Senate File 2018 - Introduced SENATE FILE 2018 BY D. JOHNSON A BILL FOR An Act requiring an application for a permit to construct 1 certain confinement feeding operation structures to include 2 information regarding any production contracts in which the 3 applicant is or may be a party, and including effective date 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5403XS (3) 87 da/rj

S.F. 2018 Section 1. Section 459.102, Code 2018, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 17A. “Contract livestock facility” means 3 the same as defined in section 202.1. 4 NEW SUBSECTION . 17B. “Contract producer” means the same as 5 defined in section 202.1. 6 NEW SUBSECTION . 17C. “Contractor” means the same as defined 7 in section 202.1. 8 NEW SUBSECTION . 42A. “Production contract” means the same 9 as defined in section 202.1. 10 Sec. 2. Section 459.303, subsection 3, Code 2018, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . e. A statement acknowledging or denying 13 that the applicant and a contractor are parties to a production 14 contract, or are negotiating to be parties to a production 15 contract. If the statement is an acknowledgment, the 16 application shall include all of the following: 17 (1) The name and mailing address of the contractor. 18 (2) Whether the applicant is a contract producer or is 19 negotiating to become a contract producer. 20 (3) Whether the confinement feeding operation structure if 21 constructed would be part of a confinement feeding operation 22 that may become a contract livestock facility. 23 Sec. 3. Section 459.304, subsection 2, paragraph a, 24 subparagraph (2), Code 2018, is amended to read as follows: 25 (2) The notice shall include all of the following: 26 (a) The name of the person applying to receive the 27 construction permit. 28 (b) The name of the township where the confinement feeding 29 operation structure is to be constructed. 30 (c) Each type of confinement feeding operation structure 31 proposed to be constructed. 32 (d) The animal unit capacity of the confinement feeding 33 operation if the construction permit all confinement feeding 34 operation structures were to be approved constructed . 35 -1- LSB 5403XS (3) 87 da/rj 1/ 4

S.F. 2018 (e) A statement acknowledging or denying that the applicant 1 and a contractor are parties to a production contract as 2 referred to in section 459.303. 3 (e) (f) The time when and the place where the application 4 may be examined as provided in section 22.2 . 5 (f) (g) Procedures for providing public comments to the 6 board as provided by the board. 7 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate 8 importance, takes effect upon enactment. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 BILL’S SUBSTANTIVE PROVISIONS. This bill amends Code 13 chapter 459, the “Animal Agriculture Compliance Act” (Code 14 chapter 459). The bill amends provisions that require the 15 department of natural resources (DNR) to approve or disapprove 16 an application for a permit to construct a confinement feeding 17 operation structure (structure) which is part of an existing or 18 proposed confinement feeding operation; sometimes referred to 19 as a concentrated animal feeding operation (CAFO). The bill 20 provides that the application must state whether the CAFO is or 21 could become a contract livestock facility. It also provides 22 that the statement must be included in the notice of a public 23 hearing conducted by the board of supervisors (board) in the 24 county where the proposed structure is to be constructed. 25 BACKGROUND —— PERMIT REQUIREMENTS. DNR’s responsibility to 26 approve or disapprove a permit application and a board’s right 27 to review and evaluate the application is based on several 28 factors: (1) a CAFO’s capacity (1,000 or more animal units 29 or AUs) or (2) the construction of an unformed manure storage 30 structure. A special exemption applies to a CAFO owned by 31 a research college (Code section 459.303). As part of the 32 process, the permit application must be filed with DNR and the 33 board in the county where the construction is to occur. The 34 board may hold a public hearing to receive public comments 35 -2- LSB 5403XS (3) 87 da/rj 2/ 4

S.F. 2018 regarding the application and forward its comments and public 1 comments to DNR prior to the agency’s decision to approve 2 or disapprove the application. The board is required to 3 publish a notice of a scheduled public hearing in a newspaper 4 having a general circulation in the county. The notice must 5 provide relevant information about the applicant, the proposed 6 construction, and the time and place of the public hearing 7 (Code section 459.304). 8 BACKGROUND —— TERMS —— CAFOs. Code chapter 459 includes 9 a number of defined terms (Code section 459.102). An animal 10 feeding operation refers to any area in which animals are 11 confined and fed and maintained for 45 days or more in any 12 12-month period. A CAFO is a type of animal feeding operation 13 that includes a totally roofed building where confined animals 14 are maintained (as compared to an open feedlot). An unformed 15 manure storage structure has walls and a bottom composed of 16 earth or nondurable materials as compared with a formed manure 17 storage structure often constructed of concrete. Confined 18 animals are limited to cattle, swine, horses, sheep, chickens, 19 turkeys, or fish. In calculating AUs a special equivalency 20 factor is assigned for each classification of confined animal. 21 For example, each butcher or breeding swine weighing more than 22 55 pounds has an equivalency factor of 0.4 AUs. For purposes 23 of calculating the permit threshold for a CAFO maintaining such 24 swine the AU capacity must equal a minimum of 2,500 (1,000 ÷ 25 0.4 = 2,500). 26 BACKGROUND —— TERMS —— PRODUCTION CONTRACTS. Code chapter 27 202 regulates the relationship between a contractor and a 28 contract producer of a commodity, including livestock, and 29 the Code chapter includes a number of defined terms (Code 30 section 202.1). A contractor is a person who enters into an 31 agreement with an agricultural producer to raise livestock on 32 property held by the agricultural producer (contract livestock 33 facility). The agricultural producer is referred to as a 34 contract producer. The contract is referred to as a production 35 -3- LSB 5403XS (3) 87 da/rj 3/ 4

S.F. 2018 contract. Livestock is limited to beef cattle, dairy cattle, 1 sheep, or swine, but does not include horses, chickens, 2 turkeys, or fish. 3 BILL’S EFFECTIVE DATE. The bill takes effect upon 4 enactment. 5 -4- LSB 5403XS (3) 87 da/rj 4/ 4