House Study Bill 249

                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            AGRICULTURE BILL BY
                                            CHAIRPERSON DRAKE)


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for manure application requirements, providing
  2    for fees, making penalties applicable, and providing an
  3    effective date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 3027HC 80
  6 da/sh/8

PAG LIN

  1  1    Section 1.  Section 459.102, subsection 11, Code 2003, is
  1  2 amended by striking the subsection, and inserting in lieu
  1  3 thereof the following:
  1  4    11.  "Commercial manure service" means a sole proprietor or
  1  5 business association as defined in section 9H.1, engaged in
  1  6 the business of transporting, handling, storing, or applying
  1  7 manure for a fee.
  1  8    Sec. 2.  Section 459.102, Code 2003, is amended by adding
  1  9 the following new subsections:
  1 10    NEW SUBSECTION.  11A.  "Commercial manure service
  1 11 representative" means a natural person who is an employee,
  1 12 agent, or contractor of a commercial manure service, if the
  1 13 person is engaged in transporting, handling, storing, or
  1 14 applying manure on behalf of the commercial manure service.
  1 15    NEW SUBSECTION.  15A.  "Confinement site manure applicator"
  1 16 means a person, other than a commercial manure service or a
  1 17 commercial manure service representative, who applies manure
  1 18 on land if the manure originates from a manure storage
  1 19 structure.
  1 20    NEW SUBSECTION.  19A.  "Director" means the director of the
  1 21 department of natural resources.
  1 22    NEW SUBSECTION.  23A.  "Family member" means a person
  1 23 related to another person as a spouse, parent, grandparent,
  1 24 child, grandchild, or sibling.
  1 25    Sec. 3.  Section 459.103, subsection 2, Code 2003, is
  1 26 amended to read as follows:
  1 27    2.  Any provision referring generally to compliance with
  1 28 the requirements of this chapter as applied to animal feeding
  1 29 operations also includes compliance with requirements in rules
  1 30 adopted by the commission pursuant to this section, orders
  1 31 issued by the department as authorized under this chapter, and
  1 32 the terms and conditions applicable to licenses,
  1 33 certifications, permits, or manure management plans required
  1 34 under subchapter III.  However, for purposes of approving or
  1 35 disapproving an application for a construction permit as
  2  1 provided in section 459.304, conditions for the approval of an
  2  2 application based on results produced by a master matrix are
  2  3 not requirements of this chapter until the department approves
  2  4 or disapproves an application based on those results.
  2  5    Sec. 4.  NEW SECTION.  459.314A  LICENSURE == COMMERCIAL
  2  6 MANURE SERVICE.
  2  7    A person shall not engage in the business of a commercial
  2  8 manure service, unless the department issues the person a
  2  9 license under this section.
  2 10    1.  The department shall not issue a license to a
  2 11 commercial manure service unless each person who makes
  2 12 management decisions substantially contributing to the success
  2 13 of the commercial manure service is certified as a commercial
  2 14 manure service representative pursuant to section 459.315.
  2 15    2.  The department shall not issue a license to a
  2 16 commercial manure service, if the license for the commercial
  2 17 manure service has been revoked within the previous three
  2 18 years or a person who holds a controlling interest in the
  2 19 commercial manure service held a controlling interest in
  2 20 another commercial service which has been revoked within the
  2 21 previous three years.
  2 22    3.  The department may impose conditions or limitations
  2 23 upon the license.  However, the issuance of a license shall
  2 24 not be conditioned upon providing a bond or maintaining a
  2 25 certain financial condition.  A commercial manure service
  2 26 shall be issued a single license regardless of the number of
  2 27 sites where the commercial manure service operates offices.
  2 28    4.  A license application must be submitted to the
  2 29 department on a form furnished by the department according to
  2 30 procedures required by the department.  The license shall
  2 31 expire on April 1 of each year.
  2 32    5.  A commercial manure service shall be charged a license
  2 33 fee as provided in section 459.316.
  2 34    Sec. 5.  NEW SECTION.  459.314B  DISCIPLINARY ACTION ==
  2 35 COMMERCIAL MANURE SERVICE.
  3  1    The department may issue an order to suspend or revoke the
  3  2 license of a commercial manure service as provided in chapter
  3  3 17A, including an order to immediately suspend or revoke the
  3  4 license pursuant to section 17A.18A.  The department shall
  3  5 conduct a contested case proceeding for the assessment of a
  3  6 civil penalty in accordance with section 459.603A.  The
  3  7 department may suspend or revoke the license of a commercial
  3  8 manure service for a violation of this chapter.  In addition,
  3  9 the department may suspend or revoke a commercial manure
  3 10 service's license for any of the following:
  3 11    1.  Committing a fraudulent act, including but not limited
  3 12 to engaging in a deceptive act or practice, deliberately
  3 13 misrepresenting or omitting a material fact in the license
  3 14 application or submitting a statement verifying that an
  3 15 employee may be substituted for certification without paying a
  3 16 fee as provided in section 459.316.
  3 17    2.  Knowingly assisting a person in evading the provisions
  3 18 of this chapter.
  3 19    3.  Knowingly employing or executing a contract with a
  3 20 person who acts as a commercial manure service representative
  3 21 who is not certified pursuant to section 459.315.
  3 22    Sec. 6.  Section 459.315, Code 2003, subsections 1 and 2,
  3 23 Code 2003, are amended by striking the subsections and
  3 24 inserting in lieu thereof the following:
  3 25    1.  a.  A person shall not act as a commercial manure
  3 26 service representative, unless the person is certified
  3 27 pursuant to this section.
  3 28    b.  A person shall not act as a confinement site manure
  3 29 applicator, unless the person is certified pursuant to this
  3 30 section.
  3 31    Sec. 7.  Section 459.315, subsection 3, paragraph a, Code
  3 32 2003, is amended to read as follows:
  3 33    a.  A person required to be certified as a commercial
  3 34 manure applicator service representative must be certified by
  3 35 the department each year.  The person shall be certified after
  4  1 completing an educational program which shall consist of an
  4  2 examination required to be passed by the person or three hours
  4  3 of continuing instructional courses which the person must
  4  4 attend each year in lieu of passing the examination.
  4  5    Sec. 8.  Section 459.315, subsection 4, unnumbered
  4  6 paragraph 1, Code 2003, is amended to read as follows:
  4  7    The department shall adopt, by rule, requirements for the
  4  8 certification, including educational program requirements.
  4  9 The department may establish different educational programs
  4 10 designed for commercial manure applicators service
  4 11 representatives and confinement site manure applicators.  The
  4 12 department shall adopt rules necessary to administer this
  4 13 section, including establishing certification standards, which
  4 14 shall at least include standards for the transporting,
  4 15 handling, application, and storage of storing, and applying
  4 16 manure, the potential effects of manure upon surface water and
  4 17 groundwater, and procedures to remediate the potential effects
  4 18 on surface water or groundwater.
  4 19    Sec. 9.  Section 459.315, subsection 4, paragraph b, Code
  4 20 2003, is amended to read as follows:
  4 21    b.  The department shall administer the continuing
  4 22 instructional courses, by either teaching the courses or
  4 23 selecting persons to teach the courses, according to criteria
  4 24 as provided by rules adopted by the department.  The
  4 25 department shall, to the extent possible, select persons to
  4 26 teach the continuing instructional courses.  The department is
  4 27 not required to compensate persons to teach the continuing
  4 28 instructional courses.  In selecting persons, the department
  4 29 shall consult with organizations interested in the application
  4 30 of transporting, handling, storing, or applying manure,
  4 31 including associations representing manure applicators the
  4 32 Iowa commercial nutrient applicators association and
  4 33 associations representing agricultural producers.  The Iowa
  4 34 cooperative extension service in agriculture and home
  4 35 economics of Iowa state university of science and technology
  5  1 shall cooperate with the department in administering the
  5  2 continuing instructional courses.  The Iowa cooperative
  5  3 extension service may teach continuing instructional courses,
  5  4 train persons selected to teach courses, or distribute
  5  5 informational materials to persons teaching the courses.
  5  6    Sec. 10.  Section 459.315, subsection 5, paragraph a, Code
  5  7 2003, is amended to read as follows:
  5  8    a.  This section shall not require a person to be certified
  5  9 as a commercial manure applicator service representative if
  5 10 any of the following applies:
  5 11    (1)  The person is any of the following:
  5 12    (a)  Actively engaged in farming who trades work with
  5 13 another such person.
  5 14    (b)  Employed by a person actively engaged in farming not
  5 15 solely as a manure applicator who applies manure as an
  5 16 incidental part of the person's general duties.
  5 17    (c)  Engaged in applying manure as an incidental part of a
  5 18 custom farming operation.
  5 19    (d)  Engaged in applying manure as an incidental part of a
  5 20 person's duties as provided by rules adopted by the department
  5 21 providing for an exemption.
  5 22    (2)  The person transports, handles, stores, or applies
  5 23 manure for a period of thirty days from the date of initial
  5 24 employment as a commercial manure applicator if service
  5 25 representative and all of the following apply:
  5 26    (a)  The person is actively seeking certification under
  5 27 this section.
  5 28    (b)  The person applying the manure is acting transporting,
  5 29 handling, storing, or applying manure under the instructions
  5 30 and control of a certified commercial manure applicator who is
  5 31 both of the following: service representative.  The commercial
  5 32 manure service representative must be physically
  5 33    (a)  Physically present at the site where the manure is
  5 34 located.
  5 35    (b)  In The commercial manure service representative must
  6  1 also be in sight or hearing immediate communication distance
  6  2 of the supervised person.
  6  3    Sec. 11.  Section 459.315, subsection 6, Code 2003, is
  6  4 amended to read as follows:
  6  5    6.  The department may charge a fee for certifying a person
  6  6 under this section as provided in section 459.316.  The fee
  6  7 for certification shall be based on the costs of administering
  6  8 and enforcing this section and paying the expenses of the
  6  9 department relating to certification.  A person who is
  6 10 certified as a confinement site manure applicator as provided
  6 11 in this section is exempt from paying the certification fee,
  6 12 if all of the following apply:
  6 13    a.  The person is certified within one year from the date
  6 14 that a family member has been certified as a confinement site
  6 15 manure applicator.
  6 16    b.  The family member has paid the fee for that family
  6 17 member's own certification.
  6 18    Sec. 12.  NEW SECTION.  459.315A  DISCIPLINARY ACTION ==
  6 19 COMMERCIAL MANURE SERVICE REPRESENTATIVES.
  6 20    1.  The department may issue an order to suspend or revoke
  6 21 the certification of a commercial manure service
  6 22 representative for a violation of this chapter.  The
  6 23 department shall conduct a contested case proceeding for the
  6 24 assessment of a civil penalty in accordance with section
  6 25 459.603A.
  6 26    2.  The department shall issue an order for the suspension
  6 27 or revocation of a certificate as provided in chapter 17A.
  6 28 The department may issue an order to immediately suspend or
  6 29 revoke the certification notwithstanding section 17A.18.
  6 30    Sec. 13.  Section 459.316, subsection 1, paragraph d, Code
  6 31 2003, is amended to read as follows:
  6 32    d.  Fees paid by persons required by the department to be
  6 33 certified as commercial manure applicators service
  6 34 representatives or confinement site manure applicators
  6 35 pursuant to section 459.315.  The fees for certification shall
  7  1 be based on the costs of administering section 459.315 and
  7  2 paying the expenses of the department relating to
  7  3 certification.
  7  4    (1)  The fee for certification of a commercial manure
  7  5 service representative shall not be more than seventy=five
  7  6 dollars.  A commercial manure service licensed pursuant to
  7  7 section 459.314A may pay for the annual certification of its
  7  8 employees.  If the commercial manure service makes payment
  7  9 before April 1, the commercial manure service may substitute a
  7 10 new employee to be certified for a former employee who was
  7 11 certified.  The department shall not charge for the
  7 12 certification of the substituted employee.  The department may
  7 13 require that the commercial manure service provide the
  7 14 department with documentation that the substitution is valid.
  7 15    (2)  A person who is certified as a confinement site manure
  7 16 applicator as provided in section 459.315 is exempt from
  7 17 paying the certification fee if all of the following apply:
  7 18    (a)  The person is certified within one year from the date
  7 19 that a family member has been certified as a confinement site
  7 20 manure applicator.
  7 21    (b)  The family member has paid the fee for that family
  7 22 member's own certification.
  7 23    Sec. 14.  Section 459.316, subsection 1, Code 2003, is
  7 24 amended by adding the following new paragraph:
  7 25    NEW PARAGRAPH.  e.  Fees paid by persons required by the
  7 26 department to be licensed as a commercial manure service as
  7 27 provided in section 459.314A.  The fee for certification shall
  7 28 not be more than two hundred dollars.
  7 29    Sec. 15.  NEW SECTION.  459.603A  COMMERCIAL MANURE SERVICE
  7 30 PEER REVIEW PANEL.
  7 31    1.  The department shall establish a commercial manure
  7 32 service peer review panel to assist the department in
  7 33 assessing or collecting a civil penalty pursuant to section
  7 34 459.603.  The director shall appoint five persons who are
  7 35 commercial service representatives certified pursuant to
  8  1 section 459.315.  At least three of the persons shall own or
  8  2 operate a commercial manure service licensed pursuant to
  8  3 section 359.314A.  At least four members shall be actively
  8  4 engaged in the business of transporting, handling, storing, or
  8  5 applying manure on agricultural land used for farming or
  8  6 applying pesticides on agricultural land used for farming.
  8  7    2.  a.  The members appointed pursuant to this section
  8  8 shall serve four=year terms beginning and ending as provided
  8  9 in section 69.19.  However, the director shall appoint initial
  8 10 members to serve for less than four years to ensure that
  8 11 members serve staggered terms.  A member is eligible for
  8 12 reappointment.  A vacancy on the panel shall be filled for the
  8 13 unexpired portion of the regular term in the same manner as
  8 14 regular appointments are made.
  8 15    b.  The panel shall elect a chairperson who shall serve for
  8 16 a term of one year.  The panel shall meet on a regular basis
  8 17 and at the call of the chairperson or upon the written request
  8 18 to the chairperson of two or more members.  Three voting
  8 19 members constitute a quorum and the affirmative vote of a
  8 20 majority of the members present is necessary for any
  8 21 substantive action to be taken by the panel.  The majority
  8 22 shall not include any member who has a conflict of interest
  8 23 and a statement by a member that the member has a conflict of
  8 24 interest is conclusive for this purpose.  A vacancy in the
  8 25 membership does not impair the duties of the panel.
  8 26    c.  Notwithstanding section 7E.6, the members shall only
  8 27 receive reimbursement for actual expenses for performance of
  8 28 their official duties, as provided by the department.
  8 29    d.  The panel shall be staffed by the department.
  8 30    3.  The panel shall make recommendations to the department
  8 31 regarding the establishment of civil penalties and procedures
  8 32 to assess and collect penalties, as provided in this section.
  8 33 The panel may propose a schedule of penalties for minor and
  8 34 serious violations.  The department may adopt rules based on
  8 35 the recommendations of the panel as approved by the director.
  9  1    4.  The panel shall review cases of persons required to be
  9  2 licensed as a commercial manure service or to be certified as
  9  3 a commercial manure service representative and who are subject
  9  4 to civil penalty as provided in section 459.603 according to
  9  5 rules adopted by the department.  A review shall be performed
  9  6 upon request by the department or the person subject to the
  9  7 civil penalty.  The panel may establish procedures for the
  9  8 review and establish a system of prioritizing cases for
  9  9 review, consistent with rules adopted by the department.  The
  9 10 rules may exclude review of minor violations.  The review may
  9 11 also include the manner of assessing and collecting the civil
  9 12 penalty.  The findings and recommendations of the panel shall
  9 13 be included in a response delivered to the department and the
  9 14 person subject to the penalty.  The response may include a
  9 15 recommendation that a proposed civil penalty be modified or
  9 16 suspended, that an alternative method of collection be
  9 17 instituted, or that conditions be placed upon the license of a
  9 18 commercial manure service or the certification of a commercial
  9 19 manure service representative.
  9 20    5.  The department shall adopt rules establishing a period
  9 21 for the review and response by the panel which must be
  9 22 completed prior to a contested case hearing under chapter 17A.
  9 23 A hearing shall not be delayed after the required period for
  9 24 review and response, except as provided in chapter 17A.
  9 25    6.  This section does not apply to a license revocation
  9 26 proceeding.  This section does not require the department to
  9 27 delay the prosecution of a case if immediate action is
  9 28 necessary to reduce the risk of harm to the environment or
  9 29 public health or safety.  This section also does not require a
  9 30 review or response if the department refers a violation of
  9 31 this chapter to the attorney general pursuant to section
  9 32 455B.112.  The department shall consider any available
  9 33 response by the panel, but is not required to change findings
  9 34 of an investigation, a penalty sought to be assessed, or a
  9 35 manner of collection.
 10  1    7.  An available response by the panel may be used as
 10  2 evidence in an administrative hearing, or a civil or criminal
 10  3 case, except to the extent that information is considered
 10  4 confidential pursuant to section 22.7.
 10  5    Sec. 16.  EFFECTIVE DATE.  This Act, being deemed of
 10  6 immediate importance, takes effect upon enactment.
 10  7                           EXPLANATION
 10  8    BACKGROUND.  In 1998, the general assembly enacted House
 10  9 File 2494 (1998 Iowa Acts, chapter 1209), providing for the
 10 10 regulation of animal feeding operations by the department of
 10 11 natural resources.  Part of the legislation required
 10 12 certification for commercial manure applicators (persons
 10 13 engaged in the business of applying manure on the land of
 10 14 other persons).  The provisions were codified as Code section
 10 15 455B.203A, which was recently transferred to new Code section
 10 16 459.315 as part of Senate File 2293, enacted in the 2002
 10 17 session (2002 Iowa Acts, chapter 1137; see also 2002 Iowa
 10 18 Acts, Second Extraordinary Session, chapter 1003).
 10 19    PROVISIONS OF THE BILL.  Currently, Code section 459.315
 10 20 provides that a person is certified as a commercial manure
 10 21 applicator after completing an educational program that
 10 22 consists of an examination or continuing instructional
 10 23 courses.  The Code section authorizes the department to charge
 10 24 a certification fee based on the costs of administering and
 10 25 enforcing the program.
 10 26    This bill changes the term "commercial manure applicator"
 10 27 to "commercial manure service".  It provides that a commercial
 10 28 manure service is a business engaged in transporting,
 10 29 handling, storing, or applying manure for a fee.  It also
 10 30 provides for a commercial manure service representative who is
 10 31 an employee or contractor of the service.  The bill provides
 10 32 that a commercial manure service must be licensed.  It also
 10 33 provides that the department may take disciplinary action
 10 34 against a commercial manure service for a violation of Code
 10 35 chapter 459, including the suspension or revocation of the
 11  1 license.
 11  2    The bill retains provisions requiring a commercial manure
 11  3 service representative to be certified by passing an
 11  4 examination or taking instructional courses.  It also provides
 11  5 that the department of natural resources may take disciplinary
 11  6 action against a commercial manure service representative,
 11  7 including the suspension or revocation of the certification.
 11  8 The bill provides that a commercial manure service must pay an
 11  9 annual license fee of $200 and a commercial manure service
 11 10 representative must pay an annual certification fee of $75.
 11 11 It also provides that a commercial manure service is not
 11 12 required to pay the fee for a new employee who is replacing a
 11 13 former employee who has left the service.  The bill
 11 14 establishes a commercial manure service peer review panel to
 11 15 assist the department in assessing or collecting a civil
 11 16 penalty.  The panel must make recommendations to the
 11 17 department regarding the establishment of civil penalties and
 11 18 review cases of persons required to be licensed as a
 11 19 commercial manure service or to be certified as a commercial
 11 20 manure service representative.
 11 21 LSB 3027HC 80
 11 22 da/sh/8.1