House File 2763 H-8407 Amend House File 2763 as follows: 1 1. Page 1, before line 1 by inserting: 2 < DIVISION I 3 AGRICULTURAL EQUIPMENT REPAIR > 4 2. Page 1, line 1, by striking < 322E.1 > and inserting 5 < 322H.1 > 6 3. Page 5, line 22, by striking < 322E.2 > and inserting 7 < 322H.2 > 8 4. Page 7, after line 9 by inserting: 9 < DIVISION __ 10 AGRICULTURAL DATA OWNERSHIP AND MARKET COMPETITION 11 Sec. ___. NEW SECTION . 322I.1 Short title. 12 This chapter shall be known and may be cited as the “Iowa 13 Agricultural Data Ownership and Market Competition Act” . 14 Sec. ___. NEW SECTION . 322I.2 Legislative findings and 15 declaration. 16 The general assembly finds and declares all of the 17 following: 18 1. Iowa agricultural producers generate substantial data 19 annually, including yield monitor data, soil analyses, field 20 prescriptions, weather correlations, precision agriculture 21 measurements, livestock health metrics, and operational 22 performance data. 23 2. Agricultural producers currently surrender valuable 24 data to equipment manufacturers, platform companies, and data 25 service providers through opaque terms of service, often 26 receiving no compensation for the data and maintaining no 27 control over its use. 28 3. Seed companies, insurers, commodity traders, 29 agricultural technology firms, financial institutions, 30 government agencies, and others pay premium prices for 31 agricultural data insights, while agricultural producers 32 receive no portion of that value. 33 4. Concentration of agricultural data collection and 34 transformation in a small number of equipment manufacturers and 35 -1- HF 2763.4223 (2) 91 da/js 1/ 12 #1. #2. #3. #4.

platform companies tends to harm Iowa agricultural producers 1 and rural communities. 2 5. Agriculture is a sector of critical importance to Iowa’s 3 economy, food security, and community development. 4 6. Raw agricultural data, consisting of factual 5 observations and measurements generated directly from 6 agricultural equipment or agricultural production operations, 7 cannot be copyrighted under federal law, but when raw 8 agricultural data is transformed through creative processes, 9 analytical methods, or proprietary algorithms, the transformed 10 agricultural data may be considered intellectual property and 11 is eligible for full ownership protection. 12 7. Establishing clear agricultural data ownership 13 principles that recognize agricultural producers’ full 14 copyright ownership of transformed agricultural data will 15 empower agricultural producers to capture fair market value 16 for their data while promoting transparency, competition, and 17 innovation in the agricultural sector. 18 8. Preventing excessive market concentration in 19 agricultural data collection and transformation is essential 20 to preserving competitive markets, ensuring fair prices for 21 agricultural producers, and avoiding the harms associated with 22 monopolistic practices. 23 9. It is therefore in the best interests of the people 24 of Iowa to establish clear and comprehensive regulation of 25 agricultural data ownership and use in support of agricultural 26 producers, the agricultural industry, and rural communities. 27 Sec. ___. NEW SECTION . 322I.3 Definitions. 28 As used in this chapter, unless the context otherwise 29 requires: 30 1. “Agricultural equipment” means the same as defined in 31 section 322H.1. 32 2. “Agricultural producer” or “producer” means a person 33 engaged in an agricultural production operation as a landowner, 34 tenant farmer, contract grower, livestock owner, or other 35 -2- HF 2763.4223 (2) 91 da/js 2/ 12

agricultural operator. 1 3. “Agricultural production operation” means any activity 2 conducted for the purpose of producing an agricultural 3 commodity, including crop production, livestock production, 4 aquaculture, viticulture, or similar activities. 5 4. “Data owner” means a person that holds ownership rights 6 in raw agricultural data or transformed agricultural data under 7 section 322I.4. 8 5. a. “Data service provider” means a person that 9 collects, receives, accesses, transmits, stores, processes, 10 transforms, aggregates, analyzes, sells, licenses, or 11 otherwise commercializes raw agricultural data or transformed 12 agricultural data. 13 b. “Data service provider” includes all of the following: 14 (1) An original equipment manufacturer, as defined in 15 section 322H.1. 16 (2) A platform provider that operates a digital platform, 17 application, or service through which raw agricultural data or 18 transformed agricultural data is collected, created, stored, 19 transmitted, processed, or otherwise made available. 20 (3) A data aggregator that collects, compiles, or processes 21 raw agricultural data from multiple agricultural producers. 22 (4) An entity that transforms raw agricultural data into 23 transformed agricultural data. 24 (5) An entity that sells, licenses, or otherwise 25 commercializes raw agricultural data or transformed 26 agricultural data. 27 6. “Data transaction” means any sale, license, transfer, 28 subscription, grant of access, or other commercial exchange 29 of transformed agricultural data or of an ownership right in 30 transformed agricultural data, whether for a one-time payment, 31 recurring fees, royalties, or other consideration. 32 7. “Department” means the department of agriculture and land 33 stewardship. 34 8. “Landowner” means a person that is a titleholder, or 35 -3- HF 2763.4223 (2) 91 da/js 3/ 12

holds a fee simple interest, a life estate interest, or other 1 possessory interest, in agricultural land. 2 9. “Livestock” means the same as defined in section 717.1. 3 10. “Livestock owner” means a person that holds ownership 4 rights in livestock. 5 11. “Markets for transformed agricultural data” means the 6 commercial channels and purchasers of transformed agricultural 7 data, including all of the following: 8 a. Crop insurance companies and reinsurers seeking actuarial 9 data and risk assessments. 10 b. Seed companies and agricultural biotechnology firms 11 seeking performance validation data. 12 c. Commodity traders and futures markets seeking supply 13 forecasts and production analytics. 14 d. Agricultural lenders and financial institutions seeking 15 creditworthiness assessments and collateral valuations. 16 e. Carbon credit registries and environmental markets 17 seeking sequestration verification. 18 f. Government agencies seeking program compliance 19 verification or statistical data. 20 g. Food processors and retailers seeking supply chain 21 transparency and sustainability documentation. 22 h. Agricultural input suppliers seeking market intelligence 23 and demand forecasting. 24 i. Land valuation services and real estate markets seeking 25 productivity assessments. 26 j. Research institutions and universities seeking data for 27 agricultural studies. 28 k. Water districts and drainage districts seeking usage 29 optimization data. 30 l. Any other commercial, governmental, academic, or 31 nonprofit entity that derives value from transformed 32 agricultural data. 33 12. a. “Raw agricultural data” means unprocessed 34 factual information and all data generated directly from an 35 -4- HF 2763.4223 (2) 91 da/js 4/ 12

agricultural production operation, agricultural equipment 1 operation, or agricultural land, and that satisfies both of the 2 following: 3 (1) Has not been converted to transformed agricultural 4 data. 5 (2) Consists of factual observations and measurements that 6 cannot be copyrighted under federal copyright law. 7 b. “Raw agricultural data” includes all of the following: 8 (1) Yield data, soil data, crop data, and field data as 9 directly recorded by equipment or by manual observation. 10 (2) Precision agricultural data, including global 11 positioning system coordinates, application rates, and sensor 12 readings. 13 (3) Equipment operation data, diagnostic data, telematics 14 data, and machine performance data as generated by equipment 15 systems. 16 (4) Livestock data, including health records, production 17 metrics, breeding data, and performance measurements. 18 (5) Weather data, environmental data, and climate data 19 specific to agricultural production operations. 20 (6) Input data, including seed, fertilizer, pesticide, 21 herbicide, diesel exhaust fluid, and fuel usage data. 22 (7) Financial data specific to agricultural production 23 operations. 24 13. “Transformed agricultural data” means raw agricultural 25 data that has been processed, analyzed, aggregated, compiled, 26 or otherwise transformed through the application of proprietary 27 algorithms, analytical methods, creative arrangement, or other 28 intellectual processes sufficient to produce information that 29 may be copyrighted as intellectual property under federal 30 copyright law, including all of the following: 31 a. Agronomic analyses and recommendations derived from raw 32 agricultural data. 33 b. Predictive models and yield forecasts based on historical 34 and current data. 35 -5- HF 2763.4223 (2) 91 da/js 5/ 12

c. Field prescriptions and variable-rate application maps. 1 d. Comparative benchmark reports and performance analyses. 2 e. Validated farming practices documented and substantiated 3 through operational data. 4 f. Crop insurance risk assessments and actuarial analyses. 5 g. Carbon sequestration quantification and environmental 6 credit documentation. 7 h. Supply chain optimization analyses and logistical models. 8 i. Equipment efficiency analyses and maintenance prediction 9 models. 10 j. Sustainability certifications and compliance 11 documentation. 12 k. Market timing analyses and commodity trading insights. 13 l. Input optimization recommendations and resource 14 efficiency analyses. 15 m. Any other compilation, analysis, or derivative work that 16 meets the originality threshold for copyright protection under 17 federal law. 18 Sec. ___. NEW SECTION . 322I.4 Agricultural data ownership 19 —— rights of agricultural producers. 20 1. An agricultural producer that generates raw agricultural 21 data from the producer’s agricultural equipment or agricultural 22 production operation retains ownership of that raw agricultural 23 data and may do all of the following: 24 a. Access, possess, and control the raw agricultural data. 25 b. Receive copies of the raw agricultural data in a 26 standardized, portable, machine-readable format from a data 27 service provider. 28 c. Share the raw agricultural data with a data service 29 provider of the producer’s choosing. 30 d. Request deletion of the raw agricultural data from a data 31 service provider’s systems. 32 e. Receive information from a data service provider 33 regarding how the raw agricultural data is being used, 34 transformed, and commercialized. 35 -6- HF 2763.4223 (2) 91 da/js 6/ 12

f. Receive fair market value compensation from a data 1 service provider when the raw agricultural data is used 2 to create transformed agricultural data or is otherwise 3 commercialized. 4 2. An agricultural producer that provides raw agricultural 5 data to a data service provider that converts the raw 6 agricultural data into transformed agricultural data has full 7 ownership rights in the transformed agricultural data and may 8 do all of the following: 9 a. Copyright the transformed agricultural data. 10 b. Reproduce the transformed agricultural data. 11 c. Prepare, or contract for the preparation of, derivative 12 works based on the transformed agricultural data. 13 d. Distribute copies of the transformed agricultural data. 14 e. Display the transformed agricultural data publicly. 15 f. License or sell the transformed agricultural data in any 16 market and for any lawful purpose. 17 g. Receive fair market value compensation from a data 18 service provider when the transformed agricultural data is 19 commercialized by others. 20 3. a. Except as provided in subsection 2, 4, or 5, 21 raw agricultural data generated by a landowner from a crop 22 production operation, and transformed agricultural data derived 23 from that raw agricultural data, belongs to the landowner of 24 the agricultural land from which the raw agricultural data was 25 generated. 26 b. A landowner that leases land to a tenant farmer or other 27 agricultural producer retains ownership of the raw agricultural 28 data generated from crop production on that land unless 29 otherwise provided by written agreement between the landowner 30 and the tenant farmer or other agricultural producer. 31 4. a. Raw agricultural data generated from a livestock 32 operation, referred to in this chapter as “livestock data” , 33 and transformed agricultural data derived from that raw 34 agricultural data, belongs to the owner of the livestock from 35 -7- HF 2763.4223 (2) 91 da/js 7/ 12

which the raw agricultural data was generated, regardless of 1 where the livestock is housed or whether a person other than 2 the livestock owner manages the livestock, unless otherwise 3 provided by written agreement between the parties. 4 b. A landowner of land on which a livestock operation is 5 conducted, and who is not the owner of the livestock, does 6 not own and has no claim to the livestock data generated from 7 the livestock operation unless otherwise provided by written 8 agreement between the owner of the livestock and the landowner. 9 5. a. Raw agricultural data generated from agricultural 10 equipment during an agricultural production operation that is 11 related to the use of the agricultural equipment, referred to 12 in this chapter as “equipment operation data” , and transformed 13 agricultural data derived from that raw agricultural data, 14 belongs to the owner or lessee of the agricultural equipment 15 at the time the raw agricultural data was generated, unless 16 otherwise provided by written agreement between the parties. 17 b. In accordance with subsection 3, even if agricultural 18 equipment is used during crop production, raw agricultural data 19 generated from crop production belongs to the landowner if the 20 raw agricultural data is related to the crop production. If 21 the raw agricultural data is equipment operation data and is 22 related to the use of the agricultural equipment in the crop 23 production, the raw agricultural data belongs to the owner or 24 lessee of the agricultural equipment. 25 6. a. A data owner’s rights regarding raw agricultural data 26 or transformed agricultural data granted under this chapter 27 shall not be waived or transferred by a browsewrap agreement, 28 a clickwrap agreement, terms of service, an end user license 29 agreement, or a similar instrument. 30 b. A data owner’s rights regarding raw agricultural data 31 or transformed agricultural data may be waived, transferred, 32 or voided only if the data owner provides express, informed, 33 written consent that specifically acknowledges the waiver, 34 transfer, or voiding of that right. 35 -8- HF 2763.4223 (2) 91 da/js 8/ 12

7. a. This section does not prohibit parties from 1 negotiating alternative ownership and revenue-sharing 2 arrangements for raw agricultural data or transformed 3 agricultural data through written agreement. 4 b. An agricultural producer may negotiate ownership 5 and revenue-sharing arrangements for the producer’s raw 6 agricultural data or transformed agricultural data, including 7 specific sharing arrangements for any of the following: 8 (1) Tenant farming. 9 (2) Sharecropping. 10 (3) A contract growing operation. 11 (4) A custom farming operation. 12 (5) An equipment leasing arrangement. 13 Sec. ___. NEW SECTION . 322I.5 Data monetization rights —— 14 limits on data service providers —— revenue sharing. 15 1. An agricultural producer may monetize, either directly 16 or through a data service provider of the producer’s choosing, 17 the producer’s transformed agricultural data by selling, 18 licensing, or otherwise commercializing the data in markets for 19 transformed agricultural data. 20 2. A data service provider shall not do any of the 21 following: 22 a. Prevent, restrict, or impede an agricultural producer 23 from monetizing the producer’s transformed agricultural data 24 through third parties. 25 b. Limit or restrict the types of markets for transformed 26 agricultural data in which an agricultural producer may 27 participate. 28 c. Impose contractual provisions that grant the data service 29 provider exclusive rights to the agricultural producer’s raw 30 agricultural data or transformed agricultural data without 31 fair market value compensation and the informed consent of the 32 agricultural producer. 33 d. Discriminate or retaliate against an agricultural 34 producer in terms, pricing, or service based on the producer’s 35 -9- HF 2763.4223 (2) 91 da/js 9/ 12

monetization of transformed agricultural data. 1 3. When a data service provider sells, licenses, or 2 otherwise commercializes transformed agricultural data, all of 3 the following shall apply: 4 a. The data owner shall receive fair market value 5 compensation for the use of the data owner’s transformed 6 agricultural data, and the compensation shall be disclosed by 7 the data service provider prior to the data transaction. 8 b. The data service provider shall provide the data 9 owner, upon request, with a transparent accounting of all 10 data transactions involving the data owner’s transformed 11 agricultural data, including the markets in which the 12 transformed agricultural data was sold. 13 c. A revenue-sharing arrangement established between the 14 data owner and the data service provider shall be executed by 15 written agreement between the parties and shall specify the 16 percentage or amount of revenue paid to the data owner. 17 d. The data service provider may contract with other persons 18 to facilitate payment of revenue shares to data owners, but 19 shall not reduce or delay payments to the data owner. 20 Sec. ___. NEW SECTION . 322I.6 Enforcement —— unfair or 21 deceptive trade practice —— civil penalty —— private right of 22 action. 23 1. A violation of section 322I.5 by a data service provider 24 is an unlawful practice under section 714.16. 25 2. a. The department shall serve as the first-line 26 receiving and investigating authority for a violation of 27 section 322I.5, and may do any of the following: 28 (1) Receive and investigate complaints alleging violations 29 of this chapter. 30 (2) Refer complaints to the attorney general for 31 enforcement under section 714.16. 32 (3) Publish annual reports on agricultural data market 33 concentration and compliance with this chapter. 34 b. The attorney general, on referral from the department or 35 -10- HF 2763.4223 (2) 91 da/js 10/ 12

upon the attorney general’s own initiative, may bring an action 1 to enforce section 322I.5 under section 714.16, including an 2 action seeking injunctive relief, restitution, civil penalties, 3 and any other relief authorized by section 714.16. 4 3. a. In addition to any other penalty available under 5 section 714.16, a data service provider that violates section 6 322I.5 is subject to a civil penalty of not more than fifty 7 thousand dollars per violation. 8 b. Except for any relief awarded under subsection 4, a civil 9 penalty recovered by the attorney general or the department 10 under section 322I.5 shall be deposited in the general fund of 11 the state. 12 4. An agricultural producer or data owner aggrieved by a 13 violation of section 322I.5 may bring a civil action in a court 14 of competent jurisdiction and, upon prevailing, is entitled to 15 all of the following: 16 a. Actual damages or statutory damages of up to ten thousand 17 dollars per violation, whichever amount is greater. 18 b. Injunctive relief. 19 c. Reasonable attorney fees and costs. 20 5. The remedies provided in this section are cumulative and 21 are in addition to any other remedies available under law. 22 Sec. ___. NEW SECTION . 322I.7 Rulemaking. 23 The department may adopt rules pursuant to chapter 17A to 24 administer and enforce this chapter. 25 Sec. ___. NEW SECTION . 322I.8 Construction —— relationship 26 to chapter 322H. 27 1. This chapter shall be construed independently of chapter 28 322H. 29 2. Except as otherwise expressly stated in statute, all of 30 the following apply: 31 a. The definition of “data” in section 322H.1 applies only 32 for purposes of chapter 322H. 33 b. The definitions of “raw agricultural data” and 34 “transformed agricultural data” in section 322I.3 apply only for 35 -11- HF 2763.4223 (2) 91 da/js 11/ 12

purposes of this chapter. 1 3. a. Nothing in this chapter limits, modifies, 2 or supersedes the obligations of an original equipment 3 manufacturer under chapter 322H. 4 b. Nothing in chapter 322H limits, modifies, or supersedes 5 the data ownership rights of an agricultural producer or data 6 owner under this chapter. 7 Sec. ___. Section 714.16, subsection 2, Code 2026, is 8 amended by adding the following new paragraph: 9 NEW PARAGRAPH . t. It is an unlawful practice for a person 10 that is a data service provider acting in the course of the 11 person’s business to violate section 322I.5. 12 Sec. ___. EFFECTIVE DATE. This division of this Act takes 13 effect July 1, 2027. 14 Sec. ___. APPLICABILITY. This division of this Act applies 15 to transactions and conduct occurring on or after the effective 16 date of this division of this Act. > 17 5. Title page, line 2, by striking < equipment. > and 18 inserting < production, providing penalties, and including 19 effective date and applicability provisions. > 20 6. By renumbering as necessary. 21 ______________________________ WULF of Black Hawk -12- HF 2763.4223 (2) 91 da/js 12/ 12 #5. #6.