of water sold in sealed containers.

The Act also repeals Code Section 161A.11, which requires that the department's Soil and Water Conservation Division submit a report to the Governor, by January 1 of each legislative biennium, containing information about the existence or organization of soil and water conservation districts, including information regarding their acreage and finances.

HOUSE FILE 509 - Deer and Elk Chronic Wasting Disease (full text of bill)
BY MERTZ. This Act relates to chronic wasting disease which affects deer and elk populations. The disease is a form of transmissible spongiform encephalopathy similar to mad cow disease.

The Act establishes a Chronic Wasting Disease Task Force to develop a chronic wasting disease administrative strategy. The members of the task force include the Secretary of Agriculture or a designee, the Director of the Department of Natural Resources (DNR) or a designee, the State Veterinarian, and four members appointed by the Governor representing interested organizations. The task force is responsible for studying risks and responses associated with chronic wasting disease in deer and elk populations.

The Act also requires that the Secretary of Agriculture, in consultation with the State Veterinarian and the Director of DNR, act jointly to examine approaches to most effectively implement a chronic wasting disease administrative strategy.

The Department of Agriculture and Land Stewardship, in cooperation with DNR, must submit a report to the Governor and General Assembly that includes findings and recommendations resulting from the work of the task force and the heads of the two departments.

The Act takes effect April 24, 2003.

HOUSE FILE 547 - Commercial Pesticide Applicators - Financial Responsibility (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 206, which provides for the regulation of pesticides by the Department of Agriculture and Land Stewardship. Code Section 206.6 provides that a person engaged in the business of applying pesticides must be licensed. The Act, in part, amends Code Section 206.13, which currently requires that a licensee furnish the department with evidence of financial responsibility consisting of either a surety bond or a liability insurance policy. The Act provides that the licensee may also file an irrevocable letter of credit with the department.

The Act takes effect April 28, 2003.

HOUSE FILE 600 - Organic Agricultural Products (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act substantially revises Code Chapter 190C, providing for organic agricultural products as administered by the Department of Agriculture and Land Stewardship. The Code chapter was enacted in S.F. 2332 during the 1998 Legislative Session in response to a federal Act referred to as the federal Organic Food Production Act of 1990. Late in 2000, the U.S. Department of Agriculture (USDA) adopted final rules governing requirements for agricultural products which are sold, labeled or represented as organic, known as the National Organic Program (NOP). This Act amends Code Chapter 190C to conform to federal regulations.

Current Code Chapter 190C is administered jointly by the department and an Organic Standards Board composed of members appointed by the Governor and the Secretary of Agriculture. The board approves applications for certification, establishes procedures governing appeals of decisions made by the department or board, and establishes a fee structure for certification. The Act provides that the department performs these duties. The name of the board is changed to the Organic Advisory Council and its functions are made advisory. The Act does not substantially modify the role of regional organic associations responsible for assisting in certification. The department retains its existing authority to administer the Code chapter, including by providing for inspections, the examination of agricultural products, and the issuance of stop orders. The Attorney General retains authority to enforce the Code chapter's provisions in court. The Act does not significantly amend provisions providing for a private right of attorney general.

The Act uses language contained in the NOP, provides more prominence to the department rather than the Attorney General, and repeats that provisions which supplement the NOP apply only to the extent allowed by federal law.

The Act eliminates statutory provisions establishing standards for agricultural products to be considered organic. The NOP contains extensive standards for the production and handling of agricultural products which are to be labeled, sold or represented as organic. Specific Code sections repealed include Code Sections 190C.12 (providing standards), 190C.13 (providing for certification), 190C.14 (providing for labeling), and 190C.15 (providing for records).

Under federal regulation, the USDA accredits private or governmental entities as certifying agents responsible for certifying producers and handlers. The Act authorizes the department to become a state certifying agent. The NOP also provides that a state official may assume the role of the state organic program's governing state official, largely responsible for enforcing the state organic program. The Act provides that the Secretary of Agriculture may serve in that position upon approval by the USDA.

The Act increases the civil penalty for violations of the Code chapter from $5,000 to $10,000 in conformance with the NOP.

The Act takes effect May 1, 2003.

HOUSE FILE 617 - Swine Dealers - Financial Responsibility
BY COMMITTEE ON AGRICULTURE. This Act provides that a dealer of feeder pigs must file evidence of financial security with the Department of Agriculture and Land Stewardship. The evidence of financial security may be a bond or irrevocable letter of credit. The dealer must file the evidence of financial security before being licensed by the department to conduct a feeder pig dealer business under Code Section 163.30. The Act establishes and limits the amount of the evidence of financial security based on the volume of sales conducted by the dealer with minimum and maximum amounts established under the Act. It provides for the maintenance and cancellation of the evidence of financial security. The Act provides that the purchaser of feeder pigs who brings a legal action arising from a breach of a sales agreement for the purchase of feeder pigs may collect a judgment on the surety bond or irrevocable letter of credit.

HOUSE FILE 624 - Regulation of Farm Deer (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act relates to farm deer, which are animals belonging to the cervidae family commonly referred to as fallow deer, red deer, elk, or sika. A farm deer does not include any unmarked free ranging elk. These types of cervidae are considered livestock under a number of provisions throughout the Code, including branding regulations under Code Chapter 169A, trespassing livestock under Code Chapter 169C, meat and poultry inspection under Code Chapter 189A, exemptions from sales tax for inputs under Code Section 422.45, and livestock neglect and abuse under Code Chapter 717.

Farm deer are generally excluded from provisions referring to game in chapters administered by the Department of Natural Resources (DNR) and providing for wildlife conservation and hunting regulations (see Code Section 481A.1).

The Act adds whitetail and mule deer to the definition of "farm deer," but excludes such deer that are free ranging.

The Act amends a number of provisions referring to the definition of "farm deer" that currently exist in the Code in order to provide for uniformity. The Act establishes a new Code Chapter 170 under the jurisdiction of the Iowa Department of Agriculture and Land Stewardship (IDALS) and also administered by DNR. The Act establishes a Farm Deer Council to advise IDALS relating to farm deer, including issues involving health and regulations. The council consists of members actively engaged in the production of farm deer. The Act prohibits a landowner from keeping whitetail as farm deer, unless the whitetail are kept on land which is enclosed by a fence certified and prescribed by rules adopted by IDALS. After the fence is constructed and certified, DNR and IDALS have 30 days to remove any whitetail from the enclosed land and after the 30th day, any remaining whitetail and their progeny become the property of the landowner.

The Act provides that a person keeping farm deer who is licensed to maintain a hunting preserve or as a game breeder by DNR on the effective date of the Act is automatically certified and that IDALS may suspend or revoke a certification for cause.

The Act provides that DNR may conduct an investigation of a violation of fish and game laws and may obtain a warrant to search the enclosed land.

If a person lures whitetail that are the property of the state into the enclosure or keeps them in the enclosure, the person is guilty of taking deer out of season as prohibited in Code Section 481A.48 as enforced by DNR.

The Act takes effect May 23, 2003.

HOUSE FILE 634 - Regulation of Cooperative Associations (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act provides optional procedures for a cooperative association organized under Code Chapter 490 or 491 to be governed under Code Chapter 499, which is a process commonly referred to as conversion. Code Chapter 490 and its successor Code Chapter 491 provide generally for regulations regarding the organization and administration of business corporations. Code Chapter 499 provides other provisions for the organization and administration of cooperative associations. Generally, an entity is organized on a cooperative basis if it is organized for the purpose of providing economic services to its members, but without gain to itself, and its members own and control the entity in a manner similar to the way in which shareholders own and control a corporation.

Under the Act, the cooperative association's board of directors and shareholders must adopt a resolution providing that the cooperative association elects to be governed by and to comply with Code Chapter 499. Upon the adoption of the resolution, the cooperative association must execute an instrument that is filed with the Secretary of State. The cooperative association must amend its articles of incorporation and bylaws to comply with Code Chapter 499. The Act provides that the conversion does not affect a right accrued or established, or liability or penalty incurred prior to conversion.

HOUSE FILE 644 - Manure Application Requirements (full text of bill)
BY COMMITTEE ON AGRICULTURE. This Act amends Code Chapter 459 (the Animal Agriculture Compliance Act). Currently, a person is certified as a commercial manure applicator after completing an educational program that consists of an examination or continuing instructional courses. The Department of Natural Resources may charge a certification fee based on the costs of administering and enforcing the program.

The Act changes the term "commercial manure applicator" to "commercial manure service." It provides that a commercial manure service is a business engaged in transporting, handling, storing, or applying manure for a fee. It also provides for a commercial manure service representative who is a manager, employee or contractor of the service. The Act provides that a commercial manure service must be licensed. It also provides that the department may take disciplinary action against a commercial manure service for a violation of Code Chapter 459, including the suspension or revocation of the license. The provision requiring a commercial manure service license takes effect January 1, 2004.

The Act requires that a commercial manure service representative be certified by passing an examination or taking instructional courses. It also provides that the department may take disciplinary action against a commercial manure service representative, including the suspension or revocation of the certification. The Act provides that a commercial manure service must pay an annual license fee of $200 and a commercial manure service representative must pay an annual certification fee of $75. The Act provides that a commercial manure service is not required to pay the fee for a new employee who is replacing a former employee who has left the service. The manager of a commercial manure service is also not required to pay a fee for certification. Division III of H.F. 683 (see Appropriations) restores an exemption from certification requirements for noncommercial applicators who apply manure originating from small animal feeding operations.

Moneys collected in fees are to be deposited into a special account within the Animal Agriculture Fund. The department is required to annually adjust the amount of the fees based on the ending balance of the account.

The Act takes effect May 30, 2003, except as specified.

HOUSE FILE 681 - Cooperatives - Tax Credits and Credit Refunds (full text of bill)
BY COMMITTEE ON WAYS AND MEANS. This Act eliminates a requirement that a cooperative must be engaged in ethanol production to be eligible to claim a special tax credit or refund available to an eligible business involved in the production of value added agricultural products.

The Act amends provisions in Code Section 15.333, which provides that an eligible business under the New Jobs and Income Program may claim a tax credit of up to 10 percent of a new investment that involves the creation of new jobs. The Code section provides that an eligible business involved in the production of value added agricultural products may elect to receive a refund of all or a portion of the unused tax credit. The business must receive a certificate issued by the Department of Economic Development in order to receive the tax credit or refund.